tv Worldwide Exchange CNBC June 3, 2016 5:00am-6:01am EDT
good morning. it is jobs friday. will the u.s. employment picture be what pushes the fed over the top on a rate hike decision? the arguments straight ahead. >> should they stay or should they go? uk prime minister david cameron fields questions from a fiery live tv audience, including being accused of scare amongering. his comments coming up. the warriors win game one of the nba finals. it goes to golden state. if you went to bed early, we'll bring you the highlights shortly. it is friday, june 3rd, 2016. "worldwide exchange" begins right now.
>> very good morning and warm welcome to you on "worldwide exchange" kicking off now on cnbc. i'm wilfred frost with kayla sitting in for sara. good morning. >> i like that you're playing the weekend music. gets you in the mood. >> even though it is 5:00 a.m. it is basically the weekend. let's see what the markets are doing now. u.s. equities open lower, gained traction throughout the day. finished about a quarter of 1% higher. this morning, pretty much bang on flat in the premarket, s&p slightly in red, treading water ahead of the jobs number which comes later today. all eyes on that and the implications for what it means for possible fed rate hikes. let's look at the ten-year note, what is the bond market doing this morning. we're bang on 108. we just have come down on the yield. seen a little bond buying during the course of the week, close to 1.9% earlier in the week, now at
1.8%. everything rests on today's big market story, the u.s. employment report, forecasters say the economy likely added 158,000 jobs last month, but worth noting that a government report last week predicted the verizon strike could cut more than 35,000 jobs from that payroll number. the unemployment rate seen holding steady at 5%, average hourly earnings expected to rise by .2%. >> the next fed meeting for june 14th and 15th. a small chance of a rate hike at that gathering, but the cme group's fed watch program tells us the markets are now pricing in a roughly 59% probability of a move at the july fomc meeting. speaking of the central bank, the fed says chair janet yellen will attend this year's jackson hole conference in late august. the annual gathering is hosted by the kansas city fed. you might remember yellen skipped the event last summer. >> it was much talked about. >> it was indeed.
>> chicago fed president charles evans says there could be two rate hikes this year if u.s. economic data continues to be favorable. but in an interview with cnbc in london, he says the timing of those moves isn't that critical. >> two rate hikes in 2016, that's my own call for that, if the data continues to be in line with my outlook. that's a slow and gradual increase this year. >> slow and gradual. but asked whether the uk's brexit vote would have any bearing on a fed hike this month, evans says he's not sure it plays an important role in policymaking beyond monitoring overall global financial conditions. >> it is a couple of days afterwards, of course, from the next meeting or a week afterwards. so still begs the question, would they go -- can they wait one month extra. >> six weeks in between meetings when you're at 25 basis points, how much does it really matter. >> exactly. >> let's check on global markets this morning. we're seeing positive action in
europe, despite italy being close to the flat line, just turned a shade positive right there. >> we have that many decimal places for people to know. >> i think we should say flat at that point. the attention has turned from the ecb yesterday and opec to what will happen in just a few hours time, in that jobs report. let's look at asia as well. china faring very well, despite being down last week. china set for its best week in three months. and japan is up by about half a percent as well. hong kong is up as well. >> indeed, japan up, despite a stronger yen. but slightly misleading in the fact that fast retailing, the consumer company, which was at 8% wait in the nikkei is up 7% after its brand uniglo posted good results. that's hiding the truth of the nikkei move, but either way, a good finish for the week in arab
why and as asia. oil prices slipped a little. 49.21 for wti. let's look at the dollar as well. it is treading water today. wonderful. just keep an eye on the yen pairing in particular because the yen is at a two week high against the u.s. dollar. if the jobs number is strong, it applies a rate hike, we could see that reverse quite pronounced. we're looking at gold slightly higher, but soft over the last month. >> fifth straight weekly drop for gold, even despite a slight positive trade today. >> but that's because we have seen the u.s. dollar in may up about 3% and that's the weight on gold prices. gold, when it was going very well, couldn't get above the 1300 level for any sort of pronounced level of times. seems like it is very much
