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tv   Worldwide Exchange  CNBC  March 17, 2017 5:00am-6:01am EDT

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good morning. the green is gone. the st. st.patrick's day futures lower as we set you up for the final trading day of the week. >> banks on the promise of less red tape. how you can money in the new trump trade. and look at goose. the newest stock to hit the street soaring on its public debut yesterday. it's friday, march 17, 2017, "worldwide exchange" begins right now.
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♪ good morning. happy friday. welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> i'm wilfred frost. good morning to you from me as well. a great tune to bring us in. >> let's look at the global markets this morning after stocks lost early gains in yesterday's session. the dow down about 15 points. it was in a tight range all day. the post fed celebration wore off. healthcare was a laggard, technology and financials did end higher for the day. as for futures. s&p lower by a full point. dow down 1. nasdaq barely positive. as for the ten-year treasury
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note yield, 2.53. we really have seen yields back off lower. >> we have. but this is a decent move up today. we were down immediately 2.5%, but ending the week picking up a bit. the story of the week as a whole, a flattening of the yield curve. the ten-year and the 30-year moving down, the two-year moving up. 2.53 for the ten-year. for the whole, stocks are higher given the fed-inspired mini rally in the middle of the week. up a half percent for the week. >> dollar weaker for the week, and gold up 2%. >> let's look at equities around the world. asia finishing on a mixed note. hong kong having a decent couple of days on the back of that weaker curreweak weaker dollar. it has benefited from the move
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since the fed meeting. japan and shanghai ending lower. european stocks up about 1% for the week as a whole. pretty much flat at the moment. those were green as i left my desk, they're now red. we just slipped a bit over the last 15 minutes. >> as for the broader market picture, let's show you what's happening with oil. oil prices have been in rebound mode. wti, 48.76, brent is weaker this morning. nat gas popping a half percent. wanted to share with you notable comments from overnight and the saudi oil minister sitting down with cnbc calling for other opec ministers and members to get on board with production cuts. >> we also seek equal sharing by others of what they signed up to. we had frank and friendly discussions in houston during
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the conference with some of the countries represented. everybody is happy about this agreement. it's a learning process for some countries. we want them to accelerate that learning and get on board fully. >> i thought it was interesting this interview. i listened to a longer version on cnbc europe this morning. he was saying there will be bumps in the road, but a lot nations are not used to sticking to these cuts, so this is a learning process and things are going remarkably well, he seemed to say, from the opec cut thus far. it was a vote of confidence for the medium-terminate chore, as omedium-term nature. >> two things, will they extend that cut, and what is the u.s. supply picture looking like? this week, we got the draw down
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intories in the api and the government numbers. u.s. producers are ramping back up again. the question on the higher prices, are they needing the market? do you worry about supply again? >> the other thing i would add to this as well, the dollar. this week the dollar has been lower. oil prices have been higher. that financial transaction, financial traders influence on the oil price having an impact. the weekly bounce back on oil, up about a half percent for the week as a whole. >> let's show you the currency board now. the dollar weaker on the week post-fed. the dollar weaker again this morning versus the euro. not much to speak of, but near the top end of the range at 1.0772. unchanged against the yen, 113.28. and unchanged against the pound. >> it was buy the rumor sell the fact thing with the fed rate
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hike. we had tldollar strength alread we had the dollar softening on the back of tchlit. and on the pound side of it, the pound rallied off eight-week lows it saw earlier in the week so both have seen a move against where the news has been, buy the rumor, sell the fact. the euro has strengthened against the dollar for fundamental reasons because the results of the dutch election came in less extreme as people expected. >> i think with central banks out of the way, the focus will turn to politics it has been for a long time. status of the trump agenda, trying to figure out what the back and forth between republicans on healthcare might mean for tax reform which is something investors are hoping for and how much of this deregulation theme that we will talk about on cnbc has been priced in to sectors. president trump has said he will cut regulations, he said as much
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as 80%. we'll dive through what that means for stocks and sectors. there's also trade and bilateral ties. today at the white house president trump holding his first face-to-face meeting with german chancellor angela merkel. the two will hold a bilateral news conference this afternoon. there's plenty on the agenda trade, the future of europe, the german chancellor had a strong relationship with president obama, the relationship with the united states cannot be understated when it comes to security and economics. and these two leaders cannot be more dissimilar. >> absolutely right. there's a difference to this meeting compared to some past meetings, whether it was the japanese premiere or the british premiere. germany doesn't need the u.s. as much as those two countries do. it's got its own strong allies domestically, and there are more
