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

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september is traditionally the worst month, but one week in, things looking up. tuesday takeover, bayers sweetening offer for monsanto in a $65 million deal. would be the biggest acquisition ever. your money, your vote. presidential hopeful donald trump weighs in on interest rates as the fed debates next hike. it's tuesday, september 6, 2016 and "world wide exchange" begins right now.
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a very good morning to you. let's get straight to the market action and take a look at futures at this hour. last week, we saw around about half a percent of gains for the week as a howhole. mostly coming through on friday. allowing the interest rate sensitive stocks to do well, the likes of utilities outperforming in some of those other stocks like financials in the other end of the curve. disappointing on friday, but for the week as a whole, financials still did pretty well. we're looking at things today in the futures market, we are called higher, only slightly. the dow expected to ep up 22 points. if we look at the yield on the ten-year note around 6%. pretty much where it was the week before. little bit of movement during the course of last week, but ended things and started this week at a similar level.
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1.60. >> if we take a look at european equities, similar market tone here on monday. mixed cay of trade by the german dax higher around .20%. keep in mind germany factory orders did pick up in july. still shy of expectations. the big event will be the ecb policy meeting on thursday. questions as to whether mario draghi will unveil further measures despite mixed economic data last week. in asia on monday, mixed on the so far although japanese markets closing higher by around 44 points. china and hong kong also posting gains, hang sang seeing a gain around .50%. >> let have a look at oil prices. rallied 3% on friday. still ended the week down. 6.7%. that's the return for wti last week. a dispointing week for wti crude. just offsetting a little bit this morning. best part of 1%.
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44.8. some comments coming out of g20. we might see some collusion between the likes of saudi arabia and russia. that's something we'll have to wait and see. the dollar, let's have a look at that. was stronger last week for the week as a whole. less so than prior weeks. as we look at things now, the euro, the yen, the pound are all higher against the dollar today. only slightly. the big mover is the aussie dollar. up 1% after they failed to hike rates. even though that was the expectation. we weren't expecting a cut. still rallied. gold prices very quickly for you right now. as we look at things, goeltd prices are higher only by 0.4%. 1332. this morning's top story. $65 billion deal in the works. bayer hiking offer from $127.50.
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up from a previous $125 offer. monsanto acknowledged the latest offer. calling it con struckive. have been in talk since may. bayer believes will position to help farmers around the world produce for a larger population. we'll have more on the potential deal in just a few minutes. >> massive deal looking forward to diving into that one. in other news this morning, volkswagen truck is preparing to take 20% stake in the u.s. trucking firm navarrete sar. navistar. volkswagen will pay $16 per share. a little over $220 million in total. the potential deal comes as the financial burden of developing new engines has forced many car makers to pursue partnerships. >> president obama making final visit to asia as president. he was one of the g20 leaders
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who gathered in china over the weekend. the group statement pledged to focus on reviving global growth, but specific details were missing. chinese president said leader whoa had put guidelines in place and explore structural overhauls. acknowledging the need. obama along with british prime minster theresa may highlighted improving did lives of ordinary citizens saying groelt needs to be inclusive. became the first sitting u.s. president to visit isolated landlocked nation of laos. meeting with president is expected to close a dark chapter. the country of 7 million people is hosting the annual meeting of southeast asian nation sgls of course the trip was expected to be closing off significant deals a swan song for him and instead it's shaking hands good-bye
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tour. >> that seems to be the consensus so far. broader goals, but lack of implementation. >>. sticking with that trip. drama. president obama has cancelled first meeting with the president of the philippines. this after president said he is not a puppet. expressed regret saying his remarks weren't meant as a personal attack. not the first leader president he has offended. he previously cursed pope francis. another slightly disappointing part of his trip. >> absolutely. campaign trail. donald trump has previous accused federal reserve keeping interest rates low is speaking
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again on monetary policy. trump saying in ohio yesterday the u.s. central bank has create add falls economy and interest rates should change. keeping rates down so everything else doesn't go down. trump also added the only thing that is strong is the artificial stock market. there has been wide speculation if trump were to win presidency, he would bring in a much more hawkish or lsz dovish. >> i have to say of all the areas where he faces criticism for being not clear in terms of his positions, this is one of them. at other times he says i love debt and loans and rates. other times he gives hawkish tones. he needs to clear up what he means and either way, to bring in a different central banker who has hawkish intentions isn't going to give him much control over the policy. it's confusing, this area. >> something investors and markets are watching very
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closely. >> indeed. now to today's economic agenda. coming off the jobs report. today look for august ism. thursday weekly jobless claims and consumer credit. round out the week with wholesale trade on friday. back to top story potential $65 billion buyout monsanto deal. >> reporter: good morning. sweetening the deal to acquire seed and pesticide maker monsanto. the $65 billion offer amounts to 127 .50 a share. would be the biggest ever acquisition. bayer says the acquisition would create a global firm to help produce farmers produce food for fast growing population. bayer's ceo has faced push back. this is just the latest deal.
