dropping to the bottom of the european market after u.s. investor wilbur ross jr. sells his entire holding in the lender for 26.5 cents per share. andation stocks are closing mostly higher today, following a slightly higher than expected pickup in chinese consumer inflation. you're watching "worldwide exchange," bringing you business news from around the globe. hi, everybody. welcome. very glad you're with us. we have two hours together today and a lot to get through. let's get on with it. on today's show, the battle is on, tech giants rival is out at the e-3 exposition in san francisco. we head to the golden state to talk game strategy. hillary on capitol hill, the former secretary of state releases her latest book as rumors persist as a possible buildup to the 2016 u.s. elections or is this maybe more about the money? energy haven or environmental hazard? that's the question, the shale debate is as hot as ever. stay tuned. we'll go head to head with a ceo who aims to bring shale further into the european sphere. and also we will be in doha to get the latest on the world cup whoas as the fifa president labels criticism of qatar's 2022 bid as racist. and go daddy does an ipo. think financials are far less exciting than their racy ads. will the latest listing send the hears of investors racing? shares in italy's monte de. paschi di siena, launches a 5 billion euro sale share in a steep discount. the chairman said the capitol hill hike got off to a good start but also acknowledged there are technical issues. the cfo and deputy ceo of the bank. welcome, bernardo. what are these technical issues we keep hearing about? >> technicals are related to index trackers basically rebalancing their exposure to monte dei paschi. they need to buy shares to maintain tracking toward indices. that and sale of options need to settle during the offer period have led to a large demand for our shares at a time when we're still trading the rights and new shares are not being issued yet. >> we saw shares suspended most of the session yesterday and they managed to close higher by some 20% or so. it was down to a portion of 3 million shares placed late in the day. that's not a large amount. some might say it looks like people, they don't want to support this rights issue that's happening. they might be afraid that you'll be diluted massively. >> people who don't subscribe and sell their rights will be diluted massively. that's compared to the market cap before we launched the offer. i don't think i'd read investor intentions in the share price moment or failure to open but rather i'd stay to the technical adjustments that need to happen and will happen during the course of the offering. this is not for us, unfortunately for us in italy is not news. it's happened before. we've seen it happen before. it will iron out. >> definitely has happened before. recently also if we broaden it out to europe. we saw deutsche bank offering a discount of around 21% in the first bid of their rights issue. your discount is 35.5%. it's a steep discount. >> as a matter of fact, it's pretty much in line with recent rights offerings in italian market. we've seen discounts ranging between 32% and 34%. our offering is twice the size of our market cap when we announced it. compared to other offerings and deutsch bank's much recent offering, it's a much larger risk component than for the other offerings. at the same time, i don't need to look back too many years ago to see offerings with discounts much higher than 40%. i wouldn't say that this discount is the particularly steep, given, i'd say, the size of the offering. >> when looking at the situation that the nps is in now, you received 4.1 billion euros of state aid and that has to be repaid, you have the asset quality review coming up by the ecb, the stress test coming up as well. there are a lot of people questioning the 5 billion euro rights issue, will it be enough? initially it was 3 billion, then decided to raise it to 5 billion. are we going to have to see another 2 billion or 3 billion down the line? >> tough question, clearly. >> i know. i know. >> that's why they pay you the big bucks. >> that's why they pay you the big bucks. >> salary cap, starting to think so. the rights issue was increased to 5 billion rather than 3 billion precisely for the reasons you mentioned. we were stepping into aqr. by way of the mechanics of the process, it became clear it would be better to try and build a buffer ahead of the aqr to manage potential impact which may or may not materialize. what we did by increasing the size to 5 billion is basically position ourselves walking into aqr at par with our best competitors in the market. so in terms of will we need more later on on our conviction is that we won't, otherwise we wouldn't have launched a 5 billion rights issue, we would have done more but clearly we'll only have assurance after the results are published in late october. we're optimistic about our ability to pass this given the size of the offering. >> we kept hearing about bad loans in italy. we were looking at data on the shows yesterday afternoon. bad loans at italian banks up by around 2 billion euros from march. increase of 22.3%. >> 22%. that's, i think italy is clearly dealing with its asset quality issue. we have struggling economy, which has been in a recession in the last quarter and has come out only briefly came out of recession in the last quarter of 2013, clearly that is the key for us to re-establish the value of our collaterals, the inflows into npls. i think italian banks are doing the right thing in recapitalizing. as you've seen in the market, we've announced a 500 mpl movement. recapitalizing is the first step for italian banks, they're able to deal with this quality. >> the 500 million euros of bad loan to fortress in the u.s. private equity group. you being the oldest italian bank, one of the oldest european banks as well, when you were formed? >> 1472. it's tactually the oldest bank n the world. >> you also have the largest bad loan portfolio. >> we do. i think, again, it's adequately provisioned i would say. i think the problem for monte dei paschi, it's common through other italian banks like us and in general in peripheral countries, was the capital structure of monte paschi. it funded this acquisition only half by equity and the rest was debt financed what we're doing today with the rights offering is plugging this capital hole which will allow us to have better alternatives in the future in terms of managing asset quality. >> i've being told we have a little bit of news from the ecb. that's just hitting our wires. one of the governing council members saying that the governing council has shown determination and capacity to act. he goes on to say that the ecb is determined to keep a high monetary accommodation stance and that the ecb is conscious of risks of low inflation to price stability. this of course coming after the ecb's recent move to continue to support markets just this past week. let's continue our discussion on italy and the italian banks as well, in particular, on monte dei paschi di siena. you've been cutting costs, cutting jobs, you've been selling assets as we spoke about as well. is your motivation to stay independent? >> i'll say that if we can stay independent, it's all for the best. i would say myself and the rest of my team members are motivated to create shareholder value in whatever form this takes. the better our work is, the more the chances of remaining independent because the more the company will be worth and the more expensive, as our chairman said the other day, it would be to buy monte paschi. i'm agnostic. i don't see consolidation as an evil, frankly. i wouldn't -- i don't live in the fear of being acquired and at the same time we all try to do our jobs to make sure we become a target which is appealing to other potential bidders because that will be testament to value of the work we're doing. >> you're setting -- are you putting it out there, that you potentially would be interested in -- >> it's up to the shareholders to decide what they do to the shares. more importantly it's up to potential partners or buyers to be interested. frankly speaking, i don't think at this stage in the restructuring plan or the comprehensive assessment, i don't think -- it's unlikely that people would step out and start looking at consolidation play. different story might be in 18 months time when things have settled down and we found we delivered more cost cuts, turned the bank into what we wanted to be a profitable retail franchise in the center and north of italy. >> back to that point, the goal is to reach a profit in 2015, that's a year away. you've had eight straight quarters of losses. >> we're on a run. >> another massive rights issue as well. can you turn around to a profit within a year? >> if you read into the numbers and normalize for what has been in the past eight quarters kind of recurring set of exceptionals, so hard to argue they're exceptional, the fact of matter is, on an operating perspective in the first quarter of this year, we're profitable. if you strip out the cost of state aid, we pay more than a million a day in terms of enelectricest to the state on the bonds we issued last year. clearly the minute we reimburse that, we'll have a huge amount of uplift in our margin. profitability is moving in the right direction. we are ahead of target. all of those which are in our control i would say. we've had some headwind with regard to economy. we spoke about that earlier in terms of asset quality and the cost of credit