good morning. jamie dimon warns, watch out. we'll tell you why the jpmorgan boss is confident volatility is here to stay. new this morning, the ge ceo speaking out strongly, disagreeing with what bernie sanders is saying about america. plus, history at augusta, and the masters tournament hasn't even begun. a record smashing nine holes in one during the par 3 contest. it's thursday, april 7th, 2016. "worldwide exchange" begins right now.

good morning and welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> and i'm wilfred frost. it's throwback thursday. this week we're highlighting the newest members of the rock and roll hall of fame with the induction ceremony and concert coming up tomorrow night. >> yeah, that was the steve miller band with "rocking me." we'll hear from chicago, cheap trick, deep purple. it's going to be a good one. >> let's get to the market. a positive day yesterday. pretty positive for the s&p. still positive to the tune of about 6% for the dow. we're expecting a slight correction this morning. the dow called lower by about 38 points. the nasdaq by 12. the s&p by five. we got some impetus yesterday after the fed minutes, which were seen as nicely dovish. let's have a look at the yield on the u.s. ten-year treasury note. we've continued to see pretty low yields the last couple days.

no big movement today. 1.734%. >> the show stopper in the last 48 hours, the dollar against the japanese yen, hitting a 17-month low. that is a significantly stronger yen and a weaker u.s. dollar. below 109. this after minutes from last month's fed meeting suggesting they're unlikely to raise interest rates before june. meantime, we'll also get minutes from the latest ecb meeting later this morning. just check out the euro. it's weakening a bit against the dollar. there's been some ecb member comments on the tape. for instance, peter prett saying that growth and employment cannot depend on monetary policy alone, but if the economy should take a turn lower in europe, the ecb has the tools to act. lots of central bank speak. i think the people reason are watching the dollar-yen so closely. look at that move, down 1.3%.

it's a read on monetary policy. japan has thrown everything at its economy to try to boost it and weaken the japanese yen. now the market is taking it the other direction. >> and comments from bk asset management saying it's a worrying move. we've seen these moving just go further and further. it's sort of baffling when you see the differentiating central bank policy around the world. and of course we have minutes from the ecb today. that's at 7:30 a.m. eastern time. so we'll look out for those as well. let's check in on equity markets around the world. asian trade, as you can see, mixed. the shanghai comp, which had been managing to hold on to gains in the face of declines for the rest of asia in recent days has reversed today. the nikkei managing to be in positive territory despite yen strength. if we look at european trade right now, we're looking at gains but not too significant.

the best performers, commodity names, taking note of oil strength. more yesterday than today. >> yeah, oil jumped 5% yesterday. that was certainly uplifting for the overall market. and it is building on that strength today with fractional gains. 0.2% right now. wti crude, 37.82. brent, the international benchmark, up a bit more. 39.97. this morning, let's show you gold as well with all the attention on the weaker u.s. dollar. that has lifted gold but not significantly. gold is up a percent today, up about 12 bucks. >> investors get a pair of economic reports today and more fed speak. weekly jobless claims are out at 8:30 a.m. eastern, expected to tick back below the 270,000 level. at 3:00 p.m., we get february consumer credit. we also hear from new york fed president bill dudley and kansas city fed president ester george. janet yellen is at an event this

evening. as for earnings, carmax reports before the opening bell. >> you just read that like it's no big deal. i'm the most jealous person of fareed za ckar i'm the most jealous person of fareed za ckaiazakaria, who get interview not only janet yellen, ben bernanke, alan greenspan. the most legendary combo of interviews. >> but three of the four cannot move markets whatsoever. >> that's true. and nobody is actually looking for her to move markets that much. >> be more jealous if the panel had draghi, kuroda, carney, and yellen. that would be epic. we'll organize that one. >> this is "worldwide exchange." we'll go global. fareed, you've got nothing on us. >> once we've organized that. right. our top story this morning, jpmorgan releasing ceo jamie dimon's annual letter to shareholders last night. among the highlights, dimon says he's not worried about negative