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another top seed and pesticide is moving ahead with the planned sell to chien corp. due. >> landon, thank you very much for that. some other stocks to watch today. ge striking deals to buy two european 3d printing companies. sweden r cam and slm for $1.4 billion. no move in general electric, but those up significantly. the swedish one up 50% in europe. german health care group is buying spain's largest hospital chain. marks the company's first expansion out of home market. airbus signs deals with three companies to order jets. the deals were signed during french president francois
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hollande visit to vietnam. aramco in lead to buy liondell. produces nearly 264,000 barrels per day. general motors has settled the last two bell weather cases involving faulty ignition switches that have been link ed 124 deaths and 275 injuries. the deal comes ahead of the fourth of test trials aimed to help settlement options in more than 200 lawsuits. gm resolved death and injury claims through an out of court program and paid about $2 billion in criminal and civil penalties in settlements related to the faulty switches. british awares passengers facing delays after night. the system issues have affected
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a number of their airports. early reports of delays coming from u.s. airports including phoenix, atlanta, seattle. san francisco. ba saying their checking in customers, but it is taking longer than usual. apologizing to customers saying the it systems are working to resolve the issue. unrelated to this, but also causing delays, police say nine protesters from the british arm of black lives matters forced on to the london airport and locked themgss together. the airport is near the financial district and handles mostly short all flights to business destinations in europe. coming up, talk about the big movers in europe. stay tuned. you're watching cnbc. we're first in business, worldwide.
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welcome back to "world wide exchange." good morning to you. let get you up to speed on the market action. just shy of .50% gains for the market. we're looking at gains of the open today, but as you can see, only minimal. about 10-15 basis points. the dow expected to open up 25 points. let's have a look at oil. it gains ententely on friday. 3%, but still ended the week as a whole down some 7%. so it's been a soft start to
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september for oil prices. having been strong in august, of course. today wti is higher. although brent is lower. now to markets across the pond. we are seeing notable price action. carolyn roth joining us with more. carolyn, investors chewing on economic data out of germany this morning. >> absolutely. factory orders in the month of july rose by 0.2%. that was weaker than expected. in the meantime, swinging between gains and losses. we're only up 0.14%. just after session lows. waiting for more direction from you guys across the pond. also worth noting, still trading close to three month highs. best performs sectors are basic resources, oil and gas. the ftse is showing a little bit of under performance. some of the home builders are doing better. xetra dax showing a gain.
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similar percentage gain. speculation keeping traders very business on this side of the pond. bayer sweetening offer. here's another really interesting one. bought largest hospital group. free zenhouse. and this acquisition now marks its largest buyout on record and the company expects the deal to close near the end of the year. let's have a quick look at shares in germany. really leading the charge. up 3.20%. >> welcome back after a brief time away. carolyn roth for us there in lond. still to come on "world wide exchange," top political stories. race for white house revving up over the weekend. battleground voters in ohio. >> before we head to break, here's today's national forecast from the weather channel, jen
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carfagno. >> good tuesday. we're watching a couple of big weather stories today. one of course is tropical storm or post tropical cyclone. this thing does not want to leave us. it's meandering and meandering closer to the cost fwen today. not fwoij to make land fall, but will provide impacts. the high surf will be up. coastal erosion. gusty winds and showers are scooting right along the north eastern coast. mine while, thunderstorms are are the move again. continue to see storms with damaging winds, power outages and hail across minnesota and wisconsin. two round of storm with that. plus moisture coming up tomorrow as we watch a hurricane make land fall in the baja of california. that's a story to watch into tomorrow as the moisture makes way into the southwest.
