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tv   Worldwide Exchange  CNBC  May 11, 2017 5:00am-6:01am EDT

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snap, crackle, drop. investors wiping out $6 billion after a disappointing earnings report from snap. oil staging a comeback on signs that the u.s. glut is shrinking. and the comey fallout, what he said to his colleagues about his departure. it's thursday, may 11, 2017. "worldwide exchange" begins right now. good morning. welcome to "worldwide exchange"
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on cnbc. i'm sara eisen. >> i'm wilfred frost. good morning to you from me as well. >> good thing you came back for throwback thursday. >> main reason i'm here what is it today? throwing it back to songs from the best movie soundtrack. a bit of the bee gees. >> i thought you would be holding out for something different. u.s. equity futures after a m mini move yesterday are soft this morning. dow futures down 19. dow underperformed yesterday thanks to disney shares and earnings there. s&p down 3, nasdaq down 8. ten-year treasury note yield, yields pulled back yet, 2.40, bang-on 2.40 for the ten-year
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yield. maybe a bit of buying. we'll see what the mood is like. >> the yield ticked up over the course of the week. started around 2.33. >> new zealand's central bank holding interest rates steady. that was slightly unexpected to see the kiwi fall a bit. markets across asia, slight gains. a third of a percent for japan and shanghai. hong kong up a half percent. we have seen softness in iron ore and coal prices come through which hurt australian trade. it hurt the shanghai comp earlier. but that recovered by the close. european trade mixed to down today. a relatively positive week. half a percent higher for the week coming into today. the ftse just below flat but slight gains in germany and france. we mentioned oil popped more than 3% yesterday after that crude inventory data out of the u.s. bigger draw down than expected. also goldman sachs cut its dollar forecast by more than
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half. the firm cites overvaluation and growth outside the u.s. picking up. goldman sees the scope for monetary policy divergence smaller this year than the past. euro/dollar, 1.0874. the spound wepound is weaker th morning. there's a bank of england meeting that we'll talk about. gold prices got a bit of a bid yesterday for the first time in a while. they're up again about 0.2%. let's add bitcoin to the mix. it crossed $1800 for the first time adding 3 billion in market cap in four days. among the reasons for the rally, legalization in japan, also minneapolis fed president neel kashkari talked up the potential of the technology behind the crypt to crypto currency.
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best performing asset of 2017 so far. >> another thing to say on markets, for the week as a whole, the nasdaq up a half percent. dow down a fraction. despite the big stories that develop out of washington, this market is focused on earnings, that's highlighted with snap, with disney, also earnings are in focus, not politics, shrugging off other thoughts. >> pushing off the prospects of tax reform and deregulation. there's only 30 legislative days left before the august recess on the calendar, how much band width will there be for congress. it doesn't appear investors are nervous about it. there are two theories. mike santoli was saying it's not priced in yet. it's a bonus sweetener if we get it for the markets.
