i'm christine tan. in asia, samsung electrics shoots up more than 45% after issuing a strong earnings forecast for the second quarter. >> i'm ross westgate. here in europe, stock markets start the week in the red with banks and energy firms the biggest losers. and i'm scott wapner in the u.s. general motors emerges from court as the company plans to sell its assets. hello and welcome to cnbc's "worldwide exchange." a special hello to our u.s. viewers. i hope you enjoyed a long weekend for the july 4th holiday, as well. the american markets will be

back today. friday, just a reminder, it was a pretty tepid session, really. today the ftse cnbc global 300 is down 32 points. european stock markets are now an hour into the trading day and we have losses of .2% for the ftse 100. xetra dax off 1.7%. cac 40 approximately the same. oil stocks are weaker. on the currency markets, the dollar has been trying to hold its ground against a number of currencies today. risk appetite in equities generally means the yen is stronger across the board and the dollar is firmer, as well. so euro/dollar below the 1.40 mark. sterling is getting back down to 1.6129. euro and firmer against the pound. christine, nice to see you.

>> ties to see you, too, ross. ininvestors are still reeling from the weak payroll numbers we saw last week. in japan, the nikkei 225 ending down .4%. the kospi managing to climb .6%. shanghai composite up 1.18% due to another ipo coming on the market in shanghai. lackluster trading is in focus. the australian market is down 1.2%. crude oil is falling in line with the overall resource link sector, down $2.60. $64.13 a barrel and brent is falling, as well, $1.61. $63.99 a barrel. good to see you, too, scott. how are the u.s. futures looking? >> good to see you, christine. the president is over in russia today. the ism record is out.

there will be a lot of attention on the data to see how u.s. markets rebound after thursday's fairly dismal session. you'll see here, we're significantly below fair value across the board. in fact, the dow futures are down about 70 or so right now and nasdaq about 9 and s&p is almost the same amount. it will be curious to see what happens today after samsung's guidance there. take a look at the bund yield, as well today. certainly in the u.s., here is the bund yield, 3731%. treasuries will be in focus today as they usually are on the back of the ism report. the ten-year at 3.50%. take a look at gold here. certainly inflation concerns. you've got the risk appetite to talk about and, you know, gold down just a bit today, down about 6 bucks an ounce, $9.25. joining us now is alyssa bear

and ian viaddi at the new star institutional managers. it's good to have you both with us this morning. alyssa, let me start with you this morning. we look ahead to the ism report. it's an interesting and important report because it's going to account for about 90% of the economy in terms of the ism and the services report. what are your expectations for that report to tell us? >> that is a pretty big report. the answer is, i think all reports coming out at the moment are important and i think you want some direction. but i would say generally at the moment, the figure is coming back in every country, u.s., unfortunately, are not going to be good and that's what's pulling the market. in our own market in the uk, clearly this pile of debt is going up. alistair dollar's figures are more and more wrong and that's pulling on the market and i think that's going through the next month or so. what are the government going to

say about it? so the u.s. data, everybody is looking closely at it but i'm afraid nobody is looking for good signs at the moment and that will pull the market back for the next month or so. >> ian, it's difficult for the market, even with data coming out to really do much in the face of rising unemployment. those jobless numbers last week were obviously concerning to the markets and caused a big sell-off here on thursday. >> yeah, that's right. job creation certainly needs to pick up as the economy picks up, which proebls looks a long way off at the moment. actual rising in layoffs doesn't look that bad and i think it's normal for the market to be worried about rising unemployment. it's a perfectly normal reaction as the economy has gone through the shock that it has. so i think if you look at the more forward looking indicators, they're all actually pretty positive. so i can't get too concerned at the moment. the market needs an excuse to sell off and it's taking this. but it all looks fairly predi

predictable from a cycle point of view at the moment. >> hey, ian. this is christine here. anything from the g-8 summit later on this week that could somehow brighten the prospects for a global recovery scenario? >> i'm not sure that g-8 can do that much. they did a fantastic job the last time showing that there were measures that governments could take and authorities did take. china is obviously making noises about currencies and doesn't seem to know what it wants other than a strong dollar and another reserve currency which looks mutually exclusive to me. and in the major countries themselves, i think the uk and the u.s. are doing a good job. yesterday, their fiscal deficits look a bit scary, but they've got money supply up through quantitative easing, through purchasing of assets. asia has got money supply increasing strongly, all of which we need, actually. if we want this recovery to

broaden out, we need money supply to be stronger. so really, this looks like the ecb is the only one struggling to get its money supply moving to be strong enough. so maybe we could look for some sort of move on that. i would be very surprised because the ecb got its independence very strongly. we should be looking to that for good news on the ecb. >> alyssa, what do you think? do you think like ian, we should not be looking tow summit for anything at all? >> i think they've done a tremendous amount. we've done a bit of quantitative easing and there's still more to go. you need a lot of things, certainly, on the employment side. the government and people are looking for more ways of laying people off or perhaps people doing short-term working. all of that, i think, is good, but it doesn't really increase confidence. i think this is a time factor and it's going to take time. i'm not sure there's a lot of things the g-8 can do but the

worst things people can do is give too much false hope. i think what you have to have is measured responses, which i think they're looking at. so all these figures are important, but i think g-8 -- the problem is, sometimes it's too much rhetoric and they can't follow through. that's certainly true of our government and nothing much for us is going to happen until the general election so we have quite a long time to wait. >> and you mentioned the companies come with a plan to stop laying people off. it brings into focus the story that we're going to see and the earnings season is about to start without -- in the u.s. how are investors going to react to the earnings, do you think? >> anything that's positive i think will be good, but i think you will see more cost-saving measures. we've got something innovative from the cbi. you give people a bit more redundantsy pay. probably the government hasn't got much room to maneuver. >> do you think companies will

have done better on the bottom line than -- i think it's on a company by company basis. you can't look at sectors. you have to look at individual stocks and certain companies i think are weathering this the very well. others, clearly are not. or if you get it wrong, it's very interesting. you can't say every company is doing well. it is on a company by company basis. >> ian, on that note when it comes to earnings, what are you expecting in the third quarter? >> it's going to be very interesting, isn't it? i fully agree with those comments there. it's going to be a company by company basis. some companies can come out very strong if they've got some sort of pricing power and/or they're focusing on cutting costs aggressively. you can see very good earnings coming out when the rest of the market is struggling. also, if we start to get an upturn, those companies that have cut costs aggressively in the downturn will see a very sharp increase in their earnings

figures. >> the thing is, we're in a period of uncertainty perhaps over the summer in that environment. where are you putting investors' money? >> it usually is difficult. liquidity can dry up. there could be bargains. i suppose on balance, they'll be looking to buy those stories in asia and emerging markets. the story is not the more flaky eastern european markets. but things like in asia, china, hong kong, indonesia, looking to buy those on dips throughout the summer. >> and what we're still seeing is money coming in. that's the big thing. the money is coming in. they're still taking money off deposits. so the answer is, we've got to keep looking, you know, really on a case-by-case basis where to put that money. >> thank you very much, elissa bayer and ian beattie. the bank of england this week is expected to announce

another $40 billion boost to tack trillion recession. it's widely thought it will increase the quantitative easing another asset to the equivalent of $240 billion which is the upper limit set by the treasury. palzmakers are widely forecast to leave rates on hold on thursday. elsewhere, the french banking major socgen expects its income to be slightly positive on august the 5th. its banking income will be hit by ads 1.8 billion charge from debt instruments. the cost of risks will reach levels around those seen in the first quarter of this year. nomura looks like it's moving its headquarters from canary wharf and is expected to

boost thoughts about the european real estate market. nomura took over the lehman operations in london and, therefore, at the moment, are working out a deal at the lehman headquarters. but it looks like they will be the ones moving back. to spot and wimbledon wraps up the weekend with a marathon men's final. roger federer beat andy roddick to become arguably the greatest player of all time. he clenched his sixth crown with 16 majors to his name. federer beat pete sampras in the all-time grand slam standings. it was a match, christine, i thought would never end. >> you like my husband, both of you watched the game and kept me awake, up all night.

