Transcripts For CNBC Worldwide Exchange 20140619

For russia for the continues violence in ukraine. But russias most powerful man tells cnbc he will continue to collaborate with the u. S. Despite sanctions. We will continue to work to demonstrate our efficiency to be both beneficial to russian and American Companies. And from the pitch to the palace, prince phillipe ready to take the throne as spains new king after the 20 defeat against chile. You are look at live pictures from spain where prince phillipe is about to enjoy his coronation as the new king of spain. So a happy day for spain, but a sad day in many other respects. They were crushed out of the world cup. Remember, they were champions when they lifted the cup the last time around. Very different circumstances this time around. I guess its up to him to pick up the pieces after that crushing defeat yesterday. Did you watch it . I did not. I watched the australian game. Aus trail is out now, right . They are, fortunate. And the dutch are one of the favorites. Lets get back to the markets and talk about the fed. The markets in asia and europe are in the green. Chair woman janet yellen said the economy is rebounding and Interest Rates would stay low at least through 2014. She also down played recent strong inflation readings. Recent evidence we have seen abstracting from the noise suggests that we are moving back gradually over time to our 2 objective and i see things roughly in line where with we expected inflation to be. I think if you look at the sep projections that were submitted this time, you see very little change in inflation projections of the committee. She doesnt think stock market valuations are outside of investors norms. Carolin, how are the markets roughly one hour into the trading session, were up 0. 7 . The u. S. Saw another record high for the s p 500. Were taking the queues from those Global Markets as we are comfortably higher. Still roughly 00 points away from that record high we saw. Keep in mind, we get retail sales later today. And the cac 40 is up by 0. 8 . So fairley good gains that were seeing across the european markets. Lets have a look at some of the top spots. Rollsroyce outperforming today up by 5. 7 after the company lost a 11 billion pound share buyback. The enginemaker says as of now, no material acquisitions are planned, but the company confirmed it was on track to meet its guidance for this year. Meanwhile, man group is flying high on the london stock exchange, up by 5 . The. Company acquired numera holdings for 219 million. The acquisition helped with the u. S. And computer driven markets. Moving on to the bond market, were seeing bond Prices Higher and yields ticking lower on the back of dovish fed statements. Tenyear bund yields are at 21. 34 . On the back of the boe statement yesterday, gilt below that 2. 7 level. Here is what the forex markets are doing. It is all about dollar weakness, close to twoweek lows in terms of the dollar index. Lets have a look at these currency crosses, then. Euro dollar, slightly higher by 0. 2 . Dollar seeing some slight weakness as we discussed against the japanese yen. To some extent, this is giving a lift to some of the higher yielding currencies. Keep an eye on cable. Stuck above that 1. 70 rate. We get uk retail sales in about 25 minutes. Sri, how are the asian markets looking . There are some weak spots which i will tell but. Investors in asia liking what they heard from the fed. Janet yellens policy stance. But here is the problem spot. The shanghai composite is the loss leader, down by 1. 6 . Remember that we have beenni seeing more new shares, more issued come to the market. Those valuations are quite low. So thats driving down the valuations of some of their peers on the mainboard. And that explains why the shanghai market in Greater China is underperforming today. Elsewhere, though, the nikkei 225 is the outperformer, up by almost 250 points at the settlement. A 4 1 2 month high, highest low since late january, acting by foreign investors. Elsewhere, the high yielding currencies like the aussie dollar, the kiwi dollar are performing well and the aussie market had a strong session today. Russias most powerful businessman has been called the countrys second most important person. Hes the ceo of rossnet. The russian government holds a majority stake in roznet and this leads to misconceptions. Id like to point out sometimes we are not perceived as independent and our shares are traded on the london stock exchange. And we are meeting all the requirements of International Regulator regulators. Our shareholders include the Largest International companies in sum. For example, bp has a large interest in our company. It holds about 19. 75 of our shares. And thir not just our partners, they are our shareholders. We make sure our operations meet all norm and requirements that apply to International Public companies. In addition, we also work with them on joint projects and we are working as partners with almost all world oil such as exxon mobil, bp, and a lot of others. And we really appreciate our cocooperation with our western colleagues and western partners from the companies that we have just mentioned. The cooperation with these companies allows us to do assets. It may not be widely known, but as part of this cooperation, we get access to the field and the gulf of mexico and the usa, canada, alaska. And as a result, we exchange technology. We swap assets and in general, it stabilizes the situation in the entire industry. And we are also a large importer of the equipment. This is a very important area for our cooperation. For example, with General Electric. We appreciate this work and we will make sure we will do our best to complete this work without any discorruptions. You have shares on the london stock exchange. But you also have a major stakeholder, you have the russian government the best part of 70 . Does it matter to you if there is an increase in the state Privatization Program and talked about stakes, possibly just under 20 , actually going through or not . Does it matter to you if the russian government has 70 or 50 and whether you have the current public listing on your stock or you have a greater publicly traded and out of stock . I think that it would be in the best interests of the country in terms of its economic and financial situation to increase the listing of its shares on this stock exchange. It would be good because it would increase the companys capitalization. In terms of the shareholderss activity, the government holds 69 or 50 plus one share. I also think that if the government maintains the controlling package of shares, it would be in the best interests of the company and of the stakes. And also of the minority shareholde shareholders. Because as the government has the controlling package, it provides additional privileges to our company in terms of accessing offshore licenses and this is an essential element in maintaining the companys capitalization and i think minority shareholders understand that. Under what time scale would you like to see the major shareholder, the russian government, lessen its stake to 50 plus one share . Would you like to see that in a very short time scale or do you appreciate having a bit longer . Who are you asking this question to . As far as the company is concerned, it doesnt matter to us. Now, u. S. Vice President Joe Biden says its allies are working on a fresh round of sanctions related to the violence in eastern ukraine. Washington is accusing moscow of supplying pro russian separatists with weapons and it warns that it will apply costs if this continues. Theres a close relationship with the kremlin, the height of the ukraine crisis. Take a look about what he had to say about those actions. I cannot understand the purpose of the sanctions. Myself personally, i cannot understand what purpose they are pursuing. I am not involved in the political decisions. I am not an important person or element that matters from the standpoint of obtaining advantages. Currently i cannot understand any justification for taking these sanctions. Lets get more now with chris weeper, senior partner of macro advisory and Jessie Sherman joins is, as well. Chris, let me start with you. The broader strategy of washington are targeting putins inner circle. Is that hitting him where it hurts or is it