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that's your forecast from jen carfagno weather channel. "world wide exchange" continues after this. ♪ w're drowning in . where, in all of this, the sff that tters? the akes are shigh your fances, hodo you sol this? y't. yopaner with firthat advis governments and the fortune 50 and, can diver insighterson per, on whaerto y. momoan stanley.
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welcome back to "world wide exchange." let's get you up to speed. the disappointing jobs report last week has fuelled speculation as to whether janet yellen will raise rates in september. however, despite that uncertainty, we're still seeing numbers high for the month of august. labor day and memorial weekend, s&p up nearly 4%. right here on monday's trade,
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futures pointing to a higher open. dow, 26 points. if we take a look at currencies. the byldollar gaining. a bit weakers against the yen. the pound higher still holding on to 1.33 fwens the u.s. dollar. if we take a look at commodities. a lot of focus on oil, of course ahead of peopec meeting. wti at $44.83. >> let's move on to politics. 63 days until election. missouri, florida, north carolina. that's where the presidential candidates will be on the first official day of the full campaign. tracie potts joins us now with all the details. >> reporter: yes, today we're going to see the candidates out
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and about. the clinton game plan is to get as many big name democrats on her behalf. for donald trump, he's hitting the battleground states he needs to overperform. and still answering questions about imfwrags policy. donald trump heads to virginia and north carolina today, still explaining immigration. >> you're going to have to go out and come back in. >> defending laid back debate prep. no cramming, no mock debates. >> identify seen people do prep work when they get out there they can't speak. >> hillary clinton has talked to hutch she's losing her voice, but still criticizing trump for getting into a twitter war with mexico's president. clinton is in florida today sending surrogates to other battleground states. >> hillary clinton is the superior candidate. hands down. >> as this campaign enters the final stretch, early voting begins in a have you weeks.
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the first debate at the end of september and election day, now just over two months away. >> reporter: hillary clinton and her super pac have bought tens of millions of dollars of ads. meantime, donald trump also had ads coming up. smaller ad buy. republican donors have picked up the cost of that as well and expected to start this week. >> as we hit off the full campaign where people sort of suggest it really gets going again, sum up the summer for us. the conventions, it was career they benefitted secretary clinton more, but since then, has donald trump clawed back some ground. >> in terms of summing up the summer, just a couple of months ago we still had the bernie sanders question. now he's gotten on board with hillary clinton. then we had conventions on both sides coming occupy of the conventions. see seemed to get a bump now a
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month later that seems to be fading. from june to now, a lot has happened which gives us the indication from now to november, we could see a different picture as well. >> could the debates be key gl the debates could be key for a couple of reasons. the clinton people as much they're preparing, donald trump is a wild card. that's sort of the biggest fear for them. that's the biggest concern. they don't know quite what to prepare for. what if he doesn't agree to any other debates. we've seen him pull out of things before. this 90 minutes debate could really be it will opportunity for a lot of people to make up their minds. not to mention the fact that early voting starts later this month before the debate even begins. >> tracetracey, thank you very now sad news to report. phillies schlafley has died. she was 92. founded the eagle form in 1972 and wrote more than two dozen
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books on conservatism, parentin parenting. she wou she was politically active until the tend of her life. attending the republican national convention as a delegate for donald trump. >> now to sports and the u.s. open where the world's number two ranked men's player andy murray was in action last night. he took on and proved to be no match for murray. beat him in straight set. he moves on to the quarter finals on wednesday where he'll face the number six player in the world from japan. and come on, andy. >> must be nice to see a britain do so well. >> not a surprise, he just won the olympics. >> and also just won wimbledon. >> well, someone is very
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probritain here. it is great to see murray do so well. the other one didn't do well. ed monday lost against djokovic. quite amazing he did that well. >> getting to the fourth round. he wasn't really expected to get past the first round. >> are you ready to play me? i've been practicing a lot this summer. >> it's going to be on and we'll take it very seriously. >> we will. now sticking to sports from tennis to college football to power house schools, florida state and mississippi, matched up monday night to wrap up the first week of the season. the fourth ranked seminoles found themselves down before mounting a major comeback. florida state pulls out the win against mississippi, 45-34. >> still to come, a $65 billion deal in the works. the details of that.
