Worldwide exchange on cnbc. Im sara eisen. Im wilfred frost. A good morning to you. Here are the big stories we are watching at this hour. Germanys buyer offering to buy u. S. Seeds Company Monsanto for 122 per share in cash or 62 including debt. Before the bid rumors began to emerge. President obama, the second big story is him on his visit to vietnam today. So far the u. S. Will fully lift the ban on selling arms to vietnam. And here we continue to monitor fed speak as well. The speculation is rosengren sees the conditions for a rate hike on the vernal of broadly being met. Rosengren is getting ready to back Monetary Policy as financial indicators have become more positive, more on all three of the big stories coming up. First well get you up to speed on the markets. Wall street said to open a bit lower this morning after we saw a nice gain on friday. The s p 500 closed up about theres a flip just in the last few moments or so with the dow futures up 29 or 30 points. S p futures up 4. Nasdaq futures up 11. I was just going to say, the s p 500 finished higher on friday to push it over the edge of positive territory for the week. Just positive. The nasdaq, in fact, had its fourth weekly decline. Something it has not done since back in 2014. So clearly there is still caution as the markets try to grapple with the idea of a summer Interest Rate hike on the table, off the table, are we okay with it or not . As for the tenyear treasury note yield, big jump in yield last week. They went from 1. 70 to the high 1. 80 levels. Now we are at 1. 82. It is calm out there in the Global Market. I like the big takeaway from markets last week with the s p finishing positive. The nasdaq and dow were up also. There was no big loser given the developments during the week about the possibility for more hikes. The fed will be coming away from last week thinking we achieved putting june back on the table without spooking markets too much. The story is similar if we look at Global Markets. Yes, theres a bit of red towards the end of the week in response to the rate hike, but at the moment were base you cannily flat to mixed in asia today. Japan is down, shanghai is up, but pretty mix ed. A bit of green on the screen and a bit of red also. Over the last week theres positivity out there. The stoxx 50 is up. The markets not too spooked by the talk of a possible rate hike coming up. Besides the other driver for the market, well look at the commodities trade. Wti is below 48 a barrel right now down 1 . We are at the International Benchmark above 48. 33. Well keep an eye on that. The oil dollar story has really been a primary driver. Gold has been hit pretty hard as the expectations rise for a Federal ReserveInterest Rate. Gold is starting the pressure at or as the finance leaders met over the weekend. The euro dollar is weaker. The japanese yen is putting pressure on the japanese stocks overnight. I would say even though we didnt see a huge reaction in equity markets, we saw a big reaction in the u. S. Dollar with the broader index up 1 in response to the fed minutes. The g7 finance committee is wrapping up meetings in japan. They are issuing a warning against japan and currency marke markets. U. S. Secretarys opinion is different. Its interesting what we have been hearing from the japanese over the week. Its a busy day on the data front. Look for new april home sales tomorrow. Thursday well get april durable goods and pending home sales. Then on friday the second estimate on First Quarter gdp and may consumer sentiment. Most of the big earnings are out of the way. If we do it, we have to look at the earnings session, which has sort of been its felt lousy, but overall things are only down 2 to 3 and revenues are actually higher for this overall quarter. Its the guidance. The oil prices havent recovered to the sentiment gauge. Theres a lot of caution out there. Theres uncertainty from the global economy, National Markets and the u. S. Collection to the brexit, you name it. Theres a high level of unconcerncy facing corporate america. Could this be a catalyst to drive deals Going Forward . The Chemicals Firm bayer has made a 62 billion offer for monosan toen. Lets have a look at share prices this morning. You can see monsanto up 9 reacting positively since the rumors began a week or so. Bayer was down 2 . It was already down 10 with the rumors last week. If the merger goes through, its a 1. 96 you dont want to miss this. The buggest barn takeovers, yes . Absolutely. And the amount of consolidation in this particular sector is nrms. Youve got syngenta dealing with china. Are the regulators going to let it go through . The other question for bayer is advertise a largely phrma company putting itself firmly into the gmo crop market which is something that monsanto does. Which has been highly lucrative and very Transformative Technology but also coming u increasing pressure from regulators and social concerns as well. I know its a big deal in europe to be genetically modified. Its 95 of the soybeans and corn. Now 50 of their business will be in the crop market. Still antitrust issues to get past, but that deal is certainly a headline this morning. Speaking of deals, anthem and cignas merger could be in jeopardy according to the wall street journal. The Companies SeekRegulatory Approval that could delay antitrust proposals. Cigna shares are slightly higher in the premarket. Lending firm has hired jeffreys to find investors for loan funding. The lender is looking to Gain Investments after the recent news of the internal investigation over the sale of some of their loans at half a percent to the free market. And bannetts latest 864 million takeover. Toshiba announces more of the capital base to be halved. They are determined to cut 1. 