the headlines, market shanghai, tokyo reverse early losses. they shrugged off data while the japanese business mood survey turns positive for the first time in nearly two years. nokia has agreed to merge with siemen's. analysts cheered the deal but worries about the telecom group's cash position. the opposition protests in egypt called on president morsi to resign. >>> you're watching "worldwide exchange," bringing you business news from around the globe. >> all right. welcome to the show. we had issued with the mikes. we have data out of the eurozone. manufacturing pmi. showing some signs of stabilization this morning. the final eurozone posting the index up to a 60-month high, 48.5 in june, but below the break-even 50 level that divides growth from contraction. some interesting numbers as far as this is concerned. spain up to 50. that stabilized easily. that is still the 23rd month of contraction since the high in july to 11. factories also reducing head count last month, but at their slowest pace since march 2012. for germany, factory outpu

go to exchange and shanghai people are buying gold and they are taking delivery of gold and they're doing so in big numbers huge numbers and you know when it's compared to mine production or even the imports that we're saying going from hong kong to china it's overtaking or at least reaching those levels on a weekly basis is what we're saying say all that physical is being pumped out of the us is just making its way to china how much. is flowing it is a crime to say it's flowing from west to east gold market well i would certainly say you know if you're looking at the federal global production that it's nothing's meeting anywhere at any other demand anywhere else in the world so it's going to china but we've been saying they rise in imports a long time from hong kong to china say all of that gold is going into hong kong it's being shipped instantly china people are taking to delivery of it i think in the last quarter. imports from china from hong kong is up sixty eight percent you know and last time i was on the day after we chatted the gold price fell quite significantly and has fa

citizen in shanghai in connection to the probe. joining us from beijing is cnbc's eunice yoon and staying with us in london, gina sanchez, chairwoman and founder of comma chantico global. >> we now know that there is another foreign national and u.s. citizen, an american, who has been detained. we don't know the name of this person, however we do know that this person, according to pfizer, eli lilly and glaxosmithkline do not work at those companies. the whole health care industry is very, very jittery. everybody is on edge and want to disassociate themselves as much as possible from an investigation if at all possible for them. the -- you had mentioned also there are -- that we really are seeing a widening investigation. there were two more people at astrazeneca who have been called in for questioning. this is after a local sales representative was taken away. also, the health ministry of china has said that 39 hospital staff would be punished for t e taking bribes from two drug companies. we don't know exactly which companies tho

it says it can confirm that it was visited by the shanghai public security bureau. it says it believes the investigation relates to an individual case. and it says while we have not yet received an update from the public security bureau, we have no reason to believe it's related to any other investigation, saying astrazeneca is committed to acting with integrity at all times. >>> still to come on the show, the co-chief executive of german software company, s.a.p., is to move to the company's supervisory board. how does he feel about it? find out as we bring you an exclusive enter rue with the man himself right after the break. >>> and we'll leave you with a look at how futures are trading ahead of the open on wall street. we'll be back very soon. [poof!] [clicks mouse] there's doughnuts in the conference room. there's doughnuts in the conference room. automatic discounts the moment you sign up. with the spark miles card from capital one, bjorn earns unlimited rewards for his small business. take these bags to room 12 please. [ garth ] bjorn's small business earns do

we're now one of the worst performers globally in the shanghai composite. there is some real justified jiters. when we go back to the gdp figures we had, second quarter gdp that were okay, they're only okay because they appeared to be a roguishly low gdp deflator. if the gdp deflator was anything like it's been over the last five or six quarters, that gdp figure wouldn't have come near 7.5%. it would have been near 6. so real concerns there among international investors. >> trying to match up balance sheets between hong kong and china and seeing what the trade was like. you see the discrepancies that have been there, this tells us the story about chinese gdp, that's how people look at it. what do you think is playing out? how slow is the china growth story? >> well, many ways of measuring the china growth story. one, you can look at the factor inputs, energy and railroad and all these sorts of things. the other way of looking at it is to see australian exports. unless the chinese are stockpiling vast amounts of iron ore and coal, you can check google earth

