tv Worldwide Exchange CNBC June 7, 2017 5:00am-6:01am EDT
good morning. sentiment shift? stocks suffer their second straight day of losses as jitters settle in. we'll set you up for today's session straight ahead. the last push. less than 24 hours to go before british voters cast their ballots. if you believe the polls, the outcome is anything but certain. a live report from london coming up. plus, uber takes action. the ride sharing app fires 20 employees following complaints of sexual harassment. it's wednesday, june 7th, 2017, and "worldwide exchange" begins right now. ♪ ♪ good morning and welcome to
"worldwide exchange" on cnbc. i'm sara eisen here with michael santoli. we are worldwide today because will fred frost is in london covering the british election tomorrow. we'll hear more from him, a lot more including great guests in just a moment. first, let's check in on the futures this morning. after a second day of losses for u.s. stocks, nothing severe in terms of the decline, but, still, it was two days ago. >> a little bit of caution building up. >> caution into a triple event risk kind of day. comey, british election, ecb all out tomorrow. futures looking up this morning. up 12 points. s&p futures up 1 1/2. nasdaq up 7.5. rebound morning. treasury note yield, the trade there yields back to november lows. gold to november highs. dollar to november lows. so we're starting to see all of this retracing of the trump trade. 2.15 is the yield on the ten year which is pretty much the
low of the year. there has been a lot of demand for ten year treasury yield -- ten year treasuries keeping yields down hurting groups like financials, boosting groups that are rate sensitive like utilities. looking overseas, asian equity markets were on the mixed side. the sea of japan on the flat line. hang seng just under the fault line. shanghai up 1.2%. people's bank of china again trying to keep the liquidity situation on an even keel draining some overnight. looking over to europe this morning, a little bit of a defensive tone but mixed. you had a disappointment on factory dynamic. the expectation was slightly declined. germany is slightly under performing. notable to see spain is down 1/3 of 1% off of the news that banco
popular is being taken over. now to commodities, industry api data yesterday showed a bigger than expected crude draw. oil prices are lower again for the third day in a row. wti down about .7 of a percent. 47.86. they've been hovering in the $47 range. brent now below $50 a barrel. 49.75. down 3/4 of a percent. oil prices have been lower ever since the announcement that major arab countries including saudi arabia are selfering ties with qatar. the fallout is continuing. so far it's resulted in lower crude oil prices. some might say it's a bit surprising. they have tensions building. that could be -- that could at one point spark some supply disruption kind of concerns. >> absolutely. i think you have to take notice. the crude market's unable to seize on potentially bullish
headlines. >> the u.s. energy department will be releasing official inventory data later today. the -- >> take a look at the currencies this morning. again, it was a little bit of a mixed season. the dollar remains on a defensive a little bit. you see the yen strengthening. it's actually not too far from its april, the strongest levels of april. so that definitely says a little bit of a risk going. >> that's the one tracking treasury yields lower? >> yes. that is that tandem trade right there. you see the pound before the elections is holding steady. take a look at gold. people say it's broken out of a bearish pattern just under 1300. i think the five week average of gold is right over $1300 an ounce. it's returned to some sort of equilibrium. >> still higher. 13% higher for the year. being held by the weaker dollar
mounting geopolitical risk. >> wall street journal making note that all of these markets are up, gold, bitcoin, stocks. >> everything is rallying except for the dollar. breaking news overnight. following this developing story for you. iranian state tv reporting several attackers raided iran's parliament and opened fire at the shrine of ayatollah komen any this morni-- ayatollah kham. there were unconfirmed reports that they had taken hostages inside the parliament building. we'll have updates and headlines as we have them. sticking overseas, one of the most important global stories is of course the british election. willfred frost joins us ahead of tomorrow's big vote to tell us what is at stake. good morning, willfred. >> reporter: good morning, sa h
sar -- -- sara. since then theresa may has lost the lead in dramatic fashion. firstly, she announced an unpopular social care policy. in almost unpopular fashion you turned on it. that put into doubt whether she was, indeed, a strong leader. she was labeled as over controlling. jeremy corbin, the leader, has captured the voters, particularly the young, in a way someone didn't have such far left decisions. the momentum behind jeremy corbin, the lead to theresa may as low as being there at some point. they see it narrowed down to 6 points. it was 9 on monday morning.
