greece escapes default again. and violence continues in egypt as parties start work towards an interim government. and still to come, the cme group is the largest publicly traded exchange in the world. does it need to get that bigger? the company's terry duffy will be with us on set in a few moments. and that means jobs, lots of people, making lots and lots of things. let's get your business rolling now, everybody sing. ♪ norfolk southern what's your function? ♪ ♪ helping this big country move ahead as one ♪ ♪ norfolk southern how's that function? ♪ time to have new experiences with a familiar keyboard. to update our status without opening an app. to have all our messages in one place. to browse... and share... faster than ever. ♪ it's time to do everything better than before. the new blackberry q10. it's time. 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 wor

similar story as greece. but ultimately implementation most definitely going forward. >> for now, thanks very much for that. >>> recap of the headlines today. troika says yesterday to greece's next aid payment. strings are attached. new details suggest human error for the crash of a south korean jetliner this weekend in san francisco. at least 42 people confirmed dead as violence erupts in egypt. >>> other stories we're following. lloyds banking shares moving higher in trade. media reports looking into whether temasek may buy a major stake in lloyds banking group from the british government. sunday times reported temasek approached britain about taking a 10% stake worth $6.7 billion according to unnamed sources. reuters industry contacts say no such approach was made. temasek and lloyds have declined to comment. >>> the mexican billionaire carlos slim has set his sights on smartphone app maker shazam. he'll be investing $40 million in the british based firm. apparently slim's first investment in the uk compan

amanda zaphr is a former board member for greece at the imf. this is the omnibus bill voting in on wednesday. presumably because they want to tackle reducing jobs in the public sector, something which i understand they haven't had much success with. >> actually that is the most contentious part of the omnibus bill. it's part of a long delayed plan to reduce the size of the bloated greek public sector to target redundancies. so after three years of austerity, which saw the unemployment rate shoot up to 27%, no civil servant had been fired until the closure of the public broadcaster last month. so now as part of the agreement with the troika of creditors, greece has to place more than 4,000 civil servants on a mobility scheme, which means that if they cannot find a job elsewhere in the public sector within eight months, they will be fired. >> yeah. it's only really the start of a program. public -- we got one thing we need to slim down clearly the civil service and get a privatization program going as well. so where does this sit within the broad

we had 90% default of greece's debt through haircuts. but still 90%. >> you know we have to have haircuts. we know greece needs another default. they need more money. just can't tell anybody we're going to give it to them. let's move away from europe to egypt where things are even more serious. egypt's army denied a political road map will come into effect after its imposed deadline which expires later today. according to a reuters report, the next step is to call political, social and economic figures to talks on the country's future. the military warned there will be more bloodshed if president morsi refuses to step down in what they are calling the final hours of his rule. yousef is in cairo, been following this story. yousef, we heard from the president last night. you said earlier he soiunded agitated. what is he saying and what are the military now saying at this moment? >> reporter: well, ross, the president made it clear that his government had the legitimacy of free and fair elections and then he will continue and seek out his t

this as egypt's foreign minister resigns. >>> greece wants to get its house in order. the finance minister quits as he admits he lost public support for his austerity plan. >>> in italy, mario monti threatens to withdraw from the coalition amidst the slow pace of reforms. >>> the world's biggest pension plan in japan posted highest annual profit ever, $112 billion. this as the government pushes for a reform overall in search of higher returns. >>> and seeking a safe haven. wikileaks says edward snowden filed for asylum in more than a dozen countries as he blasts the obama administration and threatens more security leaks. >>> all right. just joined us, welcome to the global trading day here on cnbc. you can see european equities weighted to the down side, about 72 advances being outpaced by decliners on the dow jones stock 600. european equities did get a bounce back as far as u.s. futures are concerned now. dow after finishing up 65 points yesterday, here we go, is still above fair value, not by much, 25 points. the nasdaq is currently about 9 points above fair value.

as greece signs off on fresh public sector cuts to meet austerity demand, we'll hear from a german mvp of greek originalen who says the troika should apologize to the great people. he joins us at 10:30 cet. and spain looks to sell up to 3 billion euros in bonds. will investors keep their cool? we'll have the latest from madrid where stephane pedrazzi has been this week. and tokyo, where shares of softbank are higher. we'll tell you more live from the nikkei in about 30 minutes time. and morgan stanley is reporting second quarter earnings on the back of a strong quarter for u.s. banks. will the good news keep on coming? we'll discuss with u.s. bank analyst at 11:45 cet. plenty coming up on the show. feel free to get in contact with us, worldwide@cnbc.com is our e-mail address. we're looking forward to your correspondence today. ben bernanke did not rock markets as many had feared. he soothed tapering concerns saying any winddown of asset purchases depends on the economy. not a preset timeline. speaking on capitol hill, he said the central bank would be keeping policy flexible. >> indeed

