end of 2013, latest fiscal 2014. beijing strikes back to the eu over solar import tax, announcing an antidumping program into european wine. german solar stocks wide as brussels' trade commissioner tells cnbc he's aiming to create a level playing field. >> the equation that we have been making is that if we do not intervene, then the solar industry will disappear in europe. >> and samsung scores a victory in its long-running fight with apple as a key u.s. agency slaps a ban on the import and sale of older iphones and ipads. all right, a warm welcome to today's program. we kick off with the latest pmis out of the eu and the eurozone, indeed. let's bring you that. the service pmi, 47.2, a slight tickdown from the flash of 47.5, but the composite number has remained the same, 47.7. that was the flash bigger as well. joining us with thoughts and insights is chris williamson, the chief economist who helped compile these numbers. chris, where does this leave us in terms of relation to the gdp forecast? >> well, it's suggesting that eurozone's got another quarter of contraction on its hands at the moment, second consecutive quarter. we're looking at probably 0.2%, so it's nothing like as severe as we saw in 2008-2009, but there's a sheer sense that this recession is now just dragging on, and it's hard to see what's going to pull us out of it. earlier in the year, germany seemed to be growing at a strong rate and that was raising hopes that we'd get some growth drivers there that would pull the whole region out of its downturn by middle of this year. that's obviously not happening. we're in june already. and i think we're still a long way off that stabilization. >> ecb tomorrow, are we going to get further reaction to the fact that this is going to be just long, slow, drawn out, as you say? >> i think so, yes. now, draghi said they'd be ready to act if the economic communicators deteriorated. there's some confusion to what that actually means. does it mean the pmi numbers have to fall from where they are at the moment or just signal continuing decline, which they are doing at the moment? i think they're going to look at these numbers and say, well, they're signaling the easing rate of decline, the second order is improving in them, so let's wait and see. things are on course. it's just taking a little longer than they thought, things stabilizing by the end of the year. >> all right, chris, you're with us the first half of the show. we're working towards the surface numbers, pmi numbers out of the uk as well. you'll be around for that. also, we'll be on the ground in istanbul as protests have poured into a six day. the government admitted excessive force was used against demonstrators that initially have sparked the latest bouts of violence. former news international chief rebekah brooks is set to enter a plea to criminal charges tied to the phone-hacking scandal. we'll bring you a preview from outside the london court in just a few minutes. and unilever's due to invest hundreds of millions in myanmar over the next decade. at 11:30 cet, we'll go for a first on cnbc interview with harish manwani. and as fed tape talk continues to influence market movements, we'll find out how one of the world's biggest money managers thinks about the end of qe. howard marks, they've got $71 billion under management, well worth listening to the man who will join us at 11 cet. first up, everything about abenomics has been big and bold, but shinzo abe's latest reform plan has failed to impress investors. the nikkei down more than 3.8% today, and not that it's lacking ambition. the japanese prime minister's promising to raise incomes by 3% annually, triple infrastructure exports by 2020 and double farm exports in the same period. he also wants to restart nuclear reactors, allow online drug sales, move more pension fund holdings into equities and set up economic zones to boost foreign investment. what it appeared to be missing was the element of surprise since the moves were pretty well flagged in advance. kerri's in tokyo with her thoughts and analysis. >> reporter: hi, thanks a lot. we're very close to bear market territory for the equity market, just a whisper away, 13,750 is that number. this loss that we saw today, this is the fifth time in about two weeks. this speech by shinzo abe was unable to sort of reverse this down trend that's been in place for two weeks. i think the details and the specifics of the plan have been coming out in recent weeks. so, in that sense, i don't think anyone was expecting a bombshell from the prime minister. i think people were expecting some sort of immediacy in some of the plans, and many of the numerical targets that were outlined today are targets for 2020, which seems like a long way off, even if you factor in the part that, perhaps, this government will likely win this next election in a couple weeks' time, and that means there will be no election for the next three years. but 2020 seemed to lack the sense of immediacy that maybe some investors were hoping for. having said that, i think the speech outlines and highlights the fact that we're getting into an election. in less than a month, the campaigning is likely to start, and i think this was his way of addressing some of the concerns about wage growth. i mean, here on one hand, the bank of japan is going to try and push up inflation to 2% and profitability seems to be returning because you can't underestimate the reversal in the yen that we've seen, but we've had limited numbers on the wage front in terms of base salaries going up, although there are indications that overtime pay is starting to pick up. so, i think this question of raising income by 3% every year over the ten years is maybe some way -- is a way for the prime minister to address that and some of the concerns you're getting at the grassroots level, but for the day, it wasn't enough, it triggered the u-turn in the dollar/yen and hence a brutal sell-off in the equity market here. >> okay, thanks for that. we'll catch you again later. joining us for more from tokyo, charles beasley, ceo at niko asset management. still with me in the studio in london, chris williamson, chief economist at markit. charles, good to see you. does this suggest it's better to travel than arrive with japanese policy? >> well, ross, i think what's interesting is the execution of a political strategy that abe is discussing with his people at the moment. he's setting out his stall, he's using repetition, which is a tactic that leaders