what does this mean to markets? we have asked the question. the sum total of their answers is we'd see about 1.5% rise in the pountd if theresa may increases her majority. around a 2% fall if we go to hang pam. some 4 to 5% fall in the pound if jeremy corbyn won. they do not expect a labor victory, thus, financial markets would be highly concerned if it's going to happen. >> brexit is a big issue for the u.k. negotiations are about to begin. you've also experienced three terror attacks in the last three months. are either of these issues what this election is about? >> reporter: well, certainly initially everybody thought this would be purely about brexit and that really hasn't been the case. in terms of the topic of brexit, the crucial thing to note saying
she was willing to leave the customs unit and willing to leave without a deal, therefore, framing it is perhaps the hardest forecast. >> clearly the fall in the pound is predicted to be biggest with a labor victory who perhaps would be softer on brexit. so brexit hasn't really influenced the voters as much as people thought nor is it influencing the currency strategist's forecasts on the way that they'll move. as for the issue of security, it certainly has played out front and center, particularly this week, not so much the first two weeks. particularly this week it dominates all the pages still. it looks as though it is helping theresa may at the margin on that particular market but it is taking attention away from brexit which she'd like to be
talking about. >> i guess what i'm wondering, will fred, are the two candidates very far apart and are they campaigning -- on different ideas when it comes to major consequential interest? >> corbyn says he would stay and theresa may will leave. there's a. discuss on borrowing to have 48 billion. corporate tax, conservatives want to cut to 17% from 20. labor want to increase to 26%. the top rate of income tax to go up to 50% under a labor government. those are the reasons because that threat threatens the
conservative victory. >> glad you're there to explain all of it for us. we'll see you with a lot more guests. willfred, thank you. in corporate news, mike just mentioned this. banco santander has bought banco popular for the symbolic 1 euro. santander plans to raise $8 billion. the shares are haltnd and has saved more. i guess it's a good sign to see that they are actually keeping up and making reforms during this -- >> yes. >> -- sort of quiet window that the market has allowed them. it's also a reminder that there's still a lot of fixing of europe's banking system. >> absolutely. it looks like a pretty good test of the kind of bank resolution process over there. >> true. >> weel satisfy see if it stays
that way. in u.s. corporate news this morning, uber firing 20 employees as three investigate claims of sexual harassment. >> reporter: a company spokesperson saying it's working to improve the claims of harassment, claims of discrimination and bullying. they investigated new cases. they're taking action on 58 days -- cases. eric holder is looking into the culture and practices. an executive summary will be discussed next tuesday at the all hands meeting. back to you. we have arianna huffington who's on the board and who has seen some of these reports on squa
squauk "squawk on the street." willfred is in london. >> reporter: the chairman of brittain, rod very much a pro, the former conservative government minister who led the brexit campaign last year, what does that issue mean to markets going forward. on the topic of michael goff. we'll explain that how and how it's influencing this election. i don't miss much... definitely not the traffic. excuse me, doctor... the genomic data came in. thank you. you can do that kind of analysis? yeah, watson. i can quickly analyze millions of clinical and scientific reports to help you tailor treatment options for the patient's genomic profile. you can do that? even way out here? yes. even way out here.
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welcome back to "worldwide exchange." i'm sara eisen. pinterest raising money. that values the photo sharing app at $12.3 billion. pinterest was last valued at $11 billion after raising more than 360 million back in march 2015. spokesman says the new capital will be used for global expansion and to invest in visual technology. in february pinterest launched a new tool called lend to boost ad revenue. you have artistic daughters. do they like pinterest? >> yes. pinterest is using billboards, old-fashioned billboards to get attention to the service. >> that's sort of the idea. >> exactly. >> the billboards. >> but physical billboards. >> oh, actual billboards. >> on the street. that's the twist. although snap chat did that in
times square. old media/new media. new overnight, apple has gone hollywood. they dropped the new reality competition show called "planet of the apps." contestants can pitch their idea for a chance to win a spot in apple's app store. it's a ten episode series. new episodes will be released every tuesday night on the apple music app. interesting. although i guess even if you win a spot, it doesn't remotely guarantee success for your app. some languish there. at least leveraging the apple franchise. when we come back, elon musk just gave more detail on two highly anticipated tesla models. we'll tell you what he revealed next.
