Pimco woes. The death toll from turkeys mine explosion rises to 205. The countrys Energy Minister warns it could be the countrys worst incident of its kind. Youre watching worldwide exchange, bringing you Business News from around the globe. Good morning to cnbcs worldwide exchange, tragic news out of turkey this morning. Well be getting the latest update on that. Meanwhile, plenty of other Corporate News were following this morning. Lets kick off with sony. Its recorded its sixth annual loss in seven years. The company says it must bite the bullet on restructuring as it tries to turn around its failing electronics division. Shares this morning in frankfurt are lower. Weve seen losses of around 2 , 3 . Joining us with his thoughts is managing director and head ofation research at pellham smithers. What is sonys fundamental problem. Theyre still making hardware electronics. Until they can work out a way of creating an environment in which that is profitable, theyre in trouble. Others are making hardware electronics. Apple by creating a Software Environment where you spend money to download games, video, music, samsung by creating a video and Semiconductor Chip business that goes into it to make money. The problem with sony, i think as far as investors are concerned they fear that theyre so busy casting off bits and pieces that perhaps dont work that they dont have a longterm strategy. We have the strategy update on may 22nd. Is that going to give us anything new . Theyve been restructuring for quite a while. Probably 15 years it seems like, yes. They have been having to sell off the bits that are good to fund the restructuring costs. Theyve been ending up with one or two areas which are quite profitable, high profile, like music and movies. These are not businesses that will generate billions of profit. We go to the imaging, the gaming business. Can we assume as we look forward now, even those businesses will be profitable for them . It goes back to the point you originally made, making the things they think can work work. This is it. If you look at the forecast for this year, at an operational level, they officially expect to make money from cameras, from mobiles and from televisions. Now, theyve never achieved all three of those together. So its going to be impressive. What should be noted about these forecasts that come up with, there appears to be about 100 billion yen, 1 billion in restructuring cost which is are nonallocated. This is the wiggle room that hes trying to put into his numbers so that as the year goes on, having set expectations so low, he can then beat them. But that assumes, of course, all these other areas where these forecasting profits dont disappoint. Weve seen a lot of companies lowballing forecasts. How does this compare relative to what weve seen . I thought theyd low ball about 180 billion. Its 40 billion below that. Its quite a gutsy forecast, because hes going to have a miserable shareholders meeting, period, in june. You know hes ready for that . I dont think he is. Hes seen it before but this time around, he has no time left. If hes recording a net loss come this time next year, i cant see him 50 million smartphones they expect to sell. This year. Theres a distribution issue with them. Their latest model is probably the best android smartphone on the market. If you wanted to buy really . Yes, its fantastic, screen, picture, everything. Plus you get access to all sony video and stuff like that. Its a really nice hand set but they really only sell it here and in japan. Sonys distribution has been destroyed. Theyre hardly anywhere in the states, most of asia and china theyre nowhere. These forecasts have them trying to break into some of the other markets. That is a shame. One place where they have an excellent product and they cant get it to market. The thing is, they have several excellent projects. The ps4 is really good if youre into gaming. In the professional world they have fantastic cameras for cinemas and stuff like that, against all of that they have all of this mediocre stuff, secondtier mass market stuff that loses manage. Thanks for joining us this morning. We have some latest news coming out of Glaxo Smithkline this morning, concerning allegations of corruption against the former head of their Chinese Business and a couple of associates. We take allegations being raised in china very seriously, says gl Glaxo Smithkline. More on that to come a little bit later. Outflows from pimco have dented First Quarter profits at the Asset Division of allianz. Annetta is in frankfurt. The cfa playing down the issues that theyve had at pimco. How much of this do you think is to do with concern about the management of pimco itself in order of the rotation . What im hearing from allianz, theyre quite comfortable with the situation theyre in right now. There was a shock to the management. What happened at their top management at pimco. Right now they have a new Management Team in place. Of course, the outflows are not great. Looking at the sheer numbers, only judged by asset undermanagement from third party, that 21. 6 or 21. Billion figure makes up 2 of those assets on the management from third parties. But perhaps take a listen as well, what the cfo of allianz had to say on that question whether its down to management problems or whether its general market trend that the former cash cow is having a little bit of a tough time right now. I think the press makes it much bigger than it really is. And our outflows, i think, there are two points to consider. One, compared to q4 where we had to really some real outflows, its reducing, i trust half of what we have seen in q4 which supports my story. And then additionally, you should really look at all the large competitors in the u. S. Market actively managed fixed income has seen in general outflows. The fixed income market is small, also on the funds have seen the inflows. I think there is certainly a change in what people like. Let me also bring you an overview of the general operational situation of allianz. They had a record quarter in terms of revenues. The best in the countrys history. Pc, property and casualty business is doing really good, operating profit there is up by 13 . Life and Health Insurance also is rather flat lining. But still positive. They had a huge surge in premium income in the United States in their Life Insurance business. That is quite surprising. But actually mirroring what were hearing from a lot of german companies, that the u. S. Business is doing really well. In terms of outlook, theyre restating their outlook for 2014. Theyre quite confident in meeting their goals. Thanks for that. Were just an hour and ten minutes into the trading day here in europe. Weighted to the downside this morning, decliners outpacing advancers by a ratio of 63. This is after gains yesterday, the ftse 100 up 20 points, the dax up 0. 5 . The dax was getting close to record highs. Its fairly flat at the moment. The ftse is off 0. 25 , down 0. 2 the cac current, the ftse mib off 0. 5 as well. We hit a yield of 2. 6 during the session yesterday and retail sales came out below forecasts, barely up in april. We saw a decline in receipts for furniture, electronics, appliances, retailers as well. Treasury yields as a result back down it aiel of 2. 59 , not far away from the threemonth low of theyearold of 2. 57, nonfarm payroll report as well. Gilt yields as well, 10 30 london time. About an hour and 20 minutes we get the bank of england inflationary report coming out. Are we going to get a slightly more hawkish bank on its forecast . Those expectations have seen sterling continue to rise. Today against the dollar, moving on, sterling, not near the here we go. 1. 6863 is where we stand at the moment. Up to near 1. 70. The real big mover, of course, has been euro, continue tos to decline. Down at a fresh 16month low. We continue to wonder whats going to happen with the ecb. And the euro dollar, 1. 3707 at the moment. Weve seen three big figure moves for euro dollar in the last three sessions as well. Dollar yen, very much in the ranges at 1. 02. On that note, lets find out whats happened in asia today. Weve spoken about sony, of course. What about the rest of the markets and the stocks there . Sri is with us out of singapore. Pe low. Very good morning to you. We saw another record close on wall street overnight. As you mentioned, the currencies are very much in focus, dollar yen still seems to be on the offensive. 101. 50, 101 seems to be the lien in the sand in terms of mather support levels. Interestingly, weve also seen euro yen on the defensive. We see the move lower below 1. 