senate banking committee will hold another hearing on jpmorgan. top regulator will say the financial firm changed its strategy aimed at containing risks starting late last year. according to prepared testimony the controller of the currency will say his agency is reviewing whether jpmorgan executives should give back compensation. due to the bank's failed hedging stramg that produced $2 billion in losses. that number stands closer to $4 billion. the nasdaq reportedly plans to make an announcement today about facebook compensation. "wall street journal" saying the exchange is expected to release details of a plan to makeup some of those losses sustained by banks and trading firms from the firm's botch ipo. the losses estimated more than $100 million. facebook is letting marketers place ads specifically in mobile versions of its social network. it wants to broaden its appeal. take a look at shares of facebook. they closed lower again yesterday. down to 25.87. now 32% below it's ipo price of $38 since going public the stock has fallen on eight of 12 trading days. joe? >> maybe they will still cancel some of these trades and get it back to 38, you know? maybe that might still happen. grass jobs we'll get h grasso, we'll get him on the phone. in political news this morning, wisconsin governor scott walker surviving a bitterly fought recall effort. the republican defeating challenger tom barrett. and so milwaukee's democratic mayor. that was the second time he beat this guy. vote saw heavy turnout across wisconsin. recall was spurred when walker passed controversial budget cutting measures which included stripping most public employees of collective bargaining reits and asking the public employees pay some of their health care and pension costs. his victory yesterday is an affirmation of political courage. >> tonight, tonight we tell wisconsin, we tell our country, and we tell people am across the globe that people want leaders to stand up and make tough decisions. >> he's the first u.s. governor to ever survive a recall vote. >> voters in two major california cities approve measures to cut retirement benefits for city workers. it happened in san jose and san diego. the votes were closely watched across the country as state and local governments are struggling with ballooning pension payments. >> president clinton said the u.s. economy is in a recession in an interview with cnbc's maria bartiromo. he urged congress to extend tax cuts which is off message due to expire at the end. year. he sawed the current tax structure wouldn't look so bad if the economy were doing better. >> still pretty low, the government's spending levels. but i think they look high because there's a recession so the taxes look higher than they would be if we had 2.5%, 3% growth and spend is higher than it would be if we had 2.5%, 3% growth because so many people getting food stamps, so many people get be unemployment. >> clinton blamed the damage on sovereign debt crisis. >> the president's office, former president's office issued clarification. they say two questions have been raised regarding president clinton's massacre view. first on extending the bush tax cuts, he supported extending all of the cuts in 2010 as part of the bill agreement but does not believe the tax cuts for the wealthiest americans should be extended again. they clarified that a bit. he sawed in the interview he doubt ad long term agreement on spending cuts and revenues would be reached until after the election. and he said the main goals for those in washington the office keep the expansion going. >> i don't know if you saw the other piece of it he walk back, almost cory bookered it again. he had a sterling reputation and then over the weekend made some other comments suggesting i woke up saw all the news reports suggesting here i was not supporting romney necessarily but supporting his business cause and it was almost as if -- >> although with maria, he did say he has a lot of friends at bain and thinks the governor did a very good job there. >> right. warren buffett sees little chance of a u.s. recession despite recent signs of weakness. when he was speaking at the economic club of washington last night he warned that could change the the effects of europe's financial crisis were to quote spill over in a big way. buffet also said both political parties deserve blame for the federal government's failure. >> create cbo report today. good piece in the editorial section of the "wall street journal". we were 40% of debt in 2008. public debt held by the public. we're at 70 right now. the highest since world war ii. we're headed to well over 100. if things don't change by 2013 we're headed to 225% of public debt. being held. so, you know, this is the cbo which is supposedly a nonpartisan. >> you also have some real appreciate if we get forced in the situation where the automatic cuts come to the defense, did you see the story