for us and competitors in the italian market is substantial. which has stopped us from being able to be profitable. as things normalize, the measure introduced by the italian government, the ecb will help us. we believe we'll be able to meet our targets. >> maybe not -- maybe they're conventional, unconventionals. good luck with it. >> thank you very much. >> thank you very much for coming in to talk to us. the cfo and deputy ceo of monte dei paschi di siena. all right. just glancing at europe very quickly here as we continue our f f foret, flattish as well this morning. we were called pretty flat, too. that's what we're looking at right now. when it comes to the too ftse, the xetra dax and the cac all trading pretty flat to a little bit lower and the ftse mib bucking the trend higher by 0.2%. moving on and just looking at some of of the main stocks we're watching today, the u.s. top investor wilbur ross is to sell his remaining stake in the bank of ireland. he's resigned as the director of the lender. ross's 2011 investment in the bank was seen as crucial to its surviving during the financial crisis. now, reuters sources suggest the placement of ross's bank of ireland shares will be priced at 26.5 cents. sports direct has been cut from a conviction buy, this on the same day that the company gathered share holders in an effort to win support for a new bonus scheme that failed to get shareholder support back in april. mike ashley would have been rewarded 73 million pounds. just checking in on the european bond markets as well, we've been following with great interest how yields have been continuing to push lower across the board. in particular, we've seen yields pushing lower in periphery europe. in fact, we've seen the portuguese yield nudging down to lows not seen since 2006 and the spanish yield just capping that of the bund as well. the bund yielding 1.3% on a bit. you have the u.s. treasury around 2.6% in comparison. the italian yield around 2.7. sub-3% still. the gilt, 2.6% there. currency markets, we're seeing steady trade here across the board in in currencies, the euro/dollar around 1.3580 at the moment. really we need to get the full picture, get a check in on the markets in asia. sri jegarajah joins us out of singapore. sri, take it away. >> hi there. i want to update you with breaking news we're getting across the wires, both reuters and dow jones reporting. a group tasked with securing the karachi airport has come under fire in the last hour or so. we don't know whether the main airport is under attack as well. remember, though, that these headlines are coming just a day after militants stormed pakistan's largest commercial airport that's in karachi, early on this week. we'll leave that aside for you and bring you more detail when we get it. elsewhere, one of the gain serz the shanghai composite. the markets seemed to like targeted stimulus. so a cut in the triple r for some banks, that's going a long way to restore confidence in the markets as well. remember, we got inflation numbers earller on today, too, for the month of may. they were hotter than expected. but it looks as though it's going to be one off for the month of may. the low base effects in the prior months and the uptick in food prices. expect to see moderation and that should give the authorities a little bit more wiggle room to perhaps bring more stimulus to the able. economists are saying possibly in the third quarter. very different story for the nikkei 2 5. some give back on the japanese market after it scaled three-month highs. we're down by about 113 points at the close. the yen weighing on the export section as well. for the rest of the week, it's going to be down to the macro picture in china. because on friday, remember, we get the big data dump with investment retail sales and industrial production. so the big story there is really whether we're going to see further hints of stabilization in the world's second longest economy. back to you now. >> sri, good to see you. thank you very much for that. china's ipo market looks to be on a rebound after four months of relative quiet. final approval has been given. these are the first to go public after china security regulation commission approved 50 listings in january and in february. meanwhile, go daddy, well, he's going somewhere. he's going public. the web hosting company has file for an ipo looking to raise up to $100 million, although that number could change. go daddy which was founded in '97 has learn 12 million customers and drew considerable attention until recently with some pretty risky super bowl ads. you saw a bit of one right there. the form reported a loss last year but revenue rose by 24%. and finally, stock market operator euro next has launched its ipo. the pricing would value the company up to 1.8 billion euros. the first day of trading is expected on the 20th of june. still to come, does china's inflation reading for may leave the door open for more easing? we'll be speaking to one investment manager who feels that way, after the break. we started zya with the thought that the kid on the back of the bus might have a song that he has in his head but he just can't get out. with the technology of cloud, we change all that. i can sing something into my device. up to the cloud 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[ 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. you're watching "worldwide exchange." hello, everybody. you are indeed, i'm loui louisa boysen. concerns about deflation which were sparked by a drop in april have now been put to bed you could argue. the increase in cpi has been mainly driven by the rise in food costs, particularly a 20% surge to the cost of fruit. we have an investment manager at abedin investment management joining us from singapore. good to see you. what is driving the rise in chinese cpi? is it all down to food? >> well, it's largely down to food because if you look at the nonflood inflation, it's up quite a bit. it's actually food, particularly apart from fruits it's due to pop prices that have seen a tick up this month versus relative to the decline we've seen from the beginning of the year. >> and then at the same time we're looking at ppi data. the factory gate state showing us a drop for the month of may -- a resurgence in the drop, an improvement from the previous month as well. what's going on there? >> well, we're still in negative territory as you can tell, the negative number. there is an improvement and that's largely driven by, i think, rather flattish, the steel and coal prices that we have seen within the month. >> okay. so what do you think that the government is thinking at the moment? are they looking at the 2.5% cpi thinking it's still quite a ways away from our target, we're feeling pretty safe at the moment? >> well, not quite difficult to see what the government is thinking but if you were to look at 2.5% inflation, it's quite a way from the 3.5% target. that also means that that gives them room to put in this measure should there be a need to support the number which is have been coming weaker than expectation within the first quarter and if you see the slew of measures that has been coming on the last few months, pretty targeted rate cuts -- sorry, pretty targeted cut that help to lose in terms of agricultural loans as well, enterprises lands. that gives them room to boost the economy a bit. >> last but not least, do you think we'll see more direct stimulus? >> i think it really depends on the state of the economy and how strictly the government wants to stick to the gdp growth market -- to the gdp growth target on that front so there might be more. but so far, what we've been seeing over the course of this year is that these are pretty targeted and you see in terms of fiscal responsibility shifting to the central government that has the room to take on more debt rather than the local government. so far it's been pretty targeted but it's quite hard to tell how this will end up over the longer term, especially if the economy should slow further from here. >> good to see you. thank you very much. investment manager at abedin asset management. now, the sconsole wars are revving up again. microsoft and sony seem set for the next face-off between their video game consoles. jul jul julia has the details. >> the mood here at e3 is upbeat and the focus is on the new game announcements that will get consumers to keep buying games and the new consoles. at the xbox press conference the focus was not on a console as an entertainment hub but rather service to its hard-core gamer fans. >> you have to start with the core customer of the box, which i think is that gamer. we know that day one customer every year has to be the gamer, you expand from that gaming audience out. >> the second big event was electronic arts press conference. there all the talk was about the big titles and the various ways gamers can play with digital add-ones and mobile access. the hottest game, battlefield hardline. this is the first time ea has released a game in the franchise two years in a row. >> at the end of the day, great games bring in a lot of players. put the players first, build amazing games an they will live together inside the marketplace. >> within the next few days we'll hear from the other gamemakers as well as sony and nintendo about their plans to get consumers to spin big on games and consoles. back over to you. still to come here on the show, what are the changes and the challenges that are facing banks as investors, they look to emerging markets to find new sources of