Skip to main content

tv   Worldwide Exchange  CNBC  September 8, 2016 5:00am-6:01am EDT

5:00 am
good morning. european stocks near eight-month highs. twitter takeover. big board meeting that could determine what's next for the embattled social media form. your money, your vote. clinton defends her e-mail. a round up of drama from commander in chief forum. it's thursday, september 8, 2016 and "world wide exchange" begins right now.
5:01 am
>> a have you good morning and warm welcome to cnbc. i'm wilf spice girls good morning. >> exactly. appropriate. >> it's throw back thursday. no theme. just throwing it back with classics. . can't do much better than spice up your life. let's see what the market is doing. not very spicy. called higher, albeit, fractionally. the s&p and the nasdaq also expecting slight gains. yesterday western essentially flat, the nasdaq fractionally higher. apple also outperformed closing out 0.6%. get to its products announcement just shortly. if we look at the ten-year note as well, you'll see yields just slipped again. not much. we're now at 1.534. certainly the tune of the last week since friday's
5:02 am
disappointing jobs report has been easing of expectation of when we'll see rate hike. seen the yield slip steadily down to 1.534. >> you have no idea how impressed i am about your spice girls repertoire. >> i didn't sing it. >> you knew what it was. >> of course. i knew it's meant to be gold power, but teenage boy power too. >> european equities. let's talk about europe. we're closing in on close to eight-month highs. the focus on the ecb and what they do at monetary policy meeting. we have the german dax in the opening hours just done slightly. the france cac also lower, but tepid gains as we await what mario draghi and the rest of the ecb board decide. asia meantime, let's check in on japan. we have a strengthening in the
5:03 am
yen. that's taking down equities lower by .30%. at the boj meeting, the shanghai comp seeing gains along with the hang sang. had the first import gains for china in two years. trades are pretty much in line with expectations. have a look at broader markets. oil prices closed up around 1.5% yesterday. we are higher again today. up 2%. 46.4 for wti crowd. this week we've seen a nice bounce back from two flegtive positive. up 2.4% for the week yesterday. out 4.5% for the week as a whole. these big moves now becoming path of the course over the last couple of months. indeed over the last couple of years. >> let's skr a look at at the dollar. did strengthen slightly and weakening slightly today. not significant moves around the margin. only moves around the margin last friday was the big one around the jobs number. this week we've seen slight
5:04 am
moves around all the currency as you can see. the euro of course awaiting the ecb decision later. we're not expecting a cut in interest rates. we are potentially expecting an extension of quantitative easing timeline. to allow the ecb though discuss more detail whether they should change the competition of the bonds being born. if you do see an extension of timeline, probably won't move the markets very much. did see changes in the composition which isn't expected that might be a factor that could move markets. let's have a look at gold prices. round off all the asset classes today. slightly is higher. 1352. we are awaiting a press conference. president obama wrapping up week long visit in asia. news conference in laos. expected to begin shortly. bring you live as soon as it starts. those are the live pictures in the capitol capital of laos.
5:05 am
central banks will not rule out interest rates. deputy governor didn't comment about speculation tbank of japa could result to buying currency bonds. did rule out monetary policy. >> another light day for economic data in the u.s. with a pair of reports on the agenda. weekly jobless claims due out 8:30 a.m. eastern time. first time filing for employment are expected to tick up slightly. then 3:00 p.m. this afternoon, get the latest sharp shot on americans burrowing habits with consumer credit figures. as for earnings, watch out for results from barnes and noble just before the opening bell this morning. >> now today's top corporate stories. hewlett-packard will spin off and merge with micro focus international. a deal worth $8.8 billion. share prices as you can see not really reacting.
5:06 am
hewlett-packard down .5%. micro focus up 17.5%. this is all part of the strategy to focus on areas like storage and networking. hp also reported mixed results. earnings did top estimates while revenue fell short. the firm's current quarter guidance met expectations. on a programming note, don't miss david faber exclusive with hp ceo meg whitman. 9:00 a.m. on squawk on the street. intel announcing it will spin off cyber security division formerly known at mcafy. own 51% of the firm. shares of intel inchanged. didn't move on the back of that news. >> another deal to report, liberty media buying the racing business. formula 1 for $4.4 billion.