all right. india's sensex, is tanking as investors expressed their disappointment in a budget that lacked investment driven reforms. the indian's prime minister unveiled measures to speed infrastructure development and increase spending for the rurupor. that's expected to send the 2009 deficit to 6% of gdp. total spend sg expected to rise 36% to around $213 billion. fukuji plans to return the country to a growth rate of 9% as soon as. taking a look at india's sensex right now, it was tanking. continuedan rupee, however, is rising. south korea's samsung electronics, up 5.5%. they forecast second quarter earnings well above estimates

for all key businesses. samsung said in the filing for the current exchange, it expected to post a consolidated operating profit between 1.74 billion to $2.05 billion. that is a huge jumped compared to what was earned in the previous quarter. samsung's second quarter profits are due on 24th of july. rio tinto is selling its american food packaging assets for $1.2 billion. the miner will receive $1 billion in cash while the remainder will take its form in the share of u.s. stocks in the firm. in sydney, rio shares were down more than 2%. rio shares in london are down 2.5% and bemis is trading up 0.5%.

scott. christina, a judge has approved general motors's plans to sell the pluck of its assets clearing the way for the automaker to preserve its emergence from bankruptcy. some bondholders and consumer groups objected to the sale during court hearings last week. it's unclear if they'll appeal that judge's decision. reports say they could committee the sale by tuesday. president obama is scheduled to land in moscow in the next hour. the president will meet with russian president dimitry medvedev he. they're expected to hold a conference at 10:50 new york time. the u.s. news agency reporting that the u.s. and russia have agreed on a new arms control deal.

the current agreement expires in december. president obama's individual coincides with an announcement today to invest $1 billion in russia over the next three years with pepsico. and vice president joe biden says the obama administration, quote, misread the economy when the economic stimulus package was put together earlier this year. the white house had initially expected u.s. unemployment to peak at 8%. it rose to 9.5% in june, the highest level in nearly 26 years. but in an interview on abc's "this week," biden says it still too early to say whether a second stimulus package is needed. >> we have to properly, adequately, transparently, and effectively spend out the $78 on -- >> that's your job. you're in charge of that money. >> that's my job. and i think we're doing it well. if you notice, george, there are other predictions. this was going to be wasteful on all these terrible projects, we're going to be out there and

wasting mope. well, that dog hasn't barked yet. and biden says billions of dollars in projects in the current stimulus bill won't begin to come online until september. you can get more news, videos and blogs on today's market-moving news at cnbc.com. scott, yesterday i guess wimbledon probably turned into lunch and tea at wimbledon with that game going on? >> i think what we learned last year is it's breakfast, lunch and dinner at wimbledon and today was an early appetizer for dinner. >> yeah. well, it's always worth watching. still to come on today's program. indian stocks retreat after the government moves on growth. can the country meet its target for growth? plus, president obama is touching down in moscow in the next hour.

can he succeed in pressing the reset button on relations between the two countries?

all right. let us bring us up to speed with what's happening in the global equity markets. we're going to start off with becky in london. >> thanks, ross. the ftse cnbc is moving lower in line with the rest of the region. we are fairly steady around these levels. a few corporate levels, jjb, it sounds like the ftse 100, but it's interesting because this is a sports wear retailer here in the uk. they are very much at the mercy of consumer sentiment. they have seen times tough recently as people have been spending less and they came out this morning and said they are planning to have some disposals of noncore assets, so basically trying to raise capital and renegotiating their debt. the stock is moving lower on the back of that news, down 15%, in fact. rio tinto is one of the big global miners here listed in the uk. that company announced over the weekend that they are selling

off their food packaging business for $1.2 billion. they are raising capital, as well, as they try to get more of their debt under control. overall, we are seeing basic resource stocks generally trading lower. we also see declines for the likes of eurasian, natural resources and xstrata. here in the uk overall the markets are looking negative here today. now out to silvia wadhwa for more on the german situation. >> well, rebecca, it doesn't look like exactly roses. we hit the ropes from the word "go." it's a continuation of what we had last week when the u.s. markets were missing and we were taking money off the table. no drama there. the banking story is the interesting one. we had the finance minister coming out and firing a warning shot across the bows of the banking industry saying you either pass on the liquidity to the real economy or else we

might look for other measures. and the recent set of data we got out of the ecb ties into that. we had record deposits at the ecb's deposit facility with 315 billion euros per the end of the laugh week. the ecb bumped 432 billion euros and 315 of that were parked at the ecb. that's not the idea of the liquidity injections. we'll have to worry about the ecb and the government doing something else about it besides side stepping the banking system. chloe, what's up in asia? >> great to see you, sylvia. thank you very much. we had a mixed start to the week for many of the asian markets. not much guidance coming from the united states and a lot of investors looking toward the u.s. trading week and the earnings numbers to get some guidance. in north asia, the nikkei pulling back 1.4%. a lot of the exporter stocks getting hit by the strength of

the yen we saw today and also shipping stocks dragging that market lower. of course, we had the battlic dry index pulling back 4%. we had weakness some of the retails. south korea getting plenty of support from samsung electronics as it offered the guidance that it would be in the range of about $2 billion. samsung electronics is the biggest market cap on the board. in the greater china region, the hang seng pulling back below that 18,000 level. we had a lot of the key blue chip stocks swb on the other hand, plenty of strength coming from the newcomers. ipos is the buzz word in the greater china region. take a look at the shanghai composite ending the day at 1.1% higher. mutual funds coming on board, so there's plenty of optimism in china. it seems to be all about china been we send it over to scott.

i hope you had a great fourth of july weekend. >> i did. thanks, chloe. investors may shift their data this week to earnings. alcoa posts numbers after the closing bell on wednesday. the economic calendar is lighter this week with key reports out thursday and friday on jobless claims, import prices at the trade deficit. today, the ism manufacturing services index is out at 10:00 a.m. new york time with analysts looking for a reading of 46 in june versus 44 in may. just to note, less than 50 signals contraction, so the services sector does continue, christine, to contract. >> scott, coming up on "worldwide exchange," india targeting 9% economic growth. we'll look at whether the country has seen the worst of the financial crisis. >> plus, the bank of england is expected to be down 25 pounds boost for the economy this week. will it be enough to stimulate

lending and growth?