40. That could hurt as some of the export stocks that have a strong footprint relate to europe. Watch for further yen appreciation. If it does happen, i could put those stocks on the defensive, those stocks correlated to the story in europe. Elsewhere, i do want to talk about the politics. Because were seeing strong gains in the jakarta composite. Thats down to the election. Now, president ial election in july, i should say. President ial hopeful has secured the support of the countrys second largest political party, so that boosts his chances in the july election. Remember, well be getting the final count, the final tally and the official numbers in india at the end of the week on friday as cnbc will be on the ground reporting live from the indian capital at the end of the week. I think the critical point is this, the exit polls have been wrong in the past. They were wrong in 2004 and 2009. If mr. Modi fails to secure anything more than 230 or 240, which is the best case outcome for the markets, if he does fall short, then we could see further giveback for the sensex. Right now it seems to be profit taking from the highs weve seen. Ross, back to you. Thanks for that, sri. Good stuff. Catch you later. The death toll from turkeys coal mine explosion has risen to 205. The Energy Minister warned that the incident could turn out to be the worst mining disaster the countrys seen. Youre looking at live pictures in turkey. Emergency crews were able to evacuate over 360 miners at the time of the blast. The countrys worst mining disaster was back in 92. Well keep you updated as that story develops. Tragedy. Also to come on todays show, facebook founder Zuck Zuckerberg turns 30. Hes already worth an estimated 26. 6 billion. Is that all . Well speak to wall street journal best seller to discuss his business success. Wonder if he wants to come live in london. Whoever said art is a poor mans trade, art auction christies broke records last night. Phone out how many millions the new york auction house made. Plus, all systems go. Forget formula one. Apparently today its all about formula e. Well find out how the new racing startup aattracting investment from Richard Branson and even leonardo dicaprio. [ female announcer ] theres a gap out there. Thats keeping you from the healthcare you deserve. But if healthcare changes, if it becomes simpler. If frustration and paperwork decrease. If grandparents get to live at home instead of in a home. The gap begins to close. So lets simplify things. Lets close the gap between people and care. Its all about latency. About speeds and feeds. Its all about how fast does it run. I often sit with enterprises who ask me about how Mission Critical and hows the performance of the cloud. And i tell them, if you can maker gamers happy, you can make anybody happy. Youre watching worldwide exchange. Uk drug giant gsk released a statement after chinese authorities accused an employee of the firm of bribing doctors. Glaxo says it takes the allegations very seriously and that they are deeply concerned to the company and country to its values. Gsk added we want to reach a resolution that will enable the country make an important contribution. Eunice is with us. Can gsk draw a line after this issue or are there likely to be further ref layings . Its difficult to say at this point. A lot of people were very surprised by the results of this investigation because of the fact that the company had been cooperative with this investigation and even today at that briefing of the Public Security ministry, one of the officials said that gsk had a responsible attitude throughout this investigation. So people are very surprised and wondering just that very question. How, what we know so far is that the Chinese Police have charged gsk staffers with bribery. They said at the conclusion of this tenmonth long investigation that they found that gsk sales staff bribed hospitals as well as doctors in helping to raise revenues for the company in the hundreds of millions of dollars. They specifically had identified the former china head, a British National named mark riley. They said riley ordered staffers to commit bribery in order to try to help the Company Reach high sales targets. Whats also been unsettling to many foreign Business People here is the fact that throughout today, we have been watching some of the chinese gsk staffers on tv, in their orange jump suits admitting to the crimes and telling everybody here exactly how they conducted these bribes. In fact, there is one gsk legal staffer who specifically accused riley of ordering hr and finance directors of destroying evidence during a Crisis Management campaign. So you could imagine how unsettling this is for many foreign Business People here, especially people who are very much wanting to keep in touch with compliance in this country. Eunice, as bad as this is for gsk, i fail to believe, if its true, they wont necessarily be the only big pharma Firm Operating in china thats done this, too. Do you believe gsk is being made an example of here . They are the only company right now thats being investigated, arent they . It does appear they are being made an example of here. But we dont know whether this will be a oneoff or if its going to become a widespread campaign. We do know that the Health Care System has been heavily criticized for having a very corrupt system, because of the way that the finances work in chinas Health Care System where the hospitals dont have a lot of funding. They rely heavily on the markups of drugs and doctors are very poorly paid in this country. It leads to this type of these types of conditions that would allow for this unsavory type of behavior. Now, what the next step is for gsk and for this entire case is that we know that the case has now moved to the prosecutors and the executives involved, not only riley but also the chinese executives will now be officially charge d, later face trial and they could face jail time. Were told the charges involved could mean jail time for life. As of right now, mark riley, according to the Public Security ministry is still in china and the British Embassy confirmed they are offering Counselor Services to him and are in regular touch with him as well. Eunice, thanks so much for that. Katherine boyle joins us on set to discuss this more. We dont know how broad this is going to be. If in fact gsk is guilt of doing these things, there will be other big pharma involved, too. There was a lot of focus whenever the story first emerged on the particular travel agency that appears to have been used to funnel some of the payments through. Thats a travel agency that was used by a lot of big pharmaceutical companies, novartis, roche, people like that. Important to stress, no investigation there yet. Novartis undertook their own internal investigation. This is a huge Health Care System that every Big Pharma Company has been trying to get into in the past few years. Its potentially going to overtake the u. S. For the biggest market for health care at some point. Theyre are a lot of companies trying to get in there and using various means to get in. Meanwhile, we have a second day of hearings today into pfizer and astrazeneca. This time, theyre speaking before the sans and te scienc technology. Well see things like if astrazeneca is taken over, whether some of its really important, potentially lifesaving treatments might face delay in getting to market. Thats something that astrazeneca chief executive was very keen to stress yesterday. I spoke to him after the hear. He was really keen to stress that these the disruption caused by m a and potentially people getting fired. Theres an issue in terms of culture as well. It would be interesting to see if pfizer moves in whether they try to impose a pfizer culture on astrazeneca researchers. These are individuals and human beings. If they feel like theyre not being treated right, they walk out the door. That disrupts your research program. One of the points about pfizer in particular, it hasnt focused that much on research and development. Its bought in a lot of r d, so has astrazeneca to be fair. There are still a lot of big pharmaceutical companies. If you look at, for example, i was read a note from citi, laying out some of the key milestones, astrazeneca has two pages, pfizer has one. That suggests like just how much is coming in the pipeline. Very quickly, very quick line an how you think ian read dealt with that yesterday. I think that he dealt with it as well as he could within what hes allowed to say under Takeover Panel legislations. He definitely came across as being potentially touchy under fire, which may not have helped his case. If youre a betting man, id go my guess is no better than anybody elses. Id say this isnt going to happen. Really . At the end of the day do you think theyll come back with a better offer. Theyll come back with a better offer. I dont know that the uk Pension Funds, if it was cash, they might. I dont know that Pension Funds want to stay pfizer paper. There is always a price for everything at which it might shift. Internet firms have come under pressure to remove sensitive personal information from the internet after a ruling by a court. The european justice upheld a request by a man that said a search brought up a newspaper article from 1998. Citizens will have be able to their information deleted in forcing the right to be forgotten. We now get all these Search Engines and searches, a flood of requests to say can you take this post down about me or delete that information. Not quite as simple as that. They still have to go to their individual Data Protection agency in that country. And they have to ball and the right of privacy. If he asked for the article to be taken down. It was about his order being repossessed to meet debts. They said absolutely not. The data was right at the time. From a personal standpoint, is there stuff out there that you dont want out there . But pictures on facebook, i look terrible in that picture ten years ago, it no longer reflects the way i look. I want it taken off. Where do you draw the line here . Exactly. Im back to you can no longer lack online to judge your future employee. Talking about social networks, time for status update. Mark zuckerberg turns 30 today. Is he still only 30 . Ten years from the launch of the social networking site that made his name and estimated wealth. Du he still owns 29 of the company. 