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tv   Worldwide Exchange  CNBC  August 29, 2016 5:00am-6:01am EDT

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good morning. the dollar strengthens following interest rate reassurance by the fed. >> employment set to dictate trading this week on wall street. >> your money and your vote with one month to go until the first presidential debate. trump still stirring things up on twitter. it's monday, august 29th, 2016. worldwide exchange begins right now. good morning. happy monday and welcome to worldwide exchange.
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i'm sara eisen. i'm wilbur frost. we're paying homage to beyonce. she officially has the most vmas beating out the other songs. >> let's check in on the gloeblg markets this morning. coming off of the down week for u.s. stocks. all three averages closing lower. bulls rattled on friday by talk of interest rate hikes out of jackson hole. from janet yellen and stanley fischer. futures under a bit of pressure. not doing a lot this morning. down 1. s&p up .01. nasdaq futures down 1. friday was a big day. we did break out of some of the ranges. that includes the ten-year treasury note. yields shot up on friday over
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the 1 .60 level. multiweek highs there. after that yield for the two-year yield which is closely tied to a fedex increase. she said the case is strengthening for a rate hike. fischer clarified in remarks that means september is on the table. two-year rate hikes is on -- >> showing a slight hawkish overall tone from janet yellen. let's look at european trade. london is closed. it's the august bank holiday. the unofficial end of summer in the uk. with that, we can expect to see volumes in europe start to pick up meaningfully for the rest of the week, even if we have to wait until after labor day. we are looking at declines around about half of a percent in part reacting to the comments from janet yellen late on friday. asian trade has seen a negative
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trade for most markets other than the any key. still surging ahead. this comes off the back of a weaker yen. not so much today but late on friday. the yen weakened -- [ overlapping talking ]. >> there's more scope tore easing. sometimes the market likes it. sometimes it's in -- as for the broader market. oil starts the week under selling pressure. down 1.3%. importantly holding that $47 a barrel level. $47.03. the focus shifts, not shifts. been all about the september meeting of opec members. can they agree on production freeze. also, the weaker dollar lately has let oil rally. we'll see if the dollar changes direction and whether that puts the pressure on oil as well. >> stronger dollar against the yen giving japan breathing room overnight. stronger dollar against the euro continues this morning.
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now we're below $1.12. rate hikes very much alive. against the stronger dollar. 131.05. with the stronger dollar, weaker gold prices. gold sold off sharply on friday as a result of this trade. down .3 of a percent. >> keep an eye on the pound as well. holding a cabinet meeting this wednesday. starting to form that policy after the summer break. be fascinating over september when they start to announce what their formal plans are on brexit. >> she can announce she's trickling article 50 without parliamently approval, right? >> that's a stat we think is happening. the conservative party and the sources, seems today that's what they'll do. they're in disarray at the moment but it's unlikely they'll have much traction. >> economic data paints the picture of a resilient uk.
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for all of the doomsday scenarios, it hasn't happened yet or the experts are totally wrong. >> business investment was very poor, whereas retail spending was pretty strong. you wonder how much of that retail spending is tourists in the summer, weaker pound. it might not be sustainable and business investment might have a sign of what's to come. >> we'll watch the other bit of economic data. look for july, personal income and spending here stateside. that's coming out later today on tuesday. we'll get the monthly -- the employment report, chicago tmi. -- second quarter productivity and manufacturing index. wraps up with the jobs report on friday. another light week in terms of
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earnings. abercrombie & fitch, and lululemon. loud noises at los angel panic as many confused the sounds of gunshots. passengers at lax were seen running from terms terminals after police responded to multiple 9/11 calls from many locations at the airport around 11:45 p.m. eastern time last night. conducted two sweeps of the airport and determined that reports were unfounded and there was no shooting. >> thank god. now to today's corporate news, carl icahn turns out bought more than 2 million additional shares of herbal life late friday. the billionaire investor may have been interested in exiting his person in august. they were working to find a buyer for his stake in the nutritional supplement company. nothing materialized.