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the other thing is the markets still believe. they don't believe this comey thing will derail the legislative agenda. they're still banking on president trump and his pro growth agenda to get through. >> i agree. i think we had that initial pull back on the hopes that we wouldn't get all the positive policy developments. i think there is upside if that arrives. if you get through to the end of this year and still nothing has happened, you might have a repricing. then people will think, gosh sh there won there won't be anything at all. as blankfein was saying the other day, we're not sure how much of this we will get. let's move to snap. shares of snap inc plunging after the company released its first report since going public. snap missing on the top and bottom lines. the company struggling to keep
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up user growth, validating concerns about taking on instagram and its future stories program. >> people will copy you if you have great stuff. when google came along, everybody felt they need a search strategy. when facebook came along, everybody felt they needed a social strategy. with snap, we believe everybody will develop a camera strategy. just because yahoo! has a search box, it doesn't mean they're google. joining us is paul meeks to discuss snap. thank you very much for joining us. huge, huge move in the share price downwards. the miss in terms of whether it's daily average users or revenues, it wasn't that big, was it? >> no, i wasn't surprised, but when you see a company that comes to the market with this
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much euphoria, the expectations are high. i was on your air actually predicting such a result before the ipo. if you look at the figures, they are nasty. on a gaap basis, which most people don't look at, they lost over $2 billion. probably the better number to look at is free cash flow. because that's the continued burn. burn it was to the tune of 200 million. i was probably most concerned with, and i think people in the trading session will be most concerned with the fact that the daily active users only grew 5% s we sequentially. so you have a copycat feature in facebook that was introduced in august as a copycat to this product. they're larger at 200 million
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daily active users and are growing faster off a bigger base. another thing that concerned me is the average revenue per user. it's expected seasonally to decrease between december and march, but for snap it decreased 14%, which is a more draconian drop than you would expect seasonally. >> right. >> all in i think what will happen is the investment bankers who made $85 million in fees on this ipo, they'll support it. >> paul, beyond the metrics there are a few other things that we should point to. we played a clip from the conference call, evan spiegel
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saying just because yahoo! has a search box doesn't mean they're google. so snap not really giving a direction. he didn't do cnbc, didn't show up on the first day of the ipo. is there a feeling they're struggling to be a public company? >> i think so. i used to run a company during the internet bubble, i have not seen a company trying to go public like that sense those in days. companies with severely negative ebita. yeah, he comes across arrogant. it's a company because they're head quartered in southern california instead of the more familiar silicon valley, a lot of people don't know. i think there's a corporate governance issue here, too. >> nobody has voting shares except for them. >> it will make a run today, as we can see in premarket trading
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to the ipo price. it will be interesting to see if it sticks there. the investment bankers will defend the ipo price. let's see if it sticks. obviously i think this is problematic. if you really want to invest in digital advertising, hold your nose and buy more facebook and google. >> paul, thank you very much for joining us. >> all right. >> when is the last time you posted on snap? >> a very long time. i switched to instagram story. i check it sometimes. my friends send me snap all day long. i don't post. that's the problem. facebook competition, and what paul said, hold your nose and buy more facebook and google. that's been the story with the bigger ones, dominant players that consume advertising dollars also consuming investor dollars. >> they did add 3 million users
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since the end of december. >> much slower growth. >> but it's where the valuation is in terms tof s of it is sti growing. verizon reportedly winning a bidding war to acquire straight path for more than $3 billion. the company beating out at&t. the "wall street journal" says the deal could be announced as early as today. straight path uses high frequency radio waves which could give verizon the edge on developing a 5g network. u.s. steel ceo mario longi is stepping down effective immediately. the company's president and chief operating officer will take over. this is a challenging time for the company. last month the firm reported disappointing results that sent the stock lower. up a bit on the news today. >> i wonder if he will stay on president trump's manufacturing council. some other stocks to watch. 21st century fox reporting quarterly revenue below wall
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street expectations. the tv and film company weighed down by weaker box office results. whole foods getting a bump after posting earnings that were in line with forecasts and announcing a dramatic board shake up. the high-end grocer adding a new cfo and five independent directors as it changes more than half of its board. on this one i noted that ron shake, the ceo of panera was added to its board. not clear this was a nod to jana, the activist pursuing and pushing whole foods. the story was they offered a few board seats, jana wanted more. results were mixed. symantec shares getting hit. results for the most haven't quarter were in line with ek pe expectations. shares of elf beauty. the cosmetic company posting a
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15% jump in revenue topping analysts estimates. aig planning to name brian duffero as the nceo. the company is still working out the final details of his contract and are close to a final agreement. an announcement could come today. abercrombie & fitch says it is in deal talks, express and american eagle are among those talking. the bank of england announcement at 7:00 a.m. eastern along with the monthly inflation report. weekly jobless claims and the april producer price index out at 8:30 a.m. eastern. bill dudley is at a conference in mumbai, india, to speak about the benefits and challenges of globalization. more retailers reporting today. kohl's, macy's, nordstrom, tomorrow, jcpenney. we'll have a lot to get through there. that's been a weak area in consumer spending.
