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tv   Worldwide Exchange  CNBC  March 2, 2016 5:00am-6:01am EST

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good morning. the race for the white house, hillary clinton and donald trump dominate super tuesday. >> a market rally in asia overnight despite a moody's downgrade. >> and new this morning, ex-chesapeake energy ceo indicted. a pioneer of the u.s. shale boom charged with conspireing to rig bids. it's wednesday, march 2nd, 2016. "worldwide exchange" begins right now. good morning to "worldwide
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exchange". >> donald trump and hillary clinton move closer to securing their party's nomination for president. clinton winning seven states. bernie sanders taking home four super tuesday wins. >> instead of building walls, we're going to break down barriers and build -- [ cheers and applause ] -- build ladders of opportunity and empowerment so every american can live up to his or her potential. >> clearly going after trump there instead of sanders. on the republican side, trump did turn in seven victories last night. ted cruz picking up wins in his home state of texas, also neighboring oklahoma, and just a short time ago he did pick up alaska as well. >> there's much less enthusiasm for the democrats. so look, i'm a unifier. i know people are going to find that a little hard to believe, but believe me, i'm a unifier. once we get all of this
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finished, i'm going to go after one person. that's hillary clinton. on the assumption she's allowed to run, which is a big assumption. i don't know she's going to be allowed to run. >> with chris christie in the background, our john harwood will be joining us here on set this morning in just a few minutes. >> but first, let's check in on the markets this morning. futures pointing to a positive open. we had a great positive session yesterday. now, in fact, we're pointing to a slightly negative open. we have had great positivity in international trade. the dow calls down by around 35 points. the s&p and nasdaq roughly flat. of course, yesterday unabated risk-on sentiment for wall street. all sectors of the s&p in the green, apart from one, the more risk-off utility sector. >> in asia overnight, moody's downgraded its outlook on chinese government debt to negative from stable. the ratings agency citing uncertainty over economic reforms, rising government debt, and falling reserves. stocks didn't seem to mind. they rallied hard on the back of
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that strong session on wall street. check out the chinese shanghai composite down on the bottom, up 4.25%. hang seng in hong kong up 3%. japan's nikkei up 4%. >> early trade in europe this hour also positive as we're looking at things right now. there's some mention of expectations of easing from mario draghi next week. the ecb meeting will be front and center. that positivity today in europe a little predicated on that. also seeing some gains, of course, yesterday. we're not seeing quite so much today. the ftse 100 up 0.2%. dax in germany up a similar amount. >> you're going to want to pay attention to oil again today. it's down 2%. wti in the early action. weekly oil data out at 10:30 a.m. eastern time this morning. numbers yesterday showed a huge build in u.s. oil stockpiles.
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look, yesterday was an interesting, very bullish day. the leaders were the barngs, wilfred. the technology stocks, some of the most beaten down shares. they were the growth shares, and there was this idea that maybe the u.s. isn't barrelling toward recession. we got better construction numbers. the manufacturing contraction eased a bit. potentially not as bad as the markets were pricing in. china looked a little calmer. oil is steadying. nothing is fixed, but those were some of the worries with us. >> definitely nothing is fixed. i think it was a classic risk-on day. we also saw gold and bonds lose a little bit of steam. the sector performance showed high-beta things doing better than low -beta things. also, it's the first of the month. >> let's charge march. the bulls take over. >> people pointing to technical levels we got through. as you rightly say, nothing's been solved. no fundamental factors. but it was a nice risk-on
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positive day. >> the question is, are central bankers really losing their power and juice and what's that going to mean for this rally. next week we have the ecb, we have a fed meeting coming up. all sorts of markers in the month of march. it will be interesting to see if this rally can hold. >> interesting dynamics in europe. we saw the euro slide a little yesterday. maybe we're going get a little more easing. maybe that was one of the reasons we saw european equities perform. on the flip side, the german ten-year bond did go up in line with other bonds, which is counterintuitive if you're expecting more easing. we'll have to wait and see. >> the only thing i would say is with yesterday's rally, the s&p is only down 3.2% for 2016. after all that. >> that doesn't tell the whole story, though, does it? >> at one point, the s&p was down 11% for the year. we've really come back strongly. we'll see what happens next. >> back to politics. we've mentioned hillary clinton and donald trump both scored big wins. at this point, there are no signs that the rest of the field is moving to the sidelines.
