good morning. global markets on high alert. currencies swing as brexit fears creep back in. don't drop your iphone. why now is not the time to invest in another apple device. plus politicians sounding off. fbi lets hillary off the hook, but republicans cry foul. it is wednesday, july 26, 2016 and "worldwide exchange" begins right now. >> good morning and welcome to worldwide exchange. i'm say ra eisen. >> i'm wilfred frost.

we're back. back together. it literally feels like months. >> it has been. >> what great stories to cover. >> absolutely. we'll show you what they're doing this morning. u.s. futures under pressure after a selloff yesterday that sent the dow down a little less than 1%. dow futures down. s&p down 7.6. nasdaq down 22, but all the action has been in government bonds. a massive rush in into this safe haven treasury debt. look at that 10-year treasury note yield. we are in record territory. i think japan's long-term bond went to zero this morning. it is unbelievable. >> record bond buying across the board particularly out of uk. that out of fear, not confidence. i wonder when we get a moment that we think this is crazy. >> every time you think that, it continues. it's the trade everybody has

been wrong about. >> the reason we don't see it sell off is we're not seeing inflation. i wonder if the uk will be the first one, not immediately, but with what you're seeing in the pound, do we see inflation pick up and if you do see that, what will happen to these bonds. >> that's the risk. the massive snap back. so far, not yet. >> we see mark carney more easing and that helps the bond trade even further. what does it mean fortune equities, hasn't meant positive moves today. mixed in european trade. the ftse 100 outperforming relatively down. benefitting from the lower pound. let's dive in just very quickly on italy and one bank in particular. bank this is the three year chart, big moves over the year or so

headlight the problems with the italian banks. montepaschi. up today. it's been a short selling ban imposed on that bank in particular. italian banks the most short term affected by brexit all be it existing problems. not creating fresh problems. >> good asian trade we've seen a bit of selling there, but not guilty as pronounced as you might have expected given the big fall no oil prices. >> the broader markets show you the flight to safety as well. check out gold rallying to a two-year high. up again this morning. 12.70. silver has also been soaring. the real action has been in the

british pound. continues to get pummelled this morning. lowest levels since back to 1985 for the british pound. got all the way down to the 1.27 region. the pound continues to bear the brunt of the selling. the fear and negativity. i would point out quickly the japz is yen is stronger by a percent. a level at which people say the bank of japan could step in and intervene if the yen gets too strong. it looks like the markets are pushing them this morning. let's show you oil. a 5% slide in the price of oil yesterday. that didn't help the equity markets. energy was the worst performing sector. wti down. brent down to 47.73. >> comes off the back of mark

carney speaking yesterday suggesting more easing to come. interesting cartoons in the paper today. partly because he suggested more easing, but a speech to calm markets and he seemed to strike a tone of i told you so with this. it's still interesting to see. this is manifesting very much in the uk bond market. the equities are getting a boost off the back of it. >> how destabilizing is the drob in the pound. yes, a weaker currency can be a good thing for the economy and experts as evidenced by some of the big company there is, but this kind of record move unprecedented move, that has got to cause some negative problems. it erodes the purchasing power of the british. could have a real impact. >> the key is the moment markets are still functioning well. no massive sort term fallout. you focus on big inflation in three, six months times.

in terms of equity, it's the ones with exposures to minors to the likes of fwoegold and silve right, appear of economic reports and some feds speak fill up today's agenda. the gap is expected to have widened in may. at 10 a.m. we get the service injectii ind index. speaking today while wall green boots alliance report before the opening bell. outside of the world of business, breaking news this morning, oscar pistorius has been sentenced to six years in prison. that's lighter than the 15 minimum sentence for the murder of his girlfriend in 2013. he's already served 12 months. either way it feels like a very short sentence to me. >> much shorter than the 12 he could have gotten. >> as we went for the minutes

that's due out this afternoon, bill dudly offering some insight to the federal reserves. the policymakers can be patient due to low inflation and uncertainty over pos pekts for the u.s. economy including britain's vote to leave the european union. said the brexit votes is among the cloeds on the horizontal for the u.s. find out who else is taking a cautious approach due to the brexit and other headwinds later today. this echoes very nicely my conversation with fisher. . these two are the core. they're the closest to janet yellen. coming out saying it looks like there's not going to be a big impact. it's a little early to tell that. yes, last week was a good week. the stock market jumped, but this week is starting off on the wrong foot. we'll see. >> exactly as you said for the fundamental economy.