5:07 am
has stakes in several sports and entertainment businesses. purchase a majority stake from a of private equity company. fully take it over after regulators give the deal the okay. share price of liberty reacting hardly to this news. just below flat. not as big here in the states as it is around the rest of the world. preeminent motor sport outside of the united states. >> keeping his role of ceo for now the report says. we'll see. stocks to watch today, pure one is something we're looking at pier one. retailer is forecasting a wider second quarter loss and says same store sales fell more than 4%. we did see a big hit to the stock down close to 10%.
5:08 am
cutting full year guidance. retailer of farm and feed supply claiming the prolonged decline on oil, gas and coal production hurting customers living in energy producing states. juno therapeutic developing drug treating cancer. some funding for this trial. juno seeing gains of 7%. more stocks to watch, sage therapeutics falling sharply today. bio pharmaceutical firm launching $150 million stock offer. could be expanded to $172 million if enough demand. slipped 4%. guidewire sees profits. expects earnings to contract this year. well below analyst projections. ramps up lines of spending. tesla signs a deal with
5:09 am
deutsche bank to borrow for leasing program. won't have to raise as much cash from the public market. gives up production for mass model three vehicle. deutsche bank been trying to shrink loan, but agreeing tesla is enough to expand it. >> they're worthy of credit. later on today, twitter's board is set to meet. landon dowdy joins us with three things to watch. >> good morning. the stakes are high for the social media company. here's what to watch when twitter meets today. first to sell or not to sell. twitter has been the subject of numerous takeover conversations recently. sending the stock higher as investors hold onto hope the company will sell shares of twitter 33% in the past three months. reporting that would be easy as a twitter buyer would have to pay $18 billion for the firm. big names such as google and
5:10 am
apple among those lists of possible buyers. the board could call into question ceo after taking the reigns more than a year ago, failed to generate any positive momentum. and the third thing to watch. cost cutting. more layoffs could be ahead to improve performance and make more appealing to a buyer. >> thank you for that. u.s. appeals court says uber drivers will have to resolve any claims against the company individually and not through a class action lawsuit. the ruling on wednesday came in a case by uber drivers over the company's background checks. also impacts drivers in a separate lawsuit. accuse of exploiting them. less leverage against uber because they'll have to pursue claims through arbitration instead of a class action suit. so good news for uber. still to come, decision day at the ecb. we'll bring you a live report
5:11 am
from frankfort where policymakers are meeting right now. later on this morning, you don't want to miss this. you really don't want to miss this. wilfred's exclusive interview with the bank of america ceo brian moynihan. you're watching "world wide exchange," cnbc.
5:12 am
now that we've added adjustable base, my favorite part is to be able to lift your legs up a little bit, and it feels like i'm just cradled. change your sleep, change your life... change to tempur-pedic. now thru september 11th, upgrade and save on select tempur-pedic mattresses and adjustable bases.
5:13 am
5:14 am
welcome back. yesterday we were certainly flat. the dow and s&p just below the flat line and the nasdaq slightly higher. airlines lead the market high yesterday. apple closed higher. 0.6% after product launch yesterday. let's have a look at oil prices. turned around this week. two negative weeks. quite significant negative weeks. we gained 2% yesterday and another 2% today. 46.35 on wti crude. now president obama is wrapping up his visit to asia this week with a news conference in laos. he's expected to begin any minute. >> his final trip to asia as commander in chief. let's get to today's top story. ecb and policy decision around 7:45 a.m. eastern time. let's bring annette who joins us
5:15 am
live from frankfort. annette. >> reporter: thank you so much. actually economists are really split whether we'll see some action today or not. likely action until the end of the year is an extension of quantitative easing program here in the euro zone. of course the ecb buying 830 billion euros of government and corporate bonds per month. mostly likely will continue to do so beyond 2017 next year march, but when they are going to announce, we are not really clear. it could be as soon as today. could be october. most likely october. today we night get tweaks to program. a little bit of technicality, but it's very crucial to the program. they have a problem of scarcity of assets because they have self imposed creoling to what they allowed to buy. can't buy in bonds yielding less than negative deposit rate, which stands now at north.4%.
