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

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

one analyst says the shanghai composite is a good gauge of sentiment as the country sees more growth. >>> hsbc cut its gdp forecasts for the region. learn more about the bank's downgrade online. follow us on twitter @cnbcwex. political deadlock in egypt allowed violence to erupt. can a solution be found? for the latest after this break. [ male announcer ] it's time. time to have new experiences with a familiar keyboard. to update our status without opening an app. to have all our messages in one place. to browse... and share... faster than ever. ♪ it's time to do everything better than before. the new blackberry q10. . where will it send me... one call to hoveround and you'll be singing too! pick up the phone and call hoveround, the premier power chair. hoveround makes it easier than any other power chair. hoveround is more maneuverable to get you through the tightest doors and hallways. more reliable. hoveround employees build your chair, deliver your chair, and will service your chair for as long as you own your chair. most importantly, 9 out of 10 people got their hoveround for l

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 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

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

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 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 dipped below the key 2,000 level. weaker by 1.7% today. investors also worried that beijing's plan may prompt banks to tap the markets to raise the fund. as a result, banking shares in some of the property plays as can you see from the first row, they took a beating. but it was a sunny day for those solar panel makers as they rallied actually after the eu and china reached a trade deal over solar panel on terms favoring beijing. it surged up by 10%. in japan, nomura tumbled by about 5.7% today despite reporting a strong profit growth. this as markets are more concerned about declining trading volumes. and a stronger yen as ross just mentioned that it took a toll on exporters, especially automakers. mazda lost despite a strong profit outlook. and mitsubishi motors tanked 10%. no such worries for rivals hyundai. the south korean automaker has extended its 11-day winning streak, up another 2% after it reported strong earnings last week. and kia motors also ended marginally in the green. back to you. >> all right, thanks very much for that. we

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 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

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

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

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

the shanghai composite also in recovery mode. it finished flat today but added 1.4% on the week as liquidity fears subside. no such euphoria in south korea. shares of index giant samsung electronics dropped almost 4%. the company predicts a record q-2 earnings but misses analyst forecasts. in australia, crown gained 3% after local lawyers backed the plan to open the second casino in sydney. but its rival echo entertainment group slum pd over 5% today. also in the gaming space, a decent debut from casino operator makel legend in hong kong. the standout loser was china ro rongsheng industry. the country's largest ship builder expects a net loss for the first half this year, and reportedly has laid off 8,000 workers. it is also looking for help from governments and banks to renew its credit facilities. back to you. >> sixuan, thank you for that. >>> markets, trading fairly cautiously. we're up a quarter percent in the ftse, the ibex down slightly. cac fairly flat. bond markets, the reaction to what we saw from the ecb and the bank o

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

the shanghai composite tumbled 2.4% today. hang seng in hong kong lost 1.3%. banking shares bodiroadly weake. many think this will make the sector more competitive and could possibly hurt lenders' net interest margins. in japan shares of softbank had quite a volatile day of trade. rising as much at 1.7% before ending down by 3.4%. the turnaround really happened after s&p's downgrade of the stock by two notches. for the broader nikkei 225 also extended weakness in late trade. the index lost 1.4% today. meanwhile the region's resources shares also lost ground, atrackiatrack i -- attracting weaker commodity prices. china's largest gold miner tumbled almost 7% after profit warning. atlas iron and newcrest also took the brunt of the selling today. >> thank you for that. we'll catch up with you later. >>> we've been watching events, fast moving events in egypt. these are the latest shots of tahrir square. we're also getting -- we'll be out with the latest on that and reports of those deaths as well. tanks apparently still blocking the bridge. at the same time, tensi