you come back to the size of moves you see. they're not being replicated across u.s. equity markets for example. not anymore. they did on day one. that sugge >> impact is going to be on europe. that could spill over a lot more exposure for u.s. companies and u.s. trade when it comes to the europe relationship, not to mention some of the financial risks around that. >> absolutely right. interestingly in the shortst ii saying this is a uk problem, not a u.s. problem. it is also down since brexit. >> the political uncertainty there doesn't help. >> right. more on the fallout from the uk vote to leave the european union. a third fund has held withdrawals.

that brings the total funds frozen to almost 12 billion dollar of assets. aviva, standard life have had to close property funds at the moment. all react accident negativelily again today. i've got a must read come can go up on this topic later on in the show. distancing the comparisons to 2008. a lot of different factors, but of course every day trading in long-term property funds is tough to deal with when you have people making withdrawals. meanwhile theresa may winning the first round of the uk leadership vote. as a result both stefen crabb and fox dropped out by default. stefen crabb decided to back out. both of them backed theresa may. she is now certain to be one of the final two. andrea fighting to be the other. >> you might have another female prime minster. >> we might have a female

president as well as. they could become best buddies. >> the fbi say ss it launched 30 undisclosed probes of insider trading. the office has about 50 ongoing investigation. increase in cases with u.s. prosecutors in manhattan charging 1 1 people this year. the u.s. security office --? you're in the market for a new iphone. wait a few months. getting rid of the entry level 16 level when it launches the 7 in september. the new starting point will be 32 points. adds new and improved features to use more storage. several reports says apple is getting rid of the head phone jack on the oi phone seven.

>> they're going to change the dock for headphones. we're all going to have to buy new head . >> that never held enough storage. always a mistake to buy the entry level anyway. you try to save money then you buy it and regret it and have to pay extra every month. i know from experience. >> stocks to watch today tesla says it didn't alert u.s. safety regulators about a crash in may involving the auto pilot feature in one of the cars until nine days after the accident. the company is defending the news not to make the news public. the national highway traffic says the investigation is active and wouldn't comment further. the stock down another 2%. twitter twitter is naming brett taylor to his board. he is the start up of.

he worked at google where reco-created gog the maps. >> possible sell to one of the several suitors throw. san if i sanofi. san if i is partnering with the pentagon to speed up development of a vaccine for the zika virus. gives access to a promises new treatment that's produced positive results in mice. finally. when we come back, commodity prices in focus today. john kilduff joins us next. >> as we head to break, sending out birthday wishing to former president george w. bush. he earned an mba from the

business school. part owner of the texas rangers and sold his share of the team for more than $15 million. all three facts i did not know. thank you so much producers. we'll back in a couple of minutes. we mean how can we help? we mean what can we do? we mean it's our turn. to do our part. to serve you, for all you've done to serve us. ♪

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asia. we saw strong support from core save hacven plays outside of trade. our local bond yields touched record lows today. we'll get more on that in a minute. i want to show what led the equity declines in asia. we saw a drop of near 2% here. our map actually catches this well. as you can see a 290 point decline. early on in the wake there was some talk we could see some potential intervention to try to curve a lot of this brexit volatility, but we haven't seen that yet, but on our wall right now is what could actually force the boj's hand. we continue to see significant yen strength. of course this being a key beneficiary of that safe haven. the yen strengtheneniing to tha

