Expanding in spain and italy in june. Nicolas sarkozy denies all wrongdoing as he takes to national tv to defend himself against allegations of corruption. And setting the record straight, volkswagen denies reports it will launch a takeover pick for paccar. Announcer youre watching Worldwide Exchange, bringing you Business News from around the globe. Well, a warm welcome again to thursdays Worldwide Exchange. You can see the heat map behind me. A bit of a difference to what weve seen for the last few mornings. A bid to the upside taking the stoxx europe 600 up around 0. 25 this morning. We had a relatively unchanged u. S. Market. They did manage to make new record highs for the dow and the s p yesterday. Adp coming in stronger than expected, the second highest since the beginning of 2011. It is a bit of a catch if you look at the payrolls on average. Gains across the board, as i was mentioning there. 0. 4 for the likes of the french and the german markets. The ftse mib now up around 0. 7 . Lets take a look at some of the top stocks today and the performers that were watching uk Infrastructure Group about the warning of a 35 Million Pound profit shortfall. The company has plamed weaker trading at its mechanical and Electrical Engineering conditions. The European Commission approving vodafones 7. 2 billion acquisition of spains largest tablemaker this time without conditions as they mark a greater drive towards consolidation. We were talking about telefonica and e dplus yesterday. Poundland rising 18 in the First Quarter and the company issuing a confident outlook for the rest of the year. The underlying adjusted eps, if you want to know those numbers, rising 25 . Lets take a look at the bond markets this morning. Interesting to see what happened in the u. S. Tenyear yesterday. Six basis points higher in terms of the yield in the trading session. You have to wonder about expectations for the bond markets. 1. 6 , they expect this yield by yearend, bringing that significantly lower from 2. 25 . Quick check on the Foreign Exchange markets. Quickly now, we have the dollar seeing a bit of a drop yesterday after the adp data. Similar story today. I think suspended for euro dollar as we head towards mario draghi. Will he seen on further strength of the euro. Pmi expected to ease a little bit. But after the surprise we got on the manufacturing data this week, you have to wonder whether that could surprise to the upside, too. Lets get a check in on whats going on in the Asian Session this morning. I guess you have to expect ecb, payrolls keeping investors there, poised and ready for action, sri. Take us through that China Services pmi number. 15month highs . Absolutely. This is a very strong number at the official levels of the sector. So it really tells you two things. Primarily we are starting to see some stabilization after the slowdown in the worlds second largest economy. Probably the impact of all the cumulative targeted easing that weve seen over the past couple of months. Now, the second point is that, clearly, the chinese economy is now rebalancing in favor of more consumerled, more private internal demand. So remember this dynamic, this transition where the chinese economy is rebalancing a moving away from exportled investment led growth towards the consumer. Now, in terms of whether theres going to be any further stimulus, there probably will be, but it will be policy tuning in the first half this year. On the whole, the markets like this data. The Chinese Market ended at around 2016. Not a great deal of activity or conviction throughout the asian markets. As we said, julia, a lot of these indices are in a Holding Pattern until we get clarity over the u. S. Jobs market and close to home where you are. The ecb policy direction. There wasnt a great deal of interest in the indian market today and thats because of what was happening with the exchange operator, the bsc, trading had been disrupted for about three hours across the major markets that the bse operates because of some connectivity issues. It was a network issue. This is quite singularly large disruption. As i said, a couple of hours along until this problem was fixed. But if you put any trades on earlier on in the morning when the market was functioning, then those trades were canceled as a result of this outage. But things are back to normal now, trading has resumed after that network outage. All in all, very cautious session here as we watch and wait for clarity over what the payrolls will reveal and the ecb, julia. Back to you now. Now, on todays show, as Independence Day nears, Many Americans are gearing up for their annual barbecue. We find out why meat prices are becoming hard to swallow. But not everyone will get their grill out tomorrow as storm clouds gather from Tropical Storm arthur which could turn into a hurricane. Well get you the latest on that, too. And finally, fields of gold, the chinese want to trying to steal corn technology. All that and more coming up on Worldwide Exchange. We have had some breaking data out of the eurozone this morning. Already the Services Sector expand in countries like italy and spain. Italy hitting the highest level since 2010. But a different picture on the german and the french front. Growth slowing in germany. While there was an actual contraction in france. The ecb became the first Major Central Bank in the world to take the first in negative territory. Mario draghi said there were more extraordinary policies to come. We think its a significant package. Are we finished . The answer