i'm christine tan. in india, investors show their disappointment with a budget that will push the fiscal deficit much higher than expected. i'm ross westgate in europe. stock markets start a rough road, banks and energy firms are

the biggest losers. and i'm scott wapner in the u.s. a judge approves general motors' plan to sell its assets. >> hem low. you're watching cnbc's "worldwide exchange." global equities are a little shocky at the moment. the ftse cnbc global 300 currently down 34 points. european stock markets an hour and a half into the trading week and resources, oil and gas, autos, banks and insurance, those are the sectors that are dragging us down. the ftse 1100 is off 1%. xetra dax off 1.5%. .4% for the cac 40 and off .7% on the smi. on the currency markets, the dollar is up against everything else. dollar/yen, 95.25. euro/dollar, back to the low 1.39. sterling has come back to 1.61

and euro is a little firmer against the pound. up to .8638. ross, a lot of investors are looking ahead to the g-8 meeting and what it will say about the global recovery. in terms of markets, a mixed picture in terms of asia. nikkei 225 down 1.4%. kospi up 0.6%. get ago nice spike in from samsung said about its earnings. the shanghai composite up 1.2%, managing to close higher despite another ipo coming on line. the bombay sensex is down 4.7%. a lot of disappointment about the budget. this particular market is getting hammered as a result. so far, it's a mixed picture here in asia, scott. >> christine, let's take a look at how the u.s. is shaping up, obviously, several hours before we open here. but it's going to be another fairly busy day. we have the ism services report. futures have been below fair value. at last check.

let's take a look and see where we're heading now. you have obama touching down for his reeths in rush dsia, as wel. futures are negative, the nasdaq below fair value, as you can see here, by about 13 points. i was looking for some sort of reaction perhaps to the upside on the back of a pretty good outlook from samsung. we'll have to see if there's a follow through in the market today and s&p 500 is below fair value by about 7.5 points there. so it looks like at least the indication right now is a fairy choppy down open picking off of thursday's fairly sizable slide. let's talk about the global economy with david page who is joining us from investec. david, we mentioned how the ism is out today. the services, as i mentioned, account for 90%.

important also because we continue to look for any signs of improvement in the economy, right? >> yeah. no, exactly, we saw the ism manufacturing services with a long track record and has performed quite well on the rise last week. the services sector is the predominant sector in the states. you have mentioned that the composite index is expected to rise to 46. we have a similar expectation. we'll be looking at the business activity, as well. it tends to give us a real flavor of the meeting. and we are hoping to see further signs that the u.s. is progressing its way through the inventory cycle and will probably be, you know, slightly negative this quarter. we're hoping -- sorry, in q2, but we'll be close to stable across the whole of q3. >> yeah. 46 would still be a contraction, right? so we're still contracting just at a smaller pace than we were before. when do you think we see a number above 50? >> well, that we will see coming

around, i don't know if it's september or october. it's likely there's a bit of a pullup from manufacturing. in the final quarter, we're hoping to see positive growth in the u.s. again. boosting that second half is likely to be fiscal stimulus will be more visible in the second half as it's taken time to unroll and that is going to push the u.s. economy back into positive territory the second half of this year with the nonmanufacturing ism rising, as well. >> once we get into positive territory, what happens, are you an l man, a w man or awe man? >> the question is whether or not you see a double dip. the positive is that we avoid the w, that final demand starts to pick up su just as we start to see the fading effects of the temporary stock adjustment. we would hope to see a subdued

levels of growth as we go into 2010. we'll be keeping a close eye on demand. there are some signs we might see a pick up as we move into 2010. >> one of the things investors has to fear is that central banks jumped the gun too early in that investors were starting to worry about inflation and we saw that in the rally from march to june and they were trying to put inflation trades on. is there attendsy for central banks to not get their exit strategies wrong? >> there's a danger, but i think if you look at a lot of the key central bank members, they ever downplaying the needs to exit from here and there is no inflation risk out here a lot are saying. yes, we're doing that to offset problems in the credit market. we have a huge output gap. that will keep medium term

inflation pressures subdued over the next few years and we can allow the economy to recover. we're hearing central banks and politicians alike saying the danger is reversing this too soon. on the balance, we think the central banks will hold back from that and we think monetary policy will be pretty low in historic terms for years to come. >> david, this is christine. the japanese governor is warning many firms in japan still face tight conditions and do you think the central bank is doing enough to get japanese banks to start lending again? >> it's probably doing about as much as it can. at the same time, he says it's seen xwompts in the commercial based market and in the corporate bond market which again follows the bank of japan policy to specifically ease those. so it might be that the central banks looks away to the

targeting small and medium sized ender prize. but also, that the general easing is something that can help japanese businesses. shirakau saying there were increasing signs it was leveling off. it was relatively more upbeat than that, despite note b the tight lending conditions. >> a lot of focus on central banks. a lot of focus on the g-8 meeting coming up this week. are you hopeful that perhaps the group might come up with something to provide a better scenario for global recovery? >> not really. a second wake-up call and an opportunity to seize and implement the decisions that have been made. but i don't think this meeting is likely to do anything in terms of the global economic backdrop, other than reinforce what the g-8 finance meeting

said, which is that the general economy is stabilizing. we will be looking for some spur of the moment momentum on reinstigating the trade round. but no, i think in terms of the global economic activity, the big decision to be made is a case of implementing them now and waiting and seeing. >> all right. david, good talking to you, as always. thank you so much for being with us. david page, economist, investec. india is in focus with the budget going on there. anichya shaw joins us with the india business report. >> thanks for that. the market is still under pressure. 200 points down on the nifty. these are the key levels to watch out for. we've seen on a count that's 6.8% fiscal deficit figure, the

bond markets are getting spooked. they sold off about 2 odd percent. the yield on the ten-year shot up. it's in the all negative from the budget. they have targeted the 9% positive growth and spending over the next four to five years. they've talked about a huge natural -- but nothing came on divestment and they are expecting that to be one major factor. the fiscal deficit, it was mute odd that front. you've seen banking stocks under pressure there. idc is the biggest gainer of the nifty, up by 5 odd percent. a bit of a positive there, but net-net, lack of any big bang on diversement, oil prices have kept the markets under a fair bit of pressure. >> a neech ya shah, thank you

very much. investors did not like the indian budget which will be push the india budget higher. pierre, good to have you with us. obviously, the markets are disappointed. you, as i understand it, are also disappointed. lack of economic performance. why do you think he held back? >> well, the prime minister has raised expectations. he has disappointed the markets on both counts because instead of doing what he said, he has done the opposite. i mean, he has essentially focused on fiscal spending as the main mechanism to continue economic growth and done nothing on economic reform, particularly

dis appoiappointing is the mode target for disinvestment receipts and absolutely no announcements on the other areas of the economy. >> why do you think he went back on his word? was there a lack of consensus within parliament? >> well, i think it's two things. the budget is, of course, primarily a fiscal statement. and the expectations were that he would lay out a vision for the economy over the next year or two. he hasn't done that. the expectation is now hopefully over the course of the next two or three months, he and other ministers will lay out the form for the agenda. but now, it's a huge disappointment to the market. specifically, the fact that the tarlth for disinvestment receipts is so modest is really