and, of course, greece. there's questions how they'll get their next debt payment. all kinds of things going on here. >> and things have quieted down in brazil, but that's another extraordinary story, one you would not expect. we'll also be getting you exclusive reaction to what's happening in egypt from the prince al waleed, and we'll discuss his holdings in 20th century fox, all ahead. >> and then, something completely different, disney in with the folks today, because of lone ranger, with johnny depp, had a budget about $250 million. it opens tonight. it's getting some of the worst reviews ever. ever! this has bomb written all over it. but if it does bomb at the box office, what happens to disney stock? it is, after all, a dow component. we'll look at that. >> who told you i'm dying to see that? >> you did. >> oh, i did? >> no, i just made that up. >> yeah. let's check the markets for you, as we approach the final stretch, the holiday-shortened week. the dow is down 72 point, about .5%, 14,902. check the nasdaq. a similar chart pattern, you will notice, as we see

new questions arise in europe and problems popping up again in portugal and yes, greece. with all those factors out of america's control, how fast, how far can our economy grow? it's all ahead this hour of "power." first though to sue at the new york stock exchange. >> the markets off the best levels of the day. we have seema mody over at the nasdaq and josh lipton will join me in a second, but we want to focus on the ten-year note yield at 2.71%. that is a dramatic move in yields, and that's really bench kind of spooking the stock market off and on about this trading day. right now we're off about 90 points. josh lipton, basically stocks turning lower after a very strong opening, and then basically trying to claw their way back. it's not a bad report. >> keeping us busy today. let's quickly go through some of the leaders and laggards. hpg, axp, some of the banks, jpm back and utx, look at benchmark winners, the regional banks in the green and what's not working, miners and builders. lennar, dhi. sue, back to you. >> seema, how does it look from your vantage point? >> sig

in fact, greece had very good growth. europe in the aggregate is still not robust. you know that and i know that. so i'd like to see europe in double digit growth territory as opposed to single. but here's a nice benchmark for s.a.p. germany grew 9%. >> right. >> the most mature market we have in the world. and southern europe is starting to come back. and the middle east and north africa has huge growth potential. i think we're in a cycle in the macroeconomic environment that will right itself, and the key is as long as companies lead and innovate and drive customer value, they'll be fine. >> the takeaway i'm having is don't think there's anything structurally wrong. it is a cyclical bump and you expect next year at this time, go back to the way s.a.p. usually is. >> s.a.p. grew in double digits as a corporation, this quarter. >> the stock prices. >> yeah, of course. yes. our ambition -- here's some unlocked value. nobody knows value better than you, right? that's why i come on your show. >> thank you. >> there's three things in this stock that i think are very, ve

in fact, greece had very good growth. europe in the aggregate is still not robust. you know that and i know that. so i'd like to see europe in double digit growth territory as opposed to single. but here's a nice benchmark for s.a.p. germany grew 9%. >> right. >> the most mature market we have in the world. and southern europe is starting to come back. and the middle east and north africa has huge growth potential. i think we're in a cycle in the macroeconomic environment that will right itself, and the key is as long as companies lead and innovate and drive customer value, they'll be fine. >> the takeaway i'm having is don't think there's anything structurally wrong. it is a cyclical bump and you expect next year at this time, go back to the way s.a.p. usually is. >> s.a.p. group in double digits as a corporation. >> the stock prices. >> yeah, of course. yes. our ambition -- here's some unlocked value. nobody knows value better than you, right? that's why i come on your show. >> thank you. >> there's three things in this stock that i think are very, very undervalue

their exposure to greece is trivial. it will trade badly but it won't affect them in the long term. >> what do they want to be when they grow up? are they a retail bank, the wealth management which i think is lower return business or do they want to be an institutional house? how do you see them getting improvement in roe when it's been suspect over the years in terms of their execution? >> great question. the answer is they want to be less of a trading firm. they want to be an elite investments bank in industries like technology. they are still a leading m and a house and now with smith barney they want to be a brokerage firm to the upper middle market, not the lower end, not the super high end but they have one of the best brokerage business and that is much less capital intensive. they're going to focus on investment banking. >> you said jp is far and away the leader. what is the biggest weakness for these guys and where is the time when you start to watch something? >> it's jamie diamond's mortality, that he's not go

see the bond yields approach or exceed 8% briefly with the turmoil there, and not the mention that greece is back again. and again, these things come and go and the crisis in europe over to a larger extent and we have seen the markets down in spain sharply today. and we are revisiting them as the commodities are down. gold down. oil has been up, and it is a difficult period in which to make the long term investing decisions. >> the oil piece is interesting, because the dollar has been rallying and gotten a bid here, and yet the oil prices are climbing and not just on the bren, but the uti, and it is starting to tighten now. >> yes, tighten as a result. we are getting stuff from curbing to the east coast in terms of refining it, and don't forget, you see the pictures from egypt and that is unsettling people. you hear conversiations about te suez canal and you expect it to go on. >> it is a coupe? we don't know. the military is not specific, but the deadline is in the next couple of hours, and we will keep an eye on cairo and see if there is a large scale change in the political structure t

. >>> no protests in greece today. that's a rarity lately. police kept the streets clean as germany's finance minister rolled in to speak. >> i would like to ask all of you not to continue in this time the discussion on a new haircut. it is not in your interest. we have agreed on the program for greece, and it was difficult to get it, i tell you. >> that speech took place at a germany greek chamber of commerce meeting, and mr. schaumberg's remarks caused a ripple this morning. ty? >> let's go to the power rundown and go through this quickly with sue and bob pezani. banks, brokerages taking part in quantum dunn, a marked hack attack. how vulnerable is wall street to a cyberattack in real life? >> i think it's a real issue. we have seen attacks on exchanges already. nasdaq had one on their website just the other day. i think this is very interesting. participants will receive blasts of confusing information today. that's amazing, sue. we can send them the mlc minutes. >> that's really true, but i think in this age of hacking, we've seen so many