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>> and after tonight, we have seen that our campaign is the only campaign that has beaten, that can beat, and that will beat donald trump. >> we can disagree in a democracy, and that's what a democracy is about. but i hope all of us agree that we're not going to allow billionaires and their super pacs to destroy american democracy. >> sanders staying on message there. let's break it all down. super tuesday results with our own john harwood joining us in studio this morning. super disappointment for the republican establishment. >> i was going to say, you used a phrase a minute ago, are central banks losing their juice? the republican establishment, the central bank of the republican party, has lost its juice. what happened last night was that donald trump won a series of contests, seven contests last night, and the person who
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defeated him multiple places was ted cruz, who the party establishment likes almost as little as it likes donald trump. marco rubio, who had emerged as the electable alternative, he simply could not breakthrough in virginia, which was the key state where he made a push. he did win the caucuses in the state of minnesota. but that's not the kind of jump start he needs for his campaign. that's his only win. ted cruz has won four places. john kasich hasn't won anywhere. ben carson hasn't won anywhere. but they're staying in the race. now the psychology has flipped from having a single alternative to donald trump right now to having both kasich and rubio stay in because their ability to win their home states, florida and ohio, which have winner take all primaries, is critical to the effort to deny trump a delegate majority. so if kasich wins ohio and rubio wins florida, neither of them are going to be on a path to have a majority, but together, all of the anti-trump candidates
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can be in a position to deny him a majority. it's a very unlikely scenario, but it's what they have to count on right now. >> even if he had a plurlty of delegates but not a majority, would they all be able to unite against him? >> i think it would be difficult. in fact, trump forces are already starting to warn their voters that what one called yesterday, the big steal, the party leaders are going to try to steal this nomination by amassing delegates and holding them against trump. it's very difficult to happen, not likely. if donald trump continues to win most states, as he has done so far, especially if he can win once we get to the winner take all rules, he's going to be unstoppable. >> could his choice of running mate appease the republican establishment, or is that such a minor issue compared to trump being front and center, that it doesn't really help? >> the ladder. it's such a minor issue. donald trump is such an
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electrifying figure to his supporters but a repellant figure to so many republicans. you're having people condemn donald trump in the harshest terms about his character, his morality. >> how about that unusual stepping out by paul ryan, the house speaker? >> you had paul ryan, the house speaker. the republican party cannot have attached to itself the kind of odor that comes from a candidate not condemning the kkk. simply cannot do it. or alienating vast blocs of hispanic voters. donald trump last night tried to temper some of those reactions. he held a news conference rather than a rally to make it look as if he was the presumptive nominee already. he had flags behind him. he spoke in very sober tones, tried to portray himself as the de facto nominee. he's not there yet, but he's getting close. >> if trump has momentum, is
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clinton on par for both? >> absolutely. she's had very powerful victories. if you're going to be a national candidate in the democratic party, you've got to be able to win substantial support among nonwhite voters and african-americans. bernie sanders was not able to do that. she defeated him by crushing margins in the south, as she'd done earlier in south carolina. so hillary clinton did lose a few states. she lost in the state of vermont. she lost in oklahoma. she lost -- >> but small numbers of delegates. >> exactly. the big states she's winning handily. >> so what happens to the republican party, john, if trump does become the nominee? you started with the establishment as the loser last night. what happens to those members of congress, those senators? do they vote for hillary clinton? god forbid. or do they vote for donald trump? >> some are saying they would look for a third party alternative. one of the senators from nebraska -- >> is that for real? >> yes, it is for real. now, the question is who emerges
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for that. there are always additional options on the ballot. there's going to be a libertarian nominee. there's going to be a constitutional party nominee. how much strength those lines have on the ballot have depend on how much people are turned off by the candidate at the top of the ticket. it will hurt republicans running for the house and senate to be running with donald trump. now, it's unpredictable, and donald trump has shown strength where people thought he wasn't going to. and it's been more durable. but all of the political professionals within the republican party who admittedly have been wrong about a lot of things so far in this campaign, as i have been wrong about many things, they believe donald trump will be toxic at the top of the ticket for their party. >> nobody's been more wrong than "the huffington post," who wanted to cover donald trump as entertainment and not as a real politician. >> well, it depends on what you call wrong. the attacks that donald trump is suffering from republicans right now echo the same things "the huffington post" did, except
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donald trump has managed to win nevertheless. >> john harwood, fantastic insight early this morning. thank you very much for that. in the next half hour, we'll vl much more on the race for the white house with stand collender. don't miss presidential hopeful john kasich on "squawk box" at 7:00 eastern time along with two of his major supporters. >> that should be good. i wonder how long they'll stick it out in the race. among today's top corporate stories, former chesapeake energy ceo has indicted for bid rigging. the justice department alleges he orchestrated deals among two major companies to not bid against each other for land leases in oklahoma. the charges follow a four-year probe. chesapeake was not named in the indictment.