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>> the market has been reacting to earnings, so we'll keep an eye on that. counting down to a rate decision from the bank of england. we'll go live to london coming up. as we head out, another check on u.s. futures pointing a bit lower by about 18 points. we're back in a couple minutes. . since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. that's why a cutting edgeworld. university counts on centurylink to keep their global campus connected. and why a pro football team chose us to deliver
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senior white house official says the topic may come up. also out of europe, the markets are weighing in on the bank of interest rate decision scheduled for release in a few hours time. let's bring in brooke masters. thank you for joining us. let's touch on the bank of england decision. we're not expecting any action today? >> absolutely not. everyone expects them to hold rates steady at 0.25%. the question is whether the minutes show there is now a second vote to raise. one of the hard-liners has been voting to raise for a while, now there's a sense there may be a second vote. >> what's been the read on the uk economy. everyone has been surprised by the strength out of brexit and into brexit. has that maintained itself? >> the hard data is looking depressing. the trade deficit spiked to a six-month high. also industrial production is
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disappointing at 0.3% growth. that is following a pattern where the hard data on consumer spending has been depressing. however the surveys, when they talk to purchasing managers and consumer sentiment, those are quite high. there's a big disconnect between hard and soft data. >> the biggest factor driving the pound, is that the election and the hopes of a significantly larger majority for the incumbent government? >> it's hard to tell. the pound is hovering just under 1.30, which is the highest since november. and i think there is a hope if mrs. may gets a proper majority and is less dependent on hard-liners, she could have flexibility and do a soft brexit that allows for transition. >> brooke masters, thanks for joining us. still ahead, uber suffering another setback. a ruling out of europe could deal a major blow to the app's
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welcome back to "worldwide exchange." let's look at the market action. we are pointing lower, but only by 0.1%, or to points on the dow. the big story has been political. it hasn't derailed markets too much. the markets still higher by a half percent. the s&p fractionally higher.
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the dow bodown 0.3%. snap down 22% after disappointing earnings. oil prices which have been soft the last couple of weeks rebounded by 3%, on news that the saudi government is willing to stick to the opec agreement, comments that they will keep production lower. that positivity yesterday carrying through today. wti up 1.3%. 48 bucks for wti. coal and iron ore soft this morning. new this morning, a european court ruling that uber is a transport service and must be licensed. this is a blow to the ridesharing company. while the opinion is not binding, uber faced extreme regulation in the eu. to washington where there's more fallout from president trump's abrupt firing of james comey. nbc's tracie potts is in washington with the very latest. good morning. >> good morning. we're finding out that perhaps it wasn't quite as abrupt as it
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appeared when comey got the word. he is back in washington. we have not seen him. but we are hearing from him. we are also hearing from a senate panel investigating russian ties, possible ties to the trump campaign. they now want more evidence. >> reporter: the senate intelligence committee is using its subpoena power for the first time since 9/11 to demand documents on russia from fired national security adviser mike flynn. >> i don't have any evidence of collusion or crime. but the fbi needs to keep looking and do their job. >> reporter: today the committee hears from the new man in charge of the fbi, deputy director andrew mccade, a late substitute for former director james comey who was fired while investigating trump ties to russia. >> i think that the timing and reasoning insights people to believe that there's something is being covered up. >> reporter: the trump administration defends comey's sudden firing which the white house now says the president had
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been contemplating for a while. >> it was time for a fresh start at the fbi. >> reporter: in a letter to staff, comey says i have long believed that a president can fire an fbi director for any reason or for no reason at all. lawmakers still question the timing. comey asked for more resources for the russia investigation. >> were those investigations getting too close to home for the president? >> this firing has very much the look and feel of an effort to stop or stymy an investigation. >> reporter: but it continues on capitol hill and at the fbi under new leadership. of course the fbi is part of the justice department, they are vehemently denying that comey ever asked for more money or resources for this russia investigation. we've not seen comey. we've seen that letter but we have not seen him since he got back to d.c. but we could soon. a senate panel is asking him to testify next week. >> we don't know if he will do that, do we? >> we don't.