simply emboldening them . Its not hitting nos cow directly, but what it has done is has created a sense of unease amongst companies and banks that deal with russia. So the damage thats being done in terms of investment flows and the reduction in some trade deals is more selfsanctioning which companies have taken on a voluntary basis. So in the sense that the sanctions with other individuals has had limited direct impact, it has achieved, i guess, the broader objective of making foreign business and banks more wary about transacting with russia. While that so far has dodged international is it just a matter ooh time before theyre targeted, hit the western allies, up the ante and impose phase three sanctions . I dont see any evidence that were getting anywhere near further round of sanctions. The escalation in the last couple of days, if anything, the risk of further sanctions is now less than we were looking at perhaps in early may. But even as we were to get further sanctions, then i dont think the Big Companies took matters like rosnet. Has a strong relationship with exxon mobil, with bp, etcetera. I think theyre very much the end of the line. Close to fivemonth highs on this, were back into territory. These easing of tensions in the ukraine, weve seen a lot of, i think, sentiment and rhetoric out of the russian government to ease the tension. And what that has done is, you know, eased investor sentiment. Weve always said that in emerging markets when tensions flare, people usually run for the door. Weve seen that in turkey, weve seen that in other markets this year. I remember giving you a hard time about your call on low valuations in russia a couple months ago. Do you think that valuations are still low . Is it still a good idea to get back into the russian markets . Well, i appreciate you saying that. Russia was trading at 50 discount in emerging markets. Now its at about a 54 discount. Which on the face of it, it can tighten further. In the last five years, i think it was about a 40 , 43 discount was the title. That being said, over the last five years, the medium has been 54. Weve got some braking news from norway. They kept the key policy rate on hold. It will be held lower for longer than previously projected. Projected earlier in the period ahead. This is the warning coming from norwegian bank. Basically the problem weve got in norway is very, very high debt, very locum assumer spending compared to what we have had the past couple of years. Thats because Oil Investment is somewhat lower and this is something that the norges bank has been responding to. Once again, key policy rate should be an interval of 1 to 2 and the period of next report on november 18th. It warns about weakening growth. Sri. And carolin, this is a story just in. Facebooks website has crashed. Youre looking at a shot of what happens when you dry and head to facebook. Com. It simply comes up with a message saying, sorry, something went wrong. We understand facebook is preparing a statement so you may have to wait a little longer if you want to friend somewhere. Militants have attempted to destroy the Iraqi Government. In addition, iraqi ministers are continuing to press the u. S. The u. S. Is saying the Prime Minister should resign. Whats your reaction to that . Well, we only have a clear response from the Iraqi Government. Theyre likely to take the latest comments in stride, really. But its quite shocking about how direct that criticism came to the United States. The degree to which the government of iraq has failed its people and made it clear that the assistance for air power to iraq did come through, but that is not as easy as it seems. The u. S. Was still lacking intelligence, would need to gather more intelligence before it could pursue that option. This as u. S. President barack obama continues to juggle its decisions about any intervention on capitol hill. Of course, we are following developments on the ground. The baiji refinery continues to be at the center of a lot of these activities. The baiji refinery is key in iraqs oil refining capacity. Weve got comments from the Turkish Energy minister to the effect that they expected demand from iraq for Refined Products to increase on the back of outage from that refinery. And i also spoke to tess carpenter of the Cato Schneider who told me earlier in the day that an apartheid division in iraq is now the most likely scenario. Thank you so much for that. Mean wheel, exxon mobil and bp have started evacuating staff from iraq. Chris is still with us. What do you make of this . It seems now the most likely outcome is neither a breakup of the country nor is a reconciliation of the parties. What do you think will happen . Yeah. I think first of all we have moved into a more dangerous phase, if you like, in terms of inabilities in the middle east. Were now talking about sunni events against shia. Rather than, say, tribal groups or different fangzs within one countrys border. This has become a broader issue. What it does mean is that, for sure, this is an issue thats not going to get resolved anytime soon. We are likely to enter a projected period where there will be violence and, therefore, disruption of the oil industry probably across most of iraq. So i think that at least for the next six months, were looking at the price of oil staying high in a new range, perhaps around 15 brent with the possibility of a spike to 120 rather than, say, going back the other way. Perhaps after 2015 depending on what happens in libya, how quickly iranian sanctions will be removed, clearly it will start to get removed quite quickly. But i think that, you know, we are moving into a more dangerous phase and we simply dont know whats going to happen when we now see this broader division and for sure, the oil market looks like its going to have a higher risk premium. Thank you so much for that, chris. Chris weafer, senior partner at macro advisory. Coming up on Worldwide Exchange, the new frontier. America is expected africa, pardon me, is expected to see the largest increase in the legal drippinging age population over the next four years. Thats after the break. Chocolate is very individual. White chocolate lovers dont like dark chocolate. Milk chocolate lovers dont necessarily like dark or white. Before we couldnt really allow the consumer to customize their preferred chocolate. We needed the scalable Cloud Solution allowing them to see all 800 products and select what they are looking for. Now there is endless opportunity to indulge. Welcome back to Worldwide Exchange. In madrid, prince phillipe has become keng. Spain will have a monarch. Ive been told that he is heading to parliament. Even though they have crashed out of the world cup. Did you know you and i, we could still become kings and queens. Fought you and i together, but separately, we could be king and queen. Its possible. Treat our subjects fairley, it would be nice. Shall we move on, sri . I believe so, yes. The Worlds Largest traditional viewers have been investing in europe and latin america for a number of years. However, a new report has labeled africa as the new frontier for the beer market. The Largest Companies will be raising a glass to the continent due to changing demographics. Good morning to you. How overjoyed are you by the fact that the dutch beat the australians yesterday . What does it mean for your business . People enjoy good beer. I think we did a great show last night. When i left the airport, it was 10. I turned around, it was 111. I stepped on to the plane at 11. Eventually, things turned out all right. You have to be positive. Consumers in avenue cab they have been contrained by beer and whats crucial about pricing in that market . Is it all going to be low price offerings . Definitely not. I think what it will be is a whole price offering. Its very important that you pick up what we call in our business magic price points. You basically offer beer at a price point people can. Africans love quality. You have to offer quality but at an affordable price. And theres significant, significant risks going into the africanamerican. Youve got terrorism, youve got the threat of nationalization, the threat of ex appropriation. We built our first brewery in 1923. From that humble jennings today we have 57 plants, soft drink plants, so we have a local investors in africa. We do have an