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tv   Worldwide Exchange  CNBC  June 12, 2017 5:00am-6:01am EDT

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good morning uber's uncertain future. the ridesharing app board calls an emergency meeting why the company could be considering sidelining its ceo. the uk election aftermath. theresa may scram mibbles to reshuffle her cabinet. and jeff sessions will be in the hot seat this weak over russian meddling in the election it's monday, june 12, 2017 and "worldwide exchange" begins right now. ♪
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good morning warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm seema mody in for sara eisen. >> great to have you here. >> welcome back from london. >> good to be back another surprise june election result in the uk we'll get the fallout from that in just a moment let's start with what u.s. futures are doing after an extraordinary trading day on friday we hit record highs in the morning and a tech inspired selloff in the afternoon meant lackluster returns for the dow and the s&p and disappointing returns for the nasdaq, down 1.8% on friday the money did go elsewhere energy up 2.5% on friday's session. for the week as a whole, while tech was down 2% financials were up 3%. a selloff in the tech sector the rest of the indices holding up all right the dow was up by 0.3% the s&p slightly lower and the nasdaq down 1.6% for the week.
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this morning expecting softness. the dow called lore wer by 42 points the ten-year ending at 2.209 >> the selloff in tech extending to asia. some big heavyweights there, samsung, acc holdings and ten cent closing down by 2% on the day. the nikkei holding on to a loss of a half percent. data out overnight from japan, core machinery orders falling 3.1% in april from the previous month. a bigger drop than expected. red across the screen with the hang seng being the big loser there, down 1.2% in europe politics still the big talker there central bankers will be in the spotlight. we have a federal reserve meeting on wednesday, a bank of england meeting on thursday.
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inflation has been a big talker there. lastly to round things off, central bank meetings in russia and japan on friday. the ftse 100 down 0.3% the real center of focus was the pound and the volatility in the uk currency. >> the pound fall on friday allowed the ftse 100 to have a positive return. markets didn't see a big fallout. the other interesting thing in europe over the weekend, the french parliamentary results and also in italy, elections in the five star movement failing to make the second round in seven out of eight local regions perhaps you would have expected european markets to do better. all in all, all these votes pretty good for europe >> on that note, bond yields have been coming down in francis
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and france and italy. oil prices fell sharply last week because of u.s. smi dauppl data down 3.5%. the momentum today, up 0.3 for wti. 45.96. dollar up last year 0.4% not a huge movement today. a third of a percent against the euro and the yen the pound is flat this morning slightly down. still not managing to rebound after a 1.7% fall off the back of that surprise result leading to no clear majority in the uk parliament gold prices down 0.7% last week. flat this morning at 1,271. >> this week the fed is front and center today the monthly federal budget statement, tomorrow the producer
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price index, and day one of the fed meeting. on wednesday, look for retail sales, cpi, the fed statement and the latest economic proje projections and janet yellen's news conference. thursday, impors prices, philly fed survey, and friday housing starts to ongoing tensions in the middle east. it's been a week since several arab states cut ties with qatar, accusing the country of funneling money to terrorist groups how are those sanctions impacting the region's economy hadley gamble sat down one-on-one with qatar's finance minister to find out hi, hadley >> the finance minister in qatar saying it's business as usual, despite pressure on the currency let's listen in.