interest rates in the u.s. that's because the chief executive notes housing is in short supply. car sells are at record levels. consumers are spending what he calls the gas dividend. dimon is more concerned about rates rising faster than people expect, which is odd for aening baaing ceo to outline that rue. the banking ceo also warns high volatility is here to stay. he says liquidity has gotten worse and the bank has seen, quote, extreme volatility and distortions in several markets. on the fed's bank stress test, dimon argues they're flawed. he suggests jpmorgan could absorb the theoretical losses of the nation's 31 largest banks. he says years of economic uncertainty would be, in his words, the best case outcome from a decision by britain to leave the european union. the worst case, he said, would see retaliation from european states in terms of any potential trade deals that britain would

try and renegotiate. as for jpmorgan share prices, dimon says he's not proud of the stock's performance over the last decade. he notes shares have only equaled the s&p 500 since the bank's merger with bank one in july of 2004. dimon also points out that his firm's stock has, quote, far outperformed the s&p financials index. lots of focus on this letter. it's longer than normal. i think that highlights the kind of issues out there in the world at the moment. it leads into jpmorgan's earnings, which come out next wednesday. >> it's a good view for investors about what the big picture worries are. he talks about china. he talks about the brexit. he talks about volatility. it frames a nice discussion through the overall market this year, which is flat, and has managed to climb a wall of worry again with some of these issues

lingering. the question, i guess, if you're a big-picture, long-term investor, is how do you feel about the bumps in the road when it comes to china or the brexit risk, which he says could have prolonged impacts on the european economies. those sorts of questions we sort out here with our guests. meantime, the stock market continues to go higher. that's why we watched some of the sort of pockets that are flaring up. like the stronger japanese yen, biotech a story in itself. oil up 5%. beneath sort of the flat market there, these vuj stories. then the big picture questions that dimon is asking. >> absolutely right. he says volatility is here to stay. he also made a few comments relating to the political situation. they were veiled comments.

he says, i don't want any american to look back 20 years ago ask why they lost position. trying to ease that. >> this is the theme of the day. corporate america pushing back against the bashing on the campaign trail. whale dimon, i thought, was pretty restrained, ginn we're in a week where neil kashkari has held this meeting on too big to fail and there's a lot of bashing of banks on the campaign trail, he does address it. it goes along with jeff immelt addressing bernie sanders' comments. >> and he's not worried about negative rates. although, of course, the lack of hikes this year will be impacting earnings, which start next week for banks. >> it's going to be ugly. people are sort of lowering their expectations. >> more because of the capital market impact, a bit because of

losses in the energy space. >> and this is your wheelhouse. >> it is. wednesday onwards, a look at banks. let's get to stocks to watch. >> tesla ceo elon musk has tweeted that the electric carmaker will give an update on model 3 reservations and how they're doing earlier today. valeant pharmaceuticals has secured a commitment from loan holders. more than half of its loan holders say they will push back regulatory filing deadlines and loosen loan terms for valeant. raptor pharmaceuticals is reportedly exploring a sale, though that's not doing much to lift shares of that stock in the afterhours. down 3%. >> bed bad & beyond posting earnings and revenues that topped estimates.

it's up 2.5%. sprint says it will raise $2.2 billion in cash through a deal to sell and then lease back some of its network assets. it's up 3%. recode reporting that yahoo! is expecting revenue to fall nearly 15% and earnings to drop by more than 20%. the firm also expects its employee count to fall. that stock is flat. politics and corporate america colliding this morning, as i mentioned. ge ceo jeffrey immelt is firing back, defending his firm after harsh comments from bernie sanders. immelt writing in the post, bernie sanders says we're destroying the moral fabric of america. he is wrong. of course, this comes after sanders cited ge as an example of corporate greed at its worst. immelt writing ge has never been a big hit with socialists, saying it creates jobs and wealth here in the u.s., not overseas. he also responded to the tax

dodging accusations. sanders has stated many times ge pays no taxes. repeating a lie over and over does not make it true. we pay billions in taxes. the u.s. tax system has not been updated in 30 years and isn't designed for today's economy, which is why we support comprehensive tax reform, even if it raises our tax rate. he says he sustains 125,000 jobs. generations and jen igeneration ge employees. if that's not the moral fabric of america, he doesn't know what is. >> do we think clear corporate attacks like that helps or hinders him? it plays. into his rhetoric a little bit. if goldman sachs came out and endorsed hillary clinton, then sanders -- >> right. >> but i just wonder about them coming out. jamie dimon coming out pretty overtly for a non-british banking ceo, making such a clear