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plus, does sony really want daniel craig back in the bond tuxedo. we'll find out in top trending story. stay tuned. you're watching first in business, worldwide. the ligh go out. gets flood wll ople gnxio e so many things can go ong. it's my worstightmare. eversend that po out, my ci's atisk. ens digital gridmanages rerou, soervi can brested wiin sonds. iority number r e is keepinthoslights on. it tak ingenuity toefeat the monsters that live inhe dark.
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good morning. developing deal news. bayer sweetening offer to monsanto. jour vote. how ceo political opinion can influence workers.
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coming up. the price of bond, not a 10 year or 30 year, the only one that really matters, james bond. the insane amount of money daniel craig could be getting to come back and play james bond once again. it's tuesday, september 6, 2016. you're watching cnbc. >> a very good morning and warm welcome to cnbc. wilfred frost along with sema in for sara this morning. let's get into the action. saw a little bit of a rally on friday. after the disappointing jobs number. utilities closing out over 1% for the week. as a week as the whole, we were more than 1% higher. the financials opposite end of the interest rate sensitivity,
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that i have did outperform. over the course of the week, we had interest rate expectations come forward a little bit even on friday they slipped a bit when the jobs number disappointed. this morning we're called higher only slightly. expected to open 22 points higher. look around the rest of the world. europe today showing gains slightly. the ftse 100 soft. the rest of europe higher. not significant. german industrial production did disappoint slightly. medical care in terms of deal move and bayer. asian trade today has been positive. all apart from australia. slightly down the rest of asia up. >> you're just mentioning the federal reserve. the europe central bank will be in focus today and for the week with that policy meeting on thursday. if we take a look at broader markets though, specifically oil, right now higher at $44.80.
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mixed commentary coming from some of the opec leaders ahead of that meeting later this month. specifically from russia and saudi arabia on these efforts to potentially stabilize the price of oil and cut back on production. wti higher. brent lower. we just point out wti has gained about 3% breaking a four-day losing streak on friday. still down about 7% over the past one week. of course a lot of it having to do with the mixed reaction in the currency market as they digest the latest comments from janet yellen. the u.s. dollar is right now lower against the euro. the euro at 1.11. u.s. dollar weaker against the yen at 103. if we take a look at gold, interesting moves there. of course still higher around 20% for the year. one of the best performing assets. global assets in 2016. and it continues to rise here in -- here on tuesday, higher by
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around $7. >> australia central bank holding interest rates steady overnight. as expected. meanti meantime, in japan. bond yielding climbing to six-month highs. covering the story for us from asia. >> >> reporter: the decision widely expected. no real surprises with the rbv holding fire after they cut the rates. we did see the 200 under pressure on the back of that decision. down about .30%. governor glen stevens providing over very last central bank meeting say that current policy is consistent with sustainable growth in the economy and achieving that central banks inflation target although he did say the exchange rate could complicate that. we saw the aussie dollar rally for a fifth straight day. gaining .70% against the dollar there. this decision from the rva
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coming one day before we're expecting the second quarter gdp numbers. expected to show the economy grew at a slower rate than the first quarter. although they are on track to mark 25 years without a recession. over in japan, the nikkei extending gains from monday. closing above that 17,000 mark. hitting a fresh three-month high. expectation has the bank of japan could cut back on longer term bond buying another the next policy meeting. set longer term bond yields higher. taking a look. we saw the yield. it's down 11.7% there. and over in the philippines here. the psa composite down .60%. after president obama cancelled the meeting. the index falling on concerns about rising tensions between the two close allies, although
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we should mention he has since said he regrets those comments came across as a personal attack. back to you. >> thank you very much. today's top corporate story. bayer sweetening bid for monsan monsanto. crops manufacturer is now willing to pay $127.50 per share for the world's largest seed company or more than $65 billion. that's up from its previous offer of $125 per share. there has been a lot of activity in the farm supply industry. rejected takeover from monsanto and agreed to be bought by chemochina this year. in the process of trying to finish $130 billion merger. we'll see if bayer and monsanto or next. in the other news, vo volkswagen is in talks to buy a stake in navarrete star.