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>> if you look at what's happened, sometimes a lot of people think we're the only one to lose in this. i don't think so qatar is a very strong economy it's a big economy i think if we're going to lose a dollar, they will lose a dollar also i think there's a lot of business among everybody around us so i think it's -- i like to have a win-win situation, this incident, it's very unfortunate to put a lot of life especially human peoples in difficulties, families being disrupted around the countries. this is not the road we wanted to take. it was forced on us. it was taken by other countries. i always say qatar is always open for business. we like the people to live here, they have full accessibility and getting in and out of the country at their own way >> he did mention he dismissive
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than the qatari sovereign wealth fund would begin to sell off assets and the mixed messages from washington, whether it's rex tillerson urging calm or the president saying qatar has been a sponsor of terrorism for a long time. he said they're looking for something more from washington >> hadley, thank you very much for that hadley gamble live from the middle east. uber's board taking action on a long awaited report on its culture. >> uber's board meeting unannounced yesterday to weigh in on former u.s. attorney general eric holder's report on its culture. full details on the report will be made public tomorrow. it is unclear if action will be taken against uber's ceo, travis kalanick or other executives but the new york times is reporting that kalanick could
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face a three-month leave of absence. the holder report comes after a former uber engineer claimed that the country failed to act on sexual harassment and gender discrimination complaints. since then uber dismissed 20 employees because of misconduct. >> still the hottest ipo on deck in 2018. >> the big question is does it stop the rot bottom line is that it has not really impacted market share in cities does it proliferate further if they don't stop it >> if they lose key talent what that means for the strategy going forward. apple downgraded from buy to neutral by mizuho, also lowering the price target from $160 to $150 a share they say the stock outperformed this year and enthusiasm for a
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new iphone is captured in the share price. tech had a big selloff on friday, down 2.24% sanofi and regeneron say they're anti-cholesterol drug saw positive results in the first dedicated trial involving patients with diabetes and high cholesterol. the data was presented yesterday. not much move in the share price. teva stock has dropped sharply because of delays in acquisitions western digital reportedly considering raising its offer for toshiba's chip unit to more than $18 billion. western digital's ceo told toshiba's president the company plans to join a consortium that includes kkr and a development bank of japan to compete with a rival off
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amazon started hiring people to sell cars online in europe. a german straytrade magazine sah company will run the business out of luxembourg. and shares of diebold could rise 25% to 40% over the next two years. the atmmaker should be able to raise margins and earnings thanks to cost synergies and the merger last year. prime minister theresa may faces a showdown today as her political future hangs in the balance. all the fallout from that extraordinary vote last week and much more coming up on "worldwide exchange. these days families want to be connected 24/7.
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it all adds up to our most reliable network ever. one that keeps you connected to what matters most. puerto rico voting yesterday to become the 51st u.s. state. experts say it's highly unlikely the republican controlled u.s. congress will authorize it the vote was spearheaded by puerto rico's governor as he tries to save the island's economy which carries more than $73 billion in debt. only 23% of all eligible voters took part in the election. the results from france's first parliamentary election yesterday shows president emanuel macron's party winning by a large margin. that puts his new republic on the move to land a huge majority in the final round vote this sunday france's interior ministry says
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macron's party won 28% of the vote followed by conservative republicans at 16% and the far right national front with 14%. what we care b it'sabout, it's win for macron and what that could mean for equities. >> he has to get through round two next week, but the forecasts are he will get 400 of the 577 seats in parliament, a majority that theresa may could dream of. people questioned when he was starting his new party that even if he won the presidency, could he govern effectively? would he be able to win seats? looks like he will be able to. but on top of that, this is a vote of confidence and vote of authority for his reform agenda. it's a good thing for pro europe reformists >> sure. we're talking about eurozone, second largest economy >> we are. let's talk about the european union's second biggest economy, the uk.
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british prime minister theresa may reappointed most of her cabinet yesterday but also brought in a former rival into the government in a bid to unite hez party. michael gove returned to be environment minister he told sky news he was surprised to get the invitation. gove also has clashed with theresa may in the past when she was home secretary the bottom line in terms of what we're looking at now, is that what does it mean for brexit negotiations and what also -- how much longer can she stay in post i think over the weekend, many people thought she could leave imminently but the fact that boris johnson pulled away a bit from challenging her makes it look like she will get through the summer >> when it comes to the news of gove i wanted your thoughts what a remarkibility comeback for a man who got involved with
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political drama last year. >> absolutely right. we'll get a perspective from london peter spiegel joins us from the "the financial times." extra oordinary result. theresa may, how long does she got? >> as you said, it looked like it could be days or hours after the election results became clear friday morning or thursday night/friday morning she does seem to have stayed off the biggest risk, boris johnson. it's interesting when luke at the reshuffle. you're right michael gove is back in, she's also brought in leading pro remain aides and ministers. her new chief of staff is a pro eu who campaigned for remain she has the balance of this now, because she has to rely on 13 scottish tories. that was the big gains for the tories was in scotland 12 new seats at 13 now. they are incredibly froe eu.
