products at a great price with over $500 in savings. call today and ask how to get these savings plus a $250 prepaid card. comcast business. built for business. good morning. u.s. stocks sore to record high. europe equities trying to add gains. the leaders and where the markets head from here. straight ahead. plus the short story following in fact terror. says there's big money to be made. his strategy and how you can profit from it coming up. and happening now, david cameron leaving 10 downing street just minutes ago preparing to officially step down adds british prime minster and hand othver to theresa may.

an historic day and we're bringing you a front row seat. it's wednesday, june 13, 2016. "worldwide exchange." >> good morning. and welcome to "worldwide exchange." i'm sara eisen here in new jersey. >> and i'm wilfred frost live from london in 10 downing street as the uk prepares to welcome theresa may as the second british female prime minster. >> it is an exciting day. we're glad to have you there though i miss you here. let's just check on the global markets wilfred. owe closed at record highs for the s&p for the second day in a row. this time for the dow as well. s&p futures flat to up. the nasdaq by the way closing at the highest level of the year and going into the black for

2016. after the record rally that sent yields to record lows, we've seen a reversal this week out of treasure yields higher. they hit 150 on the 10-year yesterday. backing up a bit. we'll keep an eye on it for you. european equities losing some gains. they have rallied sharply. got a little back. a limit action this morning. the german dax is flat. france is in the green. ftse 100 barely moving in anticipation of the any prime minster. the italian banks suffering the worst. new data out of china this morning. june exports and imports both falling a little more than forecast. still we did see green ads follw through. the nikkei continuing to build on recent gaining up. broader market, check out oil.

suggesting that the global glut in oil not going away. putting pressure on prices throughout the year. this despite what they call strong demand growth better than expected and steep declines in nono pack production. wti. brent international benchmark is down almost 2%. as for the action in u.s. dollar and rest of currencies, the british pound has been stronger has the british political uncertainty has come to a quicker resolution than thought. the welcome of mrs. theresa may. 1.3249. stronger pound recovery. keep an eye on the japanese yen strengthing a bit. we have had amazing weakness so perhaps just a reversal of that trade. the euro giving back some, 1.10. gold has been strong throughout the year through the this equity rally and held its gains as

well. it's up about.5% today. historic day as theresa may prepares to become prime minster. what should we expect in the coming hours and have you seen the moving trucks yet outside of 10 downs? >> the moving trucks have already been and gone i think as we understand all of his personal belongings have already left. let's pause the markets before we get to the scene here. most importantly uk assets really treading water as you said the ftse 100 not really moving significantly today nor is the pound today, but as you rightly pointed out over the last couple of days, we've come up from the 1.28 to 1.32. the market taking confidence with the new leader in place. just going back to the broader markets of course as you said, u.s. equities hitting record highs again yesterday. the bigger development this week is not what the equity markets have done, it's what you said the bond markets have done.

we have seen that shift to see the bond markets selling and buying equities. almost a traditional rally over the last three days as opposed to the first brexit bounce back we saw. >> and the question wilfred is what has changed fundamentally to underpin that rally. how much of it is a short squeeze, how much has to do with the positioning, the fact that so much money has been yanked out of u.s. equity funds and how much is the fact that hey, we've got a jobs report showing jobs created in the month of june, a big bounce back, a nonrecession nare. number. the business confidence numbers, including small business optimism yesterday has been better in the u.s. economy or is it the fact they're looking at the brexit situation, which was predicted to be very dire for the uk and the european union economies and thinking maybe it

won't be as bad as planned or at least maybe it's going to be lay theed for a while and in the meantime central banks are going full speed ahead to keep everything in line. >> absolutely right. i think that's an important point. the job number on friday in the u.s. and what has happened to the u.s. bond market there's a little bit more confidence in the fundamentals other the last week or so in the u.s. that's not true in the uk. the focus will turn later in the week to the bank of england meeting where we are expecting a little more easing. different situation of course the focus today is on the changing of the prime minster. the head license here the daily telegraph closing comments from prime minster david cameron, as i leave today, i hope people will see a stronger country in place. the daily mail saying may is on the march. not only will we have the second female prime minster, expecting

the cabinet to be populated with a lot of ladies as well. once the cabinet is appointed will be eu negotiations. may will stop migrant crisis. who exactly what exact lip is on the agenda today? first up, david cameron has left. he has gone to pardon mement. we'll have questions starting around 7:00 a.m. eastern time. soon after that, he'll return to downing street. he'll make his final farewell with his family. they will see him travel to bucking ham palace where he'll see the queen and offer his resignation. he'll part from london and move on and theresa may will then go and see the queen and ask to form a government. she'll return to downing street as prime minster and quickly start to appoint her cabinet members. so who exactly is theresa may. she's been an mp since 1997.