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vw plans to pay $16 a share or more than $200 million and will supply engines to navistar. this is an effort by vw to gain foothold in the u.s. the potential deal comes as the financial burden of developing new engines to meet emissions standards has many car makers pursuing partnerships. get two seats on the board that includes active investors carl icahn who controls 20% of the company. travel problems for air passengers in britain today. first a computer glitch hit british air ways check ins. reports of major delays for ba flights in the u.s. then the airline said it was taking longer than normal to process customers at heath row and gatt wick. unrerated, but police saying
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nine protesters from the british arms of black lives matter forced their way on to london city airport and locked themselves together. it's near the canary financial district and handles short flights to business des destinations in europe. robert ailes hired a lawyer. sent new york magazine an e-mail on behalf of ailes asking the publication to preserve documents over a possible defamation claim over reporting of the former fox news chairman. let's move on to top trending stories. looks like sony really does want daniel craig back in his bond tuxedo. reportedly been offered $150 million to return for two more films. played bond since 2005 has made no secret of reluctant to
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continue playing spy. turned down an offer of 68 million pounds to return as bond back in may. significantly increasing the offer of that figure is correct. i always maintained i do think he will come back for another one. >> would you take that role if they offered it to you. >> i think everyone knows that answer. san francisco 49ers jersey now the thirst most popular. the spike in jer say sales coming off controversial decision not to stand for the national anthem. has been the seventh best seller in the nfl over the last week. espn tweeting over the weekend. more of his gear sold on the 49ers sight than the past eight months combined. >> interesting turn. >> next trending story.
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happiest place on earth got cheaper. annual passes for california are on sale for $330 at costco. a normal day pass goes for $95. this discounted annual pass is available in southern california for a limited time only. that sounds pretty good. haven't gone over there yet, but if i do, maybe go over there countless times in the space of a year. why not. another story. longest domino drop shot. breaking the record with more than 6,000 glasses of energy drink and shots of whiskey. efforts five months in the making. 12 hours to set up. the previous record holder was the location of senior frog. fall correctly in february 2013. >> that was pretty awesome. >> i was reading that early. i hadn't seen the video yet.
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>> have still to come, must reads, but first as we head to break, a check on oil prices this morning. which are mixed between wti and brent. wti higher 1%. brent soft last week. discuss pointing oil return. stay tuned. you're watching "world wide exchange." much more to come. my dad gavme thosshares,
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you know. he ran that company. i get it buyoknow i think you own too much.pany. gottan hest opinion . i get it is how earjones makes sense . he jesse. who are you? i'm the orangeoney orange mon represents the moy yopuaway for retirement. retirement rabbit from voya. over tim yr moy coulmuiply. hello, allyou.oney orange mon represents the moy yopuaway for retirement. retirement rabbit from voya. over tim yr moy coulmuiply. get organized atoya.m. welcome back to "world wide
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exchange." let's get you up to speed on the market action. called higher here in the u.s. all by it, only slightly. 26 points for the dow. last week we saw around .50 gains. that job number disappointed. equity saw underperforming sectors. we ended the week around about .50% higher. let's have a quick look around the world. asia higher as you can see. japan continues its decedent recent run up .25%. the yen softness we saw last week did allow the nikkei to end the week higher. australia the only major market in australia in the red today. let's have a look at the european markets. retail sales there disappointed this morning. germany is higher despite the industrial production data being soft for the month of august. still higher by .30%.