you had your own experience with all that didn't you didn't you spend all your money in shanghai more or less. that's why i'm going to spend it now. to give us book the most expensive hotels. but the most expensive restaurants. are terrible picture. i just like your joke. is a great artist. but i don't think it's a con man award. like the painting just trying to give anything to the person. i asked him to buy tea for the painting he seemed to understand. but then he went away. it's a tough job you have to take a risk just to get some food it's not difficult it's just not the way usually do things so how do you do. together. you have to plan it all in advance a friend so you ask me may the board you ask me to make a port that i made that i ask. for this where is my eighty. four port it was this i made it. it's for gifts not for free. sure you get used to people's attention very quickly the people around me usually help organize it all but nobody knows me so things are a bit different. i don't know what it means to escape from yourself quite the opposite i am trying to find myself and i

just to get by while travelling in china i went to shanghai i felt i could live there it was the moment the project actually started a russian girl living on the floor below me was going to leave. the one day i came to see her i'm noticed an easel there i was looking for one of the time. so i asked her to sell it to me but she didn't want to do that but it was a friend's gift apparently. that is why i offered to swap for it instead i gave her a painting in exchange for the easel it was my first barter so good when i got the idea to organize it as an art project which is your job. i started to get letters from each. one of them was from a couple that was going to get married and want to back kind of portrayed as a wedding present for themselves. but i had already left odessa so they're asked if i could do it over skype you know yes yes they told me they could give me all i need for my travel in return. so i asked if they could pay for the tickets from adesa to stumble they agreed and as a result we had a skype portrait session now and waiting on the tickets. if i decided to take annie as

the shanghai composite reversed early losses closing higher by .6%. chinese banks and property developers rebounded after the recent tumble. the nikkei 225 was the market lager ending lower by .25%. shares of softbank pulled back 1.6% despite getting the final approval from u.s. authorities for the sprint nextel takeover deal. the stock had gained over 80% year to date on hopes for the largest overseas acquisition in japan's corporate history. another standout loser was denshoot. they plan to issue $1.2 billion of new shares to help fund a uk acquisition. higher metals prices today. a jump of almost 7% today. and atlas iron surged up nearly 10%. back to you. >> thank you very much for that. >>> let me tell you what's coming up on today's show. as egypt swears in an interim leader, looks to new elections, we'll be live on the ground for a look at the post-morsi transition. and singapore's sovereign wealth fund is facing questions over exposure to chinese banks. we'll hear from the head of the markets group at 10:30 cet in the first on cnbc. and we cros

the shanghai gained 1% and up a stronger 2.3%. shares in hong kong, korea and australia reacted cautiously. the kospi and australia's asx 200 closed marginally in the green. local media reported the trial program may expand to london and singapore with a higher quota. the trading system may significantly boost the transaction volumes, therefore benefiting brokerages fee income. shares of gf securities and he everbright gained. china's tech space also got a lift up by beijing's recent plan to speed up the it technology space aiming to expand the size of the sector by 2015. internet giant tencent, shares gained 3.7% today so really outperforming the broader hang seng index. japan is set for a public holiday. samsung electronics reversed early weakness to end a tad high and automakers rebounded strongly with hyundai motors making gains. muted gains in the australian market today. the strength in banks were offset by weakness on some profk taking. >> sixuan, we'll catch you later. the vow to fight in the bastille speech days after los

the shares traded modestly higher today in shanghai. >>> glaxo smithkline says it is deeply concerned by corruption allegations in china. they have accused the british drugmaker of being the ring leader in a multimillion dollar bribery scandal saying it used agents to bribe doctors and officials for sales. it is cooperating with authorities and stopped using travel agencies identified in the investigation. glaxo shares today off half a percent in london. >>> in japan, the nikkei ended hi higher. let's get more, joining us from tokyo, sushiko. >> fuji heavy industries rose 1.7% today after the nikkei news reported that the firm's expected to report a record quarterly operating profit. it is posted to around $700 million operating profit for the april/june quarter, up 300% on the year. the strong profit is supported by solid sales overseas of new car models. may was a monthly record. as one of the major exporters in japan, the weaker yen lifted the company's privating profit by more than $200 million for the quarter. sales also grew in the domestic market as well. and cost cutting effor