>> so, michelle, how will concerns about greece and europe in particular impact investing in the second half, pegs legsly whether it comes to the wealthy investor? we welcome back the global head of citi's private bank which oversees more than $270 billion in assets. good to see you again, david. >> good to see you, sue. >> how do your wealthy investors view the situation in europe? are they still concerned about it, or do they view it as an opportunity? >> well, i think that they are less concerned about it today than they were about six months ago. certainly since the statements by draghi and by the coordinated activities of the central banks around the globe, people are feeling there's more an underpinning of stability. that said, huge tail risks in europe still and you saw some of them in greece, you know, but you're not really seeing activities that would leave us fear balance for the european markets to be a contagious. >> we've heard that they are looking forward to desed assets sales in particular and that provide them a little bit of a year into your portfolio. are you seeing t

remember when we had the whole thing with the euro in greece, and a lot of people even treating gold as a fourth currency, because we don't have a chinese currency that's in the mix. i think it wears the hat for inflation, and it wears the hat just in case something goes wrong. it's that diversifier. but we don't recommend a lot. maybe around 2% or 3%. >> if you could put it -- where does this s&p break down in your opinion? what levels, if we breach, does it get a little dicey? >> as long as you're above 1650, i think the market's fine. >> i know you're negative on emerging markets. what do you need to get to 1750? to me, great earnings in the banks. we've gotten a little tired in tech. i think you at least need something out of the resource trade. i think you might need china. but i know you're very bearish in terms of at least the rest of the high growth load. >> in the near term, we're more cautious on emerging markets. longer term, we still like them. i don't hear enough people talking about energy stocks. crude oil has been rallying. we at the firm are talking about u.s. innova

greece will allow it to receive its next batch of bailout funds. they say they have fallen behind, but the growing authorities have implemented steps to put the program back on track. we talked about this last weekend. finally, proxy firm iss now recommending dell shareholders approve the company's proposed dole to take itself private. michael dell of course leading that. it's a big setback for carl icon who has been seek support for an alternative report. some advisory firms were going to come out in favor of him. >>> more violence in egypt today. at least 40 people are dead, hundreds are wounded after they say egyptian president morsi attacked people in cairo in a sit-in since last week. questions about whether they will be able to put together a coalition government. this is the most violent single occurrence since the entire outbursts started last woke. we have a live report in a few minutes chts also the investigation of asiana flight 216. phil has more on this developing story. >> and becky, it's early in the investigation. as andrew mentione

so going back to whether this is america's quote, unquote greece moment, a precedent in the case of the detroit is going to be so important, because what happens with the treatment of voter approved general obligation bonds that are supposed to go specifically towards some of these areas that then, in other words, the zen senie seniority bond markets is going to be important of the way that people treat municipal debt across the country. probably more knee-jerk selling and space, and here is what jim vogel said, look, if this means more differentiation across the muni space, and places to pick up a 5% or 7% or 9% yield in some places, what a perfect place for bank loans, and who knows more or should know more about a local market and local conditions and local fundamentals than the bank at least if this were the case 50 or 75 years ago and maybe an opportunity for them to actually improve their own earnings power by coming into this space. >> yes. >> you have done your homework. >> nicely done. >> and somebody has the do the homework and a lot of the guys can't at home, because you have

but falling well short of what we've seen in greece. more about extending maturities and trying to write down the debt. >> miles, good to see you today. thanks very much for joining us. just a reminder what's on the agenda stateside, pending home sales for june. the report also kicks off a busy data week. second quarter gdp and the policy decision out on wednesday all wrapped up by july non-farm payrolls. >>> still to come, the president is expected to nominate a successor for ben bernanke in september according to his administration. that has calls. we'll discuss the various candidates, plus lots of other things in the second hour of "worldwide exchange" right after this. e? 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're watching "worldwide exchange." here are you

we have seen what is happening in greece, which is a bit of a setback within the last month. having said that, i think the only question you have for portugal and for ireland is what is the exit strategy they have from the packages, is it going to be a fully fledged bailout on top of current bailout or more flexible type of contingency credit line that could protect them from market anxiety. that's where the debate is. we don't think there is much chance of a psi around that. we think this is all about whether they get an eccl credit line attached to it with a sort of access to ont. and that's something that we have to be debated in the coming weeks and months. not a medium term discussion, coming soon. >> jacques, we just got jeff on the ground in frankfurt today. there is tensions in portugal as the ecb meets for the monthly policy decision. it felt like the ecb had so many different policy tools discussing, but none of it was going to happen anytime soon. what is the tone going to be today and do you think there will be any progress toward some of the mechanisms? >> i thin