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fundamental disagreements with what's been said than the british and japanese had, particularly on nato and the eu. and angela merkel has her own election coming up, she needs to strike a tone that is strong for germany. >> i think germany needs the u.s. more than anyone. >> i think this could be more of a fractious meeting than the two before, where theresa may and shinzo abe were willing to come and along with what president wanted. they got some push in their domestic press for it, but angela merkel has an election coming up. >> i would not underestimate her as a world leader to deal with tough, different personalities. she's dealt with putin, some of the european populist wave, issues in her own country. they need the u.s. for defense. as a political article last night said they basically
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outsourced their defense to the united states. there's a shared value system there. and there's trade. germany is an export giant, and the u.s. is the number one buyer of german products. >> i think she's a master, she won't air the laundry in the news conference, but because she's dealt with those people, because she's been around for a decade, she's used to this, she won't have this private meeting and say, yes, donald, i agree to everything you want. we'll see. >> we will watch the body language. >> will we get a hug, a handshake? it will be fascinating to watch angela merkel's meeting, which was delayed earlier in the week. today there are two notable economic reports, february industrial production out at 9:15, and the preliminary read on march consumer sentiment at 10:00 a.m. look for results from tiffany before the opening bell. investors warming up to the newest stock to hit the street. big ipo yesterday at the nyse.
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landon dowde edy has more on ho canada goose faired on its first public day. >> canada goose going public yesterday, soaring opening at $18 per share on the new york stock exchange. the stock closing with an increase of 25%. that performance making it the second best ipo of the year. goose priced its initial public offering of 20 million shares raising more than 2$255 million. co danny reese says he is excited about what's in store. >> our opportunity is in everything. we feel we have tremendous geographical expansion opportunities. i met with a lot of people while on the road, a lot of investors agree we can grow in the united states for sure. internationally, europe, asia and new products. >> what does the successful
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debut tell us about the health of initial public offerings? 21 ipos were priced this year raising 9$9.1 billion. of the 21 ipos to price this year, the only other firm that did better on the first day of trading was snap with a 44% gain. back over to you. >> landon, 1,005% from the money raised so far? huge. >> timing is everything. the winter storm was the perfect back drop, warm coats on investors minds. >> those investors that got in on that, quacking. >> yes. >> clucking. >> i would say there was peta that was not happy, they use coyote in their hoods. other ipo news, despite snap's record breaking debut, it's hit a cold streak. shares falling below $20 yesterday for the first time since the stock began trading.
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the decline comes after another analyst put a sell rating on the parent of snapchat. six firms now recommend selling shares, three have a neutral rating, none have a buy. after two days of gains, the stock has pulled back on concerns of valuation and lack of profitability. just down 1% this morning in the premarket. still to come, as we have been mentioning, deregulation nation, what's behind the post election pop for financials? and another check on futures. sort of in search of direction, nasdaq goes positive by a point. dow negative by 2 1/2. "worldwide exchange" will be right back.
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and add phone and tv for only $34.90 more a month. call today. comcast business. built for business. welcome back. all day long on cnbc we're tackling one part of the trump trade having a huge impact on your money. we're calling it deregulation nation. the big market moves happening on the promise of less red tape. we kick off the seefr ries with look at the bank stocks. they have been on a tear since election day. let's get to kayla tausche in washington with more on whether those deregulation hopes are baked in. >> banks have been early ben factors of the deregulation push because so much of dodd-frank, congress' and regulators response to the financial crisis and the single biggest
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regulation this industry finished wasn't finished when trump took office. since 2010 they spent $42 billion and 92 million manhours to comply with it about a third of dodd-frank rules are still not finalized, so president trump's regulatory freeze means banks are already seeing relief from future compliance. that's already baked in now. the industry is ramping up the fight to pick apart the rules in dodd-frank that have been implemented. the first two here, the volcker rule, which limits trading activities, and the durbin amendment carries huge costs for the banks and would bring huge windfalls if reversed. the second two, stress testing and holding high levels of capital, those could be relaxed without as big a fight. the reason why, those two issues are issues facing banks having below 5$500 billion in assets.