treading water, even when the factors are going for it and the dollar is going against it. >> we'll watch that against the jobs data. new numbers show investors pulled another $4.7 billion from stock funds in the latest week. lipper, which reports the data, says this marks the 12th straight week of cash withdrawals. but u.s.-based stocks etfs brought in $3.9 billion, the largest inflow since april. and lower risk money market funds, they attracted $7.7 billion in capital, that was the sixth straight week for money market funds to bring in new cash. >> mays with a rough month for pimco's total return fund. investors pulled another $1 billion from the fund after cash withdrawals of the same amount the previous month. it has now posted 37 straight months of outflows. in corporate news, facebook's board is looking to curb mark zuckerberg's majority voting control should he exit management in the future. in a proxy filing with the
s.e.c., facebook said it will ask share holders to vote on a proposal that would convert the founders class b shares into class a shares if he's no longer in a leadership position. the social network's board says it wants to make sure a future ceo's management powers are limited. the stock in the premarket is unchanged, but given he has so much control over the company, any leadership decision would fall to him. >> exactly. it is like, yeah, you can have a choice when i've decided i no longer want to have a choice. it doesn't help them if it ousts him when he wants to be leader. in other tech news, the new york post reports twitter met with yahoo! management several weeks ago to discuss a possible merger. the paper says ceo jack dorsey didn't attend and his company appeared more interested in getting information out of yahoo! than it was in doing a deal. second round bids are due early next week. verizon is still believed to be the front-runner. with twitter with a market
cap of $10 billion, that would be a pretty sizable deal, bet the ranch type of deal for that company. we'll see how that happens when the bids come in next week. apple says all its services including its app store have now resumed following an outage yesterday. a company spokeswoman declined to comment on the nature of the outage, but for many apple users, very glad that's back online. let's move on, in media news, doctor says sumner red stone has the mental capacity to make decisions about his trust. they are suing so reverse the removal from the trust. united and delta are among the possible bidders for avianca. advisers circulated a document seeking a $500 million capital
injection. but the process could develop into a full sale. they serve more than 100 destinations in 26 countries, went public in 2011, and has a market cap of just about $600 million. that capital infusion considering its market cap would be sizable. >> quite a big move, no doubt about it. citigroup ceo is signaling the bank second quarter net income will be 25% lower than a year ago's results. speaking on thursday, they expect profit to be flat with the first quarter. citi reported profit of $3.5 billion, about 25% less than the $4.65 billion it posted on adjusted basis in the first quarter of last year. citi will report second quarter numbers on july 15th. i can't believe we're approaching the start of the next quarter slightly even though we're still finishing first quarter earnings. >> yeah. it will come very quickly. other stocks to watch today, gap saying same store sales fell 6% in may, declines happened across all three of its brands.
gap, old navy and banana republic. but the retailer says performance improved leading up to the memorial day holiday weekend. that could have a positive impact on june's results despite that news and extended trading, gap shares up 5%. broadcom reporting a second quarter loss, the chipmaker's adjusted results beat forecasts. this is the first since avango technologies completed the $37 billion takeover and rebranding at broadcom. the company offering a rosy outlook. bp agreed to pay $175 million to settle a class action lawsuit filed by shareholders. they accuse the company of understating the severity of the oil spill in the gulf of mexico in 2010. bp says the claims will be paid over the next two years, but the settlement doesn't revolve other securities related litigation. stock appears to be unchanged in
the market. that's yesterday's close. more stocks to watch, ambarel ambarella will continue to suffer from supply chain problems. but they did beat analyst forecasts jumping 9%. five below, same store sales rising nearly 8%, topping analysts forecasts. the team retailer sees second quarter results in line with estimates. the cooper companies is raising its four year outlook after beating forecasts with the second quarter results benef benefiting from strong sales of contact lenses. up 3% in the premarket. coming up on "worldwide exchange," david cameron fields brexit questions from a fiery live tv audience including being accused of scare mongering. the tense exchanges everyone is
talking about coming up next. first, twitter question this morning, very ably worded by kayla, what will be the most telling part of today's jobs report? the number of jobs added, unemployment rates, wages. the key question. get in touch. we'll bring you the results and much more discussion on "worldwide exchange." what are you doing? getting faster. huh? detecting threats faster, responding faster, recovering faster. when your security's built in not just bolted on, and you protect the data and not just the perimeter, you get faster. wow, speed kills. systems open to all, but closed to intruders. trusted by 8 of 10 of the world's largest banks. cathy's gotten used to the sme...in her kitchen rbage... yup, she's gone noseblind. she thinks it smells fine, but her guests smell this.