5:16 am
for the german bond union fierce it means 70% of german government bonds are trading below that threshold. you see the importance of actually doing something in that area. they could either lift that sealing or abandon it altogether. they could abandon that. that is again running into legal problems for the ecb here in the euro zone. you see they only have a very limited leave. what they can actually do in order to lift stubbornly low inflation in the euro zone the last reading just came in at 0.2% for the month of august. of course that is way below the target of the ecb, which is below, but close to 2%. also economic growth is not
5:17 am
going well here. you'll see a lot of questions during the press conference. nor now i'm sending it back tow yo. >> annette, thank you very much for that review. slight revision downward from june. that shows how much things have changed in the last three months. we had forecast straight after in july we would have expected such a big cut. shows how much this has been slugged off by markets at the moment economy. we're going to go to break here. coming up next. presidential hopefuls, donald trump answering questions at a live town hall event in front of an audience of veterans. we'll bring you the highlights we'll bring you the highlights next.
5:18 am
mr. clean will clean your whole house and every room that's in it floors, doors, walls, halls he's so tough, he cleans 'em all mr. clean!
5:19 am
are trading lower. keep in mind this is also tied to samsung announcing its will sell 6.3 million shares. as we just mentioned we do have our own here around the desk for me reaction on the big debut. it was funny. i was watching you tweet as the event was getting underway. at first you seemed a bit disappointed. at the end, there were more updates that medical opinin man >> this phone was i wenot groun breaking. it made design features. it's easy to dismiss this phone as not very innovative. a
5:20 am
5:21 am
i want to express my grad constitute for the warmth and kindness they've shown me as the first u.s. president to visit this nation. it's been memorable and at times a very moving visit. we're here because as a region with more than 600 million people, several fast growing economies, some vibrant democracies, but also countries transitions to democracies and given they strategic location along vital trade routes, the nations are critical to peace and process perty. not only to the asia and pacific, but to the world. among each others top trading partners. largest investors in this region and one of our largest markets for u.s. exports. supporting hundreds of thousands of american jobs. trade and investment fuels
5:22 am
prosperity across. part of my rebalance of american foreign policy to the asia pacific, i've deepened engagement with the nations of southeast asia and with the constitution. first to meet with all ten country, i've sustained my presence. i was proud to host the first summit in the united states at sunny lands california. our meeting here in laos was our eighth meeting. this visit marks my ninth to the region. more than any u.s. president. together, the united states and will as yan have mortgaged in partnership. remain central to peace, prosperity and progress. now part of the east asia summit. we have worked to make that organization the leading form
5:23 am
for dealing with political and security challenges, including maritime security. and we're guided by the shared vision of the region we put forward at sunny lands. respect for human rights. ensure a region where all nations play by the same rules. that's a vision we advanced here. we're stepping up efforts to increase trade and investment. as i announced this year, u.s. connect. we're doing more to connect businesses and investors to shart new ventures together. more to connect or entrepreneurs. encouraging innovation. more to connect clean energy projects as we pursue a low carbon future. all of which will reinforce the regions continued integration. given that for asian, i
5:24 am
reiterated i'm determined to do everything i can to approve tpp before i leave office. with regard to security, our nations reaffirmed commitment to a regional order where international rules and norms are upheld. where agreements are resolved peacefully. there was recognition of the importance of the international arbitration ruling in july, which is legal and binding, and which clarified maritime claims by the philippines and china in the south china sea. we discussed the importance of claimants adhering to steps to which they've already greagreed including respecting international law, not militarizing disputed areas and not occupying inhabited island, reeves and shores. i reiterated the united states will stand with allies and partners in upholding fundamental interests. among them the freedom of
5:25 am
overflight. peaceful resolution of disputes. the united states also continue to deepen cooperation of national challenge. discuss the importance of continuing to share information to prevent terrorism and the flow of foreign fighters. given the threat of climate change to all or nations, especially countries in this region, we agreed. we agreed to cooperation in the fight against human trafficking, including sharing more information on smugglers, closer law enforcement cooperation and more support for victims. and the 18 nations expressed grave concern about north korea provocative missile launches. and called on north korea no uphold its international obligations. finally i'm pleased that we continue to deepen the connections between the people of america.