100 level. we'll keep an eye. now we go to europe. louisa bojesen joins us. we got excited that draghi was speaking today and then we found out it was about statistics and granular data. >> that could be a sigh of relief. talking about record low yields in his part of the world. here in europe, germany, uk, suede d sweden, france, denmark. the list goes on we're looking at record lows across the board here in europe swep. we're seeing all the equity markets trading in negstive territo territory. some pressure seen when looking within the sector. some pressure seen especially on banks still insures and autos off 2.6%. the worry being whether we're heading into a. the epicenter still of this market action that we're seeing. you've got aviva. you've got mng.

standard life. all move to spend dealings in their property fund amid increasing fears of redemptions especially in commercial real estate. the three hold 9 billion pounds of assets guy. >> let's check in on oil prices. a big fall yesterday for wti. join iing us to discuss more. john kilduff. >> good morning. >> thanks for joining us. a big selloff yesterday. to what extent is this financial market driven with the rebound we've seen in the u.s. dollar. >> it's partly oil being taken down with everything else on the moment with the brexit fears to a degree. interestingly enough oil is very react ichiro ive to the currenc it's a mixed bag for the dollar.

we're up big time gikbens the pound, but down against the yen. in that regard, oil is short of treading water. there's bigger problems out there beyond the brexit fears and you really have tro go with the fundamentals in the market in terms of asian demand outlooks. and the big star of the complex was supposed to be gasoline. now we're finding out it wasn't as great as we thought it was earlier this year. the numbers might not hold up even p for past several weeks. now we're passed the 4th of july holiday where it generally heads south. >> given what you're saying, what explains the period of stability that we've seen in the price of oil. the fact we just came off the best quarter since 2009 and even after the brexit vote, oil held up near 50. >> part of it has been a fundamental story. we did get supply disruption

events. the worker strike scared the market. what's going on in libya and nigeria. a sense in the market we were coming back into balance that we were going be able to work off this glut. i don't see it getting worked off. storage tanks around the top. there's overproducie ining diesd over producing gasoline. we're seeing that hit up around the world now. >> have brexit related selloffs of oil been overdone. the uk is 3% of the global economy. it shobt be affecting oil prices, should it? >> not sho much. it's so much uncertainty right now. i've heard others say this is something that hasn't started to kick in the process yet. it's going to take two years. it's hard to see the eu punishing the to uk to such

degree. they worked so hard to build something here. it's hard to see them over this point of focus to throw out the baby with the bath water, if you will. >> what's the next big event risk for the price of oil. >> key level we're nearing right now is 46 dollars. it held up twice pretty feiercey and got nice rebound off of it. what you're going to see over the next several weeks to watch is the economic data out of china. not sure why they're letting the yuan depreciate as much as it did. there's bigger problems there than we ever thought because this is what they're doing. that's going to be bad for oil. i'm watching closely the chinese data. we already know the japanese data is not good. asia is the keef demand ser. i talk about how they're the equivalent on the flip side of things how the saudi are the swing producer. asia is the key in sort of demand. thingsic up there, it gets hot

there economically. that's great for energy demand. until you start to see that, you just can't in my view. >> thank you very much for joining us this morning. still to come, the fbi says it won't recommend charges against hillary clinton for using a personal e-mail server while he was u.s. secretary of state. that's not stopping criticism from republican leaders and donald trump with the latest from the campaign trail coming up next. the face of their business was tellers. then atm's. today it's their mobile app running on the ibm cloud. across every transaction, the hybrid cloud helps their data move quickly and securely. our clients are building out features and pushing updates faster, on five continents. with the ibm cloud, they can move at the speed of any start-up.