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icahn denies he attempted to sell his stake rejecting claims in an interview on friday that he had been offered some of icahn's shares. icahn didn't dispute that he recently considered selling. he did -- it amazes me that a guy who hasn't any knowledge of my internal investment thinking believes he's in a position to go on television to tell the world what i am thinking. this is the latest chapter. chapter 9 on the icahn stakes? the debate over herbal life. it looks like -- >> turned sour again. >> this captivated wall street on friday. it continues. speaking of icahn, he will be a featured speaker joining a lineup for the sixth annual delivering investor summit produced by cnbc, an institutional investor and hear from treasury secretary jk lou,
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ray dal yoe of bridge water. others as well. this is taking place september 13th in new york city. you can get more details and tickets. stocks to watch today. roche says the emergency use authorization for the zika virus test. the swiss drug maker says the diagnostic test is easy to use and allow doctors to quickly detect the virus. no real move in the share price in swiss trades today. >> mylan ceo, told about 100,000 -- sold about 100,000 shares earlier this month for a profit of more than $5 million. the transaction took place august 9th. the same date mylan reported earnings. but before the controversy over the price of the epipen blew up. mylan says it was part of a pre-determined stock sale. shares are flat today.
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cholesterol drug met targets. they're for patients who don't respond to statins commonly prescribed for the condition. >> mylan, it continues to get worse and worse. yes, she could not have known there would be a massive public outrage from the epipen price hike. but the fact that she sold shares right before it plays into this idea. she got a raise over the same period of time. she did a tax -- >> you continue to look at that sector. either way, which ever way the presidential race goes it's up against it. in a way that the financials are up against it. but they've had tough -- for the laes decade. the change might not be as bad. >> good point. the s.e.c. reportedly paid a whistle blower nearly $4 million for detailed information into a
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probe into alleged bribery of asian and african officials. the company settled the case last year, paying $25 million to resolve charges that it violated u.s. bribery laws. shares of alstom trading high in europe. the french company winning a contract on friday to build 28 new high-speed trains for amtrak in the united states. something desperately needed. >> indeed. the union that represents most canadian auto workers has voted for a strike mandate. meaning workers are in a position to walk off the job if the two parties can't come to terms. this bolsters its position in contract negotiations with the big three u.s. car makers. the union called yun for representing more than -- auto workers, chrysler and ford to invest more in the province of -- when we come back, coca-cola achieving a milestone that no other fortune 500 firm has. how the beverage giant is doing its part to replenish the
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world's most vital resource. this is a new announcement first on cnbc. we spoke to the chief sustainability officer of coke. stay tuned. you're watching worldwide exchange on cnbc. it's scary when the lights go out. people get anxious and my office gets flooded with calls. so many things can go wrong. it's my worst nightmare. every second that power is out, my city's at risk. siemens digital grid manages and reroutes power,
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basically flat in the pre-market this morning. just down around .1 of 1%. oil prices volatile the last month. moves of 1% become the order of the day. we were down about 3% last week for oil overall. that was the first decline in around about one month. we are slipping by 1% again today. 1.3% to be precise. but we are much closer as you can see to 50 than 40 where we were around about three or four weeks ago. 47.03 for wti. coca-cola first company to replenish all of the water is uses chlt the chief sustainability fehr sfor coca-cola is here. tell us, is this a game changer for the food and beverage
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industry. >> good morning. >> sar is it is. we're excited to replenish more than the water we use. it's historical for us. 337 billion liters of water. the fact that we're the first fortune 500 to do that. it's been a great rewarding success for us and many other partners as well. >> we don't do enough stories on this at the sustainability efforts. i know you and others are going through on conservation of water. tell us why you guys think this is a big deal for investors who pay attention to profits and why it's increasingly becoming one of the key business priorities at a company like coke. >> this is a natural resource we share. it's important to have access to safe, clean water for the communities in order for us to
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be able to work and operate in the local areas. for us, water is our number one most critical ingredient in our beverages. we've used over 300 billion lithers of water and replenished 337 billion in the initiatives. for business, it's important to understand the impact on society and how we can work together to ensure that as we know water is a critical resource under pressure. many communities are going to be facing serious issues over the next several years. what's the role that corporate america can play in helping to partner with community to solve the critical issues in order for us to continue to grow our business. and to be successful and partner in these local areas. >> what exactly does replenish mean? is it geographically matched? are you putting back where you're taking it from mostly? >> so it's not a one-on-one. that's why we're still on this journey. a lot of people say are you
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celebrating? is this all about the success? well, i say that this is a time of caution and to drive others to act as well. because we know that, while we're replacing 115% of that water, whether that's wastewater treatment, reusing the water we use and building programs around different local community access points, the yanks i river in china or the reef. it's important to know that the journey is really just beginning. we need people to do more, including ourselves. so we are taking a moment to pause and celebrate today, but we know the journey is still under way. we have a lot more work to do. >> how much does this all cost? >> well, we've spent, since 12004 over $2 billion. that's been investing in our own manufacturing to change how we manufacture using less water in our business. it's also the money that we've put into investing in communities with different ngo partners. partnerships from the wwf,
