Skip to main content

tv   Worldwide Exchange  CNBC  October 10, 2017 5:00am-6:00am EDT

5:00 am
it's now wall street pointing to a higher open as earnings and the economy come into focus. breaking overnight, wildfires turn deadly in northern california as hundreds of homes are destroyed and it's decision day for procter & gamble as the largest proxy battle ever comes to a head it's tuesday, october 10, 2017, "worldwide exchange" begins right now. ♪ good morning very warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost.
5:01 am
>> i'm seema mody in for sara eisen. good to be by your side. >> i was off for two days, good to be back >> good to have you. >> the market off to some declines, 0.1% we have had highs in volatility sings mid-september, but still low from historical standards. gains of over 1% last week so yesterday's declines in perspective there. this morning we are pointing higher ten-year treasury note for you, last week finished at 2.37%, just slipped afraction this week to 2.35 >> looking at early trade, i guess we'll start with asian equities where japan has been on a nice run up 0.6% closing higher for the day it's now higher by 9% so far this year. the japanese nikkei trading at
5:02 am
its highest level since june of 2015 a strong day across the board for asia hang seng, shanghai composite and the kospi are all supporting gains ahead of china's big political event next week, the party congress on october 18th early trade in europe, better than expected data out of italy. september was the best month for italy's industrial sector. the ftse mib not helping the equity market. the xetra dax which did hit a record high yesterday, slightly lower today. lvmh seen raising their forecast, that stock at a record high. an update on the situation in catalonia coming up in a few moments. oil prices, which were up about 0.6% yesterday, up a half percent today, still remain below $50. 49.8 for wti gold prices up nearly a percent.
5:03 am
up a half percent or so today. 1291 the price there dollar board which we did see slightly lower yesterday, it's a bit lower today by a third of a percent against the euro the pound a bit less than that against the yen. 0.2. it's a soft dollar day the yuan to round things off has moved significantly, up 1.6% since early october. this is essentially meant to be a pegged currency. 1.6% is a decent move. that's the dollar as you can see moving lower against the yuan in the last couple of weeks that's a month-long chart. it rose significantly in september. it's falling in october. sorry, the yuan fell in september, rising back this month. something to keep an eye on. a managed move china doing it during the golden week last week when markets were closed >> turning to today's wall
5:04 am
street agenda the national federation for independent business leases its monthly small business survey, and the monthly jolt survey at 10:00 a.m. we'll hear from a pair of fed officials, neel kashkari and dallas fed president bob kaplan. the big focus today is in cincinnati as the largest proxy fight ever comes to a head at 9:00 a.m. eastern, procter & gamble will vote on whether knelt shonelson peltz should get on the board safer sar will ha sara eisen will have an interview with nelson peltz at 10:00 a.m., and david taylor at 11:00 a.m. we are following a developing story out of california at least ten people are dead and hundreds of homes and other structures destroyed as a string of wildfires sweep through california's wine country. thousands of residents have been
5:05 am
forced to evacuate governor jerry brown declared a state of emergency in eight counties we'll have a live report from the scene in just a few minutes. those wildfires are tearing through the heart of california's wine country. that could have a big impact on the state's wine industry. landon dowdy has that angle. >> good morning. consumers are likely to feel the effects of the wildfires for what could be years. the fires hit during the grape harvest season during napa and sonoma counties, several vineyards are burned or threatened while 75% of the region's grapes have been picked, most of the merlot and cabernet crop are still on the vine. california produces about 85% of the nation's wine and generated $34 billion in sales last year wine and tourism account for about 100,000 jobs in napa and sonoma and generate about $13 billion year to each county's economy.
