tv Worldwide Exchange CNBC June 30, 2016 5:00am-6:01am EDT
another special edition of "worldwide exchange." i'm sara eisen finally back at home. >> and i'm wilfred frost reporting live from london. throw back thursday with a missing new theme today since we are an ocean apart. sara, i miss you. >> i miss you as well. i'll see you next week. you're still at the center of the action. let's check on the global markets this morning. still jitters out there from the brexit vote. even with the strong rebound we have seen the dow rally 3.2% over the past sessions. it looks like futures have turned higher. they were lower a little while ago. nasdaq future is up 10. this as the ftse 100, the british stock market wipes out the brexit declines. as for the early action across europe this morning, sort of a mixed picture, but flat for the german dax. up for france. ftse 100 doing not a lot of
anything. political news coming fast and furiously from uk. clearly stocks are in a holding pattern. it is the last day of the second quarter and tend of the second half of the year. we'll be tallies those numbers up for you in just a moment. japanese yen did strengthen a bit overnight. the knee cay that was the bright spot in asia up 2% overnight and shanghai comp ending slightly lower. >> all eyes of course on the pound which is higher. 1.34. the euro stands at 1.11 as we look at things this morning. the note in the u.s., the yield on that right now is standing at 1.531. a little bit of movement there
today. of course maximum movement in the last year. oil prices as we stand this morning, don't forget they have been an important driver recently of markets as well as issues in uk politics and we're just shy of 50 bucks this morning. losing 1%. we've seen oil rebound a bit in the last few days. gold prices have enjoyed a bit of the rebound. >> let's look at some of the one-week charts to highlight the brexit selloff and rebound. the pound tells the story rather nicely, but certainly still down since one week ago. the low was around # 1.32. climbed back up and in between now 1.347. the ftse 100 rebounding above pre-brexit levels. it's flat today. pretty much flat.
the ftse 250 which is of course smaller companies with more uk focus is still suffering. down around 8% over the last week. the german dax suffering swell. more than the ftse 100. is that the fact the ftse 100 is benefitting from the softer pound. the bank stocks still hurting across europe. they've suffered significantly. they've been in the eye of the storm. as you can see, they're down around 4% over the last week. >> the dow is coming off its best session since march. dow and s&p are once again in the black for 2016. on strak for their third straight positive quarter. today does of course mark the end of the second quarter. also the tend of the first half. where we stand now, the dow up 1.of%. the s&p 500 has gained. the nasdaq is down more than 4.5%. the big winner dow joins
utilities. utilities across the board up more than 21% this year. the global market picture here are the year to date returns. the ftse is up almost 2%. the german dax is down 10.5%. french stock market is off. jap japan's knee cay dropping 9% since the start of the year. a stronger yen. shanghai comp is down more than 17%. i wonder if this rally that's starting with the british pound and british stocks and has really strategic ld over into the u.s. sending u.s. stock markets back in positive territory for the year has to do with the fact that brexit is going to be okay for the uk and global economy or the fact that more people are talking about the fact that brexit might not even happen. what are you hearing? >> i think it's more the issue -- first of all i think we should break down what certain markets have done.
ftse 100 has benefitted from the weaker pounds issues. i think some people might be reacting to think that the brexit won't actually happen anymore, but i think that's premature if they do. we just heard from theresa may who had been on the remain side and she made it very clear, brexit means brexit. if that's what driving the rally, it's premature. i think it's more the u.s. equities are not that affected, but i would also add that turmoil across british politics now is at an all-time high so maybe the raims are premature. >> the only thing i would add is we are going to focus on earnings here. earning season gets underway in the next two weeks. we'll see what commentary we get. thousand quarter looked and how there's the federal reserve. this idea that brexit was such a shock to the markets and
potentially to it will system that they could hold off for the rest of the year when it comes to raising rates. interpreting that as a positive. that filters into the u.s. >> indeed. we're going to hear from the bank of england mark carny. that could give an indication of what central banks are thinking in relation to brexit. speaking of the fed, they also released the results of the stress test. most of the big banks passed. among them jpmorgan. bank of america raising the dividend and five billion dollar. wells fargo decided to keep its dividend unchanged. only two foreign banks failed. deutsche bank trust corporation and santander and they're suffering a little bit as you can see this morning in european trade. the fed criticized some parts of
morgan stanley process, but regulators are still letting the bank proceed for a stock buyback and quarterly dividend increase while it fixes the issues. let's get back to the latest here in the uk and the political chaos. today is the deadline day to run for minister. slim it down to two candidates. there will be a wider party membership vote by early september ton two it has been slimmed down to. there are about 140 thousand conservative members who will be able to vote in that. among the contenders, boris johnson, michael gove, the big surprise this morning. theresa may, is favorite at the moment. michael gove, as we said announcing his intention in the past hour. i have come to the conclusion that boris can't provide the leadership or build the team for
