Transcripts For CNBC Worldwide Exchange 20140626 : vimarsana

Will justify the takeover. This is an opportunity to become the worlds number two player in the old index business. Mark carney is expected to unveil a host of measures to reign in lending now. And the latest ifo report forecast as growth stateside contracts more than expected. This as the two National Teams prepare to face off in todays highly anticipated world cup match. Youre watching worldwide exchange, bringing you Business News from around the globe. Hello. Hello, everybody. Welcome. Welcome to todays show. To todays worldwide exchange. Ive never worked with you in the flesh. Theres a first time for everything. This is lovely. I know. How long are you in london for . Im jetting off back to asia later on tonight. I think my family is forgetting what i look like. No, theyre all watching from back home, probably. Were taking very good care of him here. Were looking forward to the next few hours. We have loads of whats going on. Absolutely. Markets arent really reflecting it. We have a lot of activity being done, a lot of deals being done. Yeah. Quite surprising. Gdp in the u. S. Is backwards looking. Its to be expected because of the polar vortex, of course growth is going to be worse than expected. But the market is shrugging off this. Arguably, they have to right to do so. You but what happens when theyre about to signal a rate hike . I know. But theyre not for the time being. And by the looks of things, the ecb is going to be accommodative for an even longer period of time. I was talking to somebody who told me the ecb is only just Getting Started with its stimulus. Anyway, we have loads to talk about. Japanese auto partsmakers facing a multi Million Dollar fine. Well find out who is affected. Google unveiling a whole host of new gadgets including smart watches, tv boxes, incar controls. And king for a day, several hundred homeless new yorkers are treated to high dining by a wealthy chinese businessman. Yesterday, find out what was on the menu. Plus, online romance gets sophisticated. Match. Com teams up with high i. Q. Club mensa. We talk brains versus beauty. Weve got both of those. You definitely do, so but i think that no, but i mean, theres something to that, you know . When you choose a dating website where people are smarter. I dont know. Sounds like some weird i love it. Anyway, new York Attorney general Eric Snyderman is skewing barclays for a securities fraud alleging the bank high speed traders using its venue while misleading institutional investors. The suit claims barclays falsified documents removing them the High Frequency firm trade bot would allegedly minimize the appearance of traders. Barclays drew its dark pool into the largest of the United States by telling investors that they were providers while in fact they were predators there at barclays invitation. Snyderman is suing under the new york act which gives extraordinary powers to the attorney general. He u. S. Legal action is creating division between u. S. And european banks. I think it is making the european banks feel like second class citizens with respect to the United States. Were seeing a lot more scrutiny. I would say, however, that a lot of the european banks are stepping up their government and theyre really taking much more seriously how they structure their north american board, their north American Government and how theyre approaching the risk, which they have not done with the same degree of regular historically. So it will have longer term a much more positive impact. I think the punch line here is we need to be by one Global Banking system. U. S. Owned and u. S. Regulated versus european regulated. Harry is outside the bank of england looking at this, as well. What we know about these allegations against barclays, talk us through some of the main points we should be aware of. I think first and foremost, you have to say its a very dark day again for barclays investors who are seeing another scandal unfold before them. Eric schneiderman up for reelection. This is somewhat political, it seems, as it always is with the u. S. Attorney general and the uk banks. Barclays was the number two players in this field and some of these allegations are man th in after bob diamond seems to give the bank a fresh imagine. He is very keen on things like technology, which is supposed to be about what all things are about in the future. Truth be told, a third of its investment has come from the exchange. You have this massive restructuring just a couple of months ago where they curtailed a lot of their businesses, theyre borrowing a lot of people, especially in europe and asia, and their cash cow has been the u. S. And thats going to be very difficult when the regulator is breathing down your throat. So remember, it wasnt long ago we saw rbs say they are going to shrink their u. S. Business so they wouldnt have to hold more capital as directed by the fed. So there is definitely something in it. U. S. Regulators versus european banks. Barclays on the defensive once again. Helia, thank you so much for that. Well get back to you later on in the program for the Financial Stability reports. Peribas is facing issues. Theyre expected to plead guilty to the charges and pay 9 billion as part of the settlement. This is what the stock is doing, seems to be shrugging off that public publicity, up by more than 1 . In other news, the fed has sent a warning out to u. S. Banks telling them to expect tougher stress tests in the future. The fed governor said banks would be subjected to new risk assessments including a closer look at macro risk events. Truillo added that stress tests would be incorporated into regular supervision of the banks instead of just an annual event. Now in some other corporate news, the London Stock Exchange is buying Frank Russell for 1. 6 billion pounds. They revealed a rights issue in order to raise capital. Frank russell is known for its indexing business which includes the russell 2,000. The tie up will see 5. 2 dl worth of benchmarks. We spoke to the lse ceo earlier this morning and this is what he had to say about the deal itself and why he thinks its going to be a success. This deal will be created in year one. It has Strong Financial dynamics. Clearly the institution and shareholders that we have spoken to and i think the action is testimony to the success, the as soon as shareholders that we have spoken to highly supportive. So the financial drivers of these transactions owning in great part as you can imagine to the very substantial cost synergies bringing together players that is essentially provide the same services across the atlantic. So we have great opportunities from a technology standpoint, disbeautiful standpoint, creating deals for our clients to propose a very, very attractive set of products underpinned by very Efficient Technology which the lobbed Stock Exchange specializes in. Now, at 11 30 cet, the bank of england will plush its financial abilities reports. Governor mark carney is expected to unveil a string of measures lending. Lets get back out to helia outside the bank of england. I have a feeling we wont be hearing the last on this, helia. No. Of course, rbs has introduced its own cap. That wont just be about mortgages, but a lot of the focus is on the mortgage element of it because what were expecting is a variation of some macro tools designed to slow down rising house prices and deflate the bubble. Im joined now by richard willhouse chief economist of the association. Richard, is today going to be a down script . No. I think to thing to note is some of the heel is coming out of the data. Is that due to changes in the Mortgage Market review, though . We have heard lots of noise about banks being administratively slow in dealing with those changes. Yeah. I think a lot of the banks moved to xwlempt the Mortgage Market review early in the year. Its certainly a factor in the markets slowing down. There is other evidence, though, the top end of the market is slowing. New supply is coming down slightly. And can you drill it down . Weve been swinging. The unrelikeble boyfriend that our governor is has been swinging from dovish to hawkish back to dovish. What have we been seeing in terms of these macro changes . A month ago, he was making sure that these could be used in the Housing Market. Its kind of changed that a little bit since then at the imagine house. I dont think i think the point to know is that theyre going to be very cautious. Theyre testing their way here. These are new tools. We dont know how they work. We think theyll take a cautious set of steps. And is it right for the bank of england to take what many would think is quite a political move, you know, the shadow spc voted against directive powers because it shouldnt be for the bank to decide who does and doesnt get a mortgage. And london and lti cap could mean one in five borrowers dont get the mortgage they want. Is it right for the bank to intervene . Well, that leads you to the question about why the Housing Market is behaving the way it is. Fundamental in the Housing Market is the impart between supply and demand and the bank cant do anything about that. If you look at the underlying credit, i dont think that i youre right, these are very political instruments. Would they act to do something to constrain the markets . I doubt it. Thank you very much, richard. Well be hearing from the governor a bit later on today and well see what kind of creative mixture he can come up with to try and slow down that house market, maybe potentially before raising rates later this year. But not to an extent that it is going to be too political. Helia, thank you very much for that. Well be hearing more from helia a bit later. Tune in for live cover aemg of the bank of englands Financial Stability reports on this show at 11 30 cet. Just get something flashes out on a preclosed statement. Essentially what theyre saying is that Financial Markets continue to be impacted by challenging external environments. They are talking about how income is expected to be down on the first half. Remember Standard Chartered is strongly correlated to emerging markets and we have seen some rotation back into the em. So you have to ask yourself at what point is it going to stop . Sure. Just looking at the shares, were definitely trading down on the back of the news, off 3 . Other impairments include some 75 million