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tv   Street Signs  CNBC  June 8, 2016 4:00am-5:01am EDT

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♪ the first time in our nation's history that a woman will be able a major party's nominee. [ cheers and applause ] hillary clinton hails a milestone, claiming victory in the democratic race on the last day of primaries. bernie sanders vowing to fight on. >> we'll take our fight for social, economic, racial and environmental justice to philadelphia, pennsylvania.
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european shares on the back foot after the world bank slashes its global forecast on culturing demand. and high spending from beijing. ecb goes corporate launching a bond that could benefit some of the biggest companies. a warm welcome once again to "street signs." it's wednesday, let me give you a look at the markets this morning because we do have a bit of a risk. up 1.5% over the last trading days. a number of elements i mentioned there. the first, of course, that chinese data overnight. actually down 0.4%.
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down 6.8% actually expected so significantly better. and down just over 4% for year on year. the expectation 4.6, better than expected. the picture, though, that's painting for you, the domestic outlook and stimulus. the global outlook the world bank slashed the global break down to 2.4% down from 2.9%. china unchanged 6.7% growth for the year. the ftse 100 down by 0.09%. and the last couple of sessions, the basic resources gaining with the weaker dollar helping it. with it managing to hold into
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broader territory. and wti hitting another ten-month high yesterday. utility sector in the red. that's an interesting one, we'll talk about more what's going on in the bond industry because the ecb has kicked off that corporate bond buying program that it launched back in march. and those eligible for cspp plan, bonds have to be active, euro, investment grade and within the euro area. and banks and bank-like companies and bonds for a period of less than a half year will be excluded. these are some of the companies with the most eligible bonds as they are nonfinancial and have the highest investment rate euro bonds at standing. the most likely to benefit from
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the program with telecoms. germany looks to be the most recent resources. credit markets have been on the edge in the runup which expected tightening since the announcement of policy. april and may included two record-breaking weeks for bond issuan issuance, too. loads of rumors and reporters cycling on social media about which bonds. according to sources, ecb has begun buying utility bonds in the secondary market. we've had some comments from mario draghi this morning, too. had he said the euro is the second most important currency in the international system. and the dollar, of course, the use of the dollar impacted by the fed concerns about emerging markets saying that the ecb neither hinders nor promotes
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international use of the euro. and he said that the euro for the sixth straight year in 2015, so a number of comments coming out there. the euro and dollar losing ground with the impact force of central bank policy. we'll bring you any more comments that mario draghi makes. a lot of impact in the credit markets. it will be interesting to see what further spread tightening we get particularly in terms of sector over the coming days. let's move on to another top story, president obama has congratulated hillary clinton securing delegates necessary for the nomination. nbc news has called new jersey, new mexico and south dakota as the presumptive democratic nominee after voting took place on six states on tuesday. >> we all believe that america succeeds when more people share in our prosperity.
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when more people have a voice in our political asystem when more people can contribute to our communities. we believe that cooperation is better than conflict, unity is better than division. empowerment is better than resentment. and bridges are better than walls. we are stronger together. and the stakes in this election are high. and the choice is clear. donald trump is temperamentally unfit to be president. >> democratic presidential candidate bernie sanders is expected to cut staff as his campaign is past to make headway against hillary clinton. the white house said president obama will meet with the expected runner-up tomorrow. speaking earlier, sanders refused to concede victory. >> we're going to fight hard to win the primary in washington,
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d.c. and then we take our fight for social, economic, racial and environmental justice to philadelphia, pennsylvania. i am pretty good in arithmetic and i know the fight in front of us is a very, very steep fight. but we will continue to fight for every vote and every delegate we can get. >> talking about taking the fight to social justice to the convention in philadelphia. he doesn't talk about taking the campaign. i wonder whether or not he is actually going to stay in the race. it's interesting to see what comes of that meeting with president obama. great to have you on the show. is it too early to worry about ma a trump presidency will mean for markets? >> yeah, it's a question, especially over the last couple of days from clients is the