and better news from greece and portugal. draghi speaking at length and reiterating his commitment to low interest rates. >> following its july meeting, the council stressed the monetary policy stance is geared towards maintaining the degree of monetary accommodation warrantied by the outlook for price stability and promoting stable money market conditions. it reiterated its monetary policy stance would remain accommodating for as long as needed. >> so not surprisingly that bolster shares across europe but in green european commission officials say they have reached an agreement with authorities on the economic and financial policies the country needs to instigate to receive the next tranche of international loans. over in portugal making moves to end its political tur poil. portuguese stocks gains more than 2% on that news, carl. >> problem solved, right? not exactly. bob is back of course at work after a couple weeks off. you were missed, sir. >> it was wonderful to sit in europe and watch yields rise. i left at the lows tw

what concerns me about greece was the airports were closed down for four hours as a result of this general strike. and i read in today's daily news that foe see ya vergara was on the streets so i'm slightly concerned one of the national treasures here might not be able to get back and may be stranded on that greek island. we'll see whether they're able to chartary flight. >> i don't know if we can show that but we have pictures of the lovely sofia vergara sizzling in greece. >> i was there ten days ago. i recommend it. it is the jewel. >> doing their part to boost the economy, carl? >> sofia is there, simon was there. curious. very curious. let's get a check on energy and commodities. bertha coombs is at the nymex. >> sofia vergara has not been spotted here. but what is hot is the weather. we're seeing some mixed trade as far as the energy benchmarks. nat gas up with this heat wave gripping much of the country. we've also got gasoline higher, a little bit of resistance when it comes to brent and wti with those bad figures out of europe. if you look at what's been going on the last couple w

european shares are lower as well hurt by political unrest in portugal and uncertainty whether greece will get aid from its lenders. spain's ibeck slipping, portuguese stocks down over 6%. the port yu the port yguese stocks down. the index are lower down more than 1.5% in about every case of the major indexes. the only place you see green arrows are in the oil market. crude oil rising above $100 to high the highest in 14 months, coming as all of the political unrest in egypt seems to be boiling over. that's what is pushing the prices there. investors are going to watch for inventory numbers they get later this morning from the department of energy. along with the runup recently in crude oil prices. traders will watch a batch of jobs-related data as we get ready for the government jobs number friday. we'll hear from john challenger on the job cuts at the bottom of this hour. later it's the private payroll data and jobless claims, adp, the jobless claims, we have a half day of trading today and the markets will be closed tomorrow for the fourth of july holiday so a lot to cram in. >> co

schaeuble said he was impressed by the progress in the region, but also warned greece to stop lobbying for some of its debts to be written off. >>> and just heading a little further south than germany and looking at what the italian prime minister has been saying. mr. leta asking parliament to back the interior minister in a no confidence vote. a number of no confidence votes taking place across europe. you heard about portuguese and now out of italy that leta is asking the parliament to back the interior minister in a no confidence vote, and also repeating that police reports showing the government and the interior minister are not involved in the kazakh deportation, another story making the rounds earlier this week. >>> now, there were scenes of violence on the streets of madrid overnight as protesters calling for the resignation of prime minister mariano rajoy clashed with police. stephane is in madrid. bring us up to date with the late happenings taking place in madrid and spain. >> good morning. that's the flyer, the small flyer for the demonstration yesterday. i don't know if you

investors also keeping a close eye on greece. that country hoping to reach a deal with its lenders to free up more aid by monday. ali rend, vice president of the european commission says greece's last tranche of aid could be made in installments which would continue to keep the pressure on greece. once you're involved in one of these programs, it's quarterly, now it could be monthly you have to report back. simon really should have been here. so much happening. we've got the ecb, mark carney at the bank of england coming out with a statement and then the forward guidance. >> it always works that way. we hope to have him back next week. let's bring in josh lipton. >> we have given up a lot of green right here. you had that jobs report, you saw a beat. the upward rerevisions, but the dow is now up just 15. traders i'm talking to pointing to a few different factors. one will say the technicals. the failure of the s&p to break and hold above its 50-day moving average or short-term trend line. also rising rates. yields across the curv

it outperforming italy, france, germany, greece and others. let's go irish. not notre dame, though. it is thursday. let's have a little friend. our friends came up with a fun list to amaze your friends while you're mansioning this weekend. how many products could you buy if you sold one share of the parent company? let's go on. 68 bucks effectively for lululemon shares. could pick you up one yoga mat. that only about two thirds of one day pass. so you couldn't get in the park. drive through taco bell. sell a share of yum brands. you could snag 31 seven-layer burritos. yum. one share of berkshire will boy you 31,974 dairy queen blizzards. dq is owned by berkshire hathaway. "street signs" starts right now. >> welcome to the the "closing bell." this market has been ultimating to begins and losses. looking at double-digit decline. >> where did my notes go? we are down. all of a sudden this mark set feeling tired. we hit all-time highs again on tuesday and sense then, we've been struggling. even though earnings have been pretty descent today. the highlight is facebook by far. >> oh, wow.