5:06 am
constellation brands owns several napa wine brands, and australia's treasury wine estates has holdings in california constellation brands is unchanged in early trading >> thank you very much for that. other stocks to watch, shares of tokyo electric power are lower after a japanese court ordered the company and the government to pay 4$4.5 million in damages following the 2011 fukushima nuclear disaster shares of tepco fell nearly 1% in trading overnight. samsung having its best day in more than a year. investors expect the tech giant to announce record profits for its memory chip. the korean index up 1.6% samsung has a nearly 20% weighting in that index. keep an eye on shares of sky and 21st century fox there will be a proposed deal examined between the two
5:07 am
companies. there will be a lot of focus politically as well as in a business sense on this in the uk. some more stocks to watch. >> shares of lvmh popping after the luxury retailer reported better than expected revenues for the third quarter. the company behind brands like louis vitton and christian dior says revenues rose 12% from a year earlier shares of lvmh up 2% on the day. aig said they woucould see$3 billion from the hurricanes. hurricane harvey with the most expensive. losses from maria estimated between 600 million and 7$700 million million. bae is expected to announce job cuts today in northern england where the company makes its euro fighter typhoon jet that stock down 1.4%. keeping an eye on shares of
5:08 am
walmart. the retailer holding its annual analyst day today. joining us on the cnbc news line is jan kniffin good morning thanks for joining us. i believe you're joining us from a retail conference in europe. but let's start by talking about walmart this morning you say in your notes that walmart never looked better than they do today. i think you're talking about the stores themselves, but do you mean that about the stock price as well? >> i don't know if they look better than ever as far as the stock price but they still look good i think walmart is a buy they're finally competing directly with amazon and recognize they have to they realize what they have to do to make the store look better i walk stores through the midwest for them, target and whole foods to compare i don't think walmart ever looked better in food and certainly never better in fresh food so they got their act together in the store
5:09 am
i think was a great purchase no matter what anyone else is saying i think they have to do that and continue to grow that online business to win. i'm a huge fan of what they're doing. i know it's tough on the roi to get everything you have to do on the side to compete with amazon. i do believe they are playing the game the right way wlafrnlg you a what are you expecting from invy >> i think they'll continue to tell us they'll invest their money in the big stores. they'll continue to tell us they'll invest everything they have to online to be competitive. i'm not sure that's a positive for the stock price but it's a message they have to deliver i would like this to see them say they're pulling the plug sam's, and it's going out on their own, but i don't expect to
5:10 am
hear that today, but that's something i would personally like to hear >> tell us about european retail you're at a conference in europe people have said europe in terms of general stock market looks attractive relative to the u.s what about the retail sector >> that's why i'm here i'm here with 2400 of my cloefts friends s closest friends in copenhagen at shop talk europe they did two in the states and now here retail has come global i have never missed a walmart analyst meeting before but i'm here instead because i think the globalli global look matters today. the themes are not different than in the states yes, we're overstored. yes, it's expensive to go online i'm hearing you have to be online to be competitive i'm hearing that 68% of consumers start their shopping on the mobile app. that's just what's happening worldwide. so european retailers to me are attractive and interesting, but
5:11 am
still fighting the same battle they still have to fight against amazon and alibaba and all the things that are coming online and pure plays, they're all doing it much similarly to the way we are in the states one advantage they have, we're not quite as overstored over here as we are in the states it makes it easier to keep the store growth growing a bit and then transfer a lot of business online and try to do it cost effectively. the hard part is the cost effective part like it is in the states but they're moving in the same direction here. >> jan, thank you very much for joining us jan kniffen joining us. still to come, burning out of control fire crews race to save homes and lives in northern california as massive wildfires tear through the heart of wine country. we're live on the scene with the latest and crisis in catalonia. is today the day we'll get a declaration of independence? we're live in barcelona when
5:12 am
"worldwide exchange" returns risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
5:13 am
it's a warm blanket. it's a bottle of clean water. it's a roof and a bed. it's knowing someone cares. it's feeling safe. it's a today that's better than yesterday. every dollar you can spare helps so much more than you can imagine. please donate now to help people affected by hurricane harvey. your help is urgently needed.
5:14 am
or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to good morning welcome back to "worldwide exchange," especially our viewers in shanghai. let's give you an update on the market update. yesterday we had small declines. we'll scrub that out this morning with the futures up about 30 points on the dow the nasdaq leading the pack, up about 11 points. let's look at oil prices, they
5:15 am
are still below 50 bucks this morning on wti 49.9, up 0.6% adding to the same amount of gains yesterday. late last week, we slipped below 50 where we remain this morning. we are continuing to follow a developing story out of northern california where deadly wildfires are burning out of control. jennif jennifer bjorklund is live in napa >> reporter: here in napa two of the deaths in this fire happened in this neighborhood near silverado country club an elderly couple. he was 100, she was 99 they just celebrated 75 years together we have ten people confirmed dead but at least 100 missing persons reports. so they do expect those fatality numbers to rise. that is more bad news coming out of the fire lines.