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market not paying attention to the election. first, there's a lot to pay attention whether it's the fed or jobs reports and anything else going on. secondly, we haven't seen either candidate come out with economic policies. it's about the economy at the end of the day. the uggs has highest corporation tax at 39%. behind chad and uae. we're not hearing from either candidate about doing something about it. >> and trump i've heard about his diplomatic relations, about his concerning comments about the obligations of u.s. treasuries. i think we know enough about trump to be concerned about what this means for the markets? >> what happens is both parties start at extremes and come towards the moment. i'm saying at the moment, it's very much talking about the spirit there and now to turn outwards and towards each party. and as a market participant, i'm
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hoping we'll start to see some of that. both candidates are possibly the two most hated candidates in the history of the u.s. election. there's a lot going forward as each candidate does. >> you mentioned the payroll numbers and the continual pushing back of potential rate hikes. i watched the interview, you were saying you didn't think it would sway the fed either way. have you changed your mind? >> no, i actually read the transcript of janet yellen's speech on monday. i'm sure there's rewriting on saturday that somebody had to do. it's acknowledgement that the data is bad. if you look at the jobs, job openings have been strong. and jobless claims, under 300,000. and generally since 2010, we've had six occasions where
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nonpayrolls have been below and banks each time. >> so you think it's likely that they'll hike in july? >> we're actually in the september camp. we think it will push that until september. >> given that the u.s. markets have been stuck in this range from 2018 to 2021. >> you have to give the market credit for what it's done. it's going to be about earnings. it's going to be a while before then. and we're going to be focusing on the macro. some other top stories, the world bank cuts growth forecast from 2.9%. only the back of low commodity prices, weak trading and fading capital flows. the markets have been hit
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hardest and may count for half of the downward revision after fading into the new pricing environment. we've also had less positive data for china where may exports tumbled more than expected by 4.is%. it's interesting, the exporting data was weaker than we expected. it's kind of painting a picture of some level of stabilization in china. and still concerned about the global demand picture. >> yeah, china is concerned about the transition that we've all been talking about, the transition to demand. that's why the import data is taken as positive because consumers are spending in the u.s. as well. >> we've got retail sales, production, credit growth basis that's grown 10% of gdp. >> for the u.s.? >> for china, coming up in the next few sessions. how much of a concern is that
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for investors? there seems to be a number of risks. >> i'd love to ask you the question, when have they're notten risk attempts. going back to janet yellen's speech, overall, the positives outweigh the negatives. just taking yesterday, we've seen unit labor costs growing in the u.s. i know the job report was bad last week but average earnings are growing. we can look at the positive -- look at the negatives accenting the positives as well. >> how do you make money? what should investors be doing? >> well, we talk to individual investors and remind our investors that they have long term. gdp is growing at a much faster pace in the u.s. compared to the eurozone. clearly, they're trying all different tools to encourage end
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demand. and they're not getting to where they want to get to. u.s. is at a different stage which is exactly we're we're talking about rates. >> the ecb is in some kind of position to hike? >> absolutely. >> some would argue for valuations for the u.s. and europe. even if they're concerned about relative growth there's more value in certain european stocks? >> valuations are always better compared to the u.s. i represent individual investors is rewards savers finally. what it does also is improves confidence. but also it changes the behavior of companies out to make investment decisions. low interest rates that can borrow money and pay back. >> how are clients responding?
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what is risk sentiment like at this moment? >> if you like, there's the sentiment poll which looks at individual investors. personally, my clients are still positive for the u.s. now, looking through whether it's the referendum vote or the u.s. election, we're trying to encourage to look through that. >> as risk events. let's look at today's top stories. sharesle trading higher than first quarter sales. as britain's second biggest supermarket will look on the outlook for the rest of year. meanwhile shares in tesco as it continues with the asset selloff. sky news reports it's planning to offload kipa stores. it's part of a long-term strategy to refocus on its core
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uk business and pay down debt. erste shares going down lower after uniqa sells. if have any questions for kully or me, send your questions streetsigns@cnbc.com. or tweet me correctly, i'll put those questions to kully or try to answer them myself. we have to take a quick break. donald trump aimed at bernie sanders. hillary clinton relished her victory in a historic night with victory. >> thanks to you, we've reached a milestone. the first time -- the first time in our nation's history that a woman will be able a major
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party's nominee for president of the united states.