welcome back to "worldwide exchange." the fbi says charges will not be filed against hillary clinton for using a private e-mail while secretary of state. edward lawrence joins us from washington with the details. >> good morning. exactly hillary clinton put out a statement saying that the fbi investigation is now over. she considers it done. she is not yet publicly talked about this decision. >> fbi director james comey finds himself in the middle of a very contested presidential race. he announced the fbi will not recommend charges against hillary clinton, but calls her actions with classified material extremely careless. >> although there is evidence of potential violations of the statutes regard lg the handling of classified information, our judgment is that no reasonable prosecutor would bring such a

case. >> comemy says sanctions would have been placed if that person was still working in the state department. clinton did not address the fbi's conclusions as she campaigned with president obama in charlotte. >> someone who has never forgotten where he came from and donald, if you're out there tweeting, it's hawaii. >> the bottom line is i know hillary can do the job. >> republicans hope to capitalize on the strong language. >> it's a disgrace. she is laughing at the stupidity of our system. >> donald trump called the system rigged. >> she was guilty and it turned out that we're not going to press charges. it's really amazing. >> he again raised the question of clint's judgment. >> and the investigation has been turned over to the attorney

general for a final decision on if charges will be filed against hillary clinton. wilfred, sara. >> edward, thank you very much for that. still to come this morning's top stories and market action. plus, tell me what you want, what you really, really want. a remake of the spice girls. going viral preventing awareness of a major global issue. we'll discuss that and more coming up on "worldwide exchange"

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. good morning. global markets on high alert. brexit fears creep back in. figures out the fed. we are waiting on the last meeting. loto. no one won the prize leaving half a billion dollars up for grabs. it's wednesday, july 62016. you're watching "worldwide exchange." >> good morning and welcome back. i'm sara eisen and i'm wilfred frost. >> let's check in on this morning's market. futures lower by about half a%. the dow 73. the nasdaq by nine. yesterday all three were down around two-thirds of one% or a

little more. the big action of course over the last couple of weeks remains in bond markets. record low yields so across the curve, across the world indeed as well, 1.328% on the u.s. 10 year this morning. >> out of global bounds. the action of trading in europe. we're looking at more than 1.5 decli decline. ftse 100 doing the best of the group in part because the accompli british pound continues to tank. the ftse 100 as far as the italian stock market down 2%. some of these down and really caught until the eye of the storm post-brexit. asia overnight also was pretty much red across the board. the dollar yen is getting

awfully close to breaking the 100 level. that's a stronger yen that's been harmful to the japanese stock market. hong kong finishing lower. shanghai comp managing to rise about three tenths of a percent. >> it is down significantly since brexit. >> all that weaker pond. >> the ftse 250 are suffering. broader markets let's have a look at gold prices rallying to a two year high. 1372. it's the pound that's a big move. we hit a fresh 31-year low overnight. we dipped below the 29 handle. just above that at the moment. oil prices have a quick look at that. we saw a big fall yesterday. wti fell hit lg 46.

just below that level at the moment. falling half a percent again, 46.45. >> what really stands out is the sub zero yields you're seeing across the bond curve. whether it's in japan, or switzerland, or record low yields in the united states, the dash for safety when you didn't think people would have the demand. especially with mark carney and the bank of england getting involved after the brexit and this idea we could be heading for a lower leg in economic weakness. >> i think the best way to highlight how crazy these moves have been, the uk where the move has been, on the 10-year, this has come as the ratings on the uk outlook has been downgraded. >> which happened in the u.s. too. every time that downgrade the credit rating, people buy. >> it's building up a bubble of some form.

it's not being bought because of fundamental strength. it's being bought because of fear. it's something to keep an eye on. >> they're willing to take the risk which just shows you how much demand there really is. the great distortion continues. a pair of economic reports and some feds speak. today's agenda. the gap is expected to have widened in may. and at 10 a.m. we'll get june ism services and at 2:00 p.m. it's the minutes from the last federal reserve meeting from brexit when they were worried actually about the impact of brexit. will be speaking today. and wall green boots ace license. >> ken, good morning to you. thank you so much for joining us. a couple of big factors over the last couple of weeks.

