tv Worldwide Exchange CNBC May 26, 2016 5:00am-6:01am EDT
good morning. >> new this morning. world leaders in japan kicking off a two day g7 summit. we'll talk about the key economic issues. >> and paypal peter thiel breaks his silence admitting he did finance. and you won't believe how long he's been plotting his revenge. it's may 26, 2016 and "worldwide exchange" begins right now. ♪ i love rock n roll ♪
♪ put another -- >> good morning. it's "worldwide exchange" on cnbc i'm sara eisen. >> and i'm wilfred frost. it's throwback thursday and it's go to karaoke songs. >> and we're holding some gains with a mixed picture. dow futures down 6.5. s&p down 1. nasdaq positive. it's been the outperformer it's up 2.5% for may. the chart to watch? brent crude oil. pushing above the psychologically important $50 a barrel mark for the first time. we're sitting just above there. just holding on. besee a half percent above wti. and brent. wti 49.84. >> and later in the show the fact that brent is above wti.
we'll get his perspective on how long it might hold this time. let's check knob global market this is morning. europe mixed. just lost a little steam in the last half hour or so. most of the markets are negative. not too pronounced. germany is positive. and spain is down because the banks are down significantly. banco popular had a rights issue and down about 20% weighing on the sector more generally. europe over the course of the last week very nicely positive. the stoxx 50 is up 4.7% the last week alone. a little bit of profit taking happening today as you can see. asia also similarly a bit of gains but not in all of the markets. as you can see we've got about a quarter of a percent for shanghai. japan basically flat. both in europe and in asia, energy and commodity related names doing well after this oil priced rally that sara has already mentioned. >> broader market picture across
bonds. the 10 year treasury note yield has been making moves higher but really still stuck in that 180 range. the two year really has been the plooufr on expectation of interest rates in the near term. the 2 year treasury note yield at 1%. we'll see if we can cross that threshold if the data continue to improve. if for u.s. dollar. it's also making a move higher an back of better expectations. the euro still below 112. overall weaker in the last week. few weeks or so, stronger dollar. interesting to watch the dollar yen reverse todadollar/yen reve. the euro is particularly good
one to watch. and it has been pronounced. 4.7% of gains for the stoxx 50 in one week. >> and he resilient u.s. stocks have been. the thinking is we're not at strong dollar levels twhae saw the end of last year. >> we're still weaker year over year. the outlook still should be brighter for corporate profits or it is already just priced in. >> we're very unsure about which way markets are going to go off the back of that. positive u.s. equities. positive u.s. dollar. positive oil price and really a great cocktail for the markets ads the moment. >> the question is this sort of a leg up? a correction? a short squeeze before another leg higher? or is this for real? is this a sustainable rally?
we can deal with the fed hiking and a lot stgs strategists is going to say depends on the data. don't fear the --. it's been scared of interest rate hikings and scared the qe is going to go away. but if everything improves maybe the market will be okay with it. in terms of what to focus on today let's have a look. a trio of economic reports. weekly jobless games. durable goods. demand for big ticket items. aircraft to construction equipment is expected to have held steady last month. 10:00 a.m., april pending home sales. bullard and powell are speaking today. in terms of earns.
dollar general, dollar tree and abercrombie & fitch. >> shares of takata surging after the u.s. private equity group kkr reportedly taking a 60% stake in the company to haep it restructure. as they face billion in cost due to the recall of its faulty parts. >> 20% jump but even on a year to date chart it was the tiniest little blip of improvement. >> hp, inc. reporting better than expected second quarter profits as cost cutting offset a drop in revenue amid weak demand for pcs and computers. not turning in quite the performance that hp enterprise did the day before. costco's third quarter profit beat forecast but revenues
missed. the operator reporting flat same store sales for the first time in six years. analysts say a pull back in spending by high income consumers do w.h.o. do make up costco's core customer base led to weaker sales in april. stock is flat. moving lower the past few weeks. pch is reporting better than expected first quarter results. the ceo says he's pleased with the results despite what's been a tough retail environment. he spoke with our very own jim cramer last night. here is a snippet. >> here dealing with some issues -- so in the mall you are talking about. >> this is the mall and our own retail stores here. we're feeling the pressure, particularly from international consumers not traveling to the united states. >> right. the strong dollar. >> some of our fastest growing businesses are the dotcom
business. our macy's dotcom business is on fire. so it is critical with given our brands the nature of those brands and how they resonate with the consumer we need to be where the consumer shops and that is what we do. >> there's been such a discrepancy among retail winners and losers this season. that on the same day where tiffany posted a sharp decline in results. lowered its guidance. jim mentioned strong u.s. dollar and spending impact. the mall pain. it has been such a huge divergence. >> has the best indicator of the retail sector. but tech as well. lots of sector has a divergence over the months. more stocks to watch. lions gate better than expected fourth quarter numbers. strong results from tv operations. including "orange is the new black." during the quarter the studio released the divergent series "allegiance "and requested gods of egypt."
