good morning and hold on to your hats. global markets selling off. the nikkei drops to a seven-week low overnight. oil extends its losses. u.s. futures pointing to a triple-digit downside open. a new rule from the treasury department calls into question the drug maker's mega deal with pfizer. and the once heir apparent to ceo bob iger is leaving the company. it's tuesday, april 5th, 2016, and this is "worldwide exchange".

good morning and welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> and i'm wilfred frost. congratulations this morning to the villanova men's basketball team. if you went to bed early and missed the storybook ending to that game, what a march madness of upsets. the villanova wildcatings defeating the north carolina tarheels with a buzzer beating three-pointer to win the ncaa championship, even more amazing that game winning shot came just seconds after north carolina nailed a three of its own to tie things up. a memorable final five seconds sure to go down in the history books. we'll have much more on that and in sports more widely later this hour. >> one of the best finals ever, people are saying. >> congratulations to mr. cramer. now to the markets. what we are seeing is a pretty sharp selloff, and it is global right now. check out u.s. equity futures. a triple-digit loss at this early hour for the dow. dow futures down 08, s&p futures down 15, nasdaq futures down 30.

nasdaq was the big laggard in the session yesterday. looks like we're doubling those declines this morning. as for the ten-year treasury note yeel, hovering near one-month lows and lower again this morning, below that 1.80 level. we're in the 1.70 region. there's buying of u.s. government debt, pushing yields persistently lower. >> if you look at that chart, we're back at the lows on yield terms as we were at the real depths of negativity in the middle of february. just keep an eye on that, even though equity marks are relatively near the highs of the year. let's have a look at overseas markets. the nikkei down sharply as the stronger yen once again as hit japanese exporters. china managed to buck the trend as stocks closed near a three-month high. we also had two central bank

decisions of note out in asia overnight. india cutting its key interest rate by 25 basis points to 6.5%. that was broadly in line with forecasts. however, they also raised the reverse repo by 25 basis points to 6%. meantime, the australian central bank kept its cash rate steady, as expected. we are seeing a move of the aussie dollar, down by about half a percent against the u.s. dollar. let's show you a look at european trade. the dax is down more than 2% at this hour. some economic data to tell you about. german industrial orders dropping unexpectedly in february due to weaker foreign demand. just in the last hour, we also got march pmi figures for the

numbers for the region. the composite output and services both coming in at 53.1, so still in expansion mode but below flash estimates. perhaps that weaker economic data is weighing on europe, but there is this sense of gloom. >> absolutely right. u.k. services pmi also came out in line with expectations. let's have a look at broader markets as well. oil is one of the big factors weighing on markets today. we have seen commodity names suffer in europe and asia. wti down but only half a percent. 35.25. of course, there's been some skepticism whether that meeting coming up between opec and russia can lead to anything of concrete nature. so oil prices slipping quite far away from that 38.39 level where we've been quite resilient for a while. let's have a look at the dollar as well. some moves of note there. we already mentioned against the yen. we already mentioned against the

aussie dollar as well. a little bit of a move against the euro. a little bit of a move also against the chinese yuan. a final look at gold. we've got appreciation on this risk-off day by 1.25%. sara, as we look at those markets we've just rushed through, really of note for me is the differentiation in performance year to date. of course, u.s. futures are down right now, but they did end last week at the highs for the year as a whole. as you look at asia and europe in particular, they just haven't had that same end of q-1 bounce back that the u.s. saw. all of europe is pretty much down. and that's quite marketedly so, in a way that the u.s. just isn't. >> so what is the conclusion there, that monetary policy isn't as effective there as it is here when janet yellen speaks? >> i think you'd say partly it's the monetary policy.

partly as well the u.s. data did get better. we haven't seen the same extent of improvement in europe. the rally here in the u.s., if it was based on the fundamental strength of the economy, we wouldn't see the bond buying. . >> the question is correlations. here we are again today looking at some of the checklists of global worries that are starting to flash cautionary signals again. oil back at a one-month low. the ten-year treasury yield back near the lows seen in early february. the japanese yen is at a 17-month high. all of these are sort of the risk factors flaring up again. they're bringing us back a little bit to the beginning of the year when it was those correlations and moves in other assets like china, like the yen that we were seeing that were bringing us down.