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welcome back to "worldwide exchange." if you're just waking up, let's get you up to speed on the market action. u.s. futures pretty much flat. yesterday, they opened down and steadied throughout the day to close up a quarter of a percent. right now we're treading water ahead of the crucial jobs report coming up. oil prices are down about a third of a percent for the week as a whole. we're just above flat today. no real movement off the back of the opec meeting yesterday. 49.2 for wti. it is a big day for economic data as we wrap up the trading week. it is all topped by the may jobs report. that hits at 8:30 a.m. eastern time. payrolls are forecast to rise by 158,000. unemployment expected to hold at 5% for the third straight month. also at 8:30, the april trade deficit and the may ism services index, april factory orders, that comes in at 10:00. lael brainerd is speaking,
that's taking place this afternoon. the weekend not starting quite yet. >> not quite. might be for some of us. david cameron faced a live grilling on sky news last night on the eu referendum. he maintained his core message that a vote to leave the eu would be damaging for the uk. >> if you want to get out of the single market, which is what the campaign wants to do, you will fundamentally damage our economy. that cannot be the right way of controlling immigration. it will make our economy smaller. it will cost jobs. we would be poorer as a country. >> he went on to say that renegotiating trade deals could take ten years. however, the prime minister was accused of scare mongering, hypocrisy and waffling as he faced members of the public in the audience during a closing 30 minute q&a and was accused of some dodging -- by some of dodging the key questions. he also admitted that at times the eu did annoy him. >> if you're saying to me are
there regulations in europe that annoy you, yes. are there things about europe that frustrate you? yes. are there prime minister who sits around the table with 27 heads of government and states and sometimes the organization drives me crazy. do i think britain would be better off if we left? are we quitters? do we think we quit the european union, we quit the single market and that somehow we will be better off? absolutely not. we would be outside the room, the european union doesn't stop existing just because we left, the channel doesn't get any wider if we decide to leave. a group of people will be sitting around a table making decisions about our biggest market, about the future of our continent, about things that affect us, and we would have our nose sort of pressed to the window trying to find out what decision they were making. >> under the same format with questions from the audience as well, the focus turns to the justice secretary michael gove, a lead member. getting a lot of headlines this morning because people kind of
thought he dodged the crucial questions and the audience seemed certainly angry too strong a word, but annoyed and put a lot of pressure on him and he kind of looked under pressure. >> the stakes are very high for this vote. i think many observers thought that by now given that it has been talked about for so long, the referendum date has been in place for so long, there would be some firming of a sense of which way it would go. the polls keep swapping places and people honestly don't know which way it is going to go. >> i think that's the key thing. the reason he's under pressure if this happens ten days ago, he would feel much less so. the polls having had two or three months of momentum behind the camp, his side of the bargain, the last ten days, four polls come out, which have shown the momentum going the other way. the ft poll of polls saying the current thing is 46, 43 lead. very close now. and the pressure is certainly on. >> and, of course, that's including a margin of error too. >> exactly. >> and turnout is going to be crucial swing factor. >> close. >> coming up, this morning's big
political stories including paul ryan he'll now support donald trump. >> here is today's national forecast from the weather channel's kelly cas. >> good morning. looks like the rain is now moving into the big cities of the northeast. new york city, philly, pretty good chance of seeing rain, maybe even hearing rumbles of thunder out there. overnight, into our weekend, unfortunately, looks pretty unsettled. we see scattered showers throughout the south as well. we're watching bonnie off the coast of north carolina. you can see the storms in miami as well. and poor texas. like we need any more rain here. we already have major surpluses, ground saturated, flash flood watches do continue and we're still watching a lot of rivers, creeks and streams running high, way out of their banks as a matter of fact. dry weather across the west, really the big story here will be the heat. it is on. we're talking excessive heat warnings in effect for places like phoenix, arizona, getting well up to the triple digits. even seattle and portland, temperatures near 80 degrees today. but over the weekend, we'll be
well up into the 90s in places like medford, oregon, possibly touching 100 degrees for the first time this season. otherwise, not too bad around the midwest, 82 for chicago. that's a look at your national weather. very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business.