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two top republican senators announced yesterday they will not be voting -- they will vote against president trump's nominee for u.s. trade representative. john mccain and ben sass releasing a letter saying they will oppose robert lighthizer's confirmation. they say he failed to reassure them that he understands the positive economic benefits of nafta and worry he won't negotiate trade deals to benefit u.s. consumers. still the nominee has bipartisan support and is expected to be confirmed. it's important because this is why we were watching the republican rifts post-comey. mcccain, graham, others voting against, will they now start voting against trump nominees and policies? they don't have a lot of votes to spare. they need all the republicans they can get. >> at the moment, the party line
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seems to be holding on the back of the comey issue. aetna announcing it will pull out of the obamacare exchanges. the insurance giant will not offer insurance plans in delaware or nebraska. health and human services secretary tom price says the move is a sign of continued instability in the healthcare sector under the current plan. adidas is getting out of the golf club business. the company announced yesterday it will sell the golf brands taylor made, adams golf and a ashworth. price tag 425 million. adidas will continue to use pro golfers like dustin johnson to sell clothing and shoes. the decision by adidas follows a similar move by nike last year to get rid of golf equipment.
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the sale has been in the works for a while. they were trying to shop it at a much higher price. they got less than 500 million. still to come, two big movers in the premarket, snap shares plunging. >> and medical devicemaker hologic falling in the premarket. the company just reported earnings. we'll talk to the ceo when "worldwide exchange" returns. hi, it's anne from edward jones. i'm glad i caught you. well i'm just leaving the office so for once i've got plenty of time. what's going on? so those financial regulations being talked about? they could affect your accounts, so let's get together and talk, and make sure everything's clear. thanks. yeah. that would be great. we've grown to over $900 billion in assets under care... by being proactive, not reactive. it's how edward jones makes sense of investing.
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. good morning. snap drops. the hottest ipo of the year falling after its first major test as a company. hologic under pressure in the premarket. the company just reported earnings. we'll talk to the ceo. and good news all you wine and cheese lovers out there. a new health study trending today. it's thursday, may 11, 2017, you're watching "worldwide exchange" on cnbc. ♪ good morning. welcome back to "worldwide exchange" on cnbc. i'm sara eisen. >> i'm wilfred frost. it's throwback thursday, this week we're throwing it back to songs from the best movie soundtracks ever. let's check in on the global markets. a bit of pressure on the u.s. equity futures. not big moves. we've gone through a streak where stocks have not moved plus
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or minus 0.2%. dow futures down 18. s&p futures down 2.5. nasdaq down 7. this after the nasdaq and s&p managed to close at new record highs yesterday. overnight action in asia, let's show you what happened. the shanghai comp reversed some earlier declines. finished higher by a third of a percent. that's been a weak spot around the global markets. the hang seng continues to sore, upsoar. as for early action in europe. we're seeing a mixed to positive picture in europe. the dax up 0.10%. oil prices bounced yesterday to the tune of 3%. they're up again today to 1.3%, shy of $48 for wti. this on news that the saudis are planning to stick to that opec agreement. they'll keep their supply under
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certain levels. ten-year treasury note has been rising over the course of this week. we're pretty much back at 2.4% having started the week at the 2.3s. there's the ten-year treasury for you. i've seen yields tick up slightly this week. dollar board, main story has been the euro, which has been on a surge post election results. 1 1.087 is the price this morning. gold prices have had three days of gains, but just slight gains each day. and that's the same once again today. up to 1,221. shares of snap down big after reporting earnings last night. it's the first report since going public. landon dowdy has more. >> good morning. shares of snap sinking in early trading. the firm missing on revenue and
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posting slower than expected user growth in its first quarterly report as a public company. snap added 8 million new daily active users. that's 36% growth year over year compared to the 52% growth on that same metric last year. part of the slowdown stems from facebook mimicking snap's platform with instagram stories. another part of snap's problem is the amount of money it pumped into advertising which worsened its operating loss. >> we made significant progress in automating our advertising business this quarter with more than 20% of snap ad impressions delivered through api. automating ads platform means advertisers get better pricing, the community sees better ads and we can make more money per impression. >> the hefty $2 billion net loss is related to compensation in