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what really happens if we leave? of course, we still want to sell into that single market. we have to have the rules and regulations that brussels lays down but we won't be at the table. we'll be like a country with our ear and face pressed up against the glass trying to figure out what's happening with the other 27 countries making rules that affect our country. >> david cameron over brexit. the prime minister telling them britain was a, quote, quitter not a fighter. trying to convince the audience eu had passed its prime. >> i think it's done for, frankly.
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i think the eurozone is a catastrophe. just look mat they've done to greece and other countries. the migrant crisis is not just dividing into countries meeting with a whole new brand of politics. the money's run out. and yet, at the same time, they're saving up for the day after our rev rend dumferendum. the project doesn't work. i want to us get back our independence but to say we'll be good europeans. we'll trade with europe, cooperate with europe, but govern ourselves. i believe when we do that the rest of europe will do that, too. and a happy europe will be a democratic europe with sovereign states. that's where i want to get. >> thank you very much. >> i got a conference call. >> it's not too late. it was a concern for me. then, of course, it was the closing of -- if you want to put in your application and the
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website crashed. next time -- next time she says. if there is a next time. there's risk surrounding brexit. there's a lot of talk about it, but at the same time i don't think the markets are reacting at all. >> it's what you believe. it depends on the polls with the methodology of the polls the right demographics. same thing happening in the u.s. as well. if you look at the vetting markets. what i find astonishing how much is being talked about in the u.s. the number of cases recently, next to who is going to win the premier league, this is the second question i get. equally, getting back to janet yellen's speech in the transcript there's a whole paragraph on the eu referendum. and the fed minutes released from the last meeting that there was a lot devoted around this. >> we talked to charles evans a few days ago and he said he's not worried at all.
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it's not a big event at all. >> fact that the fed are talking about it so actively i think illustrates it's a bigger event. not just what it does to the uk but what it does to europe and the european projects and what impact that it has. >> what impact does it have if uk voters decide to leave? >> the bigger question is what the other countries do? what does it do to project europe? yeah, it is a worry, whether or not it's going to get in or not, maybe as we get closer, just as the u.s. election, we're starting to pay more attention. at the moment, most markets suggest it's likely we'll remain. >> and most investors at this moment are kind of taking that judgment of that? >> i think so. there are a lot of decisions. whether it's the corporate level or individual investor level being delayed by referendum.
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>> right. >> whether there's a -- >> delays decisions on the uk or delaying investment decisions period? >> i think this is anecdotal. they want to see beyond this level of uncertainty. my investors are investing in u.s. dollars so when they convert sterling it's going to impact what kind of strength they achieve. so it's impacting me for the business. we did well but not to the level that we like. we'll see what happens. >> intensive opportunities to invest in europe. where do you see opportunities? where do you see europe? >> oh, that was a big sigh. >> it's a big sigh. >> bond buying, there's simply not enough volume within the corporate bond sector for the ecb to achieve what it wants to
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achieve. in fact, what it might do is crowd out investors who have to go down in the junk market because they can't buy enough. your previous guest was talking about the unintended consequences of this. some companies not being run well, the ecb is buying their bonds. >> we had that in the other market, have we not? existing in the quality of different credits? >> yeah, look, you know, i would struggle to find opportunity in europe right now. then again, you might say i'm biased but i would continue to focus on the u.s. from a risk reward perspective, i think the u.s. is definitely better. for the individual investors, the individual investors will continue to encourage that. by the way, most uk investors have a home bias anyway. our question is, do you have you have u.s. exposure. >> great to have you on, kully.