even social sentiment in real time from hundreds of millions of people. it's all in the ibm cloud. if you combine that with the data your business already has- then things get interesting. so right now we're working with a retailer to blend social and inventory data to help predict demand. we can help a hotel chain match weather and local event data so they can adjust room prices from minute to minute. and another company we work with can apply analytics to sensor data to save millions in energy cost. today, every business runs on data. that's exactly why we built the ibm cloud. welcome back to "worldwide exchange." donald trump finally getting the nod from house speaker paul ryan. meanwhile, hillary clinton seems to be in general election mode as she takes trump to task. tracy potts has all the details
for us live from washington. >> good morning, everyone. the clear focus for all the candidates now seems to be california. they're all backing california today and we're seeing more protests there. it got rowdy again outside a donald trump rally in california. his supporters and one officer attacked, traffic blocked. a trump ball cap burned, and more unrest, all while trump celebrates a win. after weeks of conversations, paul ryan says he'll vote for the presumptive nominee because trump supports the republican agenda. >> donald trump is somebody i know is comfortable with these principles and these general policies. >> trump's focused on hillary clinton and her e-mails. >> folks, honestly, she's guilty as hell. >> clinton says she can't wait to debate trump on foreign policy. >> i mean, when somebody says that one of his main foreign policy credentials is that he took the miss universe pageant
to russia, i'm looking forward to that conversation. >> bernie sanders targeted by animal rights protesters hopes he's on the stage with trump. he's counting on california's young voter showsing up tuesday. >> show those pundits how wrong they are. >> now, for first time bernie sanders seems to be acknowledging publicly that of the six states that are voting on tuesday and there are six, not just california, that he may lose new jersey to hillary clinton. >> clinton, as you said, still seems to be very much more focused on trump than sanders. is she trying to ignore the ongoing momentum behind the sanders campaign as if it doesn't count? >> i think they're trying to downplay it certainly. she's made it clear that she has got to pick up support from the sanders people and if she's going to win this nomination, and they're now this close to the conventions in the summer, there is a risk for her going
after him in a very hard way. and risking alienating his supporters when at some point if he drops out, if he doesn't get the nomination, she will very quickly have to gain their support. >> great stuff. thank you very much for joining us this morning. let's switch focus to sports. the nba finals kicking off thursday night. the golden state warriors looking to repeat as champions. while the cleveland cavaliers try to deliver the first title in any pro sport since 1964. we head to the bay area for game one as steph curry and lebron james face off in a rematch of last year's finals. curry finds ig doll wuodala for dunk. lebron trying to bring back for the cavs, draining a three to cut the lead to 11. he finished with 23 points but curry puts the game out of reach. golden state takes the game 104-89. game two is set for sunday
night. all eyes on that. >> you don't normally see a triple digit score in the nba finals. >> i'm not even sure about that, but i'll take your word for it. i believe you. >> from the basketball court to the golf course, a safety reminder for all fans, pay attention to the flight of the ball. phil mickelson hits a wild tee shot on the 15th hole at the p&gp&ga tournament. it hits a spectator square in the head. phil walked up and joked, if your head was a touch softer, i would be in the fairway. gave him a signed glove with the inscription i'm so sorry. >> signed glove? can't be a bit more serious than that, a full set of golf clubs. >> pay his hospital bill. >> something like that. he looked fine, though, remarkable. >> probably pleasantly surprised with what he walked away with. celebrity news, calvin harris breaks silence after
headlines broeg of h s broke of with taylor swift. he says the only truth here is that a relationship came to an end and what remains is a huge amount of love and respect. taylor later retweeted the message on her own account. they were together for more than a year. coming up this morning's top stories including the big jobs report. we'll talk expectations with citi private bank's global chief investment strategist steven whiting. but first, what would be the most telling part of today's jobs report? the number of jobs, the unemployment rate or wages? let us know. "worldwide exchange" will be right back.
great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about.
i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. good morning. jobs friday. we'll talk expectations and market implications coming up. and the war for viacom, the doctor says sumner red stone has the mental capacity to make decisions about his trust. what could this mean for his media empire straight ahead. and this morning, groceries to your doorstep, a big test between walmart, uber and lyft. all the details coming up. it is june 3rd, 2016. you're watching "worldwide exchange" on cnbc. ♪ a very good friday morning. and warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost with kayla sitting in for sara.