argument that he favors britain staying in the european union. i wonder what other politicians will come out and say. >> i think he probably would like to sway public opinion, but he has to stand up for himself and his 125,000 employees that are hearing sanders bashing the company. >> it will be interesting to see what the fallout is of that. still to come here on "worldwide exchange," the fed minutes show more division within the central bank over when they should raise rates again. our next guest says the minutes are just noise and what janet yellen wants, janet yellen will get. we'll get more unsight straight ahead. you're watching "worldwide exchange" on cnbc.

welcome back to "worldwide exchange." the dow rebounding yesterday after the release of the fed minutes. now that we have more reassurance from the central bank, what's the next hurdle facing stocks? peter, main takeaway from yesterday, that we're on a dovish trend even though there's division within the ranks? >> yes, and yellen made that clear a couple weeks ago. going into the yellen speech post-fomc meeting, we had five fed presidents saying i'd like to raise rates a few times this year. one actually said, i'd like to do it three times. then yellen basically put that out and said that, i don't know if i want to raise rates anymore. we're looking at all these different things now. it's more than just inflation. it's more than just the employment data. it's all these international

developments that she's worried about. but she's always worried about something. there's always uncertainty in the world. >> okay, we got it. we know the fed position at this point. we've heard from yellen a few times. that doesn't seem to be what the main driver is anymore. so if it's not a stronger yen that's spooking investors, is it higher oil that's driving us? >> i think it was the weaker dollar that was a tip-off. it was a major pressure point on markets in the first six weeks of the year. then when the fed started to back off from this four rate hike dot plot, that i think was the original catalyst for the market rally and the rise in commodities and oil. now it's obviously going a lot further than we would think, particularly with the yen and the ecb on the heels of the extra actions that those two central banks have done over the past few months. now it's shocking to see the yen at 108, for example, or the euro at 1.14. certainly the trigger was the fed backing off from an

aggressive rate hike cycle this year. >> let's talk about the yen. those moves have been extraordinary. we clearly see that people don't believe in the bapg of japan's ability to weaken the currency anymore. that's obvious it's been strengthening. if we're not berealieving in wh the bank of japan can do, why aren't we focusing on the fundamental picture in japan, which would make you think there's no way this should be a safe-haven traid right now? >> no, the yen, it is confounding the rally. if we put aside the yen and look at what's going on in the japanese stock market and the japanese banks, the japanese economy since abenomics has started, has contracted five quarters. so as an economic theory, it has failed in generating sustainable growth. this rally in the yen, i think it's now momentum, taking it event further. but maybe it's a sign that the market is thinking, well, the bank of japan and ecb have hit a wall and they've overstepped their bounds and now it's

beginning to backfire. maybe that will stop them have doing more. >> jamie dimon writing his shareholder letter, bringing up a lot of big-picture themes investors need to think about. he talks brexit. he talks about china transitioning into a more open, free market. as far as those themes, which ones resonate with you? >> well, i think china is important, obviously because it's such a big growth driver, but we have to remember china has been slowing for years. it's just a matter of how they deal right now with a strained banking system and what effect that can have on global growth. with every statistic we see out of asia, they're suffering slowdowns from their sensitivity and exposure to china. global growth continues to shrink with china being a big part of that. so that's a huge concern. also, the u.s. concern. we're going to see gdp growth of maybe 0.5% in q-1.