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mcclendon, who stepped down in 2013, is now with american energy partners. >> just a crazy story. okay. we could get a teaser in today's economic data of what the jobs report may bring on friday because we get the adp employment report, private sector jobs at 8:15 a.m. eastern time. it is expected to show another solid increase in private payrolls last month. forecasts call for a rise of 185,000. that's actually smaller than january. at 2:00 p.m., the fed releases its monthly beige book, which tracks conditions in the fed's 12 districts. san francisco fed president john williams will be speaking out about the economy this morning. and adult beverage maker brown-forman and abercrombie & fitch will be reporting before the bell. an executive shuffle at zynga. the game maker behind words with friends announcing its founder and ceo will step down and will be replaced by the former electronics arts executive.
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starbucks announcing its former chief operating officer has resigned. allstead was on extended unpaid leave. and ross stores reporting better than expected fourth quarter results. the retailer's outlook did come in a bit lighter than expected. those shares are higher in the premarket. >> a few more stocks to watch. weatherford international announcing an 80 million share public offering. the move is an effort to pay down debt and buy additional shares. it's down 6% on the news. csx reportedly rebuffed a january takeover bid from canadian pacific . despite turning down the offer, the firm remains interested in a possible combination, according to "the wall street journal." and american water works will replace consol energy in the s&p 500. the move will take place after the close of trading on thursday. american water up 5% on the news. when we come back here on "worldwide exchange," a live report from asia. chinese stocks had their best day in about four months.
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we'll talk about what and which movers were behind some of those big moves in the overall indi s indices. >> as we head to break, we want to hear from you. our twitter question this morning, could donald trump be a successful president? get in touch. >> the john harwood special. >> could he do it? might he change his tune a little bit on key issues if he was actually elected? get in touch with us on world world. we're back in a couple minutes.
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welcome back to "worldwide exchange." a very good morning to you. a great day for u.s. equities yesterday, turning in a strong start to march. nine of the ten s&p sectors were in positive territory, led higher by financials and technology. today just expecting a fraction of profit taking, but not too much, as you can see. the s&p and nasdaq basically flat. the dow called lower by 33 points. similar muted early trading in europe today. nothing too strong at all. but we have got gains. the dax up 0.25%. the ftse 100 up by 0.2%. much better performance than that in asia overnight. let's get to singapore, where sri has the details. >> good morning. good to see you. really down to the external factors. the markets over here, big risk-on move, by the way. the markets in our region, they liked the wall street close your side overnight. they liked the ism data. they liked that oil is firmer
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and behaving itself. all to the good. these moves, especially in north asia, up more than 4%, looks a little overcooked to me when you consider that the underlying stresses in the emerging markets and in asia have not gone away. the external picture still remains quite challenging this pen we got that shot across the bows from moody's with their downgrade of the ratings outlook sovereign debt in china. the market largely shrugged that one off. i think they're still riding on the coat tails of the stimulus efforts from the pboc from beijing and the cut in the rrr. a lot of that liquidity that's been unlocked heading into the property sectors does create some unintended consequences in terms of asset price bubbles. it's really down to the external picture. i think the u.s. data your side, your neck of the woods, is going to continue to set the tone. roll on the payrolls. that's the next big event. watch that dollar. back to you.