quite a shock. >> we've seen bond yields rise. how much does this budget do the good feeling that was generated by the election results for overseas investors? >> well, i think it more or less undoes all of it because the whole purpose of the election from the market standpoint was that now you had a government that was not dependent on leftist communist parties and, therefore, it was unshackled from the constraints that have been holding it back and had new economic reform. those are not come forward at all. from that standpoint, the market is justifiably disappointed. also, it appears that the budget is focused on things like rural spending, which is perfectly good in the long-term, but the focus appears to be much more on

populism rather than economic reform. now, in that area, i would say there is one positive in that farmers who received an almost free meal ticket of form loan waivers last year, this year, there's an incentive for farmers to repay loans. those who repay loans will get a lower interest rate structure. there are other positives in the market, but broadly speaking, it is very disappointing to eighteen investors. >> obviously, its much more complex to get sustained growth at the high rates in india because i guess more capital inflows are needed. do you think capital inflows will be impacted because of this? >> i don't think capital inflows will be impacted that much. there is no doubt that india is one of the fastest growing economies in the world and it will remain that way going

forward. real gdp growth should still be over 6% this year, which is really quite unique. outside asia, there are very few economies that are growing at that sort of pace. china and india being the two exceptions that continue to stand out. many of my competitors in the market had raised their forecast to 7.5% and 8%. i think those hopes have been thoroughly disappointed. we're not going to see immediate acceleration in economic growth. i don't think that the external balances are under threat. india will have a fairly small current account deficit. it will be fully financed by fdi and some portfolio inflows. so the external balances are strong. growth is still reasonable. but the acceleration that many were expecting is not going to come through. >> pk, how are they going to fund this budget?

that's one thing. and 9% target growth, will they be able to achieve that? >> obviously, the target is not 9% for this year. if you look at the revenue projections, what is interesting is that the implicit assumptions is conservative with regard to growth. nominal gdp appears to be growing about 8.5%, 9%. real gdp, if it grows a little over 6%, that targets a very low inflation rate. so i think they're being conservative with the revenue projection and, therefore, it's quite possible that the actual deficit will be smaller than currently forecast. the important point is, i think over the next two or three months, the government will come to realize that they need to accelerate the program as was premd in the government's own economic survey published on friday. they need to widen and expand the privatization program as the main source of financing the

deficit. >> pk, thanks so much, pk basu, chief economist with daiwa research of institute. we'll jump over to dubai to get the latest on what's happening in the middle east. nadine. >> another negative source of the week as financial markets dropped 3.6% yesterday, first day of trading for the week. the index closed down % yesterday after the real estate giant announced it had closed operations in algeria, which they had basically agreed to develop about $20 billion worth of projects back in march 2008. this has come to a close due to a lack of progress which they say is beyond the company's control. today, even though the index climbed in early trading, it's again in the red with the gfm down almost 2%. in terms of other news, m&a

activity in the middle east has registered an 86% drop during the first half of the year compared to the first half of 2008. this is according to merger markets with a service provider. in a recent report, they were basically saying that the total value of deals up until june 23rd stood at .2 billion u.s. dollars compared to 8.6 billion u.s. dollars in the same period last year. also, she showed some figures coming out of the first quarter saying that just 12 deals worth $600 million were concluded compared to 25 deals worth $7 billion u.s. dollars in the first quarter of 2008. back to you. >> nadine, thank you very much, nadine hawa, cnbc mumbai. the renewed bid includes

upgrading facilities to process the oil. the blocks in the country's oil-rich belt are among seven being offered by venezuela. the government says they hold a combined $272 billion of recoverable reserves. the company holding one of the blocks has been estimated at between $7 billion and $10 billion. guangzhou auto will reportedly sign an agreement with fiat covering a number of business projects. an italian business daily has said that the alliance will see a joint reduction planned in 2007 to receive three fiat models. societe generale says it expected net income to be a little bit positive when it publishes second quarter figures in the second quarter.

the cost of risk will reach levels around those seen in the first quarter of this year. elsewhere, the bank of england is expected to announce another $40 billion boost. it's widely they thought they will increase their purchase asset system to boost the earnings. policymakers are expected to leave rates on hold this week. that decision is on thursday. scott. krot chrysler has named the final members of its post bankruptcy board of directors. the group includes directors chosen by fiat, the u.s. and canadian government and the uaw. last month, chrysler said robert kitter would be its new chairman. chrysler expects to hold its first board meeting at the end of july. a private equity group is considering whether to lead a

rescue bid for nortel networks. the financial times says mathlin patterson global investorses is trying to put together a consortium of investors. the twap would have to be made by july 24th to consider a $650 million bid considered by nokia seman's networks considered by north of nortel's equipment operations. >> scott, whether it's videos, blogs, news, anything, you can find them all at cnbc.com. coming up, joe biden admits the obama administration misread the economy, but he doesn't favor a second stimulus package. we will find out more shortly, ross. and we're still seeing

unwinding of the recovery trade in the currency market. the yen and the dollar are firmer. we'll talk about that.

we turn our attention to the currency markets. with equities weak yet again, we continue to see a reverse trade w yen and dollar firm. the dollar is firm against everything else. hilka is with us. thank you very much indeed for joining us. are we still feeling the fects fromhe employment report on thursday? it looks like the employment trade has been put on hold. >> we have seen a mixed bit of data from last week. so i think with the equity markets down this morning, with commodities weaker than last week, i think the market tends to buy further dollar. >> where does that leave us as we go through the summer? what sort of strategies? are we still working -- are

currency plans still working out what the strategy plays are are going to be? >> i think were range bound, to be honest. i think as the data cannot convince either bulls nor bears, i think we are range bound and the market is focusing on other correlations. i think interest trades and interest spreads and gold is maybe growing and important. so many participants focus on that and surprisingly, i think the dollar might gain on that a little bit. but overall, to be honest, i think we might test 137.50 on the top side maybe 1.42. but other than that, it looks like the market is pretty much balanced. >> hilko, it's scott in the u.s. as we talk about that recovery ross was mentioned, if the data continues to be a surprise to

the downside, that means more strength for the dollar, doesn't it? >> it does, definitely. so the market was a bit too far in a couple of currency fares. and i think we take a breather. the ism is not the biggest market mover, but when people get disappointed, i think people tend to buy some further with the dollar. so yeah, and even this morning, we have seen some comments from china saying that the dollar will be the one and only currcy reserve for the time being for the next maybe decade and as everyone belongs dollar, it's in everyone's interest. so people tend to the dollar, especially this morning and beyond that, on the back of that data we have seen. >> yeah, but china, over the last week or two weeks, they may

say that today or they could say something else tomorrow that they want the debate reopened, along with comments coming out of russia, as well, so that reserve currency status. china has had a lot on where the dollar has been trading, as well. >> yeah. i think they realize that they cannot establish a second reserve currency soon. so, of course, there's some talk that the chinese yuan gets more important. but it's a long, long road. we a talking about a road maybe ten years long, established a second or third currency reserve. so we have seen mixed comments. but overall, i think it'sin chinese interest to stick with the dollar. and even russia and india is sticking to the dollar because they run their assets in dollars. >> hilko, this is christine.

if we had to choose another currency besides the dollar, what would that be, would that be the japanese yen as a second reserve currency? >> i think it's a blths between the euro for the second reserve currency, but the yen is also in place. but overall, i think the yen is more dominated, actually, from outflows out of japan as we have observed the last couple of weeks that there are huge outflows. as the market is focussing on rate spread, especially out of japan we see some interest to invest in aussie and kiwi in the dollar. >> okay. good to see you. have a good week, hilko kalberlah, from do you have ya bank. still to come in the next hour of "worldwide exchange," jean-claude trichet has urged banks to stand lending. plus, obama is touching down in moscow shortly for talks with

putin and medvedev. so, ka kicked off the conference call... but missed the first half tryi to download the docs. which turned out to be the old-new docs... raer than the new-new docs. then bob dialed in from home and his... dog starts barking. jen jumped in with her "twcents"... which katy missed becaus she was buying shoes onlin and then i hit mute... to talk timelines with my team. getting lots of diy looks through the phone in the process.