5:16 am
73,000 acres have burned in the fire 15 homes and businesses including a 265-bed hilton hotel in santa rosa. sort of on the north part of the downtown a lot of people who moved into town away from the outer reaches of wine country when they were burned out of their homes a couple years ago are being burned out again firefighters here on the ground and on the air are taxed with these fires burning around us, also in southern california where resources have split for the fire in anaheim that's burned 6,000 acres and several homes there. the weather calmed down overnight and is nothing like it was sunday to monday where we had single digit humidity and erratic, gusty winds a confluence of dry, hot weather where the fire explodes in the middle of the night. it's very rare they say we won't see conditions like that for another 50 years, it's such an unusual occurrence.
5:17 am
that's the good news the bad news is this firefight is far from over an it's already being called the worst northern california fire since the oakland hills fire back in 1991. back to you. >> jennifer, thank you very much for that switching focus to spain the country's worst political crisis in decades set to come to a head today as the catalan president plans to visit parliament with his plan for independence willem marxhas the latest from barcelona. good morning >> good morning. overnight we heard from the mayor of the city of barcelona saying she was worried that any declaration of independence today would lead to great social division she lays the blame on the spanish prime minister, mariano rajoy. early this morning we saw armed police putting up barricades around the spanish parliament. they are expecting carles puigdemont, the leader of the
5:18 am
catalan assembly will be speaking to that assembly later on today lawmakers we talked to have taken to the parliament under armed guard. there's huge security around that big questions about what it is carles puigdemont will say to that assembly of 135 catalan deputies whether he will make a unilateral declaration of independence or back off from pressure from small businesses and many who say they want to remain a part of spain that will happen at about 6:00 local time, about midday on the east coast big, important day for catalonia's future no one is sure what happens next >> what would happen next if he does try to unilaterally declare independence one thing we talked about is the army being sent in is that something that would be particularly worrying for the catalans and for markets in spain? >> well, already there's thousands of spanish national
5:19 am
police and some military forces here in barcelona and across the region what would happen likely is mariano rajoy would suspend the catalan autonomy that would mean direct control of local police forces if that's possible it would mean discoving the catalan assembly calling for fresh elections and mean that carles puigdemont and many separatist leaders around him are momentarily out of a job it would take the wind out of their sails. that's something that rajoy is being warned against by members of his own party and also political opponents in madrid. we spoke to a member of the main opposition party in spain. they want more dialogue, eventually a reform of the spanish constitution to allow greater respect and autonomy for catalonia. what will happen at that point is not obvious to anyone here. >> thank you very much coming up on the show, we're headed to washington for the latest on the brewing rift within the republican party.
5:20 am
could it derail the trump rally? we're live in d.c. ahead. as we head to break, here's the national weather forecast from bonnie schneider. good morning temperatures are going to be really cold if your business travel is taking you to the northern plains or the central plains the numbers are in the 20s bundle up. not really the forecast for the rest of the country. business travelers heading to the south especially for cities like atlanta or into new orleans, temperatures are really warm, feeling more like summertime watch out for scattered showers and maybe a thunderstorm into places like chicago. to the west, it's going to be cold today eventually things will get milder look at the forecast, climbing back into the 70s for kansas and colorado after snow yesterday in denver temperatures really heating up and staying warm for the rest of the week for norfolk and atlanta. that's a look at your business aver forecast. more "worldwide exchange" when we come back
5:21 am
your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. my dbut now, i take used tometamucil every
5:22 am
it traps and removes the waste that weighs me down, so i feel lighter. try metamucil, and begin to feel what lighter feels like.
5:23 am
the feud between president trump and bob corker doesn't seem to be letting up. tracie potts is in washington for us this morning with the latest >> reporter: good morning. so, it started with some comments last week, went through the weekend with these tweets. now the "new york times" article where senator corker says he thinks what president trump is doing could lead to world war iii. corker is a powerful voice on capitol hill, now that he's not
5:24 am
running for re-election seems he's open for criticizing the president he once supported. republican tennessee senator bob corker one of candidate trump's earliest supporters, no longer a fan. >> i think secretary tillerson, secretary mattis and chief of staff kelly are those people that help separate our country from chaos. >> reporter: he calls the white house adult day care president trump claims corker did not have the guts to run for re-election without his support. >> both ought to cool it. >> the kind of behalf your we saw this weekend is making it more difficult not easier for the president to get his agenda through. >> reporter: president trump needs corker's vote on immigration, taxes and the budget next week >> he will be a big help >> we think on our key agenda items, senator corker's vote will be there. he knows it's important for the people of tennessee.