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they're trying to balance a rump of the political party which has always been hard lined, hard brexit that clearly failed and she's trying to win back some of the soft brexit pro remain people. i think what we'll see over the next coming days, weeks and summer is this division over europe which has plagued the tory party for decade also come back to the fore may is saying full speed ahead we'll start talks again this week or next week. the europeans are questioning whether the brits have any authority to negotiate a deal. it's been a huge mess. >> >> pepeter, you mentioned thr versus soft brexit that has implications for the pound longer term. there's also the debate in the tory manifesto of no deal is better than a bad deal does the partnership confirm
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that the tories have to push for a deal of some form? is that good for the pound >> i think what is good for the pound. the big thing for the pound is this idea of the soft brexit forces reasserting themselves. the reason the pound fell so sharply throughout the may government was because this belief she is hell bent on getting out of the single market, getting out of the customs union. we have seen in the last 24, 48 hours is business interests reasserting itself saying you have not listened to us over the first year of your premiership you murs nst now listen to us. the dup, a hard right party on social issues, they are concerned about a new border with the republic of ireland they're pushing for membership in the custom union. the scots, she has a big group of mps pushing for open brexit we're not sure what that means it is not the old school theresa
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may hard brexit out. that's good for the pound, good for growth and it's also good for companies looking to stay or go from the uk the financial sector being the most important of them who are thinking about moving to frankfurt, amsterdam, paris. that could mean they keep behind hundreds if not thousands of people they were thinkthinking t moving overseas. >> may 19th, next monday, the date that brexit talks are meant to begin secondly, the date of the queen's speech which will essentially be a vote of confidence over the following week for theresa may and the new government she assembleassemble. >> uk politics never ceases to be interesting. coming up on the show, preet bharara weighing no, i don't
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tru trump/comey showdown that coming up next. first, here is the national weather forecast from bill karins good monday morning to you the heat wave is a big story and a concern about severe storms. temperatures in the 90s in a lot of big cities from the rockies to the east coast. in the 90s today chicago, des moines, kansas city. st. louis, 94. we should be near record highs today. i-95 from d.c. to philly to new york to hartford, everyone nearing 95 degrees humidity is not too bad. when the cold dprofront comes through, heat wave ends. by thursday, dropping into the 70s. it's a three-day heat wave, today is the middle day of it. severe storm threat today. 5 million people in the central plains from wyoming to north dakota, south dakota and nebraska, a chance for a few tornadoes. more "worldwide exchange" when
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we come back ready or not, here i come. ♪ anyone can dream. making it a reality is the hard part. northrop grumman command and control systems always let you see the complete picture. and we're looking for a few dreamers to join us.
