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tv   Street Signs  CNBC  June 15, 2017 4:00am-5:01am EDT

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what a transatlantic monetary policy contortion and conundrum we have. we have the fed raising rates, you have the boe who has inflation and not moving rates because of a host of other problems we'll discuss right here on "street signs. a sea of red with basic resource stocks leading the losses. oil prices once again turning
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lower. the federal reserve moving to normalize hiking rates a second time this year and unveiling the plan to trim its balance sheet, 4$4.5 trillion there, despite another soft inflation reading. >> we do have a strengthening economy with policy accommodative, all that we're doing in raising rates is moving -- removing a bit of accommodation heading to a neutral pace >> china sea's foreign investment falling for a second straight month this as questions around anbang. and in a stunning turning point in the russia probe, the u.s. special counsel, robert mueller, reportedly opens an investigation into whether president trump tried to obstruct justice
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i kid you not, an hour and 15 minutes ago, we were saying where will we see movement look, an hour and 15 minutes later, an hour into trading we have a decent-sized decline on other hands. down 0.6% on the euro stoxx 600 at the moment. we should go straight in and look at which countries are being affected the most in terms of this down tick. we have the ftse 100 down -- ftse mib down 0.7% cac, despite the fact they have a stable political establishment at the moment, macron will be storming the assembly vote, 0.9% lower. xetra dax, a lot of questions raised about the corporate structure of deutsche bank, we expect an imminent announcement on that one. 0.6% lower
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the ftse seeing 52 points taken off. not long ago we were trading 75.50. we have come off a decent bit at incredibly elevated levels compared to just after that brexit vote. let's look at the sectors. basic resources, 1.4%. what is the story on basic resources? i'm hearing a bit of rotation. a materials in the u.s. hit a record high and came off, that's number one factor. the headline about the china fdi, so are we seeing a material slowdown on one side of the ledger and will we see changes to the regulations governing the miners in stiouth africa which could ld to weakening of international corporations china, south africa and the u.s. selloff. telecom 1.3% lower retail, we will spend a lot of time looking at retail on both
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sides of the atlantic. okay let's look at the federal reserve then that's the story the federal reserve hiked interest rates by a quarter percentage point no change there. we all knew that would happen. citing continued economic growth and labo viewing recent softness as temporary, the central bank went ahead with the second rate increase of the year janet yellen said the fomc sees inflation stabilizing over the medium term. >> with employment near its maximum sustainable level and the labor market continuing to strengthen, the committee still expects inflation to move up and stabilize around 2% over the next couple of years in line with the longer run objective. nonetheless, in light of the softer recent inflation readings, the committee is monitoring inflation developments closely >> yet the market is disbelieving doesn't matter what janet yellen
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says the market is disbelieving seeing the ten-year and 30-year seeing depressed yields. the fomc stuck to the forecast of one further rate hike this year with rates moving to around 3% in the longer term. it also began plans of unwinding its 4$4.5 trillion balance shee this year. let's listen in. >> we currently expect to begin immre mplementing a balance shet normalization program this year. consistent with the principles and plans we released in 2014, this program would gradually decrease our reinvestments and initiate a gradual and largely predictable decline in other securities holdings. michael collins is from pgi. good to see you this morning >> good morning. >> yellen and the fed saying one thing. the market is saying we don't believe you. someone is very, very wrong on
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this >> the fed seems like they're intent on continuing on this path of hiking rates until something breaks every past fed cycle we lived through, that's their m.o. keep hiking until something goes wrong. it feels like we might be in the same environment this time >> so in terms of where you stand come prayered to where the market -- you have the fed up with its three hikes in 2018, three hikes in 2019. another left for this year the market doesn't believe it. where do you see it? >> we're taking the under as well we have been on the other side of the market for quite awhile thinking that the fed will probably stop this cycle between 1.5% and 2%. we don't buy the 3% dot. i call that the pipe dream dot maybe in a perfect world they could get to 3%. this is not a perfect world. and they have a balance sheet to contend with >> what don't you believe? the employment data, inflation data or all of the above >> all of the above. some of the signs on the screens