is no. We arent finished here. If we live within our mandate, we arent finished here. Geoff and annette are in frankfurt. Guys, once the dust settled on the meeting, there were still a lot of questions being asked in the market. The first one, people are unsure how long the rates could stay on hold. It could be until 2018 given the fixed rates. And also unsure of direct policy to boost lending. Can you give us some clarity today on both those points . Well, i think at this meeting mr. Draghi is not going to give us any new policy announcements, but maybe he will attempt to encourage the market to think in even longer terms about the duration of very easy money. So rates lower for longer. And those have been the noises that weve had sort of unofficially from the ecb over the last month or so. We have a framework for the teltros. They wont really kick in until september. So that additional liquidity wont come until september. On the rates story, are you hearing anything different . No, not at all. I think there was a growing sense of frustration after the last meeting that the market actually didnt understand what draghi meant with how long rates were kept at very low level. And then he stepped out on june 21 saying that rates can well be linked to that fouryear period. So we are ending up in the year 2018, as you were mentioning, as well. So we might get a little bit more clarity on that diration. That could weigh on the Euro Exchange rate. You came into us talking about some of this services data. I suppose my question would you, and to annette, as well, here, if the German Economy is starting to show some signs of slowing down here, we know france is difficult, but if germany is showing some signs of slowing, and that seems to be what that latest Services Number suggests, does that mean the germans become more interested in an asset backed Securitization Program that the finance minister is prepared to give the ecb the opportunity to go out and launch proper qe . The ecb is independent, of course, but i just came back from berlin. It seems to be totally on the distance side of things. But hes saying liquidity is too sample in the market and that he was to reduce that liquidity, not to increase it. And at the same time also we have mr. Weidman stepping out famously in a speech recently saying that he doesnt think that its the right job for the ecb to intervene in the market. Guys, never mind whether or not its the ecbs job. That included the uk. Even if he does decide to intervene in the s p market, its not a is it . Well, its mon at aetary pol stance. This is not the job of the ecb and that will whether they will actually revise the program backed by s e loans, it will not spur inflation. Inflation will only kick in once the economic recovery will come. Yeah. And look, all this liquidity thats been sloshing around in the eurozone from the ltro programs originally doesnt seem to be touching the sides. If you look at the declean in the eurozone, it was until security. All of this is having a real effect on the economy. It seems to me that is a major problem here. How these low rates might cause inflation and such, nothing is happening here. You see some pick up in the spanish manufacturing numbers, but elsewhere it is patchy around the eurozone. So mr. Draghi still has a big credibility issue i think with a lot of whats being done here at the ecb. Is it working . Yeah. The big question is also whether these will work themselves into the real economy at an acceptable rate for the small and medium sized . Lets send it back to you, julia, on that. I think mario draghi has been clever trying to putt pull these teltros back to only november. But its been another six months before he talked about it and weve seen any kind of benefit. Guys, well come back to you later in the show. Be sure to tune in for our special coverage. In the next minute, some of those questions will be asked. Ill be asked what lines of communication exist between Small Enterprises and policymakers. Is it about supply or is it about demand . Now allen joins me on set. You were listening into that discussion. What are your thoughts right now . Well, personally, i think mr. Draghi basically says whatever it takes rather than does whatever it takes and sooner or later, the market, as they always do, seem to lose patients. What he was saying is the euro is unchanged. Yes, weve seen a collapse in interbank rates, but were starting to question even the point that i made, too, suggesting annette the fixed rate teltros being pushed out to 2014. Is it credible to say rates are going to be on hold until that point . Theyre still incredibly bullish on european stocks and european equities. Everybody is bear market china. Sooner or later, theyll say, actually, what is happening . Well come back to this. Meanwhile, u. S. Hiring is expecting be strong for a fifth month in june. Forecasts call for an increase in 215,000 in nonfarm payrolls. That is 217,000 in may. Unemployment is expected to hold steady at 6. 