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the number of banks in this country that fall below that threshold are in the thousands. they drive main street business lending. analysts say banks between 10 billion and $50 billion in as -- assets will see the biggest improvement. president trump said he would work to improve lending and regulations. big banks have the lobbying, but the small and mid-sized banks seem poised to see the biggest benefits. and today news that the fred approved a merger between peoples united fi ed financial suffolk funneinancial which und the previous regime would have seen a highly scrutinized view of that merger. >> i saw that story and the speed of which that has been approved is something that the
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smaller banks will welcome moving forward. as well as the possible change of things like dodd-frank or the durbin amendment, as you already mentioned which will need congressional approval. something else the banks are focused on is how the tone of capital and liquidity rules could change with a change of people at the top of these regulators. with that in mind, i'm wondering what you're hearing in washington for how close we are for the appointment of the fed vice chair of regulation, which is something all of the big banks are super focused on. we saw some appointments this week on the commodity side of regulators. are we close? >> have been names that have been discussed, but you also need a lead he for ter for the . there are many positions to be filled. the s.e.c. chair has not had a hearing as of yet. there are several figureheads who need to be put in place
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before the financial sector would feel at ease with where the administration is headed with this. there is one bill in particular that has banks fired up. that would potentially lower the limit for systemically important financial institutions, those are the banks too big to fail and need to have more capital on hand. if they bring that level down, there could be a huge amount of relief for the banks at that highest level. >> thank you. >> kayla tausche kicking off our series on deregulation nation. i wonder is all the deregulation good for stock prices, investors? bank lending? at what point do we cross the threshold where is it good for consumers? there was a fim cnancial crisis 8 1/2 years ago because there were not strict standards and rules in place. >> and the fed data has shown that lending has slowed down a little bit in terms of the rate of growth. and people are sort of pausing to say, gosh, do we really need
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to see this significant tax reform and deregulation for it to pick up? is it purely predicated on a change in the rules or is there fundamental demand and optimism in the economy underlying? that's something that people in the sector are focussed on. sticking with financials, and the wells fargo ongoing story, news that we broke yesterday, it's likely that carrie tolstedt who left wells fargo will be retroactively terminated for cause as part of the board's ongoing review. she retired last year and gave up $19 million of unvested options. based on conversations with sources and revelations in the proxy statement out wednesday night, when she was allowed to retire, it was on the agreement that all of her remaining options, whether vested or available to exercise already or not could be clawed back at a later date if the board deemed fit. the value of those options, 5 6 $53.6 million. it's likely the full amount will
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be taken back. we reached out to wells fargo, the firm was unable to comment. legal representation for tolsted it was not immediately available. i'll sit down exclusively with tim sloan of wells fargo at 8:00 a.m. today. a lot on the agenda, that bank lending stuff we talked about with kayla and the sales practice investigation. >> on the carrie tolstedt news what took so long? there was so much outrage for her months ago. >> there was, but the board had to conduct their full review. she was allowed to retire last july, before this all broke publicly. when she retired then, it was thought she would likely be deemed culpable. they allowed her retirement, but subject to the fact that there
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would be certain provisions. you might sacred -- say credit to the company, they said let's wait, do our investigation. we have not had this confirmed yesterday. the board review due out in mid-april. >> look forward to your interview today. when we come back, caterpillar making a big hire to fix accounting issues. the details straight ahead. and nintendo is making a bet on switching things up. you're watching "worldwide exchange" on cnbc.