5:25 am
>> reporter: plus iran president trump wants out of the nuclear deal first stop, corker's foreign relations committee. so that's how this could all end up playing together. the two really need each other, but right now they seem to be in the middle of this viewed, at least a twitter feud that seems to have spilled over it's not just republicans. president trump has targeted republicans before democrats, too they built up good will with president trump, now that seemi he wants congress to pay for the wall and gets built before or in conjunction with dealingimmigra dreamers >> tracie potts, thank you very much for that. still to come a round up of the top stories and a big plea from opec to the u.s and why facebook ceo mark zuckerberg is taking heat for
5:26 am
virtually everything he's doing to help storm averaged puerto rico i love you, basement guest bathroom. your privacy makes you my number 1 place to go number 2. i love you, but sometimes you stink. febreze air effects doesn't just mask, it cleans away odors. because the things you love the most can stink. and try febreze small spaces
5:27 am
to clean away odors for up to 30 days. breathe happy with febreze.
5:28 am
markets now, stocks look poised to pop as oil and earnings take the drivers seat on wall street. the largest ever proxy fight comes to a head today. will the p&g board give thee iso
5:29 am
seduce amazon one tweet at a time it's tuesday, october 10, 2017, you're watching "worldwide exchange" on cnbc. good morning a warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm seema mody in for sara eisen today. >> let's get to the top story this morning out of california at least ten people are dead, hundreds of hopes ames and strus destroyed as a string of wildfires sweep through california's wine country. thousands have been forced to evacuate the governor declared a state of emergency in eight counties including nap a and is a gnome machlt we' sonoma. it was a down day for wall street yesterday the nasdaq turning in its first
5:30 am
negative day in ten. small caps having their worst day since september 5th. once again, it was those rate-sensitive sectors under pressure telecom, the worst performing sector yesterday and for the year it was the worst. ge had its worst day in more than a year in news of a leadership shakeup right now futures pointing to a higher oechlt the dow pen. let's look at the ten-year yield, the bond market yesterday was closed for columbus day. on tuesday, bond market back open yields are at 2.35% on the ten-year asian equities for you, a positive session there we've seen the biggest gains coming in the korean market, up 1.6% that's because of a big pop for samsung. a positive session across the board. let's look at european trade which is for the most part positive the uk market slightly --
5:31 am
earlier it was the other way around the ftse 100 slightly higher germany down 0.2%. let's look at currencies the big story yesterday was the move in the turkish lira on the news that the united states and turkey were suspending visa services we saw a big move in the turkish lira to the down side. back up today. the u.s. dollar is lower against the yen, 112 the euro at 1.17, it's been holding on to that level higher against the dollar by 0.3% look at gold gaining around 1% in yesterday's trade. we'll see if that trend is continuing on here on tuesday. it's higher by $6. $1,291 oil markets in focus wti crude higher by 0.6%, $49.88
5:32 am
ice brent crude at $56.15. the dollar board, let's look at how the dollar -- we just got to that speaking of currentries, keeping a close eye on bitcoin russia's central banker announcing today it will block access to websites of exchanges that offer cryptocurrencies like bitcoin. we've seen similar moves from the chinese central bank trying to crack down on bitcoin trading. bitcoin right now higher about $8 this move from russia so far not impacting the price of bitcoin. opec's secretary-general calling on shale producers to cap oil supply in an interview earlier today he warned extraordinary measures may be need to be taken next year to reestablish a balanced market in the long run >> companies and financing companies and credit organizations should begin to
5:33 am
shift funding into the long-term projects, because this is where the future is. and without that, we may be sowing the seed foos for a fres downturn which would not be in the interest of producers or consumers. >> we are joined by helena this morning. we spoke last week about this extraordinary aleenl jalegiancee russians and opec, is it plausible that the u.s. could join that? >> i do not see the u.s. joining. that is the problem for opec you can negotiate with russia and vladimir putin can tell energy corporates to sit down their barrels, but in the case of the united states, they're not going to be able to negotiate with individual u.s.