the task ahead. quite a swipe at his leave campaigner. in the meantime, here is what theresa may said in a speech minutes ago. remember she was a remain campaigner. >> brexit means brexit. the campaign was fought, the vote was held, turnout was high and the public gave their verdict. there must be no attempts to remain inside the eu. no attempts to rejoin it through the back door and no second referendum. there should be no general election until 2020. >> so sara, of course, theresa may currently the favorite from the remain camp previous making it very clear. no second referendum. no general election. though she said we should wait for article 50 to be invoked next year. >> that is the key here to detangling the uk from the eu and how someone like may would
go about it. someone who campaigned to stay in the eu whether they would appease the half of the country that wants to be inside the eu or whether some would question her desire to do so. >> it's an interesting debate. she was on the remain side without having been expolicely and loudly campaigning for remain. she might manage to get around that issue. she has had tough words to say about immigration. she can tick all of those boxes. we have a lot of candidates. it's highly likely we'll have a remain person versus a leave person, and, of course, boris johnson and michael gove fightinginfight ing out to be the lead contender. >> we'll see what happens in the run up to both. in brussels this morning. britain's decision to leave the european union has unleashed a crisis in financial markets.
similar to the crisis of 2008. saying that issues have been unfolding in slow motion, brexit will accelerate problems and enforce trends that were already prevalent. continuing his mantra here it is so damaging to financial markets to the eu as well. he's been such sort of unexpected voice in this debate. yes, his track record is betting against the british pound, but he has really come front and center on this issue. >> he certainly has another big investor has as well. we're going to get to him in just a moment. meanwhile post brexit plans are in the works. chat by phone today with german chancellor merkel and uk minister cameron. we'll watch for headlines out of that. let's get back to markets discussion based around brexit. jim joins us again. thanks very much for joining us. fascinating times in markets and
of course in british politics as well. post the brexit vote, we saw big fall in the pound. after that you put a trade on which you just closed and made some good gains. >> i thought we would go down to 1.32 against the u.s. dollar and go back up and down again. i think it's not settled in a range of 1.34 possibly even as high as 1.39. you have to be very flexible going when you can. this is not going to be a market of wild swings in my opinion for the next few weeks. we've settled down as i said the other day and the volatility has almost collapsed. >> when we look at the rebound, does that suggest people are now just not concerned about the fallout or perhaps sara suggesting earlier, people thinking brexit is not going to happen. >> the ftse 100 is not represent ichiro of the uk economy. if you look at the ftse 250 it's
down a bit. the ftse 100 benefits from a slight fall in the pound. it was relatively cheep. the u.s. market is not so cheep. it's gone down a bit and will remain down a bit. we're in a kind of status quo situation where i think we got fair vam more or less all the way around, except in japan which looks very cheap to me. >> we've seen stress test overnight. is this a good buying opportunity for the banks as the moment. >> i think it is. particularly loids has domestic exposure. loids is dirt cheap and rock solid and i can't really understand why it's fallen so much. >> you just mentioned japan. using that as a moment we've seen big moments in the yen. is that why it's attractive. >> i think the bank of japan will intervene and depreciate to
1.10 in which case japanese market could go to 18,000 again. japanese corporate is improving the dividends are rising. i think japan looks very solid as an investment, if not as an economy. >> continental europe. >> i would buy the dax at this lechl. it's gorilla trading within an arrow range. >> you're a big backer of the leave campaign. you've previously been a backer of the conservative party, but haven't been in the recent years. does this open up you to back someone once again. >> as far as i can, i will back whoever the leader is because i think there's a good range of choice there. i would say the less well known people like lime fox or crab have no help whatsoever. andrea is in it to improve her profile. she could be a deputy leader. and if i had to guess, i would say michael gove will come out
on top. >> theresa may made a statement she was on the remain side that brexit means brexit. do you think it's absolutely inevitable we lead down that path. >> absolutely not. i think there's a possibility we don't invoke article 50 at all, but it's a good thing not to invoke it at the moment. you have the negotiations. if you start the stopwatch, it's really inevitable we're going to brexit. i think an associate membership is very likely for the uk. probably one of the reasons the markets have displayed such phlegm, you know, in these circumstances. it's not the doomsday scenario. >> thanks so much for joining us. love to see you as always. >> pleasure. >> sara. >> when we come back, nigel fren well the british shine wald. as we head to break, here's a look at where we stand on this last day of the second quarter: stay tuned. you're watching "worldwide
some light on what's going on. before we go through the brexit negotiations path, what do you think people in the united states are thinking about accomplish politics right now. of course you used to be ambassador over there. >> i think they're bewildered and worried about what's going on. just a question of looking at our relationship with europe, people might say that's technical we don't need to worry about that, but what the people feel instinct i'll about the british situation, it's quite stable. there is a united kingdom and it somehow balances the interest of the other part. a lot of the underlying assumptions by britain have been blown away by the decision last week. we're already under strain because the politics have become sberl twined in the last few years. on the uglier side of the dark forces here which are more zen phobic and more anti-foreign.