8 million. The payments processor saw shares drop 20 since the 2015 ipo but barrons is making a pop for that report. And president obama visits vietnam. Hell receive a billion dollars at list prices. The low cost area market has grown 20 . But they worry that dont they have like 10 to 15 flights . Sometimes. They are definitely the lowest cost airline in europe. Moving on, mens Wearhouse George Zimmer is eyeing a return. The combination of what hes built in the past couple of years with mens wearhouse would be a great paradigm. And landon dowdy is joining us with more. Never a dull moment. Heres the latest on friday, removing viacoms ceo and board member George Abrams from both the trust and the board of national amusements. That trust will assume voting control viacom and cbs if hes this would be a big victory for redstones daughter sherry ousting viacom executives. They are raising back arguing that the 92yearold lacks capacity to make changes on her own and is ma nip plated by her story. Redstone plans to add General Council to the seven person as we well. Now you better grab your best pr pro and saddle up. Well have more on that from viacom. When we come back, a rare sitdown interview with the bank of japan head, haruhiko kuroda. Heres confident that japan has enough inflation to hit the target, next. And first happy birthday wishes to George Osbourne who turns 45 today. Hes been chancellor since 2010 and a member of Parliament Since 2001. He also just tree leased the release released more information. Well have much more on that when we return in a few minutes. Argonne khe sanh midway dak to normandy medina ridge the chosin reservoir these are places history will never forget but more important are the faces we will always remember. Cathys gotten used to thee sme. In her kitchen rbage. R. Yup, shes gone noseblind. She thinks it smells fine, but her guests smell this. Ding, flies, meow febreze air effects heavy duty has up to. Two times the odoreliminating power to. Remove odors youve done noseblind to [inhales] mmm. Use febreze air effects, till its fresh and try febreze small spaces. To continuously eliminate up to two times the odors. For 30 days febreze small spaces and air effects, two more ways. [inhale exhale mnemonic] to breathe happy. By switching to xfinity x1. Rio Olympic Games show me gymnastics. X1 lets you search by sport, watch nbcs highlights and catch every live event on your tv with nbc sports live extra. Im getting ready. Are you . X1 will change the way you experience nbcuniversals coverage of the rio Olympic Games. Call or go online today to switch to x1. Bank of japan governor kuroda says he has monetary levers to pull when it comes to hitting the boj targets. We are sitting down with akiko fujita with more. Reporter good morning to you. From negative Interest Rates to the fed, this is a wideranging conversation. But we started it by talking about the yens move. Finance ministry is the one that will ultimately decide if japan intervenes in the market or not, but the boj has been criticized for not acting in the last meeting despite the yeps appreciation. It has gained more than 10 on the dollar since the boj introduced our negative Interest Rate policy back in january. I asked governor kuroda whether there was a red line that the boj has set to affect the price target. He said that there was not in his words, he said it doesnt matter if the yen is at 100, 120 or whatever because the central bank will be looking at several factors including output expectations in addition to the Exchange Rate before opting to move forward with the easing policy. This has been called into question after the central bank delayed the inflation. Heres what he had to say. I dont think our credibility has been reduced in any way. Because, as you know, the u. S. And the European Central banks have also delayed and delayed the time when the 2 inflationary target is met. Because not just japan but also the u. S. And europe have been faced with Higher Crude Oil prices. And that has affected the inflation rate among the three major countries. And we also talked about the fed. Governor kuroda, i asked him about the likelihood of the fed raising rate hikes. If that rate hike goes through, it would strengthen the dollar, essentially taking some pressure off the boj. I asked governor kuroda how closely he was watching the move, he said he was focused on the domestic mandate of getting that 2 inflation target. But i want to get back to the yen because we really pressed him on what that red line looked like, how much higher the yen would appreciate before the monetary easing. Take a listen to what he had to say. I agree that the Exchange Rate would affect inflation prospect so on and so forth. So we continue to focus on inflation. Inflation expectations, output gap and actual inflation trend. I cant say if the Exchange Rate would increase, then we would ease the Monetary Policy. I cant say we target our policy to inflation rate. As for the larger japanese economy, governor kuroda said it was on the slow or moderate recovery path. The question is whether it can stay on that path if that tax height could backfire. Hes confident its working. He has not budged there and wouldnt hesitate to move further into negative territory. He says its about patience. Hes seen the signs. The market is clearly growing impatient, but hes saying with time there will see the results. So hes not concerned at all about all the criticism coming his way. Akiko, thank you for bringing us that rare interview. Always great to hear from a central banker, especially one of the most powerful in the world. Of course he was saying he remains focused on the domestics situation only, but he would be looking for a hike from the fed. 