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tv   Worldwide Exchange  CNBC  June 9, 2016 5:00am-6:01am EDT

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good morning. oil prices near 2016 highs. the calais catalyst and global market ripple effects coming up. >> stern words from draghi. warns the euro zone is at risk of suffering damage. >> and george soros is trading again. and he likes gold. it is thursday june 9, 2016. "worldwide exchange" begins right now. ♪ good morning. a very warm welcome to
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"worldwide exchange" on cnbc i'm wilfred frost alongside the lovely seema modi this morning. welcome back. we'll hear your meeting today. very cool. and also a throwback theme for the music today. what song was that. >> rihanna. >> -- i was just joke. the theme for throwback thursday is early 2,000. millennial theme. let's get to futures. yesterday we had about a quarter of a foerkt a third of one percent for gains. the dow called lower by 38 points the nasdaq by 12. the s&p 500 by about six points. in general the u.s. markets have been much more resilient than their counterparts. let's look at the 10 year note here in the u.s. we've seen bond
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buying in recent days since the jobs number last friday, and yellen earlier this week. and that's continued. the yields have been pushed down. below 1.7% this morning at 1.675. >> overseas trade this morning. closed for the dragon boat festival. south korean central bank surprising markets by cutting the key interest rates to a record low but that did not give stocks a boost. japan we're in fact seeing a stronger yen and the index down just about 1%. in india down over 1%. perhaps the mody effect not really translating into the stock zbans the south korean stock market down fractionally. >> in european trade it is all about draghi's comments and right now a session where we're seeing stocks in europe mildly lower. the dax down 1% or more after exports surprised to the upside.
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>> and worth pointing out the way that europe has been soft this week. asia as well but europe in particular was down yesterday as well. strong gains early in the week. broader markets. oil prices really the driving force for u.s. equities. higher to the tune of 1.7% yesterday. 51.1 for wti and 52.3 for brent. both giving up ground this morning down around a quarter of 1%. the dollar, let's look at what that's doing this morning. the broader dollar index hit lowest level in over a month yesterday. we're at the lowest level yesterday since the 6th of may. this morning a bit more u.s. dollar weakness. as you can see the yen up about half a percent which was weighing on the nikkei. the pound relate fivelrelativel
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>> and draghi warns the euro zone is at risk of suffering lasting economic damage. draghi has argued monetary policy alone cannot end the region's economic malaise. we'll have much more on draghi's comments coming up and see if they drive price action overseas. >> and a similar tune to what we've heard from him recently. meanwhile george soros is trading again. the veteran billionaire investor back into the game with global economic uncertainty. the wall street journal says soros recently directed a series of big bearish investments selling stocks and by aing shares of gold and gold minors. to the wall street journal he warns the fallout of unwinding of chinese investments likely
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will have global implications. as for europe the investor says there is a good chance the european union will collapse from the weight of the migration crisis, challenges in greece and a potential brexit. strong, strong words. however he does tell the journal that if britain leaves of course it could unleash an exodus and the distribution of the european union welcome practically unavoidable. he suggests recent strength in sterling is an sign that exit vote is less likely. of course here is something to listen to on this because among the best trades he bet against the pound in 1992 in the exchange rate mechanism and maid over a billion dollars of profits on that. i think he's worth listening to. overall a brexit vote is unlikely. however he is warning of the severity of the fallout if an exit does happen.
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most notably saying it would be severe for the rest of europe. all we're focus on really at the moment is the pound and what that's doing. if we get closer to the votes and closer in the polls i think we would watch indices. and --. >> not just about the currency market. focus on the broader situation and connotation that could ensue. >> right and not just in the uk but europe as well. >> makes sense. a pair of reports on the agenda today. weekly jobless claims at 8:30 a.m. eastern. 10:00 a.m. wholesale trades. and for earnings. look for results from smucker and vail resorts. >> and restoration hardware tumbling lower. guidance for the full year also missed estimates it is down 21%.