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nature conservancy and all the different organizations around the world are who are implementation partners who help us do this to make it operate. as well as partnerships with the local governments. >> bea perez the chief officer with coca-cola. it's an issue increase lg that mat toers consumers and to investors. coors has done a lot of work on this and a lot of the food and beverage industry companies especially have been trying to. it's not a matter of doing good but a matter of necessity. >> the biggest ingredients for their drink. still to come, the presidential campaigns ramp up before the debates begin. we see those face to face clashes. we'll get the latest from washington as donald trump get set to address one of his key proposals on wednesday. before we head to break, here's
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the national forecast from the weather channel's kelly cass. good morning. sara and wilfred. >> in the meantime, we're watching out for showers and storms over florida, tampa, saraso sarasota. watch out for rain in texas, dallas a hot day for you. 92 degrees. hot and humid across much of the southeast with the temperatures well into the 80s. new york city getting up to 90 degrees. hang in there. we do cooldown later in the week. we're tracking another system moving across the plains. otherwise dry for the west coast. 79 beautiful degrees in seattle. little warm. for the interior sections of the northwest as well as the southwest. as you can see, temperatures well into the 90 az and triple digits in parts of arizona. that's a loog at the national forecast. we'll be right back.
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expenditures this morning capped off by jobs report on friday. in the currency market, driving the direction this morning. bigger moves on the -- increasing fed interest rate hike talk from janet yellen and
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stanley fischer on cnbc on friday from jackson hole. if we can look at the dollar against the major currencies right now. you're seeing a stronger dollar against the japanese yen. 102.19. breathing room for the japanese authorities. it's stronger against the euro as well. back down below 1.12. this is the highest treasury yield since back in june. >> indeed. that follows a move against the yen on friday as well. let's move on to politics with just about a month until the first presidential debate. donald trump and hillary clinton are taking a day off from the campaign trail. trump is still making news announcing he'll make a major speech on immigration this week. tracie potts joins us with more from washington. tracie, good morning. >> hi there. good morning. while he's preparing for that, he's getting ready for the debate coming up now in less than a month. turns out trump and clinton have very different ways of getting ready for that face-off.
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>> hillary clinton has more fundraisers today and tomorrow. she raised over $11 million sunday amid debate prep. advisers say she's studying policy, shortening her answers and preparing for the unpredictable. >> well-behaved modest trump. i doubt we'll see that. kind of off the rails trump. >> forces say he's less formal preparing to discuss issues than mock deebts. >> he won't prepare the way hillary does which is locking her in the room and cramming her head with binders. >> hillary clinton's corruption has been exposed again. >> trump new web ad targets e-mails and state department meeting with clinton foundation donors. >> when republicans meet with their donors, they call it a meeting. the others call it a conflict. >> in a predominantly black community at a church in detroit saturday, wednesday in arizona he's giving a major immigration speech after confusion about
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whether he deport undocumented immigrants or let them stay. >> no path to legalization, no path to citizenship until they leave the country. >> trump said he would work with law-abiding immigrants who have been here for years. so he gets a chance to sort all of that out, clarify it on wednesday in arizona. trump tweeted about the speech overnight saying that it will be a major speech. that he's expecting a big crowd and they're already looking for a bigger venue. tracie potts thank you for the update. we'll watch for it. speaking of trump's tweeting, he's getting backlash of the fatal shooting of dwyane wade's cousin. the 32-year-old was accidentally struck in a gang-related shooting in chicago's south side while pushing her newborn in a stroller. trump taking to twitter to write "just what i've been saying, african-americans will vote trump." backlash broke out on twitter with michelle williams and don
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cheadle speaking against him. the republican presidential hopeful -- he continued his push to appeal to african-american voters. that's really been his message lately in the last week and a half or so. he tells them what do you have to lose? absolutely right. be interesting to see if the immigration speech changes the movement in terms of what people are thinking. to singapore, there are now 41 confirmed cases of zika. those cases were locally transmitted and they expect to identify more in the coming days. the country's health ministry says most were among foreign construction workers. over seven infected had recovered. none traveled recent to the affected areas. the first case in may brought in by a middle aged man who had been to brazil. commercial drones go into effect today. they must pass an aeronautical exam before allowed to fly. they won't have to get a pilot's
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license which was a point of contention. under the rules, drones must be under 55 pounds, they cannot fly at night or higher than 400 feet. they have to remain in visual contact with the operator. the new faa rules include limits to hamper the arrival of drone services such as package delivery, which amazon and others have been seeking. >> still to come, the top stories and global market action. plus, spotify founder and seep owe tied the knot in italy this weekend. you won't believe who was on the guest list. stay tuned. you're watching cnbc, first in business worldwide. gilman: go get it, marcus. go get it. ...coach gilman used his cash rewards credit card from bank of america to earn 1% cash back everywhere, every time. at places like the batting cages. ♪ [ crowd cheers ] 2% back at grocery stores and now at wholesale clubs. and 3% back on gas. which helped him give his players something extra.