in relation to valuation impairment. Loan impairment is expected to be up by a High Percentage during the first half of 2014. But that is in line with expectations. The loan impairment charges always look quite closely out. It is expected to be down by around 20 . Yep. And i think thats one of the reasons why the shares are underperforming quite sharply. Its all fairley down beat, which surprise he me because we are seeing some sign of a turn around in the asian markets. And the biggest picture here, louisa, is that the markets are rewarding those deficit countries that are knuckling down for the hard task of reform. The company is talking about the exclusive loan impairment and adjustment. The uk levy will be down on 2013, as well. So a predown beat update from Standard Chartered. Profits are expected to be higher than in the second half compared to last year. The loan impairment will be in the high teens and begs the question whether i have enough in reserve to cover any further debt that may be going sour. Well keep you abreast of more Standard Chartered developments as they happen. Still to come on the show, camerons loan battle. Find out why the uk Prime Minister will be increasingly feeling boxed in. Were live in belgium in a moment. Fifteen minutes could save you fifteen percent or more on car insurance. Yeah. Everybody knows that. Did you know there is an oldest trick in the book . What . Trick number one. Lookest over there. Ha ha. Madeest thou look. So endeth the trick. Hey. Yes. Geico. Fifteen minutes could save you. Well, you know. Hi, everybody. Welcome back. Im Louisa Bojesen and this is Sri Jegarajah. The eu could be handing one of its top jobs to juncker. Cameron, though, looks increasingly isolated in his opposition to the appointment in the last 24 hours. The Prime Ministers of both sweden and the netherlands have confirmed that theyre going to be backing juncker. Julia, if you were just tuning on and for some reason havent been following this in great detail, why the opposition against juncker . Thats a really great question. Weve been asking that question for the last two weeks, it seems. The other question i had add to that is whether jeanclaude tips the balance in the eu. David cameron has been saying juncker is a federalist, that he doesnt represent change in europe. This is something that he needs to sell back to the uk voters back at home. The fact that he has experience here is something that counts for him. He speaks french, he speaks german, he speaks english. He was the head of the group at the peak of the crisis and he was sometimes seen as someone here that could create solutions and negotiate results when there is a fear that decisions wouldnt actually be made. And as far as i can see, its very difficult to see why actually he would tip the balance at all as far as the uk membership of the eu is concerned. He is somebody that can push for compromise as we go forward. He is one of the few people during the election that has a positive thing to say about the uk and he talked about how important it is to keep the uk in. As far as David Cameron is concern, it seems over the past few weeks theres been a chang. Its now less about the results and more about the fight and that hes sticking his heels in. I think thats why David Cameron is concerned. He needs to work out now if this vote goes ahead, he loses and ultimately he has to work out how he works with juncker rather than bleating about the reasons he cant. Thank you very much for that, julia. Back to our european markets. Here this morning in trade, we will call it relatively flattish on the open here in europe. Pretty flat story on the stoxx europe 600 as indicated behind me. We closed out yesterday on a isolately mixed note. What were seeing this morning is a delicate start to trade. Lets recap some of our main european markets, as well. The ftse 100 very, very flat. 6733 even. The xetra dax is flat and the cac is flat, as well. So that really says it all here in european trade today. Lets talk about some of the specific stories that are drawing our attention this morning. Youve got barclays shares trading lower, as the new York Attorney general is suing the lender for security fraud. Standard charter is off by almost 3 , trading lower after the disappointing trading update. The firm says that the first half has been disappointing. It says income is expected to be lower than what we saw last year. The London Stock Exchange bucking the trend higher by 5. 5 . Its buying Frank Russell for 1. 6 billion pounds. The lse unveiled a near 11 billion pounds rights issue in order to raise capital. Then youve got the booing party over here up by approximately 4 in trading. Bloomberg earlier reported that the Online Gambling Company Appointed Deutsche Bank to explore some sales options. The company theyve issued the statement since refuting that. They say they have no plans to break up or to sell the company. Now, when it comes to the currency markets and what were seeing in our cross rates again, very flattish trade out there. The euro dollar a little bit lower at the moment. 1. 36 and a bit. We had set up very weak print on the gdp yesterday, the First Quarter gdp data. Some saying a lot of it was technical and it had to do with the sector. On the back of that, we did see the dollar sitting substantially wbl sitting at onemonth lows against some of the major currencies out there. We need to recap whats been taking place in the asian markets overnight, sri. Absolutely. Taking their lead from wall street, which was a fairley robust session all things considered, the market seemed to shrug off that First Quarter gdp number as disappointing and negative as it was. And the move really is that were going to see more of the same from the fed. So the fed induced rally and the momentum is going to continue in the u. S. Markets, feeding through to asia. The nikkei 225 under kospi. Solid at the close. And the shanghai composite up by almost 0. 7 . The outperformance today, s p asx 200 up by almost 1. 2 . Youve got to ask yourself, given this back off in u. S. Yields, which were weaker, that has really helped Risk Appetite and its helped the Property Developers in shanghai and also in hong kong. Essentially one of the outperformance day in the asian markets, as well. What continues to keep a lid on these markets and you can apply this on a global basis, as well. Here is what is happening with the price of oil, which remains quite elevated and that continues to be a big risk. That continues to sap Risk Appetite, as well. Louisa, back to you now. Sri, loads more to come on the show, of course, because were talking about the bank of england and whether or not its preparing to take the Housing Market off the burner. Well find out what mark carney could be cooking ahead of report. Find us on twitter. National Teams<\/a> prepare to face off in todays highly anticipated world cup match. Youre watching worldwide exchange, bringing you Business News<\/a> from around the globe. Hello. Hello, everybody. Welcome. Welcome to todays show. To todays worldwide exchange. Ive never worked with you in the flesh. Theres a first time for everything. This is lovely. I know. How long are you in london for . Im jetting off back to asia later on tonight. I think my family is forgetting what i look like. No, theyre all watching from back home, probably. Were taking very good care of him here. Were looking forward to the next few hours. We have loads of whats going on. Absolutely. Markets arent really reflecting it. We have a lot of activity being done, a lot of deals being done. Yeah. Quite surprising. Gdp in the u. S. Is backwards looking. Its to be expected because of the polar vortex, of course growth is going to be worse than expected. But the market is shrugging off this. Arguably, they have to right to do so. You but what happens when theyre about to signal a rate hike . I know. But theyre not for the time being. And by the looks of things, the ecb is going to be accommodative for an even longer period of time. I was talking to somebody who told me the ecb is only just Getting Started<\/a> with its stimulus. Anyway, we have loads to talk about. Japanese auto partsmakers facing a multi Million Dollar<\/a> fine. Well find out who is affected. Google unveiling a whole host of new gadgets including smart watches, tv boxes, incar controls. And king for a day, several hundred homeless new yorkers are treated to high dining by a wealthy chinese businessman. Yesterday, find out what was on the menu. Plus, online romance gets sophisticated. Match. Com teams up with high i. Q. Club mensa. We talk brains versus beauty. Weve got both of those. You definitely do, so but i think that no, but i mean, theres something to that, you know . When you choose a dating website where people are smarter. I dont know. Sounds like some weird i love it. Anyway, new York Attorney<\/a> general Eric Snyderman<\/a> is skewing barclays for a securities fraud alleging the bank high speed traders using its venue while misleading institutional investors. The suit claims barclays falsified documents removing them the High Frequency<\/a> firm trade bot would allegedly minimize the appearance of traders. Barclays drew its dark pool into the largest of the United States<\/a> by telling investors that they were providers while in fact they were predators there at barclays invitation. Snyderman is suing under the new york act which gives extraordinary powers to the attorney general. He u. S. Legal action is creating division between u. S. And european banks. I think it is making the european banks feel like second class citizens with respect to the United States<\/a>. Were seeing a lot more scrutiny. I would say, however, that a lot of the european banks are stepping up their government and theyre really taking much more seriously how they structure their north american board, their north American Government<\/a> and how theyre approaching the risk, which they have not done with the same degree of regular historically. So it will have longer term a much more positive impact. I think the punch line here is we need to be by one Global Banking<\/a> system. U. S. Owned and u. S. Regulated versus european regulated. Harry is outside the bank of england looking at this, as well. What we know about these allegations against barclays, talk us through some of the main points we should be aware of. I think first and foremost, you