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preet bharara know house james comey feels. he said before being fired president trump tried to cultivate a relationship with. bharara said trump called him several times in what seems to be similar reactions to what comey testified to last week he said there seems to be evidence of an obstruction of
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justice case against trump >> i think a lot of people will tell you that the president himself makes accusations that turn out not to be true. when it comes down to who is telling the truth and who is not, most people would side reasonably with james comey. >> preet bharara was fired with 45 other u.s. attorneys, even though he said he had assurances from president trump that he could stay in his job. among the top stories in washington, attorney general jeff sessions expected to testify in front of the senate today about the russia probe edward lawrence has the latest >> reporter: attorney general jeff sessions was supposed to testify on tuesday but supposed to go in front of the senate and house appropriations committee that is a peb foublic forum. by agreeing to testify with the senate intelligence committee he has the option or the committee has the option to make this a
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closed door hearing. democrats obviously would want this to be out in the public some republicans are saying that attorney general jeff sessions hopes this goes behind closed doors and avoiding a public spectacle. there's a possible third undisclosed meeting that apparently may have happened and he will be asked about that. he will be asked whether the president tried to interfere or influence the russia probe >> we have another testimony coming in from the secretary of defense, jim mattis. that starts tonight and continues throughout the week. we knows there been ongoing criticism about trump's proposal for the 6$600 billion defense budget >> he will be peppered on specifics about the budget, where the money will go, what it will be used for the cuts in the president's budget are from other areas that
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have some programs and resources that some folks around the country would like to use. gutting possibly the department of education and other departments. so congress or senators want to know where this money will be going, what it will be used for and how important it is to have all of this money in one place rather than spreading it out now to sports. the pittsburgh penguins are kings of the ice they beat the national predators 2-0 in game six of the stanley cup finals last night to wrap up the series and repeat as nhl's champs sidney crosby was named mvp of the finals this is the fifth stanley cup for the team i missed this, i did watch nadal win the french open. >> with ease good to see him back >> absolutely.
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>> federer fought back in the australian open. nadal is back. wonder what will happen for whim whi wimbledon. >> maybe murray. >> mur ramurray/federer final that's a dream for me. coming up, trending at the tony's kevin spacey making a splash at the ceremony with a presidential impersian naoti impersonati impersonation. much more coming up on "worldwide exchange.
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good morning waiting on the fed investors in a holding pattern ahead of this week's fomc meeting. uber's board said it will adopt all recommendations in a report on the company's so-called bro culture. and broadway's biggest night. a wrap up of the tony awards it's monday, june 12, 2017, you're watching "worldwide exchange" on cnbc. ♪ good morning a warm welcome to cnbc i'm wilfred frost. >> i'm seema mody in for sara eisen. straight to the markets we go. what a session on friday with a huge reversal in tech shares a bit of buying in financials. the selloff in tech was notable. that coming after a report from
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goldman sachs said the huge run up in several big sector stocks this year was a cause for pause. these big tech heavyweights like facebook, apple, amazon, netflix losing more than 3% on the day on heavy volume it was the second highest volume of the day of 2017. will the selloff extend into monday we are look at futures down a bit. dow jones off by 23. nasdaq off 46 points the s&p 500 lower by 5 in asia, they're following the footsteps of the u.s. where tech was the worst performing sector in hong kong and china some big names there, samsung, acc, ten cent losing 2%, 3%. hang seng down by 1.2% the import pricing number that came out of japan also disappointed street expectations
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in europe politics still stealing the spotlight in france over the weekend, it looks like emanuel macron's party is setting to win a clear majority in parliament this is the first round. second round will be june 18th another win for macron as he settles in as the new president of france. stocks in europe, ri right now e lower. the ftse 100 as we continue to learn more about the fallout from the election and what theresa may is doing with her cabinet, down about 0.2%. oil prices had a tough week on news of better u.s. supply. they did stop the rot by the end of the week. up half a percent on friz. oil prices up 0.4% $46 the price for wti. ten-year treasury note yields ticked up a bit above 2.2. dollar last week, we did see
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some strength, up about 0.4% for the most part, about a percent or two of dollar weakness, apart from the pound which is seeing softness gold prices to round things off were up about -- down about 0.7% last week. flat this morning. breaking overnight, uber's board of directors voting unanimously to approve all recommendations inside a report on the company's culture and management the details of the report compiled by former attorney general eric holder will be made public tomorrow. it's unclear if action will be taken against travis kalanick. the "new york times" reports kalanick could face a three-month leave of absence this report follows an explosive blog where a former uber engineer failed to act on sexual harassment and gender discrimination complaints. since then uber dismissed 20
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employees because of miscontradict. lyft has a new passenger on board, that is jaguar land rover. they invested $20 million into the company. jlr will provide a fleet of vehicles to lyft drivers and the companies will work together on self-driving cars. i have not seen all the details, but a big fan of the jaguar and land rover could be tempting enough to switch my loyalty if you could sit in the back of an f pace. puerto rico voting yesterday to become the 51st strait. but it's highly unlikely the republican controlled u.s. congress will honor that the island's economy carries more than $73 billion in debt. only 23% of all eligible voters took part in the election.
