tv Worldwide Exchange CNBC March 20, 2018 5:00am-6:00am EDT
wall street pointing to a higher open following yesterday's tech-fueled selloff. the fallout grows. facebook shares under pressure again this morning following that damaging privacy scandal. full market reaction ahead. and new information into that deadly uber self-driving car crash. those details coming up. it's tuesday, march 20, 2018 "worldwide exchange" begins right now. ♪ good morning welcome to "worldwide exchange" here on cnbc
i'm dominic chu. >> i'm seema mody. >> here's the five big things you need to know about this morning. wall street is rebounding following yesterday's selloff. right now the dow is slated to open up about 50 points, the s&p by 6 facebook shares holding in the red. we're getting reports that the company will hold an emergency meeting with employees later today. more details on this developing story coming up. police in arizona say uber's self-driving car is likely not at fault in a fatal crash that happened over the weekend. a 49-year-old woman was killed sunday after the self-driving volvo suv struck her outside of phoenix. the world's largest oil company is walking back plans for a massive ipo. saudi aramco is expected to list public shares in saudi arabia only that ipo could happen by the end of this year. the fed is kicking off a
two-day policy meeting today in washington, d.c. investors are widely expecting a rate hike. we'll know more when the fed announces its rate decision tomorrow afternoon let's check on global markets following yesterday's selloff. interestingly enough stocks ssn asia not following suit, with the exception of japan, which closed down a half percent stocks in china, south korea closing higher south korea higher by 0.4% let's look at early trade in europe it's a similar story green arrows across the screen german producer prices rose 1.8% in february, but the annual pace of growth slowed from january. that number did miss street estimates. you're looking at the dax higher, but fractionally on the day. we're continuing to follow a developing story on facebook shares holding in the read that the data firm cambridge
analytica harvested information from millions of unsuspecting facebook users here's what we know. the verge is reporting that facebook will hold an emergency meeting with employees later on today to discuss the fallout facebook has hired a digital forensics firm to look at data analytica. we got our first on-camera comments from facebook the company is said to be working to get to the bottom of the issue. >> we are unbelievably outraged and beyond disturbed at the allegations that data was misused or policies have been violated and i can assure you from mark all the way through the entire company we'll pursue this rigorously we will do a broad sweeping investigation and forensic audit to understand what happened, how do we prevent that from going forward. but also we will pursue this to
the fullest extent of the law. cambridge analytica saying it strongly denies claims it misused data on facebook users but this is not the only potential scandal for cambridge analytica. britain's channel 4 aired an expose last night where undercover reporters filmed cambridge analytica's ceo discussing potentially s practis after that report aired, cambridge analytica denied wrongdoing saying it does not use untrue material for any kind
of purpose in a separate facebook piece of news, the company's chief information security officer is reportedly leaving the company this follows reports he's had disagreements over how the social media site should handle the spread of so-called fake news let's unpack all of this with tech investor tim lesko. as we talk about the facebook fallout. there's a half trillion market cap company, that will have an impact should it be considered a bellwether for tech overall? >> i'm not sure it's a bellwether for tech overall. certainly social media platforms have become the new advertising. so i'm not sure we're worried now that people will suddenly stop using facebook. the question is whether advertisers will stop using facebook as a medium for advertising. if that's the case, you look at other players in the space like google where people are spending a lot of money placing ads on
facebook and trying to get at the same information that cambridge analytica is trying to get at the idea that companies are mining facebook for demographic information and user information for posting things people want to see is not that shocking. all of the talk about what's going on is why people advertise on facebook. until we see numbers where we're seeing changes in that momentum, i'm not sure yet we can see how that will affect earnings. at the end of the day earnings are what matter. >> look at the price action in shares of facebook yesterday it closed down 7.9%, nearly a $40 billion market cap lost right there. do you think this move in facebook is justified and despite earnings do you think it will fall lower if we continue to hear more revelations around this data scandal? >> i think as we hear more revelations around the data scandal you could hear more
weakness in the stroke valuation has not really mattered to the company in a long time. if people see earnings degradati degradation, then there's no valuation support for the stock. so serly you will see downward information in the stock if we see more bad information about it >> is it a buying opportunity? if we think earnings are unaffected or major advertisers try knot to make political statements by pulling advertising, you will see earnings remain stable >> one thing about social media these days, it's politically driven as we talk about facebook in the grander scheme of social media, is this a real kind of watershed moment, a big deal for social media outside of just facebook >> i think so. i think what you're looking at here is really a watershed event for personal data.