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united airlines said a key load factor slipped last month. the carrier expects the figure to continue to decline in the second quarter partially because of the strong u.s. dollar. down 6% this morning. and the medical device firm boston scientific will restructure. hoping to cut costs a hundred million dollars by 2020. but says it doesn't plan to significantly change its employee head counted. up 2% this morning. >> vodafone agreeing to sell its new zealand unit to sky network televisions for nearly 2.5 billion dollars. the sale will help sky's digital offerings. and ceo is reportedly looking to poach a top coach executive as his new cfo. >> and reportedly in talks to buy amsurg. a deal could emerge as early as
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next week. >> check out shares of lending club. it saw its website go down late yesterday which it blamed on a data center outage. the site is now up and running. >> other corporate news. pepsco may be unveiling more changes to diet pepsi. what's the big change? >> the wall street journal is reporting the changes could come as declining sales for diet cola outpaced other diet sodas. they introduced aspartame free indict pep diet pepsi many loyalists debate
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like the taste of the new cola it was awful and flat. and sales are worse down 12% in the last 12 weeks but the stock is up about 4% so everyone is very particular about their soda tasting. >> i'm more of a coke man. >> i'm a coke person too. >> -- soda. >> i'm okay with either. >> i could tell you blind tasting between diet and regular pepsi and coke. >> diet and regular, definitely. but between coke and pepsi. >> i reckon i could. thank you very much for that update. right, in other consumer news amazon law firming a british version of its amazon fresh food delivery service. offering a full delivery service and competitive prices in central and's london. brit rn has one of the most developed online grocery markets. online grocery sales very developed in the uk and they have killed margins in the
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regular grocery companies in rebate years. >> big sir when you were in london too. the whole change and reorganization what that meant there. >> i agree. the food retailer. >> so good. >> the when amazon announced this a month or so ago, just because of the power and clout amazon has we saw all of the sector sell off in the uk because once again people were like more competition. more impact on margins. we'll is have to see. central and east london. >> coming up. ecb president draghi warns the euro zone is at risk. and what he plans do about it. >> a look back on this day in history in 1958, queen elizabeth officially opened gat wick airport. gatwick also has the world's
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busiest single use runway. 55 takeoffs and landings per hour. a single runway airport. heath row much more traffic in total but in terms of runways it is gatwick. . whole communities are living on mars and solar satellites provide earth with unlimited clean power. in less than a century, boeing took the world from seaplanes to space planes, across the universe and beyond. and if you thought that was amazing, you just wait. ♪
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just two weeks before the uk votes to whether to remain in the european union. we've talked about the implications but what would actually happen the britain voted to leave the european unionen? the first thing to note is that nothing happens immediately on june 24th after the vote. it is not a binding law. it would just signal the wishes of the people and spark the negotiations to begin setting the terms for separation. if the uk government invokes article 50 then a two year period begins before they leave. but it is possible they will begin negotiations in a more relaxed and amicable fashion without invoking that clause. the main assets in the divorce argument are as follows. first up free movement of people. will britain be able to stem the flow of immigrants while minimizing the rights it loses for its own citizens on the european continent. and will britain get to maintain
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the trade. and will uk be able to continue the passporting of financial services which allows eu members to offer financial services in other eu countries based on their own domestic regulation. switzerland does it but will frankfurt and paris will hungry to take market share and shut that down for britain moving forward. the other key question is would prime minister david cameron have to resign. he maintains he wouldn't. but there would be huge pressure on him to do so. this could delay negotiations whilst britain picks a new government. and just two weeks to go. lots at stake and we need to keep watching the markets. >> now sticking with the theme
