good morning. break overnight. japan approves a $274 billion stimulus passage. the yen jumping to a three-week high. a live report from tokyo coming up. crude realities, oil hovers near $40 a barrel right now. we're going to discuss the factors at play straight ahead. >> plus a cnbc exclusive. italy's prime minster backing the nation's bank. we'll hear from renzi in his own words. it's tuesday, august 2, 2016 and "world wide exchange" begins right now. ♪ ♪

>> good morning and welcome to "world wide exchange" on cnbc. i'm sara eisen. along with don. >> today to be here, good morning. >> let's check in on global market this is morning. it looks like we're lower again today. dow down about 40 points. s&p futures down 6. nasdaq down nearly 14. this after the dow actually finished lower for the sixth session in a row. as for oil prices, all the focus back in a bear market off 22% from the june high. and they are getting a bit of a relief bounce this morning. >> still around $40 a barrel. >> dipped below it yesterday, 40.13 right now. keep a close eye on that. it is starting to impact sentiment perhaps with lack of other catalysts. the economic data heats up. >> of course everyone still talks about the former correlation trading relationship between stocks and oil. we'll see if that holds in the

weeks and months going forward here. among today's other top stories. shinzo abe approving a $274 billion stimulus passage. the country's finance minister says the bank of japan was fully consulted on the move. you can see here, dollar yen 101.65. a dollars will buy you 101.56 yen in this counter environment. the nikkei was closed. officially came out as you can see there, the nikkei down by 1.25%. we have a live report from tokyo. other news out of asia as well. australia cut the interest rate to a new record low, 1.5%. the move was expected however. we saw volatility in the australian dollar on that. we 150e78 to have gotten back a lot of the loss early on. as for asian stocks, the hang

sang up about a percent. the shanghai comp up also. and nikkei off about 1%. there are some storms in the area. >> so that's the reason we're seeing. >> yes. >> let's show you the early trade in europe right now. lower across the board. the german dax is off. in france more so. in spain down 2%. the banks and the energy companies are getting hit the hardest rights now and driving stocks lower in europe. second day in a row we'll keep an eye on that for you as well 678910-year treasury note yield. yield below 150 yesterday. moved higher. 153 this morning. there is shom selling in u.s. treasures which is pushed yields a little bit higher. let's see if the data can back that up. potentially higher treasury yields today. as for the u.s. dollar, it has

been weaker over the last few sessions and right now we're seeing the euro strengthen again against the dollar t. as for the pound getting some relief after being battered yesterday on the back of the latest negative data point on the uk post-brexit. stronger, but sit that dollar yen that is the focus. some disappointment or at least the fact the stimulus passage has already been priced in. flip side of the dollar has been gold. and it continues this morning up about half a percent. >> so many stories around the dollar right now the major u.s. -- the major world currencies against the u.s. dollar all showing some signs of strength. yellow arrows to the downside. now back to japan, the cabinet approving a highly anticipated stimulus passage. joining us now from tokyo with some of the details. this was a widely expected move,

but just how important is this particular stimulus plan coming from the government itself and not of the from the bank of japan on the monetary side of things. >> reporter: akiko fujita. trying to go to great lekts to show the public they're on the same page. when you look at that number here, certainly the largest economic stimulus passage of past here in japan since the financial crisis in 2009, but the key here is in the details. actual spending only amounts to 7.5 trillion yen. less than half that headline figure. that will only be spent over several years. now what will it be spent on, infrastructure projects related to areas affected by the earthquake in southern japan earlier this year. we also know the money will go towards cash handouts in 15 thousand yen.