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>> we'll get a preview today at 8:15 with adp. now today's trade of the day. with stocks rallying to start march, volatility is fading. so how can investors trade this smoother sailing? our data team analyzed the data to find out which etfs will move if the vix continues to fall. they found emerging markets etfs performed well like the ewz brazil index and the eem, emerging markets index, which makes sense. they've been so tied to risk. on the flip side, government bond securities and gold related etfs lag. no surprise there. they have been surging this year on the back of what has been a pretty volatile few weeks. if this continues, could see this action. for more, go to and check out cnbc pro. by the way, stocks are now at seven-week highs on the back of that rally. nearly 350 points on the dow yesterday. >> interesting just to counter some of those trades of the day.
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the key thing for emerging markets comes back to the dollar and thus what the fed does. if we go back to that tightening cycle, ems will suffer again. it's not just the vix, much more what the dollar is doing and what that means for capital flows. >> good point. >> still to come, u.s. astronaut scott kelly returning to earth after spending almost a year in space. >> but first, here's today's weather forecast from the weather channel's jen carfagno. >> sara and wilfred, yesterday was the start of meteorological spring. me meteorologists, we love our stats as much as financial analysts and baseball analysts. yesterday for record-keeping purposes, spring began. and kind of right on cue. we've got some crazy weather out there. a lot of changes today. a system blowing into the east. p it's going to bring a lot of wind and rain and falling temperatures throughout the day. sun back out in parts of the south after thunderstorms last
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night. rain blowing into the west with strong wind storms out there. we're going to see temperatures returning back above average to the southern plains. in fact, that's going to be the story as we get into next week. a true taste of spring coming our way when it comes to temperatures. i'm meteorologist jen carfagno with your weather channel forecast from coast to coast. "worldwide exchange" continues after this. which allergy? eees. bees? eese. trees? eese. xerox helps hospitals use electronic health records so doctors provide more personalized care. cheese? cheese! patient care can work better. with xerox.
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good morning and welcome to "worldwide exchange." if you're just waking up, let's get you up to speed on today's market action.
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u.s. futures pointing to a lower start. just a little bit though. nasdaq futures have turned higher, up two. dow futures down 32. s&p futures down two. after bulls stormed the month of march yesterday with a broad based rally on wall street, dow closing up almost 350 points, s&p closing at a seven-week high. oil had been firming in recent weeks. it's under a little bit of pressure right now. let's show you the numbers ahead of the weekly inventory number later at 10:30 this morning. wti crude is down 2%. brent, the international benchmark, down a little less than 1%. we're well off the lows. way off those 20s we were seeing in the early part of the year. and the dollar, here's the sentiment gauge for you that a lot of folks are watching. the euro continues to be under pressure. it's been headed south in the last few sessions. 1.0860. stronger u.s. dollar. stronger dollar against the yen as well, which shows you some of the easing of tensions that we've seen during extreme environments, tense environments. you see the japanese yen
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strengthen. >> absolutely right. europe finding slight gains itself today. in sports news, the new york yankees' closer aroldis chapman has been suspended for 30 games under major league baseball's new domestic violence policy. he's the first player to be punished under the league's policy. in october, chapman allegedly choked his girlfriend. police didn't file charges due to conflicting eyewitness reports. in a statement, chapman denies he harmed his girlfriend but admits he should have exercised better judgment. u.s. astronaut scott kelly and a russian cosmonaut have returned to earth after spending almost a year on space.
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scientists will gain further insights by comparing scott kelly with his earth-bound identical twin mark. the mission is a record for the international space station and will give kelly a tally of 520 cumulative days in space over four flights. welcome home. >> welcome home. when we come back, this morning's top stories, including big wins for hillary clinton and donald trump last night. we'll be joined by political watcher stand collender and gymmy pethokoukis about whab t expect next. >> but first, our twitter question. >> it's a good one. >> could donald trump be a successful president isn't t? interesting results so far. much more analysis coming up here on "worldwide exchange." >> and happy birthday, bon jovi, turning 54 today. >> how do you know all these birthdays? >> i just hear the music. >> every day you know them. someone tell me. friends coming over?