she'll become britain's second female prime minster later today. the queen's 13th prescriptionim she does have type one diabetes she doesn't like to talk about too much. she's not obsessed with being liked. not obsessed with reaching the top and got on with her political jobs as they've been assigned to her throughout her career. there's a slightly endeering nature with the way she's relatively awkwardly embraced the limelight. she's seen as someone driven more by morals perhaps than ideology. and, certainly, if margaret was seen as the iron lady, she's being dubbed as the steel lady. negotiations begin on uk's

withdraw from the eu which will be top of her agenda. >> that was my question when it comes to the negotiations. everybody is reflecting back of course on margaret thatcher insisting that britain does not join the euro. that famous scene where she screams no, no, no. they're talking about the britain monetary union. now may has the job of negotiating out of the eu. just wondering what the timeline for that may be now that she is going to be on 10 downing street earlier than expected. >> well, that's great you bring that up. there's a lot of parallels and deep differences when we look at margaret thatcher. europe was the issue primarily that brought down her leadership. and europe is bringing the next female minister to power. you're right she had been campaigning against joining the single market, and now we look to theresa may and the timeline.

when will she invoke article 50. that coming down to the bilateral conversations she's going to have with merkel. if she gets a sense there's any real room to have negotiations before invoking article 50, maybe she'll delay that a little longer. if they maintain their tough rhetoric, she might have to act a little more quickly while the authority from testimony referendum is still strong. at the moment, she cesaid early next year. it will all come down to what sense she gets from the likes of merkel and hollande. >> back leer in the u.s. a trio of economic reports. june import prices are out at 8:30 a.m. the federal reserve, always a fun read. kaplan and harker will be speaking out today.

in terms of earnings getting into numbers. always a good peak at the activity and consumption in china head of that company's plans split. two prominent members of the fed making comments to tell you about. minneapolis president neil cash carry cleveland land fed president, loretta mester saying a change in interest rates will be on the table for every meeting of the fed, but the timing will depend on economic performance. both officials mentioning inflation as a top concern. then there's jeffrey gund lack. the billionaire investor says he's been selectively betting against the s&p 500 and continues to favor merging market bands over high yield. gold is the better alternative

to treasury stocks right now. gundlach. speaking of stocks we'll continue summer sizzling series right now. joins me now with the latest. >> reporter: good morning we continue the list of summer sizzlers today. looking at the top five sectors in the s&p 500 over the past six years so far telecom is the fifth best performing followed by tech at number four. what is number three, consumer staples. consolation grands is the 10.6 return on average. helping transform the company in the past six years. look at the stock. it's climbed more than 900%. another sizzler, monster beverage with an average return of 5%. followed by mondelez.

>> morning star highlights that the sector offers attractive dividends with many offering a 3% yield over that period. and other staple purchases. wolf back over to you. >> yes, indeed. after the break more to come here from 10 downing street. the official home of britain's prime minster. we speak to british political historian to explore it will importance of a handover without an election and what it means for possible further votes and britain's withdraw from the europe union.

at the beginning of the 21st century, the earth needed to find new way to keep up with the data from over 30 billion connected devices. just 30 billion? a bold group of researchers and computer scientists in silicon valley, had a breakthrough they called... the machine. it changed computing forever. and it's been part of every new technology for the last 250 years. everything? everything! this year, hewlett packard enterprise will preview the machine and aclerate the future. see star trek beyond.