let's get to the market action and look at u.s. features. the u.s. employment report, forecasters say the economy likely added 158,000 jobs last month. it is worth noting a government report last week predicted the verizon strike could cut more than 35,000 jobs from the payroll's number. the unemployment rate is seen holding steady at 5%. average hourly earnings expected to rise by .2%. >> let's gate cheet a check in global markets. we have seen some slight action in the futures market, the dow would open up by just about 1 point. s&p and the nasdaq marginally negative. the s&p futures positive earlier. so something to watch. in europe, it has been mostly flat, but slight shades of green there as well. of course, again, thin trading ahead of the jobs report. same story for asia.
best week in about a few months for the chinese market. hong kong, japan, also higher as well. >> right. and interesting as we said earlier, japan shrugging off a stronger yen today. positive ty in europe, not in too pronounced a fashion, but ahead of the jobs number. markets have been remarkably resilient to the prospect of a rate hike and all eyes on whether the implies there will be a hike or not. oil softer, down 3%. that's not too much to be worried about given the recent gains, and also that we had an opec meeting, 49.16, just below flat this morning. the ten year treasury note, a bit of bond buying this week, the yield has fallen a little bit, just below 1.8% this morning. as for the dollar, it is treading water today, nothing too pronounced happening. the aussie dollar moved up by half a percent. if we look at the euro and the
yen, no real movement. worth noting the yen is a two-week high against the u.s. dollar. if we got a strong print today, and hikes were back on the table, maybe we would see bait of yen softness off the back of that given the recent moves. gold prices, weak over the last month, given the dollar strength. and it is flat today at 1213. >> to talk about the market action ahead of the jobs report, steven whiting joins us now. good early morning to you. what do you expect in today's report? the fed seems like it's readily preparing itself for june. how much should we be looking at today as a signal? >> one thing to be clear on the headlines, the bureau of labor statistics already in its strike report noted the verizon strikers will be taken out, not at work during the survey period. the strike ended, they will come back in the following report. >> that's not baked into people's consensus numbers? >> i'm a little doubtful the entirety of that is in the consensus, the way the numbers
have been done previously. strike effects are not perfectly embedded. you can take yesterday's adp number, take 35,000, be in the ballpark, consensus may be high on that reading, but shouldn't be precise about this in any event. >> we have seen wall street adjust expectations. jpmorgan revised the number to 125,000, expecting some cooling off because of that verizon number. has the market been prepared for that? >> somewhat. and, look, the normal variability in this report is such, you know, that .1% is 130,000 workers. so we have been used to the reports being very predictable. this may not be the case with this one effect. but the bigger picture here will be underlying details, whether hours worked, wage compensation, the breadth of employment gains we have seen in the last six years, are sustained, and i think when you're asking earlier about the fed being prepared, i think that they will use this
press conference, chair janet yellen will use this press conference to prepare for a rate hike over the coming months. they can't predict the uk public, a vote to leave the european union. that would change things. high correlations around global markets would spike up. there would be a good deal of uncertainty and simply preparing to wait for the coming meeting, the one after if all the data shows some strength would be just as acceptable, i think from the longer run. >> how pleased will janet yellen be that markets have been resilient in the face of the last two or three weeks worth of talking about this. >> i think this is a pleasant surprise. you can see in both the march and april fomc minutes, the fed commented that polling back its own expectations, the fed's own perspective path of tightening had stabilized world financial markets, so by reintroducing
some near term risk of a rate hike and markets respond favorably. that's going to be a meaningful surprise for them, a positive surprise for them in terms of ability to move forward. >> what do you think in the market will be most important to watch today after the report, the dollar, treasury market, equities. >> i think it is obviously a lot of these things. and there is more to this employment report than helines. i hate to be the computer that tries to trade off of, you know, single headline in employment report. so i think we have a strike impact, an in tact economic recovery. you see this from the ism data, from the low level of unemployment insurance claims in the united states. you can see this from the distorted path of retail spending and gdp. what you saw on the first quarter, .8% after revisions, was almost exactly in line with the average of the last six years, subsequently followed by a number that averaged closer to 3. >> on u.s. equities, we saw the dollar bounce against the broad index 3% in may.