the top gainer over the last year is, in fact, greece, with a gain of 48%. then ireland, then spain with gains of about 30%. in addition to that, of course, the euro was able to move substantially higher, and we have now an 8% move for that year against the dollar. in the meantime, guys, as far as the next couple trading weeks are concerned, i can tell that you angela merkel has gone on holiday despite the fact she's got an election in september which kind of indicates that everything is going to be okay for now. >> or it won't if you know murphy's law. simon hobbs, thank you very much, sir. both sides of the atlantic by the way are keeping an eye on the trial of fab tourre. the testimony he's given is just finished in the case against him. mary thompson has the latest. >> of course, tourre stepping down after what was essentially 2 1/2 days on the witness stand. the s.e.c. alleging that mr. tourre deliberately withheld information to investors about john paulson, the hedge fund titan's role in a synthetic cbo called abacus which netted paulson a billion dol

that was the quarterer that greece threatened to leave the eurozone. it was the easiest comp in the world. that's why these numbers look good. >> people are going to think you're a huge bull on financials. that is not the case? >> goldman itself is up 60%. a lot of these banks are getting 50% above. >> they're growing like crazy. >> five year cds on the big banks, the xlf is through the highs but the five years on the big banks is wider than it was on may 22nd when this rally started. >> the cost of insuring is higher -- >> big guys are buying -- i think portugal, risk in spain -- >> negative on financials? >> for the next month definitely. >> you would tell clients what is this. >> to sell the financials right here. be careful of the financials the next 30 days. >> larry, good to see you. thank you. still ahead how will the pain at the pump affect the back to school shopping season? a little later on the look at the biggest movers and shakers. we're keeping on our eyes on yahoo!. marissa meyer is speaking out. we'll bring you the latest headlines as t

i just came back from greece last night, and i'm seeing white appliances everywhere over there. i mean, a little bit different. but i think that that could be a trend that sticks around here, definitely like you said, looking more like an apple store, you know? so we'll see how that pans out. >> yeah, until you clean it -- [ overlapping speakers ] -- right? >> -- off to the side or on the wall, why are people putting flat panels on fireplaces? isn't that going to damage the tv? >> you know what? no, everyone thinks that. as soon as they see a flat panel, a place that, an lcd above the fireplace, they're worried the heat will get to it. if a fireplace is designed right, it should not be melting anything above your fireplace, right? so that's just -- that's just, you know -- it's not true. the bottom line is when a fire -- when a fireplace has a tv above it, we see it all of the time, that the ladies love the fact that there's no wires, there's no mess, there's no clutter, and it frees up a lot of real estate in your living area. you know, your living room. the guys love it, becau

and this is the same thing true in greece, italy and spain. the private companies are doing okay. it's the governments that are collapsing. >> they should make detroit into an speaker prize zone. thanks, gentlemen. another record high close for the dow. but watch out, folks. after the bell, we had earnings news that could challenge the entire rally. and i myself, i think this market is getting pretty pricey. later on the show, president obama makes a big push for obamacare. and the white house reunites some of its re-election team for an all-out campaign for the new health care law. but how can you sell a lemon that nobody really wants to buy. don't forget, folk, free market capitalism is the best path to prosperity. it ain't obamacare and it ain't detroit. we're searching for a free market model tonight. e-mail me or tweet me if you can. i need help. i'm larry kudlow. we'll be right back. vo: traveling you definitely end up meeting a lot more people but a friend under water is something completely different. i met a turtle friend today so, you don't get that very often. it seemed

traders down here also watching the headlines overseas, egypt, greece and now portugal where a foreign minister has resigned. the finance minister resigned yesterday. jpmorgan just out with a note saying this significantly escalates their near-term concerns, and the blue chips, which had been up 74, now up just about 20. as for some specific movers today, let's get to the dow, the biggest gainer is jpmorgan, raymond james, they are fans and rate this one a strong buy. their price target is 64 bucks. apple is also working back-to-back gains. apple saying it filed a trademark application for an iwatch in japan, and finally ford, gm and toyota report june sales all besting estimates. guys, back to you. >> thanks very much, josh. let's bring in kenny polcari as well as michael fax president of farr, miller & washington and cnbc contributor as well. michael, i'll start with you. we've had a very volatile past few weeks mostly due to the fed, so how are you investing? >> sue, i'm feeling a little bit smug, if you will, which is always dangerous, you know. only two types of people in our busi

a flight-to-safety move, especially with the events going on in places like egypt and portugal and greece. but i think there's a bigger story here behind the scenes. really since mid-2011, we've started seeing the trade-weighted dollar, the broad u.s. dollar, if you will, starting to rise. after falling for about a decade. so like the interest rate trend, i think we're seeing a major multiyear shift in the dollar trend, and that's definitely going to influence how we think about a lot of markets, whether it's commodities. this will be a headwind for commodities in terms of the u.s. stock market. i think that you're going to have to think a little differently about which stocks will benefit from a strong dollar environment. it's going to be a little bit different than what we've had over the last ten years or so. >> mike, this story in egypt is a long-term story, obviously. and we may very well see moves -- a statement from the government, a statement from morsy's side, imminently. how does that impact investing? >> i think honestly it's just an incremental extra excuse to take risks down

