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tv   Worldwide Exchange  CNBC  June 6, 2014 4:00am-6:01am EDT

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the headlines from around the globe. shareses from the lender as they begin trading. litigation costs will erode its capital base.
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today's jobs report expects to show hiring expanded at a solid rate last month, adding around 210,000 jobs. and world leaders coming together to remember d-day, 70 years after allies stormed the beaches of normandy. russia's president vladimir putin and russian leaders since the ukraine crisis. you're watching "worldwide exchange," bringing you business news from around the globe. welcome to the last "worldwide exchange" of the week. this is air force one, a different version of it. in normandy. it's just landing. president obama arriving for the 70th anniversary of the d-day landings which of course liberated -- started the liberation of western france
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from nazi occupation. we'll have more on this throughout the show. it's also the last time that many veterans associations will be attending such events as well in normandy. so it really is an occasion. but first let's remind you where we stand with european equities an hour and two minutes into the trading day. weighted to the upside around. 6-4, advancers currently outpacing decliners. the ftse 100 actually ended down by the end of the session. not by much, just off five points. the rest of european equities were up. the dax post the ecb closing up 0.2%. the cac current was not looking too badly yesterday, up about a percent. this morning down. the ftse mib, we saw a fall in
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the yields. yesterday it was up well off 1.5% as well. let's show you where we stand. the nikkei fairly flat. shanghai composite off 0.5%. in india, the sensex up a percent. bond rates very important ahead of today's employment report. looking for a jobs creation of around 210,000. treasuryiels, just over a week ago of course that we hit the fresh 11-month lows. 2.42% was the yield on the ten-year. just back down a little bit as well. italian yields have continued to decline this morning. before the ecb we were around about a 3% yield. this morning back down to 2.84%. that's where we're seeing evidence of continued impact from the ecb announcements. big impact on the euro/dollar during the session. 1.3647. very volatile couple of hours
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yesterday afternoon. just to remind you, just before the ecb announcement, we were trading around 1.36. we went down to 1.3505 which is a fresh four-month low and rebounded back to 1.3 and now 1.3648 is where we stand. dollar/yen is steady. and sterling just above 1.68. so we're caught between what the ecb did yesterday and looking ahead to the jobs report today. remember, mario draghi made clear that yesterday's action is by no means the end result. >> first question you ask when these press conferences, was it unanimous? this time it was unanimous. i just want to really -- i'm really very grateful to all my colleagues in the governing council. because being able to agree to
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have yunanimity means an extrem ly unusual degree of consensus. >> the focus switches to the united states, the nonfarm payroll report comes in at 8:30 eastern. they're in the predicting a repeat of the volatility of last month's report. the consensus there for forecast for an increase of 210,000 jobs. 288,000 in april which marked the strongest net monthly job creation in over two years. there was a rebound from the weather affected first quarter. unemployment, well, that rate is seen ticking up slightly to 6.4% although a slight rise to be expected as more people return to the job search, reflecting an improving economy. what does all of this mean? >> joining us is allen miller, founding partner of scm. post-ecb yesterday, has that
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changed anything that you'll do with your investment outlook? >> no. it hasn't. i mean, i think draghi has done a fantastic job in basically saying what the markets want, what they wanted in the short, medium term but the actual fundamental issues are still there. if you look at earnings from european companies they're still being downgraded at a much higher rate than all over the world. you're basically a higher multiple for a lower growth and higher risk of that growth because it keeps on getting downgraded. >> we are on course for eight weeks of gains. the xetra dax hit a high during the session. we went through 10,000. it came back, didn't finish there. it seems to be central banks will keep conditions loose. >> you're right. sooner or later draghi will probably have to have some form of quantitative easing. it will be quite a while before
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it will have a major impact. >> he was talking about three to four quarters to see whether those measures have some impact. we suggest at least he's going to wait that amount of time before he thinks about qe. >> he's done a brilliant year. a year and a half ago he said he'll do whatever it takes, those words saved a huge amount of actually doing anything. the measures yesterday gave him more breathing space. actual things eventually improve. when you invest, you're buying companies, buying market. if you're buying those companies in markets where there isn't much growth and paying quite high valuations, that's a toxic from the nation. >> how would you prepare valuations to the valuations in the u.s. >> i think the u.s. valuations have been reasonably full. u.s. earnings are still coming through. if you look at the last two or three months, the u.s. earnings have been marginally upgraded.
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the rest of the world is still having small to medium sized downgrades. in a way, at least the u.s. companies are growing into the valuation. u.s. small caps still look insane. the valuations of u.s. small caps are about as high as they've ever been. and even u.s. small cap fund managers are warning people not to invest. >> you look at the russell 2000. it's been a lagger. is that justified? >> you saw that last year or toward the end of last year with biotech and technology. you've seen it in the uk yesterday where stocks like asos falling 30%. >> asos is still trading at a p/e. it hasn't changed. >> you're exactly right. it's 9 multiple but it's collapsed 30%. it shows the danger of buying things just for growth's sake. i saw this piece of research, an old piece of research over 10 or
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20 years. they looked at different factors and their impact in predicting future returns. and if you look at the amount of rainfall, the amount of rainfall was a bigger indicator than future earnings growth. it's p/es, dividend yields, the old-fashioned metrics when people get obsessed by the growth rate. what normally happens quite often, whether it's a market or a stock like asos yesterday, it means you're priced to perfection. when you slightly disappoint, your shares collapse. >> what are you doing right now? where are you focusing? >> we think the best measure for investors is to have a broad spread, broad spread, not just equities but equities and bonds together. diversified in the uk and u.s. we're concentrating on large cap. we've been buying it over the last 12 months. we have a small cap where one of the few areas in the world where you can still pick up. >> small cap?
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>> small cap emerging markets, you're paying 11 times. it's growing by 18 or 19% per annum. if you can combine reasonable growth on low evaluation, you make a lot of money. >> good to have you on. more to come from you. don't forget, of course, there's plenty more to come on the show as well. the world's most famous computer game turns 30 today. we'll take a closer look at the obsession over tetris. that's coming up next. ♪ ♪ (man speaking chinese)
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you're watching "worldwide exchange." a lot of stories to follow in the bank secretarier this morning. deutsch shares are in the red. the subscription rights as it begins to trade. they are unnerved as they face litigation costs. they say investigations into foreign exchange manipulation could have a material impact. stock is down another 3% at the same time, they are under investigation for its hiring practices in china. this according to reuters sources. they are examining whether the bank employeed the children of chai these government officials to help win deals. i feel like we've heard that one before with other banks.
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bank of america is in talks to settle probes by the justice department and several u.s. states. overall, it's described as shoddy mortgage practices. they report bank of america could pay $12 billion, at least 5 billion of that is expected to go towards consumer relief in the form of reducing principle and monthly payments and paying to remove run dunn or abandoned homes. the lender faces multiple government probes over its handling of mortgage bonds before the financial crisis. bank of america stock down around 0.8 in frankfurt. barack obama has ruled out riding to the rescue of bnp paribas over its rumored sanctions busting fine. the president of france, francois hollande described the $10 billion fine as disproportionate. boom said intervention was
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really out of the question. >> the tradition of the united states is that the president does not meddle in prosecutions. >> and shares in commerzbank, socgen sounds out german government on buying commerzbank stake. >> we're looking at the ecb to try and get measures to get banks to lend. read all those stories, whether it's regulations, fines or whatever it is. there's massive tax going on on the banking sector. >> yes. >> right? >> raising the cost of money, i would imagine.