5:26 am
particularly our young people. the aspiring young men and women i met with at the town hall yesterday. yun southeast asian leaders niche give is now 100,000 strong. the women east leadership economy i announced yesterday will support women leaders in government and civil societies and we're going to increase language skills among students and teachers through or english for all program. closing, i'm mindful in is the last day of my last trip to this region as president. when i think back to the time that i spent here as a boy, i can't help, but be struck by the extraordinary progress that's been made across the region in the decade since. even though there's a lot of work to do be done. it marine means a great deal t we've increased cooperation between asian countries and the united states. it is us precedented the breadth
5:27 am
and depth of relationship. we made it clear that the united states will continue to stand with the people of this region in advancing their security, prosperity, and dignity including universal human rights and i'm very optimistic the ties of friendship between our people as reflected by the room full of young people we saw yesterday will bring us even closer in the years to come. so with that, i'm going to take a couple of questions and i will start with cathleen of ap. >> thanks very much, mr. president. there's been a lot of talk back at home and here about how you received on this trip, your last to asia. donald trump said you were humiliated. i suspect do you think that was overblown. >> yes. maybe you could talk about whether you think you're
5:28 am
reception here was at all limited to some of the -- or at all related to the limits and challenge of your asia pivot policy and while we're talking about legacy items if i could just ask another quick one on kwaun tan mow bay. you have four months left. 60 prisoners left. at this point, are you willing to acknowledge the prison will be open by the time you leave office. >> in terms of my reception here. as far as i can tell, it's been terrific. i don't know if you've gone and talked to some people in laos. they seem pretty happy about my visit. everywhere we've gone, we've had a great reception. just as earlier when we went to vietnam. we got a great reception. you'll recall millions of people lining the streets. so if this theory about my
5:29 am
reception and my rebalance policy is based on my going down short stairs in china, yes, i think that is overblown. i think any reasonable person, certainly any person in the region would be puzzled as to how this became somehow indicative of the work that we've done here. you know, if you look at the remarks of leaders, if you look at the remarks of ordinary people, if you look at the concrete work that we've gotten done on everything from economic programs to development programs to legacy of war issues to promoting civil society in young people, the concern that i've heard is not that what we've done hasn't been important and
5:30 am
ses. . the concern i've heard is will it continue and almost uniformly the question i get from other leaders is we hope that america's interest and presence and engagement is sustained. and my hope and expectation is that my successor will in fact sustain this kind of engagement because there is a lot happening here. you know, you've got countries here that are taking off. you've got one of the most dynamic and youngest popularlation populations in the world. this is where the action is going to be when it comes to commerce and trade and ultimately creating u.s. jobs by being able to sell to this market and that's the only feedback that i've received. and that's not just based on
5:31 am
what leaders tell me. if you read local newspapers or you talk to people, that's been the same commentary that we received generally. with respect to guantanamo, i am not ready to concede that it may still remain open because we're still working diligently to continue to shrink the populati population. i continue to believe that guantanamo is recruitment tool for terrorist organizations. it clouds and sours some of the counter terrorism organization we need to engage in. it's not necessary and it's usually expensive for u.s. taxpayers. is there strong resistance in congress, absolutely, but as we
5:32 am
continue to shrink the population to the point we're looking at 40 or 50 people and are maintaining a multimillion dollar operation to house these individuals, i think the american people should be asking the question why are we spending this kind of money that could be spent on other things when it's not necessarily for the safety and security. so there's no doubt that because of the politics in congress right now it is a tough road to hoe, but, you know, i expect to work really hard over the next four months, five months. four and a half months. margaret brennen. >> thank you, mr. president. can you el us if last night
5:33 am
philippine president offered his apologies to you and last night, donald trump said vladimir putin has been more of a leader than you than he said you have reduced american generals to rubble. do you care to defend your legacy? >> do i care to defend my -- okay. okay. respond. i did shake hands with president last night. it was not a long interaction. i indicated to him my team should be meeting with him and moving forward on a whole range of issues. as i said when i was asked ant this in china, i don't take these comments personally. it seems it's a phrase he's used repeatedly, including directed