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better quarterly revenue and profit, this comes as its package of software tools continues to rise. here is adobe's ceo on "closing bell" yesterday. >> as it relates to creative cloud specifically, we saw strength across the board. we talked about how international represents a good opportunity. small and medium business, that did well as well in europe. and we continue to do a really good job with focusing on delivering value for our existing customers. >> the share price of adobe is up 4%. value act capital management is upping its stake in valeant pharmaceuticals. they bought 3 million shares,
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increasing its stake to 5.2%. it gets a bit of bounce but nothing on the declines both this week and over the last few months. nintendo doubling its planned production of the switch console in the year ending march 2018. suggesting the switch is on a similar track in its first year as the popular wii system a decade ago. shares closing up in japan 1.7%. president trump nominating a boeing executive to serve as deputy defense secretary. the white house confirming that patrick shanahan, boeing's svp of supply operations will succeed as robert work who agreed to stay on until his replacement was nominated. cat eerpillar hiring an ex-u.s. attorney general for help over the government probe related to the profits earned by the company's swiss profits
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unit. the japanese government not considering steps to support toshiba. toshiba missed q3 earnings for a second time. still ahead on "worldwide exchange," we're setting you up for the trading day ahead and the story that's got everybody talking. some clown trolled president trump on twitter and it made us all grimace. the full details when "worldwide exchange" returns. this is where i trade andrs. manage my portfolio.
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good morning. futures mixed as traders gear up for the final prayeding d itrade week. >> and merkel heads to the white house. what you can expect from the meeting. and the super sized twitter smackdown that got us all talking. it's friday, march 17, 2017, happy st. patrick's day, you're watching "worldwide exchange" on cnbc. ♪ good morning. happy friday. welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> i'm wilfred frost, good morning to you from me as well. let's get straight to the global market action this st. patrick's day morning. futures were slightly red. we are now mixed as you can see. es sesentially still flat. this coming off the back of slight declines yesterday, about
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0.1%. for the week as a whole, we are higher. the dow is slightly higher. the s&p and nasdaq up by a half percent for the week. 9 out of 11 sectors positive for the week. real estate is top. en industrials bottom. there we are, green across the screen. st. patrick's day color for the futures at the implied open. let's look around the rest of the world. asian trade mixed. hong kong has been up nicely the last couple of days. that's largely -- we jumped to europe. here is asia. hong kong is up just 0.1%. but up nicely yesterday. the weaker dollar with the pegged hong kong currency has helped the hong kong currency. european trade is up about 1% of gains for germany, uk and france eni ending on a flat note. as for the broader market
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picture, oil prices are little changed. they've been a bit higher this week. we did get that draw down in crude inventories midweek which helped support the price. wti crude climbs back towards $49 a barrel. brent, 51.84. nat gas also getting a bit of a pop to the tune of a third of a percent this morning. ten-year treasury note yields, yields higher this morning. there's some selling of treasuries after a week where the fed dictated the direction here, and there was buying after the meeting of bon bonds and st. we are 2.53 right now. weak dollar week. that's the theme here in the currency markets after the federal reserve. the euro continues to be strong, 1.0775. the dollar weaker against the yen, 113.28. also weaker against the pound at 1.2381. gold had a good week off the
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back of that dollar weakness, up about 2% on the week. higher for the second day in a row. >> on that currency board, clearly we didn't get as much tightening on the dollar side forecasted by the fed as some expected. also the news on some of the others, euro, mario draghi didn't say easing would end, but he brought expectations of when easing on the euro side could end. and yesterday the bank of england meeting, a clear line in the statement suggesting inflation is picking up and we may lean towards the hike. the vote was 8-1, so it wasn't close, but one person voting for the hike. a british hike would be for the wrong reasons, it's because the currency has fallen and is creating inflation that weak. expect taations of where it's
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heading has softened. >> two themes i would add globally, which is dictating market direction. number one, we had a dutch election where there were fear mongering going into it about the populist geert wilders getting a lot of vote. he didn't. it went the other way. he was anti-euro and anti-immigration. so euro dodged a bullet there in terms of facing the unknown. euro got a boost from the common currency. and the other factor is the u.s. fiscal policy monetary authorities around the world, andclude the ecb and the boe are in a different mood. they're not in their crisis era super extraordinary easy policy. they're all looking for a way out. with that has come some resumption of leadership from fiscal authorities, especially in the united states. if president trump delivers his promises on tax reform and deregulation, our huge theme today, that takes the mantle for