wor"worldwide exchange." i'm joined outside of parliament. this should be an enjoyable conversation. gents, very much good morning to you. roland, this election was meant to be all about brexit but it hasn't been. >> not really. it's a bit of a disappointment that it hasn't been but i think there are three very important things. one is we have to change the tone in terms of our european allies. they're not the enemy, they're our friends. i think the second thing is we have to be very clear that we
need a deal and no deal is not better than a bad deal. and the very third thing is we have to be clear about the consequences of the options that we take and the costs that are attached to them. and this needs to be spelled out very, very clearly. >> michael, in your opinion, does the brexit issue, can it be over turned in any way? and can the shape of it change dramatically depending on who's the leader? >> i don't think it should be over turned. i think it would be undemocratic and i think the british people wouldn't forgive any government but there is legitimate debate about the shape of what that eventual deal should be. i think there are some things that there are some things that theresa may has confirmed that we should be outside the single market and customer's union. there are issues that we might agree or disagree but where there is room for legitimate debate and which still need to be thrashed out. >> reporter: roland, in terms of
who would deliver a harder brexit, it's thought theresa may would. do some of the business policies under a labor government, particularly in light of the brexit that will be coming, threaten london and the u.k. as a business center? >> i mean, the answer to that is yes, but the overriding issue for business is our relationship with europe. nearly half our trade is with the european union. what they're really keen in is the best possible deal. theresa may has taken that off the market. in the event that she wins, which most people think is likely, the next sthing we need a really good agreement on trade and security. security's incredibly important. michael knows this better than almost anyone in terms of our relationship with the european union. that's what they're really concerned about. i would say this election is almost unprecedented in not having any involvement from business. normally you will find business letters to all various media organizations warning about the consequences of one party
vis-a-vis the other. you've had not a word out of them and that's because they've got genuine concerns about both parties. >> michael, let's talk about security because when both you and theresa may were together in the david cameron conservative government you clashed pretty famously with her on conservatism and failing to drain the swamp was the headline. do you think she is at least partly responsible for some of the attacks we've seen in the last three months? >> absolutely not. of course you're always talking about discussions on the difference of emphasis, particular policy solutions that either side might favor. when a reporter is outside, it turns to stories that are written on that basis. fundamentally i think ter vees may's made the right decisions poet on security and as secretary and prime minister. she was in the lead in the strategy that critically pointed out that we needed to tackle the
root causes of violence and that meant intervening when people were being radicalized long before they contemplated violence. >> reporter: in terms of the clash you did have back then, it also involved the clash with one of her top advisors, fiona hill. she's been labeled too controlling, not including members of her party. what's your view on that? does she rely too heavily on close advisors? >> no. i think it's always the case that every leader is accused of relying on too tight a circle of advisers. it happened to david cameron. i know he was accused of relying too much. it happened to margaret thatcher. the truth is that theresa may is a very could llegiate prime minister. >> roland, do you want to say something there? >> no, i think it's a marvelous application for his rightful place back in the cabinet and i very much hope that michael is
back in the cabinet, not just because of his undoubted talents but then because he can fight for one of the promises that the leaf campaign made was 350 million a week going into the nhs which hasn't happened and should happen and hopefully michael can fight for it. >> roland, quick business question. every party has deserted austerity. is that the right pattern for brittain? >> i don't think they've desserted austerity, i think there's a sense it's been pushed too hard. we do not want to see ourselves post brexit having a recession. so you've got to be -- you've got to actually be more sort of in tune of what's going to happen. if we have no deal, the devaluation we've had so far will look actually small compared to the type of devaluation we'll have in the future. so against that you can't have hard austerity at the same time. >> michael, if you were asked to
return the answer would be? >> yes, i would be very happy to be part of the team. i think there's as much chance of me being invited to rejoin the front bench as there is for me to join van gogh for the next premier league season. >> i'd like to see that change. we're stuck with him. roland, my final question. i saw you retweeted something that says may has my vote only through gritted teeth. does that sum up this election? will it be enough to get her over the line? >> i think it will be. i think by common consent she hasn't had a great campaign, but i think you've got to remember that she's up against a very, very weak opposition and that hasn't changed during the campaign, notwithstanding jeremy corbyn's rallies. but i think there has to be a greater explanation about what brexit means. we have to look at the choices facing us. we do need a good trade and security deal. >> opposition with momentum behind them.