5:34 am
producers. so the concern for someone like barkindo is once you get over $50 wti, you see this next wave of u.s. producer hedging that is the iceberg for i'll oi markets. >> we saw an interesting meeting last week between the saudi king and president vladimir putinr reaffirming their global i lineline alliance could that help oil prices >> absolutely. that was catalyst for getting the deal done in 2016. i think putin's statement that the oil cuts could be extended through the end of to 18 is providing a floor right now in the oil markets. there's been a question mark will russia exit the cooperation. now they will be in it for the rest of the year
5:35 am
>> this is a head wind for macro traders who trade oil. it's not a fundamental driver as the u.s. producer story. we look at what is the serious physical story that impacts the rebalancing, it's u.s. production what will the u.s. producers be thinking clearly you don't think the private market people are going to join an allegiance with the likes of opec. but in their own interest should they try to limit supply a bit trying to get things back above 50 >> you have ceos coming out saying we should not derail this recovery in oil prices so i do think there's some discussion in boardrooms, but it's the challenge of you have multiple u.s. producers where sovereign countries who have one person to tell the companies to sit down that's why it's so important, saudi arabia's willingness to continue with the cuts, their willingness to reduce exports,
5:36 am
to visibly show their commitment to the deal. what about iran? that's been a part of the discussion as well some reports that the president will de-certify the iranian nuclear deal what does that mean for the iranian imports? this is the real oil story what happens this week president trump by the 15th has toe to make a decision on whether to decertify iran or not? if he decertifies them, it goes to congress. congress has the option to reinstate sanctions on iran's energy exports >> remind us how much are they exporting? >> iran has come back by a million barrels. if you had a situation where yof sanctions, people would look at that number and say could that come down. if the u.s. is going alone, will you have that similar impact in terms of reducing iranian vol
5:37 am
yim umes >> thank you very much >> thanks for having me. now it's time for top trending stories the second trailer for st"star wars" the last jedi is getting buzz on social media the trailer debuting during monday night football on espn. hours before the trailer was released, a new poster for the film was revealed. it features all the fan favorite characters including the late carrie fisher's character. >> i watched this on the way in. >> did you >> i was never growing up a "star wars" fan. i feel like the last couple incarnations have been awesome >> same. i just saw the last one, but i had not seen the full series either way, looking forward to it >> good slew of british actors they've been using >> that's true. carl's jr. is trying to get am saab'azon amazon's attention they tweeted hey, for the next 24 hours we will be sharing one
5:38 am
of our big ideas every hour on the hour, #amazonbuyus amo among the 24 ideas, a special drive-in restaurant, and parking for jeff bezos it seems a bit desperate >> i like it how often would you see a company say hey, look at us, you should buy us. carl jr.'s for a while has been provocative with their statements, even the commercials. i like it. it's different >> treat them mean to keep them keen this is the opposite approach. >> this is true. mark zuckerberg taking heat for his virtual reality tour of puerto rico. a vr version of zuckerberg visited the country yesterday to talk about facebook's hurricane efforts.
5:39 am
the avatar con guducted a brief live 360 trip. some are calling the ceo a heartless billionaire and accusing him of exploiting this disaster >> it is hard for them to escape the negative pr at the moment. this is the different story from the russian developments and election impact that they have had. but certainly it's been a tough couple of weeks. twitter developing a new book marking feature to save tweets it's known as save for later, it will allow users to privately save tweets for later. this after the test rollout of 280 character tweets last month. >> i like this >> but -- >> you can put together a portfolio of the tweets you love, whether it's a quote or someone important in your life >> but not to read later that's what favoriting or retweeting is for. only 140 characters, you don't
5:40 am
need to come back and read it later. >> i don't know if it's about you not being able to read it, just saving it for later >> that's what the other -- that's what retweets and favorites are. >> liking it >> yeah. >> liking, favorites we'll see if it works. i guess it's useful if there's a link to a longer article coming up, why one op-ed columnist thinks gary cohn and steve mnuchin's image could be in danger. our must-reads are coming up
5:41 am
you won't see these folks at the post office. they have businesses to run. they have passions to pursue. how do they avoid trips to the post office? mail letters, ship packages, all the services of the post office right on your computer. get a 4 week trial, plus $100 in extras including postage and a digital scale. go to and never go to the post office again.