about the defense contractors, lockheed martin warning that they could have to shutter some of their lines and layoff people by the beginning the year and have to let them know that one september or october. >> more importantly, did you see this? i wanted ask you, do you recognize this girl over here? >> what? >> do you recognize her? >> do you recognize her? >> she looks like she must be from "bay watch." >> do you know who that is? take a good guess. guess who this girl is? you ready. john, are you ready. get ready. go! it's the tan lady when she was younger. >> oh, no. >> really? >> they never get me who is this person and i thought, okay, is that nicole kidman. but they really got me today. she tanned. there's another picture. yeah. stay away from the -- >> tanning beds. >> what's on the -- >> economic agenda. >> i'm glad you asked that. we do have a lot of things happening. productivity and cost coming up at 8:00 eastern. then this afternoon the fed will have their beig ebook released. preparing for the next policy setting session by the central bank on the 18th and 19th of june one day after greece votes. >> you liked her. you liked that. >> i know. >> you're like -- >> the crying game. >> that's what you were most worried about. don't tell me it's a guy. >> let's get a check on the markets this morning because -- >> not that there's anything wrong with that. >> four days of losses. yesterday we saw a gain of 26 points. this morning take a look, a big rebound. dow up by triple digits. s&p up by 11 points. probably because of this ecb meeting. you're wondering what you'll hear from mario draghi. >> concerted central bank intervention. this is one thing i'll tell you. if we had -- if i called larry and rousted him out of bed, kudlow would say something it's about wisconsin. >> he would say more wisconsin. we have these half measures proposed constantly about europe that never work. i'm sure larry would tie it to an eight-point win in a state that hasn't been won by a republican since ronald reagan. >> so our good friend comes on the program yesterday. we ask him what the chances are of qe3. he done say i think more. then today in the "journal" he writes it that -- >> he was on yesterday and said no. >> he didn't say no. he didn't handicap it. today he handicaps it. >> he wanted to save it. >> read his piece and the piece didn't seem it was anything different than what steve liesman or anybody else said on friday. when you add it up it's more likely they will act but not necessarily act soon. >> do we want qe3? will the markets react positively? >> maybe a knee jerk reaction. >> what do i know? >> let's take a look at oil prices this morning again after some big pullbacks. slightly higher today up $76, 85.05 which is well above monday morning with oil prices back around $81. if you're watching the ten year at this point the yield is sitting at 1.6%. increasing gains on the yield as well. dollar this morning after everything we've seen is a mixed bag. right now it's a little lower against the euro but still sitting at 1.2495. dollar/yen is 79.06 and gold is up $17.71. >> thanks. time for the global markets report. kelly evans is standing by in london with more. kelly? >> yeah. >> hold on, what are you doing sitting down? >> if you can see behind me what we have is a special couple hours of programming. i know you guys have to do your show in the u.s. but there's a bank of england and ecb and we have special programming. i'm sitting for the report. we're seeing more risk on mood in markets. in fact pretty much by the book. we have the dollar weaker. everything from the ftse to the dax to the cac to the spain up in the range of 2%. the ibex in spain was up. euro a little bit stronger last i checked and, joe, i'm sorry i don't think wisconsin has a heck of a lot to do with the triple-digit dow move that we'll see here. we saw some talk out of china overnight on some of their journals about further interest rate cuts. europe has continued with that theme. it will continue into the u.s.. let me just say, though, this feels to me a little bit like the kind of condition you get before people expect that policy stimulus to come. we've heard a lot of people saying you know it could be time for that face dripping rally. if we don't get anything concrete out of today and we're seeing the banking proposal that would go into effect by 2015, great. if we don't get anything from the ecb or whatnot over the next couple of days you have to wonder if these -- if the return we're seeing in the rally we're starting to see will continue. handing off to you guys. if you can see the chips behind me you would see a sea of green. >> larry would say that. that doesn't mean -- >> don't make this about larry. >> i said larry kudlow if we got him up he would come over and say it was due to wisconsin. but obama's intrade is 52. i hope you're putting a little away for that million dollars i