Hits at the dollar. He says the current is too come innocent calling for a rebalancing of Global Payments. Shares in postal deliveries soar after cost savings and domestic growth. And the u. S. Steps up security on flights to the u. S. Transport Officials Say the uncharged Electronic Devices will not be allowed on board. Youre watching Worldwide Exchange. Bringing you Business News from around the globe. Welcome again to Worldwide Exchange. A weaker start this morning as we are 7 3 to underperformers taking stocks down. 30 . Fridays volume on friday is one of the lowest sessions we have seen. We are still digesting the numbers of the u. S. From thursday. It will be interesting to see what we get as u. S. Investors get back in motion as we head to earnings season this morning. We are seeing the general market down. 30 this morning. Significantly weakened german output and the may numbers are strong in construction. This is something we are seeing feeding into the survey numbers with a few question marks being raised about what we get as far as growth in the Second Quarter for germany. But lets take a look at the individual top stocks to be watching and continuing to watch in this session in particular. One of them we are keeping an eye on, shares of postal up as they raised their forecast for 2014. Strong business in the netherlands as well as cost savings have improved the outlook. They have been restructuring the business by raising funds from the sale of express. So that stock is up just shy of 16 . A quick check in the Foreign Exchange markets, we did see one and a half week highs but you have to wonder if the momentum will continue. And we have to see euro similar at 1. 3588. You have to assume the momentum is there despite a possible 50 increase in the Balance Sheet over the next four years. And the market is ignoring that for now. We have more data coming out this week. The Asian Session is lacking momentum from u. S. On friday. Sri has some european visits over there this week. Reporter thats true. Angela merkel is the most important one this week. Theres nothing to overlay the regional markets with for the beginning of the week. I suspect it will be about the individual emerging markets because there are a number of risk events we need to talk about. Well start with indonesia going to the polls on wednesday for southeast asias largest economy. Look at what it is doing right now up by more than 1. 3 . Fourweek highs here f for the jci. The banks are among the big gapers today so the market seems to be favoring a victory by the reformist probusiness over the form former. I suspect that the markets are priced for perfection here. Theres room for disappointment in indonesia because if you look at the two president ial hopefuls and look at the opinion polls, they have been running neck and neck. Yes, the opinion polls have been wrong before and they got it wrong in india when we were there covering the election not too long ago in may. So theres the chance of an upset and a chance for some fairly nasty uncertain outcome at the election later on this week. Were watching that one. We are also watching tindia. This will be a big test of the government. That happens on thursday. The market wants to see Fiscal Consolidation if we are going to see the modi way continue. This is where we stand for the ce nr cencex near 25,000. We already hit the stride here in asia. Tomorrow is important for the kospi with the electronics makers. The earnings are expected to be disappointing with these sets of numbers. The numbers are suggesting a decline off more than 12 . They have to contend with a stronger yuan. Watch out for the kospi tomorrow. Thank you, sri. Lets bring you up to speed with what we are focusing on today. Stormy weather ahead with a typhoon described as a once in a decade storm heading to japan. Well bring you the latest on that. Retail reality. America is in talks to pay off a 10 million e loan. Well bring you up to speed on that story. Plus, new security rules for plane passengers on u. S. Bound flights including charging Electronic Devices. Well have all the latest on that, too. And transformers smashes the u. S. Box offices over the weekend raking in millions of dollars in ticket them hollywood. Now the International Monetary fund could trim its Global Growth forecasts. Christine lagarde hinted at this in a speech in france saying the momentum could be less than expected. She blamed potential growth and subdued investment. Lagarde was looking to boost this in education and health. And a warning about the record level is being posted about the u. S. Stock markets. They did not believe the rally indicated a strong growth in the economic recovery. Economic recovery is nothing to do with the high stock market. Interest rates are low, wages are low and the emerging markets are still growing much faster than u. S. Economy let alone europe. So and many of the corporations that are a part of our stock market are big multinationals that are increasingly getting a large fraction of their profits from the emerging markets. So the very strong stock market prices are, in a sense, a symptom of the weak economy, not a symptom that we are about to have a strong recovery to our real economy. Who cares about fundamentals with Central Banks to stop them. But with warnings of the imf ringing along bells, we are approaching the High Water Mark for risk assets. Joining us is the head of the National Australia bank, simon, good morning. We spent a lot of time talking about record highs or near record highs in a lot of the markets at various points around the globe. We are going to talk about the same thing as far as Corporate Credit is concerned. If i look at the current investment indices right now, we have room for tight anything. Are