1. 23 billion active users and counting, facebook is still growing. So we want to know if you were Mark Zuckerberg, what would your birthday wish be . Let us no he. Get in touch with us. Email us worldwide cnbc. Com. What would you buy billionaire mark zum ckerberg for his birthday . I wonder if that picture is on our website, whether hell be asking for that picture to be erased on some google link. Not loving it. Still to come on the show, did the uks Unemployment Rate fall to a fiveyear low on q1 . Stay tuned as we break down the data and get you full analysis. Stay with us. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Youre watching worldwide exchange. Bringing you Business News from around the globe. Headlines from around the globe. Glaxo smithkline says chinas bribery charges against the firm are deeply concerning. The biggest drug group assures it its taking this seriously and cooperating with authorities. Sony posts a fullyear loss. Shares lower in frankfurt. Nothing to see here. Move along, the cfo of allianz says they are elaborating the problems at pimco. The death toll from turkeys mine explosion rises to 205. The countrys Energy Minister warns it could be the countrys worst incident of its kind. We have the latest unEmployment Data out of the uk. Sterling falling after this. Weve had the sharpest threemonth rise since records began. The Unemployment Rate, the lowest since the three months to february 2009 has come in at 6. 8 . Thats pretty much as we expected. There might have been expectation the rate might have dropped a little bit more than that. The climate rate, well, that was done 25,000. It was forecast a full 30,000. Thats the number of people claiming unemployment benefits. Heres a key one for the bank. Average earnings, exbo bonuses,p 3. 3 . The poll was to be up 1. 5 march alone. We have declining inflation in the uk but unfortunately, weve now got average earnings back below the rate of british inflation. So there had been this expectation that earnings were real wages were going to start going up. Thats not necessarily the case. It maybe means as far as the bank is concerned, we might have strong growth but with declining head line inflation rate and average earnings not going up, why would they need to do anything . Maybe thats what were pricing out a little bit on sterling. Lets get a view with currency strategic at bnp paribas. Theres a lot priced in for sterling. Are we going to take some of that out . Perhaps a little bit. The market was focused on the average earnings figure. I have to say, if you look at the jobless rate, which the bank of england was focusing on, its gone down about a full percentage point over the past nine months, right . What that tells you is that slack is falling at quite a fast pace. Right . So i think eventually the market is going to be right in taking uk rates higher and front loading the tightening cycle as a result. Yes. Which one would you focus on . The ex bonuses is up 1. 3 , with bonuses, ubp 1. 7 , still weaker than the poll, 2. 3 . The figure would be the ex bonuses. It is before uncertainty to the extent that perhaps although you have the Unemployment Rate falling, perhaps productivity is rising which is why wages seem to be subdued. I think theres a lot of question marks around that. Certainly the bank of england is aware of that. I think going ahead, i think theres still a lot of potential for the market to take uk rates higher. Right . The pace of which slack is falling in the uk is quite astoni astonishing. We do think that rates will move higher and sterling higher as a result. If youre not getting Wage Inflation and headline inflation is coming down, we have an inflationary report, youre going to be saying why are we putting up rates . I think its this, right . I think when the bank of england laid down their initial Forward Guidance it was pretty much linked to that Unemployment Rate. What theyve gone and done now, conveniently, is trying to focus the attention of policy on broader and more measures admittedly such as economic slack. I think the market will test that. Market tend to test central bank credibility. I think considering the degree at which slack is falling, i think the markets could take uk rates higher. One chart i quite like looking at, look at the sterling one year, one year swap rate, its a remarkable inverse relationship. The level of the jobless rate now tells you rates should be higher indeed. Stay there. One stat i want to bring you on this, total employment in the quarter up 283,000. The biggest quarterly increase on record. There are now 30 million, 430,000 people employed in the uk. Which i also think is sort of a record as well. But what sort of jobs are being created is a mute point. Well come back to you in a few seconds. Also the euro given people wondering what kind of range the stimulus measures and ecb could provide at the next meeting. Weve heard from peter prett. He said the ecb could cut its deposit rate into negative territory as part of a package of measures. So confirming speculation out there. I know you went short euro sterling into the Inflation Report today. Given the slight downtick weve seen in sterling, still happy to hold on to that and still expect to see the euro lower . Absolutely. Firstly, the euro side of the equation, we think the markets come around to the ecb turning increasingly dovish. While investors are turning bearish in their minds theyre not quite bearish on their books, ie, euro positioning still neutral. Theres potential for the euro to fall in the weeks ahead. Sterling positioning may be long but think about it, uk rates have gone up 35 basis points since midapril and sterling hasnt done all that much. Euro sterling was gravitating around that level. Theres quite a lot of potential for this to run. Emerging markets, weve seen euro turkey close below the 200 moving day average. The ruble is also a quite interesting one. The activity youre seeing from the u. S. Has been moderate. Its not been too exciting. This has kept u. S. Rates low. Its kept u. S. Rates well lower. We know from last year that u. S. Rates volatility was quite a strong driver of markets and carry trades in general. I think what the data were getting now is suppressing volatility and in an environment where volatility remains suppress, carry trade doswell. Admittedly, short euro was the em currency as you mention, offer quite an attractive carry. Absolutely. Great to chat to you. Currency strategist at pnb paribas. European equities softer this morning after gains yesterday. Ftse just over 0. 1. Flat for the xetra dax. Not far away from the alltime highs on the dax. The ftse mib off 0. 5 . We had that weaker retail sales reading of course fob in the u. S. Yesterday. Weve seen the u. S. Tenyear note continuing under pressure today, down around 2. 59. A couple of basis points this morning. Quick check on tenyear gilts. Well continue to talk about that this morning. 2. 65, the reading there. Also, gilt yields going down as sterling falls off a little bit. The death toll from turkeys coal mine explosion has risen to 205. This according to figures from the countrys Energy Minister. Hes warned that the incident could turn out to be the worst mining disaster the countrys ever seen. These are the latest pictures. Emergency crews were able to evacuate over 360 miners at the time of the blast. Travel headaches could persist for anyone flying in and out of chicagos airports among the worlds busiest hubs. Smoke that filled the holes at a radar center in a nearby suburb forced flights at ohara and midway to be grounded for several hours tuesday, resulting in more than 1,100 cancellations. An unnamed, undetermined number of flights were diverted to other airports. The disruption followed a rough travel day on monday when severe thunderstorms caused 1,200 flights to be delayed. Tough few days there. Yes. Meanwhile, the second hearing into a potential of pfizer and astrazeneca. Weve heard mr. Read, the pfizer ceo say we can improve astrazeneca through Neuroscience Research and would be irresponsible to reveal the Business Model before the acquisition. The combined Research Budget would go down. That normally happens with a merger as well. Governments are pressuring us to be more competitive. Lets get some views right now. Joining us is mick cooper, Health Care Analyst at Edison Investment research. Mick, thanks for joining us. This is an interesting one, pfizer saying that we would improve astrazeneca through Neuroscience Research. Do you agree with that . Definitely. There are potential benefits there. I think neuroscience isnt an area where astrazeneca is very strong. Mind you, i think it is possible that they could do a deal a deal between gsk and novartis. Where they do essentially an asset swap and they get those benefits through those means without theres a perception here that pfizers not terribly good at overall deception, pfizer is not very good at developing drugs. Theyre brilliant at financial engineering, they have a good sales force and theyre good at buying other drugs and marketing them. I think