import business coming out of europe and our operation in south africa. But before anything, we have a local separation. So we are on the ground. Talk to us about the challenges because the push for higher wages is a recurring theme across markets. If i see that in asia, africa is no exception. How do you reconcile this demand for higher wages with ensheering that you get a productivity improvement. Our investments in africa are not different than any other place in the world. We invest every year on half a billion of euro in our operations and its only state of the art. Some of our breweries are the most modern in the world. Pages go with productivity. As long as you get this up every year, you can keep your prices at a less thats affordable. Back to asia, what has been the lay of the land in africa and how big are infrastructure constraints when it comes to supply Chain Management for your companies . A problem that you learn to cope with. Infrastructure is a challenge, for sure. But if you cope with it and you cope with it in a predictive way, theres a lot of protection. We have a returnable bottle system most of the time which means the bottles need to be produced and brought to the brewery. You can make a lot of money. In nigeria, we have about 12 breweries. So it shows that you learn to cope with it. But every now and then, its an expensive way to pray with it. No free samples today . No, not today. Because we are working and we have our own particular consumptions when we are working. England plays tonight. This is true. They have to win. Now to the rising story on facebook. In the last few minutes, the facebook website came back up after it crashed earlier. The outage appeared to have been global affecting home page, mobile and messaging. And weve got uk may retail sales out. They fall in may for the fist time sips the month of january. Though they do fall as expected, they were forecast to fall by 0. 7 and they are down by 0. 35 . Again, i think this is more or less in line what when we had expected year on year. We saw an increase of 1. 3 because of the easter holiday, of course. Lets have a look at how australia is reacting to all of this. It was above that crucial 1. 70 level just before the numbers cam out. Theyre pretty much unchanged on the back of the data. We got reaction to those numbers next when we talk to more guests. Well be back in two. Geicos been helping people save money for over 75 years. Theyve really stood the test of time. Much like these majestic rocky mountains. Which must be named after the. That would be rocky the flying squirrel, mr. Gecko sir. Obviously ahh come on bullwinkle, theyre named after. First president george rockington that doesnt even make any sense. Mr. Uhh. Winkle. Geico. Fifteen minutes could save you fifteen percent or more on car insurance. But were not in the business of spokespenaming names. Kswagen passat is heads above the competition, the fact is, it comes standard with an engine thats been called the benchmark of its class. Really, guys, i thought. It also has more rear legroom than other midsize sedans. And the Volkswagen Passat has a lower starting price than. Much better. Vo hurry in and get 0 apr for 60 months on 2014 passat gasoline models plus a 1000 contract bonus. A dovish janet yellen gives markets a boost. Giving no new indications of possible rate hikes despite rising inflation. And General Electric expects to sweeten al stroms energy d bid. Joe biden fires at russia. But russias second most powerful man tells krn he will continue to collaborate with the u. S. Despite sanctions. And we will continue to demonstrate our efficiency that would be both beneficial to both russian and American Companies. And from the pitch to the pal yas, print phillipe is ready to delay to the throne a day after the Company Loses the world cup crown in a 20 defeat against chile. Prince phillipe has arrived at the parliament where the constitution will be changed. After that, king phillipe and his family will be driven around madrid to greet the spanish people and will end at the royal palace. Lets get back to some uk data points. Uk retail sales falling in may for the First Time Since january. That was in line with expectations. We saw a dip by around 0. 5 on the month in the month of may. And this is after a strong month of april where we saw retail sales driving by 1. 3 on the month because of the strong easter. Lets talk more about the uk with ceo you. What do you make of the retail sales data . These numbers include a little bit of payback in there. The year on year number i think is the most revealing, almost 4 coming through there. That includes the comments you had from the governor of the bank of england last week. Things are beginning to take more momentum. The domestic uk economy, we think, has now got a base switch it request do it on. So for the hawks at the Monetary Committee at the boe . I saw this morning that all 12 members of the mpc have been in agreement for 12 months. Theres been complete unity in their view. You saw governor carneys comments. With the beginning markets still beginning to discount the firmness underlying moments in the headlines repo rates for next year. Theres a lot of optimism about the uk recovery right now. But im slightly puzzled by that. Weve got a strengthening currency back above 11. 70 this morning. We have the risk of a scotland independence vote and an earlier than expect ld rate hike. Where does that leave the recovery in the uk . The possible rate hike is not helping you. We sorry to interrupt here, but you think it was the market behind the moves, not the boe . He think the boe has been key, they want to make sure the recovery is in place and can she sustained. I think markets are sometimes they are very sole tile in a sense even when you look at the economy. This recovery has been start background a year ago. Its stronger than expected as driven by domestic consumption. Now we see investment picking up. I think we are waitling to, what, what we used to called the philosophy. They dont want to take any risk with this recovery. They have there have been quite communicating nr prospects and now were in a situation where despite t some news that rate hikes have come earlier than expected, the market took it as a dovish comment. This much they were 14 years since the last alltime high. The uk, its an interesting ka none syndrome. The uk economy has been building through six to 12 months now. We are beginning to see signs this month. Were looking at the difference in tenyear rates. Government bond to seven against the french. Thats not a reflection on credit, thats a reflection on ford. And i think the ftse is probably the one that can really get the gig from here. Corporate earnings continue to move along at the 7 , 8 , 9 Earnings Growth that we expect to see in 2014 and 2015 across the ftse. Risk appetite will do the rest. Thank you so much for your time today. Unfortunately were going to have to leave it here. Tim harris capital. Lets check in on the fed while in the european markets the major indices are up and running right now. There you have them. Theyre following strongly another record lead from the u. S. Markets and asia, as well. The ftse 100 up by 3. 7. 5 and similar gain for the xetra dax, cac 40 and the ftse mib is up by 1 making it the top performer right now. And lets have a look at the bond markets. Were seeing prices moving higher, but at the same time yields moving down to the down side. Weve got the tenyear treasury yields, 2. 9 . Just below that 2. 6 level on the dovish comments on the back of janet yellen. Tenyear german yield at 1. 35 and tenyear gilt yields not reacting too much to the retail sales bids. Those were in line with executions and the yield at 2. 69 . And the perception that we hear a dovish janet yellen is putting it on the back, as well. 101. 74. Euro still looking at fairley beefy at 1. 3635. And sterling, after those retail sales numbers, join the list in breaking past 1. 70 once again. Dollar swiss franc. 