whether that's personal data that exists on facebook, whether it's information that google is checking from your smartphone or browsing history or things we've talked about in the past few weeks like amazon buying ring doorbells. if they track your data, know where you are, what conversations you're having, those snippets from cambridge analytica about how they'll use that information becomes damaging and may have people look at what they're willing to post online, look at online and what data they want people collecting maybe it is a bit of a wakeup call for the public in general to make sure they're sharing what they want to share. >> tim, great to have you on the show tim lesko, thank you. we're getting analyst reaction to the fallout. arjun kharpal has that arjun? >> i've been getting reaction at the ground of the goldman sachs disruptive technology symposium. i caught up with heath terry of
goldman sachs and i asked him about how facebook is dealing with the fallout from th he said the company could take tips from how google dealt with past skachcandals and that management needs to be on the front foot >> it certainly introduces a level of uncertainty which we have not seen with facebook before every fast growing big company like this ultimately goes through these challenges google had something similar in its early days with click fraud, it was how the company managed through it that cemented the company as the kind of powerful platform that it is and meant a lot to the sustainability for it that's the same here for facebook it will be how they manage through this that will determine their long-term future >> so management has been quiet on the issue so far. no words so far from kreshmark zuckerberg the cfo in facebook reportedly leaving in august, something so far he denied.
this brings up issues about regulation where does regulation go from here according to terry, he thinks we could see closer scrutiny from regulators >> i think it's certain we'll get regulation in this area. the current way that political advertising online is regulated falls under a very narrow loosely regulated category, that's clearly going to change not just for facebook but for everyone it's a question of how far does that go? you have categories of advertising online like pharmaceutical where the level of disclose sure and requirements that go along with that advertising are so onerous that very little is done will political move all the way in that direction? we don't think it's likely but it's something we have to watch. >> could that affect the growth story of facebook if there are onerous regulations that come into play? >> certainly to the extent that any of the
internet companies that these large internet company platforms come under stiffer regulation, it's hard to see how that wouldn't have an impact on growth >> so it's clearly a rocky time for the company. major headwinds in the form of new regulation and what that does to growth shares nosedive on the news of the cambridge analytica scandal. it's up to mark zuckerberg and company to convince investors that the company can get past this issue >> bottom line, seems like analysts are cautious, concerned about this news but no one is changing their price target. is that correct? >> exactly but i think what they still feel is the fundamental growth here is strong. you heard your past analyst say there that he doesn't expect advertisers to jump off the platform and begin making political statements if that's the case they'll continue to be a part of the facebook advertising and gret
story. this is a company with 2 billion users. it's very good at monetizing a lot of the data around its customers. that's something where you will see continued strength for facebook >> arjun, while we have you, we're getting new details on another company and that deadly crash involving an uber self-driving car the "san francisco chronicle" spoke with the local arizona police chief who says uber is likely not responsible for the crash. this is chief silvia moore reportedly saying it's very clear it would have been difficult to avoid this collision in any kind of mode, adding the woman came from the shadows right into the road. uber did suspend all self-driving car tests after the incident the company is issuing a statement saying that our hearts go out to the victim's family. we are fully cooperating with police and local authority there's their investigation of this incident. now this is the first known
pedestrian fatality caused by a self-driving car arjun, what impact do you think this will have on the self-driving car industry? are there ramifications, ripple effects? what are the near and medium term effects of this >> i think it brings to the fore or what that been so far a theoretical debate whose fault is it if a driverless car is involved in an accident you had some comments there from the police over where the incident happened saying that actually it wasn't uber's fault, but that's a debate that will continue is it the technology behind the car? is it the fault of the person supervising the car or the other actor involved in the incident that's still unclear that's a question that i think lawyers and regulators are going to pore over in the short-term, what you will see is a pause of activity i don't think you'll see a blanket ban on testing regulators need to straddle a fine line, i think, to show that
they're not going to blanket ban driverless cars and hamper innovation, but they also need to show they're aware of the risk and perhaps questions of why have some of these driverless car companies been allowed to take to the streets so quickly a lot of the tech companies have been banging the drum and talking about how quickly driverless cars will come to market this may cause a pause in some of those projections >> that's a good point it's not clear if the crash in arizona will lead other companies or state regulators to slow the rollout of self-driving vehicles thank you arjun kharpal. we're just getting started, up next, saudi aramco scaling back its ipo plan ahead of mohammad bin salman's high-stakes sitdown with president trump. that's coming up next. and countdown to shutdown. we're heading to the nation's capital for the latest on budget negotiations you're watching "worldwide exan" cnbc.