the shanghai composite jumped nor m more than 2%. brokerage and banks extend their gains in the afternoon session as we see that founder securities surged over 8%. and property developers also among top gainers. china merchant s jumped nearly 9%. and among the actives in hong kong, jewelry shops outperformed. shell soared over almost 13% after importing over 60% surge in its q-1 revenue helped by the gold rush after the price of bullion plunged. consumer mood slipped in both japan and australia in june. index giant fast retailing waved on the nikkei 22 5 down 1.2%. in australia, retail chains were also broadly weaker. harvey norman down 2.4% today and surf ware company billabong plunged another over 10% falling yesterday's 16% tumble. back to you. >> all right. thank you for that. now, shares of burberry beat expectations with an 18% rise in retail revenue for the first quarter. they saw double digit growth where the latest collection received a warm welcome from rich chinese shoppers. burberry maintained fw eed guidr the year but wa

the shanghai composite g gained .2% today and wrapped up the month 1% higher. the hong kong market taiex and south korea under pressure today. in japan, hitachi shares got a boost, closing higher by nearly 3% in today's session after raising its first half profit outlook. batterymaker gs yuasa soared over 7% thanks to better than expected quarterly results. but taiwan's htc took a beating, down almost 7%. the smartphonemaker had little sign of a turn around anytime soon. in china, property developers were the top gainers today as the company's politburo sounded a positive tone yesterday about promoting healthy development of the property market. china merchant jumped more than 4% today and the other two smaller players, they surged up by 10%. back to you, ross. >> all right, sixuan, catch you later. >>> the fed is wrapping up its two-day meeting with a decision expected at 2:00 p.m. eastern. fed watchers will be looking for any clues on when central bank may start its tapering bond purchases, but they will stress any action, still conditional on the economy imp

the shanghai composite extended a three-day losing streak, down half a percent today, despite the pboc's comments to maintain prudent monetary policy. hong kong and south korea ended marginally in the green. and australia's asx 200 showed pockets of strength, on hopes that a possible call for a federal election could ease the country's political uncertainties. in china, authorities published a list of companies ordered to reduce overcapacity. among them, paper producers came under some pressure. chungming paper, down by 1% to 2% in today's session. but some bigentm rallied on hopes they won't benefit from the industry consolidation. and beijing's mini stimulus package will help boost demand. anhui conch gained by about 3%. nikon tumbled nearly 4%. and shipmaker had an operating loss for the june quarter. samsung electronics also lipped nearly 1%, despite posting a record q-2 profit. more on that with sherry in seoul. sherry? >> thanks so much for that. we have been warned of such slowdown in the growth of this smartphone market in recent weeks, right? this time coming directly from samsu

the shanghai composite enjoyed its best day in seven months, up 3.2%, rising hopes that beijing may introduce supported policies to boost the economy. hang seng in hong kong chocked up stunning gains of 2.6%. the money rates climbed to 3.8% after the pboc once again didn't conduct any open market operations. but that didn't seem to bother investors at all. and banking shares powered ahead with ping an and industrial up by 10%. and the sentiment lifted eight brokerage stocks to their daily upper limits. poly real estate jumped over 6% today after reporting a 35% rise in its first half earnings. also market chatter that authorities will lose finance policies for property firms. as for the region's exporters, japanese electronics stocks lost ground today as the yen gained strength after the boj decision and bernanke comments about keeping the qe continue also weakening the u.s. dollar. but foreign buying propped up south korean tech shares. samsung electronics jumped over 5% in today's session, extending a three-day winning streak. and i have to show you the extraordinary gains among australian

the shanghai composite jumped to almost 2% and the hang sang hong kong gained 2.3%. elsewhere, japan, south korea and australia, those shares all ended in positive territory. in china, as you can see from the first row here, banking shares made a strong rebound on both mainland and hong kong forces. local analysts suggest the interest rate reforms will have limbed impact on the short-term while lower interest rates will support growth in the real economy. the property sector which has a relatively high dependence on bank lendings also enjoyed the rally. china merchants gained almost 6%. and chinese railway stocks also chugged ahead on hopes of a supportive measures. cfr corporation gained over 8%. on to japan, mobile carrier softbank was the outperformer on the nikkei 225. soared by 5% after reports that it will raise the bet 35 million u.s. dollars to stock new smartphone hand sets. south korean technology shares also rallied ahead of earnings results. lg electronics gained almost 4% and samsung electronics rallied almost 3%. let me quickly show you gold miners. the