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good morning. your money, your vote. hillary clinton and donald trump dominate super tuesday. so what's next in the race for the white house? new this morning, ex-chesapeake energy ceo indicted. a pioneer of the u.s. shale boom charged with conspireing to rig bids. and trending, we'll tell you why kanye west finds himself in hot water this morning. it's wednesday, march 2nd, 2016. you're watching "worldwide exchange" on cnbc.
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good morning. welcome back to "worldwide exchange" on cnbc. i'm sara eisen. >> and i'm wilfred frost. a lot more on the race for the white house coming up straight ahead. first, let's check in on global markets this morning. u.s. futures basically flat, just below that level. of course, coming off the back of a very strong rally yesterday. march kicking off in resounding fashion with nine out of ten s&p sectors in the green, led higherly the high-beta sectors like financials and technology. today we're expecting a little correction. the dow called down by 31 points. let's have a quick look at europe, where we've got slight gains there. nothing too significant about. about 0.2% for germany. asia turned in a strong performance following wall street. nonetheless, nice gains to look at there.
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the shanghai comp up 4.2%. oil was a factor yesterday. it's down today. we've got 33.76 on the clock for wti at the moment. >> you talked about the bullish start for the month for stocks. thank you to our crack data cruncher, who tells us it was the best start to a month in three years. >> well, there we go. >> good way to start march after a down january and a down february. stocks now only down 3% for the year. >> maybe that was it. maybe it was the start of the month. we've had so much volatility, so much negativity in january and february. people may have been just sitting on the sidelines, had high cash balances and are like, wham. >> oil stopped going up, the dollar strengthened extremely, china has a better handle on its currency for now, and the u.s. economic data may be turning and may be a catalyst. we'll see what happens with adp jobs on friday. the big corporate story of the morning, former chesapeake energy ceo aubrey mcclendon has
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been charged with bid rigging. the justice department alleging mcclendon orchestrated deals between two large energy companies to not bid against each other in certain land leases in oklahoma. the charges follow a nearly four-year probe. chesapeake was not named in the indictment. mcclendon, who stepped down as ceo in 2013, is now with american energy partners, and he intends to fight this and denies any wrongdoing. stunning to see this. >> big story, that one. another one on the agenda today, exxonmobil will host its investor day in new york city. landon dowdy joins with us three things to watch. >> hey there. good morning. executives at the oil giant are expected to address some of the unanswered questions following exon's most recent earnings report. here are three things to watch. first, capital budget. exxon already announced it would cut spending by 20% this year. if they cut capex further, it
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could raise conditions for future growth. second, keep an eye on its dividend. the firm recently announcing it will no longer buy back shares to prop up its stock price. so its dividend could be in danger. and the third thing to watch, cash flow. listen for how aggressive exxon will be on the m&a front as its threat to the its rare aaa credit rating keeps mounting. >> what's been interesting is the stock price of exxon, which clearly is lempled for the price of oil but has really outperformed the other energy players. >> exactly. we've seen the stock up about 10% in the past six months. what i'm heari inin ining is de lower gas price, they have a strong balance sheet and exxon has the ability to withstand this longer than some of its competitors. >> interesting perspective. landon, thank you. now to the story everyone is
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talking about this morning. hillary clinton and donald trump moving closer to securing their party's nominations for president. clinton winning seven states. opponent bernie sanders taking home four super tuesday wins. on the republican side, trump turning in seven victories. ted cruz picking up wins in texas and oklahoma. just a short time ago, adding alaska too. joining us now is stan collender and jim my. let's start with you. the momentum behind donald trump now, is it unstoppable? >> i think it's still stoppable. less stoppable than before super tuesday. listen, i think the easy case to make here is he's unstoppable, big wins, and he's going to roll
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to the nomination. i think the contrarian case is the whisper estimate for donald trump is he was going to win 10 or 11 of those states, maybe all 11. he lost four. he almost lost three more. he got less than half the delegates. he maybe got a third of the total popular vote. no one is going to drop out. if in two weeks john kasich can win ohio, marco rubio wins florida, i think at that point then it becomes very likely that there's going to be a battle at that convention with i don't know what outcome. >> so how does that look to you, sta stan? what does that mean if we see a battle at the republican c conventi convention? >> my best guess is trump will take it, but a battle at the republican convention almost certainly means that whoever the nominee is will come out of the convention in far worse shape than they'd like. the other option that jimmy didn't mention is that if trump
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moves on and marchesn to the nomination, republicans, as john harwood mentioned earlier, republicans decide they want a third-party candidate to take the mainstream republican point of view. i'm not going to say that's going to guarantee a democratic victory, but it does make it much, much more likely. and it almost certainly means the party will go through four years of -- >> who? who do they have that could really mount a third party challenge to trump and clinton? >> well, now, look, it's not so much that you're expecting a third party person to win. it's what you're trying to do if you're a republican mainstream person who's denied trump the nomination and get rid of some of the toxicity that would hurt had the down market candidates. >> listen, the third party strategy is really about preserving the republican brand for future elections so it's not tainted by having someone lead