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this week is chock full of economic data. today the monthly federal budget statement, tomorrow the producer price index, and day one of the fed meeting. on wednesday, look for retail sales, cpi, the fed statement and the latest economic projections and janet yellen's news conference. on thursday, import prices, the philly fed survey, and friday housing starts a lot to look out for. >> and that russian central bank decision on friday, which i know everyone is excited about. >> and the bank of england decision on hursday. >> it's true. as you head out the door, here's some stocks to keep an eye on apple downgraded from buy to neutral by mizuho, also lowering the price target from $160 to $150 a share they say the stock outperformed this year and enthusiasm for a new iphone is captured in the share price. sanofi and regeneron say they're anti-cholesterol drug saw positive results in the first dedicated trial involving patients with diabetes and high
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cholesterol. the data was presented yesterday at the annual meeting of the american diabetes association. teva pharmaceuticals looking to refresh its board with four new directors as it tries to restore investor confident teva stock has dropped sharply in the last few months, while it's drug for multiple sclerosis faces generic competition. western digital reportedly considering raising its offer for toshiba's chip unit to more than $18 billion at a meeting on friday western digital's ceo told toshiba's president the company plans to join a consortium that includes kkr and a development bank of japan to compete with a rival offer. toshiba up 10% amazon started hiring people to sell cars online in europe. a german trade magazine says the company will run the business out of luxembourg. it is looking at britain as a possible test market amazon shares down 1%.
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barron's says shares of diebold coul rise 25% to 40% over the next two years. the atm maker should be able to raise margins and earnings thanks to cost synergies and the merger last year. no move in the share price this morning. gamers, listen up, microsoft unveiling the newest game console yesterday. the x-box 1x will go on sale in november and will cost $499. that's twice the price tag of the current x-box 1 and it is $100 more than the play station 4 pro. the new device marks microsoft's push into 4k gaming and it is compatible with every older game made for the x-box high price tag there the top trending stories today, the first family is all under one roof today
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melania trump took to twitter yesterday saying she has moved to the white house with son barron they lived in new york so barron could finish out the school year a nice picture there taken from the red room i read earlier. sticking with the white house or i guess the trump administration, commander in chief, president trump and a wedding crasher? over the weekend president trump made a surprise visit at a wedding that took place at the trump national golf club in new jersey the guests didn't know the president would be dropping in until secret service agents came in to prepare for the president's arrival. he was greeted with applause, happy smiles >> they must have tested the water. it was a wedding reception that loved his presence you can imagine some wouldn't. >> sure. >> either way, it looks like he made their day more special.