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for our trade of the day our data team cranks numbers to figure how investors can protect their portfolios if a uk exit actually happens. if team screened for the historically best performing international assets and etfs two days after news events like poll, speeches and election results. the findings show that gold, silver and treasury bond etfs performed best. for more go to cnbc.com and check out cnbc pro. i guess this would potentially be a likely outcome if you see some ie type of dramatic change in politics that investors tend to stick to these safety traits. >> i like what they have done here. i don't think though yet in fact nonuk assets have been reacting. so this is more coincidental i would argue. but definitely safety trades you think would be the interesting
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one. so far it is very hard to do a historical study because it's never happened before. but i'm not sure how hard data we've got for this so of. central bank speak this morning. mario draghi addressing an economic forum in brussels. julia chatterly with the highlights. >> thanks wilfred. mario draghi must feel like a broken record. constantly warning monetary policy can't save the euro zone on its own and reiterated that message in brussels this morning. perfect timing given the fact we kicked off with latest round of stimulus yesterday. just listen into his warning today. >> there are many understandable political reasons to delay structural reforms. but there are few, very few good economic ones. and the cost of delay simply too high. given the interactions between
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policies that i've described, it is in everyone's interest that various trends of policy buttress each other. if only because it will reduce the time of to take its effects. and that would mean we could bring growth back to potential before potential itself becomes damaged. >> we're constantly questioning whether or not we're at the limits of monetary policy and that is not just a problem for mario draghi. but we also have more talk this morning that perhaps the ecb is bracing itself. we're talking about banks taking 10s of billions of euros rather than 420 billion euros out there in previous operations. why? because if they take that cash and they don't lend it out then they get negative deposit rates. it costs them to post that money with the ecb and that ties to another story this morning.
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commerce bank reportedly stashing billions in vaults to avoid storing with the ecb. we don't know if it's going to happen but proves the point the ecb chasing its tail. governments need to do more. >> i'm not sure if the director in london can just zoom out for a little bit. i wanted to ask about draghi's tool shed behind you. it looks incredibly fool. there isn't much left in the monetary tool shed. >> rapidly emptying. allegedly of course. but what they have done since they have started this corporate bond buying program they rammed in lots of names of potential corporates that could be buying so we're rapidly filling his tool box. >> thank you very much. and the main tool of course is fiscal policy from governments elsewhere rather than just monetary policy. that is one of the themes from the speech this morning.
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still to come here on "worldwide exchange." bernie sanders heads to washington for a sit down with president obama today. we have the latest from the nation's capital coming up. and before we head to break here is national forecast from jen carfagno of the weather channel. >> final had a front go through the northeast and really quite beautiful weather with no chances of rain today. kind of windy and breeze but cooler temperatures and very comfortable. storms are still in place across central and south florida. tropical moisture is stuck and we're going to see some rain heavy at times. the heat is going to be a huge story. as the heat builds across the plains and it will continue to build east into the weekend we'll see these clusters of storms. by tonight you could be getting some of those thunderstorms. the heat will be a huge story throughout the entire weekend. we start with it today in denver at 98 degrees. that is your coast to coast
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forecast. i'm meteorologist jen carfagno. "worldwide exchange" continues after this. i enjoy keeping people up at night. my analysis shows your stories are actually about human connection, even love. great storytelling needs drama and empathy. my cognitive apis can help any business better connect with its audience. you should try writing a book. find a remote hotel. bring the family. i do not think that is a good idea.