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managing director at charles schwab. the governor of the lebanese central bank has told cnbc that his country is suffering from political deadlock. we caught up with them in an exclusive interview and joins us from beirut. hadley, good morning. it's not political deadlock, it's paralysis. you and i know this has been a financial asphyxiation factor for them too, hasn't it? >> reporter: absolutely has an impact, julia. it's one of the main topics with the central bank governor just how the folks are coming in from syria, worried about how long they're going to be here. lebanon could tell the european community quite a bit about what it means to have a migrant crisis. of course, they've had problems with migrant flows ever since the creation of israel. it's interesting if you look at what's happening today. we talked about yesterday, about
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what's happening in terms of politics of this country. this is a country where they have problems with everything from tapping into gas reserves off the country's coast and they still haven't figured out how they're going to process those and make those work for the country. i asked the bank governor about it, how is it going forward, are you going to elect a president? what happens next? take a listen. >> the problem is that you have a deadlock. and it seems that there is political class cannot survive. usually, they rely on external intervention, but obviously, there's also a deadlock on the level of religion. and the only interest of international community in lebanon is is that lebanon is
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making sure that those are kept in lebanon. >> reporter: of course, speaking of politics, one of the hot topics here in lebanon today that impacts the financial community as well is what to do about u.s. sanctions on hezbollah. you have to remember this is a major pretolitical party in lebanon, they've been designated as a terrorist corporation by the u.s. government. they're in line with the regulations that the u.s. government wants to implement but they have to balance out this is say country where 20% of gdp was made up of remittances totaling around $8 billion. the bulk of those remittances coming from outside the country. and it could have a major impact on where they end up putting their money. i asked the central bank governor about that. take a listen. >> lebanon has to do more internal. i think after the crisis of 2008
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globalization in terms of colony has ended. and the war of currencies whether you admit it or not, has really been detrimental to all of these agreements that were signed before. so, we need to gain competitiveness. and for that, we need technology. and for that, we need a sector that would provide that technology that is local. so we need to have more demand. we need to have more competitiveness. lebanon say small country. and the economy in lebanon depending on the lebanese. it doesn't depend on natural resources. it doesn't depend on exports.
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we have an industrial sector that is good, but it doesn't trade a lot in our economy. so, the sharp pillar is to keep confidence in the country. for that, we need to reactivate the democratic institution of this country. >> reporter: the is central bank governor basically saying what the lebanese have is of course, their human capital. they know how to do business, they know how to make money in this country. whenmittanceremittance, it's difficult to figure out how they're going to take out those sanctions from hezbollah. and how that's going to have impact on those live ago broad. and whether or not they're going forward with projects. the political deadlock keeps things at a major standstill. >> thank you for that great
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interview. we have to take a quick break to check out world markets worldwide. our blog of trading goes throughout the day. we'll be back with "street signs."
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the first time in our nation's history that a woman will be a major party's nominee. hillary clinton has a milestone declaring victory in the democratic race on the last major day of primaries, bernie sanders, though, vowing to fight on. >> we will take our fight for social, economic, racial and environmental justice to philadelphia, pennsylvania. >> european shares on the back foot after the world bank
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slashes its global growth forecast on faltering demand. consumers woes hitting chinese exports in may but import data offers a glimmer hope thanks in part to spending by beijing. ecb goes corporate launching its new bond buying plan that could benefit some of the biggest companies. ten-year bond yields have hit fresh record lows with investors concerns over the size and impact over the ecb's bond buying program which kicked off today. this as national central banks begin the corporate bond buying process under half of the ecb. traders have told them they have seen bids for five-year utility papers in the second-year
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markets. generale getting bought. the criteria for the cspp plan are as follows. bonds are to be active. and have currency from euro. and banks and back-like companies convertibles and hybrids and bonds with less than 1 1/2 years will be excluded. the first list will be released on july 18th and then once a week after that. head of corporate research at s&p global joins us now. paul, great to have you on the show. we were just discovering that there was concern about scarety of bonds here. if i had a issuance this year, the amount available, comes to 700 billion euros. you estimate 5 billion euros. >> 5 billion is on a net basis but on a grade basis, it's much large than that, probably about