up 14% this morning. guess did something. the cloelting retailer is also -- full year outlook. down is% this morning. williams sonoma fell 12% but still beat forecasts. same store sales rising 4.5% led by a 19% increase at its west -- >> did you buy more furniture. >> i did buy. west elm was great. >> abercrombie & fitch reporting first quarter results before the bell. land dowdy joins was more on what to expect. >> definitely a stock to watch. wait till you see the chart. the street is looking for 710 million in revenue and loss of 51 cents a share. beyond the numbers. mere are three things to watch. shares rose 21% in march but the
stock dropped more than 15% in april. and second, consumer preferences. watch to see how badly abercrombie might be heard by the drop in u.s. mall traffic. abercrombie's ability to control inventory should mean less stuff and better operating margins d aand more stuff. >> it is interesting this is a company without a ceo. >> since 2014. >> mike jeffrey stepped down. >> this is the third year in a row burger chain has had to ask
a workers to stay home for the day as pushing for $15 hourly wages and rights to form a union. >> starbuck's new location will be in shanghai china in 2017. this is the roastry concept. fancy store. howard schultz will be on 3:00 p.m. eastern to discuss the move. he's been very bullish on china. he came out during the early part of the year when investors were all worried about the china growth story. and he said we're in it for the long-term. echoing tim cook and mike parker of nike and so many others. >> i like the destination stores as well. roastrery. peter thiel confirming he financed hulk hogan's trial.
thiel decided nearly a decade ago that was going to set a plan in motion to fight back against gawker. this after gawker's blog targeted thiel in an article that he describes as bullying. >> u.s. foods the second largest ipo this year. near the top end of the expected range 23 bucks. kkr and clayton and rice bought u.s. foods in 2007 for --. shay shares trade today under the ticker usfd. could it be a sign that the market is opening back up? we're seeing some big m&a this. >> the m&a dill still hasn't happen. >> you're talking about bayer
monosanto. man sanity monosanity the brexit referendum is one month away. world leaders are discussing the potential impact of a uk exit and of course much must have more. >> before we head to break it was on this day in 1896 that charles dow published the first edition of the dow jones industrial average. of that dozen, only general electric remains in the dow today. >> a great little stat. >> look at that. how much we've changed. real is making new friends. amazing is getting this close. real is an animal rescue. m there is only one place where real and amazing live.
seaworld. real. amazing todd spaletto, president of the north face, we are working on the prototype to match customers to gear. watson, let's give it a try. say it's mid-june and i'm backpacking in yosemite. of our 353 jackets, i can recommend nine. watson, what if it rains? there is just a 3% chance of rain, so i recommend the breathable stretch fleece fuse form dolomiti jacket. a perfect choice watson. no wonder our customer loyalty numbers keep climbing. i believe we can do even better. i like the way you think.