it's only been two days of a decline. we're going to have to monitor that. we are heading into an earnings season where expectations are lowered. but keep an eye on those moves. another 3% decline in the price of oil yesterday. more selling on top of that, that could be key. we've also got a pair of economic reports on today's agenda in the u.s. february trade deficit numbers out at 8:30 a.m. eastern time. the trade gap is expected to have widened slightly from the month of january. i'll be watching the 10:00 a.m. march ism services index. of course, this is key. it has stayed in expansion territory, but there were some concerns that services momentum is slowing down. it's the biggest part of the u.s. economy. we'll see what that bounceback in actual manufacturing last week. and earnings, drugstore chain walgreens boots alliance before the opening bell, along with darden restaurants, and after the close, we'll hear from pershing square holdings. >> absolutely right. those ism numbers at 10:00 will be key. the question is, who will be breaking that data live on cnbc? >> "squawk on the street."

>> oh, of course. >> thank you for asking. most important data point of the morning. >> no day is complete without a little fed speak. talking in hong kong overnight, chicago fed president argue d fr two rate hikes. year. neil kashkari spoke last night. he said he's comfortable with the stance and expects moderate economic growth ahead. he addressed reporters after his all-day symposium entitled "ending too big to fail." >> i'm committed that at the end of the year, no one is going to be confused about the risks that remain. at the end of the day, it'll be up to the american people and congress to decide whether or not they want to go further. that's up to them. that's their call. that's the job of our elected representatives. i feel like our job at the

minneapolis fed is to speak up about the risks that we see so that no one has a false sense of security. >> kashkari plans to release a proposal with solutions by the end of the year. more from him later today when he joins "closing bell" live. that's in the 3:00 p.m. hour. not to miss. >> boy, is he taking on the big banks. six weeks after that headline making speech. he just joined the minneapolis fed. he's making a name for himself, fighting the banks. we have some other big corporate stories to tell you about today. shares of allergan plunging after new rules were announced to curb the so-called inversion deals. remember, allergan and pfizer are waiting to close a deal. the two companies releasing a statement last night saying, quote, we are conducting a review of the u.s. department of treasury's actions. we won't speculate on any potential impact. investors are certainly speculating. as soon as he rules hit, which was after the closing bell

yesterday, allergan shares dipped more than 20% on the news. the rules are very complicated. what's interesting here is this is the treasury department's third attempt in the last two years to curb those so-called inversions, where american firms merge or join in an m&a deal with a big form domiciled firm in order to save tax money. this new rule does get at what's called earnings stripping, which is this idea that the american firms get saddled with debt from the foreign firms. they go deeper, they're more complete. >> as you say, the rules are more complicated. but what surprises me, as you said, this is the third attempt to do this. the share price has reacted almost as if this has already been passed, that it's already in place. we know they've tried to put these types of rules in place before, and it doesn't work. >> but the they don't need congressional approval. >> still, it's a difficult thing

to get done. to see a 22% move instantly, that was quite a surprise. clearly it's a big headache, but it's not dead yet. other corporate news, disney veteran tom staggs is leaving the company. he was seen as the successor to bob iger. reports say staggs was not guaranteed the position. "new york times" columnist james stewart has covered the company closely. >> if i were staggs and iger kept delaying when he was going to leave, maybe i would get discouraged. i don't know. i think it's hard to say. i think there's a lot we don't know here. maybe a lot of this will emerge more clearly in the coming days and weeks, but i think they're going to have to consider some outside candidates. >> in a statement late

yesterday, disney said its board will evaluate a robust slate of candidates. a big surprise. >> it's a big surprise. he was considered the guy. and bob iger, these are going to be tough shoes to fill. bob iger has presided over a disney stock that has climbed. profits have gone way up. he's presided over acquisitions like marvel, brought back "star wars" into the franchise. the question s how much of an overhang is this going to be for the stock? we know that he's already beyond the time that he was supposed to be there, until 2018. >> so 2018. clearly it's a big story because he was the heir apparent, but they have a long time to find the next replacement. it's not like it's imminent. so they should be able to get through this. >> it is an uncertain -- it's at least uncertainty, which investors don't like. >> new details this morning into the drama at pimco. in a legal filing, the firm argues that gross' abusive