inspiration. we'll find out after the break. we'll keep you updated on other market moving news here on cnbc. you're watching "worldwide exchange." stay with us. ♪ ♪ ♪ great rates for great rides. geico motorcycle, see how much you could save. you're watching "worldwide exchange," bringing you business news from around the globe. welcome, everybody. these are our headlines this morning here on "worldwide exchange." still not trading, shares in monte dei paschi di siena indicated to open higher but they're not exchanging hands on the second day of the bank's rights issue. speaking exclusively to cnbc, the deputy ceo tells us the problem is purely technical. >> i don't think i would read investor intentions in the share price movement or the failure to open but rather i'd stick to the technical adjustments that need to happen and will happen during the course of the offering. the ipo market revives as china resumes its run of listings and i.c.e. details the paris market, valuing the platform up to 1.7 billion euros. bank of ireland drops to the bottom of the european market after wilbur ross jr. sells his entire holding in the lender for 26.5 cents per share. and asia stocks closed mostly in the green today, following a slightly higher than expected pickup in chinese consumer inflation. welcome, everybody. i want to update on a flash we're getting on the wires via reuters with regard to what's taking place in pakistan. we have a pakistani army official saying they're second troops to reinforce the karachi airport security force academy. that's coming through pakistan's army saying they deployed troops to reinforce security forces trying to protect an airport academy which has come under attack in the port city of karachi. moving back to our european markets, this is what we're looking at in trade, flat to higher on most of the equity markets at the moment, the ftse 100 lower by shy of 0.5% at the moment. the bond markets, today you're looking at yields of flattering, right around the unmoved mark. you had the spanish ten-year dropping below the u.s. ten-year over the last session or so. you were looking at the portuguese yields, some were around their lowest level seen since 2006. now when it comes to the currency markets we're flat there as well. pretty unchanged. you've got a dollar against the yen which is a little bit lower, 1.02. euro/dollar after by 0.2%. the sterling against the green back pretty unmoved. 1.68 or so. then we have the data that we've been looking at. may saw china's consumer prices rising by 2.5% on the year while producer prices fell by 1.4%. coming in slightly higher than analysts expected, concerns about deflation which were sparked by a drop in april have now been put to the side. the increase in cpi has been driven by the rise in food cost, especially a 20% surge seen in the cost of fruit. now it's been a difficult year for emerging markets with fed tapering and the ukraine crisis weighing on sentiment towards some areas. our next guest says that volatility is the defining feature of emerging markets and despite the recent turbulence he expects them to remain central to global growth over the next decade. steven lewis is director and global lead analyst for the banking and capital market sector at ernest and young. he joins me in studio. good morning. >> good morning. >> when looking at emerging markets at the moment, we have a search for return that's taking place across the globe really. we've soon a lot of the emerging markets recover quite substantially in the first couple months of the year. is that going to continue? are we going to have a phenomenon of huge emerging markets again. >> we have to separate out the shorter term market volatility that we see going on across both developed and emerging markets from the longer term trend towards growth. i think it's these longer term fundamentals that both banks and investors are recognizing in the emerging markets. as we say in the report, we expect bank credit within these markets to increase from around 3.5 billion -- trillion in 201 to over 5 trillion in 2018. huge demand, huge opportunity for growth. but that doesn't come without challenges. >> and what are the biggest risks? >> so i mean the biggest risk really, first of all you've got regulation. >> yes. >> continued both in terms of adoption of global regulation and in some cases markets are going above and beyond those global standards. you've also got rising costs. we talked about the increased cost of funding, over 80% of the banks we spoke to saw -- or are expected to see an increase in the cost of funding because of what's going on in the qe tem r tempering program. there's also competition, not just from domestic banks but banks in malaysia, south africa, expand to develop a stronger regional presence. and that competitive environment is just going to get vonger? >> looking at the emerging market banks, what do you have to do to be successful in emerging markets. >> there are things that have to be done in terms of shorter term activity, such as strengthening credit risk management, thinking about the profitable customers, strengthening programs to increase efficiency. there are three kind of enablers that run across all of that. technology is a key one. whether it's got a front office, mobile, digital or supporting the sort of infrastructure of the bank, you've also got investing in people. and the banks that we spoke to expect to see significant increase in the war for talent, particularly as they look to invest in these areas. the third one is looking at potential poorter inships. we've already seen a number of developed market banks, whether they be japanese or australian banks moving into emerging markets, either through acquisition or strategic investment. we expect more of that to continue. >> are there certain markets now that look like, well, this is the opportunity to get in? because, again, we've seen recovery in some, quite substantially and there are others lagging behind. when the markets stand out now, where it's not too late to get in on the second half of this year. >> yes. we split our markets into three groups. the more established emerging markets like south africa, malaysia, transitional group in the middle like thesia and egypt, then the frontier markets like kenya, vietnam, vie jeeria. in terms of growth, it's these frontier markets where you're likely to see some of the strongest growth coming through but clearly the risks are stronger there as well and greater there. interestingly, when we looked at the sort of fragile five as they've been so called and three of them are in our report, indonesia, turkey and south africa, where you have that current deficit relying on external funding and clearly the risks are much greater and the potential for outflows could potentially pose a risk to bank funding and growth within the sector. >> okay. last but not least, when looking at some of the outliars or some of the countries that haven't quite requestinged to make headwinds this year, you're looking at areas like turkeys, a lot of analysts say there's too much going on in turkey for it to be an opportunity yet or close to home, you can't really calling an emerging market as such but ukraine, some of the eastern european countries as well that have been affected by ukraine. what do you make of the banking sectors there. >> the corporate and industrial sectors in those markets are going through a significant period of volatility. the respondents in our survey flagged the broader geopolitical risks as an increasing concern really. i think they will continue to pose a threat. i think given there are so many markets where there is much stronger growth, at a lower potential risk, then international investors are probably more likely to swing towards those. >> okay. steven, thank you very much for being with us this morning. steven lewis, director and global lead analyst for the banking capital market sector at ernest and young. the swedish prime minister is hosting a press conference in sweden. he is in the midst of a two-day meeting with uk prime minister david cameron, dutch counterpart and the german chancellor angela merkel. just to let you know that is going on. despite being two of asia's economic power houses and emerging economic power houses at that, indonesia and india have failed to make the top 60 of the world economic forums most recent global competitiveness report. how can the countries fix the urban infrastructure as populations rise? cnbc has been investigating. . >> reporter: this 39-year-old commutes every day by public transport to her workplace in north jakarta. like many others in the city, her daily commute is a nightmare. >> translator: by the time i get to work i would have spent an hour and a half to two hours on the road. >> reporter: over in india, this man and his partner run three restaurants in mumbai, commuting from home to his multiple locations is a daily challenge. >> my office, depending on the time of the day can take anywhere from half an hour to one hour and the outlet, can take an hour and a half to two hours during the monsoons. >> reporter: these are two of asia's emerging powerhouses, similar economic potential but they also share one common challenge, the lack of infrastructure. the world economic forum's most recent global competitiveness report ranks indonesia 61st, india 85th out of 148 economies for their infrastructure. decades of dysfunction have led to huge deficiencies on that front. >> it looks and feels different in an archipelago as it does in an subcontinent. somehow connectivity