almost 2% in shanghai. the nikkei down 3.3. do the math. that would get your attention. then in europe, they're all up. but not much. let's look at oil. the oil board, that's been stubbornly above 100, but coming down slightly, $104.53. the ten-year, i saw, was at 2.56, almost 2.56. dollar n , if we're going to europe, it's got to come down. the euro, slm 1.43. gold on a little bit of a run. i'm thinking about buying some. >> really? >> because of man q. i read man q.'s piece in "the new york times" over the weekend. he mentioned buffett and all the people that don't like it. just because it's noncorrelated with anything else. he says 2% of your portfolio could be in gold. >> are you going to buy it anyway? >> no, no, no, no, no. >> store it. >> yes. if i could find a place to buy them where i didn't have to buy a big -- not a lot of them, but i'd maybe buy a few of them in case i need to bribe someone in the future for something. >> always thinking. >> for something. i'm not sure what. but if paper money is ever useless. it could be food. it could be passing -- you know

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

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

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 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 markets are all ending higher. the nikkei actually closing at its highest level in a month. you see it up 1 and a quarter percent. european shares are higher as investors digest a slew of numbers coming in, the including the latest figures on manufacturing and employment, investors are focusing on the manufactured pmi. again, if you take a look at the european markets, you will see the dax is up .3 of a percent. and the kak is up by .7 of a percent after closing at its worst quarterly drop, gold is bouncing back this morning. it's helped in parts by the san francisco fed president john williams. on friday, he said he is backing off his view the fed should start cutting stimulus this summer. you are right, backtracking on all of this stuff. gold is up by about $15.16. back to $1,042 an ounce, gold is taking a toll on investors in david einhorn's green light capitals. that fund was down nearly 12% in june. it's down about 20% for the year. >> here in the united states, despite shortened week, on once, adp is out with

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

now, the developer is sending a team to shanghai and beijing to sell even more units. we'll see whether there is enough new chinese wealth to fill all 96 floors. back to you, carl. >> it's interesting, robert. i have seen a couple notes looking at new york real estate prices and what they have done. the argument is they can't continue to go as quickly as they have because of smaller numbers of international buyers, fewer cash deals, all of that. >> that's the one hand. ornd, you just had richard smith on making the point that inventories are very tight, demand is so strong. so the question is has the local buyer market remained so strong that they can pick up the slack from these foreign buyers? we'll see. we could see this foreign buying taper, but the market now could be strong enough and tight enough it's okay without them. >> a different kind of taper to think about. robert frank, thanks very much. they're not disconnected. the fact that the fed is tapering, that u.s. financial conditions have tightened, people are pulling money out of emerging markets, all that me

that's giving a boost to the stock markets in hong kong and shanghai, though a different story for the japan benchmark index after hitting a new six week high briefly, the nikkei closing down 56 points following trade results from china. also fed minutes will be on the minds of investors this morning. minutes from the latest policy meeting out at 2:00 p.m. eastern. traders looking for any further clues on when the fed will begin to scale its bond buying program back. and we'll have more coming up on that with chief economist and managing director of global research. checking europe, right now red arrows across the board there, as well. cac off, ftse off, and the dax off. but not horrible. and brent pushing above $108 as china's imports of crude fell 7.4 7.4% from the previous month. the spread between brent and west texas intermediate narrowing slightly making wti more attractive to investors. >> blackberry is reportedly going to cut more jobs. "wall street journal" says the new cuts will come at middle management levels in the sales and support divisions. that would be on top of 5,000

. >> surprisingly it is a no brain inner beijing and shanghais that you do that but it has been somewhat surprising that in the second and third tier markets of course you have less penetration of imax theaters, but seems to be holding up well there, too. >> how big are you ultimately going to get and where to next? >> the market we said about 450. if you add the theaters, we put in, we announced today those opened in backlog that gets us to around 275, 280, something like that. we're about two-thirds through. however, as the demographic and the income levels keeps going up, i expect that will go up. other markets that we have been going to that have been doing very well recently is western europe we were a little late to the game and the reason was because it had an established infrastructure and now we're building that out nicely. i think we're starting to see -- >> building out in western europe now. >> yeah. i think the old movie infrastructure was such it was hard to put in imax theaters in the markets and now with so limited growth in europe, i think the idea of taking an existing