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i'm christine tan. in india, investors show their disappointment with a budget as they push the fiscal deficit higher than expected. and i'm ross westgate. banks and energy firms are the

biggest losers today. and i'm scott wapner. general motors jumps a major hurdle in its bid to emerge from bankruptcy as a judge approves a plan to sell its assets. if you're just joining us in the united states, welcome to the start of your xwloebl trading day with "worldwide exchange" broadcast live from the u.s., asia and europe. and in the u.s. at this hour, let's take a although at where futures are shaping up on this first trading day of the week. we've been below fair value across the board this morning ahead of the key ism services report. the president certainly, in his trip to russia, will be in focus today, as well. as i mentioned, down against fair value. the nasdaq down by 12 or 13 and the s&p 500 looks fairly weak after the open. certainly that picture could change a little bit.

let's take a look at the bund need today. treasuries are likely to be active today, as well, as we get another economic report on the docket, if you will. so let's take a look at where the ten year treasury note is headed today. 3.51% on the ten-year note. >> you guys are back after a long weekend in the united states, and that's going to provide momentum. there certainly wasn't any of that on friday when the u.s. markets were closed. the ftse cnbc global 300 market is down 32 points. losses of sort of 1% or 1.5% across the board today. the commodity sector is down. energy stocks, banks, insurers, that's what's all playing into the ftse 100. the smi a little bit less. and because sort of the recovery

trade as we were talking about a minute ago seems to be in doubt at the moment, so we've seen the yen and the dollar stronger mainly on the currency markets. the dollar/yen is weaker, down to 95.25. euro/dollar is back to 1.39 levels. sterling is down against the dollar to the lows, 1.61 and the euro is firmer against the pound, christine. >> hey, ross. here in asia, we had a mixed start to the week, a cautious start. a lot of people are questioning the start of the global recovery. a lot of investors are waiting to see what the g-8 will say and do. the nikkei 225 down 1.4%. kospi up 0.6%. the shanghai market is a clear winner up 1.2% despite all the news after the ipos coming into the shanghai markets. the hang seng is down 1.23%. the bombay sensex is down 5.5%. in terms of oil, oil is sliding. the last time we checked, it was down more than $1.

right now it's down more than $2.$64.22 a barrel and brent is moving lower, in line with the overall selling we're seeing in the resource space. $64.06 a barrel. ross. as we get into the start of a new week, where does it all go for inveriers? joining us is christian glassgow. christian, it seems like an important week for for investors. we have the ism coming out today, we've got the g-8 coming up, as well. are investors feeling cautious as we get into the summer months? >> well, certainly. i think first of all the reasonable patch is volumes are a bit thin. anything can happen. we had a strong run since the marleaus. with this inflationary pressure that was perceived by the

markets, there were a lot of things there that went right and now investors are worried and they're taking money off the table. >> how long is that going to last, christian? is it going to be what companies say about the earnings? are earnings expectations too high, or not? >> well, if we compare our top down estimates with the bottom up, so it was analyst estimates. so we would say for the u.s., we are quite comfortable there. so the market is quite realistic. we have some issues in europe where we have about a gap of 30% on that measure. so we think that maybe europe is likely to dis appoiappoint more. and overall, i think there smib some surprises, especially on financials. some of them had a strong first half of the year. >> christian, scott in the u.s. i mean, when it comes to

earnings, don't you think expectations have been ratcheted up a bit based on some of the better than expected data that we've seen over the last couple of months? so rnings better live up to those expectations, right, or we can see some problems. >> well, absolutely. i think the market would be nervous if you had any big misses. but if you look at the pace in the second quarter of negative earnings revisions, it was still quite ongoing. what you described now is rather something that now happened over the last few days or two weeks. so i think we're not that well involved. but i think it will be a mixed bag. i think that's probably the area to watch out for. >> christian, this is christine. oil is getting hammered today. down more than $2 the last time we checked. is the rally in commodities over? >> well, i think this short-term

reflationary china driven rally over the past few months is running out of steam. i think we have a high conviction that we're in the equity bull market. but now it's time for a break. >> but if the recovery trade is in doubt and that has the dollar rising, doesn't that squash any sort of momentum. >> commodities as christine was alluding to? >> yeah, sure. that is the same that will keep us busy in the third quarter, that we have to assess how much of this negative economic momentum going forward will weigh on commodities. >> on the other hand, it was not driven by the u.s. market but by china. i think that is the swing factor.

the third quarter, yes, it will be a bit of a difficult issue given the cyclical difficulties, but then beyond that, i think the market will very much focus on the china story. >> christian, as an investor, are you watching closely what the g-8 will say and do? >> well, certainly. this is kind of the big picture you get. i don't think it helps you in your currency portfolio. i think for the long her term, it is helpful and it will guide investors into 2010 and 2011. that's why we're looking for this piece of information. >> christian, we'll leave it there. i know you're going to stick with us for a bit. thanks very much. christian gattiker-ericsson is global strategist with julius

bar. >> still to come, u.s. president barack obama landing in moscow in the next ten minutes for talks with dimitry medvedev. can he repair the relationship between the two countries? we'll have more just after the break.

president obama will be landing in moscow in just a few moments ago he lands in italy. today, mr. obama will meet with the christian president, medved medvedev. the u.s. and russia have agreed on the outlines of a new nuclear arms control deal. one agreement expired in december. joining us to look ahead is david clark, chair of the russia foundation on the phone from oxford. david, thanks for zoibing us. although this meeting is there to agree to a new nuclear arms deal. what is the most important part? what are we trying to see or get achieved here? >> well, president obama, shortly after he was inaugurated, said he wanted to press the reset button with relations on russia which is to say that he wanted to overcome all of the tensions that had built up between the bush add

mip administration and russia and make a new state based on common interests that they could work towards and one that would be free of tensions that had man faftd themselves in the previous eight years. and i guess the summit really is an attempt to try and set out an agenda and a framework in which that new agenda and that fresh start can be built. >> mr. putin has said mr. obama knows very little, really, about russia. that's not very helpful, is it, ahead of this meeting? >> well, i think it's not an issue that president obama has dealt with in his previous political career. president obama himself is not a great foreign policy specialist. he built his reputation on domestic policies and his election platform featured the domestic agenda to a high degree and not a great deal with foreign policy. so i don't think he's wrong in what he's saying. whether it was diplomatic and