got coming to me when the media's favorite might have some trouble in november. just maybe every week put some in pre-tax. all right? >> appreciate the investment advice. >> but larry will probably say that. first thing i said it's news coming out of europe but we get news every day out of europe. sometimes it goes up, sometimes i want goes down. >> the news today, the data today wasn't that encouraging. that's why i'm talking about the stimulus theme. >> central banks. >> weaker gdp. yeah. wasn't a great mix. >> that's what we were talking about the concerted effort. all i know is that you went over there right before the biggest party that country ever had and i don't think that's a coincidence? right? you're set up for the 60 we're jubilee. oh, gee am i here? >> and wimbledon. >> followed by wimbledon and olympics. >> are there any pubs in london? >> no. i don't think so. >> you haven't spotted any. >> haven't had any guinness. no. we did have the diageo ceo on. they are announcing a big vecht in scotland, and he said it wasn't spurred by the pr trouble they had a few weeks ago, prospects of the global economy. he likes vicks, vietnam, indonesia, colombia and sub sahara. >> i thought they took the impb out of brics. but we digress. thanks, kelly. >> you like guinness? >> i do. >> we had him here. >> brilliant. >> remember -- you were here? it was good. i drank it in the morning. >> less carbs. >> did you the mojito guy. you're in trouble. >> got me in trouble. >> i felt pretty good. but it was at the end of the show. >> did you have the squawker? >> i tried it. towards the end of the show. you did it unfortunately at 6:00 a.m. >> it made 7:00 and 8:00 that much more fun. >> it did. which is not a bad thing. >> coming up we'll have this morning's national weather forecast. a live report from temp cb meeting in frankfurt. john harwood joins us live from wisconsin on scott walker's big win last night. stick around. >> tomorrow on "squawk box," global risk and your portfolio. our guest host will be larry fink, blackrock chairman and ceo. plus cftc chairman larry gensler. don't miss "squawk box" tomorrow. welcome back, everybody. if you're just waking up, look out. there's a surprise this morning. we're actually looking at the dow futures up by triple digits. those dow futures up by 107 points. s&p futures up by almost 1%. in our headlines home depot is out with news. the company says it expects its 2012 share buy back to be about $4 billion, up $500 million from its prior guidance. >> today's national forecast, alex wallace is joining us from the weather channel. >> we got more in the way of rain this morning in the eastern part of the country, this morning stretching across parts of northeast some light showers moving across new york state. heavier rains, those carolinas, back down through georgia and even into florida where we're tracking stronger storms there. active weather here into texas, we're fining out this morning between lubbock and san angelo. heavy rain and more activity off to the north, northern parts of the plains all in association with the storm system that's hanging out there in the western portions of the plain states. that's going continue to work its way towards the east slowly there. we got our storms along this boundary from texas to the east coast. cool conditions and showers out there thanks to this upper level low-hanging around. been very slow move to. we'll keep things on the cool side again today. temperatures well below average. boston nearly 15 degrees below average. d.c. quite cool. tomorrow we warm up a little bit but most of us still going remain below average. texas this boundary in place, upper level disturbance that's moving on through as well. plenty of moisture streaming on in. that will lend itself to quite a bit of rain in the next 36 to 48 hours. through friday morning this is what we anticipate, one to two inches of rain in wichita falls, abilene two to three inch, dallas less than an inch. we need some of this rain in texas, guys, so we'll take it. >> alex, thank you. >> the ecb is holding a policy meeting today, decision on rates expected about 7:45 eastern. steve liesman on "squawk" yesterday on what needs to be done in europe and who should save the day. >> you guys create x we'll give you y and we'll solve this problem. >> we have no money. >> are you happy now? this working for you? because it ain't work forge me. it ain't work forge markets. it's not working for anybody. this is not the way civilized people should be living. >> you want us to go to europe and lighten it up. who will lighten us up. >> let me finish one second. you know what? all of them still want to be re-elected. what they have to learn from latin america in the '80s none of them are surviving. >> cnbc silvia wadhwa joins us from frankfurt. steve, i don't know, we're 12,000 on the dow and he's really despondent in life in america based on what's