the annual group of g7 summits kicking off today. akiko fujita joins us live with what world leaders will be discussing. >> good morning. well, prime minister abe, the most himself is making headlines on the first day of the summit coming out and saying in the first session he's warning of another lehman-like event in the economy. specifically citing emerging markets and commodity prices are levels not seen since the crisis in 2008. saying commodity prices have dropped 55% since 2014 which he says is the same as the 55% drop
right before the lehman collapse so that certainly making head lines on this first day but of course the global economy, the big topic of discussion here among the g7 leaders specifically on china. not just about the economic slowdown there and what kind of effect that could have on larger economies but also at it relates to the geopolitical risk and the territorial dispute in the south china sea. china of course lost in a tense debate with six other asian countries. g7 foreign minister have already released their own statement condemning coercive and unilateral actions. and while the u.n. has replain on the side lines, president obama did discuss it in a joint meeting with president abe yesterday. >> we would very much like to see a peaceful resolution of
those disputes. what's preventing that from happening is not anything that we're doing. so it is entirely within china's power to resolve those disputes. and our goal with respect to our own interests in the souchth cha sea is simply to maintain, freedom of navigation, freedom of flight and international rules and norms because we think that benefits everybody, including china. >> on the economic front, china and the dumping of surplus steel a key issue on the agenda. the prime minister david cameron leading the way. along with other european leaders looking for some kind of commitment to padditional pressure on china. g7 leaders have drafted a preliminary statement to look for eliminating subsidies and support. there is concern that could lead to retaliation from china.
the focus shifts to hiroshima tomorrow with the president's visit. >> akiko fujita reporting live. >> it is just four weeks now until the biggest vote really in a generation in the uk. of course the upcoming eu referendum. the latest polls have the remain camp ir firmly in the lead. indeed they have extended that lead over the last few weeks. we have polls coming up in a moment. what does that mean for the markets? so 46% to 40% and what does it mean for markets? sterling has rallied in line with the main momentum building. pound against the dollars close to highs since the reformedem
back in february.erendum back in february. the ftsi 100 is not really a good gauge but the 250, which it is next biggest 250 companies after the first 100 gives a better indication of pure uk economy-related trading. it too has been strong. up 3% other one week and 13.5% from the february lows. what could mean that this vote won't go to plan? a couple of factors to watch for that could mean the polls are getting it wrong at the moment. the first is turnout. turnout a big swing factor. because most of the people wanting to vote to exit will definitely turn out to vote. whereas people wonder how high the turnout will be amongst the remain voters. online it is much closer. on the telephone polls the remain vote is doing very well. project fear is referred to as what the government is doing to
scare the people in the economic argument. how much are people really believing those forecasts and the secret brexit here. very much like the secret trump voter. are a lot of people in fact going to vote for an exit although they don't talk about it publicly, although they don't talked about it when polled. those are the laltest forecasts. four weeks until that vote.test. four weeks until that vote. >> do you know what i watch? sterling. at the highest level in weeks. the betting is that they will stay in. wilfred much more on that i know coming up. also today's top political stories, including a staff shake up in the trump camp. and before we head to break today's national weather forecast from the weather channel's paul goodlow zplo a look at your forecast across the nation. the warmth is finally across the northeast. 89 in norbgs. 87 in atlanta. also thunderstorms heading on to chicago and for you another
arve, another even, at night, severe weather including tornados here, stretching from texas all the way up across iowa and nebraska. the west coast holds clouds for seattle and l.a. starting to warm up into the weekend. 71 degrees. a few scattered high elevation showers and thunderstorms. stick around, "worldwide exchange" continues after the break josh, don't you have friends coming over?
yeah, so? it stinks in here. you've got to wash this whole room are you kidding? wash it? let's wash it with febreze. for all the things you can't wash, use febreze... ...fabric refresher whoa hey mrs. walker inhales hey, it smells nice in here and try pluggable febreze, with up to 4 times the freshness... ...in one refill. pluggable febreze and fabric refresher... [inhale + exhale mnemonic] ...two more ways to breathe happy
welcome back to "worldwide exchange." now to u.s. politics. more protests at trump events and maybe a debate in california. hillary clinton says no but trump says yes. tracie potts joins us live. >> first it is unusual to have a democrat and a republican debate each other before they are even nominated before the general election but it looks like it is possible that could happen. but today we are going to start with those protests that you mentioned in this case for and against donald trump. >> feel the bern. >> feel the bern. >> reporter: police many riot gear clash for a second day in a row in a trump rally. this one in california. trump made news overnight when late night news jimmy kimmel asked if he'd debate bernie sanders. >> i would love do that? >> erm earlier this morning sanders replied on twitter game on. >> if we come out with the
democratic nomination, donald trump is toast. >> reporter: hillary clinton already said no to a california debate with sanders. she's trying to convince voters trump won't get along with congress or world leaders. >> i keep reaming him this is not a reality tv show you. can't say if you disagree with him you're fired. >> reporter: trump and paul ryan spoke by phone wednesday. multiple reports suggest ryan may endorse trump today. no endorsement from suzanna martinez. trump accused her of not doing her job. she won't say if she'll vote for him. >> i can tell you one thing item not going vote for hillary clinton. >> reporter: clinton already responding in an interview on univision saying the report is the same old story and saying she doesn't think it is really going to hurt her in a general election. >> thank you very much for that.