whether there was an element of needle in what he said is another issue. i think it's probably fair to say that vladimir putin doesn't know a great deal about the united states, either, and certainly doesn't know a great deal about president obama. in that sense, there's probably mob equivalent in the starting points of these talks that prime minister putin's comments would suggest. >> david, it's scott in the u.s. with all this as the back drop, what's the likelihood that u.s. business or any foreign business for that matter from the west could have a greater impact in russia? one of the most startling statistics that i saw ahead of this was that russia's trade with the u.s. was worth $36 billion in 2008 and that's the same amount with poland, which was rather surprising to me. >> well, the -- russia's biggest trading partner is the european union and that tends to be the case. countries that are closer

geographically tend to have a much higher proportion of trade. so the fact that poland and russia are so close doesn't really surprise me that poland is a bigger trade, as big a trading partner as the united states. i think the role for foreign direct investment in russia is limited. as a way of changing russian society precisely because the russian government identifies the capacity of foreign companies to change things and wants to limit that. it wants the money, obviously, it wants the technology transfer, but it doesn't want to import foreign commercial norms, particularly, the rules of law as it applies to property rights and normal commercial practices. in certain strategic industries, the russian government identifies the state as being the come napt force and wishes to protect those, particularly those thinks of the mineral extraction parts of the economy that are so important to russia. so the way in which the russian economy is structured is

deliberately structured in order to maximize, if you like, russia's ability to attract money in capital, but without any of the -- without giving up any of the controls it would normally sociology associate with that kind of process. >> david, this is christine. what about russia's bid to join the wto? do you think russia can convince the u.s. to back its bid? >> i think russia's interest in joining the wto has declined markedly and recently russia announced that it's pulling its own application to join and would be reapplying to join along with kazakhstan as a joint trading block. i think that was a power play. it was basically saying, i think, to the international community, are you going to let us join the wto or not? this process has been dragging on for 16 years. it's time that it was brought to some sort of conclusion. either you are going to fast track these processes now and let us in or we're sending a

signal that our interest in doing this is cooling. i think they sensed probably quite correctly that with georgia and ukraine on the inside of the wto that their chances of succeeding in joining has probably diminished significantly and, therefore, they are sending a signal of disinterest. >> okay, david, thanks so much for joining us this morning. david clark is the chair of the russia foundation. certainly a lot of attention will be focused on that obama visit to russia. a judge, meantime, approving general motors' plan to sell the bulk of its assets into a new company clearing the way for the automaker to a emerge from bankruptcy. the judge agreed the sale was needed to preserve its business saying the move will, quote, prevent the death of the patient on the operating table, end quote. the u.s. had given gm until friday to gain court approval or risk losing financial support. some abdomen to that sale during

court hearings last week. gm could complete the sale by tuesday. scott, societe generale says it expects its net income to be slightly positive when it publishes its second quarter figures on august 5th. the group has warned that its banking income will be hit by $1.8 billion. the costs are expected to reach levels seen around those in the first quarter of this year. india's sensex is tanking as investor investors express their disappointment in the budget. the india prime minister unveiled measures to increase spending for the rurupor. that's expected to push the 2009-'10 deficit to 9% gdp. mukuji pledged to return the

country to a growth rate of 9% a year as soon as possible. the indian rupee getting hammered as a result. right now it's up 48.48 against the u.s. dollar. whether it's news, videos, blogs, anything moving markets today, find them all at cnbc.com. still to come on the show, european equity markets has started the week in the red with banks and energy firms the biggest losers. we'll ask what is ahead for u.s. stocks. the gold delta skymes credit card... from american express... it's the official card... of the world's laest airline. and it's the oy credit card... that earns mil on delta. miles that take you... to more places than ever before. er 350 destinations worldwe. switch today. get up t25,000 bonus miles-- good for a free fligh call now to apply.

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okay. the u.s. is back in play today. we're going to bring you up to speed with what's happening around the global with our team of reporters. becky in london. >> thanks, ross. the ftse 100 is lower. down by over 1.2%. we seem to be stable around these levels, i should point out. we do see many decliners amongst the basic resources stocks. xstrata, lonmin. the biggest decliners in that sector, as a matter of fact. rio tinto selling one of their noncore businesses, the food packaging business for $1.2 billion. clearly, this business is trying to raise a bit of capital there,

trying to reorganize things on that level. jjb, another big mover. we have had this sports retailer coming out with a statement this morning saying they are trying to raise capital, too. possible disposal on the cards, possible share on the cards, too. they've been suffering from an economic downturn and shares are down by almost 29%. sylvia, how is it looking in germany? >> well, as far as the overall market is concerned, pretty much in the same step as we are everything else. two stories driving us here today. one is the autos, who might or might not take a stake in pore cha. it looks like qatar, but a number of other possibly interested parties stepped up to the plate. although porsche says they're sclus itchly talking to qatar. interesting, volkswagen/audi, the best sales in the first half year ever in china.

so they're doing well in the asian market. 28% unit sales were you up there. we've seen this for a number of months. and the other part of the story is, of course, the banking story. credit crunch, yea or nay. the german finance minister struck the bows of the banking sector and said you either pass all the liquidity that the ecb flushed into the market on or else we might have to think about something else, like side stepping the banking sector by giving direct loans to the corporate sector. all these things are possible. the ecb has said similar things, not quite as harshly as mr. steinberg did and the recent figures support that. the latest report out of the ecb says that out of the 442 billion euros that were flushed into the money market last weeng, 35 were packed back at the ecb. that can't be the idea of these liquidity injections. chloe, what sup in asia? >> sylvia, great to see you

again. a lot of directionless trade out here in asia, not surprising given that a lot of investors will be looking to what happens tonight on wall street, plus the earnings numbers kicking off with alcoa later this week. the nikkei pulling back 1.4%. we've got the yen level pressuring some of these exporter stocks. and along with shipping stocks, of course, the battlic dry index pulling back 4%. in south korea, despite north korea firing off seven ballistic missiles over the weekend, the market showed a lot of resilience, as well. samsung electronics, of course, managing to give that market plenty of support. in china, the interesting thing is the shanghai composite now hitting a fresh 13-month high. we've been renewing that view, that fresh 13-month high on a daily basis. also the market is seeing a liquidity bound.

a lot of trader res saying that is pretty much factored in. steel stocks in particular are doing pretty well along with brokerages because of ipos and higher spot surprises on top of host for lower iron ore price negotiations with key suppliers. but hang seng did that china effective not rub off on the hang seng market pulling back below the 18,000 level again today. over to scott in the united states. good morning. >> hey there, chloe. in the u.s., investors may shift their focus this week from economic data to earnings reports with alcoa kicking off the second quarter's reporting season when it posts numbers after the closing bell on wednesday. the economic calendar is lighter this week with key reports out thursday and friday with jobless claims, import prices in the pay deficit. today the ism or services manufacture index is out with analysts looking for a reading of 44 in may with 46 for june.