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welcome back to "worldwide exchange." let's get you up to speed on market action. we have turned lower in the futures market the dow down by 9 points the nasdaq down by 11. s&p 500 slightly higher. the dow jones is now down for 2018 despite a number of strategists still calling for the stock market to close higher for the year.
we're watching saudi aramco scaling back its plan. it is expected to just list in saudi arabia alone we're also watching some big headlines out of china president trump is preparing to impose a package of $60 billion in annual tariffs against chinese products the tariff package is expected to be unveiled by friday china's premiere is calling the trade deficit unsustainable promising to open more markets to american business the chinese president, xe i jinping has a blunt warning for taiwan saying they will suffer the punishment of history for any attempt at separatism. saudi aramco is expected to list on the saudi stock exchange it's not clear if it will make an international debut
hadley gamble is live in riyadh with the latest. hadley >> good morning. so basically if you're sitting in riyadh, the view of this saudi aramco ipo and what's happening now is not that surprising this is a region known for making massive announcements and not always delivering on those processes. we saw that with the tallest tower in the world, that's three years behind schedule and is not expected to be completed any time soon. the same point we did hear rumblings from the energy minister in recent weeks bringing up the idea there would be questions over litigation, regulations, and calling some things frivolous in terms of what could be brought on board when it comes to listing in new york so there were warning signs here this can't come completely as a surprise to the markets. mohammad bin salman will be meeting with u.s. president
donald trump later today in washington, this is part of an 18-day road show, investment road show. he will be meeting with leaders in silicon valley and with leaders in new york and washington he'll head to boston it's also about cross-cultural exchange and defense and that nuclear issue will be on the table, whether or not the united states will partner with saudi arabia and allowing them to process their own nuclear fuel a lot of buzz around that big trip by the crown prince to the united states. in riyadh we're on the sidelines of a women business forum, the first in saudi arabia's history. 900 delegates, over 300 university students. you have men and women not only networking but also in the audience at the same time. guys >> hadley, stick with us let's talk nor about the saudi crown prince's visit to the united states. joining us now is christopher grandville from ts lombard
great to have you in studio. >> good morning. this >> this uncertainty around the saudi aramco ipo comes as mohammad bin salman has a meeting with president trump do you think this will come up in the meeting or will he stick to national security and geopolitics? >> i think will very much come up there's a state visit planned by mohammad bin salman's father, he's the crown prince, his father is the king of saudi arabia, king salman's trip is planned for later in the year. the political and geopolitical agenda in the middle east and the president trump's strong alignment with saudi will come up at that visit this one is all about economics, finance, the modernization program for the saudi economy. >> it's ironic in a way because you look at the u.s. oil shale boom that we've seen, that pushed the saudis to diversify their economy away from oil and
go through this massive transformation that they're going through now. do you think the access to the shale boom market, the impact it's had in oil prices will be a part of the discussion with president trump? >> you put your finger on this rich irony that the technological change, which allowed the united states to be an exporter of oil, of shale oil, has completely changed the whole picture of the global oil market for the next three years. saudi is in a real bind. it needs to have a high oil price, both for fiscal and its stability imperatives. also for its diversification program. to do that it has to reduce market share it's restraining output. an important link to the chinese theme. saudi is giving up market share in china, allowing u.s. exports to go into china which is helpful for the chinese government showing it can import from the stating and reduce that trade deficit.