is a major theme for both with all of the rail, road, port investments that are required to address the connectivity needs. >> reporter: but there are promise of change in indonesia, with hopes resting on jakarta governor, widely tipped to be the country's next president. >> translator: hopefully indonesia will be like singapore with its mrt or similar transportation technologies. we will wait and see if there are any other solutions out there. >> reporter: change could also be on the cart in india with modi's sweep into power. >> i'm hoping that given the organizational background of the leader of the new government you'll see a little more development in infrastructure, at least in the city. >> reporter: this is the ceo of idfc which right now manages close to $10 billion in assets related to infrastructure. historically, much of india's infrastructure has been financed by the public, but increasingly, it's private players like these that are playing a key role in getting many projects off the ground. >> i would wager that the shift from the public to the private sector for infrastructure development has been the most dramatic of any country in asia, perhaps even in the world, over the last decade and a half. >> this is a lesson that indonesia itself is trying to address but probably the context in which you invest and the health of the pipeline of projects means financing will come. rather than focusing on financing first and then expecting projects to materialize. >> reporter: whim it's unclear if changes in political leadership will bring about much needed change in infrastructure, one thing is clear, if these bottle necks are fixed, it could reap big economic benefits. martin sung, cnbc. now, fast retailing, uniqlo said to be hiking margins. the hike is expected to take effect in the fall/winter collection. the stock fell around 1.5% in trading today. now, mobile messaging app line is set to form a partnership with salesforce.com to introduce a new ad service for companies to send targeted ads to users. we have the story live there tokyo. what's this all about? >> well, by using line in the sales force new service, advertisers will be able to filter line users by age, location and gender. more than 100 companies in japan have official business accounts with line. they were only able to send mass ads until now. after obtaining consent, companies can send personalized messages to targeted groups or individuals. the new service will allow companies to track line users past purchase records and then they are able to send out highly personalized recommendations and messages. business users were responsible for developing their own service, but by using the new sales force system, the only cost about $80,000 per year, making it easier to market online platform. line has more than 450 million users globally. so by tapping business users demand, the company hopes to get ahead of rivals such as whatsapp and 10 cent. david marcus is jumping ship, joining facebook to head up the company's messenger service. he will be in charge of the app within facebook's site and the free mobile application but not whatsapp which facebook bought for $19 billion. facebook may have let the cat out of the bag, accidentally releasing this screen shot of its new slingshot app which is supposedly its answer to snapchat. it appeared monday afternoon only to disappear hours later. former u.s. secretary of state hillary clinton adds to speculation that the wife of president bill clinton is considering to run for the top job herself. hard choices, details clinton's regret at backing the iraq war. her attempt to mend fences with obama and some more personal revelations as well. in an interview with abc news, the former first lady reveals she and her husband left the white house, quote, not only dead broke but in debt. the couple reportedly struggled to pay for mortgages and their daughter's education. so we're asking today which job would you happily do for free? is there a job where it would make it worth it? of course both hillary clinton and bill clinton are heavily compensated in speaking engagements as soon as they got out of the white house. if you want to join the conversation, we're on e-mail, worldwide@cnbc.com, you can also find us on twitter @cnbcwex or directly to me. so we're everywhere. which job would you do for free happily? still to come, in more "worldwide exchange" here on cnbc. welcome back. we have 100 days to go from the scots cost the s cast their vot. the economic reality remains contentious. the treasury spokesman for the s&p says his party can grow cotland's economy post-independence. >> tax yield has been higher for 33 years. fiscal position, even over the last five difficult years was better than the uk's. last year there was a slight dip because we had 14 billion of larger tax deductible investment in the north sea. we would expect that. >> well, phil rush is the uk economist. he joins me from london. phil, first of all, how big a chance do you think that there is that the scots would vote yes? would we be surprised at the very late minute? >> good morning. it's certainly a nonlegible risk now. the polls have been creeping in favor of the s&p. it has a formidable election machine that means it is very good at getting the vote out on the day. appealing to the passions of the people in favor of independence. it's probably getting towards a one in three chances of getting in favor of the independence movement now. >> you say that -- it's not your base case that scotland votes yes but a yes vout would potentially have profound economic impacts on scotland. talk us through some of the key impacts from your angle. >> yes, some very key angles on it as you said in your intro. it is a bit contentious around what the economic relationship is going to be between scotland and the uk afterwards. the bit that isn't contentious is that this is probably going to be very bad for scotland. as far as the currency union aspect is concerned, we don't think that it's credible to be relying on a formal monetary and banking union with the new uk after independence if that happens. and absent that, there really are no good options for scotland. it's running very large fiscal deficit. its oil and gas receipts have been very high over the past few decades are dwindling rapidly. and with the unfavorable demographics that scotland's got, its working age population is likely to be declining over the next few decades. it's not in a good position to be growing and funding itself. as a result we think that scotland will be fundamentally worse off. furthermore, there are a lot of concerns around that currency aspects, the redenomination risks that we saw were prevalent within the euro area context. this could see some of the big companies redomicile out of scotland, in particular the banks. and those companies that are issuing in scotland could well find some issues with people questioning the currency that they might actually be receiving on various different forms of paper. >> you outline in some of your recent research, phil, you outline how you can hedge against the independence risk. and you have a couple of very concrete things that people might want to look into. you say, for example, one way to hedge is by going long italy, short spain. why is that? >> that's looking at the european spillover effects of a scottish referendum. if you were to see scotland leave, that's going to be involved in the independence movements in catalonia in particular and have implications for the relative credit qualities across europe. there are also more domestic focusings, looking in equity space at the uk focused banks versus the scottish focus banks. various bits of scottish issued paper that should be subject to a higher risk premium or in a gilt space, the short end of the term is likely to face selling from international holders that just don't want to have exposure to this political risk. >> phil rush, thank you very much. uk economist at nomura. this is a press conference taking place in hopson, sweden. they're all speaking at the conference. now, brazilian subway workers will be voting on wednesday whether to begin a strike on the opening day of the world cup. riot police have fired tear gas to break up protests yesterday. sao paulo will be hosting the first game featuring brazil and croatia on thursday. all this happening as fifa president has branded some of the criticism aimed at the qatar world cup as racist. yousef camal el-din joins us. >> he did not elaborate who they is but he did point to british press, questioning the reasoning behind the attack and the broader assault. he urged unity as well, louisa. that echos some of the conversations i've had with senior executives here in doha that this is part of a broader attack on qatar, that is one view. another executive told me that qatar may lose the world but but at the end of the day, the world needs qatar more than qatar needs the world cup. this all comes as the fifa conference is set to kick off p today. michael garcia is expected to share some of the progress being made. we do not expect a final report of his investigation to come out until mid-july. the final verdict on what will happen with the 2018 and the 2022 bid might come through by september or october. >> yousef, thank you very much. yousef gamal el dine bringing us the latest in sports business. go daddy, will investors logon to the web hosting company despite its lost last year? we'll be getting into that ipo much more later in the show. stay with us for news and analysis. we started zya