happening in europe and he wants us to pony up big money to the imf to save you guys. do you need us to save you guys? >> reporter: well, we all need each other these days. i think that's the bottom line. americans are still not used to the fact that they are dependent on what happens in another part of the world. but aside from that, i don't really think pumping money into any of the systems is really going to do it. i think the ugly truth is if europe and probably the rest of the world wants to get out of this deep, deep hole where we dug ourselves into, i'm sorry, we have to get some kind of debt relief. that means a debt cut, that means a very ugly, very short hair cut and not only for the likes of greece but other countries because we built a pyramid of debt on top of each other that one fine day will come crashing down on us. the only choice we have and it's not a choice front load that with if affiliation by printing more and more money but it doesn't take away the problem. unfortunately as we talked about debt, i picked up with steve liesman debate there before, politicians want to get re-elected not only on your side of the pond, on our side of the pond too so they will keep pressuring the fed whether it's the ecb, bank of england to pump more money, print morgan and lo and behold at the end. day that's what they will do. that's most the end. problem. >> when is the last time someone over in europe part of the world was re-elected? >> reporter: that's a good question. they don't get re-elected period whether they give us the ugly truth or whether they give us the not so ugly untruth. that's the other part of the problem that governments at the moment are being voted out for two reasons. first of all, because people simply think they are not telling us the truth, there is some ugly truth out there, there are some painful reforms out there. but the other part of the reason why they are not being re-elected is because people don't really believe that whatever government they vote for is actually going to push through with the necessary reforms. everybody just thinks oh, well they will tweak around the edges a bit and after that we sort of merrily or unmerrily have the same disaster as before. there's a complete lack of confidence not just in the markets in the euro or eurozone there's a complete lack of confidence of the general public in the general politics, whether that's in greece or in germany or in france. people simply don't believe that the mainstream politicians are doing the job and that's why unfortunately they often resort to party, new parties on the fringes. in germany we have a party that calls themselves the pirates and they are gaining more ground. in greece you see a similar picture where parties at the left or right corner of the political spectrum gain power. but it doesn't make for stability in euroland. >> yeah. it is interesting as we see these governments falling over there. we have an election in november. we'll see whether -- we have a big space, a big ocean between where we are and where the continent is, obviously bust we'll see whether the sentiments the same. we did have a re-election yesterday, so we have the governor that usually they run every four years. this guy had to win two elections in two years but -- anyway we thank you. and one of these days i want you up on that thing like right where the -- there's a place you could be sitting like the man in the moon on the anvil of entertainment. i want to see whether those things if you twist the star if they are removable. just in case. just in case by january 1st you need to take a couple of them off of there. >> okay. but we wait for better weather. >> you might slip. all right. thanks, silvia wadhwa. this morning's top stories, scott walker's big win in wisconsin and what it means for the national landscape come november. john hardwood has he composed himself now? can he -- >> i think he's ready. >> is he ready? first as we head to break a look at yesterday's winners and losers. in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. so why should our anniversary matter to you? because for 200 years, we've been helping ideas move from ambition to achievement. and the next great idea could be yours. ♪ from ambition to achievement. optionsxpress, where you can trade your favorite products, all in one account. keep watch on the markets. or use our exclusive tools to help find ideas. it's powerful, easy-to-use technology for trading stocks, options, and futures. keep trading whether you're at home, in the office, or on the go. optionsxpress, the broker smart traders deserve. open an account today at optionsxpress.com. ♪ good morning. welcome back. welcome back to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin. making headlines, ecb decision is expected at 7:45 eastern. policymakers are widely seen at keeping rates at 1%. key event is watching everyone cb president mari