the last two quarters are essentially 1% growth in the u.s., and we're about to experience our fourth quarter in a row of negative earnings. that potentially can crimp cash flows. >> and yet the market climbs the wall of worry. >> we've seen a major disconnect between the market and what's going on in japan. i don't know how much longer we can keep that gap going. >> peter, thank you so much for joining us this morning. coming up, we'll hit the campaign trail. the road to the white house now runs through new york. first, here's today's national weather forecast from reynolds wolf. >> let's take a look at your forecast across the country. the rough weather we have is going to be mainly to the northeast. just ugly stuff. scattered showers can be expected. maybe a touch of snowfall in high elevations. snow possible in central minnesota. i know the calendar says spring, but mother nature is going to have its own way. its way is going to be a knosno

one. 87 degrees in dallas. 78 in seattle with a touch of sun and clouds. along the i-5 corridor, should be very warm for you. unseasonably warm at that. 43 degrees in chicago. 71 in atlanta. 86 in miami. all right, folks. more coming up on the other side of the break. you're watching cnbc.

welcome back. the political debate over

encryption continues. according to reports, the white house has decided not to the support a controversial bill that would give judges the power to force companies like apple to help crack encrypted data. the bipartisan bill by the leaders of the senate intelligence committee will be drafted later this week. the issue remains deeply divisive after high-profile efforts by the dodj to break ino an iphone used by the san bernardino shooter. now to the race for the white house. for democrats and republicans, it's all about winning new york. tracie potts joins us from washington with a look at what it will take for the front runners to hold on and win this state. tracie, good morning. >> reporter: sara, and wilfred, good morning. to hold on in new york and beyond. the situation right now, hillary clinton needs about a third of all the remaining delegates to get this nomination. but after losing in wisconsin, donald trump now needs 58%, a higher goal. >> it's great to be home. >> reporter: amid protests,

heavy security, and thousands of supporters, donald trump makes a big splash back home in the big apple and calls out ted cruz's comment on new york values. >> with scorn on his face, with hatred of new york. so folks, i think you can forget about him. >> the people of new york know exactly what those values are. >> reporter: cruz visits brooklyn later today. >> if you want to know what liberal democratic values are, follow donald trump's checkbook. >> reporter: hillary clinton's toning down her criticism of bernie sanders. she barely mentioned him in pennsylvania last night, reserving her harshest words for trump. >> when i listen to the rhetoric coming out of donald trump's campai campaign, it is deeply disturbing. >> reporter: but sanders unleashed his most direct attack on clinton yet, calling her unqualified for thesidency. >> i don't think that you are

qualified if you get $15 million from wall street. >> reporter: new york, home to three candidates and the next battleground. overnight, hillary clinton's press secretary tweeted for sanders to take back what he said. we may hear more about that later today. they have dueling news conferences later this morning. >> tracie, thank you very much, as ever. tracie potts from washington. sports. we're just a few hours away from the tee off of the first round of the masters. the first major golf tournament of the year. 22-year-old jordan spieth will try to defend his title and win another green jacket. on wednesday, it was the annual par 3 contest, an event where the players can relax and have fun. there were nine holes in one during the course. amazingly, the biggest may have been by golf legend gary player. the 80-year-old, nine-time major champion and three-time masters winner, nailing the ace on the seventh hole.

the event is also a great time for family. children getting their chance to show off their skills on the course. that no one who has ever gone on to win the par 3 course has gone on to win the masters. >> i'm just glad there's a younger generation of golfers. that's an ageing sport. still ahead on "worldwide exchange," this morning's top stories. plus, uncertainty over the global economy causing many companies to tighten their belts. just how much spending -- will spending budgets get squeezed this year? we have numbers from a report from gardner next. you're watching cnbc, first in business worldwide. i'm vern, the orange money retirement rabbit from voya. orange money represents the money you put away for retirement. over time, your money could multiply. hello, all of you. get organized at voya.com. you gein your car. odors

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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. good morning. market alert. the dollar hitting a 17-month low against the yen today. we'll talk about the fallout. speaking out, jpmorgan's jamie dimon not mincing words in his letter to shareholders, while ge's jeff immelt is fighting back against bernie sanders. it's thursday, april 7th, 2016, and you're watching "worldwide exchange" on cnbc. good morning and welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> and i'm wilfred frost. a little cheap trick on this throwback thursday. today we're honoring the five new members of the rock and roll

hall of fame who will be inducted tomorrow. >> i'm getting so much grief for bashing the sport of golf. apologies to golf fans. i just think it's boring. let's check on global markets this morning. >> so do i. >> a 1% gain in the s&p 500. futures indicating a lower start to the morning. dow futures down 75 points. s&p futures down nine. nasdaq futures down 21. the early action in europe is pretty mixed as well. marginal gains coming off the back of strong gains in the u.s. session overnight. let's quickly show you how europe has started trading here. they flipped into negative territory. the dax losing an earlier gain, now flat on the day. seeing some strength, the ftse 100 in the u.k. not a whole lot to speak of. the japanese yen really stole the show overnight, strengthening. still, the nikkei, the japanese stock market, managed to close out with a gain, ending a seven-day losing streak.