following yesterday's 3% surge of the shanghai composite led the decline in the region, down 1.6% today ahead of the key data due out next week. mainly banks lost ground. beijing has already been drafting plans for promoting interest rate liberalization and may soon scrap the floor for lending rates. markets fear this will bring more competition and squeeze bank net interest marriagens. gains on the market, tanking nearly 6% in today's session. q-3 operating profit came in worse than expected due to discounts and marketing expenses. goldman sachs cut the outlook for the financial year. the worst performers in south korea were hyundai and kia motors. shares plummeted about 5% to 6% in today's session on worries that their car sales may dip in china as more chinese cities may restrict new car purchases. and the australia market, the best performer for the week, gaining nearly 3% over the past five sessions. gold miners like newcrest, evolution and kings gate, they once again outperformed the broader market jumping to 9%. back to you, ross. >> sixuan, thanks for that. that's where we stand

shanghai index, though, did finish higher. inter-bank rates continue to moderate. sentiment of big manufacturers moves higher. first time it was positive since 2011. nikkei responds. hits a one-month high. in europe manufacturing pmi's, they clocked in better than preliminary reports first indicated. some strategists say, listen, don't expect the ecb to shift their monetary policy positions until their meetings on thursday. in a half hour you'll get the ism manufacturing consensus. looking for a rebound from 49 to 50.5. finally, let's talk techals. i was on the phone on the spx, katie says a short-term loan has been established. she is looking for positive follow-through, she says, in this holiday shortened week. guys, back to you. >> all right. thanks very much, josh lipton. talking about deals this morning. we did get one. it's tribune, and it continues an important trend that we've been highlighting here, which is some of the larger players in terms of station ownership getting even bigger, and benefitting as a result. actually, hadn't even had an opportunity to

china's shanghai composite finished in the red, down 1% despite very strong june fdi data. financial stocks let the losses while the country's finance minister said beijing is unlikely to launch any major fiscal stimulus this year, but willmake a greater effort to press ahead with reforms. in hong kong at the strength in coal and cement stocks helped hang seng end in positive territory. the top gainer was china shin with a shinhua, can we have the board, please? the stock surged 5% after posting a solid increase in revenue last month. and a gold jeweler higher by 6% thanks to a big jump in the same store sales in hong kong, macau and china in q 1. this come one week after they posted higher numbers after investors swept in to buy gold on the cheap. to australia, billiton shares up more than 2% today after posting a record production report. surf ware maker billabong surged more than 30% on news it has clinched a rescue package to settle its debt. back to you, karen. >> sixuan, thank you very much for that. >>> fed chairman ben bernanke goes before congress today to deliver

inventories of copper around the world, whether it's shanghai, the lme are at or near ten year highs. that's going to tend to weigh heavily upon the copper market. i'm a buyer of gold, a seller of copper and a spreader of one against the other. >> in terms of the short copper trade, is a slowing china integral to that part of the equation and therefore -- i believe you think that a slowing china would hit europe more so than the u.s. as a correlary trade short european equities or something in europe? >> the question of a weakening -- we have to remember when you talk about a weakening china is going to have a deleterious market upon copper prices generally. i wouldn't want to be a seller of european kwekties under any circumstance. anybody who has been short of european equities isn't feeling all that comfortable about life. there's a difference in being short of the copper market. look at the chart. it looks much worse than any equity market. >> if you expand that out though a little further to equities, i'm guessing, judging by how bullish you are on european equities you would be

fled up the fees are the images the world has been seeing from the streets of canada after the first shanghai for a shelter the day please. right . first street. and i were being put. on our reporters were very. instrumental. my brother in law. the boiling pot racial emotions run high apostle marco with mass protests and dozens of cities after the killing of a black teenager walks free. convicted to bailed but unbowed russian opposition activist alex saying they've all made awaits his appeal against a five year prison term for stealing one million dollars. egypt's begins reworking its constitution after another week of deadly strife between the packers and the opponents of the deposed islamist president mohamed morsi. and turkey allegedly led to israel use one of its military bases for a recent attack on syria that's according to our chief source but anchor of firmly denies that plane.