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this bull market to continue to go. the fed is in the background. >> absolutely. political conversations also front and center on the international stage and a big meeting today at the white house. president trump is holding his first face-to-face meeting with german chancellor angela merkel. a lot on the agenda, the economy, trade, russia and the future of nato. this is one we discussed at length already. it will be fascinating to watch. of all the leaders that have come so far, it's where they have significant disagreements, public disagreements. the difference i was saying chancellor merkel has this leak shun coming up, she won't cater to president trump as easily as the british prime minister or the japanese prime minister did when they came because they're sitting comfortable. they're able to play the long game, thinking whatever happens i have a four-year administration. >> here's the question, he has
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shown a willingness to reverse course and tone down rhetoric when he has these high profile diplomatic meetings. he went back on the one china policy and are now talking about hosting president xi at mar-a-lago . he has not done harbor things he has threatened to do. prime minister abe, despite pressure against japanese automakers and trade, he made nice with him and talked about building an alliance. he will do the same thing with merkel? the two key issues there, russia, nato and a strong cohesive europe. he campaigned for britain to vote out of the euro. >> absoluteliment. that w absolutely. >> when prime minister may came, he made a clear commitment he was happy to pick up the pieces and made a free trade deal for britain straight after the exit from the eu. it's tantamountly different to what germany wants.
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that's why i think there could be more friction. >> we also have a big trade deficit, and president trump does not like that. >> we'll see what happens with that meeting coming up. also watch the initial hug or greeting or handshake. something that is always quite amusing on twitter. today's agenda, two notable economic reports. february inindustrial production is out at 9:15 followed by the preliminary read on march consumer sentiment at 10:00 a.m. as for earnings, look for results from tiffany before the bell. >> that's a big one. landon dowdy has three things to watch when tiffany reports. the street is looking for tiffany to report earnings of 1.38 a share on revenue of 1$1. billion. beyond those numbers, here are three things to watch. first, tourism. there's an increase in tourism receipts and those trends remain positive. this is the second consecutive quarter of growth.
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second, fashion jewelry, recent results show efforts to revive fashion jewelry is working and the category is growing. and the third thing to watch, pricing power and brand are expected to strengthen. tiffany has consistently grown its share of the global luxury jewelry market. with lady gaga as the new face of its product line, this keeps the brand fresh and timeless. stocks of tiffany up about 13% the last few months. >> landon, thank you. toronto's canada goose going public yesterday soaring in its debut opening at $18 a share on the new york stock exchange. priced below $13. the stock closing its first day trade with an increase of 25%. that performance making it the second best ipo of the year. goose priced the initial public offering of 20 million shares raising more than 255 million. number one success ipo goes to snapchat, which was just two
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weeks before. >> though the share price of snap has declined. >> fallen and went below 20, a key marker. a little quirky british story with a u.s. link. former barclays ceo bob diamond is making a bid for panmure gordon. diamond teaming up with q-invest for the purchase. shares up more than 75% on the news. this getting interest in the uk. he was a high-profile u.s. wall street ceo that took over barclays, lost his job in the height of this rate fixing scandal in 2012, making a step into what is a small brokerage firm, but a financial firm nonetheless in the uk. disney's remake of "beauty and the beast" hitting theaters today. ticket presales are the biggest for any family film in fandango's history. topping the 2016 hit "finding
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dory." bueauty and the beast could ear up to 2$245 million this weeken. i don't know. this is a hard one to top one of disney's best ever movies. >> it looks so good. i agree. we got to have a preview from mike santoli, who took his child to the premiere of it. he said it was very, very good. he said it was one more all ages. he made a very good point as well, we had quite a long chat about it off camera earlier in the week, it's the perfect time for a remake. some 20 years after the original so adults can remember it, new children can go and enjoy it for the first time. it's ideal. >> that's a santoli analysis. >> it is. good analysis. he enjoyed it. >> made the cover of the weekend arts section. the beast is scary looking. >> the beast is a former "downton abbey" star, of course. that was part of the appeal. all these celebrities.
