tv Worldwide Exchange CNBC March 6, 2017 5:00am-6:01am EST
good morning, breaking deal news. general motors selling its european car business to the maker for $2.3 billion. >> the news of deutsche bank tumbling after the german lender launches 8.5 billion capital hike. we hear from the ceo. that's coming up. >> washington with the latest on the president's claims that former president barack obama wiretapped trump tower. it's monday march 6th, 2017. worldwide exchange begins right now. very warm welcome to
worldwide exchange on cnbc. i'm with courtney reagan in for sarah today. good morning. >> good morning. happy monday. >> great to have you with us. let's go straight to global market action. >> take a look at futures after friday stocks ended only just marginally higher. we're poised to open slightly lower, we have 4 1/2 hours to go before the opening sounds in the united states. the dow jones industrial is called lower by 35 points. s&p 500 down about 7 points for the futures and nasdaq off about 13. if we take a look at the action on the ten-year treasury, we did hit a high on friday of over 2.52%, the highest since mid february. now you see we've pulled back just a bit here, 2.464. there's so much that happened over the weekend in politics both in the united states as well as globally. >> indeed. very slight gains, of course, we saw on friday. for the week as a whole, four straight weeks of gains for dow. the dow up just shy of 1% last
week. led the pack of indexes up 0.7, financials best performing sectors. telcos the worst performing. we saw china kicking off annual meeting of parliament. the chinese premier struck a cautious tone say china would expand its economy around 6.5% lower than the growth target of 6.527% of last year. either way markets not too perturbed, china up half a percent this morning, hong kong up of asia other than japan you can see was higher and essentially playing catchup. last week europe aup, asia was not. europe was strong last week over the likes of france and germany and as much as 4.5% for the likes of italy.
this week we're snapping down a little over one-third of 1%. german shares down 5%. that's not as bad as some feared over the weekend as they announced that capital raise. we'll get more to that and more m & a stories as well. we need to touch on financial services. >> it's a busy monday morning so let's get a check on broader markets. expect a lot of headlines coming out of the energy market. right now, though, wti crude down a little. brentd down about the same. half a percentage mark. last week we saw prices fall about one -- a little over 1.2% for the week. for your the second negative week in a row, but we'll see exactly what we hear out of opec producers and nonproducers this week. there's a report that the secretary-general says it's too premature to know whether the opec deal will be extended. so that's going to be the headlines at the market.
we'll take a look. if we can look at the dollar at least earlier in the session, you can see here the euro is lower against the dollar, though the dollar is lower against the yen and the pound is lower against the dollar here. and we saw a move just recently in the euro. >> yeah. the euro, about 0.3%, slightly high ir. the head of the republican party decided he wouldn't challenge. that's happened in the last 20 minutes or so. that just means essentially it's a fight between the two. there was a fight if they shuffled around the candidacy and all sorlts of scandalous claims that could be another anti-le pen. it did move by 0.3% in the last 15 minutes or so. let's have look at the dollar boards because of some interesting observations there. we did see the dollar higher. of course, last week, the fourth positive week in a row.
but for the week as a whole it was up only a quarter of 1%. the gains have been consistent, but they haven't been resounding in size. on friday the dollar did decline. that was despite janet yellen confirming it was march on the table by the fact the dollar had strengthened over the prior week and got higher. when janet yellen confirmed it, it slipped a little bit. the euro and the pound have their own reasons to suffer against the dollar, but the dollar/yen, as you can see, also suffering a little bit this morning. gold prices to round things off, bad week last week for the gold price. 2.5%, of course, offsetting gains we've seen so far this year. up half a percent. now to this week's agenda, today january factory orders are out at 10:00 eastern.
on thursday we get february input prices. on friday the moptdly jobs report. the earnings report slows this week, but we'll still hear from the likes of browns, dick's sporting and adidas. >> adidas. >> that one is definitely right. i mostly in the last year. >> i want to go -- >> anyway, breaking news, it's official general motors is selling to the psa group for about $2.3 million. the maker of peugeot. this is behind volkswagen. this complete s gm's exit. >> nike. i used to say it. adidas. >> i agree. i think i think adidas is actually correct. >> anyway, you're very nice.