>> identify heard. >> interestingly we may have not talked enough about oil prices. >> oil has worked it back to a spot where people are not so nauseous anymore. i think we're going be range bound in the oil market in the mid 40s and i think the markets will probably be okay with that. especially after what we've seen earlier in the year, but yeah oil still remains a very big story and demand as we know coming out of the july driving season, july had is usually the peak of driving here in the states. i'm cautiously optimistic that we hold this mid 40s range. >> i noted your note you like u.s. small caps. that makes sense. that thesis. they don't get a lot of revenue from uk or europe. they don't have to deal with currency swings and yet during this periods of risk, they get hit harder than some of the bigger perceived safe haven. >> you just gave the entire thesis for looking at them.

they're less exposed to international by various studies. it's about 10% of their revenue comes from overseas and the old adage buy them when they're crying. this flight to quality, people don't want to have ekts poe sure to what they'll call risky assets. we have in our mind that small means risky. in my cases small companies are not nearly as these big multinationals that have currency risk and a lot of small companies have done a lot to beef up the balance sheet because they can't borrow money. >> are you buying on the dips. >> i absolutely am. >> would i overweight them. no. if you don't have them in your portfolio now, they've been underperforming for a while. does that thesis apply within the big caps on a sector basis. should we be buying the stocks that have been hit recently. financials down 6% for the year. should we be buying them now or

staying in the safety. >> i'm always of the mind you have to buy things when thairp out of favor. you have to have a longer horizontal on them. the financials will do well. the fed is seeming to take rate hikes off the table for a while so they're not going to get that tail wind we were hoping for, but these businesses have not only right sized their models. their balance sheets are stronger than they've ever been and if they ever get lending again, they really are poised to make a lot of money. i think people noeed to be positioning for where we're going, nowhere we're at now. yields are at record lows because oif this flight to safety, flight to certainty, whatever you want to call it. it's not going to stay there. when that rubber band bounces out of there, it's going to be slung shot. >> do you not see the 10-year at 133 today. take your pick of some of these sectors that do bay a dividend

yield now higher than global bounds. >> i've made fun of my dad for the longest time being utilities, utility, utilities and he's been the hero of investment world. we're going to all need electricity and plugging into the utility grid. i think as you look at those as safe havens, they're psychology set for a whole set of investors to say that's where we need to be. i think those sectors are going to continue to do well. >> ken, thank you so much for joining us this morning. an update on the drama. hogan claims made a $200,000 loan to denton. doesn't believe ga wker should

prevent from paying bankruptcy. part of a sex tape on line. tech mogul has admitted to funding a team of lawyers to mount cases against ga wker. >> new viral video set to tyler flowers spice girls hit wanna be is calling to the leader. the lyrics to the song is the same, but the video shows girls what they really want. some messages include equal pay to work. many celebrities showing support. including victoria beckham. she tweeted on, 21 years on, girl power. >> we're old. >> a long time. >> pathetic i like that song as well. >> it's the best. >> google is teaching its self

driving car to share the road. also being taught to recognize hand signals. the car is also able to detect what kind after bike a person may be riding, even if it's a union cycle. i'm not sure as a cyclist i would be that confidence that a self driving car would recognize if i'm turning right or left. >> better that it should be programmed to do so than someone who is control of their own car. i don't know. i still think i would get behind a self driving car. it would be safer than me droifing no matter what. >> maybe. the jackpot has hit a wopping $508 million. that jock pot rapg ranked as th second largest in u.s. history. >> should we buy tickets. >> yes. i didn't get around to buying a ticket. thank god no one won moi jackpot. i've still got time to get one.