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what is it doing for your thoughts of the sector as an investment? >> we tend to invest in overall markets rather than particular sectors. it does make you question if you like the long-term investment rationale. if you do well, you'll get taxed or if you do badly, you'll have to get money off shareholders. >> that's a bit of an issue. i just want to go back to the point you were making earlier, small caps and emerging markets. are you buying -- how are you doing that? >> we're buying an index of about 500 plus stocks. so the great beauty of buying an index of small cap is you take out the individual small cap risk. so you get the growth of the overall asset but you don't get the risk attached to any one particular company and you spread it across the world in that instance and it cost you very little. it's a fantastic way to actually -- to get the small cap effect. >> what are the risks with small
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caps in the emerging markets at the moment? >> the risks, you have outflower sentiment going against it. in a way when you invest, you're investing on the basis of a price. if that price is low and the prospects attractive, that's the time to invest rather than sell in my view. >> you mentioned bond markets as well. corporate debt, peripheral debt, sovereign? >> we've been buying local currency emerging market debt. about a month and a half ago you could get yields about 7%. we've completely exited u.s. high yield bonds where you have a higher -- a lower credit rating, higher risk, probably higher liquidity risk and you get a lower rate. to get better credit, better interest rate, better yield redemption, better liquidity seems quite an attractive switch. >> do you play mobile games? >> my kids do. i'm useless. >> stick around.
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we have one more interview, you might want to chip one in here. ever feel like -- you've been playing too much tetris. today marks 30 years since nintendo first showed us how exciting piling up strangely shaped blocks can be. why obsessed with such a simple game and what has tetris done in terms of the world of mobile gaming? joining us is steven upstone, co-founder of loop me. you're also the mobile marketing chairman, aren't you? >> yes. good to see you again. >> 30 years since tetris. how key has tetris been in launching mobile gaming. >> tetris was named the greatest game of all time by experts and magazines. it took off on mobile when you were originally using gameboy in
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limited graphical forms. if you look at it, they've sold about 170 million copies, i think they announced in 2010 of which 100 million came actually to phones. all of those early days of using consoles and gameboys, never gave them the same kind of reach they got on seimomartphones. >> is it the paddle version? >> no, it's a block shorting game. >> i know what it is. in terms of its impact, we think of the first major video game is paddle tennis or space invaders. >> i think it's huge for a big category called casual gaming, which brought a lot of women into the industry as well. it's a puzzle solving game. there are others in another genre, like candy crush, which has been a massive business. the big defining moment is when
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these games convert to smartphones. tetris, greatest game of all time, arguably, had 170 million copies sold. we work now with talking tom and angry birds where they've had 2 billion or 3 billion copies downloaded. it's a much bigger scale. there's one of these in every pocket. that's the big shift. >> it's very easy -- it's not easy, but you mention angry birds. there are extraordinary hits. people don't know what's going to be hit or not. i suppose it's like making films, i guess. when you have a big hit, how do people monetize that? actually how difficult is for them to come up with another one? >> it's a great question. so i think there's a couple of things that have changed in the market that makes some of the these businesses less hits driven if you'd like. that is now they are also a platform. in the past, if you're a games
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publisher, you couldn't then use that game to remarkette to someone else. where as now you can download a game from a game. and also the other big asset these big games companies like king have is all the data they have. so it becomes a market where there are billions of consumers who can now access these games and their phones. and learning which people like playing which games and how much they like to spend on those games. business model now is typically you're given the game for free, allowed to play it and the more you play it or enjoy it, the more you're likely to spend on it. >> investors clearly have skepticism about repeating the trick. it's about, as you say, a sustainable business model. >> i couldn't comment exactly on the share prices. but i do think that you're investing in a couple of interesting trends. one now this massive scale of distribution. women are now playing more games than men are. that just is unthinkable a
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couple of decade ago. and you're also taking a bet on their ability to use this data to remarkette themselves. once they've built a business, they can acquire hot new young game studios that come through. you move from being a publisher to a platform. that's a key shift which investors should think about. companies like myself will sit there with large amounts of data putting video ads in front of very soon to be as many as a billion consumers around the world. it becomes a very, very big scaled business. you know, the russian markets, chai these markets. it's absolutely huge. >> do games translate easily from a -- >> they do need a little bit of work. >> there is one set up in london over the last year. they med a big play. can you translate? >> some games need more
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translation than others in a very literal sense. if you have a game like ruzzle, a word game, you'll have to change the structure of it. there are subtleties, the way users interact with graphics, music works better in different areas. there's a whole localization business that take these games into multiple territories. actually, the translation hurdle is not huge. you have very small companies, 30, 50 people who create games that are really distributed on a very global basis. very, very quickly. that's i think the speed of marketing is much faster than it has been before. these are social games. if i'm playing it, i want to tell everyone else what score i've got, i want to play directly against my friend. my wife will play against her friend in berlin, a scrabble game or something like this. and that social piece is also a
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very important distribution method as well for the games company. they have this data, they have a social distribution channel as well. and a massive scaleable audience. it is still ultimately kind of hits driven but i do think it starts to evolve into being a platform business. that's interesting. >> what do you think of of that? >> the one thing i always wonder is some of these games, a lot of the people are kids playing them. and this model of the free, then they have to unlock the different stages and different parts. how much -- i mean, sooner or later someone will probably tighten up. because normally it's not their phone. it's mom or dad's phone. and this huge bill is potentially being paid unknowingly by the adult, by the kid unlocking these different stages. >> this is really important. there's a big change now that your child is often playing on your phone. you couldn't ever give your child a pile of money and let them loose in a sweet shop.
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if you're letting them know what your pass code is, that's what you're doing or letting them loose in hamley's or something like that. i don't think that need be a concern. publishing is a business model. always had a problem where people might buy something they might not use. how many women have a dress in their wardrobe that was never used or a book on the shelf. >> never happens. never happens. >> that problem actually is overcome by paying for usage. to have something for free is a great step forward for the consumer. yes, you need to be very careful you don't leave your kids with large amounts of money or access to money. >> yes, very good point to make. thanks for joining us. have a good weekend. what's your favorite old school video game? e-mail us worldwide@cnbc.com, tweet @cnbcwex or direct to me @rosswestgate. your favorite old school game?
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i don't know whether they mean video or anything else. let us know about that. meanwhile, d-day 70th anniversary is under way in normandy. world leaders and dignitaries gathering for commemorations. today marks the day in 1944 when thousands of allies forces landed on normandy's beaches in one of world war ii's key turning points. it's the first state event to be attended by russian president vladimir putin since the onset of the crisis in ukraine. more pictures from normandy to come. the eheir of the samsung great may have to start tightening the purse strings. the shares down to their lowest level in two years, that's prada. all the details still to come. plus, they're off. the belmont stakes horse race
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take place in new york tomorrow. the third and final leg of the u.s. triple crown. what trick do some of the jockeys have up their sleeve this year? we'll head out to belmont in new york a little bit later. show 'em the curve. ♪ it's beautiful. it's more than that... ...it's perfect. introducing curved ultra high definition television from samsung.