why pfizer is interested in astra, particularly now, is that they have an interesting pipeline coming through. Theyve had a number of successes which have been announced recently, no doubt, in part of the defense. If you i think this is a key point, where pfizer has to go hostile or whether they get a bid that the astra boards like. Key thing for me is, if i own stock in astrazeneca, do i want to take paper in an enlarged pfizer . I think it is a big issue. I think if it were a straight cash offer, then it would be a lot more compelling. Because i could take the dividends and reinvest. Absolutely. With only a significant amount of pfizer paper with be you have to take a bit more seriously the issues raised yesterday about disruption to r d. So consequently youre not just thinking about what youre going to get today. Its also what is potentially going to happen to the pipeline going forward. Thats the bottom line, what came out of yesterday is that its less about the drugs and more about the tax benefits. We have another one we want to talk to you about, gsk releasing a statement after they accused an employee of the company of bribing documents. Gsk say they are taking this very seriously. Adding we we want to reach a resolution that will enable the company to continue to make an important contribution to the health and welfare of china. Are they being made an example of . There are others, surely. They are being made an example of, that is clear to me. Gsk will be keen to draw a line under this. Draw a line under it and move on from this episode. Revenues down 29 in the fourth quarter, revenues down 61 in the third quarter. Their business has been hammered. Can they draw a line under this, pay a fine, see somebody jailed potentially and then move on . Theyve got to. Its too big a market for gsk to move away from. Its not about them walking away. Its whether the chinese authorities allow them continue to do business there. Will they . Ive seen examples of them allegedly cha lly charging up t times the amount for a drug thats also available domestically. Im sure they will spend a lot of time working, how to reverse the trend. Sales about been visit extremely hard by this whole episode. And it will need a lot of investment by gsk to turn it around. Before we go, very briefly yb your favorite pick in health care . Favorite pick. Interesting at the time. I think probably novartis at the moment. Thank you for that, nick. Sorry to put you on the spot. No problem. I wanted to get the benefit of it before you go. Mick cooper, thanks for joining us. Danone looks to expand its baby food business. Medical nutrition is the smallest of danones businesses behind yogurt, water and baby food. Staying in france, bnp paribas is reportedly in discussions with u. S. Authorities to say more than 3 billion over allegations it violated american sanctions on iran, sudan and other countries. Stephan is in paris. Stephan, just how damaging is this . They did expect they would have to pay fiennes but the amount he mentioned was northwards of around 1 billion, wasnt it . This was multiple times what we were originally led to believe. Exactly. We knew that bnp would have to pay a fine at some point and actually back in february announced a provision of 1. 1 billion to cover potential Legal Expenses in the United States. But a few weeks ago, three weeks exactly to i was told the fines could be much higher than the amounts of the provisions. What it is, the process is ongoing. The outcome is uncertain and so it is not to be excluded that the amount of the fine will be far in excess of the provision demand. Thats all we can stay at this stage. According to sources close to the negotiations, the fine would be worth 3 billion, 2. 2 billion euros. We know that the probes are being conducted by the u. S. Department of justice but not only the treasury department, the new York Department of Financial Services as well as the manhattan district, they are leading the investigations. Prosecutors would like the french bank to plead guilty to criminal charges as part of the resolution. Bnp would face significant penalties. It would not loss its license in the United States. It would also on top of the fine face suspension of the dollar clearing through new york only for a period of time. That would be of course a significant sanction for the french bank which by the way was not the only one in this case. U. S. Securities have gone up to several banks. For violating sanctions on iran, sudan or other countries. Over to you. Thanks very much, stephan. Great to chat to you. I want to get back to the point we were talking about gsk. If you dont mind. Theres not only china, theres allegations of this going on in poland, ireland, iraq. The distribution of drugs is a bit of a murky world. Theres a lot of pressure on gps, or if they push a certain drug over another one. I dont know enough about it but it is an interesting world. I was reading off those numbers about china. Also still to come, fully charged. Motorsports First Electric car championship, the ceo will join us after this. One question i want to know, what are they going to do about the noise or lack of it. I want to know how fast they go. man speaking jananese its completed its funding ahead of the favorite race. They join a number of existing investors who are backing the championship which kicks off in september. The inaugural season will see ten cities hosting ten teams, including ones led by Richard Branson and leonardo dicaprio. Joining us is ceo of formula e holdings. Youre happy with this and the finances are going to last the season. Its happening now. We are drilling holes around the olympic stadium. How are the cars getting over the holes. We cover them with fences. The key thing about this series, youll be doing street circuits. The reason you can do street circuits is electric engines. The electric car is the st. Louis for transportation in the city. Pollution and, you know, all the Energy Problem can be solved with electric cars in the cities. So we want to show these cars in the cities. We want to show them to the people, especially to the young generation going fast and being cool. Cars today are considered sluggish. Boring and not exciting. We want to make them look like they really are. The sexy thing about formula one, speed and sound, i think. Talk to me about those two things. How do they compare . Well have both, speed and sound. These cars are really fast. Acceleration is similar to formula one. The sound will be the big surprise. The speed. 220 to 240 kilometers per hour. I dont know if you remember star wars, chapter one, the port race, thats the new sound, futuristic, less loud. Were racing city centers. Still, we need excitement. Drivers, its about backing teams or drivers and theres history there and they are considered the best drivers in the world. How do you get people into this . We have a different mix. We have historic racing teams, andretti from the u. S. Are involved, we have different types of teams. Dicaprio is with one team, branson. Then we have famous drivers. Virgin announced a driver yesterday. Would this be i mean, will this be are you going to sit outside . Youre under the faa but are you going to sit outside the series . You have the feeders into formula one. Do you want to be like gp2, a feeder into f1 . Where do you sthink this is goig to sit with Everything Else . We want to be completely separate. These will be like skiing and snowboarding we are snowboarding. So outside of the pyramid. Not a feeder but we are in our own pyramid. Basically were the only ones here. Whats happening with Television Distribution rights and deals . Whos going to broadcast . Its pretty good, actually. We have an 88country deal with fox sports, including live in the u. S. We have never heard of them. We have japan, we have star in asia, we have itv here in the uk and other deals that are coming through now that we will announce in had the coming weeks. Is that where the bulk of your return is coming from, broadcast deals . Thats one source of return. The main source of return is the sponsorship. Why we think we are getting good sponsors coming our way, we sit between a sport and corporate social responsibility. There are very few sports that combine supporting an event with tv ratings and so on. We are being linked to something good for the environment, promoting the electric cars. Thats where we think were a good option for big corporations and there are many around the world that put this at the top of their agenda. Completely off the subject now. I was looking at your bio, you were a european parliamentarian. Yesterday we were talking about branding the eu, getting it away from the populous parties weve seen. In a sentence, how do we market the eu . I was a member of the parliament, 13 years ago. Rebranding the eu, its a complicated thing. I think the eu is toor far from the people. Thats the main problem. Maybe in reality its not that far but the perception is that theyre miles, miles off. We agree. Its a broad perception. Im promoting the perception of the electric cars. Brilliant. Thanks very much for chatting with us. There is a london race . Yes. Do we know the schedule. June 27th of 2015. Cannot say where it is yet. Its a surprise. Soon we will reveal where it is in london. Monte carlo, berlin, not a bad list of cities to be fair. We have to invite