5:34 am
at the pope and others so i think it seems to be just, you know, a habit, a way of speaking for him. as i said in china, we want to partner with the pill mean pil on that narrow issue, we do want to make sure that the partnership we have is consistent with international norms and rule of law. so we're not going to back off our position that if we're working with a country, whether it's on anti-terrorism, whether it's on going after drug
5:35 am
traffickers, as despicable as these networks may be, as much damage as they do, it is important from our perspective to make sure that we do it the right way because the consequences of when you do it is wrong way is innocent people get hurt. you have a whole bunch of unintended consequences that don't solve the problem. it has no impact on our broader relationship with the philippine people. the wide range of cooperation we have with the treaty ally. it has no impact on how we interpret or obligations to continue to build on the long-standing alliance that we have with the philippines, however that may play itself out. my hope and expectation is that
5:36 am
as president duterte and his team get acclimated to his new position, they're able to define and clarify what exactly they want to get done, how that fits in with the work we're already doing with the philippine government and hopefully it will be on a strong footing by the time the next administration comes in. as far as mr. trump, i think i've already offered my opinion. i don't think the guy is qualified to be president of the united states. and every time he speaks, that opinion is confirmed. and i think the most important thing for the public and the press is to just listen to what
5:37 am
he says and follow up and ask questions about what appear to be either contradictory or uninformed ideas. there is this process that seems to take place over the course of the election season where somehow behavior that in normal times we would consider completely unacceptable and outrageous becomes normalized. and people start thinking that we should be graded on a curve, but i can tell you from the interactions that i've had over the last eight or nine days with foreign leaders that this is serious business, and you have to know what you're talking about and have to have done your
5:38 am
homework. when you speak, it should actually reflect thought out policy that you can implement. and i have confidence that if in fact people just listen to what he has to say and look at his track record or lack thereof, they'll make a good decision. >> thank you very much, mr. president. on north korea, there's evidence china isn't enforcing economic sanctions namely when it comes to coal. what's your move there in your remaining four and a half months in august. second is it time for a rethink of north korean policy given the years of condensation and increased saipgs sanctions haven't led to desired outcome. >> those are good questions.
5:39 am
in my meeting, we expressed -- i can tell you based not only on their presentations, but actually intelligence and evidence that we've seen, china has done more on sanctions implementation than they have on previous u.n. security counsel saipgs sanctions, but you are absolutely right. still places they need though tighten up. we continue to indicate to them the importance of tightening those up. you may have noted china continues to object to the fad deployment in the republic of korea. one of our treaty allies. i said to president shoe directly, we cannot have a situation where we're unable to defend ourselves or our treaty allies against increasingly provocative behavior and escalating capabilities by the
5:40 am
north koreans. i indicated to him if that bothered him, particularly since it has no purpose other than defensive and does not change the strategic balance between the united states and china, they need to work with us more effectively to change his behavior. when it comes to changing his behavior, it's tough. it is true our approach. my approach since i've been president is not reward bad behavior. that was based on the fact before i came into office, you had a pattern in which north korea would engage in some provocative action and as a consequence of the equivalent of throwing a tantrum, countries would then try to plight gate
5:41 am
them by giving them humanitarian aide or providing other concessions or engaging in dialogue which would relieve some of the pressure and then they would go back to the same provacative behavior later. so our view was that wasn't working. let's try something else. now it is entirely fair to say that they have continued to engage in the development of their nuclear program and these ballistic missile tests so we are constantly examining or strategies that we can take, close consultations with republic of korea and japan and china and others who are interested parties. and we do believe that if there are any signs at any point that north korea is serious about