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you're watching "worldwide exchange," bringing you business news from around the globe.
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headlines, deutsche bank stock slips in frankfurt. shares from the lender's rights issue begin trading. litigation could erode its capital base, they warn. another day, another fine. bank of america reportedly facing a $12 billion cost from the u.s. justice department over what's been described as its shoddy mortgage practices. cautious trading for european equities. investors focus today on the state of the u.s. economy. the jobs report expected to show hiring expanded at a solid rate last month, adding around 210,000 jobs. and president obama lands in france as leaders come together to remember d-day 70 years after allies stormed the beaches of normandy. it's the first event attended by russian president vladimir putin and western leaders since the ukraine crisis.
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we have news out as far as the uk is concerned right now. it's the global trade and inflation expectations out of the ecb. the bank of england survey shows 42% of the public sees a rate rise in the next 12 months, up from 40% in february. inflation expectations in the year ahead, plus 2.6% in may. but that's down from 2.8% in february. so britain's expectation for interest rates edging up, although inflation forecasts have fallen. we have the latest trade data out of the uk as well. the global goods trade balance minus 8.924 billion. we thought it widened to around 8.65 billion. the trade balance minus 3.7 billion. that's wider than 3.1 as well that we were particularly looking for. the headline trade deficit figures include an estimate for
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oil figures, exports to the eu which were omitted from the detailed figures. sterling, we'll see what happens. it was just over 1.68 before that data comes out. trade deficit looks wider than we thought. european equities, an hour and a half into the trading day, they are up 0.3% for the ftse, 0.2 for the xetra dax. ftse mib still had the best gains yesterday. we continue to see bond yields come down and post the ecb action and indeed in spain as well. yields on ten-year paper in italy have now got a 2.8% handle on them. there we go. 3.81 is where we currently stand. treasury yields, they fall this morning. on the currency markets, keep your eye on the euro dollar. 1.3628. we were just above 1.36 prethe
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ecb announcement. we came all the way back again. we'll talk about this in just a second. and it follows, of course, mario draghi making it clear that yesterday's action is by no means the end result. >> we think it's a significant package. are we finished? the answer is no. we aren't finished here. if need be within our mandate, we aren't finished here. >> mr. draghi yesterday joining us in the studio, director of fx strategy at citi. good to see you. just explain what happened yesterday. it's rare that you'll get one big figure moved down and reverse that one big figure move in the space of a couple hours. >> that was quite an interesting price action. i have to say, disappointing for those who are hoping that draghi's signals will be sufficiently encouraging for people to act euro short.
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part of the explanation has the excessive positioning in the options market. while before the event, market was overnight volatility was up 24, actually looking for a bigger move, 150 below 1.35. what we got was a move to 1.35. market was long, that led to investors crumbling to cover those loans which helped in euro initially and, again, given that euro/dollar is down four big figures from the highs around 1.40. also that led to some profit taking. clearly, the disappointment is the fact that president draghi's signals, the programs that were announced did not encourage further short or adding to the shorts. >> there was quite a lot of shorts already in place, right, as we understand the positioning? >> indeed. in the options space, yes. our flow data does suggest that some profit taking has been taking place ahead of the event. so in the spot market, that did
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not seem to be the case, euro dollars trading in a tight range. the important upshot here is that it may take a bit more of encouragement if you wish, for the markets to pull on fresh short in the case of euro/dollar. >> what form does that encouragement have to take? >> clearly one particular driver would be improving u.s. data. part of the euro/dollar performance has to do with the dollar's lack of performance. cable, looking at dollar/yen, that's evident. key today, payrolls. we think the risks may be on the downside. citi's call is below consensus. this may discourage, if you wish, adding to the euro/dollar shorts. down the road, however, what we experienced yesterday, it was quite a significant change in the ecb's policy, outlook really, i think mr. draghi overdelivered in many respects. from that point of view, any bets on the upside, i think could be discouraged from here. so the longer term risk for euro/dollar could still be on the downside.
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>> to get it going, it's going to be dependent on u.s. data coming better and taking a view that, yes, at some point the fed will tighten. >> well, i think that -- in many ways, there's still quite a few houses arguing that the ecb measures disappointed to a degree. what i think investors may be underestimating is the true impact of a measure like negative deposit rates. you have to think of it, eurozone banks saddled with cash they want to get rid of, otherwise they will get penalized. they can buy safe haven assets if you wish. how much further on the downside can you go before it turns negative? >> we'll have to keep buying spanish and italian paper. >> the point is we are heading into the stress test. as part of the stress test, they will be penalized for their exposure or overly extended exposure to government debt. needless to say, they can always end. that's the ultimate goal but there is no real demand as of
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yet. the path of least resistance will be to sell euro and buy higher yielding assets. that's why i think one potential trigger for -- >> they might buy treasuries. >> the point is you could still buy u.s. stocks or indeed corporate bonds. right? we did see quite some outflow out of the markets at the start of the year. the ecb's actions may trigger a reversal, especially if the u.s. data starts improving. the thing is, there are reasons to expect that the markets may be underestimating the actual impact of that particular measure. needless to say if indeed that commitment or precommitment to do more, as mr. draghi was saying, could actually re-introduce the downside risk in the euro that may mean that foreign investors are still keen to grow the exposure to the eurozone are becoming more worried about the euro downside. right? so that the correlation between euro dollar and european stocks, which at the moment is close to
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zero actually could turn negative. if you use the yen as a template for the euro down the road where the correlation between yen and -- is negative, we are not there yet. what the ecb is doing and what they'll keep doing is likely, in my view, ultimately investors will realize the risks are on the downside. they'll start hedging that euro exposure more aggressively. >> good call. good to see you. thanks so much for coming in. don't forget we have an exclusive interview with the vice president of the european central bank, vitor constancio. he'll join us at 15:45 cet. these are the latest pictures as well from the 70th anniversary d-day commemorations. president barack obama landing in normandy as well. there he is currently exchanging pleasantries and saying hello to
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dignitaries. more pictures to come from normandy. spain's government is expected to sign off an a $6.3 billi billion euro exchange. they say the central bank's latest measures won't discourage reform. >> first, our package is not a disincentive for restructure reforms clearly they are two different things. we have mandate. the mandate is price stability. and the governing council is unanimous and determined to take actions, any action, within its mandate to reach the objective
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of priceability. are we comfortable -- you said something which actually i won't agree completely. are we comfortable with the degree of progress about structural reforms by the governments? no, no. we said, let me go back to the introductory statement. it was a sentence exactly addressed in your viewpoint here. it's quite a cautious sentence. it says as regards to actual reforms, important steps have been taken to increase the competitiveness of the adjustment capacity of labor and private markets, although progress has been uneven and is far from complete. that's not a statement of satisfaction. so that is quite clear. so no relation between this prom and that. this program basically complies with our mandate. which is price stability.