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50 billion uros, recently. they've lost in the last few months. but that will help the ecb to get the bonds they need. >> i'm seen the comments that they've actually made it up to 15 billion euros. how important is that difference? >> we don't think that difference is too important because really this is trying to really set the price level if you like to reduce yields and reduce the cost of funds to encourage corporates to borrow. so the ecb is sort of a marginal player. if it's 5 billion euros a month. the question is, to what extent do corporates actually need to borrow money to stimulate growth. >> anxious tswer the question. >> well, we think it's a step from that point of view. there are signs that corporates are stepping up their capital investments. and obviously, m and a is
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obviously a wildcard in this area. but we don't think overall, is this going to be a game-changer. >> corporates can shift down their credit quality care. they can issue lower quality debt at cheaper rates, they can extend the maturities. i think one of the questions this brings to my mind is what about small and medium size, if they want to borrow money, is this going to facilitate their access? >> well, i think this is one of the very interesting areas that we want to look at carefully and watch how the ecb proceeds particularly if they expose the issues or the numbers and issues they're going to buy it will be fascinating to what extent. because there is a big opportunity there for midmarket companies to actually come to the capital markets in a way that they haven't done before. but again, it's going to be a fairly slow process. >> it's a question that one of the things we were asking at the ecb conference last week. we were talking about
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potentially seeing them buying five-year utility bonds. how do they buy, in the auto market, a bmw bond and decide how did she buy a proportion of those and then look at volkswagen. and then counterbalance what they buy of each without create something kind of lawsuit of the company saying hey, you should be buying my bonds, this isn't fair? >> well, i think the ecb has a bit of diversity around the issues that they buy but they're not going to disclose the actual amounts. i think they're going to try -- they're going to be sensitive to the market perception here. i don't think they'll be facing lawsuits sometime soon. >> this is the ecb basically saying, look, we prefer debt over equity. >> right. >> they are effectively changing the shape of the credit card. they are, to some degree, given a suppression, to break down the signaling mechanism of the quality of things on the line of
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credits. is this a high class problem as draghi told me once when i questioned him about the sovereign bond buying program. >> well, clearly, as i heard earlier, there's potentially unintended consequences that will be derived from this policy. as you already mentioned, you know, the yield curve and expression of yields. for, the whole pension issue for benefit schemes is potentially a big negative because that's getting worse. so those are sort of a negative from a corporate credit perspective. but those are second order issues at this stage. the primary purpose to get companies to borrow money and to improve their liquidity turnout to debt. and hopefully borrow money to score growth. >> if you is successful coverings see them moving on to buy equities? >> well, i think there are -- you know, there are other tools
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that -- >> such as? >> well i think, obviously, there is potential for them to move rates in a more negative direction again. >> ooh. okay. >> i don't think they -- i don't think anyone is seriously looking at buying equities at this point. having said that equities have been back to the euro existence. >> i can hear the sounds if they try to move late into further negative territory. do they risk getting into the area, and actually the yen strengthens and the markets sell off? >> well, i mean, the markets can always react in strange ways. >> i'm asking about credibility, i guess. >> listen, is this a long journey this is a long fight to actually get the economy and inflation back to sort of a normal level. and we don't know how long that's going to take. >> you said it, it's a long
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fight. and it certainly has been great talking to you. head of research at s&p global. we also have data overnight that japan's economy grew faster than initially estimated in the first quarter of this year. spending growth spell lower than expected. nakita joins us. >> reporter: yes, in a report data shows that japan's economy has grown 1.7% but that was revised up slightly to 1.9% today. the makeup was spending which combines 6% of japan's gdp and a fall in capital spending. it's closer to abe's 1% growth.
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the first quarter gdp growth in a leap year is said to be given a boost of an annualized 1.2% due to the extra day of activity. taking that into account as well as the fact that the economy is shrank or so during the first quarter. despite foregoing the opportunity to gain additional revenue, abe is planning on releasing an economic plan this autumn. that's all from the nikkei. back to you. >> thank you much, mikiko. we have comments out. there are reports that the executive vice president of honda was going to resign taking responsibility for the automaker's use of the wrong
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mileage testing. this was record and denied by suzuki overnight. we do have comments out by them this morning they're saying that the executive vice president of honda is going to retire. but the company's directors will waive their full year 20 screen bonuses. and they're going to be cutting bonuses in the managing offices. and they're also saying that they're going to introduce steps to introduce improved engineering training and strengthening mileage testing systems. so, now trying to take some responsibility in action for the future over the mileage testing systems that suzuki makes. we're going to take a quick break, coming up on the show, as bernie sanders dug in, hillary clinton relished her history in an historic night in american politics. >> thanks to you, we've reached a milestone. first time -- the first time in our nation's history that a
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woman will be a major party's nominee for president of the united states.