>> let's go in together and buy more. >> i'm not sharing. no chance. maybe if i get 508, i'll give you the eight. >> deal. >> comey versus clinton, is it a case of he said she said, a great comparison of both assessments straight ahead. before we head to break, a forecast on the national weather channel. >> good morning. let's take a look at the forecast around the country. two trouble spots. this area. chance of strong storms heavy rain and hail. it's a possibility. meanwhile back into the northern plains and not far from the front range of the rockies have another area of storms. seattle beautiful with a mix of sun and clouds and breezy conditions in dallas which is actually a good thing because it's going to be warm there. expect highs going into the triple digits. warm times for you in atlanta.

maybe a few stray showers. 92 expected in miami and back in new york going with 93. all right folks stick around for more on the other side of the break from cnbc. at the beginning

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it changed the basic architecture of computing... putting a massive pool of memory at the center of everything. and by doing so... it changed the world. it's been a part of every new technology for the last 250 years. everything? everything! this year, hewlett packard enterprise will preview the machine. and the future of technology will begin. see star trek beyond. in theatres july 22. now to our must read stories. those catching our attention. pretty much every paper with hillary clinton and james comey. just a he said she said hillary

clinton versus james comey on the e-mail parking garapractice especially elum iilluminating. she said that back if 2015. comey yesterday, quote, 110 e-mails and 52 e-mail changes have been determined to contain classified information at the time they were sent or received. a lot of editorials out there, just like ten in the "washington post" alone about whether this is good for her or democrats because ultimately she's not going to get indicted or the opposite that republicans are saying it's not fair because he clearly showed there was a gap in what she said, but just read the he said she said if you're a voter because clearly voters need to know as they're electing the next president. >> clinton, quote, comey, quote.

what about eisen quote. >> i wasn't quoted in there. >> the conclusion is you should read it because the statements don't line up. >> but the story is worse off without testimohe eisen quote. >> my pick in the financial times. titled property fund here we go again of course it comes off the back of three funds in london closing to redemptions because of too much interest in people pulling out. standard life, aviva, all closing around. it says there are key differences between 2016 and 2008. a regional political event. not a global financial crisis. leverage in the sector had been more exposed. lending has halved since the financial crisis according to the bank of england. yes it's a worry. yes it's a thing people are pointing out. is brexit going to lead to wider

financial con takenon th contag . this article saying no, it's not. >> it does feel like there are certain parts of the economy in the uk, we felt this when they were there too, that are going to be hit harder than others. property, commercial real estate. that is one in the cross hairs. some of those stocks have been decima decimate. >> duane:. >> the commercial property has been soft anyway. brexit speeding that up. it's catalyst the sector doesn't want. it's not the only cause of the instance, but certainly closer of three fund has grabbed the attention. we're approaching the top of the hour. that means the team is getting ready for "squawk box." joe is new york with a look at what is coming up. >> how is it, the first day of the rest of your life. after co-anchors for two hours.

how are you today. >> he missed me. >> his chest was really out. you're feeling good, aren't you? did you go on closing bell yesterday do -- >> i didn't joe. i have to say it was a real privilege and i hope we'll do it again sometime, but nothing beats being back alongside mrs. eisen. >> that's nice you played along. it was great having you here. people that say we could see par, that's like 28 more ticks. if the market goes down every time, it's going be a problem. i'm not saying it will, but you know, i thought 132, 133 was going to be it. i'm talking about the pound. >> i know. >> i guess this is you get the initial shock, you get the nice rebound and now everybody is taking a step back and saying wow it really is going to happen and what to we need to do. that's what we'll be dealing with along with whatever we see on friday. and, of course, we've got the

political backdrop which was everybody is talking about that. that's something happened yesterday? >> yes. so i guess we may touch on that a little bit as well. >> i'm surprised, joe, that you didn't comment on my must read. he said, she said in the wall street journal. it's a good one. the straight facts. goes through what she said all last year about the e-mails and about what comey said yesterday and it's all you need to read. >> i watched someone talk about that and put together the 30 second trump spot which has her saying something and comey saying something skpst five things that are polar opposites. you probably will see that ad i think. >> you don't have to thank me.

i have to do this. >> you love doing this. don't reveal the truth. >> i do. >> he's very right about the pound though. >> 127 it went to overnight. >> yes. >> we're waiting on the rate hike details. anthony chan when we come back. you're watching cnbc first in business worldwide. we mean what can we do? we mean it's our turn. to do our part. to serve you, for all you've done to serve us. ♪ ♪

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shipped from here, on this plane flown by this pilot, who owns stock in this company, that builds big things and provides benefits to this woman, with new cabinets. they all have insurance crafted personally for them. not just coverage, craftsmanship. not just insured. chubb insured. welcome back to worldwide exchange. have a look at futures right now. the dow expected to open 50 points down. joining us to discuss markets now, anthony chan, chief economist at j.p. morgan chase. >> do good morning. >> thank you for joining us. once again, sterling being hammered over the last 24 hours. do we feel the contagion for u.s. is going to be much more muted.