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good morning. the dollar strengthens following interest rate reassurance from the feds. >> trading this week on wall street. kweezing out every drop of lemonade. beyonce brings down the house at the vmas and makes her queen status official. it's monday, august 29th, 2016, you're watching "worldwide exchange." good morning. welcome back to worldwide exchange on c nx. i'm sara eisen. welcome back to wilfred frost after a week of vacation. >> a rare week. >> rare months of august.
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>> you're here for the rest of the year. >> as indeed no doubt you have as well. that was calvin harris singing us in who made best male video last night at the vmas. he failed to thank his swift, taylor swift. no surprise. other -- let's check in on the global markets this morning. futures pretty much flat. down about .1 of 1%. last week we were shy of 1%. volumes picked up on friday as we heard from janet yellen and saw a hawkish tone. the expectations of rate hikes coming forward a little bit. that was shown more in the bond market and the equity market only a quarter percent of -- down.1 of 1% in the pre-market. reacting in a similar tune to
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the speeches late friday as we saw in the u.s. down a little bit more than expected perhaps. germany down 0.8% as is france, italy. the uk is closed today. the august bank holiday weekend. asian trade for the most part was negative. very strong in japan. we saw yen weakness today but particularly also on friday. this is the first time the market has had a chance to react to that. >> as for the broader market, oil sold off last week and continues to be under selling pressure this morning. hovering around the $47 level per barrel on wti. they're now up 1.3%. same kind of decline for brent. it's just below $50 a barrel. 49.27. gas prices under pressure as well. action in bonds. finally on friday after what was tight range-bound trading, pretty much all week long and yellen talked about a strengthening case for hikes. and then fischer on stanley fischer the vice chairman on
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cnbc talked about explicitly september on the table and two rate hikes. we're looking at the highest levels since back in june. >> interesting note to see that the 30-year moved in the opposite direction. certainly the reaction on friday was one of expecting rates to go up earlier than expected. it's also clear that over the course of the whole yield curve, yields are anchored across because of low yields around the rest of the world. even when yield go up on the short end, it's likely to see if flattened as opposed to shift up. yields elsewhere in the world are unbelievably low. >> set to be that way for a long time. nobody is expecting robust economic growth. there is a lot of action with the u.s. dollar stronger against the euro, the pound and the japanese yen. as wilfred mentioned providing breathing room for the japanese authorities. back up to 102 on dollar yen.