we missing something . Every time you think you hit a high watermark then they come out to Say Something to suggest it a bit tighter. If you look at most peoples barometer for risk trading near sixyear and in the high 50s, which some suggest has potential versus 2007 when it traded near 20 basis points, but we are a different world now than we were back then. You have to allow deterioration and draw the product there supporting risk assets back then. So i suggest if you take away 15 basis points or notch it down a few points since 2007, you are going to take away 15 to 20 basis points for the structure bid. Now you are looking at ten basis points for the likes of 2007 when we were at 20. We are at a new high watermark. We are in new unchartered water. We are. If you try to look at the light basis, we are at or flirting with the high watermark now. Does it mean we are more likely to correct now . Because if i were a trend follower, i would say times are great. Well, absolutely. A couple interesting points, your earlier comments out of as asia, this is a stimulusled recovery and trade rather than risk on trade. We have to increasingly focus on the underlying fundamentals. If we are in sort of a deteriorating Growth Outlook with austerity in growth here, that is not great, but the german numbers out this morning, the eurozone recovery should be a warning flag for many people in terms of how far down the risks want to go at the moment. You have also highlighted to me as we have talked away from the show about the impact of regulation right now and a potential block in the system as far as liquidity is concerned. If it would shift out of the tradeses, the buyer wont be there. Everyone is chasing the yield and moving down the spectrum over the years, which is great. You have hado outsized returns, which is great. If we get this for the time being, theres no single trigger we see as the imminent threat to that capitulation. But if we get that capitulation trade, who is going to take part in this through the investors. What leads, im talking across products right now, we have fx currencies approaching current levels it seems. You were in unchartered waters here making u. S. Highs if we look at the u. S. Markets n particular, what leads any potential correction or asset class . Im not sure asset class leads. I think it will be risk through definition the more liquid areas. Fx tends to be in spot pricing as more liquid and easier to trade on an in out basis throughout the day. Equities seem to be more liquid than cash spreads. And within the corporate markets, you will be looking at more of a buy and hold asset. But i think they are going to work in unison as and when rather than if and when. Then the sentiment will start to deteriorate. It is tough to find a capitalist right now. Top picks . Looking at the indices, they have widened out a small amount over the last week or so. Weve had the compression trade versus nonfinancials for a few months now. In anticipation of earnings . In anticipation of earnings and volatility within the eurozone. And fastballs trade through nonfinancials over the course of the second half of the year and early part of next year. So i still like the compression trade and the australian credit with the underlying silver and triple rating. Rns people are looking furtherer in terms of the potential yield, but it is more about the approach rather than just assuming im looking at one sector versus the other because that does not work. Simon ballard head of credit strategy at National Australia bank. The french finance minister has called for a rebalancing of the current sips used for Global Payments after pnb paribas was fined for breaking sanctions violations. Earlier the squawk box team caught up to him to ask his view. The role of the dollar in the Financial System more broadway is anachronism of the 21st century. I have argued for a long time we need a global reserve currency, that the dollar shouldnt play this Critical Role. The role with dollar in trade, i think, almost inevitably will diminish but still will be important. Stephane is in paris, and theres a tendency to say sour grapes, but we need a different global currency, dont we . It is still a few days after the fine against pnb paribas. The government is looking for pnb paribas needs to use a variety of currencies. Speaking of this weekend with the conference in the south of france, the french finance minister claimed rebalancing was possib possibly unnecessary. She says she will raise the case to the European Finance minister today in brussels although i did not explain how they could force the market to switch currencies if that was ever possible. The french government received support from several large ceos of several large companies. The oil maker is ready to sell in euros even if the benchmark price in dollars was likely to remain. Michele said this will conclude in dollars even if they are signed between European Countries behind the currencies of much of the regulation. The companies which sells a lot in dollars like Oil Producers do not always want to deal with the u. S. Regulation. Thats exactly what happened to pnb paribas to plead guilty for not respecting the u. S. Embargo in sudan, iraq and cuba, even if this transaction is not made from the United States but they were made using the u. S. Dollar which gives american authorities the right to take action and to ask for significant sanctions. So its not a retaliation but it sounds like it is. Like a fly swatter. But anyway, he did it. Stephane there i was trying not to french bash and there you did it for me. Thank you. In corporate news, burberry upset in a shareholder over pay. They are outlining the reasons behind the new ceo christopher baileys relatively large pay