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>> mcdonald's saying one of its twitter feeds was compromised after the corporate account sent out a message insulting president trump. the account tweeting you are actually a disgusting excuse of a president and we would love to have barack obama back. also you have tiny hands it was retweeted hundreds of times before it was deleted. and mcdonald's saying based on our investigation we have determined that our twitter account was hacked by an external source. >> taylor swift filing trademarks for swifties. this sparking reports that swift may be launching her own streaming service. those reports have been debunked by bill bore. she may be establishing an educational program. one trademark is linked to classes, coaching and self-guided online courses among
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other things. >> she's committed to the sirname swift, no matter what. >> that's your take-away? >> yes. >> most people are wondering what project -- >> i'm thinking in advance, i need to trademark frosties for her, if things progress. >> for her, not for you. >> yeah. when we come back, the must-read stories and a programming note. don't miss wilfred's sit down with wells fargo ceo tim sloan at 8:00 a.m.
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welcome back to "worldwide exchange." time for our must-reads, the stories catching our attention this morning. my pick is in the "wall street journal" titled europe is voting wrong. this comes off the back of the news that the populist leader, geert wilders did not do as well as expected in the dutch election. the danger europe faces this year is not that of a string of national elections answer the question doigging the continent but that elections prove incapable of then resolving those problems. the netherlands headed for another uncomfortable coalition fell into a trap this week instead of skirting one. that article missing a few words, but the point of the
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article is, yes, geert wilders did not win, but 28 parties entered the election, 13 won a seat, requiring less than a percent to be in the parliament. >> there's no cohesion of ideas. >> so you will still have problems, people who feel disillusioned on economic fronts, because you're stuck on the ground, voices from all sides, and you won't get improvements on the immigration front. >> why do they have so many parties? >> it's because of the past and how things have devolved in their democracies, and there's strong reasons for having that, for not having an autocratic leadership. but is this really the solution europe needs, or four years down the line will we have the same economic problems and things.
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>> france will be a big look at that. >> the hope is that despite the coalition in the nether lands that they wake up and realize mr. wilders got a big chunk of the vote. >> i think prime minister may is doing that, even though she wasn't elected. she's trying to -- >> long debate on that front. my article is in politico. angela merkel meeting donald trump at the white house. politico writing about the free world meeting donald trump. the german chancellor is the only leader in europe who has a plausible claim to moral leadership. merkel was always going to be listened to carefully on morality and given her longevity always respected, but it was her
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decision to accept 1 million refugees which established her moral credentials, especially since no other mitt cal leader has taken such a political risk. president trump has gone after her for that. not a popular position in the united states. >> it's hurt her domestically. we look forward to that meeting. i wonder if president trump knows what her nickname is back in germany. mooty, which means mother. she is the mother of europe and the mother of germany. maybe there's a german nickname of daddy she can give to donald trump. >> she doesn't seem like one for funny names. >> she actually speaks perfect english but never does anything publicly -- >> president trump was mad in 2015 when she got times person of the year, he didn't. then he finally got it. >> he got 016.
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>> they can both hold up their covers. >> approaching the top of the hour, getting ready for "squawk box." joe kernen joining us. >> it just occurred to you that maybe europe has been voting wrong for a while? >> yes, joe. >> really? >> and also despite the issues of the long-term proportional systems, if there are, you don't think you can say people are voting wrong. people can vote however they like. >> you euros would never say americans voted wrong with trump. you would never hear them judging us. sa sara? >> yes. >> you go. i have to ask you -- how? why mid tennessee? why did you -- did you know you picked mid tennessee state over minnesota? >> no but i know i picked northwestern. >> you only have one miss. there were two -- right? >> right. i'm very good at march madness. >> did you pick these? did you have help? >> i outsourced them, joe. >> what? >> i outsourced it.