8926. And the aussie dollar, a lot of high yield in currencies after the dovish fed. Back to the uk, David Cameron is determined to go down fighting in his campaign to stop the former Prime Minister from becoming the new uk president. Yesterday he told lawmakers, quote, if you want reform in europe, youve got to stand up for it. Defeat for cameron looking now unne unnestble, the Prime Minister john maurnlg has said the eu would make concessions to the uk if yeunker is reported. Speaking in berlin, james said the ecb has positively tackled the debt crisis, but warned quantity tiefb easing might not work in europe as it has in the u. S. And the u. S. Will urge the European Central bank to step up its efforts to stop deflation. One measure being proposed is the purchase of government bonds. A recommendation in line with previous calls for more stimulative policies, the suggestion was made in a twopage technical document. Should the imf be making recommendations like that . The ecb is independent, after all. It does not mean the ecb should not listen and discount other bodies. I think the timing is bad. The ecb prevents a very comprehensive package. Via the prospect for a program with abs, its a very, very big package which could exchange completely what can help with stabilize iing expectations. The european economy is very different from the u. S. Whats important is to boost cleansing and what the ecb two weeks ago is aimed at boosting earnings. It should help. I dont think we have time to answer my question. Excuse me. Thank you so much. Well put that question to you another day, another time when we get close eer to those european stress test results. Amazon has entered the smartphone arena with the launch of the new firephone. The model boasts a 3d screen, unlimited Cloud Storage for photoes and a 12month amazon prime subscription. But more importantly, the phone is built to recognize items including songs, groceries and books and allows you to buy them from amazon. Can the fire phone be a success for amazon . Do you think its a game changer or do you think this is just a glorified amazon shopping device . If you want to join the conversation here on Worldwide Exchange, do get in touch with us. Or direct to us at carolin cnbc. cnbcwex. Still to come on the show, president obama president obama, harry potter and even the pope have all piped up on issues. And you are looking at live pictures in madrid. Prince phillipe has arrived with his wife and daughters where the st constitutional is being changed. Obviously, the big topic overnight is that debacle in the football world cup because spain lost again. So theyre out of the world cup now. But at least theyve got a new king. Were going to get more on that in just a second. Now, the netherlandss face australia yesterday evening. The dutch took the lead after 20 minutes thanks to robben. And australia hit back just 13 seconds after the restart with tim kale scoring arguably the goal of the tournament so far. And Robin Van Percy put the touch back on just seven minutes later. The winning goal game 68 minutes scoring a 25yard effort. Its enough to give them a 32 win. World champion spain took on chile. Spains side never seemed to get into the groove. South americans doubled their lead just before halftime. An error for spanish goalkeeper cass tia less an easy finish for midfielder charles van weip. Chile held on to the victory consigning spain to an early world cup exit in the process. And to think they were the victors the last time around. The fall from grace, carolin. What a debacle. There is a big game in sao paolo as uruguay and england lock horns. I just heard i mispronounced that name. That happens. Youve got to take it in stride. I will do that. Lets hope that it works out better for the english tonight. General electric is expected to submit appear approved offer for alstom ahead of mondays deadline. Stephane, how much sweeter is the offer going to be . Its unlikely to more cash. Its not willing to endure a cash bidding war with siemens. However, the ceo of General Electric is going to offer to sell the alstom train business to reinforce the deal. Thats one of the improvements that we are expecting today from the ceo of ge. Used in Nuclear Power plants, General Electric wants to convince the french government ahead of the blind which is set for june 23rd, next monday. The board will make a choice between General Electric and siemens mitsubishi. Officially, it will make the final choice although the french government as has the possibility to block the deal because of a strategy to issue. Thats the reason why jeff emailed in trouble to paris is going to admit at lunchtime and later in the day will admit the trade unions of the company. Over to you. All right. The uk has warned about a Currency Union with scotland. Will be dangerous for both countries in the even of independence. Speaking at a Scottish Affairs select committee, he did say, quote, it wouldnt happen, shouldnt happen and wont happen if there is a labor government. Meanwhile, former Prime Minister Gordon Browns new book is to be published today, its a highly personal account of brown growing up in scotland in which he explains scotland should shape britain rather than leave it. And in recent weeks, there has been concerned herbs about london leaving england. He was asked if the Scottish Community needs to be more vocal about their wishes. You just a campaign or campaign as the xe success at the end of the campaign. We think people want facts. Thats why the work opz government is attempting to give them what they want. We are now sending a flyer to every home in the area to explain in much greater details, as much detail as they want. Andy gays. Cnbc is a business in financial channel. People are concerned about that 750 billion under management in scotland that could start migrating to other financial centers. Do you think we need to see the likes of aberdeen and other Fund Management businesses being much more vocal than they currently have been . Youve seen interventions like Standard Life explaining clearly the implications, as we see it, the way independence would impact on your business. Wipt to see more than that because i think its right. If the people of scotland, you have to get developments. People know you have an interest in business, the bottom line on the balance sheet. Thats why they trust businesses. Thats why i want to hear more of them coming out. They dont need to tell people how to vote. What they do need to do is be quite clear about what the implications would be for their business because that has implications for all of us. Im usually based in asia and not too long ago, alex, the first minutester of the British Parliament was on a trade trip. It looked as though he was trying to pave the way for more trade ties between scotland and asia. Top of the agenda . Three guesses. Whiskey. Salmon and golf. So i hear. But scotland isnt the only country that we should be worried about. Catalonia. Exactly. Lets have a little futures. The dow jones was seeing modestly lower while the nasdaq is seep just a touch higher. This is after the boe didnt want. Come to on the show, we leave you with live pictures of madrid where the coronation is under way. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Welcome to wgs Worldwide Exchange. Im carolin roth. And im sri jegarajah. General electric is expected to sweeten its bid by alstoms energy jeff immelt makes his third trip to paris to meet with the government. Joe biden fires a warning shot to moscow saying the u. S. May impose further sanctions to russia. But russias second most powerful men tells cnbc he will continue to collaborate with the u. S. Despite sanctions. We will continue working to demonstrate our efficiency in the joint work. It will be beneficial to both russian and American Companies. And from the pitch to the palace, for instance phillipe becomes king just a day after their country loses the world cup crown in a 20 defeat against chile. Youre watching Worldwide Exchange, bringing you Business News from around the globe. Good morning, everyone. Wake up sleepy heads if youre just joining in. Thank you so much for coming to watch the show. The dow is seen just slightly lower. That is if you take fair value into account. The s p, the nasdaq taking those fair values into account. Were seen modestly higher. Were looking at a fairley patchy start to the trading session after another record high for the s p 500. Yesterday it was up by 0. 8 . The dow up by 0. 6 . Essentially, the markets got what they were asking for, a less hawkish than expected fed slightly more dovish than expected. But, again, positioning was very much on the hawkish side. Lets have a look at european markets, too. And we are tracking u. S. And asian markets higher. The ftse 100 is up by 0. 