gentleman, thank you very much. lovely to see you both. >> pleasure. >> mike and sara, i'll send it back to you. attention all econ geeks. australia did something that only one other country has done in the history of the world. we'll tell you what it is next. plus, will fred hitting the pub to get the real pulse on tomorrow's election. ♪ ♪ >> i am probably going to vote conservative at the moment, mainly because i don't trust corbyn. it's an anti vote rather than vote for it. >> probably vote conservative as well, and key reason is i don't trust a forwarding left policy and they've gone much further left to grow the economy as well. >> i'll be honest with you, i have changed my mind from the
time. i'm tired of theresa may. something a bit fresh and something new. >> with the money i earn it would be entirely stupid of me to vote labor with the tax policies that jeremy corbyn is proposing. >> i think i've enjoyed jeremy corbyn being prime minister. i think it would stir things up. it would be a new approach.
street. they wait to see several geopolitical events. the several things that should be on your radar in the next 24 hours straight ahead. the final push. just a few hours before the polls open in the u.k. general election. live in london ahead. elon musk gets real colorful at a tesla shareholder meeting. details coming up. you're watching "worldwide exchange" on cnbc. ♪ ♪ good morning and welcome back to "worldwide exchange" on cnbc. i'm sara eisen here with mike santoli. june 7th, 2017. willfred frost is in london covering the british election. we'll hear more from him in a moment. first, let's check in on the global markets this morning. could be seeing a little bit of reprieve after two days of minor selling let's call it for u.s. stocks after they pulled back from record highs. dow futures are up 14 points, 15 this morning. s&p futures up 2 1/2.
nasdaq futures up 9. nasdaq has been the big outperformer for the year and since the election. as for the asian session overnight, let's show you what happened there. the yen has been strong, which interestingly didn't take too much of a toll on the nikkei. did yesterday. not so much this morning. as for the nikkei, it closed flat. hong kong's market as well, shanghai comp though was very strong. up 1/ up 1 1/4%. the german dax is down .10 of a percent. the u.k. ftse 100 up .2 of a percent. italy is up half a percent and spain is down half a percent. all eyes there on the banks. looks like things are smooth. we're going to get into that story on spanish banking. for now, have a mixed picture. >> new stripe for sure. over to politics, president trump heads to ohio today to talk infrastructure. nbc's tracie potts joins us with what to watch.
hi, tracie. >> reporter: hey, mike and sara. the president is headed to ohio to meet with obamacare victims and give that speech on infrastructure. he's talked about putting more money into building up roads and bridges. he is leaving behind all the questions about russia here in washington. today a lot of those questions will focus on his director of national intelligence, dan coates. according to a new "washington post" report, the president leaned on coates to try to get him to help shut down this russia investigation. officials who say they are familiar with that conversation told the post that coates considered it and then decided that it was inappropriate for him to go to the then fbi director james comey to try to get him to back off. coats will testify here and likely face questions about that report, but he has said in a statement that he never felt pressured by the president or anyone else in the administration to influence any intelligence matters orion going
investigations. so coats already refuting that story but, again, likely to face a lot of questions about that today. he is not the only one to testify. we will also see today deputy attorney general rod rosenstein. he's the one that put the special counsel in place. andrew mccabe who was the deputy fbi director who took over when james comey was fired. mike rogers head of the nsa and of course dan coats. and then all of this in the buildup to hearing from james comey, the fired fbi director tomorrow. >> tracie, isn't he going to cincinnati to talk about dams and aging locks and infrastructure? >> reporter: right. >> isn't he trying to change the conversation to that? >> reporter: trying to change the conversation. he did yesterday, too. he had members of congress in to talk about how do they advance health care and some of his other initiatives, tax reform, things they want to try to get done here on capitol hill. russia is sucking all of the air out of the room right now. >> tracie, you mentioned the dan
coats report. in the last 12 hours conversations about the attorney general offering to resign if they couldn't get along. daily we're sort of braced for new chapters. >> reporter: that's very frustrating to this white house and to this president. every day something new seems to roll out, new unnamed sources in the major newspapers, on the major networks talking about some new development here. i heard an analyst say this d k could be very interesting that the white house may not know everything that's about to come out and that could be obviously very disconcerting if they're trying to manage the message. >> yes. we might have some suspense going into tomorrow. tracie potts. thank you very much. let's get back to our market check. take a look at oil. again, it remains a little bit back on its heels. oil not really able to take much of a lift from any of these