5:42 am
dialogue around denukization in the korean peninsula, we'll be ready to have those conversations. it's not as if we are looking for a problem or avoiding all willingness to engage diplomatically, but dememo si requires that meet obligations. of the inducements that might be put on the table. so look, we are deeply disturbed by what's happened. we are going to make sure that we put our defensive measures in place so that america is protected, our allies are
5:43 am
protected. we will continue to put some of the toughest pressure north korea has ever been under as a consequence of this behavior. can i guarantee it works, no, but it is the best option that we have available to us right now and we will continue to explore with all parties involved, including china, other potential means by which we can bring about a change in behavior. >> thank you, mr. president. first i want to let you know i have a personal question for you. almost the same age. i'm two weeks younger than you. >> i noticed that in the jim. you we gym, you were working out harder than me. >> i want to ask you about your thoughts all those years ago, we were living in the age of the
5:44 am
vietnam era. what were your thoughts of vietnam at that time and as time went on and more importantly about the secret war and as you found out about that and as time went by. given what you learned about that what you see now, do you think you should apologize fully to the country of laos and one other important thing too, for those american veterans who did serve in the secret war, those that are special ops, cia, the ones that dropped the bombs. they targeted known enemies in a war they did not create. would you be comfortable in laos calling them heros as we do with those who served in iraq and afghanistan. >> because we're the same age, you'll recall that the peak of the war, we were still too young to fully understand the scope of what was taking place.
5:45 am
it was the tail end of the war where we're entering high school and starting to understand the meaning of it. at that point, it was i think the debate had raged even those who had been strong supporters of the war, recognized there needed to be some mechanism to bring it to an end. i can't say that i was so precocious that i had deep thoughts about it at the time other than the images we all saw on television. standing here now in retrospect, i think what i can say is that the united states was on the right side of history when it came to the cold war. there may have been moments
5:46 am
particularly here in southeast asia in which in our singular focus on defeating an expansionist and very aggressive communism that we didn't think threw all the implications of what we did as policymakers. and, certainly, when you see it will dropping of cluster bombs trying to figure out how that was going to be effective, particularly since part of the job was to win over hearts and minds. how that was going to work. i think with the benefit of hindsight, we have to say that a lot of those consequences were not ones that necessarily served our interest. having said that, and i've said
5:47 am
this before, regardless of what happens in the white house and decisions made by policymakers, when our men and women in uniform go into action and put their lives on the line and carrying out their duty, my attitude is they're always heros because they are saying that i am willing to do whatever it takes, what my commander in chief has ordered in order to keep the american people safe and by definition, their job is to put their lives on the line and make sacrifices both seen and unseen that have long standing ramifications and that act of sacrifice is heroic. and one of the things that, you
5:48 am
know, when i think about in terms of legacy, and i think reflect back on my presidency as it comes to an end is the degree to which i came in respecting and honors our men and women in uniform. i leave here even more in awe of what they do. and it also is one of the reasons why i take so seriously the decisions i make about war and peace. because i know whatever decision i make, there are men and women out there who will kaecarry out decision, even if they think it's wrong. even if they didn't vote for me. even if they have completely different ideas about what's required for our national security. that's heroism. that's service.
5:49 am
that's the definition of it. that puts a special burden on the occupant in my officy offict it right. or at least as right as you can. and hopefully when people look back 20 years from now or 30 years from now, the decisions i made, they'll be able to say he did pretty good. all right. thank you very much, everybody. let's go home. that was president obama speaking at the end of week long trip in laos. some of the headlines from what he was saying. the u.s. is firmly a part of the east asia summit and continues to hope to see trade and investment in the region to pick up. he commended the progress the region has made in the last decade over the course of his presidency. in terms of the response to the reception he's got, many stories suggesting his reception in the region hasn't been as warm as he expected.