7 . The xetra dax up by a similar percentage amount and elsewhere were seeing gains across the board, the cac 40 higher by 0. 7 . Were not too far away from the 6 1 2 year highs. Sri, how are we looking in asia . Quite mixed. We are seeing quite a lot of resilience, especially on the nikkei 225 tokyo equities closed now. And a gain of almost 250 points and from this session for the kospi, the s p asx 200, sentiment strong there, as well. So all these markets benefiting from what they heard from the fed and janet yellen overnight. This dovish policy stance. More accommodations. Now, the other here is that we are seeing some diversions. The shanghai composite is giving us that. A lot is needed today. Quite stark if you contrast it with what is happening on the tokyo markets. Thats because new shares, new listings in the ipos, theyre coming to the market. No valuations, breeding some liquidity from the existing shares on the main board and thats the main reason why the shanghai composite is on the defensive. All right. Lets take a look at the bond markets. This is what the tenyear treasury is yielding right now. A shade below 2. 6 . The yield on the tenyear bond app, 1. 347 . Not a huge deal of reaction in the tenyear gilt after the retail sales numbers. Lets flip the boards and show you the activity in the currency markets. Dollar on the defensive after the fed. 1011. 75 against the japanese yen. This is interesting because after the retail sales came out, sterling made a move once again over 1. 70. Thats where we stand right now with cable. Aussie dollar has had a good day today as has the kiwi dollar. 0. 9424 for the aussie. So the s p 500 hit another record high as janet yellen says stocks arent overvalued. But the fed chair says she is worried about complacency leading to excessive risk taking. Steve liesman has more. Was it an upgrade or was it a downgrade . For the Federal Reserve today and the u. S. Economy was actually both. The fed upgraded the u. S. Economy in its statement saying it was rebounding from the severe Winter Weather swoon. But at the same time, the fed had to downgrade its forecast for the full year. Still, fed chair janet yellen said in her press conference she saw gathering strength in the u. S. Economy. Economic activity is rebounding in the Current Quarter and will continue to expand at a moderate pace thereafter. Overall, the committee continues to see sufficient underlying strength in the economy to support ongoing improvement in the labor markets. At the same time, yellen signaled she was not worried about recent readings of higher inflation and indicated it would not be an immediate factor for the fed to hike Interest Rates. The recent evidence we have seen abstracting from the noise suggests that we are moving back gradually over time towards our 2 objective and i see things roughly in line with where we expected inflation to be. I think if you look at the sep projections that were submitted this time, you see very little change in inflation projections of the committee. Yellen also didnt express much concern with the stock market, but she did repeat the feds concerns with shortterm financing. The fed has had continues concerned that money markets are in a source of financial instability, a lingering concern from the financial crisis. Ive been support of the governor and others have been supportive of taking some action to diminish the incentives for heavy reliance on shortterm funding. We still see that as one of the risks to the Financial System that wasnt really adrift in a Risk Base Capital requirements that we put out. The market liked what it heard. A little bit better growth. The fed graurlly reducing the amount of stimulus in the economy through tapering its bond purchases and still on track to raise Interest Rates with not a lot of concern with financial stability. And then, when they raise rates, theyll raid them only modestly. Back to you. Lets talk more about the fed and what it means for the markets and swrour investments with hank smith, chief Investment Officer at haverford investments. Hank, good morning to you. Another goldie locks scenario. Thank you so much, janet yellen. Do you think stocks and bonds can continue to rally together . Well, yes. Look, i do. The youve got youre absolutely right. Youve got a goldie locks economy. Its not too hot, its not too cold. Theres not enough growth to put pressure on inflation to worry about Interest Rates. And yet the growth is broad enough that the risk of a recession is very remote here. So stocks can perform well in this environment, Earnings Growth is consistent but modest. Valuations are reasonable. And given the low level of inflation and low level of Interest Rates, i would say theyre attractive. And dovish messaging is strong enough, hapg, to get the s p to 2000, possibly beyond . Yes, i do. And i think the course this year is ae different than the course last year, which was straight up with very little volatility. This year, although weve made 20 alltime highs in the s p 500, counting yesterday, were still looking at fairley modest returns. And the difference this year is the pullbacks have been very, very brief and shallow and that is reflective of all the cash thats still on the sidelines but wants to get into this market because most investors have missed the bull market and now realize this and want to get in. How fast is the tail risk now coming from iraq . Of course, the transmission mechanism to the stock market is going to be the price of oil. Is it going to be the factor thats going to put a lid on any gains . Well, it certainly might be a factor that causes a pullback from here. We havent had a correction now in close to three years. Thats in a very long time not to have a correction of 10 to 19 to define that. But look, geopolitical risk and exogenous geopolitical risk, they do not end bull markets. They do not cause bear markets. And its really remarkable at how well this market has held up. We only had three down days last week on the iraqi news plus you have russia out there, as well, in the ukraine. But it could be the cause of a more severe pullback. I would still say its going to be short lived. That price correction for the past three years. Hank smith, chief Investment Officer at haverford investments. Lets have a look at todays agenda in the u. S. Weekly jobless claims out at 8 30 eastern, forecast to drop by 3,000 to a total of 314,000. At 10 00 a. M. , we get the june philly fed survey and leading indicators. And kroger examine blackberry report results before the opening bell. After the close, we hear from oracle, tibco software, and gunmaker smith wesson. And lets take a look at todays other top stories. Facebook is back online after experiencing a short global out age. But, in fact, both on the webb page and mobile apps. It simply came up with a message saying sorry, something went wrong. We understand facebook is preparing a followup statement. Amazon is entering the smartphone arena with the launch of the new fire phone. Can the ecommerce giant pose a challenge to samsung and apple . Amazon delivering its fire phone. The Ceo Jeff Bezos unveiling the phone at an event in seattle, washington. In terms of the phone, 4. 