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and from china and modi itcommo prices and the yield curve may be telling us that global growth already peaked if you think china will gradually slow down, that's our long-term view, you may have seen growth in europe which looks great, you may have seen that peak. on the inflation front, because you are seeing wages trickle up doesn't mean companies can pass that through we're seeing more signs of deflationary pressures at the corporate level. >> so no phillips curve. phillips curve doesn't work. it's broke >> it means wages go up but not consumer prices going up so profit margins get squeezed at this point in the cycle >> in terms of what the market is doing, what the market is not doing, it's always glass half full for the market i think. whether we have trump oscillating on his performance a lot of expectation, so we rallied. now trump is having a tougher
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time getting legislation through. we still rallied record after record, materials fell 1% after hitting a record beforehand >> the markets are seeing through all this it's coming out of the election in the u.s like i r yyou said, everybody w euphoric, the markets went up. now the markets are saying we're back to a goldilocks world, slow growth, accommodative monetary policies and that grasp for income and assets continues. >> i hate this term, but the relative valuation when we look at the bond yields, there's no value there really for longer term investors. is it because the equity market looks better >> i don't know. i think all the markets, stock market, bond market, high yield market are telling you the same thing. they're pricing in lower returns in the future. even the stock market with the multiples they're at are
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probably going to justify maybe 5% to 6% annualized returns for the next ten years if you get 2%, 3% in bonds, maybe the high yield bond market which is something we talk about relative to stocks you could argue the high yield market could be competitive. >> we've been around long enough to know the high yield market is not what it used to be high yield now means 4%. >> that's right. >> stocks are at 6 that's the world we live in. >> mike, you and i used to call high yield junk. >> i know. i know they're still junk the credit quality is still junk and arguably getting junkier >> valuations, that's the hope for corporates, that the earnings season was good double digit on the back of a strong energy sector, which will have some problems if the oil prices keep falling. but in terms of growing into evaluations, we talk about the peaks in the economy, how the fed got it wrong, can they still keep growing >> i don't think so. i'm worried.
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especially in the highly levered sectors. we're looking at the debt side of it, corporate bond market, high yield market, high yield companies are built for ebita growth in a world where nominal gdp is in the low single digits not everybody on average will grow into the balance sheets. >> mike, you'll stay with us we'll talk about the european situation. i mentioned the fed doesn't have inflation but are raising rates. the uk has inflation and is not raising rates. uk may have hit a -- uk inflation has hit a 4.5-year high but the bank of england not moving, is it? a few other issues out there like the consumer and brexit gemma, are they hamstrung by the uncertainty politically and how the consumer will fair going forward? are we talking about the uk consumer being maxed out >> it looks like it uk consumers have had a rough ride even since
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the bank last met in may the two key pieces of data are inflation coming in at 2.9%, which is 0.2% above where the bank thought it would be as eventually as may. they're anticipating it to be around 2.7 looking at wage growth, this is the second month where it's been negative on the real wage growth side real wages have not only just recently recovered to the 2004 levels very disappointing all around. yes, it is felt the consumer is set to suffer, which will have huge ramifications for the uk economy given that two-thirds of the economy is dependent on consumer spending. political developments have taken a negative turn since may. the signals here are more mixed. one thing we need to remember is that the bank did emphasize all its projections were reliant on a smooth brexit process. that was a key assumption for the bank with regards to the election which was clearly a disaster for theresa may, her hard brexit
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agenda looks like it's taken a step back and it could be positive for business and growth we need to remember as well the tory manifesto, which drtheresa may ran with, was decidedly less positive and less pro growth and pro business than it has been in the past mixed messages coming from the government here. still looking to see what concessions the government or theresa may will need to make in order to stabilize the government so very confusing political situation. poor economic developments since the bank last met in may >> i'm very excited. i have my white tie ready to go. my tails i'm there. who will have the best and most controversial speech tonight hammond who clung on to his job or carney? >> look, i think hammond has got a bit of momentum. the prospects for him retaining his job were in question by many it looks like not only has he