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second, no satisfaction. some progress but no satisfaction. >> and stephane joins us in madrid as well. nice to see you there. mr. draghi, no satisfaction with government structural progress there. what is spain going to do with this stimulus program? >> according to the prime minister, the program has been designed to boost investment in research and development and to basically reindustrialize the country. let's face it, ross, it's designed to work on the re-election of the prime minister just one year ahead of the next general election. the key announcement today will be a significant drop in corporate tax from 30 to 25% to give spanish companies some breathing space to hopefully create some jobs. and the other measure also is a reform of the personal income tax calculation to increase the disposable income for spanish
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families in order, hopefully, to boost consumer spending. in total, the package will cost 6.3 billion euros, but not all the money will come from the public sector. part of it, 2.7 billion euros will come from the private sector and the remaining part, 3.6 billion will actually come from the state. can spain really afford it? that's the question, ross. if you look at the forecast from the european commission, the spanish public deficit will be a fight from 6% of gdp this year and that 6% of the gdp next year. so definitely it doesn't go into the right direction and probably the tax reduction will raise the debate, will fuel the debate on whether or not spain can really afford a stimulus package. >> yes. we'll see what happens. stephane, good stuff. thank you very much indeed for that. now, the afghan presidential runner in the elections is apparently escaped an
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assassination attempt ahead of a second round in the election which is due to take place on the 14th of june. a bomb struck close to a presidential rally in western kabul. meanwhile, still to come on the show, former rocket scientist turned venture capitalist tells us which startup he thinks are set for liftoff. see you in a few moments. ♪ ♪fame, makes a man take things over♪ ♪fame, lets him loose, hard to swallow♪
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you're watching "worldwide exchange." markets being overshadowes s by international markets. the money is being funneled into a startup village just outside mosc moscow. joining us next, alexander golinski. thanks for joining us. congratulations as well on winning. you've had a fascinating career. you started off as a rocket scientist, you built five high-tech companies and then set up a fund to invest in companies and bridge russian tech with
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silicon valley. what's the climate like today for investing in tech when the west is trying to put sanctions on russia for events in ukraine? >> there's a lot of noise here. it's like formula one here. but i think that any crisis brings a brilliant challenge and has both positive and negative. of course, i believe it's a business and political issue in the current world and especially high-tech business. i believe that that will continue to be our business, which is bringing companies from small i.t. market to the global scale. is it our job.
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>> and the way you set out was to sort of make ties, particularly between silicon valley and russia and the investments you made in ukraine as well. >> is that being impact and how does that relationship work? >> the relationship is very straight forward. you've been speaking about i.t. companies in russia, only getting 3%, 4%, 5% of the world market. it's a bigger u.t. market in silicon valley or in u.s. for this reason we organize very strong team, they cover in eastern europe, russia and ukraine. they bring companies from these tyner mainy market to the globa market. we did successful exits of not
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just -- but also companies. it has brought for us belief that our model is working and we have very good portfolio of companies, which is good for us, it's a belief that our model bridges two continents. a different culture helped us build global companies. >> very brief, alexander. what's the next big area? what's the area that excites you, briefly? >> excuse me, one more time since there is noise. >> i want to know the one area that excites you in tech, big data, mobility, what is it? >> high-tech always excite me from my youngest time but the idea about excitement in high-tech, you change people's life for good. so you bring many interesting
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companies which sold many people problems. and it has changed for the best. it is what drives me. and to investment in high-tech and develop high-tech companies. >> alexander, good to speak to you. enjoy your time in monaco. alexander galitsky. these are pictures from northern france in normandy. world leaders and dignitaries gathering for the 70th anniversary commemoration of d-day. hundreds of thousands of forces landed on normandy's beaches. it's the first event being attended by russian vladimir putin with western leaders since the onset -- in corporate news, deutsche bank. the cash call beginning to
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trade, stocks down 3% at the moment. deutsch has unnerved investors by saying it continues to face litigation costs. also in the sector, the italian bank priced its 5 billion rights issue at a steep discount. we have more from milan. what happens now? >> well, ross, obviously today we're seeing a negative session. this rights issue is being priced at a 35.5% discount which is slightly above the range which was between 30 and 35. not too far from recent capital hikes that have been done here in italy, around 31, 30.7%. obviously different from deutsche bank that you just mentioned which is actual i a 21% discount. the other issue is the weight that is being put on the rights.
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the balance between the value that's going to stay in the stock and the one that's in the rights is very strong towards the right. so today you're seeing some selling before this capital hike actually goes into effect on monday. so that's what we're seeing effecting them. this $5 billion capital hike is well above the market cap which is at 2.9 billion euros. and higher than which was initially expected. the lender, italy's third largest, is actually continuing in its restructuring. continues to close branches. 500 branchs closed. 8,000 job cuts and is also moving forward and changes in its shareholder structure. after this difficulty that it had, the shareholder structure has been changing in the last month. it will be interesting to see what happens once this capital hike is carried out. remember also that they need to pay back 4 billion euros worth of bonds so they will be paying back 3 billion of this and this will also reduce interest
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payments. its profitability is expected to improve going forward. today we're getting the weak session on this big discount on the capital hike, yet another one from an italian bank. back to you, ross. >> it's all the rage, all the fashion as we say. >> yes, it is. >> thanks for that, claudia. prada looks to have fallen out of favor with investors. shares trading long in hong kong after the firm signaled a possible cap to its full-year outlook. the luxury group said it was impacted by unfavorable exchange rates and declining wholesale deliveries. the stock off nearly 7%. federal reserve governor speaking in london at the moment. he's saying forward guidance helped lower interest rates. the fed is on track to end the bond purchases in the fourth quarter of this year. and he's speaking prepared remarks for this event. we'll keep more eyes out for
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what he has to say. meanwhile, the japanese prime minister, shinzo abe ordered to accelerate the asset allocation of the world's biggest pension fund. we go to tokyo for more. >> the nikkei's reporting today that prime minister abe instructed welfare minister to speed up the government pension investment funds process by increasing investment in japanese shares. he said he will urge the gpif to complete the review process as quickly as possible. abe wants the fund to announce a new portfolio by september or october instead of the initial year-end deadline. the gpif is the world's largest fun pension fund with $1.2 trillion in assets. domestic bonds make up 60% and japanese equities around 17% of its portfolio. the fund is considering rotating money out of domestic bonds and into domestic stocks.