conduct and effort to, quote, sabotage his colleagues he deemed disloyal, gave it good cause to fire him. gross sued pimco last october accusing executives of plotting o oust him from the firm he helped found. the money management firm says it has good reason not to pay gross any more of the $200 million of damages that he is seeking. some stocks to watch today. tesla announcing it didn't meet its first quarter sales goals, pointing to a parts shortage. the car company promised to the no make the same mistake with its coming model 3 vehicle that's been grabbing headlines in recent days. united airlines reaching an agreement on contracts, covering about 30,000 employee. the new deal will increase pay by about 30% over five years. david & buster's are launching a 3.5 million share offering. down 1.25% in premarket trade. an s.e.c. filing revealing

carl icahn cut his stake in hologig more than 5%. didn't hurt the stock too much. dominion resources announcing plans to raise about $750 million through a stock offering. the firm says it will sell more than 10 million shares of its common stock. right. still to come here on "worldwide exchange," the latest on the fallout from the panama papers. why the leak has sparked protests in iceland. plus, we want to hear from you. vote in our twitter and facebook poll. today we're asking on this very busy news day, which is the biggest rivalry of the morning? is it allergan versus the treasury, wildcats versus tarheels after last night's upset, trump versus cruz or kasich. remember, it is wisconsin primary day, which is coming up. we're going to tell you about

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great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. welcome back to "worldwide exchange." a good morning to you. a bad morning for u.s. futures. we're expecting a triple-digit move to the downside for the dow by 115 points. s&p down by 16 and the nasdaq by 30 points. now to today's trade of the

day. the cbo volatility index, otherwise known as the vix, rallied 8% yesterday. so how can investors trade an impending volatility event? our data team crunched the numbers to find out which s&p stocks and etf securities actually outperform when the vix rallies. turns out no s&p stocks do particularly well, but stocks in traditional defensive sectors like health care and consumer staples hold up best, like allergan, dollar tree, and a few others. the etfs that do well include the tlt 20-year treasury bond etf, and the iau gold trust. no surprise there. the so-called fear indicators rallying altogether. for more, go to cnbc.com and check out cnbc pro. the latest on the fallout from the panama papers. the u.s. justice department is reviewing the leak from a law firm which revealed the

financial arrangements of global politicians and public figures. specifically, the doj will look into whether or not the findings point to evidence of corruption. separately, in iceland a record number of protesters taking to the streets to demand the resignation of the prime minister, who allegedly benefitted from offshore investment accounts in tax havens. this story likely to ramble on. no hard evidence yet released thus far. >> well, i mean, it's pretty damning. >> lots of allegations. i just don't know exactly what -- i mean, let me put it this way -- >> they're having a confidence vote, and people are protesting in the streets. >> but do we know there was specifically wrongdoing? is it losing face to have an offshore account? definitely. >> it opens up a whole pandora's box of conflict of interest, especially for that country, which had to go through a depression. >> i'm not saying it doesn't, but i don't see any specific proof. >> it's coming. vietnam has confirmed the first two cases of the zika virus. two women, ages 63 and 33 have

tested positive. they are in stable condition, but the younger woman is eight weeks pregnant. there is scientific consensus that zika can also harm children. vietnamese health officials say no further infections have been found among the womens' family and neighbors at this point. still to come, it's primary day in wisconsin. we'll look at the final campaign push and latest polls. but first, as we head to break, here's today's national forecast from the weather channel's kelly cass. good morning. we're finally clearing out after a winter storm dumped as much as 9 inches of snow in parts of massachusetts, 5 inches in my hometown near poughkeepsie, new york, and the hudson valley. new york city looking at a drier day with temperatures in the low 40s. sunshine throughout the south. in fact, heating up in dallas. look at you guys with 86 degrees. we are seeing another system blow into the northern plains. i mean blow. it's going to be windy with that

rain in bismarck. dry in chicago. you'll have the sunshine but cooler temperatures for you in the mid 40s. 80 degrees in los angeles. in fact, the story here in the west is going to be the record heat setting up. along the eastern half of the country, temperatures are cool, and they're going to get cooler by the end of the week. that's a look at your national weather. frank abagnale. convicted felon and con man. that was a long time ago. you know, they made a movie about it. you were shown to be quite skilled at fraud. times change. now i help catch the bad guys. me too.