factory orders and traders certainly telling me focused on those headlines overseas, egypt as well as greece and portugal so you look at the blue chips. you had been up 74 and now you are down 18. a couple individual movers, i would just highlight for you. one would be jpmorgan, raymond james and they are going to rate this one a strong buy, talking about a more favorable outlook for eps growth. near price target is 64 bucks on that one and apple continues to work, back-to-back gains. apple saying it filed a trademark application for an iwatch in japan. guys, back to you. >> thank you very much for that, josh lipton, back out to sharon epperson at the nymex. what's the expectation we're seeing on crude right now? >> you can see it right now, mandy, as we're making that march towards $100 per barrel and looking at the contract at the highest levels of the session for the year right now and keep in mind a lot of oil traders are very concerned about what they are seeing from the pictures in tahrir square and the protests going on right now in egypt. there's a great deal of concern about what wi

they will help portugal, spain, gros greece. that's happening. pending home sales, nahb confidence, 52, an 8-year high now. so confidence is coming back there. >> you pointed to the ism, though, as one of those things. yesterday's ism jobs component was weak. i guess question becomes, when does jobs follow? you would think with housing picking up, housing whob there. why haven't they come back? >> corporations need to see the goal line an playing field level. no moving of the lines. to me, the comfort's board sent a 58-point letter to president obama of things that need to be done and just don't keep moving things around. itself the part of the damper and the ceiling on hiring. 175,000 jobs, becky is nothing. 1983, two years into the reagan restructuring, 1983, september of 1983, we added 1.1 million jobs in one month. 17 million jobs from '83 to '90 seven years. we are -- the minute we get some sort of clarity, regulatory. >> but jobs is both a leading and a lagging indicator. if you don't get the jobs, the virtuous cycle can't continue if you d

it follows a conference call when greece fulfilled the requirement. a preliminary investigation shows that southwest jet that landed at la guardia nose first time. it actually did happen. it broke the nose wheel. that's where they come in like birds almost. it resulted in a hard landing and ntsb investigators are still trying to determine if pilot error was determined. they land back and slowly you can feel it come down. >> yep. it didn't happen this time around. >> our next guest is making the case for small caps. he says based on his research, the timing couldn't be better, dan barrow is with palisade capital management. he joins us with more. dan, you have interesting statistics i didn't realize, you say the number of companies currently listed 4, 916. there were more than twice that in 1983. what happened? >> you had this continuing shrinking of the equity markets. the title of my essay to the shrinking market. this has been an ongoing phenomenon. a great cocktail party chatter is to ask somebody how many stocks are in the wilshire 500 index. it's

. >> on portugal, greece, you have unemployment rising to 26.9%. that is a record at a time when municipal workers are still in the streets of greece protesting in advance of next week's key votes. i come back to portugal, a bigger loss down there on the bottom left tlt moment. let's talk about the scale of the rally and wa is going on today. it is the miners that have led today under owned. a lot of those big miners that a lot of people were shorting have made gains during the session. and those appreciatus metals, much smaller generally. day two of less as you can see. let's talk about portugal and the reason why we're down there. the risk in portugal is rising. the president of portugal, rather than staying to the center right, yes, you can keep your coalition together is suggesting there can be some order of deal across the political spectrum for austerity so that they can exit their bailout next year and have a general election. that is seen as really stirring the pot, if you like, and you can see that these big banks in portugal are lower as

. >>> greece is expecting to receive the next batch of bailout cash. there is a monday meeting to decide whether greece shut get that money. >>> samsung reporting record quarterly profit of $8.3 billion up 47% from a year ago. this is becoming apple like. increase was driven by strong sales of smartphones including the new galaxy s4. shares did tumble overseas falling sort of analysts estimates. let's get a check of crude higher this morning that a state of emergency has been declared. you can see crude up marginally. 101.74. joe? >> we'll get to our trading block now for more on volatility in gold and currency joining us now, tom is a partner and we'll see if we'll be joined by other guests in a seconds. let me start with you, tom. we had dennis saying he's going long of gold the way he likes to say it but in japanese yen terms. does that make sense to you? >> well, i think if you're trading the yen, you should trade the yen versus the dollar. i understand what he's saying but if you follow what the yen started to do in november, gold has followed it.

. >> it won't be greece. it looks like it might actually be portugal. >> not only do people worry about spain after portugal and maybe italy. portugal to me looks like it's a part of spain. i don't know how they got a company in there. right there, isn't that spain? >> it's right there. on the western side of spain. you know what, if you stick to the port gear, are you a part of spain. you will start a war. >> you know whose idea it was? the people that spoke portugese instead of spanish. they decide, hey, we don't speak your language. >> the peninsula should have been one thing. >> i think. >> you know, they can run their -- >> it's a part of australia. let's just change the world map. >> they can run their affairs. >> new zealand was supposed to -- >> sorry kiwis. i love you all. >> senator elizabeth warren will join us in less than 330 minutes. the former wells fargo chairman and ceo joins us now. i don't know, dick. you know, what i looked up for this and we're going to talk to our -- i looked up how many