a warm way. it's such a warmer tone than my regular co-anchor does. moving on, breaking news this morning, deutsche bank announcing $8.5 million. telling cnbc it was the right time to go to the market. deutsche bank announcing a change to its executive team, naming two deputy ceos to work alongside criyan. >> i said i'm 150% in. >> it's an effort to turn its business around. they will left the minority stake in its business and finance its global markets and banging divisions. they also designed to scrap the sale of its unit and instead integrate it into its german retail group. as you can see, shares down about 6%le we're going to talk in detail with jeff with more of
that interview with mr. cryan in a couple of minutes. this is big news. 6% is huge but i think over the weekend people thought it could be more. then it's a significant step forward. it also comes off the back of the unicredit. they had a massive 13 billion euro fund capital raiser. depending on which way you look at this, the european bank is still facing a lot of issues or row could say two of the biggest lenders in the country could raise capital. europe is starting to draw a line under this issue. sig can't move. 6% decline is a little less bad then people thought. we'll talk about that more in our interview with john cryan. standard life is buying aberdeen asset management. here you see both company shares
are moving liar. standard life higher by 5% and aberdeen by almost 4%. >> margaret gilbert is the ceo of aberdeen and will now become the co-ceo of the merger. in seattle management, you to be either small or very big and this is going to make them a lot bigger. we even seen quite a lot of this happening. you saw henderson pairing up. this now will pit them as the biggest phrma in the uk, the second biggest in europe and certainly on a global scale able to compete. smaller than the likes of blackrock but investors on both sides of the deal taking it well. in washington news fbi director james comey is reje rejectirejec
rejecting president trump's wiretapping claim against president obama. president obama's intelligence chief said no such action was ever carried out but the trump white house is now calling on congress to investigate. >> wow. quite a story. in other washington news president trump is expected to issue a new version of his executive order on immigration today. it will apply only to future visa applicants, not those who already hold valid visas. the revised order is expected to remove iraq from the list of countries whose sit extends face a temporary travel ban. pentagon officials have warned keeping iraq on the list could hinder the fight against isis. the house republicans are sets to introduce their long awaited bill. the draft bill obtained by cnbc would get lower in the next few years. it would provide tax credited,
cut taxing on medicaid and the provision for employers to provide insurance. moving on, a developing story this morning. north korea fired four ballistic missiles into the ocean early this morning. they flew about 600 miles with three landing in waters, japan claims as an exclusive economic zone. it's unclear what types they fired but it could be seen as a provocation by trump administration. in other news out of asia, we're not done yet, their budget will rise 7% to about 15 billion. that's the smallest increase in more than a decade as the cha niece economy has slowed. china's defense spenldsing amounts to only a quarter of the u.s. defense budget. although many experts believe beijing's actual spending is much higher. still to come, we'll hear from deutsche bank ceo john
cryan. the latest on the company's turnaround efforts coming up. stay tuned. you're watching "worldwide exchange" on cnbc. whether it's connecting one of the world's most innovative campuses. or bringing wifi to 65,000 fans. businesses count on communication, and communication counts on centurylink. the markets change... at t. rowe price... our disciplined approach remains. global markets may be uncertain... but you can feel confident in our investment experience around the world. call us or your advisor... t. rowe price. invest with confidence. bp gives its offshore teams 24/7 support from onshore experts, so we have extra sets of eyes on our wells every day.