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if the fed talks an interest rate hike and if the data confirms that we're on a better path, jobs on friday, consumption today, manufacturing later this week, then potentially you could see the dollar start to strengthen. gold gives back gains. it sold sharply. down about $4 on the back of that strong dollar. that's really dominating the start of the week. a three-week high for the u.s. dollar against the japanese yen today. we're wondering how that's going to impact the rest of trading on wall street and around the world. we're joining by managing director and cnbc con strib trib tore. >> we wake up with this big move on the dollar continuing friday's rally. if the data continues to point to strength for the u.s. economy, is the dollar set to be on a higher path from here? >> i think you can take a step back. you look at it from a weak view. i do believe the dollar is set
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to move higher. friday's move has taken the greenback to important resistance levels. dollar yen for example, still floating with 102. we have dollar cad with 130. euro dollar as support at 111. so i think that there could be a shallow correction in the dollar. at least that's what severyn hoping for to give investors a better price to buy the greenback against the major currencies. at the end of the day, yellen and fischer have made their message clear. i'm still skeptical about wornd e. whether or not the fed will deliver in september, i think we're going to see more upside momentum in the dollar, particularly ahead of -- payrolls. i believe if you see a dip in the dollar, jump right in. should be moving upwards. >> what did we learn from other central bankers at jackson hole, particularly those experimenting with negative interest rates
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which many experts are saying isn't working. what sounds were coming from them whether that experiment will continue or whether they have to backtrack on it in the future? >> i think we had a lot of frustration from global policy makers. we're committed to the idea that their efforts will work. they're starting to realize or put greater pressure on their local governments to come up with fiscal stimulus. because negative interest rates, all of the bond purchasing prachls aren't stimulating growth as much as they would like to see. they really need the combination fiscal and monetary stimulus to move things in the right direction. frustration stands in contrast with the fed who feels confident that the economy and jobs will improve. that's one of the big reasons why they've completely set a bottom in the u.s. dollar. >> some investors might be having deja vu. last -- the dollar very strong
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last year, pretty much all year long. that hurt emerging markets. current sis sent them into a tailspin. it hurt the economy there. how strong does the dollar have to get before we're at global worry levels again and do you see that happening if the fed does keep talking up interest rate hikes? >> i think it's a risk. greater risk if they're serious about raising it twice this year. i think they're going to raise it in september and done for the year or wait until december. one rate hike that i don't think will cause -- if they're serious, it could. -- >> kathy, thank you for that update. kathy lynn of -- corporate news, carl icahn bought more than 2 million
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additional shares of herbalife. he may been interested in exiting his position. jeffries and ubs were working independently to find a buyer for icahn's massive stake in the nutritional supplement company. nothing materialized. in a statement, he denies he attempted to sell his stake and rejected claims by bill akman on an interview on cnbc that he was offered some of icahn's shares. icahn didn't dispute that he recently considered selling but he blasted ak man saying it amazes me that a guy who hasn't any knowledge of my internal investment is in a position to tell the world on television -- the war of words between them again. >> what did you say, it's about chapter 9 of the story. how many chapters will it go on for? >> 15 chapter story, we think? >> a long way to go. >> speaking of carl icahn, he
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will be one of the speakers for a summit produced by cnbc, an institutional investor. we'll hear from treasury secretary jack lew, ray dalio of bridgewater among big titans of the industry. this is september 13th in new york city. for more details and tickets, you can go to delivering alpha.com. they did famously hug it out at one of the delivering alphas. >> do you think it will happen this year? >> in entertainment news, moviegoers turned out in droves to see a late summer thriller shocking the box office predictions. landon dowdy has the predictions for us. >> welcome back. horror movies aren't so scare when i it comes to success at the box office with several performing quite well this summer. the new thriller from sony, don't breathe, about a group of teens who choose to rob the wrong house. spoofed the competition.
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$26 million in the opening weekend. that's well more than the studio estimated. as a solid return for a film that cost just under $10 million to make. this marks a string of sony hits. along with the shallows and sausage party. the films have been incredibly profitability. that's thanks to the modest budgets. don't breathe giving suicide squad a breather and keeping it from a fourth straight week at the top. it came in with $12.1 million. kubo and the strings taking -- the box office is slightly up from this same weekend a year ago, guys. >> landon, thank you very much for the box office roundup. it's time for top trending stories. beyonce's stealing the show last night at vmas with her extended performance inspired by lemonade. the singer took home eight awards, best video of the year, best female video, officially beating out madonna for the most ever mtvvmas.
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>> rihanna performed four times and was the recipient of the vanguard award which was lovingly presented to her by drake who admitted he's been in love with her since he was 22 years old. >> john the queue, drake. >> too bad we had to go to sleep early. we missed performances by rihanna. >> congrats to both of them. spotify ceo, daniel eck got married on saturday. bruno mars took the stage at the event as his official wedding singer. mark zuckerberg and his wife priscilla attended. taking to facebook to pay tribute to daniel on his wedding day. describing him as a great father, i believe. that looks like and sounds like a pretty epic wedding. lake como, bruno mars. >> where is our invite? it may have been been rob lowe's roast but anne coulter got attention.