you. You picked all the cities with your favorite restaurants. Thats what you did. Thank you for joining us. Alejandro from formula e holdings. Time for a status update. Mark zuckerberg, the founder of facebook is 30 today. He still owns 27 . Were asking if you were Mark Zuckerberg, what would your berth day wish be or indeed what would you give the man who apparently has more money than he will ever need, ever, by anybody . Right. Email us, tweet or directly rosswestgate. Second hour of worldwide exchange, coming up. Heres a good one seattle. What did geico say to the mariner . We could save you a boatload foghorn sounds loudly whats seattles favorite noise . The puget sound foghorn sounds loudly all right, never mind doesnt matter. This is a classic. What does an alien seamstress sew with . A space needle foghorn sounds loudly continuously oh come off it captain geico. Fifteen minutes could save you fifteen percent or more on car insurance. Thats keeping you from the healthcare you deserve. But if healthcare changes, if it becomes simpler. If frustration and paperwork decrease. If grandparents get to live at home instead of in a home. The gap begins to close. So lets simplify things. Lets close the gap between people and care. Welcome to worldwide exchange, im julia chatterley. And im ross westgate. The headlines from around the globe. Glaxo smithkline says chinas bribery charges against the firm are deeply concerning. Britains biggest drugs group says its taking the allegations very seriously and is cooperating with authorities. Pfizer continues its push for a buyout of astrazeneca in round two of hearsings. The drug join the says there will be synergies from the deal. Nothing to see here, move along, the cfo of allianz tells cnbc, the media is exaggerating the problems at pimco, despite suffering nearly 22 billion euros in outflows from its bond business in q1. The death toll from turkeys mine explosion rises to 205. The countrys Energy Minister warns it could be the countrys worst incident of its kind. Youre watching worldwide exchange, bringing you Business News from around the globe. Hello. Youre watching cnbcs worldwide exchange. If you just joined us in north america, welcome to the start of your Global Trading day here. Well get an update in just a few moments time. They have a record start. These are the latest pictures from westminster. The second hearing into a potential tieup between pfizer and astrazeneca. The ceos of the two drug giants are speaking before the science and Technology Commons select committee. Weve heard from mr. Read, the pfizer ceo, saying we can improve astrazeneca through Neuroscience Research. We would be irresponsible if we revealed the Business Model from any acquisition. Hes confirmed the combined Research Budget would go down. Actually if you were going to merge two companies, you would hope that would be the case. Governments are pressuring us to be more competitive is his answer to that. Uk drugs giant gsk released a statement after an employee of the firm has been accused of bribing doctors. Gsk says they take the allegations very seriously. They added we want to reach a resolution that will enable the company to continue to make an important contribution to the health and welfare of china. Eunice is in beijing. The question is, are the chinese authorities going to allow gsk to do this . And can gsk draw a line under these allegations . I think its possible that gsk, like other Foreign Companies who have had these types of problems in the past would be able to recover, especially because they, like many Drug Companies that do come to china are able to offer something that many people, citizens in china would actually need. That is that they do provide a lot of drugs that are good for chin ins citizens. I dont think that a gsk is going to be completely shut out of this market if they play their cards right. Right now they are in the middle of a very difficult period whereby we do know the Chinese Police have charged some of their executives with bribery. This comes after the have finally closed a tenmonth long investigation where they say some of the staffers at gsk were bribing hospitals and doctors, helping the company to raise revenues in the hundreds of millions of dollars. They singled out the former gsk china head who is a British National, a man named mark riley, who they said ordered staffers to commit bribery in order to try to raise the sales in this country. Now, all today we have been watching a parade of gsk chinese staffers in orange jump suits confessing their crimes on television. Theyve been telling the viewers how they committed these crimes, what they did to engage in bribery and in fact, there was one staffer in particular who did accuse riley specifically of ordering hr and finance directors to destroy evidence in a Crisis Management campaign. So this entire process has been very shocking to the foreign business community, mainly because there is a Foreign National involved who was singled out and also because there are many people who are wondering if this is a one off incident or its going to be just the start of a Wider Campaign . Eunice, thank you for that. Thats the latest from beijing. Joining us with her thoughts, cnbcs katherine. For Glaxo Smithkline they want to avoid any kind of suggestion this was condoned by management outside of china. Theyre a really quickly growing market. Like many other firms, gsk needs to be a part of that. We were saying earlier, its not just about china. They have allegations in poland, lebanon and iraq, too. This is a broader subject for them in total, isnt it, for the company . The entire industry has had a lot of focus on its practices both in europe and the u. S. And more in the developing markets with things that could be constituted like bribery and giving people trips and that sort of thing. So i think this may come back to potentially hit some other Companies Operating in china, too. Obviously no one else being officially investigated yet. Very briefly, we mentioned astra and pfizer. Whats going to be different today from yesterdays hearings . They had to focus on the research angle and particularly what could happen to some of astrazenecas new drugs. Hes really been keen to refute the claims by astrazeneca chief executive yesterday. Some of astrazenecas really important new drugs might not get to market in the time he could. Hes also stressed the importance of the length of Development Pipelines to this deal and how difficult it is to plan for ten years in advance when you just dont know how medicines will tornado out. Which is why you need to plan for 20 years, right . Kaj lynn, thank you for that. We head through a weaker european trading session so far. A gain for the u. S. Markets yesterday, ending on record highs. For these futures, relatively unchanged and similarly for the nasdaq losing around 0. 3 in net trading yesterday. We saw the russell, down just over 1 in yesterdays trading session. We saw a cluster of u. S. Listed stocks hit. Right before the closing bell on tuesday in what may have been a menny flash crash. Shares of more than a Dozen Companies saw a sudden spike in volume by as much as 5 . Most of the stocks are on the nyse, including caterpillar, southwest airlines, Western Union and aol. The move didnt trigger any volatility halts but were put in place following the may 2010 cra crash. The nyse later canceled all trades in aol made during a twominute period. The april ppi out at 8 30 a. M. Eastern, Producer Prices are forecast to rise 0. 2 . Macys reports results before the opening bell. Well get numbers from deere, sodastream, kate spade, remax, cisco and agilent. Michael, good morning to you. Nice to see you. Here we are. Dow, s p up record highs. The russell 2000 down nearly 10 . A lot of people buying downside protection, i understand. Why the divergence and whats that telling us . Whats it telling you . I think the story of the markets over the last several weeks, you know, we had a nice rally off of february lows. Then you had this massive divergence set forth. So the question is, do the high beta momentum stocks and small caps, do they bring the blue chips lower . Or do the blue chips keep rallying and ultimately bring up the high beta, high momentum stocks . My view its the latter. I think the overall take is really quite strong. What weve seen here is sort of almost a very textbook sequencing of new highs. For example, on april 23rd, the transports made fresh highs, followed by the dow. Now just as you mentioned yesterday, the s p 500. If you look at the russell 2000, for example, that index had been under massive selling pressure, but it has also been stabilizing at what i think are important key support levels, both long term and shorter term support levels. So my guess here is that, you know, this unloved rally will continue. And theres always very good rationales for buying protection, particularly with the vix this low, volatility levels this low. I also think theres a case for buying a performance hedge where you can have a beta chase set up. If the market edges higher, theyll be wanting to chase the beta up, which will become a selffulfilling prophecy which we saw in december. Just looking at volatility, the russell 2000 volatility is at the highest level since 2007 compared to the s p. Are they complacent or not . Thats a great question. You know, on