shy of 1%. last week it was up about a half a percent. both on thursday and friday we saw massive gains for snap, up 41% on day one and 11% on friday. good performance from that. will it spur more ipos. of course, they'll be looking at that. let's have look at european markets. one bank is in focus. deutsche bank is down 6% as it announces a rise. as you can see, profit-taking across the board here strong performance up over 2% for the likes of france and germany. but let's dive in in more detail to the deutsche bank story. of course, as i said, sliding on news that it will reorganize and issue new shares to reach at least $8.5 billion. geoff cutmore joining us live with all the details. good morning to you. >> good morning. there are several parts to this story. the one the markets have seized
upon initially is the big headline, $8.5 billion capital raising that is written. perhaps that's why the market selloff on this story is not as extreme as some might have imagined, and that is the restructured of the investment bank and capital markets unit in one business which john cryan says will save $700 million per an um. and, of course, there's the selling off of a minority in the asset management business. so as you can see, deutsche bank is down about 6% at the moment, but it's been off less than that and the market is coming to terms with the idea of what this capital raising means. why did they do it? let's hear what john cryan had to say to me. >> they were listening to some feedback from the market where there were still concerns h were to some extent shared by our clients and counterparts ha we still didn't have enough capital. >> you know. why didn't they do this before
because john cryan has overseen a restructuring program since 2015 that maps out changes to the bank until 2020. well, you know, animal spirits have been unleashed, serendipity and market gain have persuaded deutsche bank that now it's time to pivot to a slow growth strategy. let's hear how john cryan described it. >> the u.s. market, you'll see from asset prices, it's almost booming. there's a lot of confidence there. that's confidence the government will deliver. >> there you go. i think john cryan has a story to tell today. we're raising money here not just because we want to, but for our capital levels. clearly that's important and that's what clients and customers have been urging thisle to do, but they do see an opportunity to go out and do a lot more investment banking
business. as john cryan was telling me, they see a refresh of capital bond buying and they feel now is the time to refocus to take advantage of what they currently see as a strong market opportunity. back to you. >> yeah, geoff, absolutely. and clearly the investment banking part of the business is where they compete with the big u.s. guys and they lose there. so it will be interesting to see if this will allow it to fight back in terms of the position it used to have. just more broadly on terms of the timing, you know, some headlines suggesting that this is highlighting the very negative outlook that european banks still face versus the u.s. banks which, in fact, are boosting capital return at this time to their shareholders. ha said, could we look at this darnlts way, particularly off the back of unicredit doing their own capital raising. european banks drawing a line under what has been a torrid
couple of years. >> yeah. however, it's like getting blood from a stone. the housing financial crisis was nearly a decade ago and still we see european banks in special measures and resorting to self-help tools to try to convince investors the keep the faith. but i think john cryan made a very important point to me, and that is that he doesn't feel that deutsche bank and other european banks at this point are getting the benefit of the doubt for the improving business outlook. cost of capital still too high. cost of equity still too high. and that reflection of markets nerves around the capital buffers some of clearly this helps deutsche bank along the road. i think the frustration story is one you pointed out, will fred, that these banks still feel they're playing second fiddle to the u.s. banks at this point and this is one more step along road, i think, for deutsche bank to try to put itself back in a position where it is no longer
running down risk-weighted assets or losing business to the likes of bank of america or others in the united states. back to you. >> geoff, just a quick final one on mr. cryan. clearly you've said he's anoujsed different restructuring plans in the past. it's not a complete u-turn, but there's a change in direction and there are deputies cos underneath him. is this aligning him to step town in a short period of time? >> critical question, will fred. i did ask him that. i said, look. there have been some rumors in the european press that you may be getting weary with the reorganization. if i walk over here, i can show you on the wall. christian sewing who heads the retail operation, marcus shank who runs the cfe have been upgraded to these co-deputy
ceos. john cryan says e's not going anywhere. he's 150% committed to his job and he's all in, although, as you say, there have been some reversals in strategy, not the least of holding on to the retail bank in germany that they had been looking at previously to sell. now they'll be integrated and cost savings. back to you. >> thanks very much. that wall you put up, very nice indeed. >> i how the same thing. wow, that worked really well. still to come, accusations fly in the nation's capital when president trump accuses president obama of wiretapping his phones. the latest coming up. i have access to the oil markets and gold markets.