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

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

at here, the hang seng index overnight, adding a couple of gains to trade, but then it ends there, shanghai composite off by 1.5%. the nikkei 225 off by approximately 1.5% as well. really taking a lot of stride from the earnings momentum or lack of earnings momentum. big state side did disappoint in the overnight session. you saw google and microsoft both disappointing. here in europe, of course, we're looking at a primarily red start to the session. we ended on a higher note yesterday, when you and i spoke at the european close last night, but off by some .4% at the moment. we still have a whole session to go. so hang in there. we have got our main european equity markets trading lower, in the region of half a percent, a little less the ftse 100, off by .4 percentage point. currency, the yen, nicholas making a good point, the yen has been all over the place since may, although some still would argue we are looking at a yen downtrend. the eurodollar flat to a little higher. a lot of people looking very closely at what the outcome is of the g-20 session, of course, and whether or not we get

half a percent in shanghai. in europe, you will see at this point the dax is up by over 1% as is the cac in france. ftse up by about 0.8%. we do have plenty of earnings news thorn. boeing, earnings $1.67 a share. compared to street estimates of $1.58.thorn. boeing, earnings $1.67 a share. compared to street estimates of $1.58.horn. boeing, earnings $1.67 a share. compared to street estimates of $1.58.orn. boeing, earnings $1.67 a share. compared to street estimates of $1.58.rn. boeing, earnings $1.67 a share. compared to street estimates of $1.58.n. boeing, earnings $1.67 a share. compared to street estimates of $1.58.. boeing, earnings $1.67 a share. compared to street estimates of $1.58.boeing, earnings $1.67 a . compared to street estimates of $1.58.. boeing, earnings $1.67 a share. compared to street estimates of $1.58. also some strong numbers for ford in the second quarter. company posted earnings of 45 cents a share. revenue also above consensus. and that stock up by about 3.25%. pepsi came in with earnin

nikkei up by about 15 points, shanghai com positiposite down . and in europe, things are bury bunchidge there, as well. modest advances. >> today is about the intersection of policy and investing and economics. and no one better equipped than david mccormick, bridge water associates co-president and member of the management committee. he was treasury undersecretary for international affairs during the bush administration. brid bridgewater has more than $150 billion under management and the world's largest hedge fund. thanks for coming in. so we'll hear a couple things in the next frankly half hour. we'll hear from jack lew on dodd-frank and i want to get your views on that but we're going to get bernanke's testimony at 8:30. what are you expecting to hear? >> i think what you're likely to hear is what you've been hearing. if you would step back and said how would we have expected if this was managed well the qe process managed well, how would we sxrekts this had to go. >> that implies you don't think it's being managed well. >> no, i do. i think

shanghai stocks, you think they'd be down, no, up 2%. bad news is good news. now they're speculating that the people's bank of china is going to cut interest rates and they're going to do stimulus, so chinese stocks had the best day in a long time up about 2%. i think that was the best day since march overall here. elsewhere, let me move on. if you think there's problems with money trying to find a home, there's plenty of money out there. did you see this announcement? kkr announcing they're going to start a new $6 billion asian fund. the asian markets have underperformed dramatically this year. japan might be the one exception out there. but there's no shortage of money trying to go into asia. they open an office last year in singapore, specifically to look at the possibility of adding into their investments there and that apparently is now happening. obviously the story is buy into consumer growth. but as you see in china, that consumer growth is getting a little bit harder to find here. there's been a lot of speculation about whether higher interest rates a