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it's my big secret, not such a secret. >> it works. sara has done well. >> so has sorkin. he lost two. you lost one. you had mid tennessee. becky messed up. >> i had my secret weapon. >> you're not in the standings. >> yes, i am. >> not in mine. >> i'm in mine. >> how am i doing? am i doing well? am i on top. >> you don't know? >> yeah, you're doing well. did you have xavier? >> of course. >> you din judn't just push the button. >> there are some loyalties, xavier, northwestern. >> i didn't do mine. >> you didn't do yours. wilf tried to watch a game, oh, my god, they're using their hands! >> rugby this weekend. massive game in dublin. about to become the greatest
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team of all time. you didn't see them use their hands -- >> we use the hands in rugby. it's not just that. you like that as the difference, but it's not the fundamental reason. >> you heard my idea. too much scoring on soccer, you should only be able to use one foot. >> it's not the hands, rugby, cricket. >> i had to ask. >> joe, we have to go, i'm afraid. >> you have to go? you have more important stuff. >> we do i'm afraid. we love listening to your preview, we also have coming up phil orlando. we have to go to the break. >> oh! >> and your interview on "squawk box" with tim sloan. we look forward to "squawk box" in eight minutes time. when we come back, we'll help preview the market day ahead. global economy, u.s. fiscal policy versus monetary policy, which is winning out on this fed week? stay tuned, you're watching "worldwide exchange." at's happe? we're facing 20 billion security events every day.
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welcome back. futures are mixed, ending a week that's been positive. the dow up slightly. s&p and nasdaq up a half percent. joining us now is phil orlando from federated investors. good to have you with us. >> thank you. >> this rate hike earlier in the week, it's a good thing for markets generally, more because of the economic outlook or because we won't have as many hikes as people thought? >> going in we were concerned that the whispers were that janet yellen would hike by 50 basis points. >> really? people thought that? >> those were the whispers. or this would be the first of four hikes over the course of the year. we got 25, she telegraphed three. so it's, wow, it's not that bad. and gave constructive idea in terms of the projected growth. it was a terrific monetary policy day. now we shift back to fiscal what do troop numponomics and congret
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done over the balance of the year. we are focusing on one pillar of trumponomics, deregulation. deregulation nation we're calling it how much of that is baked into the stock market, the fact that trump wants to roll back red tape by as much as 80% in industries. >> we think deregulation is good. what we saw over the last eight years, the pace of deregulation was double during the obama administration than it was during the bush administration. what trump will attempt to -- >> you mean the pace of regulation. >> terms of new federal regulations over the past eight years. what trump will attempt to do is rationalize those and tidial th back. i think business and the markets are excited about the fact that we'll start to reduce the pace of regulation and maybe scale back some things that have been slowing economic growth. >> you said we had a terrific monetary policy day. >> yes. >> when does the terrific deregulation day actually arrive? >> the reality is we don't know. trump doesn't have a full cabinet in yet. so in terms of getting
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legislation drafted that congress is going to review, our best case is that congress looks at this and passes it before the summer recess in august. that's the best case scenario. that could easily drift into the back end of the year. the market up 15% in you to months hfour moneys has some action taken by congress. >> which group moves the most? >> we don't know. financial services will be at the top of the list, but a number of things could benefit. >> i would think a lot of groups benefit because you don't need congress as much for a complicated tax reform, you can go department by department. we have to leave it there. phil, thank you. >> have a great weekend. >> just 20 seconds to go. what are you watching snfrnlt i'll ? from i'll be watching the sector
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breakdowns. deregulation of banks, we talked with kayla earlier. >> i'll be shooting off to interview tim sloan of wells fargo. the first part of that at 8:00 a.m. ways wins.
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top of the morning to you. president trump, and in this case german chancellor angela merkel getting ready to meet, trade, immigration policy, the future of nato a few of the items on the top of the agenda. deregulation nation. the white house and congress pushing hard to cut the red tape and find out which rules are on the chopping block. we'll call it green tape today, i think. a team making its first ever debut at the big dance gets a big win. it's friday march 17, 2017.
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happy st. patrick's day. "squawk box" begins right now. ♪ >> live from new york where business never sleeps, this is "squawk box." good morning, everybody. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's look at u.s. equity futures and see if they're in the green for st. patrick's day. some are cooperating. s&p 500 up by a half percent or a half a point. the dow down by half a point. the nasdaq up 3 1/2. this after a mixed market yesterday. look at what happened overnight in asia. you'll see the nikkei was down by a third of a percentage point. some slight gains for the hang seng. shanghai composite down by

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