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its ipo. snap tank being 22% in premarket trading. >> ugly move for snap. hologic reporting better than expected second quarter results yesterday. the company beating on the top and bottom line and raising the full-year outlook, but the stock is down in the premarket. joining us to discuss we have steven mac millen, ceo of hologic. the stock looked like a decent quarter, solid revenue growth. >> was another very strong quarter. overall it's funny, the stock was first up big in the after markets and then came down a bit. it always bounces around. we had done an acquisition, we acquired sinasure and they had a sloppy quarter. they have a lot of products,
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laser treatments for wrinkles, scar removal, sculpture in the body contouring space. >> this reminds me of allergan, they talked to cramer about body sculpt. he was going crazy about that. growth business. >> they came out with the first one, we came out the most recent one which is off to a tremendous start. we just completed that acquisition. report before we bought it, it has some sale force turnovers. >> where are the other big growth driver, tilting towards women's health? >> we've been largely a women's health company. no company on the planet has probably done more for women's healthcare over the past couple of decades. we have been the world leader in mammography. we developed the 3-d mammography. we also invented for cervical
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cancer screening the pap test. we've had that for over 20 years now. great product. had enormous implication for cervical cancer. that's expanding around the world. so we got this incredible base between breast and cervical cancer screening and now we also have products for fibroid removal, abnormal uterine bleeding and sexually transmitted infections. >> which do you prefer, obamacare or what passed the house of representatives, ahca, otherwise known as trumpcare? >> they're probably not significantly different for us in either way. we like getting rid of the medical device excise tax that's in the new plan. that's been controversial since it went in. we had a lot of bipartisan support there. for us, because we're in the rlly intervention and detection
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game, we win in either case. because we are saving the healthcare system money. when you detect cancers early, that's where you save a lot of money. when you can depict breast cancer very early, stage zero, stage 1 instead of stage 3 and 4. the same with cervical cancer. it's good for the patient, it's good for the healthcare system. >> the insurance companies fully pay for the tests? >> in virtually all of our cases. very much covered. even the 3-d mammography has been picked up with add-on payments by just about all the national providers as well. and cms covers it. they're both covered in either plan. >> just talk for us quickly about the global opportunity. what's the growth rate like for you? >> what we're really excited about, as successful as hologic has been in the united states, we're still oddly -- we have about 80% of the revenue in the u.s. most big healthcare companies are more 50/50. we haven't developed outside the u.s. so we're in the early stages of building that. our international business just
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grew 11.1% in the last quarter. so we're really just -- all that greenfield opportunity ahead of us. not just in emerging markets but major markets in western europe, in japan. it's part of what allows us to grow at above market rates. who is t . >> who is the biggest competitor? >> in mammography we go against ge and siemens, roche, abbott. but if you have superior products we believe smaller companies can still win. we've built into a pretty big company now based on those successes. >> and don't forget body sculpting. >> i don't think you two need it. >> it's artificially building a six pack? >> not artificially. it works well. we can basically put little belts around you. in about 30 minutes, wipe out
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about 20% of fat cells. >> 30 minutes to get a six pack. >> i'll do it if you'll do it. >> i can get there on my own. >> in the old days, it was liposuction, you had to go under -- >> or you eat healthy and do exercise. >> that works as well. >> which is a better route. >> totally is a better route, but human nature prevails. >> steven macmillen of hologic, thank you. nissan's annual profit rose 21% as higher sales in china and europe offset the impact of a strong yen. they expect operating profit to drop this year as they see higher material costs weighing on results. unicredit is leading shares of the italian banks higher after better than expected quarterly results. the bank saw rising revenue and lower loan losses amid the turnaround program under the new ceo. up 5% today.