parents from china, because there was a large number of students and some teachers on that flight from shanghai in particular, that those families are actually heading here to san francisco, that many of them have left china and that the consulate is helping to get them here and get them in touch with their family members who were victims of this crash. >> and sara, we're told one of the girls killed may have survived the actual crash and then it was possible that something else happened. please tell us what the latest is on that. >> i have never heard this before, but one of the things that we did hear from fire officials today is that they do believe that one of the emergency vehicles came out trying to save people, trying to save lives ended up coming into contact, their vehicle, with one of the victims, one of the victims you mentioned just now, one of the 16-year-old students who died. now the coroner is trying to figure out how that person died, whether she died from the actual plane crash, an injury she sustained from the crash or whether she was killed after being run over. jake? >> sar

there are still questions about calling back to shanghai and getting a connection for them. they lost everything from clothes to their telephones. the staff here is helping them make that connection as we speak because it was too early a fewer hours ago to call back to shanghai. now is the appropriate time to make that call to get hold of their family back in shanghai. someone can answer the phone there in the wee hours of the morning and they are awakening hopefully to a call from a family connection they have wanted to hear from all these hours. these are the stories that will come out the next few days as we get all of the patients a little more stabilized. as rachel said earlier, she will give you updates as they occur. i am just so happy to see so much of our life-saving expertise at work on an hourly basis here at the hospital. i'm sure this story repeats itself with all the other hospitals whether they are at st. francis or down at stanford. this incredible reaction of volunteers and doctors and surgeons coming to save these people's lives and to prolong and make sure

she's from shanghai and she talked about what it was like inside the plane. she also mentioned her 4-year-old son dissustain a broken left leg, but she was able to get out of the plane miraculously in a huge hole that she was able to carry her son and some of her bags out of the plane to get to safety. >> it sounds as though you were very calm throughout this. were you calm? >> sorry? >> were you scared at all? >> i had no time to scare. i had five family member in hospital. i needed time to take care of them. but yesterday night when i was in dream, yes, i was scared. i had no time to think. >> what kind of injuries did your son have? >> broke his left leg. >> how difficult was to get off the plane? >> not very difficult because we sit near the big hole in the plane tail. it's broken, yes. it's a big hole. and the passengers near the plane tail just walk out from this hole. >> you can describe the kind of passengers in the back of the plane in was it a group of high school students? >> yes, we had group passengers. i also see korean passengers because i sit

. >> we have learned several students were teenagers from a camp in shanghai. >> nationalities don't matter in a tragedy like this one. bird rah, thank you very much for sharing the details from your father. we have more details about this tragedy in san francisco. we know that two people have been killed and several have been injured. we'll go to sara sidener outside a hospital in france right after the break so stay with us. more of our special sunday continues on "new day sunday." [ male announcer ] this is bob, a regular guy with an irregular heartbeat. the usual, bob? not today. [ male announcer ] bob has afib: atrial fibrillation not caused by a heart valve problem, a condition that puts him at greater risk for a stroke. [ gps ] turn left. i don't think so. [ male announcer ] for years, bob took warfarin, and made a monthly trip to the clinic to get his blood tested. but not anymore. bob's doctor recommended a different option: once-a-day xarelto®. xarelto® is the first and only once-a-day prescription blood thinner for patients with afib not caused by a heart valve problem,

with this flight starting in shanghai, thank you for that update there. and an important bit of news there, south korean officials saying, the ntsb investigators already continuing to stay on top of that. we will keep you updated and we will look at the other majorer stories in the world today including the ongoing crisis in egypt. the supporters of morsi want him returned to power. the great outdoors... ...and a great deal. thanks to dad. nope eeeeh... oh, guys let's leave the deals to hotels.com. ooh that one! nice. got it! oh my gosh this is so cool... awesome! perfect! yep, and no angry bears. the perfect place is on sale now. up to 40% off. only at hotels.com to sha-cool. get it? [ male announcer ] new gold bond powder spray. cool, dry, no mess. stay cool with gold bond. to the right of the screen, live pictures from san francisco international airport as we update you on the breaking news, the flight came in for the landing right there, something went wrong. witnesses reported the tail of the plane clipping the edge of the run way. it spun around an