sosa ra it continues. >> and donald trump has sara it >> and donald trump has --. rick riley and field staff long before he was actually hired. reuters reporting trump told staffers before a rally he should be fired br miss handling a the fundraising deal with the republican national committee. >> still o come on "worldwide exchange," this mornings top stories plus a deeper dive into energy prices, brent rallying to a key psychological 50 buck level. what that could mean to the day ahead. stay tuned you are watching cnbc, first in business worldwide. ♪ don't you ♪ don't you ♪ oh you had this is lulu, our newest dog. mom didn't want another dog.
she said it's too much work. lulu's hair just floats. uhh help me! (doorbell) mom, check this out. wow. swiffer sweeper, and dusters. this is what i'm talking about. look at that. sticks to this better than it sticks to lulu. that's your hair lulu! mom, can we have another dog? (laughing) trap and lock up to 4x more dirt, dust and hair than the store brand stop cleaning. start swiffer ing looktry align probiotic.our digestive system? for a non-stop, sweet treat goodness, hold on to your tiara kind of day. live 24/7. with 24/7 digestive support. try align, the #1 ge recommended probiotic.
welcome back to "worldwide exchange." president obama is in ise-shima japan attending the g7 meeting of leaders taking questions from reporters. let's listen. >> it is something that all of us have had to deal with. in one way or another. obviously it is not as prominent in our thinking as it was in the cold war when our parents were
huddling under desks in frequent drills but the backdrop of a nuclear event remains something that i think presses on the back of our imaginations. i do think that part of the reason i'm going is because i want to once again underscore the very real risks that are out there. and the sense of urgency that we all should have. so it is not only a reminder of the terrible toll of world war ii and the death of innocence across continents but it is also to remind ourselves that the job is not done. and reducing conflict, building institutions of peace and reduce ing the prospect of nuclear war
in the future. in some ways we've seen real progress over the last several years. the iran nuclear deal is a big piece of business. because without us having to fire a shot, we were able to persuade a big, sophisticated country that had a well-developed nuclear program not to develop nuclear weapons. the star two treaty that i negotiated the first couple years in office with the russians has reduced nuclear stock piles. the nuclear summit and all the work we've done on that score has made it less likely that nuclear materials fall into the hands of terrorists or non-state actors. and although we have not seen the kind of progress i would have like to seen with respect
to north korea. what we have been able to do is mobilize the -- so their proliferation activities are scrutinized more carefully and they have far fewer country that are, you know, tolerant of potential actions by north korea outside of their own program. having said that north korea is a big worry for all of us. they are not at the point right now where they can effectively hit u.s. targets, but each time that they test, even if those tests fail, they learn something. and it is clear that idealogically they are still convinced that -- and kim jong
un in particular seems to be convinced that his own legitimacy is tied up with developing nuclear weapons. you pointed out the continuing tensions that exist in south asia. that is still a concern. and we know that terrorist organizations would have no compunction about using a weapon of mass destruction if they got their hands on it. so we've got a lot of work to do. i think we've got built up an architecture during course of my presidency that's made a difference, that's focused attention on key points of vulnerability. but we are not where we need to be yet. and obviously we haven't achieved all of the goals that i set when i spoke in prague at the beginning of my presidency. of course i noted at the time that i didn't expect to be able to achieve all of those goals during the course of my presidency or even in my lifetime. and this is going to be an
ongoing task. but it is one that i think we have to be paying a lot of attention to. >> -- called north korean nuclear program the biggest threat in the world right now the gravest threat. do you agree with that? do you see this nuclear program as the worst thing gong going on? >> well it is not the thing necessarily that poses the most immediate risk. obviously, isil, using rifles and crude bombs can kill a lot of people in a paris or a brussels. and people are rightly insistent that the world community stamp out isil. so there is a reason why we are focused on that.