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retained his job, but also it looks like the potentially softer brexit he has been angling for, the more business friendly brexit has a bit of a kick start thanks to the outcome of the election. i think he could very well seize this opportunity to step forward and give -- deliver a compelling argument as to why pro business pro growth brexit, softer brexit at least could be in the interest of the economy and the uk overall >> gemma, thank you very much for that the chairman of the swiss national bank said that the swiss franc remains significantly overvalued speaking after the central bank policy was kept on hold, the swiss economy is on the road to recovery but inflation is still very low let's get back to mike collins you gave your concerns earlier on about the u.s. economy and the chinese economy topping out. the third major block from the world, the eu, is doing all right. things are on the up
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>> it has been doing all right if you look at the leading indicators, china and global trade have been up for the last 6, 12 months i think europe has ridden the coattails of that. now you're seeing some of those leading indicators roll over we may have seen the peaks in global growth and in european growth as a whole europe is growing >> terms of investment scenario, are you directing money towards europe if so, where >> the european credit markets, there's still some value you have this qe from the ecb. they have sucked the life out. >> where is the value? >> they sucked the life out of the bonds they're allowed to buy. so you buy the bonds that they have not purchased and as a u.s. primarily investor we can buy the european denominated, euro denominated bonds. sometimes they're u.s. companies issuing in europe what look like
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low coupons. when we hedge it back, we pick up a decent spread >> give me an example of the stuff you're looking at. >> hertz is a big u.s. auto rental company they're having troubles. they did a big euro denominated deal last year fedex has done a big euro denominated deal they have businesses in europe can fund businesses with euro denominated revenues the ecb can't buy those bonds. american investors will buy those, hedge it back and pick up an incremental spread. we're not buying the thing the fed has been buying. we're underweight treasuries and agency backed securities >> can you shorten this tough? >> you can short parts of different yield curves one trade we have on, we're short the front end of the u.s. curve and long the back end.
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as the fed keeps raising rates, and seems insistent on raising rates, and raises rates until something breaks, you will see the curve flat >> thank you very much for your time mike collins, senior investment officer at pgim. china's central bank left interest rates unchanged unlike in march where it raised rates within the federal reserve's rate hike. the yuan rose a dollar after the decision. foreign investment into china has fallen for the second consecutive month. fdi into the country fell 3.7% year on year in the month of may. the fall comes amid fears over china's mounting debt pile regional government level, corporate level, government level and the slowing growth trajectory coming up on this show, the battle over the aramco listing is heating up.
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a dispute over whether to list in new york or london is reportedly slowing the planned ipo of the oil giant saudi aramco stay tuned for the full story. [vo] when it comes to investing, 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 investment and wealth management firms in the country. discover how we can help find your unlock.
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and don't forget about them. uh huh. sure. still yes! you can get it too. welcome to the party. introducing gig-speed internet from xfinity. finally, gig for your neighborhood too. welcome back to "street signs. maersk was among the biggest fallers in trade after a dirty bomb threat. the u.s. coast guard says there is no threat and the terminal is reopening. the bomb scare triggered an evacuation of the ship and the search of several containers on board. maersk the crew is safe. why do you care about maersk for all kinds of reasons it's the world's largest container shipping company
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so what you say? this is a big barometer of trade. if you want to see if world trade is picking up to asia, europe, to the u.s., you have to look at some of these companies. which quite frank ly has been revamping himself. it had ports and oil and containers of course, maersk line now just going back to maersk line jettisoning off those assets look at this this is a stock which has been under huge pressure. last year enormous losses. 1$1.9 billion losses. back in may, bang. a big rally. why did they have a big rally? they've seen better demand for containers in the first quarter of this year than they've seen for years. they have one of their biggest losses in years last year as well first quarter demand jumped. that's why we saw the price moving up as well. company breaking itself up i will hide that block so you can't see it behind me
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the company is breaking itself up that's a positive scene for investors. but it's not particularly cheap. you're asked to pay 20 times forward on this one. just a metaphor. if the company says it is transforming itself, then we see the big uptick in the pe as well the analysts like this one strong buyers fall buyers 11. holders 9. they sellers out there on this stock. i wouldn't normally do this but i'm doing oil two days in a row. it's interesting we had the api data. now we have the eia data it doesn't make pretty reading look at the price of brent and light sweet crude. they've been as low as 0.6%, 0.7% lower as we've seen time and time again, watch the u.s. open, when u.s. traders get in there, see if they will pressure it crude trading at some of the lowest levels in months. this is despite the fact that