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an islamic funeral prayer service will be held for muhamed ali today. the service will be in his hometown of louisville kentucky and open to the public. a public memory sl sial is set friday. some people are trying to cash
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in their tickets by selling online. a spokesperson for the family says they are disgusted someone would try to profit off the memorial. >> and politics. bernie sanders meets with president obama today. tracie potts is live with the latest. >> good morning everyone. remember this is a meeting that bernie sanders asked for. he's not being hauled in to the white house after losing california. but it is going to be an important meeting to set the tone going forward. president obama giving us a nint a pre taped interview what they will talk about. the president says what he really wants to do today is listen to what sanders has to say and start to bring some unity to the party. >> my hope is that over the next couple of weeks we're able to pull things together. >> president obama will appear on the tonight show tonight just hours after his conversation
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with bernie sanders at the white house today. >> i thought that bernie sanders brought enormous energy and new ideas. and he pushed the party and challenged them. i thought it made hillary a better candidate. >> now that hillary clinton secured enough delegates to win the nomination. will sanders concede and urge his millions to followers to support her? >> it is going to take work on the part of hillary clinton, barack obama and most of all bernie sanders to bring them around. >> democratic leaders say sanders needs time. >> i would say let a week, ten days go by and then really begin to see the pieces come together. >> i've made it clear that i've going to do everything i can to make it possible for to him to be a good partner. >> that may include giving sanders more control over the democrats platform, including key issues from his campaign, social justice, protecting the environment. cracking down on wall street. >> besides meeting the president
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today he'll be here on capitol hill meeting with the senate top democrat. and then bernie sanders, a lot are talking about when he is going to drop out of this race. he has a huge rally in washington tonight. he wants to stay in to the last primary. and we still have d.c.'s primary happening next tuesday. >> it is amazing how quick it seems like a party can unite again. just a few days ago. it was still pretty vicious between hillary and bernie and already it seems like that is behind them. do you think the party can unite quick and will trump be quaking in his boots at that unity? >> trump doesn't quake in his boolts very easily but it is possible we could see some uniye with this party quick. bernie sanders scaling back criticism of hillary clinton both of them -- both sanders and clinton talking about our party and talking about things they want to do together to support
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the party. so it looks like it is imminent. it is on the way. >> tracie thank you very much. to sports after two blow out losses to golden state in the nba finals. no team in playoff history has ever come back from a 3-0 deficit. the cavs got rolling in game three wednesday night led by lebron james. he led all scorers with 32 points. the cavs would get a blow out of their own winning by 30. 120-90. game four of course is friday night in cleveland. >> looking forward to it. >> still to to come this morning. the repercussion os after brexit. we'll discuss the waves a potential leave vote could have on markets. >> plus set to take his final vows next month. it may surprise you what some people are willing to see to see
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his last performance.
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good morning. a world of worry. new this morning mario drag draghi --. global market reaction coming up. >> hacking america. the latest victim could be twitters co-founder. the details straight ahead. >> plus today's top trending stories. looking for tickets to lynn manuel miranda's final
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performance? it will certainly cost you. we'll tell you exactly how much. it is thursday june 9, 2016. you are watching "worldwide exchange" on cnbc. ♪ very good morning. i'm wilfred frost alongside seema mody. >> britney conspiracy. throwback thursday. >> great choice. early 2000s? >> i guess it was. >> when were we are original songs. >> '90ed. >> let's get back to market action. central bank speak early on today. mario draghi addressing an economic forum in brussels. warns the euro zone is suffering and more.
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>> the dow hit 18,000. we're looking at futures slightly lower. yellen rally perhaps not extend ing today. the dow indicating lower by 47 points in europe. draghi pledging for an economic cocktail of the monetary and the structural policy in the need. in asia chinese markets closed for the dragon boat festival. the japanese nikkei following the stronger yen and south korea in fact cut their interest rates. would have been those economies that's been impacted by the economic downturn in china. and have been trying to use monetary policy as a way to kick start growth but that doesn't seem to be having an effect thus far. >> and also suffered so much from the weaker yen because so many companies compete, whether car makers or shipbuilders, tech
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companies and they are slightly starting to get a tick up from the fact that the yen has strengthened this year compared to the previous couple of years. short-term no improvement yet. >> broader markets. oil prices have been the main driver for ugs markets this week. they were stronger 1.7% yesterday. weaker today but still above 51 on wti. brent is 52.2 and the energy sector year to date is the second best performer. oil prices this week have led energy sector to be the best performer this week. only one s&p sector remains in negative territory. that is financials bank still suffering. the 10 year note, the yield has fallen in recent gdays and week. the u.s. dollar of course has responded similarly. although it is not moving too much today.
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it has done against the yen. down half a percent. seems the nikkei suffered because of the yen's half a percent move to the upside. seeing weakness in the pound the other direction. gold prices basically glad at 1260 down just 10 basis points. joining us to discuss markets in more detail. very good morning to you. great to have you on. earlier today george soros said whilst he doesn't expect a brexit, he warned of the fall out if we saw one. indeed he said it could be a spark for european union to collapse more widely. so far when we talk about the brexit the market response has been focused on the pound and the pound only. should we be looking at the euro and other asset classes as well? >> absolutely. i think what source is talking about is really an asymmetrical bet right now.