the face of it, weve seen a vix this year, recently, you know, its headed down to the 12 region. Earlier, it had been basing around 14. On the face of that, those are all very low numbers. The lifetime average of the vix is slightly north of 20. But you have to step back a second and look at the broader picture, which is that almost every mather volatility out there is close to record lows. If you look at the volatility of the euro or the yen or of treasuries or of oil or even gold, which is notoriously volatile, these volatility levels across the board are extremely low. One of the points ive been arguing is that the vix, if you see a vix at 14 or 15, thats sort of a higher number than it looks in that context. Then as you pointed out, if you look at the spread between the small cap vol and the s p 500, that was a 2011 risk off levels. That spread was there. Underneath the surface of that vix, theres been a lot of volatility within the market. And i think thats in a way a healthy sign that longwinded way of saying that the vix is not necessarily indicating the complacency that it normally does. Theres a lot happening within underneath the surface there. Well explained. Michael, always good to see you. Thanks for joining us early. Looks like a beautiful sunset coming up there in new york. Or is that a fake one . I never know when its real or fake. Chief global strategist. It would be nice if it was real. We have live shots out of there. The world of tv. The director said its fake. Im not hiding from anything. Im not hiding from anything. Sorry. Lets move on. The death toll from turkeys coal mine explosion has risen to 205. This according to figures from the countrys Energy Minister who warned that the incident could turn out to be the worst mining disaster the countrys seen. These are the latest live pictures. Emergency crews are able to evacuate over 360 miners at the time of the blast. Have you got 1,500 burning a hole in your pocket . Well, you could still snap up google glass. Well be talking about that later on in the show. Stay with us. Cars are driven by people. Theyre why we innovate. Theyre who we protect. Theyre why we make life less complicated. Its about people. We are volvo of sweden. Youre watching worldwide exchange. A recap of the headlines, Glaxo Smithkline describes bribery charges against the uks biggest drug group are deeply concerning but says it is cooperating with authorities. Meanwhile, american pharmaceutical giant pfizer tells british lawmakers there will be synergies if it bidz out astrazeneca. And the death toll from turkeys mine explosion rises to 205. Hundreds more are still trapped. If youre just tuning in, thanks for joining us here on worldwide exchange. Let me give you a look at how the u. S. Futures are faring this trading session. Relatively unchanged right now for the dow and the s p 500. The s p 500 actually making new heights yesterday. It did it by rallying less than one point. I will skip over that. Cant really get excited about a new high when its achieved by such little gains. The nasdaq similar story, relatively unchanged, just a point lower following the tone that was across the european markets this morning. The ftse 100 down 0. 1 . The story for the german market, a quarter of a percent lower. For the ftse mib in italy, up by around 0. 5 . The Inflation Report, we did see unemployment tracking lower to 6. 8 right now. A little bit of a disappointment as far as the average earnings. Depends where youre sitting if thats a disappointment or not. Not for the bank of england. The report coming out, at this point for those along with sterling, i would say more than anybody else, would come on to that. Treasuryiels, 2. 57 is the the yield at the moment. It got retail Sales Numbers yesterday. That brought it back down it a threemonth low foryearolds as well. This comes low on back of this unemployment report as well. 2. 63 average earnings coming in weaker than expected as well. That takes the pressure off. With inflation coming down, average earnings weaker than expected as well. Why would the bank of england be putting up Interest Rates in the First Quarter of next year unless those two components change . That would be a thought. Sterling down against the dollar, 1. 6817. The euro is down near 60month lows against the pound as well. People will still be putting on long. Dollar yen, just below one or two, very much in the range. Euro dollars bounced off its lows. Weve gone down three big figures in three sessions. We hit 1. 3685 yesterday. Just above that at the moment as you can see. So euro pausing for a breath here as well. Thats where we stand right now. In european trade, what about the session in asia . Heres sri with the details. Sri . Mr. Westgate, we are seeing Risk Appetite but without being peppered from pockets of profit taking in some of the markets like the nikkei. The australian benchmark, thats a reason we took a wobble there. The other fact is the currencies. You were talking about dollar yen. Euro yen is on the defensive as well. We saw slippage below 140. This comes at a bad time for some of the big exporters into europe. Sony, theyre deep. They are forecasting another loss for fiscal 20142015. That could compound their woes. Look for some further followthrough, weakness potentially for the Japanese Equities markets tomorrow. The other point i wanted to warn you about, is that we are seeing some pretty serious tensions in vietnam, antichina protests in the country. Factories have been targeted and attacked. All of this is relevanted to the turmoil in the South China Sea and the maritime tensions over there, East China Sea and the South China Sea i should say. Watch that space. Those geopolitical issues and the currency market volatility could undue some of the gains and undo some of the Risk Appetite were seeing today. Thats where we stand anyway. Back to you. Have a good evening in singapore. Still to come, many happy returns as facebooks turns 30. What next for the especially network and its legendary founder. I cant believe hes only 30. And ekatrina walter, the founder of think like zuck will join us with her thoughts. If it becomes simpler. If frustration and paperwork decrease. If grandparents get to live at home instead of in a home. The gap begins to close. So lets simplify things. Lets close the gap between people and care. Lets close the gap between people and care. Its all about latency. About speeds and feeds. Its all about how fast does it run. I often sit with enterprises who ask me about how Mission Critical and hows the performance of the cloud. And i tell them, if you can maker gamers happy, you can make anybody happy. Ill just press this, and youll save on both. Ding ladies and gentlemen, boys and girls, llllets get ready to bundlllllle. [ holding final syllable ] oh, yeah, sorry lets get ready to bundle and save. Now, thats progressive. Oh, i think i broke my spleen Home Insurance provided and serviced by third party insurers. Welcome back to worldwide exchange, now facebook founder Mark Zuckerberg turns 30 today as ross said earlier, we did put the hat on him, nobody else. Lets take a look back in time at how the company now has 153 billion market cap. Facebook was famously founded by zuckerberg in harvards dorm room in early 2004 where it was first called the facebook. It got major funding in 2005 where accel made a nearly 30 million investment. It expanded to universities internationally in october 2005, going to the uk and then to mexico. In november 2007, facebooks revenue reached 150 million. Then you know youre starting to make it. Joned in march of 2008, fast forward again to january 2011 and Goldman Sachs led a 1. 5 billion funding round value be the company at 50 billion. Facebook then of course went public in may 2012 in an offering that despite being famously glitchy, set a new record for Trading Volume on an ipo. And we have october 2012, the firm reached 1 billion users. Wow. Cofounder and cmo of a business and author of think like zuck. She joins us live from portland, oregon. Ekatrina, thank you so much for joining us. What are the five business secrets . Thats, you know, theyre not as much secrets, julia, as very as sort of traits of a good leader. Purpose, making sure you know where youre going, passion, knowing exactly who you are and what youre about and zuckerberg is very much so. Bringing the right people on board. Which is very important. He is making sure you bring people who can help execute on your vision like sheryl sandberg, et cetera, et cetera. Theres building strong product and the last piece is partnerships. So if you look at how zuckerberg approached the last ten years an how hes grown, he hasnt only grown as a leader but its grown his business and stayed on purpose and on mission continuously and really in the meantime, made amazing, bold moves as any successful longterm leader would. Transparency is everything to zuckerberg. What will we make of this ruling from the European Court of justice that people have the right to have personal information removed, to take it back . You know, its interesting when zuckerberg just started, his opinion was you cant be anonymous. You have one identity and it all comes back to integrity and all of the information needs to be open. Hes radically so with internet. Org and other moves that weve seen hes making. He wants that information