it's not confined to britain. this is something which is in america and in europe as well. it's an uglier side of britain we don't like to see. >> how unstable is british politics right now. >> at the moment it's very unstable. it's very unclear day by day the way things are going to go or the choices who leads the party and who is in the most senior position how that will affect issues that are long last chg will go long beyond the term in office of the people we're talking about. that is what worries me as a former public servant is how you match our long-term interest to this turbulent period of short-term politic. >> steve: the rhetoric coming out of the eu summit, which i just came back from, was one of defiance. they made it clear there's not going to be special status for britain in these negotiations. of course youhoused to have to
do those sort of negotiations when you're ambassador. how did you have is that period going to be for the uk or will it come together. i don't think it's defined. i think it's setting out some very clear tram lines. they're going to be in negotiation too. they will have a very strong position. it's 27 negotiating with us. it's very different from a normal european negotiation. they were setting down some markers, putting some lines in the sand, but as the french finance minister said yesterday, ultimately everything is on the table. it depends what our new government, not a completely new government, but a new prime minster and membership of the cabinet what they bring to the table. that is going to take some time and the wiser heads in europe, particularly the germans and others who are more instinctively understanding of british politics, i think that will prevail and be given a bit of time to sort ourselves out before coming into european
negotiations. i think these are early days. some taking other position is inevitab inevitable, but i would expect and hope the european will understand we need to go through this period of reflection. >> mr. ambassador, ahead of the vote there were all sorts of warnings from former generals, even paulo orlando th even president obama. do those warnings take hold now or do you think there's an effort to down play them and not a big deal and just fear mongering. >> it definitely wasn't scare mongering. i think those things will be correct and take time to work out. there's no doubt that if britain is detached from the european union and i hope that it isn't, because i hope we can construct a relationship while out which nevertheless is close to any corporation with the rest of the european union, the reality is the influence in the rest of the
world will decrease and our ability to work collectively and actively with our european colleagues will go down. that is up for grabs as part of the negotiation, but it's not a cliff edge. it's something worrying people in our government which will require a different style -- it looks like we just lost that shot. unfortunately we'll try to get back with wilfred and the ambassador. still to come this morning, the road to rio. a well known swimmer making history one stroke at a time. check out fiezer, topping the list of 18%. boo we'll be right back . .
>> welcome back to "worldwide exchange." it is official, michael phelps will be headed to rio. he is the first qualifier for five olympic games. phelps could compete in as many as six events in rio, looking to add to his 18 gold metals and 22 metals overall. we're getting excited here for the big games, wilfred. >> absolutely right. awesome performance there. still to come on worldwide
exchange, top stories including a battle to control britain. member of parliament and well-known historian joins us with his take on what to expect. but first the end of the quarter. apple tumbling the most, down more than 13%. nike isn't far behind. some 10% its. worldwide exchange is back in a couple of minutes.
good morning. the good, the bad, the ugly. the winners and losers of the first half of the we're, coming up. financials in focus. banks on the move. following the feds latest stress test. the names to know, straight ahead. plus, political chaos. well known conservative michael gove announces he's ready to challenge boris johnson. it's june 30, 2016. you're watching "worldwide exchange" on cnbc. >> we've got a theme this morning with the music. welcome back. i'm sara eisen. >> and i'm wilfred frost in london. it's throw back thursday and we're throwing it back with a the missing you theme since sara and i are an ocean apart. >> i'm back over the weekend.