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." live from london and u.s. today. we have all the political bases covered because i'm here live outside of 10 downing street. i'm joined now by our guest who is institute of government in uk. she's outside uk parliament. thank you for joining us. just set this up for a u.s. audience. why is it that mr. cameron and mrs. may have to go see the queen today. >> well, it's the way our system works. the queen is the head of state. the prime minster is her principal advisers. in our constitution basically the prime minster does all of the powers that traditionally

used to be with our monarch. it sound quite an old system too many people. it's very different than the presidential system, but it's one that sort of evolved over many, many centuries and at the moment, it seems to have still been working. we've seen a lot of challenges to that system in the past few weeks. >> yes, and to be a fly on the wall to those conversations with the queen later today. of course, as many people particularly in the u.s. have seen. we're changing over the prime minster without animal electi e what are the chances we would see an election quite soon after wards. >> at the moment we're not doing a general election until 2020. we have an act that is much more difficult for a government to ask for a new election. they have to get the support of parliament to be able to do it. there's a few more hurdles to be able to get the general election. there are a lot of political pressures that mean she may want to go early, but a new prime minster coming in this way isn't

unusual. half of our prime minsters have cone p come in a change of prime minster without a general election. it's not unusual, but if she feels she can get a bigger majority in the house of commons, more seats, she might feel it's a good time to go. also because of the pressures of brexit and mow we're going to leave the european and what the new relationship is going to be there might be reasons there she wants a new election, but we'll have to wait and see. >> catherine, what's your latest expectation of when article 50 would be invoked. >> reporter: well, she said not until the new year, i think. so we're expecting a fairly bit of time. you have to remember also there's not been a lot of preparation done within government on this. our civil service we're thinking they would have a good couple of months before september to start working up the options. they've not really got around to

doing all of that work. there's still a lot of work behind the scenes to happen before we're in a good position to be able to start those negotiations proper. >> catherine, thank you very much for joining us this morning. catherine from testimony institute of government here in the uk. coming up the top political stories on this side of the atlantic. u.s. stocks at record highs. the s&p closing high yesterday. they're holding their gains this morning. stay tuned you're watching "worldwide exchange" on cnbc, first in business, worldwide. josh, don't you have friends coming over?

yeah, so? it stinks in here.ou've got to wash this whole room are you kidding? wash it? let's wash it with febreze. for all the things you can't wash, use febreze. ...fabric refresher whoa hey mrs. walke inhales hey, it smells nice in here and trpluggable febreze, with up to 4 times the freshness...

...in one refi. pluggable febreze and fabric re. [inhale + exhale mnemonic] ...two more ways to breathe happy

welcome back and good afternoon. both the s&p 500 and the dow closed at record highs yesterday. we're holding the gains. futures up barely one and nasdaq up two. nasdaq going positive for the year. ending at a high. donald trump expected to announce vp pick on friday. tracey joins us from washington. with the very latest. >> really on both sides, sara. we're told hillary clinton is going to be talking about party unity. there's a lot of speculation of

who donald trump might select soon. >> i don't know whether he's going to be your governor or your vice president, who the heck knows. >> donald trump throwing out hints about mike pence on the short list for vp. >> pence helped trump raise a million dollars last night. >> we're ready to put a fighter, a builder, and a patriot in the oval office of the united states of america we are ready for donald trump to be our next president. >> house speaker paul rayon is a fan even though pence has had trouble with conservatives. >> i would like someone to ensure conservative prince pams will be adhered to and maintained. >> shows trump closing in on hillary clinton. she's up three points. in illinois expected to sell unity among democrats. easier now with bernie sanders on board. >> i intend to do everything i

can to make certain she will be the next president of the united states. >> we need an economy that works for everyone, not just those in the top. not just the millionaires and billionaires, but everybody. >> our polls show nearly 8-10 sanders supporters now say they will vote for clinton. >> meantime the republicans have mailed in down a platform for next week. they want to strengthen gun rights. and they do talk about building a wall with mexico. something we've heard a lot from donald trump, but they're not having mexico pay for it as he does. >> tracey, thank you very mitch f much for the update. the baggage handlers, airplane cleaners and other workers for subcontractor hired by the ierl are seeking better scheduling and the right to

uni unionize. now to sports. baseball all-star games features a sweet send off for one big player last night. david ortiz. getting a hero sendoff after being replaced by a pinch runner in the third inning. ortiz is retiring this year despite having one of the best seasons of his 20-year career. as for the game itself, the american league came out of top beating the national league 4-2. customs workers in brazil will start an strike on thursday just three weeks ahead of the olympic games. pressuring the union to honor the promise to boost their wages. when we come back, this morning's top stories including the drivers behind this stealth stock market rally, plus, david cameron heading to parliament for the final time as britain's prime minster. the world is watching and so