with the thought that the kid on the back of the bus might have a song that he has in his head but he just can't get out. with the technology of cloud, we change all that. i can sing something into my device. up to the cloud it goes. back down it comes sounding better. we break down the walls of creation, and we give music creation for the masses. ♪ ♪ hi, everybody. welcome. you're watching "worldwide exchange." i'm louisa bojesen. these are your headlines from around the world. still not trading, shares in monte dei paschi di siena are said to open higher this morning. they're still not exchanging hands. speaking exclusive to cnbc, deputy ceo tells us the problem is purely technical. >> i don't think i would read investor intentions in the share price movement or the failure to open but rather stay to the technical adjustments that need to happen and will happen during the course of the offering. gm meets with shareholders today against the backdrop the still unfolding and possibly very costly ignition switch recall. and the ipo market revives as go daddy goes public. the company once known more for its racy super bowl ads and web hosting services, is taking the plunge, filing for a u.s. ipo. elsewhere, the platform is valued at up to 1.7 billion euros. and the bank of arld dropping from the bottom of the european market after wilbur ross jr. sells his entire holding in the lender for 26.5 cents per share. you're watching "worldwide exchange," bringing you business news from around the globe. hi, everyone. thanks for tuning in. if you're just joining us, welcome. yes, this is "worldwide exchange." we have an hour to go of the show. european markets flattish at the moment. we closed on a flattish note yesterday as well. we had chinese data that we've been looking at this morning, some inflation data coming in slightly stronger than anticipated. and at the same time we're also looking at -- it went up a bit, 2.5% is where it's not now. at the same time also seeing ppi data that just became more benign. we're still negative but benign. u.s. futures, this is what we're looking at right now. we're looking at a flattish start to the open in the u.s. at the moment right now. and as said, this comes off the back of having hit multi-year highs on these markets on almost a daily basis or new record highs being set for a number of sessions running now. when it comes to bond markets, we continue to see yields pushing lower across the boards. i say that, right now, we've seen flip-flopping taking place in the market, bunds yielding 1.3% or so. yields a little bit higher elsewhere. but it's worth noting that we have seen indeed a push lower in the spanish yield for an example, the spanish ten-year below its u.s. counterpart. the italian yield 2.7%, the ten-year gilt, 2.7% as well. we continue to see this trend very much intact. the currency markets, well, the euro/dollar in trade 1.3538. a far cry from the 1.40 we were at before the ecb's decision to continue to lower rates. we saw that last week. we've had the euro dollar coming off quite substantially on the notion that the ecb would be acting. we're hanging on to this 1.35 level at the moment. let's get back out to the markets in asia and what's been taking place. sri jegarajah is in singapore and joins us now. sri, good to see you again. >> good to see you again, louisa. we got a strong lead from wall street and another new record high there. >> reporter: regional factors as well that helped the market and risk appetite in this part of the world. the focus is clearly on china. we got more targeted stimulus yesterday. that's benefiting some of the regional lenders. also, we got the inflation data on the cpi front. hotter than expect, both sequentially and an on-year basis. it won't necessarily constrain the pboc from deploying more stimulus into the system. economists have a base case scenario of more targeted, incremental easing in the third quarter of this year, to keep the economy on an even keel. so 1% pop for the shanghai composite. as i said, the focus will be squarely on the china data. on friday, we get industrial outputs, retail sales, fixed asset investment as well. that should guide direction not len i in greater china but the regional markets as a whole. it will give us a sense as to whether the world's second largest economy is on a firmer footing. nikkei 225 wasn't. it slipped at the settlement down by 130 points. a little bit of give back there on that market. remember we have scaled three-month highs for the nikkei. so some profit taking and some buying on the market there. excuse me, some buying on the lows of the market. remember also, the currency markets were an impediment for the nikkei because we saw a stronger yen. elsewhere, some pockets of weakness and remember the sensex has run up as well on modionomics, the markets are liking what they heard yesterday, especially in parliament, the government outlining their reform agenda and a very investment friendly was. a give back for india and singapore. back to you. >> sri, thank you very much. sri jegarajah with us, giving us the lowdown on the asian markets. china's ipo market looks to be on a rebound after four months of relative quiet. the approval has been given as of monday. these are the first to go public since china's security regulatory commission approved 50 listings in january and february. and go daddy is going places because he's going public. the web hosting company has filed for an ipo, looking to raise up to $100 million, although that number could change. go daddy which was founded in '97 as around 12 million customers and it drew quite a bit of attention until recently with its somewhat risky super bowl ads. go daddy reported a loss last year but revenues rose by 24%. the company was since bought by kkr and silver lake partners in 2011 for $2.25 billion. founder bob par ssons holds a 2 stake. euro next has launched its ipo pricing at shares between $19 euros and 25 euro which is would value the company up to 1.8 billion euros. first day of trading is expected to happen on the 20th of this month. the 20th of june. let's talk about the markets. let's talk about which strategy should be in place at the moment. joining me now is brian reynolds. a chief market strategist at wosenblatt securities. thanks for getting up to be with us. what should investors be thinking heading into the second half of the year? >> i've been writing to my clients that the action i'm seeing in credit derivatives is the opposite of what we saw in june 2008. back in june of 2008, the credit market was indicating that share prices should be a lot lower. at that time, part of credit market was indicating that lehman was worth zero when it was still in the 20s. now it's the opposite. we're finding that in deal after deal, in the last four months, credit investors have been making money hand over fist. we've been in a credit boom for five years and credit investors are finding out they have not been aggressive enough. and that indicates that share prices are way too low compared to what credit investors are willing to finance them at. >> and there's an argument that credit leaves equity. you're saying that that still continues to be the case. >> that's the case, especially now since we got past the debt ceiling crisis in february. once we got past that psychological hurdle we started to see ceos become much more willing to do mergers and acquisitions. in deal after deal we found that bond holders had been making money hand over fist. that was very evident yesterday, because tyson became the victor for hillshire foods. the bonds of both companies have done well and the credit derivatives of both companies have done even better. that tells you that people were betting against the financial system through credit derivatives. once they realized that these firms are not going out of business, in fact, they're going to make money, they're stronger together than they were apart, we saw a massive short covering in the credit derivatives of those companies. that's a positive for equities down the road. >> brian, hang on there. we will be speaking a bill later here on the show as well. it's 5:00 where you are, in boston? >> it is. >> oh, that's early. slap yourself a bit around the face. >> not too early to get into equities. >> good answer. good answer. now you need the markets to open on your side. hang in there. get a cup of coffee, something like that and we'll be back with you in just a moment. brian reynolds from rosenblatt securities. european closing bell at cnbc.com. find us on twitter as well, @worldwideexchange or @louisa bojesen is the direct twitter handle to myself. some of our top stories, gm holds its shareholder meeting in detroit. ceo mary barra will be briefing the media at 8:45 eastern time. the meeting itself begins at 9:30. barra and gm's board may be approached by families. analysts range anywhere from 5 billion to 7 billion and they say that gm could take action that would impact future earnings like increasing reserves for warrant costs. and general motors and its german listing very flat. this year, lower by some 10% or so. now, the s.e.c. is reportedly investigating several big quote, unquote, dark pools, ramping up pressure on the private trading venues. now "the wall street journal" says regulators are examining whether they're properly disclosing to clients how they operate if they treat all investors fairly and are protecting confidential client information. mary joe white last week made strong comments about dark pools and whether they're harming investors. the