hang seng in hong kong finishing strong. the shanghai composite down 1.3%. after all the swings the u.s. market, that strong day yesterday, 1% gain on the s&p, the markets still going into today down less than half a percent for the week. >> exactly. i think the reason we've got international markets able to hold on to some gains is because it's playing catch up to yesterday's strong rally in oil. the commodity names, energy names are up quite significantly. let's look at broader markets. president big story is the u.s. dollar, in particular the move against the yen. we'll have it back for you in a moment. sharp, sharp fall for the u.s. dollar against the yen. we're down 1.3%. the yen strengthening 1.3%. 108.28. extraordinary stuff. also, of course, seeing the euro

basically flat today, but that's not been soft recently either. oil prices slightly off today. that big move yesterday still meaning that oil prices are relatively resilient over the last couple days. >> our top corporate and market story this morning is jpmorgan releasing ceo jamie dimon's annual letter to shareholders. among the highlights that we picked out for you, dimon says he's not worried about negative interest rates here in the u.s. he's more concerned about rates actually rising faster than people expect. the baing ceo also warning higher volatility is here to stay. he says liquidity has gotten worse, and the bank has seen, quote, extreme volatility and distortions in several markets. on the fed's bank stress test, dimon argues they're flawed. he suggests jpmorgan could absorb the theoretical losses of the nation's 31 largest banks, arguie ining there for the bigg banks not to break up in the face of all these calls this week. on the global front, some

interesting comments on the state of the economy. dimon warning on economic trouble from a potential brexit. he says years of economic uncertainty would be, in his words, the best-cased outcome from a decision by britain to leave the european union. then as for jpmorgan shares, dimon says he's not proud of the stock's performance over the last decade. he notes shares have, quote, only equaled the s&p 500 since the bank's merger with bank one july 2004, which is when he joined. dimon also points out his firm's stock has far outperformed the s&p financials index and has been one of the best performers of all banks during the difficult period. not during this difficult period. jpmorgan's stock is down 10% so far this year. that's the backdrop for which dimon is going through the global concerns. he also talked about speed bumps coming in china's economy and its transition. >> lots of interesting international factors there. the biggest takeaway for me on the domestic front is he says he's not concerned about

negative interest rate, particularly for a bank ceo. he didn't make quite such a clear call for that, which you might have expected. that perhaps quite an honest take on him. on the u.s. economy, he says it is growing stronger and it's far better than you hear in the current political discourse. he actually says the u.s. economy is relatively resilient, but he says we have serious issues we need to address. the united states does not have a divine right to success. so very interesting read. it's longer than normal as welt, just highlighting all those issues. >> issues on people's mind and the market. can it continue to climb the wall of worry, which is going to be the question going in. some stocks for you to watch today. u.s. steel cutting about 750 non-union jobs. the company has been dealing with a depressed steel market, and that's the story there. the stock reacting favorably. mcdonald's chair andrew mckenna

retiring from the board of directors. samsung trading lower today in asia, this despite forecasting a 10% jump in first quarter profits. analysts predicting the beat in expectations is being driven by strong sales of the galaxy s-7 smartphone. >> honda and u.s. regulators say a new takata air bag death has been reported in texas. this marks the tenth u.s. death linked to a vehicle. tens of millions of vehicles have been recalled worldwide. watch medtronic today. the fda approving its pacemaker that attaches directly to the heart. costco sales rose in march. share price is flat this morning. >> a cloud of uncertainty may be driving many companies to tighten their belts this year. there's a new report out by gartner forecasting i.t. spenting to decline by half a percent in 2016. joining with us more in this exclusive report is john lovelock, vice president of research at gartner.