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france also a little bit higher. now to today's must reads of the day. my pick is in the wall street journal. titled a warning for merkel. it reads, mrs. merkel's compassionate impulses are admirab admirable, but that the have to be backed by politically sustainable policy. ahead of next year's general election. this of course coming after the suffering defeat of merkel in her home state over the weekend. just highlighting the potential political dissent graduation we're seeing across europe. this is germany, europe's power house. merkel seen as the most influential laddereader across europe. it could cast doubt to the future of european politics given the important role she plays in driving the european meetings. >> so disappointing were those results for merkel's party and
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local con stitch wan si. many saying she may not be the candidate. i think that's perhaps an overreaction to the local election results. big headlines on this. big surprise was the second place. leap from by the afd. right wing party. equivalent to the likes of -- significant results in europe. highlights the issues coming to head next year we get french elections, duchl elections, german elections. >> such a big year in 2017. my must read is the "new york times." whom to vote for employees tend to follow their own leader. this in the "new york times." andrew sorkin writing the parody of politics over employees is stunning and perhaps unsettling and mentioning parts in part the
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like tim cook of apple hosting a recent private fundraiser. nonhappenle fundraiser. private fundraiser for hillary clinton. the influence these guys have on their own employees is quite significant. i suppose the question i have on it though is if this election will follow that course because it's such an anti-establishment theme in it. not dissimilar from the brexit vote. we see jamie dimon come over and various others and that backfires. if creos do come out, could wor the other way. study shows ceos have a impact. >> does seem like corporate america is playing a roll of having a voice. giving the diverging views from hillary clinton to donald trump. >> absolutely right. still ahead on "world wide exchange," the bulls looking to keep their charge going. the s&p coming off best week since july. joining us next e jeffrey
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kleintop. stay tuned, you're watching cnbc, first in business, worldwide. y to open a hotel hee y to open a hotel hee everyone said i's so hard to be a mian, now that the tin makes easier to get here, the neigorhood isiseally chging. 'always hping on e trn, ruinall over portland. i ve to go ereverhe wk is. 'always hping on e trn, ains with innovative ruinasiementechnogynd. he keecities moving, neiborhoods and businesses can psper. i can book 3 or 4 gigs on a gd end. i'm booked solid for wee. it takes ingenuity to make it in the big city.
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. welcome back to "world wide exchange." bayer hiking offer to monsanto. the shares as you can see, moving accordingly to. bayer softening fractionally. monsanto up 3%. acknowledged the latest offer calling it constructive. have been in talks since may. would emotion the firm toll help farmers around the world produce for a larger population. more on that throughout the day here on cnbc. in other deal news, voux wagon is preparing to take stake in navistar. supply engines in exchange for
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the stake. an announcement is expected as soon as today. woex wei vocati financial burden of developing new engineses to meet emissions standards has forced car makers to pursue partnerships. presidential nominee, donald trump has previous accused federal reserve to keep interest rates low to help obama is speaking kwen on monetary policy. saying they created a falls economy and interest rates should change. specifically trump said fed is keeps rates down so everything else doesn't go down. only thing that is strong is the artificial stock market. confusing rhetoric from him on that topic in the last few months. approaching the top of the hour. the team is getting ready for "squawk box." good morning. as we get ready for what i -- i
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always call this the sprint sfr labor day to christmas. a lot going on this morning. let me tell you what we have, ken rogof you have alex is going to be here in control closing the deal with tie co-. a lot of questions about that. the deal has become a part of the political. going to talk politics. also talk with the ceo of draft kings back in business in the state of new york so you can sort of bet on sports and we'll talk about what that all means. of course we'll also talk about the monsanto bayer transaction as well. that's what is on tap this horng. >> the sprint. that's a long sprint. >> yes, it is. it's like sprinting a marathon, but i think we're back in the saddle, school begins. this is it. the next three months. >> look forward to it. >> thanks very much.
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"squawk box" starting in eight minutes time. still to come here, of course, we're going to discuss the markets. let's check into the futures right now. as you can see, the dow called up 25 points. last week we gained just over half a% for u.s. equity markets. joining us from boston, jeff kleintop, strategist at charles swab. that number disappointed on friday. jobs print heading into friday was a tie between whether people were expecting september or december. what's your latest take. >> our vie is likely to hike this year. december far more likely than september. not so much because of the jobs data. had a couple of better than expected numbers and a number slightly below expectations here. reported on friday. the job markets certainly i think justifies a rate increase. the bigger question is what is the global perspective. what is the global economy look like over the course of the next several months.