accessible. But i think in the past couple of years he really learned and understood that theres a fine line that he could work between sort of the world transparency and information flowing freely to theres limits to how you treat the private information of citizens. I think hes definitely working a fine line. But he is very dedicated to making sure that people who are on facebook and who work with facebook, theres a very clear sort of transparency on his part with whatever hes doing, whether its Business Decisions or how hes using information. I think hes made strides in that regard for sure. Ekatrina, thank you. If you want to think like zuck, read ekatrina walters book. We have to take a quick break. For now, a lack at how the futures are trading ahead of the open on wall street. Stay with us. Welcome to worldwide exchange, im julia chatterley. Im ross westgate. Chinas bribery charges against Glaxo Smithkline are deeply concerning. Bruns biggest Drug Group Says it takes the allegations very seriously and is cooperating with authorities. Pfizer continues its push towards a buy for astrazeneca in round two of hearings. The drug giant saying there will be synergies from the deal. Nothing to see here, move along. The cfo of allianz says the media is exaggerating issues at pimco. The death toll from turkeys mine explosion rises to 205. The countrys energy moneyster warns it could be the countrys worst incident of its kind. Youre watching worldwide exchange, bringing you Business News from around the globe. The bank of england quarterly Inflation Report is out. This is very important to guide us where we think rates are going in the uk. Theyve broadly left the uk growth and Inflation Report unchanged, signaling the first rate rise could come in late First Quarter or early Second Quarter of 2015. Thats a slight nudge forward. They continue to see the uk economy grow by 3. 4 this year. 2. 9 in 2015, 2. 8 in 2016. They say the inflation rate will pick up towards the 2 target over the coming months. It will remain close to target thereafter. There will be a modest narrowing but remain at 1 to 1. 5 gdp. Unemployment fell more rapidly than expected in february and recent sterling appreciation to lift the pickup in the inflation rate. The governor of the bank of england are speaking. Viewers in the uk will listen in on that. So will we briefly here. Overwhile, our best collective judgment is that the margin of Spare Capacity likely remains in the region of 1 to 1. 5 of gdp. Our central estimate is that Spare Capacity is likely to be used up more slowly than in the recent past. In part because output growth moderates over our forecast. But also because productivity growth is expected to resume. We continue to assume the productivity growth will only recover to its precrisis average rate by the end of the forecast period. Given the huge shortfall relative to its previous trend, this is cautious, if prudent. Even with this assumption, the margin of Spare Capacity is absorbed only by the end of the forecast period on our forecast based on market rates. The time taken to absorb Spare Capacity is a reflection of the continued headwinds faced by the economy. The Financial Sector continues to heal, public and private Balance Sheets continue to be repaired and x port growth faces a 10 appreciation of sterling over the past year, all while growth in the Global Economy remains muted. While the risk to the euro area are now twosided, around a modest growth rate, there are Downside Risks from the consequences of rapid growth of shadow banking in china and more broadly, the mpc is alert to vulnerabilities from a reassessment of risk in financial markets, perhaps prompted by geopolitical developments or uncertainties about the normalization of monetary policy. Despit a more complex global environment, implied volatilities in many markets are well below longterm averages. Heading back to normal will likely be accompanied by more normal, that is higher levels of volatility. The global picture is consistent with muted external inflationary pressures that coupled with sterlings past appreciation will moderate cpi inflation in the near term. Inflation has fallen sharply since autumn and is now about 1 percentage point lower than we had expected a year ago. Weve interpreted this news largely as a result of one off factors rather than lower underlying inflationary pressures. Mark carnie there, continues with his quarterly Inflation Report, joining us with his thoughts, strategist at monument securities. Mark, theyre guiding us toward a rate rise First Quarter of next year, maybe the beginning of the Second Quarter. The rate this rise in bank rates will be grad alland leave it materially below the precise is norms. How do these statements compare with what youre expecting . I think this is probably along the lines of what i was expecting. I think the market got ahead of themselves. Theres been too much focus on what the bank should be doing in the uk, because of the housing market. They do say there will be a continuation in house price rises. Yes, thats quite right, as long as were in a zero Interest Rate policy environment, the move towards hard assets like houses and particularly where youve got a lot of geopolitical tensions in london is seen as a haven of stability will continue to push house prices up. That doesnt mean you have actually anything which looks like reckless mortgage lending. Mortgage applications are falling quite sharply. Because of Mortgage Rate regulations. I think the most important thing is, its a good second take on the Employment Data that we had this morning. Because as much as that came in above expectations at 283,000, you break that down and you actually see that in terms of fulltime employees, growth over the quarter was just 58,000. Yes. Parttime employees, 41,000. And selfemployment, 183,000. One can assume in the second two categories people are probably not working full time, a lot of them, and that per se implies that there is still a lot of slack in the economy. I was about to say, that ties to the question of slack. Theres talk of potentially seeing them shifting the amount of slack in the economy, lower in terms of the percentage right now, 1 to 1. 5 . But hes actually said were sticking with those forecasts but were to the bottom end of that. Hes not backing himself into a corner as far as slack in the economy is concerned. Yes. I think the opinions on the committee, i mean, the estimate itself at 1 to 1. 5 is relatively speaking quite wide. That highlights the divergence of opinion. Thats only going to get worse. Hes highlighting that, yes, growth is quite good but were a long way from the other point you make is important. Average earnings came in weaker than expected and particularly exbonus, down 1. 5 . 1. 5 . 1. 5 . You have average earnings at 1. 5 , inflation now, what are we, 1. 7 . 1. 6. 2. 5 rpi. Where is the pressure at the moment for the bank to raise rates . Are we going to be doing it next year because we need to get off these emergency low rates . Yes. I mean, thats a completely different debate. I mean, this is really where the problem lies. The fact remains with the economy growing at this sort of level, 3. 4 this year and they are receiving 2. 9 and 2. 8, do we really need Interest Rates at this level . Answer, no. Do we need all that qe . Answer no. But what happens if we take that away . And you know, there are two different sides to the argument. Mortgage rates are going up. Yes, Mortgage Rate are going up. Fiveyear yields have risen, to realize there is tightening going on in the uk economy, its just not at base rate level. Use the right tools for the job. That takes us back to the macro prudential tools. Well look out for that. Well move on to one of our other top stories today. The death toll from turkeys coal mine explosion has reached to 205, that according to figures from the countrys Energy Minister. Youre looking at live pictures from turkey right now and the rescue efforts. Joining us now on the phone is New York Times reporter, who is en route to the site, sebnem arsu. Just give us a brief update. The death toll right now could increase. Theyre still searching galleries, little rooms that the workers are likely to be trapped. There are workers [ inaudible ], talk about trends and other coworkers that they lost contact with before they could be distracted. They may have been affected by the poisonous gas that theyve been inhaling. I dont want you to detract from the current tragedy thats unfolding there but theres also a political question here, isnt it . I believe the opposition in turkey filed a motion just two weeks ago to try and investigate the Safety Record at this turkish mine. It was rejected in parliament. Is that right . Because there are concerns about safety in turkish mines. Thats true. It was yes with. The Peoples Party has requested the commission to look into safety and house regulations of coal mines and other mines around this region. This petition was backed by other petition parties, by the governing party. At this time, they were asked about the situation at the mine. But he said investigations were due after rescue operations were finalized. Their priority is to save as many people as possible. He refused to go any further than that. We know they have started an inquiry into this. The Labor Ministry issued a statement late last night saying