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in u.s. corporate news, uber is being probed by a u.s. judge over allegations it fraudulently sought information about its opponents through hiring private investigators in an attend trust indicate. attorneys admitted to hiring a private investigator but denied knowing he knew about information to gain information. the suit filed in december claim that they engaged in a price fixing scheme with uber drivers. ralph lauren has announced plans to cut jobs and reduce 50
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stores. it's been struggling to cope with weak spending of luxury apparel. as well as stiff competition from h & m. shares closed 3.2% lower. >> yahoo! has hired an investment bank to tell patents. it includes research technology and back to the company's founding 20 year ago. the company has reached out to pat at the present time buyers. amazon's ceo jeff bezos announced the company would invest $3 billion in india. bezos emphasized that india is the fastest growing market adding the money will help accelerate its role as a digital hub. the initial investment brings it to over $5 billion. general motor ceo mary barra
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with an annual meeting on tuesday. cnbc's phil lebeau has the full story. >> reporter: general motors rolled into its annual meeting at an interesting time for the automaker. it's profitability is higher and it's going coverage on retail sales for customers at dealership, as opposed to fleet sales through daily rental company or to corporations. that strategy has paid off in terms of driving up profitability but it has hurt market share to a slight extent. but mary barra said this. >> we're going margins improving across the board. we're going to stay and continue to do do what we say we're going to do and that will be reflected. >> reporter: on the top ache of autonomous driving vehicles,
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mary barra was asked if the first cars should have steering wheels and pedals. because these cars will not be absolutely autonomous and drivers will still be required to take some control of the vehicles at certain points in driving it. that's the story here from the united states, back to you. >> the dow and s&p managed to hold on to minor gains yesterday. 0.1% higher. we have the dow above that 18,000 level for the first time in six weeks. april 27th, to be precise. i'm showing you the futures, relatively little change. obviously, we do have a few hours before the opening of the market. if you're taking the sentiment of the markets i can tell you it's pretty sluggish. on the downside here in europe. the red across the board here. on the ftse 100 the basic resources sector, managing to hold with utilities, 0.7%
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higher. that is a half percent lower for the dax, german and italian markets here. as we know more broadly in europe, the ecb has kicked off their bond buying program. suggesting they've been buying five-year utility bonds. we've has some comments from mario draghi this morning talking about the importance of the euro. and actually we've seen both the ug u.s. dollar and euro taking on reserves over the period. carmakers in the u.s. are looking to go big by make something cuts. wilfred frost is at cnbc hq and has the details. good morning. >> good morning, julia. ford answering to cut small car production. cars made up about 32% of new
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vehicle sales in the first four months of this year that's down from 51%. that is fueled by the driver's love affair with full size cars and trucks. meantime, it's plants that make larger vehicles will be shut down for one week versus the normal two this summer. and five american plants won't be shut at all. as for broader markets, julia, yesterday, we were basically flat. nasdaq was just negative. and at the moment, u.s. futures are broadly flat. slightly in the red but largely flat. lots of pretruce come on the show. the highlight will be the brexit discussion, julia, you're joining us and i look forward to that immensely. president obama has congratulated hillary clinton
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for securing delegates necessary for the democratic nomination. nbc news has called in new jersey, new mexico and south dakota for the presumptive democratic nominee after voting took place in six states on tuesday. >> we all believe that america succeeds when more people share in our prosperity. when more people have a voice in our political system. when more people can contribute to their communities. we believe that cooperation is better than conflict, unity is better than division. empowerment is better than resentment. and bridges are better than walls. we are stronger together. and the stakes in this election are high, and the choice is clear. donald trump is temperamentally unfit to be president and commander in chief.