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opec has renewed that strategy what happened in this latest bit of data? i thought it was damming because, correct me if i'm wrong, we had memorial day that was the end of may. that's supposed to be when the driving season starts. the demand is not there at the moment that's why with the lackluster demand, the refiners, the crack spreads they make between the crude and processed product they are feeling the pinch. there are big inventories left, right and center gasoline stocks are rising crude inventories are falling less than expected very disappointing demand side and added to that, the ei is saying this shale rally, it's happening. it's happening with some force it's going to put more oil on the market in 2017 and 2018. talking of oil issues, a dispute over where to list seems to be slowing down the planned ipo of saudi aramco
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the "wall street journal" is reporting that powerful saudi officials differ on whether to list in london or new york company executives reportedly want to list on the london stock exchange but key saudi royals prefer the nyc both are fighting hard for the listing which could value it at 2 trillion u.s. dollars. big questions whether you value that on $40 oil or $60 oil. emanuel macron is calling on gulf states to solve their nishnish issues qatar's neighbor's have cut travel ties and accused it of supporting terror. macron said he will hold talks with leaders of saudi arabia, uae and qatar. the qatari financial minister said his economy would survive the crisis and not be the only loser >> qatar is a very strong economy and a big economy. i think if we're going to lose a dollar, they will lose a dollar.
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sky italia is the winner in the rights to broadcast champions league in italy. that's a blow to mediaset which won the last auction to air europe's biggest level competition in 2014. let's take a break in up a. >> caller: moments time. just to say we'll have a big focus on retail after that what i'll do, i will look at some of the threats on both sides of the atlantic with our guest to the traditional retailers. 'cause different sides of you struggle with which ones to make. well, what if you kept making good ones? then?
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a warm welcome to "street signs. i'm steve sedgwick a sea of red at the european equity open. basic resources stocks leading the losses, whilst oil prices turn low once again. the federal reserve moving to normalize, hiking rates for the second time this year and unveiling plans to trim its balance sheet despite another soft reading on inflation. >> we do have the strengthening economy with policy accommodative all that we're doing in raising rates is
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moving -- removing a bit of accommodation heading towards a neutral pace >> china sees foreign direct investments falling for a second straight month this as questions survive the insurance giant anbang challenge abilities to attract funds from abroad. and u.s. special council robert mueller reportedly opens an investigation into whether president trump attempted to obstruct justice we've had weak wage growth data yesterday, strong inflation figures the previous day what does that mean for retail sales? not good uk consumer is not spending money. maybe it's good. maybe you're saving. retail sales down 1.2% month on month in may versus april up 2.5% i should say this is a volatile
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series look at the pound. down 0.4%, hitting that 1.27 handle reuters was for negative 0.8 of 1% figure. we underperformed that given the election, is anyone surprised by this? let's look at the may retail sales figure, year on year up 0.9% the annualized figure from april is up 4.2% the poll is for is.7%. this is the joint weakest figure year on year growth rate since april 2013 according to the oms i will go through a few more it's interesting increased retail prices across all sectors are a significant factor in slowing growth of sales in may here's how it went retailers originally got concerned about inflation. they tried hard to not pass that on to the consumers in order to gain market share. now they're saying there's not a lot to do about this we can't defend market share
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we have pressures against inflation basis, let's up our prices you have increased retail prices across all sectors maybe they're throwing in the towel on the price war that would be interesting to speak to our guests in a couple of seconds about all are a significant factor in slowing growth of sales in may downward pressure on sales from all store types except fuel in may. that's very interesting. as i say, and underwhelming set of data on the back of underwhelming average earnings growth let's face it, interesting inflation data, getting around 3% which we talked about with gemma, which does not seem to alter much boe action. let's look at the foreign exchange market and see how sterling is trading. 1.2711 the european markets, see whether that had effect on the broader market sterling trading 1.2712. we'll get you those markets as