have to say its a very dark day again for barclays investors who are seeing another scandal unfold before them. Eric schneiderman up for reelection. This is somewhat political, it seems, as it always is with the u. S. Attorney general and the uk banks. Barclays was the number two players in this field and some of these allegations are man th in after bob diamond seems to give the bank a fresh imagine. He is very keen on things like technology, which is supposed to be about what all things are about in the future. Truth be told, a third of its investment has come from the exchange. You have this massive restructuring just a couple of months ago where they curtailed a lot of their businesses, theyre borrowing a lot of people, especially in europe and asia, and their cash cow has been the u. S. And thats going to be very difficult when the regulator is breathing down your throat. So remember, it wasnt long ago we saw rbs say they are going to shrink their u. S. Business so they wouldnt have to hold more capital as directed by the fed. So there is definitely something in it. U. S. Regulators versus european banks. Barclays on the defensive once again. Helia, thank you so much for that. Well get back to you later on in the program for the Financial Stability<\/a> reports. Peribas is facing issues. Theyre expected to plead guilty to the charges and pay 9 billion as part of the settlement. This is what the stock is doing, seems to be shrugging off that public publicity, up by more than 1 . In other news, the fed has sent a warning out to u. S. Banks telling them to expect tougher stress tests in the future. The fed governor said banks would be subjected to new risk assessments including a closer look at macro risk events. Truillo added that stress tests would be incorporated into regular supervision of the banks instead of just an annual event. Now in some other corporate news, the London Stock Exchange<\/a> is buying Frank Russell<\/a> for 1. 6 billion pounds. They revealed a rights issue in order to raise capital. Frank russell is known for its indexing business which includes the russell 2,000. The tie up will see 5. 2 dl worth of benchmarks. We spoke to the lse ceo earlier this morning and this is what he had to say about the deal itself and why he thinks its going to be a success. This deal will be created in year one. It has Strong Financial<\/a> dynamics. Clearly the institution and shareholders that we have spoken to and i think the action is testimony to the success, the as soon as shareholders that we have spoken to highly supportive. So the financial drivers of these transactions owning in great part as you can imagine to the very substantial cost synergies bringing together players that is essentially provide the same services across the atlantic. So we have great opportunities from a technology standpoint, disbeautiful standpoint, creating deals for our clients to propose a very, very attractive set of products underpinned by very Efficient Technology<\/a> which the lobbed Stock Exchange<\/a> specializes in. Now, at 11 30 cet, the bank of england will plush its financial abilities reports. Governor mark carney is expected to unveil a string of measures lending. Lets get back out to helia outside the bank of england. I have a feeling we wont be hearing the last on this, helia. No. Of course, rbs has introduced its own cap. That wont just be about mortgages, but a lot of the focus is on the mortgage element of it because what were expecting is a variation of some macro tools designed to slow down rising house prices and deflate the bubble. Im joined now by richard willhouse chief economist of the association. Richard, is today going to be a down script . No. I think to thing to note is some of the heel is coming out of the data. Is that due to changes in the Mortgage Market<\/a> review, though . We have heard lots of noise about banks being administratively slow in dealing with those changes. Yeah. I think a lot of the banks moved to xwlempt the Mortgage Market<\/a> review early in the year. Its certainly a factor in the markets slowing down. There is other evidence, though, the top end of the market is slowing. New supply is coming down slightly. And can you drill it down . Weve been swinging. The unrelikeble boyfriend that our governor is has been swinging from dovish to hawkish back to dovish. What have we been seeing in terms of these macro changes . A month ago, he was making sure that these could be used in the Housing Market<\/a>. Its kind of changed that a little bit since then at the imagine house. I dont think i think the point to know is that theyre going to be very cautious. Theyre testing their way here. These are new tools. We dont know how they work. We think theyll take a cautious set of steps. And is it right for the bank of england to take what many would think is quite a political move, you know, the shadow spc voted against directive powers because it shouldnt be for the bank to decide who does and doesnt get a mortgage. And london and lti cap could mean one in five borrowers dont get the mortgage they want. Is it right for the bank to intervene . Well, that leads you to the question about why the Housing Market<\/a> is behaving the way it is. Fundamental in the Housing Market<\/a> is the impart between supply and demand and the bank cant do anything about that. If you look at the underlying credit, i dont think that i youre right, these are very political instruments. Would they act to do something to constrain the markets . I doubt it. Thank you very much, richard. Well be hearing from the governor a bit later on today and well see what kind of creative mixture he can come up with to try and slow down that house market, maybe potentially before raising rates later this year. But not to an extent that it is going to be too political. Helia, thank you very much for that. Well be hearing more from helia a bit later. Tune in for live cover aemg of the bank of englands Financial Stability<\/a> reports on this show at 11 30 cet. Just get something flashes out on a preclosed statement. Essentially what theyre saying is that Financial Markets<\/a> continue to be impacted by challenging external environments. They are talking about how income is expected to be down on the first half. Remember Standard Chartered<\/a> is strongly correlated to emerging markets and we have seen some rotation back into the em. So you have to ask yourself at what point is it going to stop . Sure. Just looking at the shares, were definitely trading down on the back of the news, off 3 . Other impairments include some 75 million in relation to valuation impairment. Loan impairment is expected to be up by a High Percentage<\/a> during the first half of 2014. But that is in line with expectations. The loan impairment charges always look quite closely out. It is expected to be down by around 20 . Yep. And i think thats one of the reasons why the shares are underperforming quite sharply. Its all fairley down beat, which surprise he me because we are seeing some sign of a turn around in the asian markets. And the biggest picture here, louisa, is that the markets are rewarding those deficit countries that are knuckling down for the hard task of reform. The company is talking about the exclusive loan impairment and adjustment. The uk levy will be down on 2013, as well. So a predown beat update from Standard Chartered<\/a>. Profits are expected to be higher than in the second half compared to last year. The loan impairment will be in the high teens and begs the question whether i have enough in reserve to cover any further debt that may be going sour. Well keep you abreast of more Standard Chartered<\/a> developments as they happen. Still to come on the show, camerons loan battle. Find out why the uk Prime Minister<\/a> will be increasingly feeling boxed in. Were live in belgium in a moment. Fifteen minutes could save you fifteen percent or more on car insurance. Yeah. Everybody knows that. Did you know there is an oldest trick in the book . What . Trick number one. Lookest over there. Ha ha. Madeest thou look. So endeth the trick. Hey. Yes. Geico. Fifteen minutes could save you. Well, you know. Hi, everybody. Welcome back. Im Louisa Bojesen<\/a> and this is Sri Jegarajah<\/a>. The eu could be handing one of its top jobs to juncker. Cameron, though, looks increasingly isolated in his opposition to the appointment in the last 24 hours. The Prime Minister<\/a>s of both sweden and the netherlands have confirmed that theyre going to be backing juncker. Julia, if you were just tuning on and for some reason havent been following this in great detail, why the opposition against juncker . Thats a really great question. Weve been asking that question for the last two weeks, it seems. The other question i had add to that is whether jeanclaude tips the balance in the eu. David cameron has been saying juncker is a federalist, that he doesnt represent change in europe. This is something that he needs to sell back to the uk voters back at home. The fact that he has experience here is something that counts for him. He speaks french, he speaks german, he speaks english. He was the head of the group at the peak of the crisis and he was sometimes seen as someone here that could create solutions and negotiate results when there is a fear that decisions wouldnt actually be made. And as far as i can see, its very difficult to see why actually he would tip the balance at all as far as the uk membership of the eu is concerned. He is somebody that can push for compromise as we go forward. He is one of the few people during the election that has a positive thing to say about the uk and he talked about how important it is to keep the uk in. As far as David Cameron<\/a> is concern, it seems over the past few weeks theres been a chang. Its now less about the results and more about the fight and that hes sticking his heels in. I think thats why David Cameron<\/a> is concerned. He needs to work out now if this vote goes ahead, he loses and ultimately he has to work out how he works with juncker rather than bleating about the reasons he cant. Thank you very much for that, julia. Back to our european markets. Here this morning in trade, we will call it relatively flattish on the open here in europe. Pretty flat story on the stoxx europe 600 as indicated behind me. We closed out yesterday on a isolately mixed note. What were seeing this morning is a delicate start to trade. Lets recap some of our main european markets, as well. The ftse 100 very, very flat. 6733 even. The xetra dax is flat and the cac is flat, as well. So that really says it all here in european trade today. Lets talk about some of the specific stories that are drawing our attention this morning. Youve got barclays shares trading lower, as the new York Attorney<\/a> general is suing the lender for security fraud. Standard charter is off by almost 3 , trading lower after the disappointing trading update. The firm says that the first half has been disappointing. It says income is expected to be lower than what we saw last year. The London Stock Exchange<\/a> bucking the trend higher by 5. 