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while she was there to partake in the roast, things quickly took a turn for the roast. peyton manning, all throwing jabs her way. the commentator got a few words in. she plugged her new book in trump we trust. wrong audience i would think. the roast will officially air labor day on comedy central. >> one to watch, i think by the sounds of things. rob lowe got off easy. itv in the uk went off for an hour on saturday morning. twitter users had a lot to say about it. the channels shutting down as part of an initiative called i'm tgb to encourage brits to participate in more sports. some twitter users taking aim at them saying the hour off air was the best hour of tv that itv has shown. others saying it didn't encourage them to exercise but pick up the remote, switch the channel and slump back on the
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sofa. there was praise for this idea in the initiative as well. it was only an hour. people have lots of other things to do. good idea. >> i think it would have to be in coordination with other channels. >> true. i applaud all efforts to encourage more exercise off the team of -- >> pokemon go. >> is that exercise? >> in a millenial way to encourage exercise. still to come on worldwide exchange, as we head to break, let's check out how europe is going. ftse is closed today. that was the close on friday. the rest of europe is in the red territory. france and germany down. you're watching cnbc. first in business worldwide. g a. now that the train makes it easier to get here, the neighborhood is really changing. i'm always hopping on the train, running all over portland. i have to go wherever the work is.
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it follows a front page story that they did about how the fed is struggling and challenged to meet some of the mandates and how the public is reacting and the fed is vulnerable. now the journal is saying fed policies to raise asset prices favored affluent stock owners over middle class savers who
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have bank accounts or lower yielding investments. handed more regulatory power by dodd/frank, it's a joint venture partner with the biggest banks. no bank can disagree on policy without fear of being destroyed. two examples there that the journal says the fed has put itself at an increasingly political and powerful position post crisis, which they say might be justified during the financial crisis in terms of regulating the banks and trying to save the economy. but now should not be. that the fed should be looking to get away from its political power because these fed governors aren't elected. >> absolutely. it's a good point to make. the power central banks have globally suggests that maybe they should be elected. the areas where you don't want the pop list person to win. you need an expert. >> credibility is everything. >> credibility is everything. being appointed still makes sense. the power of the central bank
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has gained is huge. >> one of the reasons i pointed it out. the journal seems to be on this theme. i wonder how much it resonates with the public. it doesn't seem like there's a pop list movement against the federal reserve. much more in the political spectrum. it is something to watch going into an election. >> my must read is from the mail on sunday. yesterday's paper in the uk. it was penned by nigel farage, the former leader of the independence party who spoke at a trump rally last week. it was very self-congratself-co. i wanted to pull out this line, sara. it draws parallels to what might happen here. trump was my -- this is the title. let's get on to the quote. farage said. he said i told them that brexit was the victory of the little people over the establishment. they went wild. he's speaking here of the people at the rally. i told them if you can motivate
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nonvoters to engage with the electoral process, anything was possible. he added, most of the crowd i met after the rally never voted in their lives. they're the same people who made brexit happen. they see washington just as aloof as many -- from brussels being distant. that's what i think is interesting here. it's wrong to draw parallels between the rise of trump and brexit. which farage is trying to jump on the back of that. it's fair to point out that aspect of galvanizing voters that have never voted for, it certainly happened where turnout was high and favored exit. people didn't expect that. if turnout is high and trump gets people to vote that never voted before, all the predictions, the betting markets that suggest clinton is in a strong position could be wrong. >> which is a good point. i find it so bizarre that farage comes to mississippi ahead of a trump speech. he didn't enforce him. but he gave a welcoming opening
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remarks for trump, when we were in london, he was going off about how president obama should not have told the british people how to vote. it's highly hypocritical. >> that's a fair point to make. exactly, he didn't endorse trump. but he said he wouldn't vote for hillary clinton. which is essentially the same thing. >> we're approaching the top of the hour. kayla joins us from new york with a look at what's coming up. good morning, kayla. >> good morning. welcome back, wilfred. we have a big morning on "squawk box." we're going to continue to digest the commentary out of global central bankers in jackson hole. not just janet yellen and what she did to the markets on friday, but also what stanley fischer said on cnbc an the bank of japan's kuroda over the weekend which is causing weakness in the yen as you're discussing some strength in the dollar. we'll see how that sets up for a big day of data today. some of the fed's key inflation data comes out ahead of the data