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kevin spacey making a splash at the tony awards with an imprii impression of bill clinton >> ben plat was named one of "time" magazine's most 100 influential people i was on that list a couple times. ben, you know who you bumped off that list, my wife no, it's all right it's all right between you and me, you might be a better singer, by after seeing your show, there's no doubt that hillary is better at creating fake e-mail accounts than you. i just want to do a joke nobody thought i would do >> he can do two presidential impersonations at least alongside frank underwood. i wonder if he could challenge mr. baldwin for a trump administration >> i'm surprised he focused on the clintons versus our current
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president. how many presidential imitations can you do >> don't think i can do any. maybe i'll train one up, for right now, none. here's a round up of the tony winners dear evan hanson took home best musical, and best play went to oslo. delta has pulled its sponsorship of julius caesar delta releasing a statement saying no matter what your political stance may be, the graphic staging of shakespeare at the park does not represent delta air lines values. an anonymous fan of warren buffett agreed to pay 2$2.7 billion to have launch with the oracle of omaha. million, excuse me the money goes to glide, a
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charity that gives food, healthcare and other services to the homeless and people struggling with substance abuse. >> huge kudos to him and the person making the donation on the flip side, just make sure for free you can watch when warren buffett joins "squawk box. always outstanding coming up, more fallout from the uk election plus today's must reads and later we're setting you up for the big week ahead on wall street. futures now pointing lower again. tech also lower again after a big selloff on friday. that's expe we're back on "worldwide exchange" in a few minutes looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest
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welcome back to "worldwide exchange" i'm wilfred frost with seema mody let's check in on the futures action we're expecting more weakness as we saw on friday, particularly led by the tech sector the nasdaq expected to open down 51 points. the dow bodown 42. the nasdaq down 1.8% on friday oil prices, which were down 3.5% for the week last week but did recover half a percent on friday are recovering again, $45.95. my pick is in the financial
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time, titled phillip hammond is the politician to salvage a brexit deal. there is no sense an apology will emerge from the ashes of mrs. may's defeat. mr. johnson is not alone in seeing the brexit vote and the aftermath as an opportunity for personal advancement rather than a threat to national prosperity and security mr. hammond should take the opportunity to make the counter case a lot of talk about whether theresa may will make it the next week or year. and phillip hammond is a name that may be considered for the most part theresa may seems stronger than she did 24 hours ago. my pick is titled the trump budget still short changes the military since 2010 the defense budget has been cut by more than 20%,
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but the world has not become 20% safer. to get planes, ships and equipment ready to deploy to the middle east, the military has had to take parts off of other planes, ships and units. this has diminished america's readiness. the american military is not ready to carry out missions it may be asked to do in times of war. this may be a discussion as the secretary of defense, jim mattis heads to the hill. he is testifying in front of the senate where trump's proposed defense budget will be the topic of discussion. >> jeff sessions will be in focus this week. one would say after the huge focus on various testimonies last week, there's more economic data to focus on this week and the fed meeting, so we can hopefully transition away from the political headlines. approaching the top of the hour. the team is getting ready for "squawk box. joe kernen has a view of what's
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coming up from new york. >> hi, wilf, how are you >> i'm all right how about you? sounds like you're not all right? >> big weekend hot. finally got hot. i got a little air conditioning problem. it's all right trying to glean what i can from this tech wreck. you will see that term today we like to rhyme a lot of times. we'll use it if we can that was interesting on friday for people who said we have gone too far too fast they always pointed out what was leading us there's five stocks leading us it's not really f.a.n.g. anymore. google is not g., it's an "a." apple is not in there. it's amazon. so it should be f.a.a.a.n.g. >> sounds like you need a good fan if you're air conditioning
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is broken. >> just in one room -- one ring. >> o wing as goes all these stocks, maybe this is indicative of just a bit of foreshocks -- is that a -- that's the opposite of an aftershock we'll see. it's something to keep an eye on definitely today if you add up the market cap i've been saying it for a while, pick some big companies, well known companies. add them up. add up facebook, amazon, apple, couple others, it's unbelievable how much market cap is concentrated in those names. it wouldn't take much for some air to come out of those and affect everything. summer, sell in may, go away, all that stuff >> definitely the tech selloff affected asian trade a lot of asian tech companies down you would say the flip side, we
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did see offsetting moves on friday, energy up, and banks up. so weelt ha'll have to see if i rotation or sparks a selloff we'll see you in 11 minutes time >> we'll see you. coming up on "worldwide exchange," we'll kick off a big week with housing data, jobless claims and a fed meeting we'll set you up for "worldwide exchange" when we return think again. this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment.