5:42 am
5:43 am
good morning welcome back to "worldwide exchange," i'm wilfred frost along with seema mody. my must-read is from the "new york times." gary cohn and steven mnuchin risk their reputations in the early stages of promoting trump's tax cut they made a series of statements that are blatantly false. not merely shadings of truth or questionable claims, but outright up is down falsehoods mocked by various fact checkers. the statements make the two look more like president trump press secretaries than business executives whom members of congress can trust one is saying the rich won't get a tax cut but also the way they frame this as being deficit nut
5:44 am
ro neutral, which goes against is thought. clearly those two stood out through earlier parts of the administration, now saying credibility is in question >> my pick is in the "new york times. it's titled harvey weinstein and the silence of the men a liberal leaning industry we have been quick to condemn bill o'reilly, roger ailes and the president, we do not accept sexual abuse as locker room talk, so why the deafening silence particularly from the industry's men when one of our own is outed as having a nasty taste for humiliating and traumatizing women an opportunity for some from the
5:45 am
media sector to come out and talk about this. >> the team is getting ready for "squawk box. becky joins us right now >> good to see both of you guys. we have a lot to talk about. that procter & gamble vote coming up. we will talk about what to expect today we find out if nelson peltz gets his seat or not we'll also be talking about taxes and politics big on the agenda this morning we'll be joined by representative ron desantos from florida. he will talk about what he sees happening on tax and happening in foreign policy including with north korea. when it comes to foreign policy, we have p.j. crowley on today. he will talk about his new book "red line american foreign policy in a time of fractured politics and failing states. we'll dig through a lot of issues covered in foreign policy, not just north korea, what's happening in iran and beyond and then the fed, we talk about it every single morning here it's a huge topic of discussion
5:46 am
what will happen not only with the next meeting but what happens when janet yellen's term is up. this morning greg epps will be joining us he had a great column last week, laid out the different odds of what can happen with this new fed choice basically it's binary decision is it going to be somebody who continues in janet yellen's way of thinking, someone like janet yellen herself, or someone who will totally up end this institution. someone like a kevin warsh steve liesman will come into that conversation. and by the way, wove been talking about hollywood. we have sarah michelle gellar joining us today the actress sitting down with us to talk about not just what's happening in hollywood but about being a mompraneur she's been developing a new line of organic baking things for kids, so you can sit down with your kids, have baking time,
5:47 am
continuing craft time. she's not just a celebrity face for this, she's been putting in the research on it and is a true entrepreneur we'll talk about her what's more difficult, hollywood or entrepreneurism. >> or mumpreneur as i would say. we look forward to that. "squawk box" coming up in about 13 minutes coming up on "worldwide exchange," the boardroom battle everyone will be buzzing about today. sara eisen is live at procter & gamble's headquarters where the largest proxy fight ever will come to a head that's when rurweetn after this short break.
5:48 am
i just saved thousands on my loan at in less than a minute, i found out how much home i can afford. i like how you shop for loans the same way you shop for flights online. i didn't realize at lendingtree
5:49 am
you can save money on almost any sort of loan. i consolidated my credit card debt with a personal loan. i found a new credit card with 0% interest for 15 months. you just shop, compare, and save. and it's all free. go to lendingtree right now and start saving. . welcome back breaking news out of california. the death toll has risen to 11 as devastating wildfires tear across the northern part of that state. we'll bring you updates as we get them. it's going to be a contentious day at procter &
5:50 am
gamble headquarters in cincinnati shareholders will determine the outcome of the largest ever proxy fight between the consumer goods giant and trian partner's nelson peltz a vote goes down at 9:00 a.m. eastern. sara eisen is there live at p&g hq with all the details we need to know what will we watch >> good morning. well, certainly that months-long very costly and sometimes ugly proxy battle does come to a head this morning shareholder also arrive hes wilp plaza in downtown cincinnati where they will cast their final vote get a chance to question some executives, board members will be here as well and so will nelson peltz at issue is whether to add peltz to procter & gamble's board. he has been fighting it. p&g has been fighting back hard. peltz, who has a long history of
5:51 am
being a board member, investor in consumer companies, particularly the food business, says p&g is not moving fast enough with its transformation they should reduce structure into three global business units to be more focused they should pursue smaller brands they should be more aggressive when it comes to cost cuts and m&a. and they should get rid of their insular culture. david taylor, the ceo of p&g and a lifer at the company along with the backing of the board and a lot of former p&g ceos has fought back that the company is two years into his tenure. it's outperformed since taylor took the reins, and that it is just starting to see the fruits of its transformation. this company had at its peak more than 100 brands it slimmed down into less than 60 so it says it is focused it's starting to see results one thing helping p&g is the weakness of the dollar it is a very global company. but shareholder also have their
5:52 am
say. a few things here as far as what to watch 40% of the shareholder base is retail which is way more than the traditional company. a lot has to do with the alum and the people in cincinnati it's considered your duty as a cincinnatian to own p&g stock in your portfolio also some key index funds here to watch they're considered the swing votes. institutional investors as well. three proxy advisory firms all came out in favor of peltz but the question is can p&g successfully sway those index funds and its large retail base? we'll find out later in the morning. we'll talk to the two men at center of the battle, ceo and chairman david taylor of p&g, nelson peltz himself of trian. it's all going in a few hours.