>> let's check in on what global markets are doing this morning. futures right now pointing to a slightly h lly higher open to te of about 50 points by the dow. the nasdaq by eight or nine points. the post brexit bounce continues this morning. in new york the pitch is a little bit more mixed we have some markets slightly down. one or two in the green. we have those coming for you right now. european trade is pointing -- there we go. france and the ftse 100 higher. asia saw a couple of strong pempss. hong kong in particular was up 2% where as the nikkei was flat. >> this might have something to do with it: oil has been firm lately. given some back, down a percent right now. brent just over 50, but oil is actually headed for its best quarter since 2009. it has climbed all the way back
to $50 a barrel and we know how much the weaker oil price was a draeg on stocks last year. as for the treasury note. pushing the yields higher we're now back firmly in the 1.508 level. as for the dollar, the british pound is stronger and that is a positive sign. we're back to 1 .34. remember the levels to watch, below 1.32 is what we got this week. that was the 1985 low on the accomplish pound. slowly climbing back up. the euro going back to 11. also the japanese yen right now is a bit stronger. that does show that there are some concerns in the marketplace. there's the gold price for you. sit weaker by half a percent. >> china central bank reportedly willing to let the currency fall to 6.8 per dollar this year to
support its economy. this is all according to reuters. the yuan is already trading at a low. expected to control a further decline in the currency as it is aware of criticism. china needs to protect itself from the rush of capital outflow that shook the economy. will investors tolerate a weaker yuan. in corporate news the fed releasing results of the latest stress test. most big banks passed and are boosting shareholder payouts. announcing a 10.6 million dollar buy back. bank of america announcing a repurchase. city group upping its dividend from 16 to 5. $8.6 billion buy back. only two subsidiaries of foreign banks failed.
deutsche bank and santander holdings u.s. the fed did criticize some planning, but regulators are still giving the green light to let the bank proceed. and a quarterly dividend increase. it was a pass on morgan stanley with some conditions in the share price just slightly lower this morning, wilfred. >> sara, yes, indeed. the banks have focused. of course the political scene here in the uk which frankly is utter chaos at the moment. today is the deadline for conservatives to declare their contention to run for prime minister. then they will slim it down to two candidates. there will be a wider vote early september. and 140,000 members will get to vote on that. among the conservative leadership contention, boris johnson, michael gove who challenged boris johnson this
morning, theresa may, steven crab and lie yam fox. not just from the con sefbtive party, also on the labor party side in disray at the moment. joining me now is nick thomas simmons. he's a member of the parol. party and written books on establish political history and had formerly taught. thank you for joining us. >> good morning. >> the level of turmoil in british politics, is it unprecedented. >> it is fairly unprecedent i think for both main political parties to be in a position where they are looking at a change of leadership. this reminds me i think of when we had these big events in establish politics that do produce shocks wheth. these events do tend to produce periods of uncertainty, however,
one would expect these periods to pass and a period of calm to follow. >> the focus now is who is the next prime minister. once that happens, what is the process in terms of britain pulling out of the eu. do you expect article 50 to be invoked quickly? >> i think everything sup at the moment for debate. clearly it's in the hands of whoever the new prime minister is who is going to be elected. it seems on the ninth of september as i understand. we'll have to see what sort soft stores the conservative candidates all set out to what precisely they want to do. of course the reason this is so uncertain is because this has never been done before. >> absolutely right. now, of course, you're a member of parliament in whales. which voted to remain as scotland did. >> voted slight to leave. >> my apologies. we look around the country right now. particularly the issue in scotland. do we think it's inevitable the
united kingdom itself with break up. >> that's a very serious risk at the moment. i think the leader of the nationalist party has made clear what she is seeking to do is keep scotland in the eu. unfortunately it was always going to be a risk if there was a vote to leave and scotland was to vote in the other direction. >> we focused on the cob servetive party. you're a member of the labor party. the second biggest party and this week you resigned because of disbelief of the leadership of jeremy corbyn. >> i was very loyal. i respected the mandate he was given by party members last year. simply after the eventings of lags weekend. i felt his position was unsure. when i see statistics saying that there are maybe 30% of people who voted labor at the 2015 election who perhaps won't
do so now, that really did send alarm bells ringing for me. i feel like it's a conflict of loyalty. the loyalty i had to germany, but the loyalty i had to my con sitwents must come first. >> summing things up. particularly in the u.s. given the brexit vote. given the turmoil across all the parties we've touched on in the uk. has britain taken a massive step backwards. >> we'll have to see in the long-term. it certainly has taken a step into uncertainty. to go into the leadership. i hope that consensus will emerge in due course and can enter a more stable period. >> pleasure to see you. nick thomas simmons, political historian here in the united kingd kingdom. >> beyond british politics. we'll be watching some corporate
news. yahoo holding the animal shareholder meeting. joining us with three things to watch. this should be interesting with yahoo up for sale. >> this event will also be streamed live. here's what to watch. first investors will likely have plenty of questions for meyer as their eager for the company to sell core business. most assets are still in asia. investors argue the core internet business is holding back growth. that includes yahoo's website, apps, blogging and photo sharing sites. verizon, at, and t are said to be interested. yahoo is expected to make a decision on bids in the first week in july. a second the board are expected to revamp the slate of directors in april. meyer called a truce with value resulting in investor adding four new members to the board.