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unicredit has done well since it got that 13 billion euro rights issue away. credit agricole's first quarter net profit more than tripled helped bay rebound in bo bond trading. it is off a little bit this morning. breaking deal news, verizon reportedly winning a bidding war to acquire straight path for more than $3 billion. the company beating out at&t. the "wall street journal" said the deal could be announced as early as today. straight path uses radio waves which could give verizon a faster path to a 5g network. >> on the agenda today a pair of economic reports. the bank of england's announcement at 7:00 a.m. eastern, along with the inflation report. weekly jobless claims and the april producer price index out
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at 8:30 a.m. eastern. bill dudley is at a conference in mumbai, india, to speak about the benefits and challenges of globalization. as for earnings, more retailers reporting today. kohl's, macy's, nordstrom, wells fargo is holding its investor day today with presentations by tim sloan and other members of the management team they will provide new cost cutting targets. they usually host investor day every other year but holding one for the second year in a row as it works to restore confidence following its accounts scanned the. accountsscandal? >> yes. time for top trending stories. news that donald trump fired fbi director james comey had some white house officials at a loss for words. the "washington post" reported today that the white house was totally unprepared for the fallout. when the reporter reached out for an update, a top white house aide texted two fire work emojis. i love this was a juicy detail
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included in the story. >> the only disappointment was that emoji. >> fireworks? should have been that one. >> why? >> crazy. >> or that. >> yeah. tesla is taking orders for its solo roof tiles. the product is a cornerstone of elon musk's strategy for fossil fuel free lifestyle. they are more expensive than a conventional roof, but it will pay for itself overtime. installation in the u.s. will begin this summer. good news, wine and cheese lovers. this perfect pairing may not be so bad for your health. a new study finding cheese does not actually increase the risk of heart attack or stroke, an important caveat, the study was funded by three dairy organizations. a separate study showed the
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benefits of red wine, showing moderate consumption helps the heart and brain. >> you tie that up with the offering from hologic, you can have a six pack and as much wine and cheese as you like. >> get the sculpting. >> he said wear a band and lose 30 pounds? >> happens in 30 minutes. >> yeah. >> that's ridiculous. also worrying. i don't want to question -- >> what is it doing? >> exactly. >> a bit of red wine, a glass or two a day is good for you. >> healthy. same with chocolate. >> really? >> dark chocolate. >> i don't like that one. when we come back, comey continues to dominate the opinion pages. we have the must-reads. first a check on how things are shaping up in europe. we have some positivity in france, a little bit more in germany. but as you can see, ftse down. hello, my name is watson. i am helping 8 million taxpayers get the largest refund they deserve.
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...to 45 days. breathe happy with new febreze. welcome back to "worldwide exchange." time for must-read stories catching our attention in the papers. it's still all about james comey. why did trump really fire comey? only a special counsel can tell us. the reason i picked it is because it comes from adam schiff. saying we need a special prosecutor. given the president's decision, only this step will give the public any modicum of confidence
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that the investigation will be conducted fatherly, rigorously and independent of political influence and interference. democrats are calling for this but i wonder if this will put pressure on the trigs aump administration and congress to do that. >> i did have a must-read, but did not send it to the team on time. >> slacker. >> it was about, and how it's still building. >> that's surprising. >> the markets are winning to the down side. we're approaching the top of the hour. the team is getting ready for "squawk box." becky quick has a look at what's coming up. >> good morning. we'll be talking about this continuing narrative from the trump administration, talking a
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bit about what's playing out in washington right now. we'll continue to talk about the president's agenda and how that may not be impacted by that. senator john thune will join us to talk about healthcare m we'll dig into some of those issues with him. if you've been watching the markets, it hasn't had an impact on wall street. yesterday both the s&p 500 and nasdaq setting new highs. we'll dig into the markets with guests like peter boockvar, he's our guest host from 6:00 to 7:00. we will talk about some earnings out yesterday, snapchat, big questions about what to think about technology after that. this is probably a snap specific issue, but not what market watchers had been hoping to see after such a heralded ipo, coming out with first quarterly results that were a big disappointment. we'll also talk about ceos and leadership. david novak is a guest host.
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he is ceo of yum brands and stepped down. he will bring down some guests, we'll hear more about china growth prospects. and we'll be joined by the ceo of fireeye to talk about cybersecurity, an ongoing and important issue for america and consumers. all of this coming up in about 10 1/2 minutes time. >> great stuff. looking forward to it. squ . still ahead, we're setting you up for the trading day ahead. we will get insight from chris rupk rupkey. ot about choices. but it can be hard sometimes, 'cause different sides of you struggle with which ones to make. well, what if you kept making good ones?