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welcome back to "worldwide exchange." now to politics and the race for the white house. today's wisconsin primary could be a major turning point for

some of the candidates. nbc's edward lawrence joining us more with now from washington. >> reporter: good morning. this is not make or break for the republican or democratic front runners, but wisconsin could turn the tide of momentum. >> and the next president of the united states -- >> reporter: both front runners, donald trump and hillary clinton, are playing defense this morning. a loss in wisconsin for trump could further divide support, leading to a contested convention. at events in the badger state, the republican front runner lashed out at governor kasich for staying in the race. >> kasich, i don't think the guy is a player here. he's taking my votes. we have to get over 50%. >> reporter: senator ted cruz also seemed frustrated the ohio governor could be taking valuable votes. kasich says he's glad both his competitors are upset. >> i'm glad they're both nervous about my taking delegates because the more that we can get a message out there, i think the

better we do. >> reporter: for the democrats, a wisconsin loss by hillary clinton could give senator bernie sanders the boost he needs. >> the momentum that you are feeling and that i am feeling in this campaign. >> reporter: as sanders campa n campaignicampaig campaignincampaig campaigns in wisconsin, clinton moved to new york, targeting the republicans. >> they all want to take us back to trickle-down economics, and we cannot allow that to happen. >> reporter: still, sanders holds a slight edge in wisconsin polls. back to donald trump, trying to repair his reputation in wisconsin with female voters. he got his wife to speak for him on the campaign trail. we'll have to see if that worked later on today. back to you, wilfred, sara. >> i have a question, edward. as the candidates are in wisconsin ahead of today, they're also sharing time with new york, which is the next big primary. how much is at stake here, and what do the polls look like early into new york?

>> reporter: exactly. in fact, some of the candidates are actually not in wisconsin. hillary clinton and john kasich have chosen to go spend the weekend actually in new york. so the other candidates are in wisconsin going around. wisconsin is very close. donald trump is about five points behind senator ted cruz. he has 35%. senator ted cruz has 40%. on the democratic side, bernie sanders is up eight points over hillary clinton. that's a big margin. that's actually been growing in wisconsin. now, one of the reasons hillary clinton went on to new york is because her lead is shrinking. just about ten points or so in new york. but that has been shrinking over the course of the last month. so she is there to try and make sure this momentum that bernie sanders is getting doesn't keep going. >> all right. thank you very much for the update. we'll see what happens in wisconsin today. meantime, san francisco's board of supervisors is set to vote today on whether to grant

six weeks of full paid leave to new parents. the move would be the first time for any jurisdiction to have this law. in california, parents can receive more than half their pay for up to six weeks to bond with a new child. the money comes from a state insurance program. the san francisco proposal here would require employers with at least 20 workers to make up the rest. i like that it is not gender specific. >> absolutely right. let's get to sports. the men's college basketball season came down to one game monday night. the villanova wildcats facing off against the north carolina tarheels for the ncaa championship. it all was decided by just two gigantic shots. with less than ten seconds to o go, the incredible three-pointer from an impossible angle to tie it. carolina fans, including michael jordan, couldn't believe it. with four seconds left, villanova goes the length of the

floor, and chris jenkins drains this three at the buzzer to win it. unbelievable scenes. the wildcats storm the court to celebrate their improbable 77-74 victory and the first ncaa basketball title since 1985. extraordinary scenes. >> i didn't even have them in my final four. they were in my final eight. >> amazing stuff. great game. congratulations. commiserations as well to the losers. coming up this morning on world world, top stories, including a global stock selloff. plus, allergan shares slammed after the u.s. government unveils new anti-inversion rules. and disney succession in question after bob iger's successor leaves the giant. ♪ you're not gonna watch it! ♪

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don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song. groebl market alert. the german dax down by more than 2%. oil extending its losses. and u.s. futures are pointing to triple-digit losses. new this morning, the once heir apparent to bob iger is leaving the company. and ncaa champions. the villanova wildcats defeat the north carolina tarheels with a buzzer beating three pointer in what's being called one of the greatest finishes ever. it's tuesday, april 5th, 2016, and you're watching "worldwide exchange" on cnbc. good morning. welcome to "worldwide exchange" on cnbc. i'm sara eisen.