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welcome back to "worldwide exchange." lots of news out of washington this weekend including accusations of wiretapping. nbc's edward lawrence joins us with the details. good morning. >> good morning. aet the moment he's not offering any proof, but still the mention has the intelligence community has them scrambling. president donald trump returns to washington after asking congress to investigate claims of wiretapping. mr. trump made the allegations on twigger of the weekend and offered no proof to back up the
claim. >> let's find auto. let's have an investigation. if they're going to investigate russia ties, let's include this as par of it that's what we're asking. >> reporter: c news has learned james comey is asking the justice department to publicly reject the claim that former president obama ordered the wiretap. the former director of national intelligence says that there was no secret court order to tap mr. trump's phones. >> i can deny it. >> there is no fisa court order. >> not to my knowledge. >> of anything at trump tow. >> no. >> democrats argue this is a diversion. >> the president, you know, is deflector in chief, anything to change the subject from where the heat is. >> deflecting from revelations that attorney general jeff sessions met with the russian ambassador but failed to disclose it. >> i'm not going to be part of a witch hunt, but i'm also not going to be part of a coverup. >> introducing bills as early as
today. and the president is expected to sign a new executive order today on his temporary travel ban. it is so far not on his schedule yet. reporting live in washington, back to you, wilfred, courtney. >> edward, thanks for that. now on to sports. dustin johnson gave every indication he plans to stay on top for a while. in the final round of the wgc mexico championship yesterday, johnson held off all challengers with a tough shot out of the bunker on the 18th hole and then tapped in for par on the victory -- for the victory, rather. johnson has won five times on the pga tour over his last 15 starts dating back to the u.s. open last summer. i feel like in my house it's not sunday unless i hear the golf clap. >> my house is the opposite, i'll say. >> fair enough. >> lots of soccer, which is very disappointing. still to come, this morning's top stories of the round joup of global markets, plus all of the trending top
for space exploration including a lunar delivery system. it's monday, march 6th, 2017. you're watching "worldwide exchange" on cnbc. fire ♪ good morning and a very warm welcome to "worldwide exchange" here on cnbc. i'm wilfred ross along with courtney reagan, in for sara today. good morning again. >> katy perry theme, carried over from the last break. >> using katy perry again? there we go. this is pink, apparently. >> oh, this is pink. totally wrong. shoot. >> i wasn't able to correct you naturally. i only got a prompt in my ear to tell you that. but anyway, let's get straight to the market action. >> take a look at futures under a little bit of pressure as we started off the show, and that's likely here continuing, but just around the same levels we saw earlier. and this is after all three major averages posted only the slightest of gains on friday. the dow is up three points, the
s&p up one and the nasdaq up 9 1/2. so, that's sort of the action that will begin from the u.s., the carry-through over the weekend when we open up markets today, but that's after the dow had four positive weeks in a row, the s&p and nasdaq six positive weeks in a row. financials were leading the sectors last week. biotech actually also outperformed. and there's the news in the sector, so we will have to see if that carries through. we take a look at what's going on -- >> only very slight gains, of course, for the main indices on friday we should point out. >> just the slightest. >> another great day for snap, though, up 11% following its 44% gain on its market debut on thursday, and in high, high volume as well, snap traded more than 148 million shares on friday, the next biggest trader was bank of america, of course, which has a way higher market cap. >> still, a lot of people skeptical about the valuation for snap, of course. >> right. two big first trading days. >> pretty incredible. >> as i was saying last week, the real positive there i wonder if it will be for financials because there will be all these other potential ipos on the
sidelines looking at how well and smoothly that one has gone. i'm sure rushing forward on their plans to list. >> right, that's true. take a look at what's going on overseas in asia. we had mainland china actually finish the session higher, and this, of course, as the national peoples congress has begun, under way, and china now targeting growth of 6.5% this year, down from last year's 6.7% actual rate rise. it's a 25-year low, though, for this industrial powerhouse, though you can see japan was a bit lower and mainland china shares higher with the shanghai up about 0.5%, but a lot of action with north korea firing a ballistic missile toward japan. so still a lot of action overseas. if we can look at what's happening in europe, european markets are lower across the board. we talked about what's going on with deutsche bank, of course, and that is going to weigh on the financials. also some of those resource, basic resource stocks laggards
as well now that we have that slowing growth news out of china. but some merger news as well also helping shares move the other way between standard life and aberdeen asset management. both of them are higher in that $13.5 billion merger deal. >> and i think just coming back to deutsche bank, clearly, shares in germany, the index down 0.5%, deutsche bank down about 6%. we discussed briefly there the timing from a deutsche bank perspective for that capital raise. i do think a huge factor in this is just the market factor, and it comes back to the snap ipo. markets, of course, have rallied across the board, banks have rallied, europe has played catch-up but generally speaking has risen significantly since the trump election. and bearing in mind, the change in sentiment towards banks globally since the debts of the deutsche bank and the wells fargo scandal happening at the same time in september, to now, that's a big, big reason why deutsche bank have done this capital raise very much quicker than people thought. of course it was coming at some point, but the indications as