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we've gone italian referendum coming up. that's a key focus for the fed. remember how big a brexit issue was for the fed. it was looking at what interest rates might look like in the second half of this year. that could be an issue that weighs on the fed's perspective in addition too many other factors around the world. one is earnings expectations are pretty high right now. one of the widest gaps between forward expectations and actual result s since 2009. the fed may get concerned the expectations are stretched in the stock market. >> despite the brexit fears, we've seen the s&p gain 4% from memorial day to labor day. if you're an investor and got out of stocks because of the brexit related tax returns, where would you put your money now? >> it's a great we. technology stands out as a consistent winner in the markets. the financial sector is increasingly attractsive.
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it's been lagging all year here and will abroad. lately started to turn the corner and moved a bit higher. in part for highest interest rates from the fed. really important for the financials, but disappointing sector for a while. might be an interesting value opportunity for investors. >> still high beat. can you describe it as a value sector. >> well, it is cheap. i mean, if you take a look at valuations relative to the rest of the market, it's been beaten down for good reason. the difference is mainly the issues aren't so much around credit this time. they're around the income statement. the fact is as interest rates remain low, every one of those loans rolling off and over has rolled over at a lower interest rate. that could change. maybe even lift a little could be just the dwood news that sector has been waiting for. >> much discussion over the summer about the fact we were hitting new highs in u.s. equity market r markets on low volume.
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the question as we come back after labor day when volumes pick up will they maintain. how much confidence can you take from factors such as last week, disappoint job number, oil prices sliding and markets going up. >> yes, one toch interesting things in is taking a look at individual investors. individuals weren't the reason stocks had moved higher. it's been institutions, but interestingly we know individuals chase performance and the five-year record tends to be what they chase. that has just begun to turn back up again. we started to see five year returns if for stock market begin to improve. that's in part because of recent performance, but also because we dropped off august of 2011. that big debt ceiling debacle in the u.s. that said bear market send global markets into a bear market five years ago. the point is individuals may finally begin to turn around and buy in september and october. certainly risks to the markets.
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might be even heightened risk as we come out of the summer, but individuals may come in and give the rally a second win. >> if we pivot to commodities. saying they are going to cut down on steel production. one of the reason we have been seeing depressed prices is china overproducing commodities. is this time to get bullish. >> i believe it when i see it. the problem is china there's so much employment and manufacturing production tied to metals they've had a very hard time pulling capacity back. they want to. they continue to talk in that direction. their actions have been lagging. they haven't really curtailed excess capacity to the degree they would like to. merging business together. haven't really seen the employment pull back there. expect that to continue over capacity for some time. >> thank you very much for joining us this morning. that is it for "world wide exchange" today. a lot of things to focus on. particularly mna deals.
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likes of volkswagen and monsanto bayer deal. all of that and much more coming up on "squawk box" next. urme i? ke having thing t u, jt right, thank you randall. ery stitch and seam of your home insurance, ilor to fit yoand your dget. th unique features, like claim freeewar... ohh! customized homprotection ilor to fit yoand your dget. extra features th unique features, like claim freeewar... ohh! l at an afrdable price!n ilor to fit yoand your dget. i'm going to live in this. in means getting more from your home insurance th an expert allstate agent. it's g gd to be in, good hds.
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good morning. september surprise. it's traditionally the worst month for stocks, but dow and s&p both broke a two-week losing streak to kick off the month. full market run down straight ahead. we've called them merger mondays or takeover tuesday. bayer sweetening it's offer for monsanto to 65 billion. what would be the aspirin biggest acquisition ever. med chatter hon the campaign trail, presidential hopeful donald trump weighs in on interest rate as the central
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bank debates next move. saying here's next hike. god knows when they will be. it's tuesday, september 6, 2016 and "squawk box" beginning right now. good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew sorkin. welcome back andrew. >> good to see you. >> we were a week natural ago. >> briefly for a day. >> one day. >> now it's september and it's back to school and back to seriousness for us. we hope you're ready to get back to work too. let's take a look at the u.s. equity futures at this hour. see at least right now things looking slightly higher. nasdaq up by close to 2. still a lot of questions swirling

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