but this is not a situation where we can afford to just focus on the short-term. over the long-term when you have such an unstable regime that is so isolated, that general flouts international norms and rules more than perhaps any other nation on earth, that is also devoting enormous national resources, hell bent on getting nuclear weapons that they can fire long distances. that pose s the kind of medium term threat we have to pay a lot of attention to and ie assure you it's something my administration has paid a lot of attention to. it's something that's been at the center of the trilateral work that we've done with our close allies in the region.
it is something that we've put at the center of our discussions and negotiations with china. and as i said before what we've seen actually is improved responses from countries like china. countries in the region like vietnam and burma taking these issues much more seriously because of our engagement. and so that may reduce the risks of north korea selling weapons or fissile material to other countries or mutting it out on the black market. but it does not, so far at least, solve the core problem of north korea containing its program. and we're going to have to work in a concerted way. in the meantime i've been working with the pentagon for several years now on making sure
that we can develop the kinds of defense architecture that can protect the united states and our allies from an unexpected escalation. carol. >> can you give us a sense of conversations that you have had so far, what they are saying to you, you do them, particularly now that donald trump is the nominee and he recently said that japan should pay for the u.s. troop presence there. but also on the democratic side, what they are saying about that and what you think about that. because it is obviously continuing to be divisive with bernie sanders saying he would take it to the convention and he's endorsed your democratic party chair, her primary opponent. have you changed course?
have you decided you are not going to get involved until one of them concedes to the other? >> well look, the world pays attention to the u.s. elections. they pay more attention to our elections sometimes than we pay to theirs. because the united states is, as i've said before, at the heart of the international order. and even those countries that are critical of us. even those countries that complain or question, particular policy decisions that we make, know that ultimately things don't hold together so well if the united states is not making good decisions. and count on us to provide a certain level of stability and direction in meeting global
challenges. they are paying very close attention to this election. i think it is fair to say that they are surprised by the republican nominee. they are not sure how seriously to take some of his pronouncements. but they are rattled by them. and for good reason because a lot of the proposals that he's made display either ignorance of world affairs or a cavalier attitude or an interest in getting tweets and headlines instead of actually thinking through what it is that is required to keep america safe and secure and prosperous and what's required to keep the world an an even keel. where with respect to the democratic primary process, as
i've said before, it's been my view to let this play out. let people make up their minds. and during primaries people get a little grumpy with each other. it is just the nature of the process. you start off and everybody is thinking oh this is fine. this is going to be a friendly competition. we're going to debate ideas and somebody says one thing and then another person says another thing and that felt a little sharper than i expected. and, you know, a supporter pops off and, you know, there is a certain build up of aggravation. we saw that in my lengthy primary in 2008.
and what i think is really important to remember is unlikely what you have seen in the democratic -- the republican primary, for the most part there is not that big a difference in idealogically in terms of the issues. both hillary and bernie believe that every american should have healthcare. both of them think that we've got to make college more affordable. both of them believe that it is important for us to have a tax system that is fair and that we should be closing corporate loopholes in order to pay for things like infrastructure investment and early childhood education. and when you put their proposals side by side, they are all pointing in the same direction. and the differences are primarily tactical. they have to do with how do you get some of this stuff done.