could equities hold up to a similar gain like that in the dollar in june or is that a one month bounce it can take but not further appreciation. >> if strong u.s. data is driving up some appreciation of the currency, if relatively high u.s. rates as low as they seem are driving in some savings inflows, and i think equities can hold up in the face of that, if this is about some funding crisis in the emerging world, where the u.s. dollar is creating great turmoil for others to pay their debts, then different story in terms of the impact of the exchange rate. >> steve, great stuff. thank you very much for joining us. steven whiting of citi private bank. in corporate news, a doctor says sumner redstone has the mental capacity to make decisions about his trust including removing viacom ceo philippe domand. they are suing to reverse the removal from the trust, they argue redstone is under undue
influence of his daughter sherry. in tech news, facebook's board is looking to curb mark zuckerberg's majority voting control. in a proxy filing with the s.e.c., they will vote on a proposal that will convert his class b shares to class a shares if he's no longer in a leadership position. they say it wants to make sure a future ceo's management powers are limited. citigroup ceo michael corvat is saying income will be 25% lower than a year ago results. he said he expects profit to be flat with the first quarter. citi reported profit of $3.5 billion, 25% less than the $4.65 billion it posted on adjusted basis in the first quarter of last year. citi will report second quarter numbers on july 15th. the expectation had been profit would go up when rates went up,
but long-term rates have been very peskily low and -- >> it is interesting on the banking sector as a whole it remains one of if not the worst s&p sector performance year to date when the results came in last quarter, much better than expected and more recently, of course, we got more expectations for further hikes and the banking stocks still suffering pretty badly. if we did get a hike, you would see them bounce significantly, i would think. >> good weeks, good days, but bad months as it would happen. now to our top trending stories of the morning. this tea's for you. a bottled version of teavana tea. it gicombines starbuck's tea expertise and busch. a test is set to debut in
denver and phoenix in the next two weeks. the retail giant will announce it today at its agm. the thing that surprises me is it managed to strike a deal with both uber and lyft. i would have thought that would be a sort of absolute no-no. >> walmart is such a big company that it probably has it say of who it works with. i'm interested in what cities these companies choose to pilot these programs in. amazon has chosen to do most of its pilots in new york city, you can get around so quickly. denver and phoenix, that's an interesting and different take. >> also -- in new york, though, an interesting choice, people don't seem to cook as much here. i don't. >> there is a culture of convenience here. >> right. >> people will pay for just about anything. no wallet, no problem. veesia visa is introducing a payment ring for the olympics in brazil. a secure chip that works like using a card. it is in the prototype phase.
the ring will be given to the 45 olympic athletes who are sponsored by visa. file this under the what will they think of next? >> i think it is a good idea. seems easy than paying with your phone. other most interesting thing about the olympics is that visa has an exclusive deal to be the only card provider across all the payment points in the olympic park, which is quite a big coup. and probably quite annoying for a lot of people, because some people have mastercard or american express. we'll see how that works out. another development. >> the athletes said they're changing in and out of their uniforms so much, even the traditional wearable is a little cumbersome. >> perfect advertising people to use. snapchat reportedly growing out of redesigned version of its discover page. it is ditching its current look for a tile design similar to instagram. the new look will allow publishers to create custom cover images helping them tease their channel's content.
we'll have to explore that, make sure we're up with the latest. i don't think i have a discover page. >> you do. if you have the snapchat app, you have a discover page. >> what is the discover page? not the story page? >> not the story page. the content provider so the daily mail, the wall street journal, box, they have their discover -- >> i have to update mine. i don't know what my discover page looks like. >> maybe it is time they redesign that. you'll have fun with that today. >> i will. it will take all day. coming up, today's must reads including a novel idea on a possible hillary clinton running mate. you're watching cnbc, first in business, worldwide. re earning k from bank of america to buy a new gym bag. before earning 1% cash back everywhere, every time. 2% back at grocery stores and now at wholesale clubs. and 3% back on gas. kenny used his bankamericard cash rewards credit card to join the wednesday night league. because he loves to play hoops. not jump through them.