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managed to close at new record highs. joining us is chris rumky from mufg union bank. we've been talking about the remarkable resilience and the slow grind higher in the u.s. equity market. from your economist advaed van point, is it matching up with fundamentals? >> i think so. i'm more focused on what can go wrong. >> in due time. >> i was always optimistic, but i can't identify anything going wrong. this is the part of the cycle where the unemployment rate is at the lows of, you know, decades. this is kind of the engame. remember how bernanke and yellen were saying we need stronger growth. we need stronger growth to bring down unemployment. now it's down. it's not going to fall further. how do we change the narrative as economists? it's at the best level. so i almost have to change the
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focus to what can go wrong. could we go into recession? which -- >> what's the chance? >> i think the model is broken on that as well. usually the fed overtightens trying to curb inflation. but that's probably not going to happen because inflation gets going from higher crude oil prices. so fracking is so great in the u.s., is crude oil going to march up to 70, 80? doesn't sound like it. >> what around the rest of the world. there were some hurdles to get over. is that an improving picture? >> i think so. for a while it was france, that's fine. let's see what happens in germany. but the german elections, sounds like they don't want to experiment with change over there. the political risks have really died down everywhere. now you have the german finance minister talking about rate hikes coming soon. >> you're channeling the vix
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now. >> the vix -- i never really liked the vix what is volatility -- >> protection for the next 30 days on stocks? >> i don't -- it doesn't feel like stock also fall down 10% soon. when is the last time stocks kaem of came off -- probably in january with the universal slow down in growth. did you see how much they revised up growth? 0.1. it was a rounding error. it wasn't that much. but the tone was much better in washington. >> so you're saying the unemployment rate is so good, so low that you have to contemplate recession? >> it's what will happen next. it could grind down over the next couple years to 3.8. we were at 3.8 in the late '90s.
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we could grind down and do better. there's no obvious risks out there. >> that's what scares people, when people like you say that. >> yeah. i can't identify anything. what about the fed? what are your expectations for the june meeting and beyond. >> we are all led around by the nose on fed funds future odds. they moved up a little after the first french election result saying the fed, go ahead, hike rates on june 14th. so the odds now are 80%. which if you back it out on the contract, you're not making a lot of money. you always say do you want to bet on a fed rate hike in june? you will only get five basis points out of 25 basis points. 20 basis points of the 25 is discounted. it's not a real moneymaker. >> one thing that could go wrong, data doesn't rebound in
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the way people expect from a weak first quarter. >> thanks for reminding me. we all got lulled into thinking payroll jobs were 79,000, now they're back to 11,000. but payroll jobs don't all connect with the real economy. so gdp was 0.7%. real consumer spending was in the dust at 0.3. car sales are 16 million. now you're getting me all warmed up. so we get retail sales friday. we'll see if it bounces back consumer spending. consumers are not really spending despite the good feeling from whatever happened last november. >> chris, thank you very much for joining us. >> thank you. >> krchris rupkerupkey. main thing to watch? >> snap. looks ri s like it's down 20%. big disappointment on the metrics and on the tone as well. >> and the bank of england
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meeting at 7:00 a.m. that's it for "worldwide exchange." "squawk box" is coming up next. if you want to stay on top of your health,
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good morning. oh snap. investors wiping out $6 billion from snap's market value after a disappointing first report. we'll tell you what went wrong. and the comey fallout continues. what the former fbi director said to his colleagues about being fired. and crude prices continuing to rebound getting more than 1% in early trading, building on yesterday's 3% climb. we have a full rundown of the market movers straight ahead. it's thursday, may 11, 2017. "squawk box" begins right now. ♪
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live from new york where business never sleeps, this is "squawk box." >> good morning. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with andrew ross sorkin. we have been watching the u.s. equity futures. at this hour there are modest declines. dow futures indicated down by 24 points after closing down yesterday. for the other major averages, it was another day of new record highs. s&p 500 is indicated down by 5 points. nasdaq off by 10 points. both indices closing at record levels yesterday. overnight in asia. the japanese market, the nikkei was up by 0.3%. you saw gains for both the hang seng and the shanghai composite with the hang seng up by 0.4%. in europe this morning, things barely budged.

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