very often employ, really to make sure that people understand what it is he's doing. i don't think he's focusing on the markets and i don't think he should be. he has the election coming up. we expect him to win it. i've said this to you in the past, pretty comfortably. and therefore, this third arrow, it appears, which is not a huge option between one and three, is going to be implemented, and i think he's just setting out his stall in a way that reagan or thatcher would have set theirs out when they were trying to get their people to understand what needs to be done. >> so, you're saying the disappoint today is not warranted? >> no, i'm not suggesting it's not warranted. traders do things for their own reasons. there's been an awful lot of, i think, froth in the market over the last month since you and i last spoke, and i suspect that quite a lot of the profits that, don't forget, were up as high as 60% year on year, now off from its high around 15%, is what you would expect to see. a lot of that i suspect is also foreign hedge fund money that arrived in the market over the last quarter. so, we expected to see sell-offs. we didn't expect to see new news today. i don't think today was the day for it. so, i think the volatility may continue for a while now. but these may look like good entry levels over the next, for the next six to nine months. >> do you think, some people talked about we need policies to boost income from overseas assets, that needs to be part of the mix. what do you think? >> well, i've said in the past that i think that the import-export component of abe's policies are important to consider, both in terms of japan exporting capital, but also to import capital in these public-private partnerships which abe is referring to as part of his deregulation and reform act. you know, for example, there are 89 airports in japan. only three of them are profitable. you know, i think that the ability to attract foreign capital and foreign equity into these infrastructure projects will be a centerpiece. i think it's used as an accelerant as much as anything else. >> chris, let's just bring you in here. what's your sense when you look at the pmis out of japan? has there been any impact yet on the economy or on sentiment? >> absolutely, absolutely. so, we had the manufacturing pmi out, which is at 21-month high. that's quite contentious, though, because whereas japan's seeing the strongest growth in nearly two years, the rest of asia, when you strip out japan pmi there, showed the first decline for seven months. so, that's always going to raise tensions about currency wars and so forth. so, the secret is, well, the key is that japan has to raise domestic demand. and if its own economy grows and adds to global gdp, then everyone will put up with that yen weakness. just this morning, we have the japanese services pmi out, which is at a record high. it's showing very strong growth in the domestic economy, firms taking on more stuff, firms having to pay people more as well and confidence at the highest we've seen since the crisis struck. so, there is this sense that abenomics, and the companies themselves are telling us this is what is attributing to it. there's a feel-good factor, abenomics, they're saying. >> as far as you're saying, the survey today shows confidence is feeding through to companies investing domestically and hiring more people? >> absolutely. spending more money on marketing, investing in their expansions through buying more capital equipment and taking on more staff. so, this is a short-term increase. we're looking -- what was suggested was a 0.9%, 3.5% annualized gdp increase in the first quarter. we're suggesting that accelerated maybe to 4% annualized in the second quarter, but this is the short-term gain that pretty much everyone was expecting. these are like the two arrows. the third one is that long-term change, because what we've seen throughout the crisis, the unemployment rate span hasn't fallen -- sorry, hasn't risen much above 4%. so, that's a sign of just these rigidities in the labor market and we need those rigidities to come down so pay growth can escalate. that needs to change, and i don't think anyone was expecting measures today to come through, so i'm a bit surprised at this continued sell-off. i think there's much longer to wait. >> charles, okay, the confidence part is starting to return. as you say, we've got to wait for the measures to be fully implemented as well. where does that leave us now, you know, over the next few months with the nikkei and the yen correlation? >> i'm really not sure if anybody has a very good answer to that, because there is a huge impact that i think these foreign capital flows have been having on the market's volatility, but what are we saying? we've said, i think, before, that you know, 15,000 is within reach and then on up, and we said that we thought the yen would trade pretty comfortably between 95 and 105 and drift up to sort of the 120 area. you know, those are relatively long-term calls, but over the next few months, it's important to get the election out of the way. growth rates are forecast much higher. a lot of international economists were looking at japan getting sort of an anemic 0.5% growth rate as late as december last year, but now we're revising that up to 2%. profitability of companies that we talked to over here is absolutely growing, and investor confidence, i think, will improve throughout the summer as well. so, as i said earlier, i think this may turn out to be an entry point for the second wave of money. and don't forget, an awful lot of domestic investors have not yet participated in this. so, i think it's quite a lot of retail money and the fund market money to go. >> charles, always good to see you. thanks for that. charles beazley joining us from tokyo. chris sticks around. don't forget, prime minister abe has fired his third arrow, but do you think it's hitting the bull's eye or not? let us know. take our poll at cnbc.com. at the same time, japan could be at the risk of stagflation and abegeddon, according to the ubs chief investment officer also on cnbc.com. find out why he thinks storm clouds are brewing over the land of the rising sun and what a abegeddon might look like. with all these terms as well like abenomics, abegeddon making the rounds, we want to know, what is your favorite or most hated buzz word of the market at the moment? e-mail us at worldwide@cnbc.com or tweet me. let's kick off the "global markets report" in