a lot of sacrifices by saudi they need to keep that oil price high, not only to get an valuation for saudi aramco but for the whole stability and development program. >> hadley, your thoughts >> i think that's absolutely spot on. when you come to the bigger question in saudi arabia, which is diversifying that economy, how they will manage to bring women into the work force. they understand this has to be women and men participating in the work force going forward and creating jobs. when you look at the numbers of it all, 70% of their population is under the age of 30 so they have to revamp education programs and move quickly to combine those jobs part of that is getting foreign direct investment in this country and a big part is bringing u.s. corporates to saudi arabia that's part of this outreach that he will have to do over the next several days, and he will have to push back on that narrative we heard following the ritz carlton crackdown
>> the biggest ask on iran, what will that be >> it will be to keep pressure on iran in order to stabiliz the region iran is in the role of renegade and rogue. of course the iranians don't see it that way, nor do their allies like russia. >> thanks for the discussion. still much more ahead on "worldwide exchange. we're counting down to the fed a two-day meeting kicks off today. we'll tell you what you need to be watching when we come back. we'll be back after the break. it was my very first car accident.
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i'm frances rivera the manhunt is intensifying for what authorities in austin, techs are catec texas are calling a serial bomber the latest one on sunday night involved a trip war. neighborhoods have been sent into lockdown as authorities try to understand the motive. the weinstein company has filed for bankruptcy in the aftermath of widespread sexual misconduct allegations against harvey weinstein the company says it is releasing all alleged victims and withins from nondisclosure agreements. and yellowstone's famous steam boat geyser roared to life shooting water and steam up to 300 feet high. it is the geyser's first eruption since september of 2014 steam boat is the world's tallest active geyser. that's the latest from new york.
fashion. it's tuesday, march 20, 2018, and you're watching "worldwide exchange" on cnbc. ♪ good morning welcome to "worldwide exchange." i'm dominic chu. >> i'm seema mody. >> let's check on the global markets. we are seeing the futures picture weaken over the course of the past half hour. dow jones futures indicate a slightly lower open at this point if things hold the way they are with the s&p 500 and nasdaq pretty much flat as well. we're also watching shares of facebook holding in the red as the fallout growing from the privacy scandal. we heard from goldman sachs facebook analyst within the past half hour. he says this scandal could impact the social network's growth >> i think it's certain that we'll get regulation in this area the current way that political advertising online is regulated falls under a very narrow, loosely regulated category that's clearly going to change,
not just for facebook but for everyone it's a question of how far does that go? you have categories of advertising online like pharmaceutical where the level of disclosures, the level of requirements that go along with that advertising are so ownneros that very little is down the question is will political move all the way in that direction? we don't think it's likely, but that's something to watch. >> could that affect the growth story of facebook if there are onerous regulations that come into play? >> certainly to the extent that any of the internet companies that these large internet company platforms come under stiffer regulation, it's hard to see how that wouldn't have an impact on growth >> a check on facebook shares now, down 1.25% in the pre-market trade >> let's turn to today's wall street agenda the fed kicks off a two-day policy meeting in washington we'll get a decision on interest rates tomorrow at 2:00 p.m.,
followed by jay powell's first news conference as fed chair one piece of data, philly fed's nonmanufacturing index out at 8:30 a.m. eastern. on the earnings front, fedex reports results after the closing bell as does micron. we're getting new details on that deadly crash involving an uber self-driving car. the "san francisco chronicle" spoke with the local arizona police chief who says uber is likely not responsible for the crash. this is chief silvia moyer reportedly saying it's very clear it would have been difficult to avoid this collision in any kind of mode, adding the woman came from the shadows right into the road. uber did suspend all self-driving car tests after the incident the company issuing a statement saying our hearts go out to the victim's family. we are fully cooperating with police and local authorities in their investigation of this incident this is the first known
pedestrian fatality caused by a self-driving car >> we're following a developing story on saudi aramco. the oil giant is walking back plans for a massive ipo on an international exchange saudi aramco suspected to list public shares on the saudi domestic stock market as soon as the second half of 2018. sources tell cnbc a potential international listing is expected to come later if at all. this news comes ahead of mohammed bin salman's big trip to the united states sticking with the political side of things, the clock is once again ticking on congress lawmakers have until midnight friday to pass a spending bill and avoid another government shutdown ylan mui is live with more will we see it >> there's no deal yet this was supposed to be relatively easy because