journal says one venue is run by barclays and was second largest by trading volume in may. coming up here on "worldwide exchange," bears are running for cover as derivative protection placed this year is under water. so says one analyst. we'll be getting a little bit more into that in a moment. looks like we're about to board. mm-hmm. i'm just comparing car insurance rates at progressive.com. is that where they show the other guys' rates, too? mm-hmm. cool. yeah. hi. final boarding call for flight 294. [ bells ring on sign ] [ vehicle beeping ] who's ready for the garlic festival? this guy! bringing our competitors' rates to you -- now, that's progressive. you're watching "worldwide exchange." you are indeed. welcome, everybody. i'm louisa bojesen. these are your headlines. gm shareholders preparing to meet, giving them the chance to grill ceo mary barra on the ongoing ignition switch recall. it's just a technicality, pnps tells us we shouldn't be reading anything into the stock's failure to open for a second day. and web hosting services go daddy prepares to go public. now, credit derivative spreads are narrowing, short covering is intensifying and any protection put on this year is now under water. that's what brian reynolds has been indicating in some of the research and stuff you've been looking at. brian reynolds is a chief strategist at rosenblatt securities. tell me about what you're seeing. >> the action we saw on thursday and friday of last week was extraordinary. we saw the financial credit derivatives rally tremendously, for example, goldman sachs on thursday, its spread was about 80 basis points. it collapsed to about 65 basis points. that's an extraordinary move in about a day and a half. that tells you people who have been betting against our financial system, the first five months of this year are under water and are feeling a lot of pain. usually those macro bears have bets against the credit derivative and the equity markets at the same time and so, again, this is the opposite of what we saw in 2008. in 2008, we saw securities like this melt down. now they're melting up. and the ig credit derivative which typically follows the financial credit derivatives fell to its lowest level of the year. all the protection that people put on against the financial disaster this year is under water. and much of that protection is leveraged because credit derivatives are long-dated put options. when you have leverage bets go under water and those bets are on the bearish side, that usually means short covering is coming. i'm not sure if this happens right now or like 2008, it takes a while for equity investors to get the message. the message is opposite from 2008. we're looking at the potential for a melt up in derivatives. >> interesting. i was speaking to a guest of mine yesterday evening on european closing bell and we were talking about why would anybody in this hunt for a yield or search for return, why would you go in and buy something like the german ten-year at the moment looking at what is yielding? i mean, where would you be putting your money at the moment? where do you think the opportunities really lie? >> the best value is in equities. equities relative to credit are the cheapest they've been since the junk market was invented. conversely, you can say credit has never been more expensive. i would rather be in stocks rather than in credit. our pension funds in the u.s. which have dominated financial markets for 25 years through the funds that mimic john meriweather, they don't want the volatility of equity. they want the perceived safety of credit. they keep pouring money into the credit market that eventually goes to the stock market because the bonds they buy put cash into corporate balance sheets. ceos are incented to get their stock price up because they get paid in stock options. they take the money that comes from the pension funds and they use that to buy shares back. now they're using it for m&a, to do deals with be to get their stock prices up. it's kind of like a daisy chain. it doesn't last forever. but i think it goes on for another three or four years. we're seeing more and more pensions put more and more money into credit. even though credit yields are the lowest ever. yesterday, junk bond yields fell to their lowest level ever. it tied the record we saw last may before the fed started talking about tapering. that's extraordinary. five years into a credit boom and junk bond yields are tied for their lowest yield ever. >> brian, really interesting. thank you very much. thanks again for getting up to early for us. we appreciate it. >> you got it. >> talk to you soon again. brian reynolds, chief market strategist at rosenblatt securities. the shale boom has allowed the u.s. to become almost entirely energy efficiency. where are the investment opportunities in the space? i'm joined on set by edward cohen, the ceo of atlas energy, just after the break. hi, everybody. welcome back. you're still watching "worldwide exchange." here on cnbc. i had to think for a minute. doing all the shows these days. what we're looking at, a couple hours away from the u.s. market open. you've got the u.s. markets all being called just a little bit lower on the opening. down by a couple points. keeping in mind we've been hitting the record highs on almost a daily basis here over the last couple of weeks. state side as well as in asia, three-year highs on asian stocks in the overnight session. here in europe, we're taking a breather this morning in trades. now, i just want to mention that we're getting a flash out on our wires via reuters. they're stating that the lithuanian competition authority is saying that they're fining russia's gazprom around $48.5 million for avoiding competition in the gas markets. gazprom has been fined around $48.5 million for preventing competition in the gas market. this coming from the lithuanian competition authority via reuters. ukraine and russia failed to agree on a gas deal after eight hours of negotiations. trilateral talks which include the european commission will be resuming later today or early tomorrow on wednesday. elsewhere, the shale production boom state side has allowed the u.s. to move from worrying about the viability of their gas imports to become almost untirely energy self-sufficient. the goal is 2017, 2020. one of the many beneficiaries is atlas energy, which has grown six-fold since it went public in 2012. welcome. >> thanks, louisa. >> first of all, energy independence for the u.s., are you on 2017, 2020, does it matter? >> i'm more of 2020. but two years ago i remember being with jim cramer on cnbc and i proclaimed the possibility of north american -- not u.s. alone but north american, u.s. and canada, energy independence. jim said at the time, that's startling. i never heard anyone say this would happen quickly. it really is happening and it really is extremely important to the world. >> atlas energy made up of two different prongs to it, atlas resource partners and atlas pipeline. you sold the company quite recently to chevron for almost $4.5 billion and then started a new one with the same name. talk to me a little bit about the company and what exactly it is that you do. >> our company as you said correctly is only 3 years old. we've been in the business as a management team for decades. we were pioneers in hydraulic frac'ing and shale. i'm from pennsylvania, as you might hear from my accent. that's the heart of the marcellus shale. we were pioneers. our company as a whole, and my granddaughter said, this must be obvious, selling high and buying low. when we saw what was happening with marcellus shale and how high price had gone and how appropriate it was for the world's largest companies to be doing this rather than the independents who start these things. we did a $1.7 billion dollar with reliance, the largest company in india, following that up the next year with the sale of the entire company for 4.3 billion. we bought back from chevron a few assets and we've been building since then. our basic strategy is our parent company is a management company, which gets a share of the profits, called incentive distribution rights. and without investing, atlas energy, the parent company, makes a great deal of money but we have to manage and manage well to make that money. >> the number one thing i don't understand when i look at shale and there are lots of things i don't understand but the number one thing is why don't we see more r & d efforts being made outside of the u.s. with regards to shale, if it is such a great thing, why is it that -- it feels like the rest of the world is so behind the u.s. in this. >> well, i think one misconception is that shale equals lots of energy. the shale has to be there. poland, for example, probably has the largest holdings in europe. but there's been a lot of effort by chevron and many others over the years, supported strongly in the last five years by the polish government. unfortunately, the shale is there but the oil is not there, the ga is is not there. that's been unsuccessful. in some countries there's a political opposition. in france, for example, shale exploration and development is forbidden, however, president hollande had said recently they hope to find another way to develop shale other than hydraulic frac'ing. >> very interesting. we'd love for you to come back and visit with us another time. thank you for being with us, edward cohen, ceo of at land energy with me here in the studio. still to come here on the show as former u.s. secretary of state hillary clinton releases her new book, "hard choices" will she choose to run for president? 