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You wouldnt take medicine without checking the side effects. Hey honey. Huh. The good news is my hypertension is gone. So why would you invest without checking brokercheck . Check your broker with brokercheck. Welcome back to Worldwide Exchange. President obama is on a threeday trip to vietnam. Tracie potts is here with the latest. Reporter good morning, everyone. This is a big deal. Its a historic agreement between the u. S. And vietnam erasing essentially one of the last elements of the cold war. But it does not mean the u. S. And vietnam are on the same page on everything, namely human rights. Despite lingering concerns about human rights this morning, president obama announced the u. S. Is lifting its near decadeslong arms embargo against vietnam. This change will ensure vietnam has access to the equipment it needs to defend itself. Reporter against china explaining the islands in the South China Sea and the relicense on russia. The president also announced new investment in vietnam. 100 planes from boeing, engines and electricity from General Electric totaling 16 billion. And the white house says 60,000 new jobs. New companies and new jobs are being created constantly. So the United States wants to be a part of that. Reporter there are concerns over human rights abuses that will be addressed. We need to work closely together to expand our dialogue together and by so doing we can narrow the gap. Reporter historic agreements announced today expanding americas reach into one of the Fastest Growing regions of the world. Now the president also commented this morning on the tpp, that transpacific partnership, the trade deal that has been stalled here on capitol hill. He said that he realizes its an Election Year and will be a tough one to push through, but he thinks they can still get it done. And vietnams president talked about it as well saying they stand ready to ratify the deal. Even though some members of his own party dont agree with it. Its the democrats that have the most opposition to it, isnt it . Well, there has been opposition really on both sides. You bring up a good point, not everyone, even in the president s party, thinks the trade deal is the best deal, that its going to work. But the president said this morning that, yes, there are some things such as currency manipulation they couldnt fully deal with in this deal because of some sovereignty concerns. He thinks that its the best way to move forward and get the u. S. In a position to take, you know, to rap some economic benefit from one of the Fastest Growing regions in the world. Tracie, thank you. When you have bernie on one side and trump clinton has changed a bit. Shes not as against it as the others, but definitely a tough one to ratify. To other political news, donald trump is looking for a running mate. Reports say hell meet today in new york with tennessee senator bob corker, chairman of the Senate Foreign relations committee. Many have said corker is a top contender for the vp job. That will be an interesting little meeting to keep an eye on. Switching to golf now, rory mcilroy winning a tournament in his own backyard this weekend. The fourtime major winner taking home the trophy at the irish open, not strictly his backyard, hes an irishman but well go with it. Hes doing Something Special with the prize money, hes donating 750,000 money to the charity, the Rory Foundation raises funds for children who are ill and disadvantaged in ireland. Congratulations to him on that win and kudos for the donation. When we come back, this mornings top stories including bayer announcing the 62 billion offer for monsanto. That brings us to the twitter and facebook question of the day. It may not be the sexiest of deals when talking about a seed company, but with a 62 billion price tag, can it kick start what has been a slow year for m a . Well bling yring you the resul later in the show. What should be sexy . Technology nothing like genetically modified organisms to get us going on a monday morning. We are back in two minutes. Good morning. Bayer announces a 62 billion cash offer for monsanto. Fed speak and speculation. Is the central bank moving closer to a rate hike in june . It could be on the table this morning. And trending today, well bring you the highlights from last nights Billboard Music awards show. Its monday, may 23, 2016. And youre watching Worldwide Exchange on cnbc. Good morning. Welcome back to Worldwide Exchange on a monday on cnbc. Im sara eisen. Im wilfred frost. A very good morning to you as well. Futures are holding on to slight gains at the moment. 17 points higher for the dow. Last week we saw the s p just in positive territory, the nasdaq up 1 . The dow was down for the fifth week in a row but the general takeaway is that markets were broadly flat on the week despite talk of an extra rate hike coming pos