3 for the Third Straight month. All week on cnbc, weve been asking our guests about their predictions on those allimportant jobs numbers. When you look at jobs numbers, thats really, really strong and its been slow and steady. But i think its gaining some steam. I think the credit expansion is showing that. I think well see that reflection in q2 numbers. Im going to go for 255. Im quite optimistic. I think the numbers are too low. Its too backward looking. Its too much rearview mirror. I think theyre impacted by the volatility, by the noise weve seen by the downgrade to First Quarter gdp growth. But looking at the survey evidence, they show an acceleration in confidence which i think is something that goes along with increased hiring. I would think just about any number, unless its a negative number, will be viewed okay and that the future looks a little brighter. Mean wile, Federal Reserve chairman janet yellen has assured the central bank will want raise rates despite asset bubbles. Yellen said she favors relying on regulation and supervision to tackle risks in the financial system. Monetary policy faces significant limitations as a tool to promote Financial Stability. Its effect on vulnerabilities such as Security Transformation rpt well understoare not well understood. Efforts to promote Financial Stability through adjustments in Interest Rates would increase the volatility of inflation and employment. U. S. Stocks managed another record close as far as the dow and the s p markets are concerned despite relatively changes. 0. 2 higher in those two markets. Weve got yellen talking about policy but doesnt cut to the heart of the issue which is in the u. S. Theres artificially low Interest Rates. Yes. It was interesting she mentioned high yield bonds. There has to be a close into high yield bonds over the last year or so. And if you look at whats happened to the yields, the prelims of those bonds is now down to 3 from being close to 20 three or four years ago. That is fine, isnt it . What weve seen is this chase to the yield, weve pushed people further and further down the quality curve effectively to the point where theyre investing in unrated assets right now. In particular, my fear is its what happened when we do get a concrete time for rates to rise . Investors try and capitulate and the market cant absorb it for volatility more than anything. I saw recently in the uk that some of the large he funds call themselves Strategic Bond funds. So you as an investors dont know what its going to be holding. What is the liquidity of those high yield bonds in those funds . There are massive issues. Particularly these in the uk of 12 00 liquidity. Do you think by smoothing forward guidance, by smoothing the information they give as far as ultimately rate rises come that exit can be smooth or do you think were heading for a pretty big crunch for both of those . Well, at least weve had a kind of test of last year whats happened. So in a way when it does happen, the market has been expecting it and it will be one. But you still cant underestimate how in particularly in those lower rated bonds, i think earlier in this program, people talked about tourist investors. And those tourists tend to go home at some point. When they go home, theres no liquidity and what is going to happen. Dow jones are forecasting an extra 215 jobs in june. Whats your guess for todays jobs numbers . Are you feeling bullish or are you feeling bearish . We want you to join in the conversation here on Worldwide Exchange. Get in touch with us by emailed, worldwide cnbc. Com or by twitter, cnbcwex or direct to me. Were asking could Hurricane Force winds interrupt americas Birthday Party . Stay tuned. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Small and medium sized businesses across europe need a reminder on why its so crucial for europe. Mario draghi and the team are trying to set the foundation for more actively addressing the lack of Small Business credit throughout europe more broadly. Thats going to require measures like purchase the small Medium Enterprise loeps and some securitization. It helps situations that the yield is very high. It helps in the situation in the european economy. However, it is still, as i mentioned before, the small and Medium Sized Enterprises that dont get the same help. We would like to extend the help to the smaller economies. The two positive programs they could put in effect, one would be an ltro. Another is to find a way to securityize small and medium sized lending. Theyve been working on that and the question is whether theyll be able to do it. Patrick libble joins me now on the phone for liverpool. Patrick, thank you for joining us. Mario draghi accepts that theres still a problem as far as financing is concerned. But he does say the situation is improving. Is it . Well, theres two things. Since the financial crisis, weve seen that the negotiations that were held in basul 3 have resulted in the Capital Requirements directive and an amendment to it, which is known as crd 4. And basically banks are required to attain more capital, which naturally affects bank lending behavior. Recently, banks have made claims that theyre, in fact, Offering Bank loans but that there is a lack of demand. Thats not really a fair statement. Yes, bank loans are available to such an extent that its not feasible. On top of that, banks are asking for collateral even if the banks are financially stable and owns assets. So we dont see a very strong improvement in bank lending at all. So right now, youre saying the banks are making unfair demands on what are actually very Viable Companies and growing concerns right now . What more do you think the central bank can do here . Well, there is a development at the European Commission level or European Union level in general, which is rather worrying. The commission is entirely focused on equity financing, Venture Capital in particular. And it seems as though Venture Capital is the answer to everything. Venture capitalists are looking for companies with high risk and high return and most