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if the fund increases the allocation with domestic shares by even 1%, it could pour around $10 billion into jab these pane equities. some suggest the fund is already buying more domestic shares already. in review of the portfolio is a key part of the government's new growth strategy due out this month. economy minister said today that he will make sure to include the gpif reform in the new strategy. so ross, i heard that it's your last day and i just wanted to tell you that it's been great working with you. i wish you the best of luck. don't forget to come visit japan someday. i know you will love it here. >> i'm going to be there next week. i won't be there next week. i have the opportunity to fly over. i won't be chained to this desk. thank you so much. it's been great to talk to you
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every day from tokyo. i appreciate it. thank you. see you soon. it will be nice to know we both have legs, not just the top part of our bodies. have a great evening. take care. let's remind you what's going on with the agenda in asia. monday, we get first quarter revised gdp out of japan on tuesday, we get ppi and cpi out of china. china's annual inflation has fallen sharply to 1.8% in april, the lowest in 18 months. on thursday, it's india's turn to come out with its own figures, cpi, of course. it's down to around 8%. and 6% the following year. thursday also sees the launch of air aaronia's first flight. the airline kicked off a price war in the country already. ♪
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meanwhile, you're looking at pictures from normandy in northern france. world leaders and dignitaries gathering for the 70th anniversary kmem rags of-- commemorations of d-day. ♪ a reminder of where we stand with u.s. futures at the moment. we are caught slightly higher ahead of the jobs report. "worldwide exchange" continues right after this.
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the jobs report expected to show hiring at a solid rate last month, adding 210,000 jobs. and another day, another fine, bank of america reportedly facing a $12 billion cost from the u.s. justice department over what was called shoddy mortgage practices. deutsche bank sees its shares down in frankfurt. the stock from the lenders rights issue begins trading. this after the bank warned
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investors that litigation costs will erode its capital base. and leaders have come together to remember d-day, 70 years after allies stormed the beaches of normandy in the first state event attended by russia's vladimir putin and western leaders since ukraine crisis. you're watching "worldwide exchange," bringing you business news from around the globe. if you just tuned in, thanks for joining us on today's program. welcome to the start of your global trading day on cnbc's "worldwide exchange." u.s. futures ahead of the u.s. jobs report today are called a little bit higher. fresh record highs yesterday with the dow and the s&p, up 98 and 12 points respective lyresp. right now, the dow is about 15 points above fair value. the s&p 500 is a point above fair value and the nasdaq three
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points above fair value. european equities have been calling higher. the ftse 100 was down five points. right now it's up 21. 0.3%. the cac current is flat. the ftse mib adding to the 1.5% gains. on bond markets, yields on ten-year treasuries coming down slightly. 2.56% yield. a week ago we were down on that 11-month low of 2.42%. the key one to look out, post the ecb, italian gilt-year-olds down and euro dollar at 1.3637. we went down to 1.35, then it was back up to 1.3636. besides the countdown, of course, the jobs report today, d-day commemorations are currently under way in normandy. world leaders and dignitaries gathering for the 70th
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anniversary commemoration of d-day. thousands of al lied forces landed on normandy's beaches in one of world war ii's key turning points. it's the first state event attended by the russian president vladimir putin since the onset of the crisis in the ukraine. the french president francois hollande is now about to speak at the podium. while that is going on, we have news coming out from vitor constancio. he says we need inflation at a more reasonable level to tackle debt. and this, of course, coming off the ecb moves yesterday. he said the asset quality review should dispel lingering doubts on the capital base and interest rates will stay stable for an extended period of time. there is a desire to do more if necessary. the measures they don't work
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that they announced yesterday. then there is a promise of potentially more to come. we'll have more of an exclusive interview with the vice president of the european central bank with mr. constancio at 15:45 cet. analysts are not predicting a repeat of the volatility of last month's report. the consensus forecast is for an increase of 210,000 jobs following a gain of 288,000 in april, which marked the strongest net monthly job creation in over two years. unemployment is seen ticking up slightly to 6.4%, although a slight rise is to be expected because the work force is expanding. more people returning to the job search. joining us as ever on a jobs friday, i'm happy to say, here's director of economic research at
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kohn resnick. what's your call, patrick? >> good to see you. >> we're looking for about 240,000 net increase in employment. we're more optimistic. as you pointed out in the lead-in, that will be substantially below the very good number that we saw in april. a lot of the difference between april and may is the fact that the april hires were bolstered by weather deferred hiring that hadn't gone on in the bad winter months. we're looking for a good number. >> how do you square up what we heard this week from the likes of adp? 109,000 in may was less than many had been expecting and what the employment components of the isms were telling us? >> i read the ism report, both on the manufacturing and the services side, to indicate that the outlook for hiring is very much improving, especially after we got the revised ism data.
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the adp report doesn't always track that closely with the bls figure, which is the one we're using as our baseline for the forecast. in fact, if you look at last month, the adp estimate is still well below what we got as the preliminary estimate from bls. i took note of it but it didn't cause me to revise downward our expectations. >> we have a big decline in unemployment rate last month, of course. is the labor force expanded now? is that rate going to tick up? >> well, last month we had the largest single monthly drop since the late 1940s. and that's very volatile number month to month, the number of people in the labor force. the number of unemployed, the number of employed. our expectation is that the underlying momentum in the economy is such that we will
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probably see a virtuous rise in the unemployment rate this month, meaning that people return to the job search now that it appears there's more jobs out there. we're also expecting there will be more job hold s. we're nowhere near the kind of growth that we need but at least we are making progress. our labor force participation rate, our employment rate still are at low levels, though. >> pat, stay there. we'll come back to you. get a cup of coffee. apparently you're going. thanks for that, pat. patrick o'keefe, director of economic research at cohnresnick. we'll speak to a 21-year-old heading an online company. we'll have the details, next. [ male announcer ] whether it takes 200,000 parts, ♪ 800,000 hours of supercomputing time,
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3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes. our passion to make it real. ♪
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you're watching "worldwide exchange." and recap of the headlines, jobs friday arrives, a solid pace expected but no repeat of last month's bumper reading. another day, another fine. bank of america reportedly facing u.s. charges over its mortgage practices. and the world remembers, leaders and dignitaries gather in northern france to commemorate the 70th anniversary of d-day.
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now after starting his first online company at 15 years old, our next guest went on to create an e-auction site that last year brought in $50 million in revenue. joining us is william wolfram, ceo of dealdash. william, nice to see you. i see you've got wearable technology. are you watching this program whilst you're speaking to me? >> thanks for having me. no, unfortunately not yet. >> what are you doing with that eye piece there? >> well, you know, we think this is the next platform. we'll be building apps on top of this layer. i can get my e-mail and schedule here but soon i'll be getting other things. >> you love your google glass, right? >> i'm a big fan. so are our team members. >> you started your tech company
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from finland as a 17-year-old. dealdash.com, explain exactly what it does. >> sure. so six years ago in finland i lost 50 euros trying to get a mac book on a penny auction site. i was ticked off. the more i learned, the more i discovered that there were a lot of people around the world with the same problem i had had. so i came up with an idea of eliminating the risk from penny auctions and six months later we started the company in finland, serving only u.s. customers. >> all right. you made massive investment into the mobile segment. what's the key now? what's the next stage of your business? >> well, our customers are really on the go and they want to be able to get their items that they buy from us, not just waiting at home but also getting in any store they go to. we partnered up with phenomenal retailers like best buy, sears, walmart and we're rolling out things like in-store pickup in
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the coming months. >> and william, you're celebrating entrepreneurship. what's the most important thing you've learned in your, so far, young business career? >> i think talking to customers every day has been the most valuable lesson i've learned. we do it, i talk to customers every day and everyone in our company, whether an accountant or engineer, they have to speak to a customer once a week. that's been really helpful. >> good to see you, william. congratulations. do you go to sleep with those google glasses on? >> actually, after a while they blend in and become an extension of yourself. it could happen. >> that's what i'm worried about. let me tell you, that's what i'm worried about. have a good time in monaco. congratulations. we'll follow the progress of dealdash. >> thanks for having me. still to come, stay tuned for the latest 0 our tech drivers series. we'll take a look at how
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marketing is getting a reboot from the digital world. free hot breakfast options. hampton, enjoy our you did a great job. it looks good! ...then fuel up with double points or double miles on your next getaway. make every stay more rewarding and feel the hamptonality
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70th an verse of d-day.