lawmakers already agreed to top line funding numbers but there's more than two dozen side deals that have to be hammered they say we're not there yet going forward, there are some open issues including the gateway project. it includes a tunnel between new jersey and new york. that's very important to chuck schumer. the white house however is against it dropped from this deal is a proposal to stabilize the health insurance marketplace. that includes funding for the president's border wall. that's also going in exchange for daca, which is protections for undocumented immigrants brought into the united states president trump appeared to confirm all of this last night when he tweeted the democrats do not want to help daca. would be so easy to make a deal. a spokesperson for the top-ranking democrat on the house appropriations committee says it is long past time to enact bipartisan spending laws
democrats are still working in good faith aides say they are hopeful the final package will be released this morning but there are rules in congress so the earliest the house can vote on any deal is thursday the senate also has its own lengthy process for debate, it is not clear they will make this by friday, so the bottom line here is that the potential for yet another government shutdown is rising. back over to you >> so the house and senate action is needed by midnight friday to avert a government shutdown what do you see happening here you've been following this budget story closely will we get a resolution or not? >> lawmakers seem to be working towards that final deal. the question now is all about process and timing so there are complicated rules that could draw out this process beyond that midnight deadline on friday you're starting to hear people talk about a technical shutdown that lasts into saturday
both house and senate can vote to wave those rules. but again that process is complicated, too so was you're looking at now is a number of final sticking points and simply a complicated process in order to bypass some of the rules of both chambers of the congress >> one of the things -- i spoke to one d.c. insider who said even if the government shuts down, it will reopen it's a forgone conclusion it will happen. it's just how long >> sure. >> is there a sense of numbness by lawmakers do they even fear a government shutdown or the repercussions in the public eye, anything of that sort >> both sides realize that the previous government shutdown was not fruitful it was not helpful for either republicans or for democrats and i think that even more sort of germane to lawmakers desires, they want to leave town. they're facing a recess next week they're supposed to be home in their district, starting to
campaign, connect with voters, so they want to get out of dodge and not face the reputational risk of another government shutdown if we do see one, my expectation is that it would be relatively brief, but lawmakers have not hammered out the final details >> if we do get an agreement, would that pave the way for a house vote on next week? >> an agreement on the spending deal, the earliest house would vote is thursday this week >> thank you very much for that. oracle's third quarter earnings beating forecasts but revenue was shy of estimates sales from the cloud business rose 32% that fell short of expectations. oracle expects cloud revenue to climb 19% to 23% this quarter, which is also below analysts forecast the ceo will be on "squawk alley" for an interview on thursday at 11:00 a.m. eastern.
blackberry is teaming up with microsoft customers can seamlessly use office 365 mobile apps from inside blackberry's secure space. that includes the azure cloud platform and sandridge energy rejected a buyout offer from rival mid states petroleum they offered to buy sandridge last month after carl icahn scuttled sandridge's plan to buy bonanza creek energy roche says a clinical study says one of its drugs plus chemotherapy cut the risk of death in patients with an advanced form of lung cancer, but the combination does not improve overall survival rates a german magazine is reporting that state prosecutors opened a new probe into fresh allegations of market
manipulation by volkswagen the investigation stems from vw's emissions scandal the report says authorities searched the company's headquarters earlier this month seizing documents and computer files. whole foods will host a summit for about 200 suppliers today amid anxiety by some over how its business overhaul will play out under a new owner, amazon.com reuters says the ceo and members of the whole foods marketing and merchandising team will host the meeting. time for the top trending stories. it's dom's favorite segment of the show jeff bezos walking a robot dog built by boston dynamics the amazon boss tweeting taking my new dog for a walk at the mars 2018 conference >> of course he is >> how cute is that dog? i'm not sure if i can call it cute >> my dogs are fuzzier >> much cuter.