the sdp leader says he wouldn't support further aid for greece. on the corporate side, facebook shares closed shy of its ipo price of $38 a share. the stock is now rallied more than 40% since reporting earnings last week, which helped silence some of the critics of the network. what do you think of the value of facebook? is it too expensive? time to get on board? join the conversation on "worldwide exchange," get in touch with us, e-mail, worldwide@cnbc.com, tweet @cnbcwex, or direct to me, @rosswestgate. the stock is back to near just about where it floated. seems a while it is taking to do that, of course. >>> a little bit of news out from the fca, four arrested in an fca insider dealing investigation. the fca says at rests are not linked to any other ongoing insider deal. >>> still to come, markets are something of a holding pattern. what might investors expect from the fed? we'll preview it, the second hour of "worldwide exchange" continues right after this. [ male announcer ] i've seen incredible things. otherworldly things. but there are som

greece's euro bank chosen to buy troubled lender new hellenic. they have been chosing to buy another bank as they try to secure its next round of aid. >>> and predicting more sunny weather for the british economy. the latest projections suggest a strong housing market and consumer spending to keep the economy afloat until a rise in exports and business investment kicks in. the club believes britain's gdp is on track to reach 2.6% in 2015. peter spencer, economics adviser says a rise in business confidence will fuel growth. >> what's really giving this recovery its legs is the fact that with the euro crisis hopefully behind us, business confidence is returning. companies are have been spending very low amounts, a lot of investment has been on a care and maintenance basis. now they're in a position to actually spend some of that cash. >> and prices have reached a record high in july according to on online state agency right move. the average price is over 253,000 pounds, a 3% rise from june. the website forecasts home prices could grow as much as 4

. >>> greece is going to lift short selling ban on bank stocks before the end of july. this is according to a source at reuters are quoting. the capital market commissions board convenes on thursday. and we'll discuss lifting the restriction. the ban applied during the recapitalization for countries major banks completed last month. this all comes as labor unions in the country are set to stage a 24-hour strike next week in protest over public sector cuts and other major measures laid out by athens to meet the bailout targets. those demonstrations could coincide with a parliamentary vote on job reductions that might affect teachers, police and other civil servants. polls still indicate the government will stave off a serious challenge. according to reuters again, 65% of respondents in a public issue survey said they did not want early elections. similar discussion going on in portugal. the president rejecting calls to hold snap elections. he says it could force lisbon to request further aid. in an address, he appealed to all political parties to reach an agreement to ho

. >>> elsewhere, in european commission ollie rin has struck down reports saying greece could be facing a 10 billion euro financing gap. spokesman talked to twitter to say the bailout program was fully funded for the next 12 months. he also said any subsequent gap in the funding for athens will be addressed in due course, based on facts, not speculation. >>> are we going to go for break? still to come, an expanding range of services for investors to manage portfolios online. how do you find a product to match your goals? our next guest thinks he's cracked the problem with nutmeg.com. stay tuned to find out more. >>> also coming up later, john paulson head funds manager is due to speak. we'll find out how his bet on gold stocks is playing out. >>> welcome to "worldwide exchange." i'm karen cho. these are your headlines from around the world. when ben bernanke speaks, global markets listen. european stocks are now mostly in the red, despite policy moves in asia and for u.s. futures. as investors await the fed chairman's testimony today on ma monetary policy. novartis says it is not part o

the number of positive runs but i want to say because we've been mentioning egypt and portugal and greece which is another flare-up point in terms of the debt crisis as well. throw in some weak overnight data we got overnight from china. i'm noticing that gold is starting to get a bit of a respite. it fell by 23% over the past quarter, the worst quarterly performance on record, and i'm starting to hear people say maybe all these geopolitical issues around the place, maybe not necessarily going to say the worst is over for gold, but at least give it a temporary floor, and i'd be really interested to see whether or not some of your guests feel that that is the case as well, also considering that the big jobs number on friday could change everything, and if it's a really good number and people start talking about tapering, that would probably be bad for gold as well. >> yeah. tim courtney, what about that? would you want to put money into gold right now as a hedge? what do you think? >> no, no. we've looked at gold for a while, and gold is probably a great -- a great inflation hedge over abo

it's not like a run on greece where we think there's going to be a failure in the united states. this is a confidence-driven rate increase. this is less a rate increase to me, steve, than it is an attitude adjustment that's going on. confidence is running through all the financial markets. 3-point increase in the multiple in stocks. gold -- the gold armageddon premium's coming out, and now the bond yields are readjusting because the world's not going to end. and to me, confidence has gone so far, it's even running through the federal reserve. >> we've got to leave it there, jim. thanks for joining us. jim and scott. enjoy your crumbling -- >> yeah, i wish i hadn't loaded up on gold and blackberry a year ago. i just put all my money in. >> while you were on vacation? >> no. >> a year ago. >> but i was thinking listening to that -- and thanks to those guys. >> we're going to have scott back, right? >> see, with you, you separate out qe and rate hikes. see, with me, i don't separate it. the reason i don't is because it's like when the fed just, like, has a little bit of a movement t

greece has got their money. we'll have to see how they meet the conditions. that did help greek, lower today. spanish yields, a little higher, yielding 4.73%. but they have got their money and portuguese government is holding firm as well at the moment. currency markets today fairly steady, posting nonfarm payrolls. eyes on sterling. we had for the first time today weaker than expected data out of the uk. first time in a while coming in slightly less than we thought. that's where we stand in europe. >> do you want to spend your poor bankers to prison if they take too much risk? >> how do you measure reckless? >> i don't know. >> what is the difference between reckless and incompetent? >> i don't know. >> what is the answer? what is going to happen, ross? >> i don't think it is going to get into law because of that particular issue. >> doesn't anyone ever think about these things before they start -- you're so -- you fly off half cocked over there in that country sometimes. i watch the way -- >> they like to float -- no, politicians like to float ideas, right,