7 inch display. Talk a lot about the cameras, super fast lens. Image stabilization to counter any natural tremors in your hands. He compared the pictures in his phone to that of his new rivals in this space, samsung and apple. Speaking of amazon, executives at this event, they say theyve been working on this project for years. They waited until they felt they had technology that set them apart from their rivals. They talked about technology they call dynamic perspective. Basically, there are four cameras in the phone that track your face. It creates a sense of more depth when you look at the phone. You think gamers and applications for that technology. Bezos took the stage, played a video game to give people an idea of the dynamic perspective. Something in this phone called fire fly. Fire fly will detect and identify 100 million different objects. So these could be physical objects that you could then buy on amazon. Thats why some folks are now saying this isnt just a phone, its a new shopping machine. In terms of price, at t will be the exclusive carrier. You can preorder the phone right away. It will be 199 for a twoyear contract. It ships on july 25th. Josh lipton, cnbc, seattle, washington. So can the fire phone be a success for amazon . Do you think its a game changer and are you attempted to buy or do you think this is just a glorified amazon shopping device . Join the conversation here on Worldwide Exchange. Get in touch with us by email, worldwide cnbc. Com, by twitter cnbcwex or directly to us. The price is very high, isnt it . Same price as an iphone essentially, isnt it yeah, but i think its 3d. Do you really need that . Yeah, as long as it doesnt you want to move it. True. Well be back with plenty more on Worldwide Exchange after the show break. Dont go away. Great rates for great rides. Geico motorcycle, see how much you could save. Welcome back. These are your headlines. Janet yellen forecasts a slow rise in Interest Rates in the u. S. The pressure remains on barack obama to order air strikes in iraq and the fresh bid expected from ge to Alstom Energy business. And youre looking at live pictures of madrid where prince if a lean has become king. The constitution is being changed and after that king phillipe and his family will be driven around the streets of madrid to greet the spanish people, ending at the royal palace. It should be a cheerful day for spain today, but, of course, that big loss yesterday at the world cup and theyre out. The raining champions. Isis militants have attempted to destroy the Iraqi Government by hurting the infrastructure. In addition, iraqi ministers are continuing to press the u. S. To target isis with air strikes. Lets get the latest with yusef who is standing by in dubai. First offer, were getting conflicting reports about the state of affairs in baiji. Where the largest refinery in iraq is located. We know the refinery is off line and is likely to affect fuel supplies in the country. Weve heard from the turkish Prime Minister just a few moments ago that he is concerned about the possibility of high casualties in the event of any air strikes. That request for air support from the United States was confirmed through the United States by general martin dempsey. He did say that it is in the interest of the United States to counter isis. But he did make it clear that the u. S. Lacked the intelligence to pursue the military strikes at the moment. And then, of course, you have the ongoing juggling between congress and the u. S. President in terms of how to go about that. He also spoke to the managing director of the swiss based potromacum. He said the most likely nascenao is youll see an increase in protection from other areas. And yusef, on that, the commodity structure made a point in a note saying that the iraqi production targets for this year and more longer term 2016 are now looking unreachable because of the conflicts and that rays the pressure on saudi to lift output to stabilize the market. Do you think thats a realistic scenario . Well, there is to doubt that the longer trm view is clouded in iraq. It makes it very difficult to commit to any capital and equipment under these circumstances. Obviously, iraqs longer Term Economic growth is also in question. This is an yes that grew 5. 9 , is expected to grow 5. 9 in 2014. The fastest growth of any country in this part of the world. Now, saudi arabia with 12. 5 Million Barrels per day, that is probably your theoretical production capacity. Has the market ever test thad kind of level . It remains question that they can actually reach that. Probably lower than that is what most analysts tell me and that is likely to keep the market tight. But, again, we are keeping an eye on post the production levels from iran and some on her markets where you could see an increase that can offset that somewhat. Thank you so much for that, yusef. Still to come later on the show, will blackberrys new partnership with amazon prove fruitful . We talk strategy ahead of its First Quarter results later today. Welcome back to the show. Lets have a look at u. S. Futures. Major indices expected to open modestly higher. The s p 500 taking fair value into account, up by almost 2 points. Yesterday hit another record high on the back of the more dovish than expected statement. The vix following back to the lowest levels since 2007. The fcc and Justice Department have reportedly subpoenaed the house ways and Means Committee and a top congressional aide. Prosecutors are gathering evidence into whether congressional staffers tipped wall street staffers to a change in Health Care Policy lat year. Stocks surged moments before the u. S. Government announced favorable for companies relate to go medicare payment. U. S. House republicans will vote today at 2 00 p. M. Eastern on who will replace eric cantor as majority leader. Cantor lost his primary election last week. Its widely specded that House Majority whip Kevin Mccarthy will get that position. The gop will hold a separate vote to fill its vacancies with three people vying for the number three post. American apparel moves to fire the founder and ceo. Charlie has been repeatedly targeted in Sexual Harassment lawsuits will be terminated for cause after a 30year contractual period. The company says the move could leave it in default. Talks with credit tors, charlie founded american apparels predecessor in 1989 and has been ceo since it went public in 2007. Mean while, General Electric is expected to submit an approved offer for alstom ahead of mondays deadline. Stephane is standing by in paris. If theyre not willing to offer more cash, what kind of concessions could we get . They could, for instance, propose to sell their rail signaling business. If youll remember, this is something that was requested by the economic minister. General electric also is likely to offer the french government its stake in the future of the bank. Ge is unlikely to raise the cash part of the offer. The u. S. Conglomerate is willing to pay 14. 2 billion euros for the power units of alstom. But earlier this week, a source close to ge said the company was unlikely to get into a cash bidding ward with siemens and mitsubishi. Monday the 23rd, this is the deadline set by General Electric. The ceo of alstom ironically said they could dream of a swap with the French Company alstom suggesting that it is very unlikely to give it to access the offer made by siemens and mitsubishi. We are expecting am symptom to approve the deal General Electric. Although they still need to convince the french government because it thats power, the french government has the power to block the deal. Stephane, thank you so much for that. Sri, this has only been going on for two months. It feels like years, decades. We were just talking about that, yes. Its politics as well as the price. Its more politics than anything. Now, still to come on the show, its a game of phones. Will consumers give amazons new smartphone an icy reception or will they be snapped up like wildfire . We take a look back. Rapid prototype a lot of ideas. O being able to pay as we go is crucial for a start up. Having to fork out a lot of money up front was risky. We can launch a feature really quick, and if the feature doesnt work, we havent lost anything, and we can have something up and running in days. And this would not be possible without the cloud. We are now supporting over 25 million users each month. [ male announcer ] its one of the most Amazing Things we build and it doesnt even fly. We build it in classrooms and exhibit halls, mentoring tomorrows innovators. We build it raising roofs, preserving habitats and serving americas veterans. Every day, thousands of boeing volunteers help make their communities the best they can be. Building Something Better for all of us. Welcome to Worldwide Exchange. Im carolin roth. And im sri jegarajah. The s p 500 hits a new record as the fed chair sticks to her guns giving no new indication of possible rate hikes, despite rising inflation. And ge is expected to sweeten its bid of Alstom Energy arm as Ceo Jeff Immelt makes his third trip to paris to meet with the government. Joe biden fires a warning shot to moscow saying the u. S. May impose further sanctions on russia for the continued violence in ukraine. But russias second most powerful man tells cnbc he will continue to collaborate with the u. S. Despite sanctions. We will continue to working to demonstrate our efficiency in the joint work that would be beneficial to both russian and American Companies. And from pitch to pal its, prince phillipe takes the throne and is crowned as spains new king a day afterspain loses their world cup crown in a 20 defeat to chile. Announcer youre watching Worldwide Exchange, bringing you Business News from around the globe. Good morning, everyone. If youre just waking up and just tuning in, thank you so much for joining us here on the show. Lets is have a look at how futures are faring against the market. The dow, nasdaq and s p taking fair value into account all just modestly higher. This is after we saw yellen in the rally against the trading session. Hitting another record high. And actually, we saw volumes picking up at the same time volatility the vix index back to levels that we last saw 2007. Lets have a look at european market. By and large, were higher. The ftse 100 higher by almost 0. 