good morning. thank you for joining us with this data. >> good morning. >> so this is a good gauge on corporate spending. walk us behind the headline numbers to do what you're seeing and how much is related to economic uncertainty, john. >> well, a great deal of it is actually related to the economic uncertainty. businesses for this year are facing a lack of revenue expectations. many things are playing into their market. there's a lot of new business they want to do, but they're stuck with an i.t. budget that's flat to down in most cases. >> we've been talking earlier in the show about these currency fluctuations we're seeing both today and year to date. does that hurt spending? does it make it harder for companies to predict where the economy is going, where their currencies are going? >> well, it is the overriding factor in why we have negative growth. negative 0.5 is u.s. dollar terms. if we shift to constant currency, get to tft happening

at the country level, there's a small amount of growth. certainly not a great year. it does affect some of the prices for products and services that companies will pay outside of the u.s. but not so much that it's going to affect their overall spending. the key thing here is, though, companies have to shift from the analog business they're doing now to a digital business. in order to feed those new projects they want to do, they actually have to get to spending on some of the stuff they're already doing. so they're looking at cost optimization in order to fund spending on new initiatives. >> can you talk more about where the intending is happening? for investors looking to pick winners and losers out of this report, is cloud still getting the most attention and the most dollars? cloud mobile versus weakness in pc. >> well, pcs are dropping off this year. we're seeing a lot of drop off in sort of the discretional spending items, mobile phones.

pc stz as are not doing well. refresh is going on in order to support the new digital business initiatives. but yeah, there's a huge shift from things that are asset based to things that are digital based or cloud based. we're seeing these digital services twins actually doing very well. so cloud compute services is growing at about 44% this year. cloud print services are doing very well, about 15%. things that are in the cloud, like cloud compute, like print, are all doing very, very well. things that are not, a little less so. >> john, thank you for joining us with your findings. >> you're welcome. right now for this morning's top trending stories, 20,000 ivanka trump brand chinese-made scarves are being recalled foin

standards. the scarves made entirely of rayon are a fire hazard. >> i don't know which is worse, that they're made in china or that they can light on fire. both pretty bad. >> it's not ideal for mr. trump. >> not ideal. facebook ckerberg attempted to flex his company's live streaming muscles yesterday. after a few minutes of talking to the camera, he stood up and the stream went down. facebook told cnbc there was no technical issue here. they decided to shut down the feed and change locations. though, the headline was facebook launches a live video product and runs into some malfunctions. everybody's competing in this space. >> do you know what the other takeaway is? we're meant to think facebook, google, these tech companies have really great offices to work in. looks pretty shabby. >> looks like a bank. >> looks pretty compact. where's the table tennis table,

all these bonuses? taco bell is working on a robot to place your order. the artificial intelligence system called tacobot responds to questions online. i hope it works better than microsoft's latest. happy national beer day. lager turns out as the nation's most popular style, representing more than 80% of all beer sold by volume, according to anheuser busch inbev survey. tina fey is this year's celebrity americans would most likely want to have a beer with, narrowly beating out jimmy fallon. i'd like to have a beer with tina fey. i hate beer though. >> america has so much choice on beers. it's like a wine list of beers every time you go into a bar. >> craft beers. it's true. >> crazy stuff. we'll have to have one today. >> after 5:00 a.m. >> enjoy it responsibly,

everybody. coming up, today's must read stories, including ge ceo jeffrey immelt fighting back, telling us what he really thinks about bernie sanders. [alarm bee] ♪ ♪ the intelligent, all-new audi a4 is here. ♪ ♪ ain't got time to make no apologies...♪

welcome back. politics and corporate america colliding this morning, all over the op-ed pages. general electric ceo jeffrey immelt defending his firm after recent harsh comments from