that the coal mine has been inspected regularly and so far its complied with the Occupational Health and safety regulations. But, of course, the idea of forming this commission was because miners kept dying at these coal mines and there are obvious shortcomings in safety and regulations that need to be investigated. And the idea with the investigators, unfortunately the party did not have a full picture as to what kind of violations were in place. Youre right. Further questions do have to be asked, sebnem. Thanks for your update. For now, focus on the rescue efforts, as you say. Tistill to come, one move b u. S. Lawmakers to Keep Companies from leaving the country because of tax rates is meeting resistance on capitol hill. We asked people a question, how much money do you think youll need when you retire . Then we gave each person a ribbon to show how many years that amount might last. I was trying to, like, pull it a little further. [ woman ] got me to 70 years old. Im going to have to rethink this thing. Its hard to imagine how much well need for a retirement that could last 30 years or more. So maybe we need to approach things differently, if we want to be ready for a longer retirement. If we want to be ready for a longer retirement. When folks think about wthey think salmon and energy. But the energy bp produces up here creates Something Else as well jobs all over america. Engineering and innovation jobs. Advanced Safety Systems technology. Shipping and manufacturing. Across the United States, bp supports more than a quarter million jobs. When we set up operation in one part of the country, people in other parts go to work. Thats not a coincidence. Its one more part of our commitment to america. Carstheyre why we innovate. Theyre who we protect. Theyre why we make life less complicated. Its about people. We are volvo of sweden. Youre watching worldwide exchange. Welcome back to the show. These are your headlines. Glaxo smithkline describes bribery charges against the uks biggest drug group as, quote, deeply concerning. But it says it is cooperating with authorities. Meanwhile, american drugs giant pfizer tells uk lawmakers there will be synergies if it buys out astrazeneca, saying m a angst comes from a fear of change. And the death toll from turkeys mine implosion rises to 205. Hundreds more remain trapped. The second hearing into a potential combination of pfizer and astrazeneca, theyre speaking before the select committee. Already this morning, pfizers ceo came said there was angst coming from a fear of change but that we can improve astrazeneca through its Neuroscience Research. And it would be irresponsible to reveal the Business Model before the acquisition. They want to be more competitive. Meanwhile, the bid could let the company relocate to the uk for tax purposes. There is also criticism on capitol hill and the promise of possible legislation. There is one top u. S. Lawmaker who says not so fast. Jackie deangelis has more for us at cnbc hq. They want to try and change this fairly quickly. Whos going to stand in his path . Thats exactly right, ross. The Top Republican tax writers in the senate are rejecting this idea of this quick move by congress, targeting this socalled tax inversion deals, the deals of course in the wake of pfizers 106 billion offer for astrazeneca. Its orrin hatch, the Ranking Member of the Senate Finance committee is signaling that the gop wont support proposal byes by democrats to enact legislation to make it harder for u. S. Companies to relocate overseas in order to lower their tax bill. Senator ron wyden who chairs the committee has floated the idea of raising the bar of Foreign Ownership needed for u. S. Companies to move from 20 to 50 . He also wants to apply any measure retroactively, something that hatch steadfastly opposes. I share my colleagues concerns about the number of unversions that have taken place over the last few years, however, i do not believe that imposing confusing and arbitrary retroactive restrictions on u. S. Companies is the answer. Now, hatch says that the problem of tax inversions should be solved by broader tax reform, lowering corporate rates, killing tax breaks an shifting the u. S. Away from a system that taxes a companys foreign earnings when the cash is brought back home. There is consensus in washington on the need for reform, of course. But democrats and republicans are still far apart on the specific details. No disagreement is expected on capitol hill until at least late next year. Pfizer isnt the only company debating whether to leave the u. S. For greener pastures. Drugstore chain walgreens is considering a deal to reincorporate in switzerland. The New York Times reports that one investor wants the company to stay, ctw, which owns less than 1 has sent a letter to management making the case against the transaction. Ctw, which advises Pension Funds says that the move could hurt shareholders despite the tax savings. Swiss law gives investors less protection and the move could risk the stock being removed from the s p 500 which did happen to transocean and also Insurance Firm ace. Ross and julia, back to you. Just because its good for the company doesnt mean its necessarily good for the shareholders. Exactly. I think astrazeneca could get a sorry, pfizer shareholders would get a tax bill if it does relocate. Thanks for that. Christies made history, topping its record of 691 million set last november. This piece sold for 84. 2 million. That went to an anonymous collector. Is that the piece . Im trying to work out okay. It was the whole piece. Andy warhols painting race riot 1964 went for nearly 63 million. Far surpassing the estimate of 45 million. I recognize that one. And this piece, this sold for more than 80 million. Surging from an opening bid of 50 million. Wow. This is francis bacons three studies for a par trot of john edwards. Something a bill less expensive. If you still dont know what to get that special someone for their birthday, and you happen to have 1,500 burning a hole in your pocket, pick up a pair of google glass. The device was made available for one day last month. The consume er version is expecd to go on sale next year. Perfect present for zuck zuckerbe zuckerberg. The founder of facebook turning 30 today. Weve been asking what would your birthday wish be if you were Mark Zuckerberg . You could get mark twitter shares for his 30th. It will help him diversify. We like that. Yes. Does he need more downside . I dont know. Keep sending your thoughts, email worldwide cnbc. Com, you can tweet us as well. About speeds and feeds. Its all about latency. Its all about how fast does it run. I often sit with enterprises who ask me about how Mission Critical and hows the performance of the cloud. And i tell them, if you can maker gamers happy, you can make anybody happy. A cluster of u. S. Stocks were hit by volatility in what could be a mini flash crash. Most of the stocks are on the nyc, including caterpillar, southwest airlines, Western Union and aol. The moves didnt trigger volatility halts but were put in place following the may 2010 flash crash. However, the nyse later canceled all trades in aol made during a twominute period. A new report by Johnson Associates are projecting compensation for wall street firms to be flat this year. Employers in lowerrisk feeheavy businesses could see their bonuses rise as much as 10 . Rising stock markets boost inflows. Those in more riskheavy and volatile businesses such as fixed income could see bonuses fall by 15 . Before we go, travel headaches could persist today for anyone flying in and out of chicagos airports among the worlds busiest hubs, smoke filled the holes at a radar center in a nearby suburb forced flights at ohara and another airport to be canceled. Severe thunderstorms caused 1,200 flights to be delayed the day before. Apologies if youve been caught up in that tough couple of days. Squawk box up next. Have a profitable day. At humana, we believe if healthcare changes, if it becomes simpler. If frustration and paperwork decrease. If grandparents get to live at home instead of in a home. The gap begins to close. So lets simplify things. Lets close the gap between people and care. Good morning and welcome to squawk box. The dow and s p squeak out another record close with more economic and Earnings Data on the why. Pfizer ceo ian read getting grilled again by british lawmakers. And facebooks Mark Zuckerberg are you kidding me he turns 30 today. Its wednesday, may 14th, 2014 and squawk box begins right now. Happy birthday, mr. Zuckerberg. Good morning. Im Michelle Carusocabrera along with joe kernen, becky and andrew are out today. The dow and the s p 500 reaching record highs. Today the markets get more economic data, more earnings reports. The government will release its april Producer Price index and economists are expecting a rise of 0. 2 on the head loan number and the core rate which excludes food and energy. On the earnings front there are several key reports to watch. Macys reports at 8 00 a. M. Eastern time. Farming equipmentmaker deere will report this morning and after the bell, Cisco Systems reports. That could have a big impact on thursdays trading. Sony reporting a loss. 1. 3 billion. The tsony did see an improvemen in sale which is rose by 14 to 76 billion for the year. Were seeing it right there, how many different products they made. I had a