>> and i'm wilfred frost. let's get straight to the market action. futures pointing to triple-digit losses for the dow, as we just mentioned. we're expecting an open of 118 points lower. the s&p down by 17. the nasdaq by 31. this following losses elsewhere in the world right now. if we have a look at europe, you can see the dax in germany is off more than 2%. the whole of the european market off more than 1%, but the german market bearing the brunt of the losses. we've seen commodity names and energy companies down the most. asia saw losses. a more mixed performance, but predominantly losses. the yen climbed by 0.7%. as you can see, shanghai managing to buck the trend and finish up 1.4%. oil one of the factors. today, in fact, it's only down by about 0.3%, 35. 6. sharp declines for oil yesterday, on these stories particularly that this deal coming up in qatar between opec

and russia might not yield anything significant. speaking of the global economy, the imf chief christine lagarde says that the world is losing momentum, and she's urging governments to take action to protect the recovery here. speaking in frankfurt this morning, lagarde saying that glowing growth risks have become engrained as the, quote, new mediocre. have a listen. >> let me be clear. i'm not raising the alarm. i'm saying that we are on alert. there has been a lot of growth momentum, but we believe that if policymakers could be determined to act together, to confront the challenges that i will address in a minute, the positive effects on global confidence and the global economy can be substantial. >> lagarde says the global outlook has weakened over the past six months, signaling the imf may be revising its growth forecast.

again, it's a little bit of déàa vu. every time the imf puts out its world economic outlook, it revises its forecast lower for global growth. it's unclear exactly what that means, whether she's thinking of some sort of fiscal stimulus or monetary policy keeping more in sync. they have been in favor of coordinated action. >> probably relatively le lly p with the dovish sentiment out of the fed. allergan and pfizer are waiting to close what would be the biggest corporate tax inversion deal of all time. the two companies releasing a statement saying we're conducting a review of the u.s. department of treasury's actions prior to completing the review, we won't speculate on any potential impact. the share price reaction on allergan clearly showing a lot of investors are skeptical that deal will continue. down 22% in premarket trade. another big corporate story to tell you about today, veteran

disney executive tom staggs is leaving the media giant. he had likely been seen as the successor to current ceo bob iger. reports saying staggs learned he was not guaranteed the top job and disney's board was going to broaden its search for a new chief executive. the stock fell about 1.8% in the afterhours on this news. it's a big deal. it raises a lot of questions about the success plans and problem at disney. barclays, who has an underweight to neutral on the stock, says it's going to be an overhang. it comes at a time where there's a lot of skepticism already around disney about the warning of lower profits when it comes to espn, which is the crown jewel, and the sort of loss of subscribers. this is just going to be another overhang, they say, on the stock, and it's going to complicate this for disney. >> indeed.

clearly mr. staggs highly thought of. but they have two years to find the next heir apparent. >> potentially raising the prospect of an external candidate, which is i think usual for disney. staggs was there 26 years. >> gosh. so he must be pretty upset. >> "new york times" reported that he went to the board and asked for some sort of guarantee and didn't get it. let's get back to markets. in particular, one of the key topic of recent weeks has been this topic of brexit. joining us in studio is sam hill, fixed income strategist at rbc. good morning to you. >> morning. >> as we approach june 23rd, the crucial date of the vote of when britain will decide whether to stay in the european union or not, so far the focus has all been on the pound. is that fair? is that the main place we'll see the market move and react to this? and how big a move could it be? >> i think that is where we'll continue to see the focus. i think the reasoning is because to the extent the markets feel as though they have to price in the probability that it does come to the u.k. leaving the