in fact, shanghai delivery of gold contracts is basically 50% of all the gold production year to date. so there is strong demand for the physical element. >> okay, so where do you see gold going, then? >> well, what i always look at are two factors, the fear trade which we often focus on here on negative interest rates and m monetizing at the debt. the other part is the love trade. it picks up steam around july and august and runs to the chinese new year. will it be as great as previous cycles? i don't think so because the gdp in china is flat. it usually has a very strong love trade dynamic to it. i remain bullish, but i instruct investors just have a 5% in gold and rebalance. >>> the u.s. dollar is down today, but it is up nearly 5% this year. is now the time to buy the dollar? let's ask managing director at bk asset management. is this king losing its crown or is it time to double down on it? >> i think it's a great time to go long dollars, mandy. i think we've had a nice little pullback, and even today while the dollar is down, you've seen some really significant reversals which t

the shanghai stock exchange at a whole has a further downside run to go. we're not finished with it. i wouldn't criticize the chinese authorities at well, doing the right thing, trying to reduce speculation in the property sector in the short term is the way to go, but if you are an looking for a three or six-month opportunity, it's negative. clearly the negatives that you're hearing about china or the equity markets i think you'll continue to hear, and on the listed equity market, it's very difficult to see anything positive that's taking place in the short term. the other aspect of this is that china is faced with the headwind that is coming from the reversal of the federal reserve policy, and to the extent there's a tapering of quantitative easing, it is going to affect all emerging markets and:exclusive. we've seen that in india and brazil, two currencies where the equities and currency markets have taken a big hit. overall the short term where there's very little to shelter from in the emerging markets, but then as you said to begin with, the u.s. dol

are being committed to in the asia pacific region as hong kong and shanghai. and the decision to reduce the corporate taxes in the forest to make this easier but again nobody is thinking seriously both to transfer and crush into the not sure. sure country and it's an idea it's a work in progress or you guys actually were not all make a subtle and all sure place. to. do this but we're not. we're not trying to perth various financial services in so holy in. our wall used to make so holy in the. in the three more secret i would give us the. place is clean for investments i wonder what japan will say about that i think then japan will start computer eating. even. islands and. pretty much a point of view not a political point of view. going because of the crew arlen's mean money. and trying to take quite away from russian well here's another graph let's take a look at that this crap actually shows that western european countries generate more offshore wealth than anyone else in the world pretty clear that you want so sure is down and out of existence right i mean i

i've been convinced of to in the asia pacific region as hong kong and shanghai. right now and the decision to reduce the corporate taxes in the forest to make this easier but again nobody's thinking seriously both to transferring crusher into the not sure and i'm sure sure country when it's an idea it's a work in progress or you guys actually well know all make especially in an offshore place. people try to. do this but we are not. real not trying to birthdates financial services in so highly in our our wall used to make so highly in the. in the three more secret i would give us the. place is clean for investments i wonder what japan will say about that i think then japan will start computer eating. even. islands and. from pretty much a point of view not a political point of view. going because of the creole islands means putting money in. and trying to take what he waves from from russia well here's another graph let's take a look at that this clip actually shows that western european countries generate more offshore wealth than anyone else in the world pretty c

the response, of course, still to those fed comments, giving a lift to the shanghai composite, up better than 3%. 2% for the hang seng. nikkei adding a little as well. given the strengthening of the yen, a sign of progress, a welcome sign, you could say. the european market, ftse 100, up .7. better than 1% for the xetra dax. >> you can read either one there. when i read this, they walked in feeling strong. and then within two days, going, no, i don't know about -- we can't -- the 85 billion -- what if we do -- none of them had any -- do they? >> i think they need to let the economy react. the economy is like a 12-year-old on a bike with training wheels. we can just -- >> you got a keynesian on steroids here. you think there is not enough ink and paper in the world. >> monetary policy has not stimulated the economies of europe or japan or the united states. >> she's glaring at you. >> i think it felt evident. it doesn't take much to look around the world and see who is being accommodative, in response to what conditions and what are the markets and economies doing in turn. >> will we ever