normaler "sex and the city" star cynthia nixon has said she will run for governor of new york a newcomer to running for office, she shrewdly penned a classic nyc gripe to the incumbent with the #cuomosmta. she was miranda, right >> yes we'll see if that helps her. >> more left-leaning >> yes disney has announced yet another live action remake this one of the animated classic "lady and the tramp. unlike previous live action remakes, this movie will be released straight to the digital streaming service set to launch in 2019. this is the future now >> how do you remake a classic
"lady and the tramp" is a cartoon and should stay that way. they said that about the jungle book, and i loved that remake. >> i did, too. 55% of american house holes subscribe to at least one video streaming service. this according to a new deloitte survey the average streaming customer subscribes to three services and u.s. consumers spend 2$2.1 billion each month on the subscriptions. can you imagine? $24 billion in revenue for streaming video across america i know i'm guilty. i also work in media i have hulu, i have netflix, i have amazon prime video. i don't know what else is out there. if it's an ott, i will probably look at it. >> it's a sign of the times and gives us good context as to why we're seeing so much m&a in the media and telecom space. >> at&t and time warner going to court this week. still ahead, more fallout from the facebook data scandal
today's must reads are straight ahead. 'll and jowlay powell's big test wetell you what to watch today. "worldwide exchange" will be right back it's a race against time. and keeping it in the right conditions is the best way to get that fish to your plate safely. (dane chauvel) sometimes the product arrives, and the cold chain has been interrupted, and we need to be able to identify where in the cold chain that occurred. (tom villa) we took our world class network, and we developed devices to track environmental conditions. this device allows people to understand what's happening with the location, but also if it's too hot, if it's too cold, if it's been dropped... it's completely unique. (dennis woloshuck) if you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. who knew a tiny sensor could help keep the food chain safe?
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the nasdaq off by 9 points, the nasdaq off by 5. ten-year treasury yields, we are seeing yields move somewhat ahead of this fed meeting today and tomorrow with that rate decision, ten-year treasury note yields, 2.865% >> time for today's must reads my pick is in "the financial times. the story says in the current online environment we all have multiple log-ins, user names, customer i.d.s and data spletred across countless platforms, instead of this approach we should each contain a digital wallet that has pieces of our identities, we can then choose which information to share and when this is important as we discuss the fallout from facebook and this self-regulation is one of
the byproducts of this story, us taking into account of responsible of holding on to our customer data and putting less reliance on central authorities or companies that hold our data. >> or just a bigger microscope placed on data that is being harnessed. >> my pick is called we are to the globalists, we're americans. the post-war preeminence of the united states has been sustainable not only because of military power but also because the global order we shaped is not a zero sum game, but with america and our allies benefiting from security commitments in europe and east asia both america and our trading partners can benefit from relatively free global markets he talks about some efforts that america took in spearheading this idea that we can all collectively benefit if things
happen another view of global trade >> an interesting time given what we're seeing on this tariff front and this dispute that continues to escalate and the retaliation from foreign governments. we're watching the top of the hour here or approaching it, that means that the team at "squawk box" is getting ready. becky quick is in new york, times square at the nasdaq with a look at what's coming up >> good morning. we have so many cool guests coming up, i think i will talk for the next 12 minutes about them >> i love it >> there are some exciting things happening you've been talking about so many things that we'll be talking about this morning one thing you guys have not mentioned today, i think, it's national ag day, national agriculture day. >> how will you celebrate? tell us. >> i have all kinds of ways to celebrate, but the way we'll talk about this on the show is with the national 4h council president and ceo who will be
joined bay form eed by a formert they will talk about agricultural and science technology a lot of things happening in s.t.e.m. and ways to make sure people realize there are scientific advancements being made in agriculture and that kids are aware of this too we have wilbur ross, the commerce secretary, he will join us to talk about all issues trade. i don't know if you were watching the last time that wilbur ross joined us on "squawk" -- >> we were >> he talked about what he saw he thought there would be ca carve-outs coming to the steel and aluminum tariffs he telegraphed that on our show. nobody paid that much attention. nobody got it undill latil latet day, sarah sanders mentioned that in the white house. so wilbur ross knows how the president is feeling about these things you should listen closely about what he has to say about what
comes next with tariffs, potential carve-outs with the eu and china and some trade issues there. and then tell me if you get who this is. patience you must have >> i know who that is. >> who >> tell me again >> that's yoda >> the dark side i sense in you. frank oz will be here today. he's the voice of not only yoda but grover, cookie monster, miss piggy, so many more. he has new movie out "muppet guys talking." he's not doing this the old fashion way with making this the normal ways that hollywood releases things. he is going straight to the consumer he released it on his website. we'll talk about all of these things that's coming up in a bit. >> you should stick to that voice to start the show.