european union, we think that will result in the bank of england having to ease policy further. so a lower, weaker outlook would be consistent with the weaker pound. >> we're at 1.42 against the dollar this morning. how far could this go? >> at rbc, we have come up with a scenario that we think makes sense for investors to consider what would happen if you were to see a 10% to 15% weakening in sterling on confirmation of a brexit vote. now, there's obviously a huge amount of uncertainty around any forecast in this scenario because we're heading into the unknown if it were to come to that. we think in the context of recent sterling crises going back a number of years, that's a sensible benchmark to consider for now. >> just in terms of the overall market, we're looking at a sharp selloff in u.s. equity futures, coming off of europe there's weak economic data. there's this sense that what we have seen over the last six weeks or so in terms of strength

in markets, stabilization in commodities might not be able to last. is that how you're viewing global markets right now? >> i think the intervention by yellen last week in her speech will have gone a long way to underpin some confidence because the idea of the fed being very gradual should help to provide some confidence. although, i do accept in certain areas that exports in japan, it doesn't work for everybody quite the same way. hopefully a more gradual shift. >> if we look at yields globally on the safe havens, japan, germany, the u.s., yields on those bonds are near the lows of the year back when we were in the middle of february and fear was very high. do you take from that people are very skeptical of any economic growth, and even though equities

might be rallying, fundamentally, investors are very caution? >> i think it's partly that and the inflation expectations remain quite low. so we saw indian crease in inflation expectations following the ecb's big intervention about a month ago. but it hasn't been particularly durable increase. the jury remains out to see just how significant those policy interventions will be by the ecb. so i think when you look at the u.k. in particular as well, fuel prices, food prices still falling. inflation expectations certainly not going up. i think that's partly explaining the low bond yeeds. >> where do investors go in this yield-starved world, which continues to deteriorate? >> we're of the view that's with the ecb.

actually, it still is the credit component of whether it be the peripheral governments or whether it be the new group of assets that are about to embark on purchasing. i think that's where the opportunities are, albeit they're not particularly attractive. >> so go with the ecb. >> sam, thank you for joining us this morning. >> we have top trending stories to tell you about, starting with facebook rolling out a new feature nits iphone app that helps blind users enjoy photos themselves. the program uses artificial intelligence to interpret what's in a picture, then voices over the photo. descriptions will initially be confined to 100 words. right now i guess as the feature goes t just tells you so and so updated a post. now they're trying to get more specific when it comes to the details about people having a good time in a photo. i think it's great. >> good. start at simple, see how much they can expand it.

an app that allowed users to access the taliban's website was removed from the google play store. google saying it premoderates apps to catch early offenders, although it originally missed this one. the company tries to take down apps that are flagged as dangerous. a little bit embarrassing for them, i suppose. >> that they didn't catch it earlier. walmart is apologizing for selling t-shirts with the university of maryland terps logo outlined by the state of massachusetts. a customer originally pointed out the mistake on twitter. a walmart representative originally denied that mix-up saying that massachusetts and maryland look similar. but the company later apologized and has removed the shirt from walmart stores. if you go to any map, you can see that actually massachusetts and maryland don't look so similar. >> i like that though. that's an amusing one. "the rolling stone inin ini

stones celebrating with an exhibition. it features 500 pieces of memorabilia from the band and will run until september. of course, just coming off the back of their trip to cuba. >> they got a lot of high marks for their outfits. coming up, this morning's must-read stories ahead of today's wisconsin primary. trump and cruz are turning up the pressure on kasich to bow out. a look at why the ohio governor is a major threat to the republican front runner. stay tuned. you're watching "worldwide exchange" on cnbc.

welcome back to "worldwide exchange." a quick look at futures for you. we're expecting triple-digit declines for the dow, following declines in europe and a mix but negative predominantly session in asia. 131 points down for the dow. s&p down 18. the that's -- the nasdaq down 35. let's get to today's must reads. my pick is in "the wall street journal." the editorial board writing, he has no hope of reaching are 1237 delegates before the convention, but what trump and cruz really fear is the convention might want to nominate a potential winner. the article goes on to say that kasich defeats hillary clinton by 6.3 points in current head-to-head polls. clearly he's gott way less delegates. interesting to see how cruz and trump both focusing their attention on someone that otherwise wouldn't be getting it because he's such a distant third place runner. but th feel they have to at this stage. that's kind of the focus.