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the ticket that some would say has run a racially divisive campaign so far. at that point, i'm not sure you're talking about winning. i think that's one option. i still think even though people talked about it for years, it never happened, a contested, brokered convention. it looks more likely. i think we'll have a good feel after the next round of primaries in two weeks. >> jim, was a good night for hillary clinton on the democratic side. before we get to that, was it also a good night for her on the republican side? all this we're discussing on the republican side, does that play into her hands? >> what she would not like would be a unified -- listen, when the republicans set up this debate schedule, the whole point was to have a unified party behind a candidate so they can make the general election argument against the democratic candidate. that's not going to happen. it looks like a very divided party. it'll be divided coming out of that convention, which is ideal for hillary clinton. >> is this a two-man race, stan, on the republican side between
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cruz and trump? which our own larry kudlow was predicting. does this mean rubio is out? or does he still have a shot in florida? >> well, first of all, he's the republican establishment choice still. if he can win, and he has to win his own state, then this is going to go on for a while, probably all the way through the convention. sara, the big thing to keep in mind here, if you're a market person, is what we're talking about is an extraordinary amount of uncertainty going to the election and coming out of the election. we're talking about narrow majorities in the senate regardless of which party is in charge. a smaller republican majority in the senate. and not a lot happening in the next couple years. so for those who were expecting tax reform to take front and center or for washington to do much on any issue, it's not going to happen. >> and jimmy, just quickly, rounding things off on the democratic side, is sanders pretty much on his last legs? has clinton got it locked? >> i think she's the wildly probable favorite to be the
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democratic nominee. bernie sanders has shown an ability to raise money. usually when candidates get out, that's because they've run out of money. that's unlikely to happen for bernie sanders. at this point, i believe his campaign transitions into one that's there just to push his message about income inequality. >> all right. quickly, stan, you're the budget guy. from your perspective, can donald trump be a successful president? we asked on twitter today. i'm shocked at the number that is saying yes. what say you? >> well, if you look at his plan on taxes, the possibility of being successful on the budget is zero. a $13 trillion tax cut unpaid for except with waste, fraud, and abuse. i would say the answer is a flat no. >> all right. thank you. making headlines today, bill ackman's fortunes keep moving in the wrong direction. sources say his pershing square holding is down 20% this year.
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the hedge fund lost nearly 10% in the month of february. it's a much different story for jeffrey gundlach. posting an inflow of $2.4 billion in february. that marked the firm's 25th straight month of inflows. recently making news when he said he bought u.s. stocks in february after the market's rocky start to the year. the s&p 500 up 8% since that purchase. he has a way with calling timing of these things. and he's not even really known as much for his stock calls as for his bond calls. that strength in bonds, which he predicted last year, turns out to be true. >> a tale of two very different sets of performance numbers there. >> time for today's trending stories. this is a good one on billionaires. 221 billionaires were knocked off the "forbes" annual billionaires list, the most since 2009. how about an indicator for you there. that was during the credit crisis when it dethroned 335
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billionaires. china this year lost 42. the u.s. lost 25. some notable names that were included, michael pearson of valeant and tori birch. >> interesting. next trending story, at&t will start offering directv over the internet later this year. the service will let users stream programming online without the need for a satellite dish. the company also plans to sell a version for mobile devices. interesting development coming maybe a little late. we'll see what happens. >> we have to see what service -- how much it costs and what programming they offer. that's been the tough part of these companies like apple trying to negotiate with the content. kanye west in the spotlight once again. how often does he make our trending stories? the rapper tweeting a picture that showed him listening to some music on youtube, but fans noticed another tab open on that screen. illegal file sharing site pirate
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bay. kanye has been a champion of music streaming, releasing his newest album on tidal. >> or is it tongue and cheek, intended joke? such a stupid mistake to make. >> you think he's that clever? >> i don't think he is. just trying to find something. final trending story, the cover of the new "new york daily news" today, make america migrate, the headline reads. remember when you said you'd leave the u.s. when trump was elected? we don't blame you, and it's time to start planning. that has been trending widely. this paper, of all the papers, very, very much anti-trump. >> they've been brutal. their covers are hilarious. they go through place by place where you should go. of course, the first answer is canada. they list some other options.