shanghai down 2.4%. in europe, though, you do see a lot of green arrows there as well the biggest gains coming from germany. the dax is up almost 2.4%. the footsy 100 is up by about 1%. we're kind of bouncing off of what happened on friday when we got that better-than-expected jobs report, that did send stocks higher on friday. ilt it fueled the tapering. doin joining us is dean baker. also, tony fratto, managing director of hamilton play strategies. tony, i was a little surprised when i read through some of your notes. it sound like you are worried the fed could pull the rug out from unthese markets too quickly. >> i have felt this for a while. i have been surprised about the rush to get into talking about the tapering. i have been saying this. i feel like if there is any risk of us, a lot of people talk about america is turning into japan because of what the fed is doing. i don't think it's a real parallel. one parallel i worry about is the choking off of, you know, organic growth, getting to organic g

asian equities and shanghai composite and copper which yesterday was a bit up in anticipation of this. the reason i am calling it is two-fold. first of all, china is coming out out of the blue after sending the signal for the first half of the year that it was okay with the slowing economy. want to see rebalancing and now it's saying, we're going for growth. that's catching people on the wrong side of the trade and raising questions about the long-term implications of this strategy and how weak china's growth is now. plenty of people talking about outright deflation and whether the economy screeched to a halt in the second quarter. if they go the stimulus route now, what are they going to do? more fixed investment. already 48% of the economy. consumption has not increased as a share of gdp. fallen since last year. as we start to see people come back to the china trade, the whole commodity complex as a result. is it a short term gain at the expense of a longer term more viable strategy. >> the ponzi scheme continues. >> and i also worry tomorrow's caterpillar. some sense that the capit

future of our country if we didn't pass this bill we could find london or frank for years down the road shanghai becoming the financial capital of the world. now the first guy we saw was mr dodd who put the dog in dodd frank he got that a little bit wrong he got that wrong jack reed would say today that he he regrets those words and mr schumer unfortunately because of this they have made singapore and london the financial capital of the world because with investment banks no no national borders and we talk about competitiveness what is it competitive that goldman sachs for example with its thirty two thousand employees has five thousand in london they are not american foreign same students they are london citizens paying the london payroll taxes this competitiveness is a feel good word that actually means exporting american jobs what it could also mean regulatory arbitrage not only between different countries but even in the states that we have them yes regulatory arbitrage is the same thing as when a teenager wants the car keys and mom won't say yes so they go to dad so if you don't like the ru

not much movement in shanghai or in hang seng. if you look at oil prices, we have been watching these so closely, hovering around $105. this morning, down by 79 cents to 104.70 for wti. the ten-year note is the other one worth watching, because this has been the tail wagging the dog. yield is 2.58%. it touched 2.6% yesterday. if you look at what is happening with the euro, the euro yesterday up for the fourth time in five sessions, versus the dollar. it touched its highest level since june 19th. this morning, it is trading higher once again. euro at 132.73. the dollar yen, the yen at 98.50. gold prices at least at this point are indicated down, just barely. down by 2.60. $1,326 an ounce. let's talk about starbucks which came in with numbers that sharply beat the street's expectations. howard schultz says it was the global coffee chain's best performance on record. joining us now to talk more about the numbers is r.j r.j. hovotni from morning star. these numbers are certainly something to crow about, the street likes what they're s

of our country if we didn't pass this bill we could find london or frankfurt or years down the road shanghai becoming the financial capital of the world. now that the first guy we saw was mr dodd who put the dog in dodd frank he got that a little bit wrong he got that wrong jack reed would say today that he he regrets those words and mr schumer unfortunately because of this they have made singapore and london the financial capital of the world because with investment banks no no national borders and we talk about competitiveness what is it competitive that goldman sachs for example with its thirty two thousand employees has five thousand in london they are not american foreign exchange students they are london citizens paying the london payroll taxes this competitiveness is a feel good word that actually means exporting american jobs but it could also mean regulatory arbitrage not only between different countries but even in the states that we have them right yes regulatory arbitrage is the same thing as when a teenager wants the car keys and mom won't say yes so they go to dad so if you don