bernie sanders. immelt writing in "the washington post" today, bernie sanders says we're destroying the moral fabric of america. he is wrong. this comes after sanders cited ge as an example of corporate greed at its worst. immelt writing, ge has never been big with socialists because it creates wealth and jobs here in the u.s., not just overseas. he also responded to the tax dodging accusations. repeating a lie over and over does not make it true. we pay billions in taxes. the u.s. tax system has not been updated in 30 years and isn't designed for today's economy, which is why we support comprehensive tax reform, even if it raises our tax rate. >> there we go. >> it was a pretty strong defense. >> pretty strong defense. as we said earlier, interesting to see what effect it has on voters. does corporate america have much sway in voters' mind in this election. >> i guess he felt he couldn't take it sitting down anymore. had to speak up for ge, which

has generations and generations of workers, 125,000 workers. that really hit home. >> are his workers around him and go with what the ceo is outlining in terms of what candidate to go towards? we'll have to see. >> although, they probably wouldn't enjoy being bashed by bernie sanders. we have some other must reads today. a lot of good choices. another corporate executive sounding off on politics. ""wall street journal,"" my pick. to be pill laired as deserters when we're trying to stay competitive on a global stage so we can continue to invest in the u.s. is wrong headed. government policies should encourage investment certainly and job krcreation. the new rules show there are no rules. we were waiting for the fallout from the treasury's latest

rules. also coming to the defense of sort of populist opinion that they were doing this merger just to save money on corporate taxes. he was going into how much innovation comes out of these big pharma firms, not to mention the job creation. >> you can understand his angst overall because his first duty is to his shareholders. >> he was saying the u.s. is uncompetitive and favors overseas companies. >> my pick is also in "the wall street journal." it's titled "the not-trump gop rises." it's outlining that trump has 743 delegate so far, but the total non-trump number is 897. yes, he's ahead, but against the united rest, he's not. in that light, karl rove writes, mr. trump's conduct is not helping his own cause. in particular, it's pointing to the fact he's always so pointed and so much attacking these other candidates that if he doesn't get that majority, everyone, whether they voted for kasich or rubio or cruz, they're

going to unite against him in terms of the second round of voting at the rnc, if we get to that. in that sense, although he's got the most delegates, the total number of other delegates won by others is much higher. and those people are going to unite around him because he's always so aggressively against all the other candidates. >> although, the karl rove math in recent years hasn't been that sturdy. we'll see if it turns out to be right this time. we're approaching the top of the hour. that means the team is getting ready for "squawk box" in new york city. andrew ross sorkin joins us from new york. we know you like the morning must reads. we gave you three to choose from. >> the jeff immelt one i thought is fascinating. i'm going to add another one, but it's not really a newspaper. the jpmorgan annual report. and actually read jamie's letter. you were mentioning the inversion thing. if you read not just that op-ed

you were referring to but just "the wall street journal" news story with the quote from brent saunders, who runs allergan. when he says that the rules are un-american, i sort of shook my head and thought, what are you thinking? to me, it's more un-american in an odd way that he lives in america and yet pretends he runs a company that's based somewhere else. >> yeah, in ireland. he made those comments on "squawk on the street" yesterday. >> i thought to myself that the comment itself seemed so familiar. that's where it came from. >> there you go. >> anyway, we got a big show. i want to tell you, the biggest part of the big show is in the 8:00 hour. diane von furstenberg is going to be here. she is a businesswoman. we're going to talk about business with her. but we're going to talk about fashion and everything else. >> andrew, we look forward to that. that's coming up in 11 minutes'

time. "squawk box." and of course also got to watch "squawk on the street" at 10:00 a.m. still to come, the markets rally after the fed minutes signal several officials were reluctant to raise rates as soon as this month. so when might the fed take the foot off the brakes? we ask ellen zentner from morgan stanley. she joins us next. don't go anywhere.

the dollar hitting a 17-month low against the japanese yen this morning. also watching futures pointing to a lower open with dow futures now showing a more than 80% decline into the open. s&p futures down ten. joining us now is ellen zentner, managing director at mohr dpan stanley. when i look at the jamie dimon shareholder letter, he talks about the risks in china and brexit. the risks are coming from overseas. the theme remains resilience of the u.s. economy.