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president obama is about to speak. >> the people of france, friends, family, our veterans. if prayer were made of sound, the skies over england that night would have deafened the world. captains paced their decks, pilots tapped their gauges, commanders poured over maps, fully aware that for all the months of meticulous planning, everything could go wrong. the winds, the tides, the element of surprise. and above all, the audacious bet that what waited on the other
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side of the channel would compel men not to shrink away but to charge ahead. fresh face gis rubbed trinkets, kissed pictures of sweethearts, checked and rechecked their equipme equipment. god asked one, give me guts, and in the predawn hours, planes rumbled down runways, gliders and paratroopers slipped through the sky, giant screws began to turn on an armada that looked more like ships than sea. and more than 150,000 souls set off toward this tiny sliver of
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sand upon which hung more than the fate of a war but rather the course of human history. president, distinguished guests, i am honored to pay tribute to men and women of a nation who deified every danger. among them are veterans of d-day and gentlemen, we are truly humbled by your presence here today.
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>> just last week i received a letter from a french citizen. dear mr. president and the american people, he wrote, we are honored to welcome you, to thank you again for all the pain and efforts of the american people and others in our common struggle for freedom. today we say the same to the
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people of france. thank you. especially for the generosity that you've shown the americans who have come here over the generations. to these beaches and to this sacred place of rest for 9,387 americans. at the end of the war, when our ships set off for america filled with our fallen, tens of thousands of liberated europeans turned out to say farewell, and they pledged to take care of the more than 60,000 americans who would remain in cemeteries on this continent. in the words of one man, we will take care of the fallen as if their tombs were our children's.
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and the people of france, you have kept your word, like the true friends you are. we are forever grateful. here we don't just commemorate victory, as proud of that victory as we are. we don't just honor sacrifice, as grateful as the world is. we come to remember why america and our allies gave so much for the survival of liberty at this moment of maximum peril. we come to tell the story of the men and women who did it, so that it remains seared into the
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memory of a future world. we tell this story for the old soldiers who pulled themselves a little straighter today, to salute brothers who never made it home. we tell the story for the daughter who clutches a faded photo of her father forever young, for the child who runs his fingers over colorful ribbons he knows signifies something of great consequence, even if he doesn't yet fully understand why. we tell this story to bear what witness we can to what happened when the boys from america reached omaha beach. by day break, blood soaked the water, bombs broke the sky, thousands of paratroopers had dropped into the wrong landing
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sites, thousands of rounds bit into flesh and sand, entire companies worth of men fell in minutes. hell's beach had earned its name. by 8:30 a.m., general omar bradley expected our troops to be a mile inland. six hours after the landings, he wrote, we held only ten yards of beach. in this age of instant commentary, the invasion would have swiftly and roundly been decla declared, as it was by one officer, a debacle. but such a race to judgment would not have taken into account the courage of three men. success may not come with rushing speed, president roosevelt would say that night, but we shall return again and again.
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and paratroopers fought through the countryside to find one another, rangers pulled themselves over those cliffs to silence nazi guns. to the west, americans took utah beach with relative ease. to the east, the british tore through the coast fueled by the fury of five years of bombs over london and a solemn vow to fight them on the beaches. the canadians, whose shores had not been touched by war, drove far into france. and here, at omaha, troops who finally made it to the sea wall used it as shelter, where a general barked, if you're rangers, lead the way. by the end of that longest day, this beach had been fought,
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lost, refought and won. a piece of europe, once again, liberated and free. hitler's wall was breached, letting loose patton's army to pour into france. within a week, the world's bloodiest beach had become the world's busiest port. within a month, 1 million allied troops thundered through normandy into europe. as our armys marched across the continent, one pilot said it looked as if the very crust of the earth had shaken loose. the ark d-- arc de triumph lit p for the first time in years.
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of course even as we gather here at normandy, we remember that freedom's victory was also made possible by so many others who wore america's uniform. two years before he commanded armys, eisenhower's troops sliced through north africa. three times before d-day our g.i.s stormed the beaches at sicily, salerno, enzio. divisions like the fighting 36 brawled their way through italy, fighting through the mud for months. marching through towns, passed waving children before opening the gates to rome. as the dog faces march to victory in europe, the devil dogs, the marines, clawed their way from island to island in the pacific, in some of the wore's fiercest fighting. and back home, an army of women,
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including my grandmother, rolled up their sleeves to help build a mighty arsenal of democracy. but it was here on these shores, that the tide was turned in that common struggle for freedom. what more powerful manifestation of america's commitment to human freedom than the sight of wave after wave after wave of young men boarding those boats to liberate people they had never met. we say it now as if it couldn't be any other way. in the annals of history, the world had never seen anything like it. and when the war was won, we claimed no spoils of victory. we helped europe rebuild. we claim no land other than the earth where we buried those who
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gave their lives under our flag and where we stationed those who still serve under it. but america's claim, our commitment to liberty, our claim to equality, our claim to freedom and to the inherent dignity of every human being, that claim is written in the blood on these beaches. and it will endure for eternity. normandy, this was democracy's beach. and our victory in that war decided not just the century but shaped the security and well-being of all prosperity. we worked to turn old adversaries into old allies. we built new prosperity, stood once more with the people of this continent through a long
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twilight struggle until finally a wall tumbled down and an iron curtain, too. from western europe from east to south america to southeast asia, 70 years of democratic movement spread. nations that once knew only the blinders of fear began to taste the blessings of freedom. none of that would have happened without the men who were willing to lay down their lives for people they had never met. and ideals they couldn't live without. none of it would have happened without the troops president roosevelt called the life blood of america, the hope of the world. they were barely more than boys. they returned home heroes. to their great credit, that is
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not how this generation -- after the war, some put away their medals. were quiet about their service, moved on. some carrying shrapnel and scars found [ audio drop ] was much harder. many, like my grandfather who served in patton's army, lived a quiet life, trading one uniform and set of responsibilities for another as a teacher or a salesman or a doctor or engineer, a dad, a grandpa. our country made sure millions of them earned a college education, opening up opportunity on an unprecedented scale. they married those sweethearts and bought new homes and raised families and built businesses, lifting up the greatest middle
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class the world has ever known. and through it all, they were inspired, i suspect, by memories of fallen brothers, memories that drove them to live their lives each day as best they possibly could. whenever the world makes you cynical, stop and think of these men. whenever you lose hope, stop and think of these men. think of wilson caldwell who was told he couldn't pilot a plane without a high school degree, so he decided to jump out of a plane instead. he did here on d-day with the 101st airborne when he was just 16 years old. think of harry kolkowicz, the
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jewish son of russian immigrants who fudged his age and enlistment so he could join his friends and fight. don't worry, harry, the statute of limitations has expired. harry came ashore on utah beach on d-day. and now that he's come back, we said you could have anything he wants for lunch today. he helped liberate this coast after all. he said a hamburger will do fine. what's more american than that? think of rock merit, who saw a recruitment poster asking him if he was man enough to be a paratrooper. so he signed up on the spot. that decision landed him here on d-day with the 508th regimen, the unit that would suffer heavy casualties. 70 years later, it's said that all across ft. bragg they know rock, not just for his exploits
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on d-day or his 35 years in the army but because 91-year-old rock merit still spends his time speaking to the young men and women of today's army. and stin ble and still bleeds o.d. green for his 82nd airborne. whenever the world makes you cynical, whenever you doubt that courage and goodness is possible, stop and think of these men. wilson and harry and rock, they are here today and although i know we already gave them a rousing round of applause, along with all our veterans of d-day, if you can please stand, if not, please raise your hand, let us recognize your service once more. these men waged war so we might know peace. they sacrificed so we might be free. they fought in hopes of a day when we'd no longer need to fight. we are grateful to them.