9 . The xetra dax seeing nice gains of 0. 8 and the cac 40 up almost by 1 . How do you make money in these market . Here is what some of the experts have been telling us throughout the morning. All right. Weve got some technical problems that we are trying to work our way through. In the meantime, lets take a look at whats been happening with amazon. They are entered the smartphone arena with a launch of the new fire phone, the ecommerce giant is looking to woo consumers with a 3d screen, unlimited Cloud Storage for photos and a free 12month amazon prime subscription. The firestone will start at 199. 99 with a twoyear contract and will hit the shelves beginning july the 25th. Joining us now, neal cohen, Vice President of sales and marketing. Thank you so much for joining us. Lets cut to the chase. Is this a threat to apple or not . Well, it depends on what you consider a threat. But if you look at is this going to capture a large am of Consumer Market share . Amazon has a lot of loyal customers through prime and all their services. And if you really look at it, this is a way to capture that loyalty across all four screens with their content and their shopping services. Whether or not it breaks out of the amazon universe remains to be seen. From a enterprise perspective, i dont look for it making much of a dent in the world of business. In a way, amazon is trying to pen pal prime and the services that it offers. Are they going to poach market from netflix . Well, i think you hit the nail right on the head there. Is this more of a competitive across the bow netflix and even cable providers where theyre saying, look, we want to earn you across all four screens, the phone, the laptop, the tablet and the tv set in your house. Yeah, i think that this is really dead aim on netflix and other similar content providers as well as a retail play. The pricing is something that im scratching my head about. Almost 200. Thats on par with what other smartphones are priced at. Can this work out . Well, a lot of people say if the innovation is there, it will bring the price. If its not, it wont. And a lot of people were surprised by the price because they thought amazon was going to go with this razor razor blade theory, lets offset the cost a little bit and get people on the services side. I guess they think the innovation is in there. You can see from jeff bezoss excitement yesterday as he presented, theyre all afire, pun intended. So well see how that goes. All right. Neal, youre going to be sticking around. In the meantime, weve got a question for the viewer. Can the fire phone be a success for amazon . Do you think its a game changer . Are you attempted to buy it or do you think its a glorified amazon shopping device . Jim responded to us and he tweets my consumerism is biting me over this one. Already wonder whether they ship this down under. In my opinion, its good stuff. If you want to join the conversation here on Worldwide Exchange, get in touch with us, email worldwide cnbc. Com, cnbcwex or directly to us. Blackberry is expected to report a decline of close to 90 , both the top and the bottom line in the First Quarter today for the opening bell, that is. The stock has declined 44 over the past year. A deal with amazon. The partnership will give the struggling smartphonemaker access to amazons app helping the blackberry store. Still with us, neal cohen. Is this a game changer, that deal with amazon . I dont know if its exactly the game changer. I think its good for both blackberry and amazon. Amazon doesnt have the depth of applications that, lets say, android and apple has. And apps are everything in that market. So thats going to help them a little bit with their success. For blackberry, you know, their apps have not caught on fire and from that perspective, you know, adviceage of over hundreds of thousands of phone lines that we have, the data in adviceage shows the app usage is way, way lower with a blackberry device, lets say, than an apple or an android device. An apple device has four times, almost five times data usage. This is a great way and part of their strategy to go out with services and things along that line versus hardware to help boost their top line sales. I have a couple of questions on blackberry, neal. Do they still have an advantage on the enterprise side . Number one. And number two, does john chen need to be a bit more ambitious . A bit more bolder in terms of trying to turn the company around . Well, the blackberry advantage on the enterprise side is really now through their enterprise serves and security and instant messaging. Theyve seriously lost their advantage on the hardware side. Again, data that we have from over hundreds of thousands of phone lines shows a massive migration from 2012 where we had 60 penetration and now its down to 20 where and thats almost all gained by apple, believe it or not, over android. So theyve had lost on the hardware side. But on the services side, they have tens of thousands of customers worldwide, a major government who use their enterprise serves. I think thats where the feature in. And john has reprogrammed those thoughts. Thats where people should start focusing on results. Neal cohen, thank you so much for your time. World cup 2014 now. Spain has crushed out of the tournament after a 20 loss to chile. The netherlands overcame a spirited Australian Team to win 32. And finally, disgrujted cameroon side have been knocked out, hammered, 40, by croatia. There was some commotion before the game, though. Chile fans burst their way through a security checkpoint. The Group Desperate to get into the stands ran to fifias media center in an effort to get pitchside. Fans were eventually surrounded and detained by security guards. Slightly unsettling, those pictures, arent they . Today, colombia faces the siefry coast. Uruguay and england lock horns and englands lewis has been declared fit. Japan takes on greece, as well. Whats your take on tonight . 20. Wishful thinking . No. The patriot in me. Come on, lad. Anyway, coming up on the program and getting back to business, a steady stream of ipos continues in the u. S. This week. Well give you a check on the Overall Health of the market and previewing a debut on the other side of the break, coming up next. These are your headlines. Janet yellens forecast a rise in Interest Rates in the u. S. Pressure remain owes obama to order air strikes in iraq and a fresh bid is expected from ge for alstoms energy business. U. S. Vice President Joe Biden says the white house and its allies are working on a fresh round of sanctions related to the violence in eastern ukraine. Washington is accusing moscow of supplying pro russian separatists with weapons and has warned it will abide costs if this continues. One man who has been sanctioned by the u. S. Is the ceo of rosnet. In his first interview, he gave his reaction to the sanctions. Translator the sanctions have been discussed a lot. I would like us to abstain from this discussion because the more we talk about the sanctions, the more important they seem to become. I am trying to put myself in the shoes of those poem who introduce sanctions and i believe this should be some purpose of the sanctions and some justification of them partnership cannot understand the purposes of the sanctions. Myself personally, i cannot understand what