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the conventional wisdom and bookies and everybody is convinced that we main is going to win. i think bet fair was 72% likely possibility that uk is going to stay and if it does of course nothing happens but it is very asymmetrical. because if it does vote for a brexit as you said it is not only just a rupture to the uk economy but rupture to the whole european economy because it opens up pandora's box for everybody else to begin an exit. and most importantly if uk begins the leave process italy could be the next target. italy is the single most important country in that sense because it is far bigger than greece. as the huge economy within the euro zone. and if italy makes any move towards leaving it ruptures the whole unit completely. >> does it really spark other countries to potentially leave? most of those other countries like italy, they are part of the euro as well. so for them to leave really
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would mean economic collapse, whereas it doesn't necessarily. the debate is raging of course. mean the same for the uk. you have to look at greece who accept extremely draconian standards imposed because they now the alternative of leaving the euro would be much worse. would it actually spark other countries to consider leaving as well? >> tough question because it is as much political as economic. and the point being is that greece is a tiny economy. and it would get crushed if it left the euro zone. so they have to accept. italy is i think the fourth largest economy and would be able to dictate much stronger terms in its negotiations. the problem is that even though italy is part of the euro, it is the euro that is the problem. the as straight jacket to a lot of other countries that need some stimulus. we saw mario draghi talk about the fact that nothing they are doing and there really is no pick up in demand that is significant to have any kind of
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confidence. that is the level of frustration i think everybody is seeing. having said this though. it still i think looks to be likely uk is going to remain in the eu. >> seems like the polarization of politics and the sense of nationalism we've seen exist throughout europe continues to be the case. over the past five years that level of uncertainty around political risk hasn't changed. suspect that something that investors have to get used to when you are getting exposure to europe? >> the problem with all of these scenarios is that everything is fine until it it isn't. everybody is complacent because they know despite the grumbling everybody says in the union and does anything. until one actor changes the script. and this is how source made a lot of one is betting on that one action that changes the script completely. and i don't think it is a minimal risk. it is still a very very tight risk. when you look at the polls it is
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basically even money between leave and remain and there are a huge amount on the sidelines right now. how they vote is probably going to be the turning point of where everything is. the whole point as you said if uk does vote to exit it is not that everything is going to rupture the next day but the penalties of rupture that are going to create massive volatility because the markets are always forward facing and they are going to start imagining all sorts of horrible scenarios. >> u.s. dollar. strong performance for the dollar index in may. yesterday we hit lowest level since the 6th of may so quite quickly unraveling the gains. will that continue over the summer? >> i think it is going to be tempered. we got kneecap by the nfps. what will bring further dollar weakness is if we have a second weak non pharm payrolls in a row. if july comes in weak again yes it is going to be an ugly summer for the dollar. but if the --
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>> eem now up about 8% year to date. >> boris thank you. now for the top trending stories of the morning. looks like evan swim suwilliams latest victim of a hacking. the same group that claimed to hack mark zuckerberg's sow social media account this is past weekend. perhaps just a warning to everyone. change your passwords on a regular basis. it can happen to anyone. >> absolutely. ed sheeran is being sued for $20 million for allegedly plagiarizing his smash hit "photograph." he's been accused of a note for note copying from a track called amazing which was released by x
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factor winner matt cardle. >> his bff. >> taylor. >> did you meet her yet? >> i haven't. but she's single. >> i i can't believe that ended. >> she's been watching "worldwide exchange." you know, her heart has changed to someone else. >> you're so smart. >> we just have to engineer that meeting. >> looking for tickets to the final "hamilton" performance? well it will cost you. some fans paying more than 6,000 dollars. the average cost is $4700. >> i still haven't seen the show. epic. you have seen it right? >> it is everything the reviews
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say it is. beautifully written. creative. i was in the nosebleed section. so if you have a chance though sit at the orchestra levels. >> if you can. could have cough up 6,000 dollars. netflix are getting some stats on the binge-watching habits of subscribers. episodes of high energy narratives are more likely to be binge-watched than complex narratives likes house of cards. viewers also tend to saver irreverent comedies. i binabled through house of cards in like two days. >> i don't know if you saw celebrity apprentice. great show yeah. has donald trump called you for
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advice or talked to you? at all? and first of all you are given him some pretty good so far if you have. has he called and talked to you? >> no he hasn't. no. >> no. >> not that i know of. >> no. do you think republicans are happy with their choice? >> umm, we are. but i don't know how -- [ laughter ] i don't know how they're feeling. >> i'm looking forward to watching that tonight. the full conversation tonight show starting jimmy fallon with the president on nbc. >> i can't wait. that will be epic. still to come here on "worldwide exchange" an epic next 20 minutes to come here too before we head to break we're wishing donald duck a happy birthday. i didn't know that was coming next. epic, as they say. made his debut on this kay in
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1934. donald also plays a major role in disney theme parks and actually in more attractions than mickey mouse. >> that's a fun fact. >> i in the final 15 minutes, a focus back on more serious things.