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welcome back to "worldwide exchange" i'm wilfred frost along with seema mody. this week the fed kicks off a two-day policy meeting right now futures pointing lower. tech leading that weakness as it did on friday. the nasdaq down 50 points in the premarket. let's bring in joe lavonic important to touch on this tech selloff first. is it encouraging that it's
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mainly one sector focused as opposed ed td to driven by eco data >> it is the tech has done well because a lot of companies have monopoly pricing power which is unique to their business my guess is that its temporary the overall equity market typically doesn't peak until the onset of a recession is almost at hand. that's not the case now. >> so we look ahead to a heavy week of economic data release and also the fed meeting what's top of the agenda for you? >> the fed meeting is central to the trading. i'm sure over the next few months it will set the tone. yellen and company will release new forecasts. it's not just a statement but what the new forecasts show and what the fed believes it will do the rest of this year and next year in terms of interest rates. but also before we get that
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meeting statement, we get data on retail sales and inflation, cpi. those two figures could impact the tone of the statement because what we noticed over the past couple of months is a fixed income market saying what the fed intends to do beyond this meeting is very much different than what the fed itself wants to do. so the market is pricing very little tightening beyond this meeting. >> do you think thefed will trigger another rate hike, especially as we see the ongoing uncertainty around the president's pro business policies the economic data has been good on the jobs front but a first quarter gdp number that was soft and a rise in inflation has not been consistent. >> that's right. last friday wholesale inventories was much weaker. my guess is a lot of analysts may have taken down the q2 estimate the data has been okay political uncertainty may be a
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factor but my guess is the fed will buy the option based on how the data evolves, and the fed won't make meaningful changes but rather give themselves the opportunity to continue to tighten rates if the economy evolves as the consensus of members suggests. which means whether you believe it or not they'll go again this week hike the second half of the year if you look at the median dots, the fed has hikes, so i think that will be the case. >> if the fed does hike, will that spark a move in yields and the u.s. dollar? both have been flat and weak recently >> it will depent d on what jan yellen says. if the fed seems more hawkish, the yield curve will continue to flatten. as you said, the short-term inflation dynamics have been positive
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the only way you'll get the yield curve actually yields to rise significantly is if you had more inflation pressure which in the short-term does not seem to be present, or if the fed was to get much more aggressive on what it intends to do with the balance sheet. >> joe, right now look at nasdaq futures down about 48 points the dow off by 30. if this selloff continues in equities, could this spark a rotation into bonds? if so, where are yields headed from there >> most of the money this year has flown into bonds at the expense of equities. this has been a theme we've seen for a while. there might be a rotation within equities, seems to be that case on friday as wilfred was saying. went fromtechnology into industrials, energy and financials the thing is, as i said earlier, bull markets die because the economy is about ready to slow
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dramatically so, unless you get very pessimistic on the economy, the outlook for corporate profits is excellent. interest rates are very low. yes, i would treat this mainly as a rotation i'm sure once those stocks stabilize you will see higher technology prices that's the one area of the economy what's doing very well and we have not hit the highs for the s&p yet in the cycle. oil prices, you're not concerned that the weakness we saw in them last week is a sign of an upcoming recession >> not at all. typically recessions occur because of major imbalances in the economy often driven by excessively tight monetary policy oil is range bound at a low price. as we know in the u.s., those shale fraccers can produce good profits even at those low prices >> joe, thank you very much. ten seconds to go.
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keep an eye not just on u.s. futures but european and asian trade both soft. that's it for "worldwide an fange." thksor joining us. "squawk box" is next it has the same great taste it's always had. even the same sound. [sfx: buschhhhh] [sfx: eagle cries]
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good morning uber problems at uber. emergency board meeting. reportedly considering a leave of absence for the ceo details straight ahead friday's tech wreck weighing in on asian markets overnight. it's what i think is the important thing to watch today nasdaq down big again this morning. the central bank is taking center stage this week as we await rate decisions on wednesday. and attorney general jeff
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sessions will be in the hot seat this week. he will testify about russian interference in the election it's monday, june 12, 2017 "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. things are down slightly dow futures down by about 38 points nasdaq off by 46 overnight in asia, the nikkei down by a half percentage point. the hang seng off by 1.25%, and the shanghai down by 0.6%.


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