5:53 am
>> all getting going, and just a huge vote with two massive interviews to follow look forward to that >> thank you let's continue to discuss markets. joining us now is steven englander head of research and strategy at rafiki strategy. let's continue the discussion around activism. what are your thoughts on activists playing in today's market they had a larger role in 201 0 and 2016, what do you make of their presence in the equity market this year >> i think they're always going to be play an important role the u.s. market is probably not the market that needs them the most plenty of overseas markets could benefit from their presence. also right now the big debate in the u.s. market is not activist versus not activist, it's whether the economic recovery and the profits rally can continue that's driven by much bigger
5:54 am
structural forces. they're there and they're important, but not a major factor >> steven, u.s. dollar has come back a little bit over the last couple of weeks. four weeks in a row of gains after a soft start to the year what's the driving force for that in your eyes? is it the currency pairs on the other side or is the u.s. dollar meaningfully moving higher because of the fed >> it's moving higher because of the fed. not much happening on the other side we have not heard anything from japan or europe to justify the weakness on the u.s. side, before the last fomc there was a 45%, 55% chance priced in of a december hike now an 80% chance. the fed seems to want the hike i think the data may or may not be supportive. it will be hard to tell because of the hurricanes. the 80% the market priced in has propelled the dollar but it's too high considering we're months away from the next fomc.
5:55 am
we have some information on the tax reform plan, but some skeptics say it won't get passed in 2017. what are your thoughts. >> i think any tax reform is okay for stocks. the political discussion right now is far more important than the actual discussion of the tax reform the question of whether or not the administration will be able to rally enough republican senators or pick up a couple of democrat senators is the key one. if they can get 52 votes or 50 votes, almost any tax reform will be positive for the market and positive for rates the risk of tax reform is not priced in given how little they have beenaccomplish. >> what's your view on the impact the tax cuts can have on
5:56 am
the debt national debt and the economy? >> i think it will help the economy in the short we'll have a couple years of strong growth. there's no way it will propole growth the way they think. i don't think investment will be as high as proponents think it will that will go up. it's not impossible for the u.s. to sustain what we're talking about is a largely kensian cyclical stimulus that would allow the fed to tighten quick fer quicke if it went through is it a great policy probably not is there a case for it i think you can make a case, it's not an open and shut case >> thank you very much for joining us >> lots to watch today, particularly that p&g vote and those interviews sara has coming
5:57 am
up >> one board, one epic battle. >> two interviews with one epic report at ifor "worldwide exchange." "squawk box" coming up next. re so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.
5:58 am
5:59 am
good morning a showdown in the queen city procter & gamble share holders voting on whether to add nelson peltz to the board and by most accounts the vote will be quite close. a live report from p&g headquarters. breaking overnight, wildfires turn deadly in northern california as hundreds of homes are destroyed and the economy and our purview here, earnings are in focus as u.s. equity futures are pointing to a higher open. it would be the best year since 2013 if we're on track right now to end where we are. a full rundown of today's agenda
6:00 am
on wall street on this tuesday, october 10, 2017, "squawk box" begins right now ♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's look at u.s. equity futures. things are looking slightly higher after yesterday actually watching stocks decline ever so slightly but it was something to watch. the nasdaq was down for the first time in ten sessions down by ten points and the dow and the nasdaq hit record intraday highs before receding and giving back some ground this morning the dow futures are indicated up by 40 points. s&p futures up by four the nasdaq indicated t


info Stream Only

Uploaded by TV Archive on