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optimistic about the economy or less optimistic about the economy. one of the things that keep in mind is that back last time when fed chair powell spoke, remember that the atlanta fed in february was forecasting 5.4% economic growth for the first quarter now they're forecasting 1.8% growth clearly the economy momentum that slowed down a bit still healthy, we know that's the first quarter. but nonetheless we have seen a bit of a loss of momentum. >> anthony, good to see you. do you see powell mentioning trade, the onset of tariffs, the potential impact on consumer prices that's been a big part of the economic story when discussing trade disputes escalating and the impact it could have on inflation in the united states >> as you probably know, the federal reserve tries to stay neutral. i remember when i worked as an economist at the fed, everyone always said that the federal reserve is neutral that's still true today. so i think that he will probably steer clear of the trade
situation and focus more on the economic fundamentals, which by the way still remain healthy, despite the fact that you might see a bit of a slowdown relative to last year in the first quarter. the economy still looks good he will talk about the fact that wages are rising, but not really rising that much whenever the labor force participation rate decelerates in a given economic expansion, wages are actually not as strong if you look at every expansion since 1970, this is the expansion with the most deceleration in the labor force participation rate, which is the reason why no one should be shocked that wages, hourly earnings are rising 2.6% >> anthony, speaking of not being shocked, are you happy with the transparency this federal reserve has? should the market be surprised about anything the fed does
going forward? >> no. i think it's been a while. certainly fed chair powell is following in those footsteps of trying to give the financial markets more transparency out there. obviously the financial markets are looking at the ten-year yield. they're less excited about it because we're far away there that nervous point of 3%, but still around 2.86, 2.87. and even research i've done finds that when you look at that ten-year yield, you should not be looking at the nonl naminal , but real yields which are still below significant levels that are a problem for the equity market >> thank you a minute left here, so want to highlight a couple things to watch overall. look at the shares of facebook, they're going to be a huge focus for traders today. something we will keep an eye on >> especially after the 7.9% move we saw yesterday.
down 1% in the premarket $40 billion lost in market value. that does it for us on "worldwide exchange. "squawk box" is next ♪ i made my own way, now it's time to make yours. ♪ ♪ everything is working, working, just like it should ♪ you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone.
futures changing course. giving back big gains after yesterday's tech-fueled selloff. a market rundown is straight ahead. facebook under fire. the fallout grows from that massive data scandal we'll talk privacy fears. and the saudi crown prince is visiting the white house today. we'll tell you what's at stake for saudi/u.s. relations and the middle east. tuesday, march 20, 2018. "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 our best host for the hour is tim freeman. thanks for being here. >> thank you very much for having me. >> joe has a lot of tough questions. get ready on this. let's look at the u.s. futures this morning equity futures we are seeing at this point relative -- a flat line after some big gains that we had seen earlier this morning have been given back this comes after a rough day for the market the dow was down 1.3% yesterday. the s&p down about the same. the nasdaq 1.8% down facebook had its worst day since march of 2014. that stock alone made up 15% of the nasdaq 100's