5 . Its buying Frank Russell<\/a> for 1. 6 billion pounds. The lse unveiled a near 11 billion pounds rights issue in order to raise capital. Then youve got the booing party over here up by approximately 4 in trading. Bloomberg earlier reported that the Online Gambling<\/a> Company Appointed<\/a> Deutsche Bank<\/a> to explore some sales options. The company theyve issued the statement since refuting that. They say they have no plans to break up or to sell the company. Now, when it comes to the currency markets and what were seeing in our cross rates again, very flattish trade out there. The euro dollar a little bit lower at the moment. 1. 36 and a bit. We had set up very weak print on the gdp yesterday, the First Quarter<\/a> gdp data. Some saying a lot of it was technical and it had to do with the sector. On the back of that, we did see the dollar sitting substantially wbl sitting at onemonth lows against some of the major currencies out there. We need to recap whats been taking place in the asian markets overnight, sri. Absolutely. Taking their lead from wall street, which was a fairley robust session all things considered, the market seemed to shrug off that First Quarter<\/a> gdp number as disappointing and negative as it was. And the move really is that were going to see more of the same from the fed. So the fed induced rally and the momentum is going to continue in the u. S. Markets, feeding through to asia. The nikkei 225 under kospi. Solid at the close. And the shanghai composite up by almost 0. 7 . The outperformance today, s p asx 200 up by almost 1. 2 . Youve got to ask yourself, given this back off in u. S. Yields, which were weaker, that has really helped Risk Appetite<\/a> and its helped the Property Developers<\/a> in shanghai and also in hong kong. Essentially one of the outperformance day in the asian markets, as well. What continues to keep a lid on these markets and you can apply this on a global basis, as well. Here is what is happening with the price of oil, which remains quite elevated and that continues to be a big risk. That continues to sap Risk Appetite<\/a>, as well. Louisa, back to you now. Sri, loads more to come on the show, of course, because were talking about the bank of england and whether or not its preparing to take the Housing Market<\/a> off the burner. Well find out what mark carney could be cooking ahead of report. Find us on twitter. Louisa Bojesen<\/a>. Sri is on there, as well. Welcome back, everybody. Barclays shares dropping to an eightmonth low after the attorney general accuses the lending of de siceiving its clients. Plus, lse clenches a deal to buy Frank Russell<\/a>. The ceo justified the takeover. This is an opportunity to become the worlds number two player in the allimportant index business. A disappointing update from Standard Chartered<\/a>. The share price slumped there. The bank warning that full year profits wont match those of last year. And will carney crack down on borrowing . The bank of englands governor is expected to unveil a host of measures to reign in lending through his Financial Stability<\/a> report. Welcome back, everybody, to worldwide exchange. Weve been working together for more than a decade. We have. But ive only seen you remotely in spirit. Very happy to have you here. European market trading very flat this morning. Flat to a couple of points higher. 9871 on the xetra dax. We were topping 10,000 just a minute ago, so weve come off those toppy levels for a moment. When it comes to the bond markets, checking in here. We saw some reaction yesterday really to the surprise print, the First Quarter<\/a> gdp data coming in a lot weaker than anticipated. This revision in the data, the u. S. Tenyear yield dropping to a threeweek low. Were sitting right around those levels, around 2. 5 there. In germany, the tenyear bund yielding around 11. 25 now. Thats what were seeing. The currency markets, the same thing happened, reaction stateside to the data yesterday causing the dollar to drop to onemonth lows against a basket of currencies. The dollar yen currently hanging n just shy of the 102 level. Euro dollar, still around the 1. 36 level. Sterling will take center stage. The bank of england is expected to reveal a string of measures to curve mortgage lending. There is some opposition from the banks out there, including rbs which is saying lenders should make their own decisions about stability. Bill, from ubs, the measures expected in the Financial Stability<\/a> report, how far dourchk they will go . Well, i think theyre likely to have some surprises. The underwriting terms for borrowers, the affordability tests that have been in place, really, theyre more stringent stress tests. The other thing is that the hard to buy scheme is in some way formed to protect the issues of the higher price and the market. I think the really potentially alarming piece is if there are restrictions placed on lump income or big news in terms of the sector Capital Requirements<\/a> on high loan to income lending. And its this area where i think there would be seen to be some overall change on conditions and Lending Conditions<\/a>. And sequentially possibly again some impact on the Market Going Forward<\/a> and cost is an impact on the view and Interest Rate<\/a> where the base rate is going. Does it reduce then, bill, the likelihood of a rate hike by the boe . No, i dont think so it does. We do believe they will be incremental and they will be staggered between now and the he of the year in terms of implementation. No, mr. Carney in his speech, to emphasis its not about the target price inflation. Its about controlling the deficit and it is not a substitute for Interest Rate<\/a>s which address the economic cycle, not the credit cycle, per se. So essentially, this is about taking Financial Stability<\/a> as an issue away from the worry bag of the mpc. Bill, hi, its louisa. Some people might say, look, its tough enough to get a mortgage these days. Now it seems like were going to have to go through more stringend rules. Do you think the ability to get a mortgage is going to get dramatically tougher . No, but i think it is Lending Conditions<\/a> was the evidence that mortgage demand has increased substantially. There was a material deterioration in confidence and optimism about the supply of moernlgs, possibly linked to the Mortgage Market<\/a> review. So i think here we have to look at the situation. The bank will not avoid basically issues in relation to the oil price into the markets where it does not want to stop or prevent firsttime buyers coming into that market. This is largely speaking the market outside london. That is the difficulty here for the bank. This is the challenge. You have very big regional disparities and you clearly at the moment have a level of indebtedness in terms of credit flow that is actually low. And what morning lend sg a fraction of what it was at the time of the precrisis. So the bank has quite a challenge. It ultimately will have to address affordability with a rise in Interest Rate<\/a>s through 2015. Bill, thank you very much for being with us. Bill oneal, head of cio Wealth Management<\/a> research uk at ubs. And, yeah, weve got more to come, right . Yeah. More boe to come and we will have live coverage of the bank of englands Financial Stability<\/a> report at 111 30 cet. Helia is on the drowned, of course. Now, its a genius idea, Online Dating<\/a> site match. Com is treatmenting up with the group whose members all have high i. Q. S, mensa. Only users who reach mensas requirements who test in the 98th percentile can sign up. If youre not a mesa member, you can take a test through july 6th. Have you tried the mesa test . I have not, no. My former master when i was a youth wrote on my report card that jegarajah can excel from the superb to the abysmal. My father wasnt too pleased about that. Thats called hedging. This is true. Do you believe that smart has to date equally smart . I dont know. Isnt it about true love, louisa . Youre absolutely right. You totally hit the nail on the head. So many have been struggling with that question. But they also say sometimes you love being with somebody really, really smart, but you dont want to talk smart all the time, you know . You want to be able to be silly and do the softer things in life. Humerus. What do you think is important in a partnership . What do you think that a happy partnership depends on having equal smarts . Let us know. Worldwide cnbc. Com. You can find uts on twitter, cnbcwex or directly to us here on set, Louisa Bojesen<\/a> or cnbcsri. Thats me. And just remember love is blind. Lets talk about some of our top stories. Eric schneiderman u. S. Attorney general is suing barclays alleging the bank favored high speed traitors while misleading institutional investors. The suit claims barclays fass filed documents removing the identity of the largest customer high frequently trade firms. The wall street filed today charges that barclays grew its dark pool into one of the largest in the United States<\/a> telling investors they were diving into safe waters. Now, theyre suing on the act. Barclays is off by more than 5 at the time moment. New York Attorney<\/a> general says legal action is creating division between european and u. S. Banks. It is making the european banks feel like second class citizens with respect to the United States<\/a>. A lot of the european banks are stepping up their government and taking much more seriously how they structure their north american board, their north American Government<\/a> and how theyre approaching risk, which they have not done with the same degree of rigger historically. So it will have a much more positive impact. I think the punch line is we need to have one unified Global Banking<\/a> system. Its only a question of u. S. Owned and u. S. Regulated versus european owned and european regulated. Staying with the papging sector, bnp paribas is facing punishment from u. S. Regulators. The french bank may be barred from exchanging currency to dollars. Bnp is expected to plead guilty to the charges and pay nearly 9 billion for part of its settle. Ment. Shares reacting to this, but they are fairley stable at the moment, up by just around 0. 