do you agree with that? is that why our market is doing better than the rest? >> that's the theme. it's been the theme for about a year and a half now. key in the minutes is when the fed says we're data dependent, right, they clarified in the minutes that, that data dependence dependent si also means what's going on abroad. political actions abroad. fiscal policy, monetary policy abroad. when you have got that big of a world, financial conditions and other that you're looking at, the policymakers here are bufted every single day by what they have to take into account. we've never been in this environment before. this is a first for a lot of these policymakers. it's keeping things very uncertain. >> are you surprised by the level of effect that that change in sentiment from hawkishness to dovishness has had on the u.s. dollar? extraordinary moves when you consider what the japanese bank and european central bank are

doing, that we've seen almost another 1.5% move to the upside today when we haven't changed policy outright. >> true, but now the dollar had reached a 14-year high in january. so it has a lot to fall. we had a very sizable pullback last year in march. now we've dwarfed that in terms of the pullback. as you know, when you're falling off a cliff, there's a lot further to fall. i think that there has been a bigger fundamental shift in the thinking of policymakers. we saw hints of that leading up to the march meeting, where several of them were talking about maybe potential growth is a little lower. maybe full employment is lower than where we think it is. and it was more of that fundamental shift that brought the dots down, the path of policy down as much as it did. that's a pretty big move for these policymakers to go from four hikes to two. and that is directly impacted the dollar and could lift growth in the second half of the year if this lower level is sustained. >> that's just what i was going

to ask. with the resilience in the u.s. economy and the better job creation that we've been seeing, why isn't it enough to lift corporate profits, and when does that change? >> productivity is really key to corporate profits. they just have not been growing their bottom line organically. a lot of those tied to the fact that, yes, the consumer is moving and shaking in the u.s., but aggregate demand is still a lot lower than it was before. we've been driving profits for years up until now by scrubbing labor costs by providing share buybacks and dividend increases. m&a activity remaining strong. at what point do we start to reach the end of that pipeline? credit conditions are getting more difficult for corporates. at some point, productivity has got to pick up. from a macro sense, that's the driver of profits. >> how do you do that? >> you do that by investing in equipment, by investing in your people, by raising labor quality in the u.s. unfortunately, the majority of jobs we're creating are still at

that very low end of the pay scale, low producing areas of the economy. so it may be that we're going to be stuck in this sort of low profits earnings recession if you want to call it that for some time. >> what's the number one risk for the domestic u.s. economy that's still outstanding? >> i think the number one risk -- and this is what gives policymakers indie jegs. something is going to knock us off track from overseas. that makes it feel like it's not in our control. we have a perfectly good domestic expansion going on in the u.s. those risks will be mitigated if the dollar stays sold off here, if energy prices remain supported but low. the sense is it's going to be something from out of china. it's going to be a brexit. it's going to be something that tightens financial conditions, chokes off credit conditions here and then drags us down. >> ellen, we're going to have to leave it there. thank you so much for joining us. >> brings us to what we're watching. dollar-yen.

>> big moves in that today. what does that mean for people's belief in central banks' control of the economy. that's it for "worldwide exchange." "squawk box" is next.

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good morning. ceos are sounding off in a big way. a warning from jpmorgan's jamie dimon. he says volatility is here to stay. and ge's jeff immelt is also firing back at presidential candidate bernie sanders. he says sanders was wrong when he said ge was an example of corporate greed at its worst. and and it's the best shot you can hit in golf. the hole in one at the masters par 3 tournament. there was not one, not two, but nine aces served up yesterday. the video you have to see. we've got it straight ahead. it's thursday, april 7th, 2016. "squawk box" begins right now.

live from new york, where business never sleeps, this is "squawk box." good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with andrew ross sorkin and brian sullivan, who's here nursing a shaving wound for the last hour and a half. he won't be smiling. he won't bei ining cracking jok. >> i cut my lip shaving. bleeding for two hours. i just want to throw it out there. >> he needs a stitch. >> i had a witch doctor. anything. >> i saw you bleeding on the street as i was pulling up this morning. >> did you really? >> i did. you were standing there getting coffee. i was like, oh, what happened? okay. no smiling. joe is off today. we're going to talk more about a lot of things that are happening this morning. let's get that out of the way off the bat. equity futures this morning giving back a little ground. of course, the dow was up by triple digits yesterday. right now looks like the dow futures are down by 79 points. s&p futures are down