asia. chloe's got the latest from singapore. >> yeah, we're just running out of these fancy words to put together -- abenomics, abegeddon -- at least as far as the verdict was concerned, it was very, very volatile, super volatile, but in the end, the markets shed 3.8%. it's also interesting how the jgb yield ticked higher up to 0.8 0.86%. remember, we have a 30-year debt auction tomorrow and how that goes could be another verdict on mr. abe's abenomics. the key thing to note here is that the super longs have been selling off. and remember, despite repeated vows from the bank of japan that they intend to keep the rates down at the longer end of the curve, and this announcement only came quite recently, and that has been a big source of disappointment. i think one thing to look out for as far as why the markets sold off in such a big fashion was that they had all these fancy numerical targets, but what was really missing was people were looking out for some sort of tax relief, because as they tried to move ahead with their ambitious plans to get reform efforts moving, they actually -- they're going to raise taxes in just under a year's time, and this is what has the investment community quite nervous about the whole thing. there is also another element of the china growth story that is really not performing. take a look at shanghai and also hong kong. that market selling off 1%. shanghai down five in a row, banks underperforming in the mainland. interesting to know how the state-run media is saying loan growth figures for may could undershoot. and remember, there was quite a bit of drainage in the money markets yesterday as well, so maybe no easing on the horizon? so, it's turning out to be quite a bit of a toxic combination. australia down 1.3%, gdp figures undershooting as well. overall, as we possibly move into a higher rate and stronger dollar environment, asia might very well underperform. past experiences have told us, 2004 and 1994. back to you. >> chloe, thanks for that. 7-2 decliners out-pacing advancers, the dow jones 100. ftse down 33 points, was up 33 points yesterday, which should have wiped out losses from the previous day. xetra dax down a third and the ftse mib up 0.4% at the moment, reports that many more will be looking for bond markets and banks over the next five years for funding. we'll talk about that later. bond markets, the tick up on gilds. pmi will be expected to be cut to 53 in 50 minutes. we'll look at that. treasury yields 2.13%, comments coming out from fed officials, esther george fairly hawkish talking about earlier tapering. and on the currency markets, keep your eyes on dollar/yen, 99.74 is where we are at the moment. aussie/dollar back under pressure at 95.85. gdp weaker than expected for the first quarter. there was consensus of growth for 0.8% and euro/dollar at the moment 1.3079, pretty steady below that 1.31 level. protests continued in istanbul for the straight fifth night. this as u.s. vice president joe biden's call for the country's government to respect the rights of those on the streets. nbc's jim maceda has got more for us from istanbul. jim? >> reporter: hi, ross. nice to be with you. well, nato countries, especially the united states, have expressed concerns over the police crackdown and violent protests here. as you mentioned, vice president biden said effectively yesterday that turkey doesn't have to choose between economic success and democracy, that it can have both, but that means respecting the rights of political opponents as well. the turkish government today is supposed to meet with a group of protesters and academics to discuss the future of the square behind me which is at the heart of this latest crisis. we will see whether those talks help to cool things down. meanwhile, several trade unions and civic groups have joined a growing strike in support of protesters. so, we're watching that as well to see if that gains any traction. and while it is calm this morning on the square, thousands filled it again for the fifth night running last night. the atmosphere was festive, really, lots of singing and dancing, families came out to enjoy it. and overall, while there were a few reported clashes between protesters and riot police in istanbul and other cities, there were no new reports of deaths or serious injury. and the clashes do seem to have abated. ross? >> jim, thanks very much for that for now. we'll catch you a little later. also still to come, once in charge of writing the headlines, now she's making them. rebekah brooks, former boss of news international, is back in court. we'll have the latest after this. i want to make things more secure. 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[ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪ now, the former chief of news international is appearing in court today. karen is at the court with the details. >> reporter: thanks, ross. rebekah brooks has already arrived here at court this morning. the former boss of news international didn't give any indication of which way she intends to plead. in fact, she's very tight-lipped on the way in. i tried to have a conversation with her, but to no avail. in terms of the charges she's facing today, there are three sets of charges that relate to phone-hacking allegations, also bribing public officials to try and access information for stories. but the other part is perverting the course of justice, and this dates back to 2011 when police investigators were conducting their investigations, trying to gather material so the allegations relate to whether court material or computers were actually hidden from the police at the time. now, there are a string of other former executives from news international also here today and from "news of the world," so, this is a very, very big court case. in fact, there are about nine defendants. we saw when rebekah brooks arrived a short time ago, she arrived with her husband, former editor of news of america and spin doctor for the prime minister. he is due to appear as well as four other workers at the now-defunct newspaper "news of the world." the allegations date back to 2002 when a teenager went missing and it's alleged that "news of the world" hacked into her voice mail in the days during her disappearance, which may have impacted the police investigation. since then, there's been a big public fuel, the paper's been closed, but allegations persisted that perhaps the newspaper used these sorts of tactics in terms of accessing the voice mails of cele