>> the fear is that it is a contested convention. i went to the "financial times." it's titled "panama papers: new financial rules are needed for politicians." the unacceptable is clear, selling political influence for money. although it remains common in some countries, but the boundaries of acceptable are less obvious and need to be defined clearly when the opportunities for former leaders to generate wealth are greater than before. it doesn't spell out what rules need to be had but does sort of get at the already rising populist anger at the global elite. the rise of donald trump. the fact that hillary clinton has made so much money on speeches after hillary and bill clinton after leaving office. all of the criticism, these panama papers just fuel that anger and this perception that the elites are gaming the system and making money.

noted here is that donald trump isn't app problem. it's not a problem if you make money leading up to your rise in power. it's use of power. >> i completely agree. that particular point makes it one of the better write-ups of this whole issue. i go back to that point i said earlier, just more generally, not marly with this guy's write-up, that it's not totally ground breaking to hear that undemocratic nations, leaders and past leaders and family members, might have something offshore. i don't think that's a revelation. and thus far, we haven't had any proving of wrongdoing. >> there's 11.5 million documents that implicate 143 politicians. >> i think we need to see more details to prove there's wrong jng doing. it's definitely losing a face for certain people. leaders might be campaigning on tax avoidance. >> like david cameron. >> his father was apparently director of a company there. no indication it was his personal wealth involved.

that in itself is not really worth reporting yet, yet it's being reported widely and aggressively. that's my only point. more details will come out, and perhaps there will be a solid investigati investigation. >> oh, yeah, you can bet there's going to be investigations all over the world, including here. we're approaching the top of the hour. that means "squawk box" second base getting ready in new york city. andrew ross sorkin joins us with a look at what's coming up. we've got a busy news schedule here, andrew. not only the markets but some big interesting corporate stories like disney and allergan. what do you guys have covered snn. >> at least from my vantage point, we're going to talk about two things repeatedly. we're going to talk about allergan and what's going to happen with pfizer. huge impact. we're going to see what happens there this morning. then there's the corporate soap opera, drama inside disney. what happened to mr. staggs and who's going to take his place

and where the betting line is. we have a number of disney experts who are going to give us their view on what's taking place. i'll send it back to you guys. >> andrew, thank you very much. we look forward to "squawk box" in 11 minutes' time. up next here on world wor"w exchange," global stocks selling off this morning. we'll get you ready for the day ahead with michael tyler from eastern bank wealth management. we're back in a couple minutes. i'm val, the orange money retirement squirrel from voya. val from voya? yeah, val from voya. quick question, what are voya retirement squirrels doing in my house? we're putting away acorns. you know, to show the importance of saving for the future. so you're sort of like a spokes person? no, i'm more like a metaphor. okay, a spokes-metaphor. no, i'm... you're a spokes-metaphor. yeah. ok. see how voya can help you get organized at voya.com.

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the nasdaq broke a four-session winning streak yesterday. stock futures suggest more selling is on the way. nasdaq futures down nearly 40. dow futures down 143. joining us from boston, michael tyler, chief investment officer at eastern bank wealth management. what do you tell your clients on a day like this, where oil is falling again, the yen is strengthening. a lot of these worrisome signals that were with us early in the

year are coming back to haunt us. >> we had quite the rally in the last couple weeks, though, so after a very strong march, i think this is just normal. it's a typical pullback. stocks had a great run. right now i think they're fairly valued, but we're not going into a bear market because we have one down day. i think this is a natural evolution. >> michael, perhaps it's normal to see a bit of profit taking in u.s. equities right now. as you said, they've had a strong march, a strong bounceback. if you look at europe, for example, it didn't have such a strong second half of the first quarter. so is this a very different story in perhaps you can take some confidence in the u.s., but else, the global picture is still very worrying. >> it is difficult. we're seeing some positive signs, but it's not nearly as robust. the underlying economy is not nearly as robust elsewhere as it is in the united states. we have the benefit here of a strong dollar, which is helping