7 . And Standard Charter<\/a> ed cha labeled the first part of this year as quite disappointing. Financial markets causing issues there expected to be down around 20 . They are responding to the near term challenges and remain confident in the potential of their business. Lets check in and see how the stock is reacting in response to this. Adding to the downside momentum, as you can see, in london off by almost 4. 5 . In other corporate news, the London Stock Exchange<\/a> is buying Frank Russell<\/a> for 1. 6 billion pounds. Frank russell is a privately owned asset manager known for its indexing business which includes the russell 2000. We spoke to the lse ceo earlier this morning about the deal. Here is what he had to say about it and why he thinks its going to be a success. One. It has very, very strong football dynamics. I think the action in the share price this morning is testimony to the success, the institutions and shareholders that we have spoken to highly supportive. So the fm drivers of these transactions. Owning in great parts as you can imagine to the very substantial cost synergies bringing together players that essentially provide the same services across the atlantic. So we have great technologies from a distribution standpoint, to propose a very, very set of products underpinned by very efficient lead technology which the London Stock Exchange<\/a> specializes in. And this reinforces very, very Strong Financial<\/a> dynamics for the deal. And put your poker face on for this one. Bwin. Party shares run this morning. The company has said that they have no plans to break up or sell the company. Go on, let me look at your pace. Im looking at mensa questions. Oh, you are . Yes. Paris apple is potato as to banana, strawberry, peach or lettuce . Give me some time to think about that one. Yes, definitely. General motors Ceo Mary Barra<\/a> will be interviewed on nbcs today show. This is barras first major interview since the companys mass i massive switch back in alabama. Gm says the ignition twitch linked to the recall of nearly 3. 4 million cars earlier this month is made in china by dalion electron electronics. Unlike the earlier recall, gm says the switches dont have to be replaced. Instead, it will replace keys, so it doesnt pull the switch out of the run position. Gm is telling dealers to stop selling the 2013 and 2014 chevy cruise. The inflater in the drivers side air bag may have been installed with an part. Paear is to apple as potato is to banana, apple, radish or lettis. Apparently is answer is radish because they both grow in the ground. I just dont know that. Therefore, i cannot qualify. I hang my head in shame, louisl. Just wanted to give you the answer to that. Listen, we were talking about the air bag story. Makiko joins us with more details on that, please. Yes. Major japanese automakers have recalled a massive number of vehicles due toir bags made by a japanese air bagmaker takata. The initial recall affected around 3 million cars leaving the firm to post an extraordinary loss of 3 million for the related expenses. Since then, honda, nissan mazda and others have pushed the total number of affected vehicles up to nearly 90 million worldwide. With the additional cost of replacement cars, takata is expected to take a significant blow to its revenue this year. While takata does hold an edge in the business, some automakers say sales could fall and add to the companys woes. Thats all from the nikkei. Back to you. Na keekco, thank ymakiko, th much for that. Out of japan, well get jobs numbers, cpi, Household Spending<\/a> at 8 30. 20 minutes after that, japan retail sales will be out. For those wanting to invest in chinas ashares market, the msci index will be introduced on friday. Still to come here on this show, not just taxies and pizza, an app that lets you locate your best health care option. Well tell you more about that here comie up later on show. In india we have 400 Million People<\/a> who dont have electricity and i just figured that its time i do something about it. What were doing right now, along with ibm, is to actually transfer data through a satellite from our wind farms directly onto the cloud. I think we could create a far more efficient system across the whole network where we could actually draw down different kinds of energy based on when its needed by the consumer. A smarter Energy System<\/a> is made with the ibm cloud. Hi, everybody. Im Louisa Bojesen<\/a> with Sri Jegarajah<\/a> this morning. Just wanting to get you up to date with what were seeing on our wires. The u. S. Secretary of state john kerry had a meeting with the French Foreign<\/a> minister and he said its critical for russia quote unquote in the next hours ukraine to disarm. So russia has to prove that theyre trying to disarm. Kerry goes on to talk about how its their preference not to be in a sanction mode, aes puts it. So theyre working to try to move on with regards to the crisis in ukraine. Now, something completely different. Yeah. The tech world. Google wants to become a bigger part of peoples everyday lives. Josh lipton has a breakdown of the developments. Its an android world. That was the theme at this years Google Developers<\/a> conference in san francisco. The tech titan made it clear it wants users on its operating system no matter where they are, at home, at work or even in their cars. Weve redesigned the android platform for automotive, making it easier and safer to use the connected apps and Services Drivers<\/a> want in the car. Most importantly, android auto is completely Voice Enabled<\/a>, so you can keep your hands on the wheel and your eyes on the road. In addition to cars, google wants to push harder into your living room, so it unveiled android tv. Thats a new platform where you can organize and access all your media content, be on boxes later this year and in tv in 2015. Wearable was another option this year. Google introduced new wearables from lg, motorola and samsung. Bottom line, google wants to broaden and deepen its systems, be everywhere you are. Josh lipton, cnbc, san francisco. Our smartphones giving us access to ondemand services. And the new app is looking to do the same thing for uks Health Care Industry<\/a>. Zesty allows you to find services and book them within minutes. Lloyd, we were just talking off camera about this. The cues, the waiting list, monumental. Does this mean that you can circumnavigate them . Effective hadly we can get you in front of a dennist, a doctor, or therapist quicker. We offer the Health Care Protection<\/a> with the opportunity to upload canceled and rescheduled appointments. Frank lets within its unliking the hidden supply. However, how would you doctor, surgery o dentist studio. So potentially, yes, we could get you an appointment within the next hour or next two hours. Access to nhsgps, thats the holy grail. So that you can secure that . We are working very hard at it. Were confident something could happen in the next two years. There are systems out there which already do these services. Our vision is the public and private health care market. If you would like to go, they say they cant see you for seven days, we would like to simply give everybody choice. Would you like to see a private gp tomorrow at 2 30 instead . I think to be honest, the holy grail will be booking something on your phones tomorrow or the next day. This health care on demand is really where all of these services are going. I had a terrible experience. I needed to find a specialist and i asked everybody i knew, nobody knew of a specialist. I google, try to look at backgrounds, go to the doctor had the most experience on earth. How do you deal with stuff like that . So we put reviews on to our website. You have to actually have attended an appointment. We put reviews on the site. So we show you the available appointment times, the reviews, the location of the clinic and the prices so you as a consumers, the way you choose hotels, cars, flies, which is effectively products and services. So that is effectively how didnt the doctors practice giving up a little bit of control over, i guess, their services if they pass on that part of it to you . No. Two things very quickly in the Health Care Industry<\/a> is control and access. 7w4jxd surge. Its simply a case of demand. So actually it is monetizing author quite times for them. Thats a long way off. We would love to think that in the future. One thing were seeing is around the World Services<\/a> like this taking off in singapore, in australia, in america. In america, its competitive to raise 150 million a couple of weeks ago. Got a 11. 6 billion valuation. Gotta go. Thank you very much. Well see you in a second. Hello, everybody. Welcome back. Youre still watching worldwide exchange. Im Louisa Bojesen<\/a>. And im Sri Jegarajah<\/a>. Your headlines around the world. Barclays shares dropping to a new eightmonth low after the attorney general asues the lender for its stocks practices. And lse clenches a deal to buy Frank Russell<\/a> for 1. 6 billion pounds. Speaking first to cnbc, the ceo justified the takeover. This is an opportunity. To become the worlds number two player in the allimportant index business. And its america versus germany on and off the pitch. The latest ifo report forecast a jump in german gdp. This as the two National Teams<\/a> prepare to face off in todays highly anticipated world cup match. Watch that game. And gopro goes public. The video cameramaker prices its ipo at the top end of the range, making it possibly the Largest Consumer<\/a> Electronics Deal<\/a> in decades. Hi, everybody. Good morning. If youre just tuning in, thank you very much for joining us here on this show. I just want to show you how markets are faring ahead of the u. S. Open and indeed looking at the u. S. Futures. Were being called a couple of points lower. Were seeing flattish trade over the last couple of sessions. We saw a shrugging off from the state showing us that the First Quarter<\/a> gdp revisions indicated a contraction of 2. 