package. One Investor Group has issued an amber alert over the luxury firms compensation policy. Bailey agreed to pay a package worth 20 Million Pounds receiving just over 1 Million Pounds annually plus the opportunity to make 200 of his salary in bonuses. Now we can report that the u. S. Giant could be rivaling shire after three failed attempts. Our ceo Rick Gonzalez has been there trying to woo Shareholders Holding out for a 50 pound a share bid. And transformers takes in around 34 million over the july 4th holiday weekend. The actionpacked movie has made nearly 600 Million Worldwide but not always well at the multiplex. They say summer ticket sales are down 20 on last year. No potential blockbuster opened this weekend and last year despicable me 2 debuted over july 4th. Now we have to take a quick break, but still to come on the show, slovakia is the biggest producer of the capital over the world, but will they accelerate further this year . Well go there to find out, stay with us. The cadillac summer collection is here. During the cadillac summers best event, lease this 2014 ats for around 299 a month and make this the summer of style. Welcome back to the show. Angela merkel is in beijing on her seventh trip to china. Trade is top of the agenda and appears to be working. Volkswagon received approval to build two more plants in china and expand current production at their other location in qingdao. It will allow them to invest in chinas security markets. British foreign secretary William Hague and chancellor George Osborne start a twoday trip to india, the first since may. After leaving the soviet block in the 1990s, they shifted from their production of weapons to become the biggest automotive maker in the world. They see that trajectory continuing. This is one of the Fastest Growing countries in the eurozone and it was in the crazy era and now it is the biggest according to domestic and foreign cars. Our economy will accelerate by 3 this year and next year it will also be better. I hate talking about poster boys as far as the eurozone is concerned, but they are resilient during the financial crisis. And i wonder how the situation in ukraine and russia is impacting confidence in the Business Environment there. Definitely. We need to separate the two, really. Buzz what is the growth story that continuing quite substantially compared to elsewhere in europe through the financial crisis. And, in fact, last year it bottomed out with a growth gdp figure just under 1 . Now, as you indicate also we are going to be seeing growth continuing toward 2018. The deputy Prime Minister talking about that earlier this morning. But what are some of the issues and the issue of ukraine being one that is definitely at the forefront of a bordering country to the east of slovakia. A lot of businesses say thats the main risk they are looking at. We should talk about this with robert simonchek. Welcome, robert. We were just talking about the risks that exist because you have fantastic growth here and then at the same time you have an economy where people would argue, well, it maybe isnt diversified enough because you are dependent on the auto sector for electricals and you have the risk of ukraine just to the east of you. Well, i think we are strong in several areas. One is automotive and one is electronics but also Information Technology which is much higher than the component of the economy. So what we need to do is to build big brands and Global Companies and like slovak economies and suppliers into them, of course we are a small country very much dependent on ergs u and very much dependent on foreign investment. And crisis in ukraine is not helping. We have not seen any negative effects to that respect, but certainly that is a threat or a risk not only for slow vvakia b also for europe. Do you think we would be better off if we were not a member . No, its a big difference. And the big hurdle was when we joined to europe because with that we have a stable currency, a lot of new investments came in, much lower risk for any investors. Slovakia has a great positive value that we brought in. What happens if we see a global slowdown . What happens then if you are dependent on exporting all the cars and electrical goods . I think we are pretty much diversified in terms of exporting to the rest of the world, so it is not just one region. If you have a Global Economy slow down, then all the countries will suffer. But if it is only one part of the world, we can basically supplement that with some other area that is growing fast. We certainly need to focus on fast growing markets in our exports. And thats one of the tasks of our agency. One area where theres been some criticism is that youre developed in, for example, the Auto Industry in electricals and technology, not so much when it comes to insuring a knowledge economy is there for a couple decades down the line. That rnd spend is significantly below average here. How can you change that . Actually, we are in the process of changing that. The government is about to pass a new law where you can deduct from taxes an rnd investment. We are also trying to upgrade in investments here from Global Companies and they are slowly but surely bringing in some rnd components connecting them to the universities and the rnd institutions. Yes, we are below average but we have a good plan to boost it up. Okay. Robert, lovely seeing you. Its very, very hot here. It is, what, 35 degrees it feels like . We are enjoying it, we are burning to a pulp here, robert. Thank you very much, robert. The ceo of the slovak trade and development agency. Well see you more here in approximately an hours time. We look forward to it, louisa. Well catch up with you later in the show. Now with the conflict in ukraine escalati