with we. before we head to break, national weather forecast. >> good morning sar have a and wilfred. busy day ahead with a front crossing through the great lakes and midwest. this is going to mean severe weather. we still keep wisconsin in the mix again today bringing parts of illinois including around the chicago area by later today. air traffic delays could get messy. plus in the northeast, chance of a couple of showers. see the usual pop up in the south. a lot of heat. that is the trend. pretty much the peak of the hottest time of year across texas and the southeast. we will feel it. otherwise we've got heat and humidity all across the south and east. by the way, wilfred, for you in london there could be some showers out there today. that's your latest forecast, from the weather channel, worldwide exchange continues after this. the globein under a.

whole communities are living on mars and solar satellites provide earth with unlimited clean power. in less than a century, boeing took the world from seaplanes and if you thoughtcross that was amazing, eyond. you just wait. ♪ igoing to clean betteran electthan a manual. was he said sure...but don't get just any one. get one inspired by dentists, with a round brush head. go pro with oral-b. oral-b's rounded brush head cups your teeth to break up plaque and rotates to sweep it away. and oral-b delivers a clinically proven superior clean versus sonicare diamondclean. my mouth feels super clean! oral-b. know you're getting a superior clean. i'm never going back to a manual brush.

thank you. ordering chinese food is a very predictable experience. i order b14. i get b14.

no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. >> breaking news. david cameron leaving 10 downing street to make his way for the final questions in parliament. he's preparing to officially step down and hand over to theresa may. >> plus, global market fireworks. u.s. stocks soaring to record highs. asian equities extend the rally

overnight, but europe stalls. where the market goes from here. straight ahead. it's wednesday, july 13, 2016. and you're watching worldwi"wor exchange" i'm sara eisen. live from cnbc headquarters in new jersey. >> i'm wilfred frost, live from 10 downing street in the heart of london. >> let's get a check on global markets this morning. u.s. equity futures not doing a whole lot, but keeping the record highs where we closed yesterday. a little bit of gains in the dow up three points right now in the early action. s&p 500 futures up 1. nasdaq up four. extending what was the highest close for the nasdaq of 2016. we'll get some economic data later and earnings really kicking off. as for europe, we saw stocks

earlier higher resuming a rally that we saw in asia overnight. they're flat right now. little change. ftse 100 in pottive territory. that's has been the lagger. it's banks and focus under pressure, the italian stock market down.5%. nikkei extending what has been a strong run for the bulls over the last few sessions thanks in part to the weaker japanese yen and talks of fresh stimulus from the abe government. the nikkei closing higher. the shanghai comp up, but perhaps signs of stablization. as for the broader markets keep an eye on oil. under pressure. 46.15. brent down a little more than that. down 1.7%. the 10-year treasury note yield.

well off that record low. hit 1.50 yesterday. so some selling of treasures has pushed yields higher. we'll see if they stay that way. still historically low. as for the british pound, stronger ahead of a big day for britain today. the may rally, people are calling it. some stability in british politics and earlier a resolution to the problem. has helped the pound rebound from the 1.20 up to 1.3268 where it sits right now. the dollar is weaker. we'll watch that as a risk signal for this market. the euro is stronger this morning. gold holding some of its gains. i'm gikly give you a check on gold right now. which has been going strong all year long considering even with the fakct stocks have fwoen to record highs. some individual stock moves for you to be watching today.

juneau therapeutic saying the fda has removed a clinical hold on drug trial. you can see that dramatic drop for the stock on that news. the se quoia fund has completely exit stake in value leent valeant. burberry fell 3% in weakness in all of its regions, but results were better than forecast. british fashion house is offering a mixed outlook for the year. valero. have aler rojas bought at stake in pineline. handles 110 thousand barrels per day. abbott labs and saint jude has asked for more information about

the merger. extend the waiting period before the deal can close by 30 days. tef have a pharmaceuticals raises outlook. teva. looks like investors like that news. over to you, wilfred. >> sara, thanks very much. we're still here in downing street. i'm joined now by sky news's editor at large, adam bolten. great to have you with us. >> great to be here. >> how crazy has the last couple of weeks of british politics been compared to what you've seen in your career. >> it is the shocking two weeks. in terms of self inflicted wound if you like. this is quite dramatic. what happened was the people voted to leave the european union. that was basically reversing 50 years of political history. because he had argued against