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[sci-fi tractor beam sound] ...sucked me right in... it's beautiful. gotta admit one thing... ...can't beat the view. ♪ introducing the world's first curved ultra high definition television from samsung. hello, everybody. you're now watching "worldwide exchange." i'm louisa bojesen. these are your headlines from around the world. gm is meeting with shareholders today against the backdrop of the still unfolding and potentially costly ignition switch recall. still not trading, shares in monte dei paschi di siena have been indicated to open higher but still haven't been changing hands on the second day of the bank's rights issue. the deputy ceo cold me the problem is purely technical. >> i don't think i would read investor intentions in the share price movement for failure to open but rather i'd stick to the technical adjustments that need to happen and will happen during the course of the offering. >> the ipo market is reviving as go daddy is going public. the company once known for its racy super bowl ads and its web hosting services is now taking the plunge, filing for a u.s. ipo. plus, also european leaders face off in sweden over the next eu commission president. germany merkel -- excuse me and says threats do not belong this the discussion. the uk's cameron is calling the bid a stitch up. you're watching "worldwide exchange," bringing you business news from around the globe. hello again and welcome. if you're just tuning in, thanks for joining us on the show. we've been through a lot already this morning. trade markets flattish here in europe. i'll show you that in a second. the u.s. futures, we're a couple hours away from the u.s. market open. we're called a couple points lower. this coming off the backdrop of lofty levels seen state side. the same goes for asia markets in the overnight session, again, flirting with new record highs. here in europe as i indicated, we're seeing pretty flattish trade this morning. we've seen a bit of flip-flopping with the ftse mib trading higher. cac 40 just coming through the flat line. the xetra dax up by a couple points and you have the ftse 100 off by 0.5%. how do you make money in these markets? this is what some of the experts have been telling us. >> what do i think is going to happen? we'll continue to see depreciation of the canadian dollar. the banks may adopt an easing bias. maybe not in the next meeting g i but the subsequent meetings. the intention is to keep nominal rates low in india for a very long time. >> we are seeing some rotation from gold into cyclical commodities like silver, for example, or copper. we're seeing investors becoming more positive, u.s. growth or global growth in general and less concerns about global risk. >> there's still a reluctance to increase exposure until the risk is clearly reduced. >> now, the console wars are revving up again at the annual electronic entertainment expot. microsoft and sony seem set for the next face-off between their dualing video game consoles. we have the details. >> reporter: the mod here at e3 is up updata and the focus is on the new game announcements that will get consumers to keep buying games and the new consoles. at the xbox press conference which kicked off the week of events this morning, the focus was not on console as an entertainment hub but rather service to its hard-core gamer fans. >> you have to start with the core customer of the box, which i think is that gamer. we know that day one customer every year has to be the gamer, you expand from that gaming audience out. >> the second big event was electronic arts press conference. there all the talk was about the big titles and the various ways gamers can play with digital add-ons and mobile access. the hottest game, battlefield hardline. this is the first time ea has released a game in the franchise two years in a row. >> at the end of the day, great games bring in a lot of players. our focus right now is put the player first, build amazing games an they will live together inside the marketplace. >> within the next few days we'll hear from the other gamemakers as well as sony and nintendo about their plans to get consumers to spin big on games and consoles. back over to you. joining us on the line from los angeles is mark walton, senior writer at game spot. what do you think we'll learn today? >> well, i think what we've seen so far from the press conference has been a huge focus on the games themselves rather than the hardware each platform provider is trying to sell. we've seen microsoft come out with big games like overdrive and project start and sony's come out with stuff like bungee destiny game. they seem to have this so far at the show. >> many would argue that microsoft made a huge mistake, they didn't market their profit fittingly or accordingly, instead of focusing on video games, they marketed the xbox as an all-purpose entertainment system which gave sony a huge advantage. is it about going back to basics for microsoft? >> it absolutely has been. they made a huge misstep last year. some call it arrogance with their market leading position with the xbox 360 and they offered a product that consumers simply didn't wantp this they've gone away from that entertainment focus this year and they've taken the kinnect hardware out of the price as well and reduced the price to $399, which places it in the same price bracket as the sony's play station 4. it was all about the games. it was a string of great games people want to see on the xbox. >> with regards to sony, how does sony strategy differ from microsoft's now? and do you think the new microsoft ceo, is he going to pull any rabbits out of his hat? >> well, you know, sony are in a leading position at the moment. they are ahead in terms of raw sales. they sold 7 million consoles at last count compared to microsoft's 5 million. i think they done the have to change tact as much as microsoft has. they are in that leading position. what they need to do now is reassure consumers that have bought the console that there are great games coming out for it. i think they've done that today. as for microsoft i'm not sure what else they can do at the moment other than tell people there are great games on this plot form. they've gone back on a lot of things they said they were going to do. i think if they stay the course now and get great games out there, they will see good stuff for them. >> can i also just ask you, on the general gaming market, i was looking at figures, it's estimated approximately 20% of the market is the high end pc gaming that accounts for 20% of market, then you have 17% that's the low-end, the ipad and smartphone games and the remaining 63% of the market goes to video game consoles. is it going to stay like this or are we going to see video game consoles diminishing significantly and a big growth story on hand-held devices? >> hand-held has been growing for a while now. we've seen that success with apple's iphone and android as well. i think there's a place for the dedicated games console. they do things that you simply can't do on a phone, a smartphone or tablet just yet. certainly in the uk, the market is nearly 3.5 billion pounds, at least it was in 2013 and a billion of that came just from boxed software on consoles sold on physical store shelves. i don't think we'll see the changeover night. certainly i think microsoft and sony are adopting very well to the onslaught of mobile games. >> mark, thank you very much for being with us. mark walton, senior writer at game spot. now former u.s. secretary of state hillary clinton today publishes her long-awaited account at her time at the state department, adding to speculation that the wife of president bill clinton is possibly considering a run for the top job herself. joining from us washington, d.c. now is tony fratto, managing director of hamilton place strategies and former white house deputy press secretary as well. >> good to see you, too. >> what do you think? do you think we'll see hillary running in 2016? >> i think it's pretty clear she is. the book and the way she's going about spending her time, i think it's pretty clear that she is running. i think she's doing it in a very smart way, the way that a candidate who has her commanding position in the party right now in terms of support and money, she's taking advantage of all of those advantages to put her in the best position to run. i don't think there's a question she's doing that. there are a few candidates on the sidelines but i don't see anyone, at this point, who can challenge her. we should remember, louisa, if we were having this exact same conversation in 2006, hitting into the 2008 elections we would have said maybe the same thing about mrs. clinton at that point in time. she also had a commanding position at that point. >> how about the republican candidates in comparison? >> in comparison, it's a wide open field. it's concentrated on mrs. clinton, the democratic field. the republican field is wide open. there are a number of senators that are exploring the options of running and governors and former governors, for example, governor jeb bush is florida is one. i'm a big supporter of the bush family and think highly of jeb. i wouldn't be surprised to see him run. a number of senators, senator rubio, obviously rand paul has been paving the way for a run. senator rob portman from ohio would be an interesting candidate. there are a lot out there who are looking at it. i think it's going to be a wide open race. it