ewent through earnings and geoff cutmore's first interview with him in dabos was that this was coming soon. but when you look at the global environment it makes sense. and unicredit in italy got through a massive credit themselves two weeks ago and i'm sure that spurred deutsche bank on to say let's get this done, let's move forward. deutsche bank down about 6%. and as we were saying, perhaps could have been worse. >> certainly. >> so, 6% is a big decline, but probably relative to expectations not too bad. let's have a look at broader markets. oil prices this morning are a little low, down 0.6%, bang on $53 for wti, the price this morning. oil was up on friday, but it was down for the week, down just over 1% last week. if we look at the 10-year treasury note, we were up above 2.5% late last week. of course, expectations for a rate hike in march have soared over the last 2 1/2 weeks to close to 100% now. we're above 90% for that rate rise likelihood in march, but over the weekend, we've just
seen yields slip a little bit. some risk-off sentiment for political reasons over the weekend sent some buying of the 10-year treasury note to 2.467%. dollar, if we look at prices there, as yields have slipped a bit over the weekend, as has the dollar, it slipped against the yen, and that's what we were seeing more broadly for the dollar across all assets, but then some currency-specific moves for the euro and pound have seen them slip against the dollar. so essentially, the dollar is mixed this morning, but not big moves either way, about a third of a percent both directions. euro and pound down, but the dollar lower against the yen. gold prices, it was a bad week for gold, down 2% last week in the face of the dollar moving higher, and of course, it's a 2.5% decline relative to a big, big rise that gold has seen so far this year. up 0.5% this morning. >> gold had the worst week since november last week. now on to this week's agenda. there's a fair amount of
economic data. today, january factory orders are out around 10:00 a.m. eastern. wednesday, look for february adp report as well as revised fourth-quarter productivity and labor costs. on thursday, february import prices and then it's topped off on friday with the monthly jobs report. the flow of earnings reports slows a bit this week, but we'll still hear from the likes of brown-forman, dick's sporting goods, h&r block and adidas or adidas, depending where in the world you are and how you pronounce the name of that company. breaking news in deals, it is official that general motors is selling opal psa group for about $2.3 billion. they are the maker of citron cars -- >> go back to the first one, peugeot. peugeot. not peugeot. >> the acquisition of opel propels it into second place in europe. this is behind volkswagen. the deal completes gm's exit from europe. meantime, breaking news on
the banking front, as we already mentioned, deutsche bank announcing an $8.5 billion capital increase. shares dropping on the news. the ceo telling cnbc it was the right time to go to mark. >> we were listening to some feedback from the market where there was still concerns, which were to some extent shared by our clients and our counterparts, that we still didn't have enough capital. >> deutsche bank also announcing changes to its executive team, naming two co-deputy ceos to work alongside cryan. they will also list a stake in their asset business. the firm also decided to scrap the sale of its bank unit and integrate it into its german retail group. we've mentioned this already, down 6.5%, but perhaps not as bad as some had thought. now to news out of asia. china kicked off its annual meeting at parliament. the chinese premier struck a
cautious tone on the economy. eunice yoon is joining us from beijing with the latest. eunice, good morning. >> reporter: good morning, wilfred. well, china's leaders have gathered here in beijing for the annual national people's congress, a time when the lawmakers map out the economic agenda for the country for the year. and looming over it all is the trump administration. over the weekend, i spoke in an exclusive interview with the chinese vice finance minister, and he told me that the biggest source of uncertainty for china this year is u.s. policy. >> internationally, our single biggest challenge is uncertainty. so, i see some uncertainty possibly with the trump administration economic policy as far as what will happen and what impact will the u.s. economy and the global economy. second is certainly the federal reserve, how they make decision for interest rate. >> reporter: and the vice finance minister also told me that beijing needs and wants to
have better communication with the trump white house. and i specifically asked him if he's concerned that beijing is going to be labeled a currency manipulator. >> we hope that repeats reality and also u.s. treasury have their three conditions. we are in close communication day by day. >> reporter: and another big concern among trump advisers as well as foreign businesses is the lack of market access. many american companies, as you guys know, have been complaining about what they see as a more hostile environment here. and i asked that to the vice finance minister, and he told me that under the leadership of the president, xi jinping, that china would continue to embrace a market-oriented economy and that foreign firms would see the results soon. guys? >> eunice, just quickly on the other story, of course, over the weekend, any response from china so far about the further testing of missiles by north korea?