>> i think it's still going to be muted. the pound is down 14.7% from 150 at one point right before the vote before remember there is a lot of uncertainty as to who is going to be the leader and that is very fluent and the currency is taking it in the chin. that's really the; ly equalizer this brexit situation. >> you're an economist. what is the translation of an economy that plunges 14% in less than two weeks. >> it's going to have inflationary impacts, when they kborpt stuff it's going to be a lot more expensive. prices will start to rise. it will be one of the first economies that will experience inflation in a world where we have floebl inflation. >> is inflation going to be a catalyst to see markets in the uk to suddenly change in direction and start to see yields suit up again. >> i think that will be the first ground zero where you start to see yields picking up and then of course it will be a function of what ore central

ba -- other central banks do to react to that. will be focused more there. >> as we wait for the minutes this afternoon, stan fisher the vice chairman told us on friday it's too soon to see the brexit impact on the u.s., but by the july meeting the fed should have a clearer picture of how it will impact the u.s. what's the fed response to that. >> definitely to soon. >> came before brexit. i take stan fisher at his word. if you recall last year in september he also indicated it was not appropriate for the federal reserve to act because of the uncertainty in china. stan fisher is focused on global economic conditions and now we have the brexit situation and the potential spillover. the fed is not going to move for a while. >> we've seen great performance

in precious metals, gold, silver. does that continue from here. >> this is the sweet spot for gold so we look for gold prices to continue to rally this year as all this uncertainty continues to play its out. >> what if the fed goes sooner than the markets expect. that's not necessarily the message we're getting from the federal reserve. they're saying wait and see, there's some uncertainty, but we got a few good job reports and inflation moves closer to the target rate, which are it is doing, why wouldn't we see nor by the fall. >> this is a federal reserve that tiptoes through the financial markets and wants to make sure everybody is smiling. >> in other words, they're going to be dictated by the market. >> i think they will be influenced. i don't know if i want to use the wordic dated, but heavily influenced. >> we look at the bond yields around the world, we mention the uk as being one that could turn around. are there any areas where things

are overdone or continue to see sachb buying. >> you have a 10-year bond at 133. it's almost $12 trillion of government bond out there with negative yields. >> anthony, thank you so much for joining us. anthony chan, chief economist at j.p. morgan chase. >> about a minute left. a few things to watch today. british pound has to be on the top of your agenda. overnight it went to 1.29. it continues to get absolute pummelled as the prospects for the economy. >> also keep an eye on oil prices because it's not just brexit moving things over the last week or so. down sharply yesterday. down a bit today. maybe that will allow a little bit of reprieve for the u.s. markets. >> i would say gold and silver

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good morning. global stocks under pressure again today. the pound trading at a new low. we'll have a full market run down straight ahead. tesla is waiting criticism for waiting nine days for telling regulators involving its auto pilot feature. the fbi letting hillary clinton off the hook, but getting a sharp rebuke for her private e-mail server. republicans, politicians, unbelievab unbelievable.

they're apparently crying foul. "squawk box" begins right now. good morning. welcome to "squawk box" here on cnbc. along with joe kernen and scott walker. just a negative open. nasdaq lower by 21. s&p lower by six. in asia we also saw selling. a weakness around the globe generally speaking except for shanghai. the hang sang and low. european equities lower across the board. the dax is lower by 1%. the ftse is lower by quarter of percent. mib 1.5%. we're not showing you yields at that