potentially bullish headlines whether it is unrest in the middle east or perhaps even the inventory draw. yesterday in crude it seems like we're back down below 48 wti crude. natural gas is bouncing a little bit right there. over to other markets, take a look at the ten year. this has been a real focus of a lot of attention at about 2.15. this is the level it hit the day after the u.s. election and it actually shot from about 2% right up to 2.15. so it has spent some time. in case they think there's something with the yield curve. that's still holding steady around 2.15 and change at the ten year note. dollar has also been a little bit on the defensive. not major moves right now but definite lit not sitting far below the low of the dollar index. you see the japanese yen is strengthening under 1.10. the british pound ahead of the
elections is pretty steady at around 1.29 and looking to gold, it's been hovering just below the $1300 mark as bitcoin plumbs the $3,000 level. you see it down just 0.15%. so far today 12.95. australia just tied a major world economic record. new numbers show the australian economy grew for 103 straight quarters. that recession, that ties the netherlands for the world's largest expansion. australia's economy grew 3/4 of a percent. slightly faster than expected. the aussie dollar pops .6 of a percent. any slowdown in china, it's tied. it's a resource rich number. >> 25 zbleers. >> not bad. >> i think the population of australia is up 20%.
>> why there's no -- >> i don't know what they blame the other politicians for if there's been no recession. >> true. following this more serious story here out of iran. iranian state tv reported several attackers raided iran parliament and opened fire at the shrine of the ayatollah khamenei this morning. they said there were unconfirmed reports that the attackers had taken four hostages inside that parliament building. we'll continue to monitor the situation and bring you updates as we have them confirmed. and spain's banco santander has bought banco popular for the symbolic amount of 1 euro. santander plans to raise $8 billion to pay for the rights cleanup of popular's balance sheet. tesla hasn't rolled out the model 3 yet, but ceo elon musk
is touting plans to build a new factory. the model y. speaking at tesla shareholder meeting yesterday, musk says there's no room at the current plant in fremont, california. i expects it to be on the road by 2019. musk said production is expected to begin next month. tesla shares down by less than a point. >> been a crazy run. musk is always going to start talking about the next thing. >> the next thing. the question is can he deliver by those target debates. less than 24 hours until the polls open in the u.k. general election. let's get back to will fred live in london with the story. willfred? >> reporter: thanks, sarah. i'm joined by anatol kalatsky. thank you for joining us. >> good morning. >> reporter: first question has got to be how has theresa may let this huge lead she had slip? >> i think by -- mostly by being
out in the country and letting people get to know her better. she is a very awkward personality as an individual which many people in her office and cabinet will attest. she keeps herself to herself. she doesn't allow others to take part in decision making, she's not a goodell will he gate del indecisive and unwilling to change her mind as we saw with the so-called -- with the so-called tax on dementia. and as a piece in the f.t. said a week ago, she's one of the few politicians where you can say the more people get to know her, the less they like her. and until this election was called, although she had been prime minister for about 7 or 8 months, really nobody knew her. and i think that really accounts
for 70% or more of the reduction. >> and regardless of who wins, there's one very similar position for all of the parties, which is they're abandoning austerity. spending is going to go up massively. can the u.k. afford that? is that something that's worrying for the economy? >> well, i think the u.k. can afford it in the sense that there is no necessity -- there's no economic necessity to reduce the budget deficit to zero over the course of the parliament over the next seven years. the deficit has already come down to manageable level for the short term. but, of course, if you continue running these kind of deficits indefinite indefinitely, and particularly if you continue running these deficits at a point of full employment where we are today and the economy goes down, falls into a recession, then you could be in a pretty serious fiscal dilemma in a recession needing
to expand fiscal policy but needing to do it because of loss of confidence and the whole brexit negotiation feeds into that. >> lots of factors at play of course. as we look ahead to 5:00 p.m. eastern time, 10:00 p.m. eastern time how do we trade it? what's going to happen to the pound? >> i think it's going to be very interesting, the people should not be trading the pound or u.k. assets on the long side or short sides because there is so much inherent predictability of this election. that will come to an end one minute after 10:00 when the exit polls come out and we will know whether the polls show only a 1% spread between labor which would mean a hung parliament and her resignation or the polls that show 11% are roughly right. now in that situation, i think there will be three scenarios. one, probably the most likely one, is the government comes back with a large majority of 50