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on friday. what does this mean for the markets and for central bankers? that's a question we'll be asking. on politics, we'll talk about the shape that each campaign has taken and we have the author of clinton cash, peter switzer on the show to talk about the structure and the future of clinton foundation should hillary clinton be elected president. of course, a lot of questions there. we'll be digging into that, too. >> all right. kayla, she you at the top of the hourment thank you. when we come back, will the jobs data help make the case for the fed to raise rates sooner? michael purr ves is here to weigh in. you're watching cnbc. first in business worldwide. mr. clean gets tough on dirt and grime
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michael goerng to you. >> thanks for joining us. all the focus was what to expect and what we heard from janet yellen. we get more data coming out. >> right. >> is that more important and could that, if it was strong, solidify the new expectation that is september is on the table? >> the fed goes out of its way, particularly to -- up every meeting. they achieve that of with fischer's comments about two hikes i think it has to be an extraordinarily strong report. sort of a 250-plus. further gains on inflation metrics. to really get september over the hump. it's a big ask right now. to the earlier discussion you guys were having about the political dimension of the fed, i do really wonder -- i mean, this is a thing you talk about at the cocktail party, whether they can push a hike. trump is down but certainly not out. that can't be too far from the
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mind -- >> is that really what you talk about at cocktail parties? >> i was going to say. [ inaudible ] >> mike, how vulnerable are u.s. stocks to a probability of september and december as rate hikes? >> that's a spot-on question. i think it's heads you win and tails you don't really lose. if we do get a strong report right now, certainly it's going to strengthen the dollar. that's been the defactor tightening mechanism. it's going to affirm that the earnings growth trajectory is on. we'll be in enough of a sweet spot where you'll give back goldilocks or pick up much needed earnings growth. i think that means that 2150 is a level that hold. >> how do you pick up earnings growth if the dollar strengthens? >> certainly, fx, foreign earnings are going to be sensitive. look, if the dollar shoots to the moon, that's a different
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story. let's not forget that earnings growth right now. the trajectory is pretty modest. but if we get another 250, 300,000 type of print, that will confirm that the nominal gdp story is on track and that will flow into s&p corporate revenues and earnings. >> all s&p sectors in positive territory for the year but massive differentiation. top sector pick at the moment? >> right now, i would say industrials. i would say tech actually. i would actually say not a sector but the small caps have a lot of catch-up. >> michael, thanks for joining us. from weed en and company. that's it for worldwide exchange this morning. what are we watching today? the data starts to come out. >> personal income and expenditures. we'll get the fed's preferred inflation gauge later today. so always market moving. jobs on friday. >> we've got to get you to see different cocktail parties that don't focus on when the fed will
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hike interest rates. there are others out there, sara. >> thank you. >> that is it for worldwide exchange. have a lovely morning. "squawk box" is next. that's it. we need really tight temperature controls. engineering, aerodynamics- a split second too long could mean scrapping it all and starting over. propulsion, structural analysis- maple bourbon caramel. that's what we're working on right now. from design through production, siemens technology helps manufacturers meet critical deadlines. i think this'll be our biggest flavor yet. when you only have one shot, you need a whole lot of ingenuity.
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good morning. a full rundown ahead. emergency authorization from the fda for a test for the virus. news from the campaign trail. donald trump looking to clarify his stance on illegal immigration announcing a major speech later this week. it is monday, august 29th, 2016. "squawk box" begins right now.
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this is "squawk box." good monday morning everyone. welcome to "squawk box" on cnbc. i'm kayla tausche with becky and andrew are off today. look at where u.s. equity futures are at this hour. negative territory. but currently slightly positive. the s&p opens by one point, the dow opens by two points and the nasdaq flirting with a break even line for the implied open. take a look at where we are. strength in japan by a weakening yen against the dollar based on comments from kuroda in jackson hole. they have ample opportunity to continue easing shanghai. we're going to 4 decimal places there. that's roughly flat. hong kong is slightly negative. europe equities, we have been fairly negative throughout the morning. you're taking a look at the broader european averages. every single one of them is negative. the ftse is a little bit of a

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