at san francisco international airport. 307 passengers and crew aboard that flight which started in shanghai, connected in seoul and landed in san francisco. 182 people were taken to area hospitals with injuries ranging from critical to minor. and two 16-year-old girls were killed. the plane was coming in dangerously low and clipped a sea wall and shiring off its tale and skidding to a stop and catching on fire. >> it sounded like we were about to land. the nose of the plane goes up a little bit. and we start hitting, hitting hard. and then we felt like we were going up again. that's why i said we felt like -- he was going to pull one of those miss landing and go back up. and it did not happen. if we flipped, none of us would be here to talk about it. >> an official investigation will take months, if not years. we want to go to cnn's miguel marquez. what do we now know pending the investigation of the flight recorder and other things, what do we know that can be considered facts that will contribute to our understanding? >> reporter: a couple of important data points. passengers on the plane

the flight actually originated in shanghai which is why you have so many chinese onboard. 171 of those onboard were from china. 77 south koreans. and 61 u.s. citizens. it left here yesterday afternoon. it's a ten-hour direct flight. and just had those problems on landing. but i think people here will be extremely relieved by the news that however terrible any deaths are, it's not worse when you look at those pictures, don. >> thank you. still very tragic, obviously. as i said, if anyone loses their life. yes, it could have been, as a cliche says, diana, it could have been much worse. thank you very much for that. just updating, as diana said, 291 people onboard. 61 of the 291 americans. 77 south korean. 141 chinese. and one japanese. we'll get back to diana. if we get any more information coming out of seoul. i want to go now to yin kong on the line with me. her brother-in-law was a passenger on asiana flight 214. so how is he doing? >> he's doing okay. he has a little injury in his forehead, and he's a bit injured. his leg. and his arm feels hurt. he's in the hospital. >> okay. you sa

. >> and flight 214 originated in shanghai before stopping in seoul, korea, the home base for asiana airlines. from there, a scheduled nonstop flight to san francisco. >> diana is in san francisco. what do we know from the officials there, either from the government or asiana airlines? >> reporter: well, asiana airlines, the ceo has given a press conference talking about what he knows. he says he doesn't think this was engine failure. this was one of their newer planes bought in 2006, this 777, and obviously, we've heard also from transport officials here that it would be easy to locate the black box, seeing as this plane crashed on the runway, but it may take as long as two years to actually fathom out what the cause is, and there are a team of korean investigators on route to san francisco right now to help the ntsb in their investigation. the ceo really just an abject apology to the people involved. let's just take a listen to what he said. >> translator: i am very sorry to worry families of passengers as well as our people. i bow my head in apology. >> reporter: he said that the

able to turn down the air-conditioning on yourself when you're downtown, maybe there is a teenager in shanghai during the same thing. grideb has made the extremely vulnerable to hacking and to destruction from the cyber-effects. that is not all. so therery century or is an electromagnetic pulse that is called an ejection from the sun. that is much larger than the ofmal solar flares, millions times larger. it has been over a hundred years since we last had one of these but i think most people who are -- studying these issues are definitely in agreement that our electric grid could be severely damaged and to the point of destruction by a single seller event of that type and we have not decided since we have not had one of these since the 1880's. we have not designed the grid in such a way as to withstand something like that. to make it even all it'll more unpleasant, sorry, there is another way to create an electromagnetic pulse of that sort and that would be with a nuclear detonation but it does not need to be a destination carried by a weapon that has any accuracy of all or shooting at a targe