9 . Thats way below the initial indications of a slight bit of growth seen there. A lot of people are saying theres some technical factors and down to some technicalfs factor owes i k \\aeuonb or . apgk health care. European markets this morning, we were called flattish and indeed thats in the name of the game. If i move myself out of the way, you can see the ftse behind me very flat in italy. Youve got french trade, german trade, uk trade or flat as a danish pancake. U. S. Markets closed higher despite the latest figures showing that the u. S. Economy suffered its worst performance in five years in the First Quarter<\/a> of 2014. Louisa, were talking about and questions remain about the feds qe program and the pace of its tapering process. Now, i caught up with the former chairman of Morgan Stanley<\/a> asia, steven roach, and i asked him why hes been so critical of the feds policies. As long as the fed remains as wildly accommodative as a 4. 25 , 4. 5 trillion Balance Sheet<\/a> would suggest, theres good reason to question the feds commitment to Financial Stability<\/a> and theres good reason that we could, in the not so distant future, find ourselves in another mess. Joining us now is cole sneed. Thanks for getting up early to be with us. We heard steven roach quite critical of the feds policy. What do you think the environment is telling us at the moment about dipping our feet further into eks . So theres a lot of fear around what the fed is going to do. But if anything, its an incredibly robust situation. Think of talking about 3. 70 own per gallon here in the states or 4 a gallon oil. We talked about that ten years ago, people would have been talking about the growth of the United States<\/a> going off a cliff. And the reality is the situation is presenting quite the opportunity from a cleansing where people still dont have confidence in the consumer, but theres great money to be made. Its kind of like the frog in the water as it boils up and occupy and up. People arent going to realize how good the circumstances were in comparison. Sure. But 4 to a gallon, thats bound to hit at least middle to lower america. Exactly. So be down right honest, thats scare out there. There is a stark contrast between those two goods. Its very confident, living life as normal. But its that 35,000 to 50,000 income group in america, thats the scarcest out there. Lets talk about whats on the horizon. Housing is coming out of the biggest depression since the 20s. 35,000 to 50,000 income sess who builds houses. Its not a white collar phenomena. Theyre going to skip that for 35 30,000 to 50,000 is the way the dollars are made. The Nordstrom Racks<\/a> of the world, its the plumbers wife who has yet gone back to her normal spending. Confidence and advertising will directly reflect that. But you wont see that until later. Lots of other stories making news in the banking sector, the new York Attorney<\/a> general is secure i securing. Removing the identify of the largest economy high fracturely firm tradebot. That would allegedly minimize the appearance of high speed traders. Barclays drew its dark pool United States<\/a> by telling investors they were diving into safe waters when in fact barclays dark pool was full of predators who were there at barclays invitation. Barclays shares trading significant lower on the news seen down by more than 5 at the moment. Barclays seas it takes allegations very seriously. In the meantime, bnb paribas may be faces charges. A ban would be part of a settlement for new yorks Department Services<\/a> over the banks alleged violations of u. S. Sanctions. Bnp is expected to plea guilty this seems to be riding out its next publicity. The fed has sent a warning out to u. S. Banks telling them to expect tougher stress tests in the future. Fed governor Daniel Turillo<\/a> said the bank would be subjected to new risk assessment, including a closer look at macro events which could impact the broader financial sector. Cole sneed is still with us, managing director of Senate Capital<\/a> management. Are they going to pass this tougher stress tests . Yeah. Theres great economics in their business, there are strong businesses involved, yet no one is going to like them. The regulators are going to take them. The consumer and a lot of the people around them have a disdain for them. Why are they attractive . We are not likely to have an era where people are going to be overly enthusiastic about overpricing these financials and secondly the stringsy on the underwriting is exactly what you want at the early stages of a great economic period in the United States<\/a>. You go back and look, to be an Equity Investor<\/a> at the early parts of this is quite a thing. Five years into this, were still dealing with six to sevenyearold problems. So if there was any reason to fear those big players, we dont see it. Of behaver the retail exposure. In fact, how you see the spreads and are we going to see that in the underlogging season. Bank of america, which we own, is getting 84 of revenues from the United States<\/a>. Its a Domestic Bank<\/a> that leverage whats go on here. In comparison, citigroup gets into a cheap and contentious arena. At the same time, citigroup has none of the economics that bank of america does. We dont own them, we dont find opportunity in a bank like that. Even in europe, though, with a banks inability to continue to lend money off their Balance Sheet<\/a>, its going to make the m a and credit markets people think thats a bad thing for the banks over there. It means there are going to be a lot of banking investment opportunities. Rather than holing on to the books. Cole, we have to leave it there. Thank you very much indeed for what is the number thats one half of one quarter of one tenth of 4 hurn . Thats another mental question. Ill get back to you ow that. Tim to. Wall street giants will be teamed to stick to the u. S. And not relocate to switzerland. Details on that coming up here on worldwide exchange. So what im saying is, people like options. When you take geico, you can call them anytime you feel like saving money. It dont matter, day or night. Use your computer, your smartphone, your tablet, whatever. The point is, you have options. Oh, how convenient. Hey. Crab cakes, what are you looking at . Geico. Fifteen minutes could save you fifteen percent or more on car insurance. Welcome back to the show. Lets bring you up to speed with the latest headlines. The new York Attorney<\/a> general accuses barclays of deceiving clients. U. S. Asset manager Frank Russell<\/a> is snapped up by the London Stock Exchange<\/a> and cameron makes of the range. Welcome back, everybody, so worldwide exchange. I want to get you up to date on some flashes hitting the wires with regard to google that were hear at dow jones. They now know that results quote unquote may have been removed. This has to do with google having now started removing the search results under the eus right to be forgotten rule. We remember talking about that reevently, if something shows up on google or if theres reason to think that its incorrect, that you can then apply and have your name removed from this google search. Julia is live. Julia. Thanks so much, louisa. Perhaps an irony for David Cameron<\/a> as he battled to prevent Jeanclaude Juncker<\/a> from being the next president at the european commission. Were here at the gate which is a memorial to those who lost their lives in the first world war. Definitely a sense of irony here for David Cameron<\/a>. We are going to see a decision made over the next few days of the president of the commission is expected here. David cameron will lose that vote prosecute for him, i think its become more about the fight for uks rights in the eu rather than the ultimate results here. The crucial question is why is he so against Jeanclaude Juncker<\/a> . Hes seen as a federalist and perhaps as somebody that isnt a new face. Its a difficult sell to british voters who wants to see the uk reform and want to see change within the uk going forward. But hes also seen as somebody that actually can compromise. He speaks three languages and can bring all five together. So the crucial question for David Cameron<\/a> now is can he accept the olive branches likely to come from the germans and from the other eu and sell those olive branches and the compromise message to british voters back at home . Louisa, back to for that. We need to take a look at some of the other top stories today. The London Stock Exchange<\/a> is buying Frank Russell<\/a> for 1 is. 6 billion pounds. They unveiled a 1. 6 billion rights issue. Frank russell is a privately owned asset manager known for its business which includes the russell 2000. John paulson has reportedly built a 1 billion stake in allergan and is backing the takeover of valeant. 2 of allergan makes him a top 15 investor. Bill ackerman has made more than a 53 billion bid for allergan and is calling for a special meeting with hopes of replacing igac1uuusjcv5 Richard Durbin<\/a> i walgreen wont relocate its home base to illinois. Durbin tells reuters a tax envision deal would damage the uniquely American Company<\/a> and he plan toes introduce legislation today addressing the deals. And facebook t latest Major Tech Company<\/a> to release that. The numbers are much in line with many of its rivals. Than just 7 black or hispanic. 30 are women. Only 15 of those serve in the companys tech positions. Facebook says its working to fix its diversity problem, including hiring more underrepresented groups. Still to come on the program, google, why didnt they search . The u. S. Giant unveils more ways to be involved in your life. Well have a look at where they are. Over 1. 