that doesn't mean those aren't serious questions to ask. and debate. it does mean though that once the primary process is resolved, the ability for us to pull together around a common vision that is in sharp contrast to the vision that is being offered on the other side, i think is one that will get done by the time of the convention. i would urge, and have urged, both sides to try to stick to the issues. because a lot of that grumppyness arises where folks feel that we are not talking about an issue but personalities and character. and they are both good people. i know them both well. and i think that it is important for us to try to end this in a
way that leaves both sides feeling proud of what they have done. and both sides have run serious competitive races and debated issues in a serious way. so i'm sure that carol as you know -- i sure know because i've been through this a bunch of times -- there is just a natural impulse when you are having to report every day on campaigns that every little blip, speed bump, conflict, trash talking that takes place is elevated. not to mention polls. and the one thing i've learned after being around for a while is that kind of day to day
chopness is not indicative of longer term trends.piness is no longer term trends. i feel confident about our democratic vision for the country and feel confident on the ability to deliver on the issues for the american people and what they care about. >> -- harder to defeat mr. trump? >> no. look, would it be nice if everybody was immediately unified and singing kumbaya and whoever the nominee ended up being could just take a nice two week vacation and recharge? absolutely. i guarantee you that the eventual nominee sure wishes it was over now. because this is a grind. it is hard. and in some ways one of the things i've always found is that it is a lot more draining arguing against your friends than it is arguing against your
political opponents. you know, it just -- it weighs on you more. being criticized by folks who are in your own party always hurts just a little bit more. and so, you know, it -- it takes a little energy out of you. but, you know, these folks who have serious about trying to solve the country's problems. they are both veterans of the political grind. and -- and so they are going to hold up. and by the time we get to the convention i'm confident they will be in good shape. as a special bonus i'm going to take one more question. go ahead. >> thank you mr. president. you mentioned some tactical differences between the two democratic candidates. but when you hear bernie sanders
speak it seems like he's talking more about the issue of trustability and the need for political revolution and just yesterday we saw the state department's inspector general put out a report about secretary clinton's e-mails and it basically undermines some of what she said about her e-mail practices. i'm wondering if you think that undermines her trust worthiness with the american people and if you agree with bernie sanders that she should release the transcripts of her highly paid speeches to wall street. >> okay. you know what i take it back. i'm not taking -- [ laughter ] -- we're in japan. don't we have something in asia to talk about. i'll be talking about this in washington the whole time. look, i've already said a lot about those issues. i think those are better directed to the campaign. as i said before, during the course of a primary people say what they think might help them
get some votes. and, you know, once the campaigns over, then they move on. and they make an assessment in terms of how they can make sure that the vision that they care most deeply about has the best chance of passing congress and getting signed by a president and that supreme court nominees are confirmed and all the things that make for a functioning, effective government. so, you know, i think that the noise that is going on back and forth between the candidates at this point, if you want insights into how they are thinking about it, those should be directed to them. i'll take -- >> -- china. >> you have already had a question. if i'm going i think it's fair
to. >> can i ask your thinking on the new taliban leader and how that effects prospects for peace in the region? >> well i was saying to my team, i wasn't expecting a liberal democrat to be the newly appointed leader of the taliban. so -- this continues to be an organization that sees violence as a strategy for obtaining its goals and moving its agenda forward in afghanistan. we have a democratically elected government in afghanistan that we are supporting. and our goal right now is to make sure that that constitution and that democratic process is upheld. not to mention that we're able to maintain the counterterrorism platforms we need in that region so that al qaeda and now isil
are not able to take root and use that as basis to attack us in the united states. my hope, although not my expectation, is that there comes a point at which the taliban recognizes they are not going simply be able to overrun the country. and that what they need to be doing is to enter into serious reconciliation talks that are led by afghans. and i think if that happens that is something the united states and other leaders in the community would support. but i'm doubtful that that will be happening any time soon. and we'll have to wait and see how those things develop. in the short-term we anticipate that the taliban will continue to pursue an agenda of violence and -- and blowing up innocent
people. and the kinds of actions that have characterized their -- their approach over the last 15, 20 years. but i do think that there will come a point, perhaps not this year, next year. but eventually. where, there are those within the community that surrounds the taliban, at least, that recognize their goals are best achieved by negotiations. okay. >> -- [inaudible]. what you do make of that. >> is that embarrassing that they couldn't. >> -- >> to me or? >> yeah. >> why is it embarrassing to me. >> because you invited these
people, didn't show up -- >> i wasn't the one who held them up. look. i was very blunt with the vietnamese government. there is so much good going on in that country. and what i indicated to them is that these kinds of heavy-handed actions end up being entirely counterproductive. and the folks we invited, including those there were are people that are prepared to have a constructive conversation with the government about how to advance peace and prosperity and economic development and environmental security ain that country. and, you know, my general message as you heard at the youth town hall meeting is harness that talent.