the third thing to watch. shares are down 6%, but closed up 2% wednesday. >> will be good to watch. thank you. now to the top trending story of the morning. viral video alert here. president obama receiving a standing ovation after addressing the canadian parliament yesterday. chanting four more years after what is likely to be president obama's last time visiting before leaving office. take a look. >> thank you very much. thank you. >> four more years, the chant there. right. amazon is finally spilling some details about its second annual
prime day sell. on july 12, will offer prime new deals every five minutes compared to prime deals every ten mince. calling the sell the biggest amazon event ever. >> there we go. the wife of seth curry, is going to be launching a new food startup. it will deliver seasonal ingredients on a weekly basis. recipes inspired by meals she cooks for her family, including homemade baby food. maybe it will be the secret to why seth curry is so good on the court. >> of course under armor has benefitted hugely from a curry endorsement. >> it does feel like there are a lot of home delivery meals. martha stuart also doing it. >> i'm afraid i don't know because i don't cook much. >> same here. >> still to come on worldwide
love. i didn't pick it because it had the bachelor in it. frank writing very colorfully about the options britain has to partner up with different nations. he concludes that britain is suddenly leaderless while canada suddenly has a leader. justin try doe. he can expand his portfolio to two continents. the monarchy survives in canada. a tongue in cheek look at nations that could partner with britain. not that britain needs a partner now. maybe britain can become the 51st state and donald trump and boris johnson can share a ticket this election. >> the results are interesting. i love that you like the bachelor so much that you chose a must read based on the word being in the title. i agree it's an good read on this topic. my pick is in the financial times it's titled johnson, may
and crab. interesting summaries of what boris johnson and theresa may stand for. the author saying boris johnson loves europe and immigration. his pitch makes the clear deliverying plenty of entertainment on the way. they might feel it's time for a leader who is not an old atonon. interesting point there. theresa may who is favored to win. she's is tech cattic safe pair of hands. she'll pitch herself while keeping the show on the road. if we look at betting markets right now. theresa may the clear favorite. the second favorite no longer boris johnson. it's michael gove who threw his hat in the wring unexpectedly this morning. he is the second favorite to theresa may right now. along way to go of course in this battle. >> you know what i'm going to
say, don't trust the betting markets. they were dead wrong on the brexit vote. anything could happen. i love that you're there following the inner workings of british politics. my question is who is the safest bet for the global economy and the markets as they try to leave what is going to be arduous and difficult transition here. >> i would say the most interesting thing on that front is theresa may who is the favorite and is on the remain side remained very clear this morning in her speech that brexit means brexit. d there will be no extra vote. no general election. so to sort of just reduce those issues, people have said over the past couple of days we night not get a brexit. she's the favorite. she's on the remain side and she says brexit means brexit. she did however say article 50 won't be invoked this year if she's prime minister. that's an interesting take if markets have rallied. anyway, we are approaching the top of the hour. so that means the team is getting ready for "squawk box"
and andrew joins us with a preview. >> we're looking at today, we have a number of big guests on top. senator george mitchel is going to join in 7:00 hour. talk brexit with him. and the implications of that. i should tell you in the 6:00 hour we have mark grant. here's here on the set. something we don't always get. he has serious opinions on what's going on in the market right now, especially related to brexit. in the 8:00 hour we have gene sperling. that paul singer made out in aspen. we're going to talk to him. then we're going to talk zika because i'm headed to brazil latt later this summer. i'm hoping he's going to swaj in oi my fears. i've done some research.