that. david cameron resigned so britain was without a prime minster. and the conservative parties have chosen a prime minster. the favorite candidate all fell out of the race. meanwhile the main opposition party t labor party, all their representatives in parliament effectively in american terms all the congressman decided they couldn't support the leader so they are trying to execute a coop against him. what it means in the end is both parties are changing leader, including prime minster without, guess what, an election taking place. >> certainly a lot of focus on that fact. what are the chances of an election before the current scheduled one in 2020. >> not very high because david cameron changed the rules making it very difficult to dissolve parliament, moving more towards an american tile presidential system of having elections of fixed periods in our case every five years.

it will other reason of course is all the politicians know the voters are angry and so none of them really fancy their chances until they get themselves sorted out. >> lots of comparisons between theresa may and margaret thatcher. is that a fair comparison? >> you can make that comparison in the sense that she's a very experienced politician. she has worked very hard to get where she is, and, of course, she will be the second female prime minster when she is sworn in by the queen this afternoon. sh is not like mrs. thatcher as an outspoken person. she is an extremely cautious person. given the turmoil there are a lot of people in the country thinking a period of calm trying to straighten things out wouldn't be a bad idea. >> margaret thatcher had a great relationship with ronald reagan.

>> i think the relationship is a bit strained with the u.s. remember that president obama came over here said to the british people, don't do this. stay in the european union. american people want thad and the british people ignored him and indeed he came in from quite a bit of public criticism. on top of that, president obama has felt that britain's military contribution has been in the decline during the years he's been in office. donald trump has even questioned the whole idea of nay to so sadly i think the special relationship is going to be a lot leaser. t looser. the one thing i would say is mrs. may, prime minster may will want to do all she can to repair it. >> it will be her job to do that this evening as we change the guard. >> pleasure to be here. >> sara, back to you. >> time for the top friend d trending stories. picked the first one just for

you. dr. naran dr. naran david cameron may be out. the cat is staying. larry spends his day greeting guests, inspecting security defense and testing antique furniture for napping quality. i did not know this, but cats have occupied government buildings in london since the 1800. this is a thing. >> it is a thing. and larry the cat is a big thing. he's been a famous character here in the last four, five years and often seen or pictured sitting on the doorstep and always a lately flurry of excitement when he pops in and out, but he hasn't come out today which is terribly disappointing. if he does, i'll be sure to take a snap of larry the cat. >> adding celebrities on

snapchat had gotten a whole lot easier. lets users follow verified accounts with just one click. celebrity accounts are featured on official live stories and can be added by tapping the celebs user name in the upper left-hand corner. good news for you, wilfred. >> well, absolutely right. i look forward to using that a lot moving forward. >> are you taking over cnbc's snap? i wanted to give you the opportunity to share? i have got cnbc snap today. it's a big day of course and i'm glad to have the snap as well. i'm also delighted to be here on downing street. much of brexit we're outside parliament. the law making body. this is the main executive body where the prime minster lives and down one, 11 downing street is where the chancellor lives. they actually did a little swap in terms of the private residences above the offices because the private residence of the chancellor is a little

bigger. tony blair had so many children they switched it over. the flats are switched above. >> did not know that. on that note, another trending story for you, ma tell is rolling out a new president barbie doll just in time for the presidential election. comes with her own female vice president running mate as part of the first female ticket. available in six different skin tones. she's come a long way since the bikini days of a decade today. amazon's prime day had a bumpy start as customers were unable to add discounts to the shopping cart. the glitch sparked outrage on social media with people using the hashtag, part-tirime day fa

>> hyper loop one who quit the company earlier this month has filed a suit including harassment. thr hyper loop gave jobs to relatives and made financial decisions to pocket money. when we come back today's must read stories from both of us on both sides of the atlantic on both political stories. here's a look at this day in history. the famous hollywood sign was dedicate ed in 1923. it was originally used for a promotion of reality development, but now is a landmark. "worldwide exchange" will be right back. josh, don't you have friends coming over?

yeahso? it stinks in here. you've got to wash this whole room are you kiddin wash it? let's wash it with febreze.