>> reporter: there has been a reaction. beijing condemned the north korean launch, and also at the same time said that they noted that south korea and the united states have held military drills targeted at north korea. they also have been calling for calm on the korean peninsula. and it's -- the mixed messaging is actually to be expected, because as you guys know, china and north korea are longtime allies, but at the same time, recently, their relationship has been coming under strain. >> eunice, as ever, thank you very much. eunice yoon for us live from beijing. moving on to today's top trending stories. jeff bezos' blue origin is expected to announce new initiatives this week, the latest step towards its long-term goal of building rockets. blue origin recently proposed to leadership and president trump's trns transition team about his interest in developing rockets and an amazonlike shipment service for the moon to deliver
gear for habitats by 2020, helping enable "future human settlement." he doesn't aim low. >> i don't know if he can do two-day delivery. >> you get free delivery if it's amazon prime, to the moon. i doubt it. but anyway, it's all exciting. i love this stuff. >> space is very cool. "gilmore girls" fans may be in luck. a top netflix exec says more could be coming to the streaming site. the content officer says he's in preliminary talks with the show's creator about additional episodes. this is after netflix aired a four-part revival late last year, leaving many fans asking for a follow-up series. almost anything is possible on streaming. >> well, i don't know about the series. i just hope they rush through the next "house of cards." >> yeah, it's been a while, hasn't it? >> well, it's only been a year, so i guess we can't expect too much. >> but we all watch them all when they come out, so it feels like it's been forever.
>> they have a ton of material. how much of a role the russian president played in the last series, i'm sure they can do a great series. we look forward to that. if you're watching, netflix executives, that's more important in our opinion. still to come, today's must-reads, and a programming note. we're covering houston, texas, the energy industry's biggest annual conference. tune in for interviews with the most powerful names in the oil and energy industry, a small taste there just listed. we'll be back in a couple minutes.
welcome back to "worldwide exchange." time now for our must-read stories, those catching our attention. my pick's in the "wall street journal," titled "why the white house worries about trade deficits." it's written by peter navarro. and he writes this -- "today, after decades of trade deficits and a mass migration of factories offshore, there is only one american company that can repair navy submarine propellers, and not a single company that can make flat-panel displays for military aircraft or night vision goggles." he goes on and lists other examples of similar positions that the u.s. is in relative to the rest of the world, and then he concludes, "that's why for both economic and national security reasons, it's important to bring america's trade back into balance through free, fair, and reciprocal trade." so, he's really putting a national security spin on this, beyond just the simple economics of it. >> right. >> it is actually a great outline of the argument for why
reducing trade deficits would work. it's a little one-sided, i would say. >> i was going to say, a little one-sided? very one-sided. >> but it's good both on the economic point and the aspect of offsetting current account deficits, which of course, america has with capital account surpluses, which also is similar to the uk position in that sense and the way that it means foreigners, the likes of the chinese government, offset the trade deficits by owning a lot of the bond market, for example. and the national security argument on that perhaps a little exaggerated but relevant and something, of course, we're hearing a lot about, whether from him or wilbur ross last week on "squawk box." >> and navarro, of course, part of the trump administration, we should point out. so, my pick is in the "washington post," titled "the trump experiment may come to an early tipping point." e.j. writes "no wonder trump hates leakers and the press. with so many republicans in congress prepared to abandon everything they said about the camp's ability before january 20th, 2017. the main lines of defense against executive abuses have to
come from journalists, those who supply them with the information, and courageous judges." it then ends with, "if there is any good news here, it's this -- alternative facts can take you only so far. a president can't just make up charges against his predecessor, call him a bad or sick guy, and then get away with it, can he?" and of course, this harkens back to the acquisitircusations from weekend that president trump says that president obama had ordered that trump tower be wiretapped and that came, we believe, from him hearing a report from a conservative group about it. so, it's interesting how trump listens to some news, other news is fake news, but not when it's, you know, a viewpoint that he wants to be heard. it's all very troubling. >> it is. >> we need to know if this happened or not, i think, is the fact of the matter. >> exactly. i think we have to wait, though, for the official facts to come out. >> of course. >> the other interesting thing, of course, this weekend was how quickly a tweet on this unbelievably serious issue from
the president -- >> yes! >> -- was followed by one saying that arnold schwarzenegger was fired, he hasn't resigned from "the apprentice." how quickly the tone can change from the tweets. >> a lot to get off his chest, i guess. came out in a tweet storm. >> we're getting ready for "squawk box." becky quick is live from new york. >> good morning. we have a lot going on this morning. picking up on where you left off in terms of russia and the tweets over the weekend, we'll be joined by former ambassador nicholas burns. he was the under secretary of state for political affairs. we'll talk to him about russia, national security and a lot of different issues. we'll also continue watching trumponomics, what's picking up in terms of what will be happening with the trump tax reform plan. we'll be joined by representative patrick mchenry. he is the vice chair of the financial services committee. so, we'll get a heads-up on what's been happening in terms of tax reform, when we can expect to see some of these plans moving through. trump himself, the president had said that we can expect