2 billion eyeballs are on us during the two weeks at wimbledon. True tennis fans want to know whats happening. They dont want to just see whats happening, they want to know and understand why its happening. Anybody can just put data up, but we want to get a reaction, make it far more interactive. We rely on the cloud to provide that immersive digital capability. Give fans more then just the game with the ibm cloud. Would i be. Google is looking to expand its net and diversify the range of products it offers everywhere from your car or your house, no matter what or where google wants on be in your life. Josh lipton has the details. Its an android world, the theme at this years Google Developers<\/a> conference in san francisco. The tech titan made the clear it wants users on its operating system no matter where they are, at home, at work, even in their cars. We have redesigned the android platform for automotive, making it easier and safer to use the connect he Services Users<\/a> want in the car. It is completely Voice Enabled<\/a> so you can keep your hands on the wheel and your eyes on the road. Thats a new platform, google tv, it will be in tvs in 2015. Wearables was another big theme this year. No surprise. An estimated 19 Million Units<\/a> will ship this year. That would be triple last year according to idc. The bottom line, google wants to broaden its system to be everywhere you are. Josh lipton, cnbc, san francisco. Good to see you. Implementation, as always, is going to be absolutely critical here if google gets it right. This is going to be a huge you happen, in terms of wearables, its created an operating system. But then its people like samsung and lg who actually make the product. And what is the main focal point or the two main focal points that we should be aware of . Well, i think in items of platform ones, the wearables platform, thats seen by many Tech Companies<\/a> as being the net you know, the net iphone product, the real Game Changing<\/a> thing that done assumers can buy will be Something Like<\/a> either a smart watch or some other wearable device. Nobody really knows what it is yet. So i think the people who really fwrin whin from when that marke takes off will be like the platform to wear. At the same time with the wearables, it seems like theyre very much expanding their operating system, its about android operating systems. Yes. Android wear is a version of android that couples a wearable device with an android phone. I think thats their current thinking about how it works. You would have a watch which would mean you dont have to take your phone out of your pocket for the they say 125 times a day you look at your phone. Im not sure if people look at their phones that much. How much of this redesigned Android Application<\/a> is going to be ultimately a threat to apple . Well, i think at the moment, the hardware doesnt look particularly threatening to apple. Apple still makes the most desirable hardware in terms of gadgets. But that is in america and northern and western europe. One of the other big things that google announced was android one, their way of trying to get smartphones into theyre starting with india, but into emerging markets. And that could be really huge for them and i dont think apple has really sought out solutions of how theyre going to be run. Get those markets if, indeed, they intend to. And looking forward to the driverless car myself, especially because my kids always annoy me when im driving. Thank you very much for that. Well done there. Loads of you tweeting in. Ive been tweeting the mensa questions. A lot of them are super easy and some of them are, yes, slightly puzzling. But loads of you tuning in. Keep your tweets coming through. Were talking about mensa, teaming up with match. Com. The group, whose members have all high iqs helping people to find love. You meet mensas requirements by testing in the 98th percentile. If youre not a mensa member, take a practice test through july 6thzn7nano3 3n6\u00f7. Apparently match says 80 of singles, they say dating somebody of the same intelligence is very important. In the end, they say when Everything Else<\/a> goes, all you have left is the miebtd. You need to make sure theres a mind connection. Is it true love conquers all . If youre sitting here looking at the screen and youre definitely bored, youre in trouble when youre 80, right . Anyway, what do you think about love and mensa and about being bright . Let us know on twitter. Youll find us. Well leave you, though, with a live shot from london where the bank of england carney is due to unveil his Financial Stability<\/a> reports. Hello, everybody. Welcome to worldwide exchange. Im Louisa Bojesen<\/a>. And im Sri Jegarajah<\/a>. These are your headlines from around the world. Barclays shares dropping to a new 18month low after the u. S. Attorney general accuses the british bank of deceiving clients. Plus, lse clenches a deal to buy Frank Russell<\/a> for 4. 6 billion pounds. Gopro goes public, make it possibly the Largest Consumer<\/a> the bank of england is publishing its Financial Stability<\/a> report. Mark carney is now speaking. Lets listen in. By doing so, the fbc can allow the mpc to focus on its primary objectives when achieving price stability. And its not the fpcs role to control prices, nor can it address underlying structural issues related to the supply of homes. Our roles includes the build up of credit growth. The process speths for households concern us. Uk households that make progress in retaining the Balance Sheet<\/a>s start from a vulnerable position with debt at 140 of disposable income. The shares high loan income ratios has increased markedly over the past year to a record high. Given the momentum in the Housing Market<\/a> and the underl underlying footage of housing supply, its likely the trend will continue. The s. E. C. Does not believe Household Indebtedness<\/a> poses an imminent threat to stability. These families are more responsible than they were in the past. How, as weve seen time and again how quickly responsible the uk economy. The fcc is concerned an associated significant increase of highly indeaded houd holds to pose direct interest in the future so worry taking actions today to prevent this from happening tomorrow. T this is the single largest housing class. The it is mitigated by considerable progress in recent years. To ensure benefits substantially resilient to with stand a severe shot, the fcc and the poa are currently conducting major stress tests. To financial and economic stability arises because mortgage mortgages representing 80 of household debt. History shows that people do everything they can to pay their mortgages. That means expanding the economy sharply. Rapid credit growth like record ones, the record recession that the uk is on. The s. E. C. Is making two recommendations to limit the risk of Financial Stability<\/a> and to the economy. Mortgage lenders should assess whether people can still look forward to mortgages at the same rate, three Percentage Points<\/a> higher than at the point of the origination of the loan. It should be at or greater than 4 1 2 times the income. These actions should not contain current Housing Market<\/a> activity. The recommendation on the affordability test is in line with Current Practice<\/a> of prudent lenders. And the current share of mortgage lending with loan to is around 10 . And these actions will have a minimal impact in the futures if and its an important if if the Housing Market<\/a> evolves in line with the banks central view. Specifically, the mpcs latest Inflation Report<\/a> assumed a gradual increase in housing transactions and a moderation in house hold inflation over the next year or so. The share of new mortgages is expected to increase to around 15 to the level of the cap within the next year. If house price and prices are more than we expect, if incomes grow less rapidly than they expect. So the bank of englands governor mark carney laying out new rules with regard to housing affordability. Chris walker joins us, fx strategist at barclays here in london. Mark carney talking about new measures with regards to being able to take out a mortgage, chris, but he says that he doesnt expect the new rules to have a Material Impact<\/a> on housing transactions. Traditionally, they removed the need for more oth docks tightening. But i can if you go back to governor carneys speech at Mansion House<\/a> a couple of weeks stating that there are no substitutes for monetary policy. Its targeting the Housing Market<\/a>. Chris, the way that sterling is iraqiing, were back over 170, which seems to suggest that the currency market believes that this is a de facto tightening. Is it can it be viewed as such . I wouldnt say that. Its very important to differentiate between orthodox policy and mark row potential measures and i think thats exactly what carney tried to achieve. However, with the affordability tests are just another signal that were moving towards a period of higher rates. Its really just a form of stress tests for the markets as a certain household with very high rates. And i think its another signal that we are going to be moving forward in a period of heightened policy and higher rates over the coming year. We start hiking rates at the end of this year, so were not that far away from it. Thank you very much for being with us, chris walker, fx strategist at barclays. We need to talk about some of the other top stories today. Gopro is pricing its ipo at 24 a share. The high enof the expected range. The deal raised 427 million. It could increase to 491 million. Underwriters and exercise option to buy more shares. That would make it the biggest ipo ever. The deal values the video cap ramaker at just under gopro will be trading today under the nasdaq gpro. The gopro founder and Ceo Nick Woodman<\/a> will be on squawk box in a first on cnbc interview at 8 30 a. M. Eastern time stateside. General motors Ceo Mary Barra<\/a> will be interviewed on numbers tod nbcs today show. Barra has been on tv in recent weeks testifying before congress and holding a press Conference Following<\/a> the release of an internal investigation on the recall. Gm says that the ignition switch linked to the separate recall of nearly 3. 4 million cars earlier this month is made in china. Dalian is majority owned by japans alstom electronics. Earlier, and unlike the earlier recall, gm says they switches dont have to be replaced. Instead, it will fix the replaced keys so they dont pull the keys out of the one posit n position. He inflated on the drivers said air bags made by takata may have been installed by an incorrect part. Coming up, barclays gets slapped with a fine. We get more on that case and hear from both sides involved. Keep your tweets coming. Were still talking mensa. 