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gentlemen, i want each of you to know that your legacy is in good hands. for at a time when it has never been more tempting to pursue narrow self-interest, slough off common endeavor, this generation of americans, a new generation, our men and women of war, have chosen to do their part as well. rock, i want you to know that staff sergeant melvin martin who is here today is following in your footsteps.
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he just had to become an american first because melvin was born in honduras, moved to the united states, joined the army. after tours in iraq and afghanistan he was re-assigned to the 82nd airborne. sunday we'll parachute into normandy. i became part of a family of real american heroes, he said, the paratroopers of the 82nd. wilson, you should know that specialists janis rodriguez joined the army not even two years ago, was assigned to the 101st airborne and just last month earned the title of the 101 of the airborne division air assault person of the year. women have taken on duties in combat like never before. i want each of you to know that
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their commitment to their fellow service members and veterans, sergeant first class brian hawthorne's grandfather served under general patton and general macarthur. he earned the bronze star in baghdad for saving the life of his best friend and today he and his wife use their experience to help other veterans and military families navigate theirs. brian's here in normandy to participate in sunday's jump. and here just yesterday he re-enlisted in the army reserve. this generation, this 9/11 generation of service members, they, too, felt something. they answered some call. they said i will go. they, too, chose to serve a cause that's greater than self. many even after they knew they'd be sent into harm's way. and for more than a decade they've endured tour after tour. sergeant first class corey
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remsburg has served ten. i told his story before. most recently when he sat with my wife, michelle, at the state of the union address. it was here at omaha beach on the 65th anniversary of d-day where i first met corey and his fellow army rangers, right after they made their own jump into normandy. the next time i saw him, he was in the hospital unable to speak or walk after an ied nearly killed him in afghanistan. but over the past five years, corey has grown stronger, learning to speak again and stand again and walk again and earlier this year, he jumped out of a plane again. and the first words corey said to me after his accident echoed those words first shouted all those years ago on this beach, "rangers lead the way."
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so corey has come back today along with melvin, janis, brian and many fellow active duty service members. we thank them for their service. they are a reminder that the tradition represented by these gentlemen continues. we are on this earth for only a moment in time. and fewer of us have parents and grandparents to tell us about what the veterans of d-day did here 70 years ago, as i was landing on marine one, i told my staff, i don't think there's a time where i miss my grandfather more, where i'd be more happy to have him here than this day. so we have to tell their stories
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for them. we have to do our best to uphold in our own lives the values that they were prepared to die for. we have to honor those who carry forward that legacy, recognizing that people cannot live in freedom unless free people are prepared to die for them. as today's wars come to an end, this generation of service men and women will step out of uniform an they, too, will build families and lives of their own. they, too, will become leaders in their communities and in commerce and industry and, perhaps, politics, the leaders we need for the beach heads of our time. god willing they, too, will grow old in the land they helped to keep free. and someday future generations, whether 70 or 700 years hence will gather at places like this to honor them.
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and to say these were generations of men and women who proved once again that the united states of america is and will remain the greatest force for freedom the world has ever known. may god bless our veterans and all who served with them, including those who rest here in eternal peace and may god bless all who serve today for the peace and security of the world. may god bless the people of france and may god bless our united states of america. >> you have been listening to president barack obama at the 70th anniversary of the d-day landings in normandy. as businesses more their i.t. infrastructure to the cloud, the trickle down effect is huge. in this edition of tech drivers,
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cnbc look at how they are getting a reboot for the digital world. >> reporter: it's not long since this was the cold, harsh reality of customer service. >> this is melissa, how can i help you? >> reporter: but the way enterprise interacts with customers in the digital world is rapidly changing. companies increasingly look online to connect with their customers, provide support, market products and gauge sentiment. it's a trend that's led to a flood of analytic systems looking to channel the huge data flow from social networks like facebook and twitter into analytical data. products like topsy and others have access agreements to analyze a brand's social stream based on metrics from quantity, sentiment and the collective clout of online posters. >> the use of social media has definitely evolved over the last few years. it's evolved from people just
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listening to now moving to becoming more actively involved, so becoming involved in the conversation as well. every single tweet that comes out of twitter we get in realtime. we're doing the same with the publicly available conversations on facebook. we're doing the same with all of the other publicly available conversations. >> reporter: it's a technology that's been embraced by everyone from sony's play station, honda, bskyb and even governments. >> if somebody was to come home, notice their streetlight is out and tweet, my streetlight is out again, wish the council would fix it, we would automatically create a case in our crn and get someone to go and fix it. >> reporter: it's not just customer service that can improve. a social media becomes more pervasive. new startups are becoming more creative about brand analysis. >> this boston startup ditto labs just secured $2.2 million in funding for a cloud that
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analyzes branding and images on photo sharing websites like flickr and instagram. cheers. >> reporter: it's the promise of further integration that's led to an m&a surge in the new crm and advertising industry. in the last 18 months alone, apple acquired topsy, and google bought behavio. >> people will talk about different services, brands in social media. gourder in likes to say the chief marketing officer by 2017 will have a bigger technology budget than the chief information officer. that's a fundamental shift right there. that assumption and trend is what's driven a lot of these decisions by larger software companies, sales force and oracle specifically. to acquire marketing companies. that's why we've seen other marketing companies, venture capital funding and ipo activ y activity. >> reporter: meaning there's a lot of companies who think the day enterprise hangs up on
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conventional customer service could be sooner than you think. >> we're sorry, the number you have dialed is not in service at this time. >> tom mckenzie with "tech drivers." next week, we're looking at cloud, mobile and social is revitalizing retail. that's 11:20 cet next friday. we'll take a short break. still to come, just a reminder, ahead of the jobs report today. futures are indicating a slightly firmer start. we'll be right back. in my kitc. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's 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.