>> that data will be key, i guess, for some of the session today. we have quite a lot of treasury auctions coming up this week. what happens to the bond market from here? christian gattiker-ericsson is still with us. what's your outlook for government bonds? >> certainly in the second quarter, there was a reflation trade going on. against that back drop, we saw major losses in some of the government bond indices. but i think, you know, anything towards 4%, for instance, in the ten-year treasury sess value given the deflationary pressures that we still expect to be maintained in the second half of this year. so that would be rather on the constructive side. so whenever you see another blip up in yields or so, i think that's a certain buying opportunity because you get a relative stability with a decent

return, given the fact that money markets will stay low for a very long time. >> okay. christian, stick around. more to come from you. coming up, vince ferrell will join us, as well. welcome to progressive.com. you must be looking for motorcycle insurance. you're goo thanks. so is our bike insurance. all the coverage you nd at a great price. ld on,owboy. cool. i'm not done -- for less than a doar a month, right on. ah, vroom-vroom! sounds like you ran a 500. more like 900 v-twin. excuse me. well, you're excused. the rit insunce for your ride. now, th's progressive. call oclick today.

it is 30 minutes past the hour. here are the top stories from around the world inspect in the u.s., general motors clears a major hurdle in its bid to emerge from bankruptcy as a judge approves the company's plan to sell its assets. in europe, stock markets start the week in the red and banks and energy firms are the biggest losers. and here in asia, understandin investors show their disappointment with a budget that will push the fiscal deficit higher than expected. let's take a look at where u.s. futures are shaping up four

hours or so before this trading day. the ism services report will be closely watched. the futures have been holding steady now at the range of 60 points on the dow below fair value. nasdaq down by 13 points below. we had a pretty good outlook from samsung this morning. the s&p 500 futures are about 8 points below fair value. let's take a look at the ten-year yield. focus will be on treasuries around 10:00 a.m. eastern time. that's about that ism report comes out. 3.52% is where the ten-year yield currently sits. >> european stock markets have been trading to the downside and trading flat from that point. we've got losses of 1.5% for the german and french market. there are no sectors at the moment in positive territory. resources, auto and gas, oils, banks and construction are the biggest losers at the moment.

because stock market res weak, so the yen and the dollar is firmer. the yen is firmer against the dollar and the dollar is up against most things. the currency markets are totally driven by what's happening on the equity markets. dollar/yen, 95.29. euro just hitting a session low, 1.39. sterling, 1.61 against the greenback and euro/sterlin euro/sterling, .8631. ross, a lot of investors are covering the state of the global recovery. in terms of sectors, the resource link electors were being sold off today. in japan, the nikkei the 25 up 1.6%. the shanghai market had a stellar performance today despite news of another ipo coming on to the market. the bombay sen sense down 6.1% because of disappointment of the indian budget pushing the

deficit higher than expected. in terms of oil, that has continued to be sold off. right now, it is down $2.44. $ 6/4.27 a barrel. and brent is getting sold off as a result. $1.50. $64.11 a barrel. scott. joining us now for market strategy is vince ferrell and christian gattiker-ericsson is still with us this morning. vince, it's good to see you. let's talk about what's on tap this week as it seems to be a fairly important week. you talk about ism out today and as we look ahead to earnings, size it up for us on what this week means. >> i think, scott, the ism number is a very important number because more jobs are service jobs in the united states. and you reported before the estimate is 467. this is a number where above 50 is expansion, below 50 is contraction. it's been bumping along about

44, 45, so you don't want it to slip knit further. and after last thursday's very dismal jobs report, the worry is that it will slip. wednesday brings consumer credit numbers. the past two months, consumer credit has been off $16 billion per month and i think it will be a little bit less than that. but still, it's going to be a very clear sign that the consumer continues to contract, spend less, babb row less and save more. >> how important are earnings, vince? it seems as though expectations have been ratcheted up slightly as some of the data over the past several weeks as come in better than expected. so there's a lot riding on these numbers to meet the expectations that are now in the market. you couldn't have said it more correctly. 45% of the s&p 500 have earnings estimates raised in the past couple of weeks. so that sets the bar a little

uncomfortably high because i think for the market to do well, you really have to do better than expected. that's just the nature of the beat right now. and as important as the earnings will be the korns calls with the future outlook. in fact, that might be more important than the earnings. but i'm worried that we're going to get disappointments out of the earnings themselves. so my very short-term market outlook is negative. i think we're going down for a little while. >> let's bring in christian here who is still with us. christian, do you go along with what vince is saying? >> well, i agree. i think there's certain risks of disappointments at this stage of the segment. particularly, on the other hand, i think it's a cyclical, as well. and i think the biggest unknown or big string factor possibly would be financials. and they're -- i mean, it's really hard to get the right number ready in terms of expectation. i think that's where we will have the biggest deviation and

probably also the biggest market mover. >> vince, is that right? for our sentiment, do we still need to see banks coming out with good earnings and there's a theory here, if they come back and have to pay off too much of the t.a.r.p. money, we might be seeing a bit of a negative impact? >> absolutely. christian is right. if i have to look at one thing, the big banks are going to balk about trading volumes and perhaps good numbers from that score. but what i would like to drill down on the financial reports, what is the net interest margin? that is, what is the difference between their cost of funds and what they can loan it out at? and i think that net interest margin number could well dictate how the banks trade near term and what their future looks like. i'm expecting reasonably good numbers. while the lending environment isn't robust, they can pick and choose who they want to lend to and it's kind of in their court as to what their the spread is going to be. so i'm looking for good numbers

there and that's why my outlook is negative, but only on the short-term. i think we have to go through a fairly normal correction off that wonderful march rally that we had, but i'm optimistic that things are falling into place. >> vince, you sound pretty optimistic. where would you be parking your money at this stage as an investor? >> i really like the large cap technology companies because i think that's one of the solutions to increased earnings for most companies over the next year or two. you'll be looking for productivity enhancements to try to get some of the earnings stream. and the big cap stocks, microsoft, intel, by the way, i own all of those, those have extremely powerful cash flow, huge cash balances on the balance sheet so they have great flexibility as to their financings. i also like those s&p companies out of the top 100 that have increased dividends in the past

six months, an increased dividend in the teeth of the financial storm and there are some wonderful names like walmart, johnson & johnson, ibm, companies like that that have been able to increase their dividend that on average are trading at about 13 times earni earnings. so i like the large cap, financially strong companies. >> okay. thank you for the disclosure, vince. what about the resource sectors? oil seems to be coming off a bit. do you think the commodity rallies still have steam? >> no, i don't. i think oil will go somewhere between $50 and $60 because that's the marginal cost of production out of the most expensive areas in the world and a commodity typically will revert back to its marginal cost of production. i think the economy in the united states and the rest of the world is improving. we had very good ism numbers out of china, the uk and the united

states and japan last week, but the numbers were less bad. they weren't good yet. so i don't think you'll see much of an economic exuberance over the next quarter of two. like i say, oil oil especially was touching almost $70 a week ago. i know it's off again this morning. i expect to see, say, $50, $55 in a relatively short-term. at that point, i think the large cap energy stocks are going to look very attractive because right now they're trading as though oil was already below that. but as the price of commodities go down, the price of the stock tends to go down. >> christian, do you disagree with that, or not? >> i'm afraid not, no. i agree completely. i think that is a correction in the price of oil and the balance sheets in this sector. and our call is actually to go for safe dividends and i think that's actually where you'll find them because of names

like -- they have net cash positions so they can pay dividends for everything. >> all right. christian, thank you very much for that, christian gattiker-ericsson global strategist and head of research. vince ferrell, cio fio securities group, thank you, as well. let's cross live to tokyo and check in on the trading day there. asudo-san. >> hello. tokyo stocks dropped sharply for the fourth traid straight day with the nikkei 225 dropping. political uncertainty weighed on the market. in a local election over the weekend, a candidate backed by the opposition democratic part of japan won. it's the fourth consecutive victory against an lvp supported one in local elections and has