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. Welcome back, everybody. A new York Attorney<\/a> general accuses British Bank Barclays<\/a> of deceiving clients. Jack russell is snatched up by the London Stock Exchange<\/a>. And gopro prices at the top of the of the range. Now, new yorks top regulator at the deep end of the spectrum. Courtney reagan has the story and is live from cnbcs global headquarters. For barclays. This just proves that the s. E. C. Is getting a backbone now. Exactly. Theres a lot going on ear. The new York Attorney<\/a> general Eric Schneiderman<\/a> is so he suing barclays, alleging the britishs bank high speed trading while misleading institutional investors. A pretty happy charge. Produces are only posted al after deals are done. Big investors could place orders without moving the wider market to my market trade. Barclays told customer whose traded in its dark bool they would be protected from, quote, predatory traders. But theyre not protected and barclays allegedly stopped the business of thoughts toxic traders in part by charging them virtually nothing. The wall street provided today barclays grew its pool into the largest in the United States<\/a> by telling investors they were diving into safe waters while, in fact, barclays dark pool was full of predators there at barclays invitation. Regulators are concerned dark pools have grown too quickly with little supervision and theyre pledging to increase oversig oversight. The martin act was enacted in 1921 to protect the public from fraud. It allows the attorney general to pursue criminal or civil charges against companies. But fraud actually took place. But new york has a lower bar to bring cases. In a statement, Barclays Says<\/a> it takes the allegations very sewerusly and is cooperating with the new York Attorney<\/a> jrl. On wednesday, barclays pulled a 1. 5 million bond offers just as news of the lawsuit broke. Today in london, take a look at the board trading down more that 5. 5 . Some pretty serious charges and allegations. It sounds like both sides are taking it very seriously, perhaps a warning to others that may also have dark pools. Back to you. Courtney, thank you very much indeed for that. Now, lionel messi was the star for argentina as they overcame nigeria last night. This powerful strike put them ahead only after three minutes. Later, rupert curled in an equalizer. Then came a moment of vintage messi, the barcelona praise ago free kick in to the top corner. A after the break, alex gussa finishing youve a good move. The argentina won the game scoring a strappy goal from the corner. Nigeria qualified, despite their loss. Argentina tops th olkegn[vh maximum points. France failed to maintain their 100 record in the competition. A goalless draw with ecuador, switzerland beat honduras by 30. Those results means switzerland retires from second place in germany. The u. S. Needs to draw or win to assure their theyre all be hoping to clench second place in group h. Bill kenealy sends us this on what we were speccing from the big match of the day, america versus germany. Yes, hello. This promises to be an entertaining and an intriguing game. At the minute, the u. S. And germany are favorites to go through from the group. But either one would be knocked outs altogether. If the results of their game and the simultaneous game between portugal and ghana goes a certain away. Its also an intrigued game the u. S. Coach played for germany 1108 times. He obviously won a world cup with them and he also coached them in 20306. His deputy at the time is now the man who coaches germany. There will be no friendship in the hours before this game. The build up to this game has been dominated by speculation that both teams might just play out a tie because a tie is good enough for both sides to go through. In 1982, west germany played a dead rubber game against austria in order that both countries should go through to the knock out stages. It was a scandal. Jurgen clemson said that was a different era and a different country. I manage america. We are going all out to win. As for the teams, altidore, the American Star<\/a> striker will miss the game. Hes still suffering from that hamstring injury in the first game against ghana. The u. S. Will be captained by clint dempsey, still playing with a broken nose and hoping to store his third game. They played each other nine kiems, germany has won six times and they played out a game in which the u. S. Won four goals to three. So as for what might happen, well, the germans definitely are the favorites to win, but a tie will see both . ek, through. A certain other series of results could mean in the end, the second team to go through could be decided by the toss of a coin. That has never happened in the world cup before. But that could happen later this afternoon and that would be, not only entertaining, but nerve shredding. Its going to be a great game. Will efficiency undermine the American Dream<\/a> . Anyway, gopro prices its ipo at the top of the rage. Is it worth to zooming into shares . Stay tuned. Thank you daddy for defending our country. Thank you for your sacrifice and thank you for your bravery. Thank you colonel. Thank you daddy. Military families are uniquely thankful for many things, the legacy of usaa Auto Insurance<\/a> can be one of them. If youre a current or former military member or their family, get an Auto Insurance<\/a> quote and see why 92 of our members plan to stay for life. Over 1. 2 billion eyeballs are on us during the two weeks at wimbledon. True tennis fans want to know whats happening. They dont want to just see whats happening, they want to know and understand why its happening. Anybody can just put data up, but we want to get a reaction, make it far more interactive. We rely on the cloud to provide that immersive digital capability. Give fans more then just the game with the ibm cloud. Welcome to worldwide exchange. U. S. Futures indicate ago pretty flat open stateside. Were a couple of hours away from that happening. Also just be aware that you need to watch out for the weekly jobless claims today, personal spendi spending, earnings and a couple of pce takes place stateside. All right. Gopro prices its ipo at 24 apiece. The high end of the expected range. The deal raised 427 million but it could increase to 491 is million if underwriting an exercise option to buy more shares. That would make it the biggest Consumer Electronics<\/a> ipo ever, topping duracells listing in 1991. The deal value tess video cameramaker at just under 3 billion. Gopro will trade today on the nasdaq under the ticket gpro. Joining us from cnbcs global headquarters, santosh, is gopro going to justify its valuation . Good morning. Thank you for having me. I think this is a fairley reasonable price. We predicted that they would price at the high end of the range. So at this multiple, its about three times sales. I think thats closer to gar minu garmin and apple to some extent. This company has a strong Brand Recognition<\/a> because of loyalty. Theyre cool products. So it has a nice mote around it and heavy marketing around the products. So i think this is a good company. The valuation is justifiable at this range. The base jumpers love it, but gopro sells just one camera under the hero brand. How are they going to move the needle on the revenue stream with that sort of Business Model<\/a> . Well, that is a big question. That is a big risk. And an opportunity. The big risk in the sense is a one product company, but its a cool product. Theyve been around. They have a loyal following in the sports and the adventure community. So it has a very strong base there. It is growing that market very well. Theres always a risk of saturation with any Consumer Electronics<\/a> product. These guys need to innovate consistently, which they are doing. And more than that, they are diversifying at this point. I think they realized that, as well. So they want to become a media company, which is totally understandable because theyre just sitting on very rich video conte content, which could be easily monetizeble. Thats what theyre doing. So i think at this point, there is a risk. Its heavily concentrated on the product side. But there is a demand, its growing, and then you have Wearable Technology<\/a> right now. Everyone is buying into that. You have watches, your cameras, bracelets, i think at this point you can see the company is still growing. There is demand there. They have huge negative knew, they are profitable. Do you think in general tech valuations on ipos are too high . Well, i think most of these companies coming to market are profitable these days. The revenues are growing very well. So they have been very reasonable and theyre still getting the upside after the ipo. I dont think theyre very unreasonable, totally unlike 2000 where you do not have profits. These are Real Companies<\/a> with Real Products<\/a> with real revenues and real profits. So i think theyre not really you can justify most of the valuations at this point. Santosh, thank you very much. Stay tuned, of course, because a gopro founder and ceo will be on squawk box later on 8 30 eastern. Thats it for today. Thank you very much for now. Goodbye. Good morning. Welcome to squawk box. Gopro, ready for its closeup. That happens today. Shares of barclays getting hit overseas. And stocks are coming off their first winning session in a week, but futures are pointing to a lower open at this hour. Its thursday, june 26th, 2013. Squawk box begins right now. Good morning, everybody. Im becky quick reporting live from the nasdaq in times square this morning. Andrew ross sorkin is back at cnbcs headquarters along with Brian Sullivan<\/a> sitting in for morning, gopro pricing its ipo at 24 a share. That came in at the high end of expected 24 a range. Gopro is the first Consumer Electronics<\/a> company to ipo since the 201 1 debut of headphonesmaker skull candy. The company is expected to start trading on the nasdaq today under the symbol gpro. Well be talking to gopros founder nick woodman coming up at 8 30. Woodman and his family are the companys biggest shareholders with the stake of 39 . Hell be joining us for a while just to talk about the cameras, where they plan to go from here, some of what you could be speccing. And i think you have a gopro camera there on set with you, dont you","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia802205.us.archive.org\/27\/items\/CNBC_20140626_080000_Worldwide_Exchange\/CNBC_20140626_080000_Worldwide_Exchange.thumbs\/CNBC_20140626_080000_Worldwide_Exchange_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240620T12:35:10+00:00"}