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welcome back to "worldwide exchange." now to today's must reads. stories catching our attention. my pick is from the financial times, titled the fed takes a look beyond u.s. data. the story that she is threading together here is about how earlier this year we saw the fed mention volatility in chinese markets, among the first times the fed has actually cited the global picture. and not just the real u.s. data. and gillian thinks this is a good idea because of how important market psychology is, especially evidenced by the contagion we saw in 2008, how a crisis of confidence is sometimes more important than what the real data are saying. she writes brexit is a slightly unusual global event in the sense that it is binary and
penned to a specific date and given the fed tended to pay too little attention to global market linkages in the past, the fact it is becoming aware of the dangers becomes laudable, not reprehensible. see what happens then. and you have very little. >> i think that binary point is very relevant. you got another meeting just six weeks later, so you can easily wait for that one. not like you have to wait until the end of the year and this event will either be done or not. you don't think will china have improved by then or not. it is pretty simple it seems on the surface, just to wait in june, look ahead to july. a lot of commentators come out and say they're not too worried about that. ben white wondering whether hillary clinton should pick mark cuban as her running mate. she -- ben white writes --
i don't think many people think this would actually happen. most of all in the hillary camp. it is interesting because he has what hillary doesn't have in terms of celebrity appeal and popularity and he has what donald trump does have in terms of that business ackman and suggesting he can bring his business success for the country as a whole. that would actually denigrate a lot of what trump stands for potentially. but cuban seems to have been as critical as he's been of trump, and come out at times and said, yeah, i would consider running with him. like cuban is available for everyone. >> he's been mentioned as a possible running mate for either of them. so that centrist appeal could also be something very valuable. >> what is interesting, he does say, i have no clear party allegiance and i just would be
taking a practical approach to things, i suppose is welcome in this kind of anti-establishment time that we're in. those are the must reads of the day. still to come, the verizon strike likely to play a big role in today's jobs report. fed may focus on other factors in the data. wells fargo chief economist john sylvia will weigh in with his expectations. that's coming up in just a couple of minutes. cathy's gotten used to the smell of lingering garbage... ...in her kitchen yup, she's gone noseblind. she thinks it smells fine, but her guests smell this. ding, flies, meow febreze air effects heavy duty has up to... ...two times the odor-eliminating power to... ...remove odors you've done noseblind to [inhales] mmm. use febreze air effects, till it's fresh and try febreze small spaces...
we're approaching the top of the oil. the team getting ready for "squawk box." becky quick joins us. >> the big story that we have this morning is the jobs report. that is out at 8:30 eastern time. and big deal this time around because the fed is meeting next week. so this is the last of the major data points before we hear from them about whether they decide to raise rates for the month of june or not. that's something the markets have been keeg oying off of.
we heard because of the verizon strike, that was not reflected in the adp numbers and will be reflected in these numbers. we have a lot of market guests here to talk about it all. and our guest host today is larry bossidy of honeywell, we'll dig into that with him. and i don't know if you are a germ freak, i am a germ freak, and news of a new super bug out there resistant to the last strains we have of any antibiotics that can fight it, the super antibiotics, that's been keeping me on edge. we have dr. zeek emanuel who will come on to tell us more about it. we found a woman in pennsylvania who had strains of it in her urine. expectations are she's not the only one in the united states. but that's the first case we know of in the united states. we'll hear more from him. >> i don't think i was a germ freak but you scared me into being one. i'll learn as much as i can about that. >> i keep as much hand sanitizer
handy as possible. >> it is the anti-bac and it is the use of antibiotics in people who don't need it and especially in livestock that has gotten us to this point. >> eat more probiotic yogurt, right? >> exactly. by the way, speaking of eating things this morning, it is national doughnut day. >> is it? >> national doughnut day. and we have nigel travis, who is the head of dunkin' brands joining us and i'm guessing there are doughnuts around here somewhere. >> we look forward to "squawk box" in eight minutes time. joining us to talk about that to expect in the jobs report, john sylvia, chief economist at wells fargo. we were talking about this piece in the financial times written by julian saying the fed should wait until july. it is six weeks later. brexit is a binary event. do you agree with that? >> i agree with it entirely. i think the financial markets have looked at international
events for quite some time and clearly, yes, brexit being in a binary event, yes or no, it is right up in front, specific date, as you were talking about earlier in the show. my suspicion is let's just wait. also, you know, you look at the employment number, a lot of discussion about verizon and impact. there is one line in the bls report on employment that identifies information workers. that's where verizon fits in. once we look at that, it is another case of maybe this number is going to be a little biased because of that. but the next number should pick it up again. have a better view of the employment number and the economy. >> john, verizon issues aside, of the numbers that come out, what are you most focused on, the unemployment number, the wage growth. >> i think the wage growth. that seems to be what the members of the fomc, the federal market committee, really talk about the most.