or more. in that case, i think it goes up rapidly, the pound, for a few days. that i would see as a selling opportunity. that makes a very hard brexit much more likely. if she wins a large majority, it will be because of the very firm promises she has made to really have a complete run for europe. the second scenario is a majority roughly between where we are today 17 and 50. in that situation i think we just revert to the status quo before the election. and the final one, which is the least likely but it's possible, is that the polls showing only 1 or 2% spread are right. then you get a hung parliament. then theresa may will no longer be prime minister -- >> no. >> no, that's interesting. then i think it collapses immediately. i would see that as a big buying opportunity. if the pound collapses on theresa may resigning, on the government falling, then basically brexit does not
happen. and that becomes a very, very bullish environment for a pound that went 25 against the dollar. >> thank you for talking us through it. sara, mike back to you. well, another test for the polls and the market's response to them in the next 36 hours. thanks very much, willford. coming up, the votes are in. we'll see what the major british papers are saying. 10:00 a.m., don't miss a face-to-face interview with kasper rorsted. how has he been able to deliver growth and in his native environment. gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7.
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welcome back to "worldwide exchange", i'm mike santoli along with sara eisen. must-read stories today. "financial times" a john gappert column. do not bend the ipo rules for saudi aramco. selling a tiny stake in an unusual company is bound to be a stretch. the london stock exchange creates post brexit affirmation. cutting a deal for aramco is not the answer. the back story is new york stock exchange, london stock exchange, the authorities are trying to lure this huge listing, maybe a
$3 trillion value. to do it they have to allow people to sue the saudi government. in london you can't sell just 5% of the company. it's kind of interesting to see what these markets will do to try to get tremendously valuable market -- >> we're expecting it this year? >> i think -- i don't know what the current schedule is. in the current months. >> wellfr willfred, what do the pages look like for endorsements? >> reporter: i picked two. apologists for terror. picture of the three main front bench members of jeremy corbyn's labor party. very much focusing on framing
them soft on terror. clearly obviously going with that terror story rather than the election itself. and then on the other hand, the left wing "guardian" paper saying may threatens to dismantle human rights laws in wake of terror attacks. so a sort of negative reaction to how firm her rhetoric has been. these paapeers show how that has dominated the debate so significantly. where papers are making endorsement one way or another towards a candidate, it is doing it begrudgingly. there is a sense of apathy across all voters. the third vote in as many years here. disappointment with all of the leaders and what they're offering and, of course, that raises the question of turnout and which way turnout will be higher, which groupings. that will have a big influence on this result tomorrow. >> i remember during brexit that was the opposite case. i mean, do you remember how dramatic those pictures and
front pages were taking one side, out, independent, we're free or we have no choice but to stay in. it was like the most dramatic episode ever and the papers were on board. they were said to help influence this, weren't they? >> reporter: well, i think the media coverage, of course, always has a little bit of an influence. the bottom line, you're absolutely right. the passion was infinitely higher. typical turnout, 65% brexit. we got 73. forecasts this time are for the low 60s. turnout, of course, a massive swing factor. i'd say if you look into the numbers the way theresa may has slipped, her numbers haven't really fallen, it's been labor's rising in order to close that gap, particularly amongst young voters. of course, young voters typically have lower turnout than older voters. that's a lot of focus for pollsters. will that traditionally low turnout, young voter turnout in force if they do?
jeremy corbyn's got a chance. if they don't, theresa may has a chance. >> i remember it was raining on brexit. thank you for now. see you in a bit. we have to get to "squawk box" because we're getting to the top of the hour. andrew ross sorkin is in new york with a look at what's coming up. good morning, andrew. >> good morning. we have a lot going on. larry bossity is coming up. we'll spend time with gillian tett. we'll be seeing from will when it comes to what's taking place across the pond this morning as well. i know both of you, i think, are now married so this next guest may not help you, but fascinating nonetheless. whitney wolf is going to be here. do you know what bumble is, guys? >> the dating sight? >> bingo. >> we're both married.