something maybe between the beginning to middle of march, and we are already looking at march 6th, so that brings us to that date already. by the way, you guys, march 6th, today is world tennis day. and later this morning we'll be joined by brad gilbert, the former tennis star, tennis coach, current commentatoror on espn. we'll get his thoughts on what's happening in the world of tennis and beyond. and we're joined by harry smith this morning from nbc. he's got a great story about a car wash that employs adults with autism. great story. can't wait to talk to him about that. also, special guest coming up this morning, wilfred! he's going to be joining us right here in studio, too, as fast as he can get here, so hurry up, wilfred. >> becky, i am, indeed. i will be there as fast as i can. i'm particularly looking forward to brad gilbert, former coach of andy murray. >> roddick and many others. >> i know we have to gear towards some american tennis players, but i'll get in one at least about andy murray. >> fair enough. >> becky, see you shortly. "squawk box" starts in 11
on what matters to you. morgan stanley. welcome back. the big february employment report that comes out friday. sort of a week late depending on how you look tat. chief economist at chase. fw morning to you. i mean i suppose the big story of the last couple of weeks is that rate hike expeck taegzs had had had soared above 90% and it hasn't derailed the market. >> i think the reason for that is people feel that with potential stimulus coming and the economy still doing well and inflation picking up. we just saw the headline, pce. moving to 1.9% and even if you take otfood and energy, it's still 1.7%. i think they're just trying to
make sure tat they don't give up this excellent window to do it. >> you mentioned the inflation picture there and lots of debates whether that's a good thing. in terms of is this going to be a good thing for markets or a bad thing? >> i think it's good because you're moving closer to the target. but right now we see no pressures and i think the reason is believe it or not, there's still slack in the labor force. if you look at part time workers as a share of the total labor force, we are at 17.2%. normally we go all the way down to 15.8%. so that could have had had as much as a million extra workers out there. and you see uger areas of slack also suggesting like the labor
force participation rate. even 2% below where it was at the end of the last expansion, you still will go up anver -- so a little bit of slack, but not lot and that's why average annual earning is hovering. >> what does that mean for other global central banks? >> now all the suden the european central bank doesn't have to worry about potential tapering or announcing or signaling theened of the year. now all the sund our currency gets stronger relative to theirs. makes their life a lot easier. >> it's the picture around the rers of the world suggesting they must need lessen their policies. >> if you go to europe, the unemployment rate has been going down every single year and we're
approaching full employment in that area and even the political instability seems to be ebbing a little bit. the spread between the 10 year and the 10-year french yield and that has come down from the peek we saw february 21st. >> we're approaching full employment in europe. >> 1.5% and we'll move to that so called narrow and natural rate i'll be at full employment. >> china, we got an update on their growth targ frts the year ahead. >> are you encouraged? >> it gives me a hint that they're serious about reform.
their latest target is not that much different. a targeted growth rate of 6.7. >> brautd measure of credit. >> why haven't we seen the dollar rise? >> right now there's a little bit of concern and uncertainty as to how fast i'll grow. relative interest rates and growth. you saw the atlanta fed now. there's not a lot of growth pressures right now. that's holding town the dollar. >> that's it for "world wide
exchange this morning." down 6% in europe. "squawk box is next." we can help guide your retirement savings. so wherever your retirement journey takes you, we can help you reach your goals. call us or your advisor t. rowe price. invest with confidence. i'm val. the orange money retirement squirrel from voya. i represent the money you save for the future. who's he? he's the green money you can spend now. what's up? gonna pay some bills, maybe buy a new tennis racket. he's got a killer backhand. when it's time to get organized for retirement, it's time to get voya.
breaking news out of yurm. gm is selling its car business. meanwhile, deutsche bank is announcing a capital hike. we'll have details straight ahead. going to be a busy day in washington. president trump gets ready to sign a new immigration order and gop expected to roll out a new health care plan. plus u.s. stocks set to open lower and we're fwoe tog kick off jobs week. we'll get ready for that employment report. it's monday march 6th, 2016.
"squawk box" begins now. live from new york where business never sleeps. this is squawk box. ♪ >> good morning everybody and welcome to "squawk box". we are live from the nasdaq market site at times square. at least it's going to be spring. can't believe we're going to lose an hour. >> seemed early, didn't it? >> yeah, but that's because it's cold out too. >> it was 70 two weeks ago and i like 70 better. >> me too. >> i don't even worry about why it happened. >> i don't care if it rains and it's 70. i'm betty quick. joining us for the hour right