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britain found a role but is in endangered of losing it again. writing, we are useful to the americans to the extent we can convince or cajole our european friends. we cut ice in washington when we are seen to cut ice in brussels to. cut ourselves off from our continent would see us cut down in size in the eyes of the u.s. very interesting point. gee politically. he explored some other reasons why he argues a pull out from the european union would weaken britain's starts in the world. the flip side too this argument. is i think britain's power in terms of geopolitical isn't so much of one of 28 members of the eu. is the fourth strongest military in the world.
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so there are two arguments but that particular point he makes in washington is very clear. if we're just little old britden rather than a whois who can help america change the start in europe we've become less useful. >> and will be interesting to see. >> although obama's intervention probably hurt things more than help things. >> another event i think should be on our radar is the south china sea dispute. and the wall street journal tiled chinas unsafe intercept. the article saying the p larks's provocations come as tensions are rising. while i was in beijing and china for two weeks the chinese foreign minister saying that if the u.s. provokes us we are willing to retaliate. that is geopolitical event that i think is not getting enough
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attention because china is up willing the back away. they right now are claiming 80% of the 200 islands, the region in the south china sea. the sus sending military in response. china speculation they are sending --. >> has huge coverage in the region. doesn't have so much coverage here, right? >> exactly. given the u.s. is trying to exercise or show their american supremacy in the pacific waters. the question have they meddling and is it right? >> those are two must reads. i'm sure there is a third one to come from andrew who joins us from new york with a preview of what's coming. >> i'm thinking what is my must read? and i just went to a jerry seinfeld show last night. and i thought the question he would ask on a morning like this is what would you do if -- do you ever feel like you are forcing it because sometimes you wake up and there is nothing that is a must. what do you do? >> as the segment, it takes a
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huge amount of time to find it. >> to find that must read. >> sometimes there is just nothing that must. there is lots of stuff to read but not always a must. >> are you saying you didn't enjoy the two stories that seema and i -- >> i'm not -- >>en -- andrew. compelling enough. >> it's all compel iling i'm ju suggesting the must part. and maybe after an hour with seinfeld last night. you go through these semantic arguments. it is a series of articles if you read morning money in politico. they have a sequence of stories about elizabeth warren's feelings about whether she should be the vice president to hillary clinton. >> so after what you have been saying there are multiple must reads out there. >> but they are not really musts. few i don't what read them you can can tleemd. if you don't you don't have to. that is sort of the problem. you must watch "squawk box"
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today. there is actually a lot going on. and i'm not joking. sometimes we force it to be honest but today i'm not. we have carl icahn. we have heraldh hamm. peter may a whole conversation about philanthropy with the head of mount sinai. and of course we'll also talk about politics. >> ask carl icahn about china. so many of these hedge fund investors have been getting china wrong. interesting to see if he has any comments around that. >> thank you guys. like this little reunion. >> so do we. and we look forward to "squawk box" which is in 9 and a half minutes time. >> and wall street after the dow hit 18 k, what is most likely to drive trading ahead? john manley weighs in next.