i'm not that fearful. >> insect repellant. >> i think we may be overstating the sezika thing, but we'll see when we talk to toe bi. >> it is time for break. in the meantime have a look at the performers. signet jewelers down. we're going to talk about the path forward with richard claire da next. every time i drive. ...want my number? and cash back for driving safe. and the power to automatically find your car... i see you car! and i got the power to know who's coming and when if i break down. ...you must be gerry. hey... in means getting more from your car insurance
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and u.s. stocks. >> you know, i don't think it should be a game changer for the u.s. economy. it's obviously a very big deal for the uk, but our baseline view has consistently been this is really more of a uk issue than a global issue. the we had a big repricing friday and monday, but the last couple of days the markets have settled down. we had a rebound. that's the baseline view right now. >> i guess people are trying to figure out richard if the rebound is for real or just sort of the end of quarter window shopping. >> yes, well, exactly. time will tell, but fundamentally the global economy doesn't look all that different today than it did a week or a month ago. you have very accommodative policy. this probably does put the fed on hold a little bit longer than would have been the case otherwise, but you look at the oil market. you look at the vix. you look at a broad range of
indicators. it does look like the markets are coming to the veal at point. . you know. if you had asked me a month or two ago. i would have said of course before brexit sounded very tentative. she referenced uncertainty about the global economy. i my baseline view is we probably get a hike this year. this is a very data dependent fed and, certainly, concerned about the strengthening of the dollar. >> the flip side argument to you view that the u.s. is okay after brexit, of course, is that the spillover affects don't just hurt the uk, but they hurt the eu as well which is a critical trading partner with the uk and the eu is barely going. doesn't have cushion for growth and that of course will spill over into u.s. corporate earnings and the u.s. economy. >> that's absolutely right. there's a range of estimates.
sort of in the ballpark to growth. we're only growing at 1.5 anyway. so your point is a good one. i think the real, you know, systemic risk would be if we get an outbreak of broader contagion and reference da. that is a left tail risk, but does look like for now that's not the baseline outcome. >> even if it's not the baseline, how do you hedge? how do you manage the reality of the risk as a an investor. >> that's a great point. we referred to this as a world insecure stability. it appears stable, but it is fragile and insecure. you do need to factor that in. you need to look at asset that are not overdependent on bank. you need to preserve capital as much as you focus on learning a learn for capital. >> let's talk about the u.s. over the next few weeks.
we're going start to get earning season in full swing. we're also going to get another jobs report after what has been a pause in the job creation that we've seen. what will you be watching for. >> payroll friday is always a big event. payroll friday will be important. as you mentioned, we should get a rebound on second quarter growth. a lot of mad ls are tracking 2.5% growth up from 1% in the first quarter. those two will be key, sara. what do we see on payroll friday and what do we get later in july. if we get a rebound in jobs and we get growth in 2.5% range, i think that's a positive. if we get disappointments in those numbers, that's obviously going to have an impact on the global outlook. we do get a rebound both in jobs and gtp. >> you sound optimistic. we'll leave it there.
>> okay. >> wilfred, just bringing it back to the markets here. we are looking at u.s. futures rallying. that could be a third day in the a row of gains. that puts us 90 pointds away from breaking even fg the month of june which was a rocky one. >> yes, the ftse 100 climbed above its pre-brexit level, but if you look at the ftse 250, that smaller uk companies. that's still down. the likes of the dax in europe still down. so don't think brexit has passed us already. also watch mark carny. he speaks at 4:00 p.m. local time. interesting to hear what he has so say relating to brexit. >> i would say along with carny, the central bankers have stepped up. they've at least communicated they are there watching and ready to provide and help overall sentiment. even if they're not taking action. they're standing ready and that's enough to give
confidence. >> absolutely right. that is it for worldwide exchange this morning. "squawk box" is coming up live from new york. who owns stock in this company, that builds big things and provides benefits to this woman, with new cabinets. they all have insurance crafted personally for them. not just coverage, craftsmanship. not just insured. chubb insured.
good morning. the sun came up again. stocks are in rally mode. the s&p coming off the best two day point gains of the year. now we're heading into the final session of the first half. the days are getting longer too. stress test report cards almost all the big u.s. banks getting passing grades from the feds so queue the dividend heights and stock buy backs. and most decorated athlete in olympic history is looking to add to his legacy, michael
phelps. >> it's thursday, june 30, 2016, and "squawk box" is live right now. good morning, everybody. and welcome to squawk box here on cnbc. joe, welcome back. >> welcome back. >> wake up! he doesn't have a mike on. >> let's take a look at the u.s. equity futures this morning. we are continuing the rally. dow futures are up this morning after ending up over 2.70 points. that followed gains from the day before. you have seen a very sharp comeback. >> biggest gains. >> biggest gains we've seen since february. >> no bigger than february. >> point wise, not percentage-wise. >> if it bleeds, it leads. >>