for all the things you can't wash, use febreze... ...fabric refresher whoa hey mrs. walker inhales hey, it smells nice in here and try plugble febreze, with up to 4 times the freshness... inhales ...in one refill. pluggable febreze and fabric refresher... [inhale + exhale mnemonic] ...two more ways to breatheap welcome back. time for the must reeds of the day. cameron's problems are not going away. saying theresa may will inherent a party are little money to spend and the need to attract new voters and it's a refreshing read of all the challenges that the uk faces right now. indeed what theresa may will have at the top of her intro

when she picks up the reigns in 10 downing street and a good summary of how tough her task will be. >> it's a good question. what happens to david cameron now that he becomes an ordinary citizen. will he come back? >> he will remain in fact a member of parolliament. he decided he's staying until the least election. he will be a back bench member. i'm sure in due course many other jobs will arise given he is a fairly young prime minster. 49. the youngest prime minster to be leaving since lord rose berry in 1922. >> did not know that. >> my pick is paul ryan. >> 122 years ago. not 1922. >> my must read is paul ryan's piece. titled hillary clinton is unfit

to handle classified information. paul ryan is speaking out on this issue writing as a presumptive democratic nominee. this month clapper he says has refused my request to suspend these briefings, but the middle eastern people need to know what accountability clinton will face and what safe guards will be put in place to protect this information and he goes through and outlines a long list of how clinton should not be trusted to do so. ryan has increasingly been speaking out on behalf of republicans and his message may be that donald trump isn't perfect, but he's better than hillary clinton and he will preserve the conservative values. that's the message we're getting from the house speaker. he's writing this in this "washington post." unclear though whether he can unite the party which is one of the republican challenges going forward. >> well, absolutely right.

and as we focus on the convention coming up, it will be good to see u.s. politics back in the limelight, changing of course from the focus on the uk over the last couple of weeks. >> absolutely. we are approaching the top of the hour. that means the team is getting ready for "squawk box." good morning scott. >> looking forward to today's show. stocks at new highs. where the markets could go from here. we have richard fisher here for part of the show today. the former dallas fed president. always good to get his insight. mr. fisher, you know is always outspoken too. not afraid to give his point of view on what he think ss fed should be doing. also talk about tesla. there are reports the fcc is investigating not reporting the crash a few weeks back, the guy who was killed in the auto pilot

mode. it's interesting. we had ar have i pit, the former fcc chairman on at noon saying there could be some serious repercussions for tesla as a result of that. we'll ask today. will tesla be toyotaed. that's the headline today. he's going to be onset. we'll ask about that: scott coop ser going to be here as well. pretty good time to get the temperature of technology. the nasdaq topping this week for the first time in some time. we'll get the read on what the market looks like, we have a big three hours coming up. >> sounds good. we'll see you then. when we come back, scott mentioned the dow and s&p closing at record highs. can the markets extend their winning ways. we'll get some insight from you next.

oh watson, your japanese is very good.

thank you. (speaking japanese) exactly. i can understand nuance, context and idiom in seven languages to help compans all over the world with erything from retail solutions, to banking, to cyber security. (speaking nese) it's my decision to make beauty last. f. roc retil started visibly reducing my fine nes and wrinkles in one week. and the longer i use it the better from roc.works.n methods, not miracles.

welcome back to "worldwide exchange." here to join us, you have one of the highest forecast for the s&p on the street predicting. >> 22.50. >> by the end of the year. >> yes. >> still get there. >> yes. that came out in december and we just affirmed it. it's based on the fact the fundamentals are improving. the economy is not that bad. the earnings are at the troft and should be getting better. everything we were worried about at the beginning of the year, china, falling commodity prices. strong dollar. those have all subsided. we have new worries. we have brexit, uncertainty with that. a lot of things we thought we are going to happen, didn't happen. still strong with the jobs report we had on friday was terrific. the consumer is still powering through the economy. the earnings are going to look up for the rest of the year.