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we speak to our next guest i've come to the wall, good morning, stacy >> good morning. >> this is stacy widlich, cnbc retail analyst and sw retail advisers i want to talk about both sides of the atlantic if i may a war is raging in the uk supermarket sector the big four retailers, tess koshgs mo tesco,facing increasing competition so it's setting the scene for a tough market what i've got here, you can see, the market shares of the big players. tesco coming in with 28% sainsbury at 15.9. ocado, audi, lidl picking up market share you heard my analysis. you give a bette interpretation >> i think the story aldi and lidl they gained in popular tichlt
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peop popularity people were look for bargains and now gaining share. we're looking at them having 16% to 20% market share over the next several years in this sector who loses? the big four that's not going to change >> in terms of investors, i want to draw attention to this wall on the left as well. we have sainsbury's trading on 13 times a low valuation. the ones that amaze me, the next three, tesco, morrison, recovery plays. dave lewis at tesco and the morrisons recovery play. the markets is having yvaluing w on a recovery, whether it's happening or not >> yes i would throw marks and spencer into that. these are turnaround stories, but we're not seeing the turnaround i would argue with aldi and lidl
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continuing to battle, we are looking at multiples potentially too big of a premium >> one of the things that irks me, the valuation of a retailer online, as opposed to an online technology company that does retail look at ocado. it is trading at 140 times forward. if you're a technology company doing retail, you have a ten times multiple or eight or nine times multiple on your valuation. ocado is good, but is it that good >> seems outrageous that you look at the online pure plays and say, okay, how can you possibly assign such a multiple here it's about expectations and about the street looking and saying who is going to win at the end of the day here. the online pure plays are certainly where the street is looking. >> in terms of who will be the ultimate winner in the united kingdom, is there a clear name
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you can say, this one is getting it right >> sainsbury is making progress here but aldi and lidl are nipping at the heels of the big guys it will continue to lead to price wars and erosion of margins in the sector. >> talking about price wars, let's switch to the united states that's the uk story. it's the same thing. i heard a story about doug mcmillan getting all his wholesalers down to arkansas and saying across the board i need 15% off. whether doug can do that, and doug is a talented guy, but he has that and he's going to have this as well going after more market, and aldi and lidl growing market share. left right an center for doug and traditional retailers, this is tough >> doug has done an amazing job.
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>> in the states you are seeing a price war. target already suggested they are going after a price war. and today lidl is opening its first store in the states. crowing ser reportikroger is res today and they're at risk. walmart, too >> when i look at the traditional names, not just wholesaling groceries, i'm talking about department stores. i'm looking at sears, nordstrom, macy's, i'm seeing pain, pain to the left pain to the right. it makes the uk retail story not look so bad. are they in terminal decline >> the street is looking for about 20%, 25% mall reduction in the footprint. i'm calling for 40%. >> that's a cataclysm. >> not just the retailers, they can adapt. for holders of property development assets, cre across
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the board which has a retail exposure, that's the chiming of a huge bell. >> it's a disaster of the reits. we've seen reits take it on the chin traffic declining in double digit rates. the uk, as you said, looks like disneyland compared to the united states now. i think we need more store closures here. and the price wars, whether it's in apparel or grocery, it's just continuing you'll see margins continue to come down in the sector. we've already seen about 3,000 stores in the united states close this year alone. >> one thing we have not mentioned, could be the biggest story as well. amazon, first quarter north american sales, $21 billion. i don't know why they're bothering with stores. they're wiping out stores left, right and center when i see amazon is opening a book retailer, physical bricks and retailer what the -- they took out the book sellers, now they're putting them back in
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jeff bezos won't stop until he rules the word >> he is not stopping. and you don't need sales people, so you have to be concerned about employment down the road some of the test stores, you with walk into with your iphone, they know where you're going and what you'll be >> this was a report a few years ago. adverts following you around in movies, with will smith, that's where they're going? >> that's what they're testing you have to worry about the store and who is in the store down the road in terms of employment at aldi and lidl -- amazon may need no store people, aldi and lidl are operating 6 to 12 people per store which is so lean >> can those robot s moan about the weather as well as a checkout girl. >> they cannot >> stacy, thank you for joining
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me finance ministers meeting in luxembourg, it's not all about the uk and brexit, it's all about greek loans we're live in luxembourg with willem marx after this short break. whoooo.