s a tragedy on so some people i mentioned schumer, when he went to shanghai and had conversations about china, it was like he was talking to a different man. find anybody more reasonable and amiable. full of in washington, fire. >> he was the head of the young democrats. college editor of the paper. we had certain tasks. area this point, the one where i think a troubled u.s. now most focused is threat.a china has sort of state-sponsored commercial espionage. view? your talkhad the opportunity to with a person in the fbi who's one of the people in charge of the warfare. again, cyberwarfare. made said to him, he just t -- wasn't that long, about the terrible threat with cyberwarfare. i asked him -- what i asked him i said, isn't it true that -- oh, don't worry. i've proven that. but we don't talk about that. and -- and i agree with that. and the people i talked with ast week made the same point too. i think the point one, the i don't think the u.s. used a state or cybercommercial end. other may be off of the threat. it's a cyberattack. it's something with confidence-building measures and

when you went to shanghai, conversations in shanghai about china. it was like you were talking to a different man. he could not find anybody more reasonable. but back, the head of young democrats could sell was the editor. set on a certain path. and just wanted this point, the one area where i think the u.s. opinion is now most focused is the cyber threat, where china does seem to be different from others and having state-sponsored commercial espionage. what is your view of that? >> i had the average into the to talk with the person in the fbi who is one of the people in charge of cyber warfare and against cyber warfare. i said to a.m. -- he just made a talk about the terrible threat an influence on several warfare, many in china. i asked him, isn't it true that we are pretty get that to. hello, where the best. but we don't talk about that. >> i agree with that. people last week made that same point. i think one of the differences -- i don't think the u.s. uses state, cyber, or commercial ends. that seems to be china's distinctive traits. three cybe

so at that time lucky enough shanghai had a exhibition called french impressionism. i went there and i thought if i couldn't copy michelangelo i can copy vincent van gogh. i come back and painted and my mother said she saw with these paintings, i applied to school of artists in chicago. and they thought i had potential and then -- >> you basically lied about your english, right? or misrepresented. >> well, i couldn't fill out the application form. first my name and i didn't have english name. i, i thought neighborhood, a wise man, he said you should name yourself american name angel. so i printed out angel. and many years later when my daughter was 11 years old i gave her the application form as, don't ever forget where your mom's come from. and i come and my daughter look at the name of anchee. angel, she says, mom, that is not angel. that is angle. [laughter] next line was sex. i consult my chinese english dictionary, 1970 version. there is no explanation on sex. so i did not know how to fill out male or female. i didn't know which one to circle. the rest, i just w

so for some people when they went to shanghai the had the conversations. you couldn't find anybody more reasonable and so on. but back in washington. >> i was the editor of the college paper so we had a certain tasks. >> the one area where the opinion is now the most focused is the cyber threat where they seem to be different from other states sponsored espionage. what is your view of that? >> i had the opportunity to talk with a person in the fbi who was one of the people in charge of the cyber warfare. and i said to him there is an influence on silo warfare meaning from china. so afterwards i said is it true [inaudible] [laughter] but we don't talk about that. >> i agree. people made that same point, too. i don't think the u.s. uses the state cyber for the commercial ends. it seems to be the distinctive trade. they used the nuclear weapons and the soviet union with confidence-building measures and all that. let me ask you different -- >> we are just having the two sides. the chinese -- last week the falafel of the response was the sort of thing that we n

when he went to shanghai, had conversations in shanghai about china, it was like you were talking to a different man. you couldn't find anybody more reasonable and amiable and so on. but back in washington, full of fire. >> he was the head of young democrats in college. i was editor of a college paper. we were each set on a certain path years ahead. just on this point the one area where i think a elite level u.s. opinion is now most focused and suspicion of china is the cyber threat where china does seem to be different from others having sort of state-sponsored commercial espionage. what is your view of that? >> i had the opportunity to talk with person in the fbi who is one of the people in charge of cyber warfare and, against cyber warfare. and i said to him, he just made a talk to a club i belong to about the terrible threat and influence of cyber warfare mainly from china. so i asked him afterwards, i said, isn't it true we're pretty good at that stuff too? he said, oh, don't worry about us. we're the best. [laughter] we don't talk about that. and -- >> i agree with that and the