let them loose, to create start ups and to solve problems. and engage them. it is the same message i had with cuba. it is the same message that i had with a wide range of countries. where, you still are seeing serious problems with human rights. the bun thing i'm absolutely convinced of thoughone thing i' convinced of though is by us engaging, meeting with activists helps move the ball, moves the needle. it doesn't solve the problems immediately. but right now burma, myanmar is under going this transformation in part because of the process
that we helped to spear head. they are going through revolutionary changes over the last several years. but i guarantee you that there are still some human rights activists inside purr burma and myanmar who are being harassed, are not able to speak freely. are not able to assemble the way we would expect them to be able to do. in our own country. you know, when i went to cuba and i met with those disdidn'ts. one of the dissidents still has marks from his handcuffs from the day before. i didn't come out of that meeting thinking the problems of human rights in cuba are solved. but whether i'm but us meeting
with them. but us hearing their stories we do think there are certain universal values that we care deeply about and that we're going to stand with. that that helps. and that i think is the biggest lesson over the years is we've been engaging countries with human rights problems. the expectations that i think sometimes we've had, that if we just stand back and scold, that somehow that is going to change these internal dynamics has proven to be less effective than us engaging.
indicating to governments that we are prepared to work with them but they need to make progress and continually trying to lift up the actions of these civil society leaders. in a way that provides them a little bit more space. and that space slowly grows. and and, you know, it ends up being a process. and it is not always a process that travels in a straight line. sometimes you take two steps forward. you take a step back. sometimes you start seeing openings in some of these societies. and then governments get nervous. and they clamp back down. but that steady pressure combined with an appreciation of the history of these countries,
combined with a willingness to listen. combined with an ability to mobilize the international community so that we are not thinking that we are doing this all by ourselves. over time we've seen results. more modest than i would hope. but that is true of pretty much everything about foreign policy and domestic policy. and the human condition. all right. okay guy, i gave you a couple. i already gave you bonuses. i gave a bunch of bonuses. thank you guys. see ya. that was president obama in ise-shima japan at the g7 summit.
some international comments but the majority on the u.s. election. he did say that the world pays attention to u.s. election and said world leaders were quite surprised and rattled by trump who he described as cavalier. >> he said for good reason and they are wondering how seriously to take some of his statements and also spoke about north korea. he was asked whether it was the top threat. he said it is not the most immediate risk and then went on to talk about isil and of course the risk of terrorism and what's been happening recently in europe. he also talked about the democrats, interestingly. he said i know them both. they are both good people. so talking up bernie sanders more than usual. >> he said it is important to try and end in a way that leaves both sides feeling proud and he expressed that he understood how they would be feeling right now because of course he went through his own primary counties. and he says during primaries
people get grumpy and of course referring to the clashes going on between sanders and trump. should we take a quick look at futures before we pass onto the "squawk box" team. futures pointing higher to the stake. not significantly. up is 11 points from the dow. and all three indices nicely in positive territory for the month of may after two strong days. >> especially the nasdaq up 2.5% for the month. it is a such a turnaround. sentiment is really lifted. whether the price of oil with brent above $50 per barrel, u.s. new home sales data that came out earlier this week. the idea that maybe the second quarter is looking up. as far as u.s. data. a lot of focus on janet yellen. >> j. yell. >> j yell as we've nick named here. >> the dwrurpen markets are mixed today.
but up some 4% in the last week. european equities so that is a market to keep your eye on. for all you need though about the u.s. trading day, time to hand things over to the "squawk box" team who are ready to pick things up in new york. >> welcome to joc"squawk box" h on cnbc. i'm becky quick and one more look at the u.s. equity futures. a at this point after the big gains in the markets yesterday, the s&p 50000 the nasdaq and now the dow jones industrial average are all on track for a positive month of may. a big turn. we've seen decent rallies this week. you can see the green arrows once again in the dow futures up 12.5. the european equities you can see green arrows through at least the major bourses. the dax up about a third of a percent. markets in italy and spain are both lower. check out what happened overnight in japan. you are