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unsustainable. it's a ridiculously high level the question is do they carry on paying piecemeal interest payments 179% debt to gdp needs to repay a huge amount in debt in july 7.9 billion. massive disagreement on debt relief i want to break down those debt numbers. treasury bill holders, imf at odds with the ecb and european partners ecb itself, 2.4 billion. isn't it funny we're talking about giving greeks money to pay the same people from the same people grea greece will be at the head of
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discussions today. greece needs a new loan to repay this pile of debt due next month. willem, i hope when historians look back at this, they will think this is as bankers as i thi bonkers as i do now. debt, having to borrow money to pay more people back there is something torturous about this i'm sure the economists understand what's going on, as indeed you do. >> i like to think i do a little bit. there's more than 7 billion due next month that's out of a total of 315 billion euros overall that greece still owes. the disagreement may be about sustainability the europeans have pushed back they will look to see if they will reducethe debts to get th imf involved essentially the imf is saying
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we're not getting involved in the next round of rescues unless you make this more sustainable a lot of european nations say we won't get involved in this res due unle rescue unless the imf does christine lagarde will be here later this afternoon and the finance ministers have to decide whether they can find a compromise, consensus with the european commission, the imf, it's not an easy set of conversations but it may kick the can down the road once again. >> we have to leave it there, thank you very much. theresa may is moving closer to clinching a deal with the democratic unionist party, which would allow her to stay in power. she looked to form a coalition government but talks slowed because of the deadly fire in a london residential tower. tim farron is stepping down as leader of the liberal democrats. his resignation comes after a
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disappointing election performance for the pro eu party. lib dems failed to achieve any increase in support. he is a decent individual, but his religious views are not necessarily synonymous or working with a modern 21 gs centusen21st century party. a difficult conundrum for a decent individual with strong religious views. the british chancellor is still the british chancellor, philip hammond, he will roll out his vision for a more business friendly brexit tonight. he is speaking at the annual mansion house gathering of london's financial elite i'm not there. there had been speculation that prime minister may might replace hammond who is seen as a strong supporter of britain's banking industry 12 people are known to have died in a fire that tore through
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a west london tower block on wednesday. officials are worried that the death toll will rise as the search continues bill neely filed this report >> a nighttime inferno hundreds trapped inside as a 24-story apartment building dissince greats. hundreds of firefighters battling to get them out they signal desperately for help, most had been asleep when the fire began at 1:00 in the morning. >> screaming help, help. all those windows, people are gone >> they pleaded from the upper floors but for many help never arrived. >> the fire just went, took them there's no way they got out. >> reporter: a nightmare caught on one neighbor's cell phone >> there's a family. kids >> reporter: one resident used a flash flight to send an sos.
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>> this guy. this hero. >> reporter: and from inside, one woman filmed her terrifying ordeal >> hello, come here. >> a child was saved and a baby thrown by a woman from a ninth floor window >> the maybe just dropped in a straight line, and the guy just ran forward and the baby fell into his arms. >> the building was eventually renovat renovated. badly say redents by a company that's defending its work. fire fighters are still inside recovering casualties, but then they will investigate residents claims that there was no central fire alarm or sprinkler system that this was a tragedy waiting to happen. the cause still unknown. the death toll say police bound to rise. the london fire brigade's chief says firefighters have reached the top of the tower but
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have not been able to complete a full search of the building because parts of the building are not safe enough to continue the search the u.s. congressman steve scalise remains in critical condition after he and three others were shot at a charity baseball game practice in virginia the gunman, james t. hodgkinson of illinois, died of his wounds after being shot by capitol police jay gray has more on the latest in the investigation and just a warning some footage in this report may be disturbing >> reporter: it was an ambush. >> >> shots being fired. there are people running, possibly victims involved. >> reporter: republican congressman targeted by a lone gunman identified as 66-year-old james hodgkinson
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it happened at a practice for a charity baseball game. >> we were sitting ducks >> reporter: during what witnesses described as a firestorm. >> we need medics. suspect shooting. >> reporter: four people were hit including house majority whip steve scalise whose security team rushed in, along with alexandria police >> the security detail saved a lot of lives. >> reporter: hodgkinson died as a result of wounds in the gun battle tonight we are learning more about the gunman police and federal agents are searching his home outside of st. louis, investigators say he may have been living in a van since march in the area of the attack his social media profile indicates he strongly disliked republican policies and opposed trump. family members describe him as distraught after the election. >> this is an active investigation. details continued to unfold. >> reporter: investigators looking for anything that may help them understand how and why it happened.