i think they're fairly comfortable with the unemployment number at 4.9, 5.0, that's pretty much full employment. what they want to see is the wage growth. that's what i'm focusing on, should be around 2.5% year over year. if it is a little stronger than that, again, another signal the fed will be going in july. wait after june with the brexit vote. >> our twitter poll responds agree with you, 49% of the 100 or so people who have voted do think that wages will be the most important. but you mention we would be tracking for 2.5% year over year increase. people like to focus on the month to month number and say it is only, you know, a tenth of a percent, .2%, 2.5% over the last year is pretty much exactly in line with what the fed is looking for. >> yeah. again, we want to see is there an acceleration. that's what the fed will be concerned about. these numbers are picking up quicker and as a result of that, the fed may move perhaps in july
again, reacting to some number that is greater than expected, greater than what is discounted. that's what moves the fed. >> john, when we consider the u.s. dollar as well, of course it strengthen significantly in may, treading water a little bit this week itself. what is the expectation for the year ahead. do we think that one rate hike is priced in or two rate hikes, could there be a surprise and big move upwards in the dollar this year? >> well, that's the trek. if you only price -- if the market is only pricing in one increase, then if you get two, then you get obviously a slightly higher short-term interest rate, that will create capital flows into the united states. again, reinforced by the perception that the economy is doing better. that will add strength to the dollar. i think the risk is that the dollar will probably move upwards a little bit more than what is currently discounted in the marketplace. particularly given, again, the
ecb and draghi's comments earlier this week, the bank of japan trying to use negative interest rates to stimulate their economy. >> thank you for joining us. pleasure to see you as always. john sylvia of wells fargo. time very quickly for our charts of the week. u.s. ten year, i think in a week where the data has continued to support the possibility of a hike in june or july, we have seen yields fall. we have seen a bit of bond buying and yield below 1.8%. nothing too major. >> more of a spread story given what we have seen in europe than a u.s. data story. minus oil, u.s. companies are looking at 50 to 55 as the all clear to ramp up production again, given what opec didn't do this week. surprising to see oil holding firm. >> and absolutely right. oil prices as you can see, pretty much flat, 49.2. u.s. futures as we leave you pointing to a pretty flat open
after slight gains yesterday. that's it for "worldwide exchange." "squawk box" up next. have a lovely morning and lovely weekend. download the new app?le we're good. okay... what if a million people download the new app? we're good. five million? good. we scale on demand. hybrid infrastructure, boom. ok. what if 30 million people download the app? we're not good. we're total heroes. scale on demand with the number one company in cloud infrastructure.
good morning, again. the countdown is on. we're a couple of hours away from the big jobs report. we love this. we get to do this every month. it is always important. it really is. u.s. futures are flat, though. stocks in europe are slightly higher. on the attack yesterday, hillary clinton taking big swings at donald trump while house speaker paul ryan makes his big decision about the donald for the november election. and it is not just jobs friday. it is also national doughnut day. and who better to celebrate with than the ceo of dunkin' brands. i grabbed some munchkins. i got a milk shake with my
munchkins. yeah. also i'm going to just go all out today and throw caution to the wind. it is friday, june 3rd. "squawk box" begins right now. this is "squawk box." >> good morning, everyone. welcome to "squawk box" here on cnbc. i'm becky quick with joe kernen. andrew is off today. the countdown is on. we're two and a half hours away from the release of the may employment report. let's get to the expectations. forecasters say the economy privately added 158,000 jobs last month. the unemployment rate is seen as holding steady at 5%. a government report predicted the verizon strike could cut more than 35,000 jobs from the payrolls number. we'll get the numbers at 8:30 a.m. eastern time.