>> one thing the investors thought would not happen did happen and that is brexit. how have they recalibrated their view of the global economic impact. >> we still have a lot of uncertainty. one of the things that is clear is britain is keeping calm and carrying on. they're going through and have a new prime minster. things are kind of unwinding in an orderly manner. that's calming the market. seeing that orderly transition and the markets were -- they're still nervous, but it's not turning out the be as bad as they thought. >> would you be a buyer of european stock. >> i probably would. it's the only ones down for the year. global banks are still very accommodative. there's going to be a lot of liquidity. that's going to favor risk assets. opportunities to jump back up. >> i would just central banks are accommodative yes, but in negative territory.

germany is going to sell the first ever bond at 10-year for zero yield. how do you buy the banks in that kind of environment. >> that's a little bit of a difficult situation. we're seeing yields be so low in the united states because nobody wants negative yields so that's pushing investors in the united states both in bonds and in equities. in fact t investors are worried. there is a search for wield out there. trying to go out and find that. >> does that dictate your strategy on u.s. stocks as well? do you stick with the utilities and staples that are higher priced. record valuations, but still paying high dividends. >> i think you go across the board. the stance of the central banks, risk is on. so investors are going to gravitate towards more risky

stocks. take a look at mid caps, take a look at small caps. they're doing better than the s&p 500. the s&p 500 is doing well. it's because it's a risk environment. >> you say it's safe to go even though we're still seeing -- oil is under pressure. some worries are still there. >> but if you're globally diversitied and spread out that risk. then you should be okay. because overall, economy is doing better. and like i said, earnings are coming back. it's that's a food environment to be in the market. >> let's talk about earnings coming back. what are you expecting out of the financials which are the worst performers of the year. >> the financials are a little bit tough right now. there are some sectors within fin financials that are good, say the consumer area of financials. we're going the see in the next couple of weeks when we have the big banks coming. that's going to give us a gauge

of how we can look at earning season. i think we're going to be pleasantly surprised. >> a good signal from alcoa. where else are you expecting to see better earnings growth. >> consumer sectors. has been powering the economy. they've been the backbone of the u.s. economy. i think the consumer sectors will continue to be good. i think tech might be better than expected too because the strong dollar has been weighing on the tech sector. we could see some good things from tech. >> do you factor in corporate buy backs? >> somewhat. corporate buy bax would be something they're doing, but overall i look at earnings levels as well. lec levels look like give a bottomed out and should go up from here. >> an optimistic take. thank you. that really is the debate here. as we look at stocks at record

highs overcoming yet again the wall of worry this time about brexit. is it fundamentally a stronger u.s. economy, better corporate earnings that we can look forward to that will drive the next leg higher? >> well, absolutely right and markets seem to be able to plow on regardless. that's certainly the story of the last three days. maybe they've gained a little bit of strength from the firming of the political situation here, all be it a lot of uncertainty. on the agenda today we have david cameron's final appearance in parliament. that happens in about an hour's time. at about 12:00 p.m. eastern he will go and' the queen. in a couple of hours, theresa may will be returning to downing street as britain's new prime minster. she'll get straight to work appointing the new cabinet. and new government will be negotiating britain's exit from

the eu. >> we're so glad you're there for it. that does it for us on "worldwide exchange" this morning. "squawk box" is next. rn with a hunger to fly and a passion to build something better. and what an amazing time it'seen, decade after decade of innovation, spiration and wonder. so, we say thank you america f a nty ofru, for the privilege of flying higher and higher, togethe ♪

your business needs better technology to drive better performance. so you need it to be reliable and fast. really fast. introducing the comcast business summer savings event. fast internet speed to drive performance, plus cutting edge wifi for your employees and customers, and voice mobility so your calls find you wherever you are. get some of our most advanced products at a great price with over $500 in savings. call today and ask how to get these savings plus a $250 prepaid card. comcast business. built for business.

say scioschappening now, dan preparing to make his last appearance in parliament as prime minster and hand over the government to theresa may. a live report from london is straight ahead. plus buzz from the campaign trail. donald trump's vice president announcement is expected in the next 48 hours and bernie sanders is with her. making his endorsement of hillary clinton official.

it's wednesday, july 13, 2016. and "squawk box" begins right now. >> good morning and welcome to "squawk box" here on cnbc. i'm kylely evans with joe. let take a look at equity futures. looks like green still a drift higher. the dow implied to open by more than nine points higher. the s&p one, nasdaq five. the nasdaq now in the green or black for the year. overnight in asia, japan has been a contributing factor to the rally we've seen. the rally continues with stocks up about.8