>> joe doesn't know this, joe's over here. i'm planning on talking about a fascinating policy issue that took place in kansas last night for those of you that were following the tax -- joe's going to walk into my shot. look, right here he is. just coming right in. >> a lot going on today. >> in kansas -- see, i'm getting a massage on the air. i don't know what -- i can't even finish my sentence. the -- the legislature there is overriding a veto to increase taxes. as you know, there's a great experiment going on in kansas when it comes to corporate taxes and elsewhere which really hasn't worked. we are pea going to talk about the implications of that. so -- and you got to watch a massage live on the air. >> yeah. chemistry. broman. >> chemistry is real. >> thank you, andrew. we'll see you at the top of the hour. up next, we're setting up with the trading events of the day with not one, not two, three
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welcome back to "worldwide exchange." washington and london, two places investors will be laser focused on for the next 24 hours. got the british election tomorrow. former fbi director jaymes co o comey's testimony on capitol hill. from the market's perspective, bill, which is the biggest risk? >> that's a tough one. i'm going to -- i guess i'll go with the comey testimony just because i'll take the home bias in that sense though i don't necessarily expect, you know,
anything huge to come out that moves things, but you have to be ready, right, that that may actually happen. the u.k. seems a little like, you know, we already know the path in terms of brexit. i know your slight detours depending on what happens, so i'm going to go with that. the ecb i'm going to say is the lowest rank in terms of how much i think they'll necessarily surprise us. i think we kind of know how that plays out. >> bill, you know, when we look back to the way the markets have kind of clenched up before the french elections, the brexit, whatever the known events are, they want the events to be passed. once they were through the market went on and kind of did what it was heading to do anyway. where do you think the markets are headed? have we built in a little bit too much up side here not even halfway through the year in u.s. equity indexes? do you think the upward bias remains? >> you know, it's bizarre. we've gone so nicely on the equities side like you said.
maybe we're ahead of ourselves a little bit but the bonds are signaling even at 2.15, we're up a little bit on yield are signaling something different. so you would think something's got to break there. we'd still say we're more optimistic, if you call it that, the yields move up and move towards what stocks are signaling that things are, in fact, getting a bit better but we'll find out how that plays out. >> if you still like this market do you stick with the winning sectors like technology which continues to come up on top? >> yeah, we like technology and then i'd add to it financials because if i'm right on the interest rate side, they should get a boost a bit and obviously the economy helps them as well. you know, maybe play both sides of it because financials have been pretty sluggish. >> lagging. we'll see if the yields move. bill stone, thank you for joining us. >> thanks. >> what are you watching next? >> i'm watching the ten year yield like everybody else and
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good morning. stocks coming off two straight days of modest losses, and the ten year holding below 2.16%, a full market rundown is straight ahead. elon musk opened up about tesla's strategy at last night's annual meeting. we'll show you what he said about the model 3 and the model y. and the company's plans to get into trucking. cue the grateful dead probably. and president trump set to visit the queen city, cincinnati, ohio, after the reds took adam wainwright to the cleaner. one of our players got four home runs and ten rbis.
his name is scooter guinett. trump will be making his sales pitch on infrastructure and health care in the heartland. it's wednesday, june 7th, 2017, one of the greatest offensive performances ever. "squawk box" begins right now. ♪ ♪ live from new york where business never sleeps, this is "squawk box." cbs news this morning. >> it was? >> it was. >> good morning, everybody. welcome to "squawk box" here 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. the equities are indicated higher after closing down yesterday. yesterday we saw the dow down by 47 points. the s&p off by 6.5. the nasdaq down by 20 points. believe it or not even though these were small declines again,