5:50 am
he said that was wrong. it's been terrific reception, particularly in laos and vietnam and the stories over here in the united states have been negative reception he said was overblown. >> ninth tour . he has a history in indonesia. spending years there in his childhood and really reselling the pivot to asia, the rebalance policy, that's been the center piece of his foreign policy throughout his time in the white house. he talks about security, trade foremost, probably with the trance pacific partnership since a lot of asian nations are parking lot of that negotiation and what i found interesting is renew our determination to get that signed. signed off by congress before he leaves office. he only has four months left. >> he expects to work hard in the last four or five months. >> other headlines as well, he said the leader he met would be concerned there's not a continuation of his policies in
5:51 am
asia. he said, quote, this is where the action is going to be in terms of commerce and trade and ultimately creating u.s. jobs talking about the region of asia. he said he shook hands with president duterte of philippines last night of course. >> not a prolonged engagement. >> not a long sbrastinteraction he was asked about candidate trump's comments last night on nbc towards the likes of mr. putin and said i don't think trump is qualified to be president. every time he speaks that is confirmed for me. in terms of the military, following a question about the effectiveness of the past bombing in laos where he was speaking many years ago, despite that effectiveness, every time the military go into action, they've always been heros. those comments coming from the president in laos at the end of
5:52 am
his week long trip in asia. more reaction today. reaction to what the markets are doing right now. when we come back here on "world wide exchange." markets right now called slightly up.
5:53 am
5:54 am
welcome back to "world wide exchange." we are called higher. s&p by eight points. nasdaq by .5. little time to discuss markets. good morning to you. thanks for joining us this morning. the data in the last week, it slipped, but equity markets haven't really slipped too much in response to that. what can we take from that. >> the odds of september hike have now gone down.
5:55 am
down to 20%. week ago around 40% or so. weak data means the fed is on hold again in all likelihood and that is providing a boost to, you know, liquidity conditions and that's been a big driver for stocks. it's a positive over the near term. >> what about the ecb there's a lot of focus on what privilege log is log. >> i don't know what to expect for today. my guess is over time they will still continue to expand their program. they're running out of bond to buy. they may have to expand the list of candidates and the scope of how much and for how long. my guess is that's coming. anywhere outside the u.s., central banks are still in easing mode and trying to figure out how to do more.
5:56 am
in the meantime the u.s. is trying to swim against that tide. having trouble doing so. >> over the course of august, we can't see the absolute levels change too much. a lot of sector rotation within that based on interest rate hike expectations. given that chance of september hike slipped, do we think the rotation we saw in august is going to unwind now? >> you see some rotation. whenever the odds of a rate hike go up, usually the financials do better. it means higher rates. maybe a different yield curve. and then when rates fall, those fall out of favor. then you get back into the whole bond proxy phenomenon. those are basically following the ten-year down. the ten-year yield is around 1.5. nothing a lot is happening, but if the ten-year were to fall traumatically from here. >> thank you for joining us
5:57 am
today. that's it for "world wide exchange" this morning. thanks for joining us: "squawk box" is coming next. mr. clean gets tough on dirt and grime and grease in just a minute mr. clean will clean your whole house and every room that's in it floors, doors, walls, halls he's so tough, he cleans 'em all mr. clean!
5:58 am
5:59 am
good morning. crude prices rising. plus the ecb is set to release latest rate decision. full market rundown straight ahead. plenty of corporate news this morning. including deals from hp enterprise, intel, and liberty media. plus your money, your vote. putin praises trump. hillary defends e-mails and mexican finance minister calls it quits. round up of all the drama. it's september 8, 2016 and "squawk box" beginning right now.
6:00 am
good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick with joe kernen and andrew sorkin. you did see the nasdaq hitting a new all-time high. markets picked up during the course of the day. we did see the s&p and dow down slightly. nasdaq at a new high. also, we've been taking a look at some of the markets that had been in asia as well. get you caught up on all these issues in a bit. there's asia. the nikkei down .33 when it closed. the hang sang up . >> third of a percent, i sul


info Stream Only

Uploaded by TV Archive on