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this is "worldwide exchange." i'm ross westgate. headlines from around the globe. cautious trading in europe. investors very much focused on the u.s. economy. the jobs report expected to show hiring expanded at a solid rate last month, adding 210,000 jobs. another day, another fine. bank of america reportedly facing a $12 billion fine from the u.s. justice department over its shoddy mortgage practices. deutsch stock slips in frankfurt. shares from the bank's rights issue begin trading, this after it's warned investors that litigation costs will erode its capital base. and leaders have come together to remember d-day, 70 years after allies stormed the beaches of normandy. in an emotional speech, president obama says he is hummeled to be there to remember
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those who fought in hope of a day when there was no longer any need to fight. >> the audacious bet that what waited on the other side of the channel would compel not to shrink away but to charge ahead. you're watching "worldwide exchange." bringing you business news from around the globe. >> poignant images this morning from the landing sites -- former landing sites in normandy and the commemoration services. u.s. futures right now are suggesting a slightly positive start but much will depend on what happens with the employment report, of course, at 1:30 eastern. they are calling for jobs of around 210,000 to be created for the month of may. meanwhile, horse racing history could also be made this weekend as kentucky derby and preakness
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winner california chrome goes for the fabled triple crown at the belmont stakes. if he wins it would be the first triple crown winner since affirmed in 1978. the prospect of that is ramping up interest and has got advertisers ready to pounce with endorsement deals. our very own morgan brennan joins us from belmont park, around 30 minutes from downtown manhattan. morgan, nice to see you. so look, many horses have come close since 1978 but few have -- no one has really made it, no one got the triple crown. how are people rating the chances? >> okay. let me break it all down for you. nice to see you, ross. come tomorrow, the track behind me is going to be packed with 120,000 visitors all here to see whether that racehorse, california chrome, can take home the triple crown. it's been 36 years. no horse has won this title in 36 years, despite 12 attempts. so if chrome were to win, his value could catapult
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exponentially. analysts saying this horse could already be worth $15 million to $20 million. with a triple crown title that could double, especially after the track as a stud. the odds are overwhelmingly in his favor. some folks are placing bets just for a piece of history in case their ticket becomes collectible, that could become more valuable. experts say the total handle wagered tomorrow should exceed $100 million. that's more than what's legally bet each year on america's biggest sporting event, the super bowl. now, companies are placing their own kind of bets, glaxo smithkline is going to be peddling human size nasal strips in honor of the horse-sized ones that chrome has been donning in his races. skechers is sponsoring the horse itself. those companies stand to be winners even if chrome doesn't win. that's because belmont races with a triple crown hopeful
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typically pull in 40% more attendees and we typically see ntra says that we typically see 3 million to 4 million more households tune in to watch this on television. i'm going to be standing here for the next couple minutes. we hear that california chrome will be coming out to do his morning trot in just a couple minutes. i'll see firsthand how he moves ahead of this race. >> what time is the race tomorrow, morgan? what time is the race, morgan? she can't hear us. okay. you'll find out what time the race is. i wanted to know. it's well worth tuning in for. before that today, at 1:30 eastern we have the u.s. nonfarm payroll report released at 8:30 eastern, 1:30 london time. economists expect it to expand at a solid rate though they aren't expecting a repeat of the
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volatility of last month's report. joining us is two guests. welcome to you both. mike, let's pick up with you first of all. what are hiring managers now saying about their intentions for the second half of the year? >> good morning, ross. we've heard from our hiring managers that we survey, that they're expecting an increase in the level of hiring. we do a semiannual survey. we just did it in the middle of may and 28% of the respondents in that survey said they would be increasing hiring as a result of an economic environment. we're seeing a pretty big push. >> mike, how are we going to trade through this today? mike girka? >> there's a lot of optimism in the market today. considering the market has rallied going into it, i would not be surprised if it goes through that. it's been a great week for gold. i think ten-year yields are poised to see a rally also.
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as a whole right now, a lot of people believe coming into the summer that this number will be one of the better ones. >> all right. mike, we have to go. obviously we got a little bit shortened today by taking the president's speech in normandy. thanks very much indeed to both of you. mike durney and michael gurka as well. after 20 years, this is ross's last day on cnbc. very sad. before we talk to ross, i want to let you look in at some of his highlights of his time with cnbc. >> hello. it's monday, june 3rd, 1952. this is the news. >> who was that handsome man? >> that is of course ross westgate. >> the peace, the tranquillity, the sheer beauty. >> how can we talk about anything after that? >> we will be taking the full
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eclipse live. we have our glasses ready. >> the question is why is no one going to new york? >> in two years today and about ten hours, the olympic ceremony will be under way in this very spot. >> ever since i saw goldfinger, i've wanted one of these, an astin martin db-5. sean connery, the girls, the gadgets. wean you're here in sunny cannes with the blue mediterranean behind you, the financial crisis seems a million miles away. >> it's important to be in touch with your inner chuck. >> bring it on. >> from "worldwide exchange," good-bye. >> i've got to say, i have been some nice places over the last 20 years. rio was right up there as was monaco and everything else. >> what's your secret? you haven't changed. >> you know, it's moisturize, cleanse.
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you know the routine. you know the routine. i don't know how much longer we have left on the program. it's been -- i'll just say this. it's been quite a ride over 19 1/2 years in the same building i don't quite know how i've managed to stay so long here. it's mainly because i've worked with an amazing bunch of people, julia, in that time from producers to managers and to put a television show together, the one thing i love about this business, it is a credibly flat business, whether you're the person cutting tape, the director pushing buttons or the vision mixer, everybody has a role to play. i'm going to miss the business. i'm going to do something incredibly exciting. i'm going to launch my own business which i'll tell people more about. i've decided that after 20 years sitting here, i'm going to sit there and talk to other people. >> how long before we get you back? >> it won't be long. thank you very much for that. thank you to everybody that has been with me over the last 19 years. for the very last time, i'm going to wish you a profitable
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day. good-bye for now. ,000 parts, ♪ 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes. our passion to make it real. ♪
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good morning and welcome to "squawk box." it is jobs friday. we have the countdown to that big report. will the may payroll number top 200,000? especially after adp did not. bank of america could pay more than 12 billion today's settle several mortgage investigations. and walmart gets set to hold its annual shareholders meeting with many issues still hanging over the retail king. it's friday, june 6th, 2014. that is the 70th anniversary of d-day. and "squawk box" begins right now.
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good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. the market focus turns to job creation today. the labor department will release the may employment report. that's coming up at 8:30 a.m. eastern today. in the meantime, let's take a look at some of the systems. economists are expecting nonfarm payroll to rise by 200,000. that comes after april's surprising 288,000 jump. the adp report had a less than 200,000 number. that raises some concerns about today's report. as for the unemployment rate, that is expected to tick up slightly to 6.4%. average hourly wages are expected to rise by 0.2%. you'll see right now, the futures are indicated higher right now. the dow futures up by 25 points, s&p 500 futures up by 1.5 points, the nasdaq up by just over 4. the ten-year note and the bond market i

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