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>> the charity baseball game between republicans and democrats is a longstanding tradition. over 100 years it will go on tomorrow as planned at nationals park. mr. trump is reportedly under investigation for possible obstruction of justice the "washington post" reports that special council, robert mueller, is expanding his probe to include the president the report says three top u.s. intelligence officials will be interviewed by mueller's investigators as soon as this week a spokesperson for the president's legal team says the fbi leak of information regarding the president is outrageous, inexcusable and illegal. all right. i'm sure time will tell. james boyer joins us on the line now it should be said you're a critic of the president as well. despite that, no one is coming up with a smoking gun.
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you have the special council, senate intelligence, senate judiciary, house intelligence and house oversight doing the same job, looking at the same material, and they haven't found anything on him yet. >> good morning. that's a fair point but this is an ongoing process it's important to recognize that in many ways the greatest threat to a donald trump presidency is trump himself. his supporters will no doubt say, look, comey had said under investigation that trump himself was not a target of the investigation, which is what the president wanted to hear all along. but by firing comey, the president has opened himself up to the sorts of investigation. once again you see the idea that he himself is the greatest threat to his potential continuation in government >> this is the irony if they don't find a smoking gun or anything that he's done to basically have contact with the russians during the whole election process, they could
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find the fact that he's been obstructing to support allies rather than anything else? >> you're right. one of the interesting things about the special counsel that bill clinton found in the 1990s is that they tend to become a roving search light. they start off looking in one area, and that level of investigation can quickly spread depending on circumstances we are seeing this here. whilst it is entirely possible that donald trump himself had nothing to do with russians directly during the campaign it's possible that his attempt to coerce or ask people to say certain things at this stage could well lead to him getting into deep trouble. that's what happened with nixon. the old adage of it's not the crime that gets you into the trouble, it's the attempt to cover up afterwards. >> there's no evidence that the president will fire the special counsel, that was a myth by msn, wasn't t mainstream media? >> i guess donald trump would
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suggest that cnbc themselves are part of mainstream media let's be honest about this with regards to this -- there's often no smoke without fire. with regards to anybody who thinks that donald trump will be impeached and removed from office, i would issue a word of caution, which is only that twice in u.s. history has the impreai impeachment process gone through the process and in neither occasion has anyone been removed from office. people say richard nixon walked, he did, but that was not through the full implementation of the impeachment process. >> have to leave it there, james. thanks for joining us. i look forward to seeing you around the set of course cnbc is part of msn, we just like to think of ourselves as unbiased. the top upcoming trends on social media this morning.
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let's see what stories you are all searching. one of the top ones is australia's prime minister under fire for recording himself making fun of president trump in an audio leaked by australian media. malcolm turnbull does a mocking trump impersonation of what was supposed to be an off the record event. he joked that polls are so easy to win i have this russian guy, dot dot dot. we'll take a short break here on cnbc we'll be back with "worldwide exchange" coming up after a very short break. thank you very much indeed for watching "street signs." we'll be back same time same place. up next, "worldwide exchange." [vo] when it comes to investing, 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.
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at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.
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good morning president trump reportedly under investigation for possible obstruction of justice, we're live from washington with the latest stocks point to a lower open after the fed hikes interest rates again. a deeper dive into the decision coming up. and crude realities, oil prices hover near a seven-month low on supply concerns more on that move straight ahe it's thursday, june 15, 2017, "worldwide exchange" begins right now. ♪

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