purpose they are pursuing. I am not involved in the political decisions. I am not an important person or elementary that matters from the standpoint of obtaining advantages. Currently, i cannot understand any justification for taking these sanctions. I dont think my active cooperation with the American Companies that is aimed at ensuing mutual profit could be a basis for sanctions. I think this sad situation was described quite well by the french politicians. As far as i remember, what he said was everything that is excessive does not have significance. I think serious people should not take any serious decisions under pressure. I respect such people would take some discussions because our task is to keep working. We will try to demonstrate our efficiencies in our activities, including the work of American Companies. In my opinion, this is the only time of response to these types of actions. Do you feel that your company and your cooperation with American Companies is going to be threatened by a next round of sanctions when its been talked about it will affect technology in the Energy Sector and that would actually hurt your relationship with your American Partners . Translator when i started to answer your question on sanctions, i said it would be better for us not to discuss this issue. Now we are trying to develop this topic. By doing this, you are trying to give more significance to the sanctions. I will repeat myself and say we will continue working to demonstrate our efficiency in the joint work that would be beneficial to both russian and American Companies. However, if decision res taken about sanctions, we will tb our project ourselves and leave the option open to our American Partners to come back when it is possible. All right. Stateside, the u. S. Ipo market stays busy with five Companies Set to go public today on the nasdaq alone, including one firm that has its hand on the pulse on the financial sector. Jackie deangelis is with us, cnbcs global hq and has more on this. Jackie, a pop or drop at the open for these debutantes . That is the question, sri. The company youre talking about is market. Its a Financial Data service provider. It priced its ipo at the middle of the expected range. We were looking for 23 to 25 a share. This is an offering that raised 1. 3 billion. That was more than expected because the size of the deal was increased by nearly 8 million shares. The ipo valued market at about 3. 5 billion and shares will start trading under ticker mrkt. It provides pricing, Reference Data and Valuation Service to more than 3,000 institutional customers worldwide. That includes banks, hedge funds and other asset managers. Bank of america and Goldman Sachs among its major shareholders. Singapores state run investment around temasek holds a 10 stake in the company, as well. So far this year, when we talk about the global ipo market, you know, generally, 131 u. S. Ipos have priced. Thats according to renaissance capital. Its up more than 60 from the same time last year. So a lot of new issues. The top sectors are health care with 47 deals and technology also with 34. Now, renaissance says that 22 ipos are up 50 or more from their filing price, which is not surprising given the moves that weve seen from the market. But among the bigger names that you may recognize, ariston networks, stock pricing at 43 a share two weeks ago, jumping 28 on its first day and up another 25 since then. On the flip side, 11 ipos are down 20 or more. Among those, were looking at Santander Consumer usa, a unit of the spanish bank and a leading provider of the subprime car loans. Shares there priced at 28 in january, down 24 soon. Theres a big deal coming across the bond this week. Its euroneck. It is expected to price its ipo today prosecute it starts tradeling in patientis. The kufrg could provide the with up to 2 the. 8 billion. But im guessing based on what were seeing that well get a pop on this one. Jackie, thank you very much, indeed. Still to come on the show, yelling for yellen. The s p 500 surged a new record on wednesday, but how should you be positioned ahead of todays hope . We preview the trading day, next. Welcome back to the show. Lets have a look at the u. S. Futures. It is thursday, the day after the fed meeting and the fed statement. The dow, the s p 500 and the nasdaq all seem just mildly higher, taking fair value into account. This is after the s p 500 rooechd another recoached anoth record high in yesterdays trading session after a dovish fed pushed the markets to a record close yesterday. Chair woman janet yellen said the economy is rebounding and Interest Rates would stay low at least through 2014. She down played recent inflation readings. Recent evidence we have seen abstracting from the noise suggests that we are moving back gradually over time towards our 2 objective. And i see things roughly in line with where we expected inflation to be. I think if you look at the sep projections that were submitted this time, you see very little language in inflation projections of the economy. Yellen says she doesnt think stock market valuations are outside on the historical norms, but says investors shouldnt take ultra low rates for granted. Lets get more as greg hib joins us now. Werent you surprised when the fed took a dovish tone. I think a lot of folks were braced for a hawkish message from the fed because the prior friday we had that surprise message from mark carney at the bank of england that rates in the uk could rise sooner than markets have been expected. So i think a lot of people were braced for the fed to die verge. But do you think thats exactly because janet yellen may be looking at the stage in this pretty conference is more interesting into putting together our dovish view . No, i dont think so. She looked more comfortable probably she watched a lot of tapes from her last conference and learned from that. A lot of the answers were sort of like long jargony kind of answers which drive reporters nuts, but are exactly what a central banker is supposed to do because you dont want to give people too much to get excited about. The dovishness comes through basically in the forecast. So, again, on inflation, almost no change in their outlook for where inflation is headed over the next two or three years. They basically think inspite of this recent run of up side surprises on prices, inflation is not going to get above their 2 or 3 target over the next few years. I asked her what if inflation goes above 2 temporarily . Is that goes to hasting the move up in rates . She effectively said no. Were prepared to tolerate up side surprises on inflation if thats what it takes to get unemployment down as fast as we want. All right, greg, thank you so much for your time. Appreciate it. Youre looking at live pictures of madrid. Thats where prince phillipe has become king. He and his family are being driven around the streets of madrid to greet the spanish people. They will end that trip at the palace where they will ultimately greet crowds. Thats it for todays show. Im carolin roth. And im sri jegarajah. Thanks for watching Worldwide Exchange. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Good morning and welcome to squawk box. A record high for the s p 500 after the fed hints at a slow rise in Interest Rates. Prosecutors subpoena a Congressional Panel in a trading probe involving Health Care Policy. The worst 17 minutes of my life, facebook crashed overnight for 17 minutes. Creating a social media firestorm. I had nothing to do. Its thursday, june 19th, 2014. How would you notice . When squawk box begins right now. Ah, yes, joe, the social butterfly when it comes to facebook. We know. Good morning, everybody. Welcome to squawk box here on cnbc. Im becky quick along with joe kernen and andrew ross sorkin. Lets start this morning with the markets. Stocks getting a boost from dovish comments from the fed yesterday. The central bank suggesting that Interest Rates would stay slow for just about forever each as the economy recovers. Inflation continues to run well below our objective and were still some ways away from maximum employment. And for the moment, i dont see any tradeoff whatsoever in achieving our two objectives that those call for the same policy, maybely a highly reaccommodative monetary policy. So, in other words, dont look for higher rates until well