raised speculation of a change in government in the upcoming general election. at the tokyo stock exchange's further election, over 60% of all stocks declined. the few gainers were mostly defensive shares, not just electricity, pharmaceuticals and gas. among decliners, nippon dropped nearly 3.5%. last friday, the battlic dry index slid to a one-month low in london which triggered investors to sell related stocks. exporters were weak. bellwether sony dropped over 1%. toyota motor had started out gaining slightly after the nikkei reported that it will be rolling out a more fuel efficient hybrid vehicle in 2012. but with a strong yen, it eventually slipped nearly 1%. investors were selective in picking out stocks with positive news. pasona rose 8% after announcing

last friday that the year through may beat its forecasts. the lack of job openings made it less expensive to recruit temps. also, quantica made gains, as well. back to you. >> thank you very much for that. scott. >> christine, still to come, the u.s. vice president joe biden said the obama administration misread the shape of the economy. we'll have more details on his statement and options available to tackle the crisis. before that, here is a look at how the u.s. futures are shaping up. businesses more efciently,

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iority mail flat rate boxes on from the postal service. a simpr way to ship. call go online now to get srted. welcome back tos "worldwide exchange." a judge has approved general motors' plan to sell the bulk of its assets into another company clearing the way for the automaker to emerge from bankruptcy. the judge agreed saying the move will, quote, prevent the death of the patient on the operating table" end quote. some bondholders and is consumer groups objected to the sale during the court hearings last

week. it's unclear if they'll appeal the judge's decision. reports say gm could complete the sale by tuesday. vice president joe biden said the white house had initially expected unemployment to peak at 8%. i it rose to 9.5%. >> june, the highest level in nearly 25 years. biden said it's still too early to say whether a second stimulus package is needed. >> we have to properly, adequately, transparently and effectively spend out the 700 and -- if you notice, george, there are other predictions. this is going be wasteful in all of these terrible projects. we're going to be out there and we'll be wasting money. well, that dog hasn't barked yet.

>> biden says billions of dollars in projects included in the current stimulus bill won't begin to come on line until september. we wanted to show you some pictures of president barack obama arriving here in russia for those talks. with the. putin and president medvedev. there you see air force one on the tarmac. u.s. companies hope to gain grater access to russia, as well. chrysler named the final members of its post bankruptcy board of directors. the group includes directors chosen by fiat and lakrois ler

expects to hold its first board meeting at the end of july. the sensex is tanking as investors express their disappointment at a budget that promised reform. instead, infrastructure development will be sped up and increase spending for the rupee. total spending expected to rise 36% to around $213 billion. mukogio pledged to return the country to a groekt rate of 9% per year as soon as possible. the rupee is up 48.49 against the oours $. societe generale said it expects its income to be slightly positive when it publishes second quarter results on the 5th. the group is saying that its net

income will be hit by a charge from debt instruments. it says the costs of charge will reach levels around those sateen in the first quarter of this year. and a quick look at the sport wrap. wimbledon finished the weekend with a marathon men's final. roger federer beat andy roddick. he has become arguably the biggest player of all time. he is now the outright grand slam leader with 15 majors to his name. it was quite a match, one that he thought would never end. these are the pictures from moscow, where president obama happens to be just landing. he'll be meeting with president medvedev later on in the day. let's find out what's coming up on "squawk box." becky, did you sort of do a

wimbledon breakfast? >> watched with great interest. and i have to say, i wish joe was doing this tease today because we were just upstairs talking about wimbledon. as you probably wouldn't be surprised, carl was defending wimbledon and how great tennis is and joe was saying, whalgs the point with the guys being on the other side? all they're doing is four serves and you're done and carl was saying, yes, it's much more interesting watching a four-foot putt. of course, you like tennis and golf both. i guess you would come down in the middle of this. we'll be talking about banking on america, former fdic chairman don powell will be our guest host today. we'll be talking to him about the banking giant and moves to step up the regulation of the entire industry. the former fdic chairman is bringing things with him, including brian marshall. he's in charge with cleaning up

one of the biggest messes on all stwreet. california handing out ious to comp expenses. other states are dealing with massive budget shortfalls. we'll be talking to illinois state treasurer alexi nuloff. we'll be speaking with mark holeberg. ross, it is hot hand today. we'll be reaching out to fund managers who are knocking the cover off the ball. and i keep talk showily, ross, because i was hoping joe could get here so you could raz him about that point of view. carl and i will be talking about how yes, this was an amazing match and this is a great sport. >> golf and wimbledon tennis are both middle ground. becky, thank you.

up next on "worldwide exchange," the ism nonmanufacturing index is out and will be closely watched as analysts look for a reading of 46 in june versus 44 in may, keeping in mind that a number below 50 signals a contraction. d

let's get a look ahead at the u.s. trading day. vince, you said earlier you think we're going down for a while. where are we going to? >> yeah, of course, scott. you know, the rally we had off the marleaus was almost 40% off the s&p in a very short period of time. if you look back, whenever you get a rally, that's significant in that short a period of time, you usually give back one-third to one-half of the advance. that's perfectly normal and not to be something that upsets you unduly. so if you take the average of those two, in my opinion, you're heading back towards the lower 800s on the s&p over the next few weeks. and if we do that, we'll look back on this bear market bottom that's been put in place for nearly a year now and you'll see this actually would prove to be

a higher low than we had before and that would away good thing. >> so you're buying on the dips? that's the point here, right, of the stocks you mentioned earlier? >> absolutely. and not just the large cap tech or the dividend paying stocks. but especially in that dividend paying group, like the consumer staple stocks which a walmart would qualify. i think that the stock valuations in general are very fair and the environment is such that you look for those that are cheaply priced in that very fair environment and this technical stuff about correcting a rally is perfectly normal. >> all right, vince. thank you so much, vince ferrell, cio. let's take a quick look and see how this day is going to shape up. obama is in russia, futures down by fair value across the board today the. that's it for add's show. i'm scott wapner in the. >> i'm ross wegate in europe >> here asia, i' chriine tan. thanks for your companhere on "worldwide exchange."

d#: 1-0-340 "i'm rethinkingeveryth. tdd#: 1-800-345-2550 including who trust to look after my mon." tdd#: 1-800-345-25 td: 1-800-345-2550 "the dust mightbe sett. tdd#: 1-800-345-2550 that's great, t i'm t." td: 1-800-345-2550 tdd#: 1-800-345-2550 "i guess i'm just done with ? tdd#1-800-345-2550 tdd#: 1-800-345-2550 "oh, i'm not thinking abt moving my money. tdd#: 1-800-345-2550 i amoving it."

good morning. it's back and more important than ever. we'll make sure that you're ready. yes, it's still the economy. the vice president singing a sour note on its current state. a judge rules gm can sell the bulk of its asset toes a new company. "squawk box" begins right now. good morning, everybody. welcome to "squawk box" right here on cnbc. i'm becky quick along with joe kernen and carl quintanilla. earnings season officially opens for play this week. as always, dow component alcoa is kickin