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>> coming up this morning, we have our must reads. the big theme, you guessed it, politics. stay tuned. you're watching cnbc, first in business worldwide. lots more to come. you can't pret the market. but through good times and bad... t. rowe price... ...we've helped our investors stay confident for over 75 years. call us or your advisor. t. rowe price. invest with confidence.
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and if you thought that was amazing, you just wait. ♪ welcome back. good morning to you if you're just getting up. time for some must-read stories catching our attention. i've gone for one in "the financial times." of course, i did just criticize "the daily news" for being very opinioned on donald trump. this is very opinioned from
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martin wolf. he says, donald trump embodies how great republics meet their end. i'm not so much interested in the body of this, but particularly the center of the argument when he says why this has happened, not so much where we're headed, but why trump has done so well so far. an interesting perspective. he says, mr. trump is no conservative. elite conservatives complain. precisely, that's also true of the party's base. interesting how he's saying how trump has managed to appeal to the base of the party, saying that he doesn't have to go the standard route. it doesn't always make sense there and then. it's really hit a tone with lots of people in the party. >> what i thought was interesting about the wolf piece was the doomsday prediction, end of the republic.
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a little exaggerated. >> very strongly opinionated. >> but martin wolf is not an american journalist. gives you a sense of how the outside world is looking at this. by allings, what we've heard is they're looking at it puzzled and a little afraid. what stood out to me in this piece, i read it also, is that he threw a lot of insults at donald trump. wolf called him a promoter of paranoid fantasies, a xenophobe, and ignore ramus. it doesn't seem to matter at all to his supporters. they're faithful and angry. they are buying it no matter what. >> they are indeed. so that's an interesting perspective from the other side of the pond on what's happening over here. still to come, a strong start to march on wall street. futures at the moment basically flat. a little bit down, as you can see. the dow called to open 40 points down. but can the bulls continue the charge? we'll ask the chief global investment strategist at charles schwab coming up. a little bit of coldplay playing as we go to break.
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a very happy birthday to chris martin.
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make your e-commerce more efficient with fedex. welcome back to "worldwide exchange." we're approaching the top of the hour. that means the "squawk box" team is getting ready in new york city. joe kernen here with a look at what is coming up. as we all digest the results from super tuesday. a lot of pieces written this morning on how it happened, what sort of economic forces led donald trump to lead. but the question we've been asking is what happens to the republican party? who do they get behind? >> yeah, democracy with a small "d." looks like people that vote, we sort of saw who they were getting behind yesterday. i think it's telling that the alternative to mr. trump is ted cruz. if you told me that a year ago, i don't know if i would have believed that. it's amazing. wilfred's new in this country, i guess. >> we just did this, yeah. >> i know you did. wilfred, did you know that cable
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vision -- i mean, why not hold up "mad" magazine? did you know that cable vision was actually going to bid for the entire company, for "the daily news"? they bid a dollar for it, for the entire company, back before march. in the second round of the auction, they couldn't justify paying a dollar for "the daily news." that was just too much money. so the whole paper didn't sell for less than what one paper costs. if you had a dollar and a quarter, you could probably buy the whole company. >> maybe i will. i'd have my own newspaper. not sure i'd still be allowed to be on broadcast television. >> you've got some papers over there that rival -- they had no problem -- they didn't talk about anyone migrating when de blasio was elected, which i thought was a little -- but i don't know. that's just me.