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welcome back to "worldwide exchange." joining us from milwaukee is john manley. very good morning to you. thanks for joining us. is the lesson this week for equity markets at least that fed speak isn't that important? markets really responding more to oil despite all of the changing in sentiment around the fed. >> well i think the fed speaks -- it is important if they say something important. sometimes it is not much of a change at the margin. i think the fed is still very important but this week you really nailed it correctly. >> and expectation for oil prices comfortably above 581 this morning for wti. can that continue throughout the summer? >> i think it can stay here. i think oil prices are pretty much where they should be in terms of looking at the supply and demand and who's made happy or unhappy where the price is.
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for the saudis it is high enough so they get revenue. but probably discourages a lot of exploration. so i think it is the kind of price that is maintainable over long period of time. >> sometimes too much attention is placed on the timing of a hike. what really should be in focus is the trajectory of the monetary policy. with that said what are you expecting from janet yellen. >> i hope we get something. in my opinion the fed is not going to raise interest rates unless they are absolutely convinced it is not going hurt the economy. i would view an interest rate hike from the fed as almost a tap on the shoulder saying good job economy. >> we had a one month low for the broader index yesterday. what is your forecast for the dollar into the summer? will that continue that now soft trend again? >> probably for a while. the way i look at the dollars it
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goes up and down. and that is exactly what it's done recently. the dollars a mechanism. a clearing mechanism for spreading out economic strength. the u.s. is stronger, the dollars stronger. the u.s. is stronger economically the dollars stronger and that transfers to our trading partners so i think the move in the dollars going to be interesting over the course of the summer i think you will see more weakness before it strengthens going into the end of the third quarter but i don't think it is going to have an enormous effect on the equity market, what i look it a. >> international markets continue to be a topic of concern for investors. we look at china. has that story really improved? those inflation numbers this morning suggesting that deflation not as big a concern as one may have thought earlier this year but at the same time those export/import numbers out of o china suggest weak ore i guess demand is not coming back as strong as one would expect. >> that is true. first of all i think china has to be looked at in some context.
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a phenomenal growth story for a long period of time. i think it is a wonderful growth story but can't grow at the rate it has before. they also i think wisely decided to change the shift, the direction of that growth. it was very manufacture and export oriented and that couldn't go on forever. they anticipated problems there and got ahead of them. so i think the central government is going a reasonably good job. i think china is still a growth country and i think the markets can do okay over there. >> there is only one sector in the s&p still in negative territory for the year. that's financials. is this a buying opportunity? >> i think so. we have some very difficult policies to work through this terms of what regulation is going to be. but the group certainly is very well valued. there is a lot of bad news in it already. at some point in time the fed will raise short-term rates and raise them slowly and that will be a positive. >> john manley from wells fargo
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funds. that is pretty "worldwide exchange" today. "squawk box" is coming up next. have a lovely morning. ♪ born with a hunger to fly and a passion to build something better. and what an amazing time it's been, decade after decade of innovation, inspiration and wonder. so, we say thank you america for a century of trust, for the privilege of flying higher and higher, together. ♪
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good morning. the dow back above 18,000. at the same time legendary investor george soros announcing he's getting back in the game but he's not riding with the bulls. he's telling investors to batten down the hatches. doesn't seem like a new story to me about soros. the democrats searching for party unity. bernie sanders heading to the white house today. while at the same time new calls for the gop to dump trump and put a new name at the top of the ticket. that is new i guess. same for six months.
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and just a bit outside. snoop dogg's first pitch missing the mark boy a lot. it is thursday june 9th and "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box." >> good morning everyone. welcome to "squawk box" here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin and the dough back above 18,000 first since april. and the s&p 500 also climbing. just 12 points from its all-time closing high. dow is riding higher but still about 2 percent away from all-time highs. and red arrow this is morning. dow futures down by about 47 points frs s&p futures off by about 7.

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