meantime, european markets have actually come off their lows with the exception of greece which is down over 2%. there will be a general strike of tuesday of next week as the parliament attempts to vote on the thousands of extra job cuts there. let me just show you a live -- some live data from italy on the bond market. today italy managed to sell 9.5 million euros, albeit at elevated levels of paper, despite the downgrade from s&p last night and the five-star movement did so well in the last election, suggesting there should be fresh elections because of the downturn there. if you take one thing away from what i'm telling you, it would be this chart that i now want to show you which is the climb back as we wait for ben bernanke this afternoon. the climbback that you've had in europe since may the 22nd, and bernanke first talking aggressively about tapering has been far less on european markets than it has been here in the united states, so the underperformance companies. one more, guys, before i hand it back to you. let me show you shares of burberry. people have been selling into burb

places like spain, italy, greece, just not enough spending power. you got unemployment at 25%. people are not going out. they don't have the money in their pockets. now that is getting a smaller and smaller part. if i look at germany, we're growing double digit. our reserve brands, the high end of our portfolio in western europe grew 11%. even in the tough times. so it is a mixed picture. i expect our performance to improve over the years. things have stabilized. and we are driving the pockets of growth more strongly and playing to our strength. >> you say that the southern europe is becoming a smaller part of your portfolio, is that because you're pulling out of the markets or because the sales have dropped off so sharply? >> a combination of that and the growth in the rest of the world. if you went back many years, southern europe would have been 10% of our company. it is now 3%. >> wow. >> happenfulily say that. it is a good thing. as you look at the mix of our business, in terms of we are getting 42% of the emerging markets of our sales, north america is about a third. that

. >> a couple more definitely more references to greece and cyprus in the past couple weeks than we've had through most of the spring. >> and not just because of beach vacations. >> no. let's bring in josh lipton and see what else is moving as we continue to hover above the 50-day moving average. >> new week, new core, and we're kicking it off well in the green. positive data from overseas, china inner bank rates continue to moderate in europe and pmi clocking better than reports and ism manufacturing better than expected and sub components were mixed as i know you have been talking about. still, blue chips up 154. the s&p, what's working today, the materials sector, a sector that faced challenges given the collapse in commodities. today it is the best performer. sealed air is the biggest gainer. and also health care stocks, sectors up 20% and unh and ci hitting new all time highs and we'll end on the financials dominating that list today of new multi-year highs, wells fargo, capital one, m&t and keycorp some of the names. >> key up 3%. thanks for that. just as we are talking about low

but yeah, facism i think has had its day and i don't think that's except in places like greece, that's not really a significant force and i hope it remains that way. >> last word, zach. >> europe is going test this presumption. if you have a shrinking population with sufficient affluence, why should you have growth, right? and the whole model that we live in, the whole political model, the whole economic is predicated on growth is normative, growth is good. europe has huge issues and we've talked about all of them. but it's a stable, affluent society by any spectrum of human existence over history. so what exactly should the model be going forward. >> does europe want to be a giant behemoth? i think it has more ambition than that. >> very nice place to visit, one of the world's greatest. >>> thank you, all. lots more ahead on "gps." would you be okay if your kids had to double their way to play a sport that would then destroy their brains? malcolm gladwell says we're doing that to other people's kids by supporting college football. >>> but up next, what in the world. a world leader who

and greece did agree to deep government cuts. the first round of cuts was watered down after violent protests across the country. no sign of that happening with this round however. egypt meanwhile trying to rebuild its government, get its economy back on track, but the killing has not stopped in the capital. according to government-run media, the latest skirmishes between police and supporters of the deposed president mohamed morsi have left at least seven people dead, more than 260 injured. morsi supporters fighting mad about his removal of course in the military coup that swept the country's first democratically elected leader out of power two weeks ago. our reza sayah is in cairo. reza, obviously the fears is is that this will continue to grow. but i guess when the protesters block off a major artery in a place like cairo, the authorities aren't going to standby. >> reporter: no, they're not. but they have to play a delicate balance here. if they get too aggressive with the muslim brotherhood, things could go downhill. but the

but yeah, facism i think has had its day and i don't think that's except in places like greece, that's not really a significant force and i hope it remain that say way. >> last word, zach. >> europe is going test this presumption. if you have a shrinking population with sufficient affluence, why should you have growth, right? and the whole model that we live in, the whole political model, the whole economic is pred dated on growth is normative, growth is good. europe has huge issues and we've talked about all of them. but it's a stable, affluent society by any spectrum of hum existence over history. so what exactly should the model be going forward. >> does europe want to be a giant venith? i think it has more ambition than that. >> very nice place to visit, one of the world's greatest. >>> thank you, all. lots more ahead on "gps." would you be okay if your kids had to double their way to play a sport that would then destroy their brains? malcolm gladwell says we're doing that to other people's kids by supporting college football. >>> but up next, what in the world. a world leader that