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>> democratic presidential candidate bernie sanders is expected to cut staff as it making headway against hillary clinton. the white house said president obama will meet with the expected runner-up tomorrow. speaking in california after the primary, sanders refused to concede victory. >> we are going to fight hard to win the primary in washington, d.c. and then we take our fight for social, economic, racial and environmental justice to philadelphia, pennsylvania. i am pretty good in arithmetic, and i know that the fight in front of us is a very, very sleep fight. but we will continue to fight for every vote, and every delegate we can get. >> nbc's tracie potts is in washington for us as always. good morning, tracie. it's quite interesting actually
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as i was watching sanders speech for what he didn't say for what he said. he seed we'll take the fight to the convention. but he didn't say what happened after that. he shied away from criticizing hillary. i just wonder if this is the start of the democrats trying to pull together to some degree. >> and the start of bernie sanders trying to pull his people into the camp of supporting hillary clinton. that's a good question. what he did not say is we're going to philadelphia to win this nomination. he said we're going to fight for every vote. we'll get as many delegates as we can. it it seems that the focus for bernie sanders right now is to bring the issues that he has rallied people around that millions of people have supported equity, cracking down on wall street. making things fair for the average american. making sure that those issues are part of democratic platform going forward. and the democratic campaign in
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the fall. even if he is not the candidate. it is the big top irk of discussion when he comes to washington to sit down with president obama. the white house announced this overnight. he didn't get called in by president obama but he requested this meeting to talk about some of those issues he wants them to be part of a clinton campaign if clinten is going to be the nominee. and it certainly looks that way considering she has the majority of the pledged delegates and leading in california. too early to call that one this morning but it certainly seems very difficult as he just acknowledged to stop her as he just said to becoming the party's nominee. >> thanks for that. we're joined by political analyst at the american enterprise institute. james, thank you for joining us. we state the fact that it was hillary's night it seems last night. do you think this is the start of a more cohesive democratic
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party? i think he's got a fight as tracie was saying there to establish the anti-establishment vote shifting to trump? >> listen, i think bernie sand serious going to do, certainly after next week's washington, d.c. primary, he's going to fight for his issues in philadelphia, but that race is over. and you can see hillary clinton is turning towards the general election in her speech in which she has attacked donald trump. trump has done the same. listen, this is not going to be like a genteel debate about early education policy or something like that. there's going to be a nasty fight with hillary clinton attacking trump as bigoted and his policies as insane. and him attack her as a crook. we've seen the beginnings of that in a speech. that is going to be the thrust of his campaign going forward over the next five months. >> donald, in his speech last night, didn't call her a crook. and he stuck to the script.
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he was clearly using a teleprompter. is this going to be the future for donald trump actually trying to toe the line and not being to overt in his comments? >> right, trump in the box in which he kept his rhetoric more subdued while he may not have called harrisburg clinton a crook then, he's certainly suggesting that next week he's going to call her a crook. he's going to taxi the state department as he said to the private hedge fund. he's not going to be going over plans for raising capital gain taxes. it's going to be a very personal campaign, in which he's going to question her fitness to be president just as he said in the clip earlier that she believes him to be temperamentally one fit for president. perhaps he'll go less at hispanics and mexicans and focus
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on hillary clinton. >> i want to talk about the lack of staff, the disorganization, the competitiveness, the conflict within his own staff and the fact that trump seems to go his own way at the end anyway. how much of a problem is that going to be for this campaign trail? >> listen, i think it's a big problem. as we saw, he's trying to micromanage his campaign including having conversations with his surrogates which is usually what is done by lower level officials. one reason romney lost in 2012, ultimately on the day of election he did not have a very good organization. trump's organization really looks skeletal compared to what mitt romney had. these down by a few points. probably going to be down by five to seven points once the bernie sanders come to hillary
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clinton. including president obama working hard for her. he's going to have a campaign of data-driven analytics. and he's shnot spending money o the campaign. >> didn't he say data is overrated? >> we'll see. >> we'll see. james, economic policy analysts at american enterprise institute. that's it for today's show. great to have you with us. i'll see you here same time, same place tomorrow, "worldwide exchange" coming up. stay with us.
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good morning, breaking overnight, the world bank cuts its global growth forecast. we'll tell you why coming up. new this morning, hillary clinton celebrates history becoming the first woman to win a major party's presidential nomination. bernie sanders isn't backing down. and behind the wheel, new evidence of americans' love affair with the suv. two major automakers shifting gears today. it's wednesday, june 8th, 2016. "worldwide exchange" begins right now. ♪ you got that daydream look in your eyes ♪ a very good morning and a

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