will be interesting to see who captures -- you know, you can imagine in a race with a big field, a candidate with a relatively small majority, 22%, 23%, 24% in primaries could win the primaries and get the nomination. >> do you think it will be a less exciting race in some ways, simply because the economy has recovered? in other words, the issues are going to -- there's obviously still a lot of economic focus but the issues will have to be broadened out and not just be about the economy recovering. >> i don't think there's any question that 2008 was a unique period to have an election. i was in the white house at the time and if you remember, the suspended campaign of senator mccain and we had both presidential candidates come to the white house for a meeting, right in the midst of the election season. we're not going so see -- i hope we don't see that kind of drama and let's all hope we are talking about an election in the middle of a growing economy. i think all of us would be happy about that. but there's always some kind of drama, presidential elections are always very interesting. as we have seen over the past year, foreign policy challenges for american presidents never go away. the issues of legacy issues of the war on terror in afghanistan and iraq and elsewhere, the russia issues, there are numerous challenges in asia for candidates. and those issues would be particularly pertinent for secretary clinton, coming from the state department. it's really remarkable, i was traying to think back in history of a presidential candidate who has spent more time in the public eye and more prepared to run for president than secretary clinton. i can't think of any. she's really been through a lot over the past 25 years and has been very public and well tested. at the same time, she's constrained by a lot of the policies that she has had to take over those years. >> tony, thank you very much for being with us. incidentally, in the book, she talks about how, apparently, when they came out much the white house she and bill, that they came out not only dead broke but in debt. that's a quote from the book. she goes on to say she had to piece together resources for mortgages and to try to pay their daughter's school tuition fees as well. >> i can say she -- >> please. >> i can say she and i had that in common. >> is there a job you would do for free? >> well, i guess i did do it for free at the end of the day, right? i think i came out of the white house in debt. i think i would do any of those jobs for free. it's a great privilege and honor to do those jobs on behalf of the american people. i think i would. >> tony, thank you very much for your input. we'll talk soon again. tony fratto, manager director of hamilton place strategies, a cnbc contributor and former white house deputy press secretary as well. is there a job would you would do for free? let us know. this is worldwide@cnbc.com. we'll put it up on screen for you. find us on twitter @louisa bojesen. is there a job that you would do for free that would make it all worthwhile? now, let's take a look at some of the other top stories today. angela america has reiterated her support for jean claude yunka. she's joined by david cameron and mark water. merkel made clear the eu jobs weren't the topic of discussion. uk prime minister cameron told the conference he wants britain to stay in a reformed european union. he warned against the eu taking an unhelpful direction. >> we're four leaders willing to confront the challenges facing the eu, to address the problems that stir disillusionment among europe's citizens. i'm confident by working together we can reform the eu and make it stronger and more successful. >> shares in italy as monte dei paschi di siena failed to open for a second day after remaining suspended. the this as the world's oldest bank launched a 5 billion euro sale. speaking exclusively to cnbc, the deputy ceo told me that the problem is purely technical. >> i don't think i would read investor intentions in the share price movement or the failure to open but rather i'd stick to the technical adjustments that need to happen and will happen during the course of the offering. this is not unfortunately for us in italy who deal with the structure and offering is not news, it's happened before. we've seen it happen before and it will iron out. >> read all his comments and get the background at cnbc.com. too hot, too cold, just right? the goldilocks porridge scenario in a moment. we'll have more chat right here on "worldwide exchange." [ female announcer ] there's a gap out there. that's keeping you from the healthcare you deserve. at humana, we believe if healthcare changes, if it becomes simpler... if frustration and paperwork decrease... if grandparents get to live at home instead of in a home... the gap begins to close. so let's simplify things. let's close the gap between people and care. ♪ let's close the gap between people and care. fifteen minutes could save you fifteen percent or more on car insurance. yeah. everybody knows that. did you know there is an oldest trick in the book? what? trick number one. look-est over there. ha ha. made-est thou look. so end-eth the trick. hey.... yes.... geico. fifteen minutes could save you... well, you know. you're watching "worldwide exchange." welcome, everybody. i'm louisa bojesen. these are your headlines today. gm shareholders preparing to meet, giving them the chance to grill ceo mary barra on the ongoing ignition switch recall. it's just a technicality, bmps saying not to read into them not opening for the second day. and an ipo, go daddy prepares go public. go daddy, the web hosting firm is filing for a an ipo. we go to cnbc headquarters with more. seema mody has more. >> reporter: the web hosting firm fell for an ipo on monday, looking to raise up to $100 million. although that number could change. go daddy didn't specify how many shares it would offer, an expected price range or where it will list. it registered about 57 million domain names as the enof last year. go daddy has long been known for its risque super bowl ads, though it toned things down this year. it was bought in 2011 for $2.25 billion. bill parsons still owns a 28% stake. the u.s. ipo market has cooled off recently along with a pull back in valuations and high growth stocks. renaissance capital says 117 companies have listed this year, up 52% from this time last year. of those, 73 deals are trading above the ipo price. tunnu priced on $9 a change on may 9th, jumped 12% on its first day. the stock has nearly doubled on its ipo price. nephrogenics fell about 4% on its first day and lost nearly half of its value since then. louisa? >> seema, good to see you. i might see you this afternoon. coming up on "worldwide exchange," mary barra will have investors in the rearview mirror as she faces the families of victims at the gm shareholders meeting. the details in a second. gm ceo mary barra will be meeting with families of victims killed in crashes linked to faulty ignition switches at a shareholder meeting later today. joining me on the line from shanghai is paul ingassia. what do you think the day will have in store? >> there will be drama, louisa, far beyond the annual meeting of shareholders in any company. a lot of emotion. what's amazing to me, though, is that this whole episode has unfolded, general motors hasn't really been hurt in the two places that would be very telling, that is its sales in the united states or its stock price, both of which have held up remarkably well during this whole episode. >> do you think that we're going to be -- are we going to be hearing more about the potential costs of this? >> well, they might give an updated figure. it's possible they will. i think what we will not be hearing, in mow than we heard in the lengthy report by outside lawyer who was hired to do the company's own investigation, who released a 325-page report, it's a big report but we still don't know the answer to the key question, such as why did mrmr. d mr. degiorgio, the gm engineer change the design without changing the part number, which would have led to earlier detection. we also don't know why several company lawyers didn't raise the alarm bells. >> paul, thank you very much for being with us. paul ingrassia, managing editor at reuters. that's it for the show. i'm louisa bojesen. thank you very much for watching "worldwide exchange." we'll see you tomorrow, same time, same place. good morning and welcome to "squawk box." more records for the wall street as the average continues to grind higher. the s&p 500 extends its winning streak as the dow closes in on 17,000. over1950 on the s&p. and gm is holding a shareholder meeting under the cloud of that big recall crisis with estimates of what it's going to cost going up by the day. and go daddy is going public with a $100 ipo. it's tuesday, june 10th, 2014. "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. stocks are coming off another record day, the dow is now just 57 points away from 17,000. take take look at that. 16,943. the nfib, small business index comes this morning and at 10:00, we get wholesale inventories. goldman's top forecaster is singing a bullish tune. jan hatzius says the economy is growing at an above-trend pace. among the reasons that hatzius is positive about future growth, he's citing improvement in the housing sector. corporate news, general motors now holding a shareholder meeting today in detroit, just days after the automaker released its recall report. investors will be

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