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we have john kasich on later. we'll talk to governor kasich, see what his game plan is at this point. i guess he'd have to start -- you know, if the alternative to trump is cruz, it's hard to imagine they're going to move to the other way, something so moderate. the democratic party -- he may be bet eveter over there. >> joe, great stuff. all that and more coming up on "squawk box." joe, thanks for joining us. >> the other top story, of course s the markets after that strong rally on wall street yesterday. futures giving a little back, not much though. can we hold the gains? the chief global investment strategist at charles schwab joins us now. good to see you, jeff. the financials and the tech stocks leading the charge yesterday. what does it say about the sustainability of it? can it last? is this for real? >> well, what it tells us is the central banks can't screw this
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up. look, they might, but we hope they don't. here's the thing. financials did lead this rally back from the lows on february 11th. that's important. they were the most beaten down sector. wasn't energy. it was financials. that's because of the concern of negative interest rates and maybe no rate hikes in the u.s. what that meant for banks and their income statements. since then, the idea that february might hike rates. it's amazing. i was looking at the expectations in the futures market for what the fed might do. that went from a 4% probability of a rate hike june to 40 over the last few weeks. amazing how that's turned around. >> i would add that now it's a 65% chance in december that they'll raise rates, which is the first time it's gone above 50. a month ago, that was a 12% chance. >> so critical. this is a key relief for the banks. the fact they might actually make a little money on deposits as opposed to losing it. rememb remember, in so many parts of
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the world, 30% of the msci world index, those companies are domiciled in countries with negative interest rates. this has been a problem for the financials. looks like they may get some relief, not just from the fed, but as we come up on the ecb meeting, the boj meeting, might they do more to insulate the banks from the negative consequences of negative interest rates. that's key to sustaining the rally. >> jeff, when you get up each morning and particularly given what events we've seen this year, what's your key indicator for how you expect equities to trade in the day ahead? is it oil prices? is it what the u.s. dollar is doing? is it the kind of risk-off gauge that the bonds and gold might give you? >> well, all of those are important to take a look at. they're currently part of what the market is most focused on. i would say looking at the chinese currency has probably been as good as anything, engaging whether stocks are going to go up or down on a given day. i think that's a separate issue that may drive one day or another. the longer term, what's interesting is what we didn't need to get this rally was better economic data.
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we got the pmis. they weren't great. they weren't even good. they were stable, maybe, is the best thing you could describe them as. i think that's interesting because what we had was a market that had priced in a global recession and was actually getting maybe stable, sluggish growth. that's a big difference there. we don't need essentially better economic data. we just need this idea we're not headed into an economic crash and currency and oil can give us some indication of that. >> jeff, we're going to have to leave it there. thank you for joining us this morning. less than a minute left. just to highlight some things we're watching. sara, i'm looking at the euro. i think what the u.s. dollar is doing is absolutely key at the moment. t the euro starting to slide as we approach that ecb meeting. >> which is painful for corporations. i'm watching the banks. that's been the doom indicator so far for the year. if they rally, as jeff said, we're not heading into recession and it's a good thing.
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>> well, good ones to watch. that's it for "worldwide exchange." another thing to watch, "squawk box" is coming up next.
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good morning. super tuesday wins from donald trump and hillary clinton, but the front runners failed to pull off a clean sweep. full results straight ahead. a market rally in asia following us. the stocks building on yesterday's 2% surge on wall street. it was march 1st. maybe march will be a good month. and oil prices falling after new data on u.s. stockpiles, but not too bad on our markets today. also, ex-chesapeake energy ceo aubrey mcclendon indicted. a pioneer of the u.s. shale boom charged with conspireing to rig bids. it's wednesday, the second day
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of march, 2016. "squawk box" begins right now. live from new york, where business never sleeps, this is "squawk box." good morning, everyone. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. we'll get to the super tuesday results in just a moment. first, let's take a quick check on the markets. in asia overnight, moody's downgrading its outlook on chinese government debt to negative from stable. the ratings agency cites uncertainty over economic reforms, rising government debt, and falling reserves. however, stocks there shrugging off that news, rallying on the back of yesterday's strong session on wall street. chinese equities turning in their best day in four months. the hang seng was up by 3%. the shanghai composite up by 4.25%. the nikkei also ended up by just over 4%. let's take a


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