in some respects, but not too strong. the fed that is clearly giving signals that they want to modulate very carefully just how quickly the dollar can go up. >> so what do you do in this yield-starved world, where the ten-year note is continuing in the 170s. do you buy coca-cola, which is now trading at 20 times earnings and continuing to make new highs? >> well, we think frankly that staples are a good bet. we're looking at dividend oriented stocks and specifically dividend growth stocks as one of the better places to invest right now. coke is a good example. there are certainly many others as well of companies that have solid operations, true blue chips. in the staples area, in consumer discretionary areas that have decent 2% and 3%, and 4% dividend yields. >> i think when you get moments of worry like we had earlier this year, suddenly attractiveness in relative terms

goes out the window and everything starts selling off. >> i think that's perhaps a bit -- saying it a little too strongly. the fact is stocks are much more attractive than bonds. the last time, other than the past couple years, that stock yields, the s&p 500, have been higher than the ten-year treasury, they're both around 2%, give or take now, the last time that stocks were higher was 1958. so we're looking at a long-term anomaly in which stock dividends are more attractive than bonds. in that respect, yes. absolutely speaking, stocks are fairly valued. relative to bonds, i still think they look very attractive. >> i wonder if you have any positions on health care, michael, which has had a pretty strong few sessions after notable underperformance so far this year. is health care buy? >> health care is tricky because there are certain segments that look better than others, but we think the overall sector is attractive. there's a very good example of some strong dividend yields, particularly in some of the

pharmaceutical companies, which have good operations. the challenge here is that it's a very politically sensitive sector. in an election year, anything can happen. the candidates can promise anything they want, and that may or may not come to pass in the next congress, but at the same time, it does leave the sector vulnerable to some political pressure. so we think that there's value, but it's not an easy ride in health care right now. >> do you think allergan is oversold this morning in premarket, down over 20%, when we haven't actually seen the implementation of any deals -- any new rules from the treasury yet? >> well, to be honest with you, we don't own allergan or pfizer right now. i'm not as close to it as i should be, but having said that, i think 20% is something of an overreaction. >> and just wrapping things up, michael, as you said, we saw that big bounceback in march in the second half of q-1 for u.s. stocks. was that based on the fundamental economy, or was it based just on the fed? how much longer can this go on for? >> no, i think frankly the january and february downdraft

was the anomaly. that first quarter seeing returns january through march of basically a flat market, that's reasonable. looking forward, we're looking for an economy that's still growing somewhere better than 2% this year, which to me supports stock valuation that can go up another 3% to 5%, plus dividends. that's a decent return. it's not spectacular, but it's pretty decent. >> all right, michael. thank you for joining us this morning with your thoughts on the market. michael tyler of eastern bank wealth management. >> we only have about a minute left. we want to highlight a few things to watch today. what are you watching? >> i'll be watching the share price of disney. this management story, this shake-up. the coo stepping down. it was a surprise. disney may need a star map to find their next ceo. >> and i'll be watching "squawk box," as i always do, because we have march services pmi at 10:00 a.m. i'll also be watching in order

to see the lovely faces. >> that does it for us here on world world. "squawk box" coming up next.

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good morning. markets are under pressure so far, with crude climbing back from session lows. stocks in europe, some are down 2%. u.s. futures were triple digits lower earlier. a shake-up at disney. bob iger's assumed successor stepping down, leaving leadership in question. and an unbelievable finish in last night's national championship basketball game. villanova's buzzer beater clinching a win for the wildcats. great percentages last night, a l though i was asleep.

it is tuesday, april 5th, 2016. "squawk box" begins right now. live from new york, where business never sleeps, this is "squawk box." good morning, everyone. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. check out the u.s. equity futures this morning. you are looking at triple-digit losses. the dow futures down by 137 points. s&p futures down by 20. the nasdaq down by 35. this comes after the markets ended at about their lowest levels of the day yesterday. nothing major for the dow. only down by about 56 points. again, you can see how this is carrying into today. overnight in asia, the nikkei was down sharply as a stronger yen hit japanese exporters once again. china bucking the trend as stocks close near a three-month high. stocks in europe right now also under some pressure