the government really pushing for this 3% boost in hourly minimum wage. this of course the latest push here in the central government trying to coordinate the policies with the bank of japan. you'll recall in that policy meeting on friday, the central bank coming out and doubling the etf purchases, but largely keeping the rest of the policy unchanged here. neither has done much to move the dollar yen here or weaken the yen. you talk about where the yen came in today hitting a three-week high against the dollar at 101. still the ministry of finance and the bank of japan really going to great lengths here to maintain the optics they were at least on the same page. finance minister meeting with the bank of japan governor co-da today saying they also discussed the issuance of more 40 year japanese government bonds. the larger question here is what does the stimulus passage mean for the economy. now the ruling party has come forward and said they expect

this to boost gdp by 1.3% in the near future. skeptics put that number closer to.4%. this marks the 26th stimulus passage that has been passed here in japan since 1990. there's increasing fatigue of another stimulus passage and you have to ask the question, a lot of people are wondering when is prime minster abe really going to go for the third arrow structural reform which people think will have a bigger efelkf on the economy. >> using every instrument and tool they can get their hands on. as the economy goes from positive to negative gdp, what is the mood, what is the vibe there. what's the awareness that people have of what's going on and the seemingingly increasing desperate policy moves to fights it. >> it's interesting. when you walk out here in tokyo

on the streets, you would never know there's any kind of issue here, but when you look at the market reaction, that's where you see the fatigue with the slus passage thchlt is a huge number even if direct spending was 7.5 trillion yen. we're talking about 28 trillion yen. the largest passage since the financial crisis and look the way the markets reacted. you'll also see with the the monetary easing policy. we did here saying he's going to reval re-evalua re-evaluate. what is the magnetic levation train. >> a floating hovering train that uses magnets. it's like marny mcfly. >> they're building it from tokyo to asack ka in case it couldn't be fast enough with the bullet trains. now to the day ahead, 8:30

a.m. eastern time, june personal income and spending. both expected to rise. also out today, this will be important, july auto sales and more fed speak. dallas fed president rob kaplan speaking at a conference in beijing. we'll monitor that one for you. earnings news, we've got dow components on the radar. prok tar and gamble this morning. royal caribbean among the companies reporting before the bell. after the bell, a ig. etsy. >> i was watching that yesterday. >> sharp rise. >> we'll speak of the economy and corporate america, j.p. morgan ceo p offering an upbeat view of the future in an exclusive interview with wilfred frost, among the highlights here, asked diamond about last week's gdp report, the lack of investment from businesses and what that tells us about the

fundamental strength of the u.s. economy. >> i don't believe it. what we see is a strong consumer, asset prices are up. 13 million people working. wages going up. household spending going up. a lot it is a little disappointing. they have the money. they have the where wit all. profits are down. huge capability. i wouldn't overreact to short-term data. i'm not sure the data is accurate anymore. what we see is household formation. more people buying homes. more people with jobs. those are all good things. >> oil prices falling below 40 s that a short-term data point you're not worried about. >> it makes no difference to me. we're in california forever. we're in 100 countries. we're going be there forever t. wobbles in prices to me are not a reason we would do something different. obviously customers in the oil business, it affects them.

they would probably like to see a more stable oil price. i wouldn't overreact to short-term price. >> greg: what abo. >> what about the yield curve? does that suggest there are concerns ahead for the u.s. economy and people's expectations suddenly shift to be inflationry, could it move quickly? is the bond market somewhat of a bubble a lot the moment. >> i'm not a buyer of 10-year treasury bonds. i would be worried about drastic actions in the bonds. we have proper growth in the united states that will start to normalize interest rates. 25 base points doesn't matter that much. we start to normalize, i think it's a good thing. if that happens, my view is you have to see the 10-year treasury go up to a normal price. we don't look at today's price as a normal price. it's a low price. >> we think more broadly about the stock market itself, we've hit record all-time highs, but if you look at almost any time

frame since the financial crisis, ten years, five years, this year, banks have been left behind. loan growth is good. you're positive on the economy. is this a once in a lifetime buying opportunity for bank stocks in the united states. >> the american banking system is in great shape. tons of capital, tons of liquidity. they're starting to expand again and a healthy financial market is good. legal and regulatory pressure on banks. i think that will be good for everyone when it happens. i don't count on that. build a company, serve the clients, you can see behind me. right now you may not know this we have 100 thousand people around the world, london, china, all around the yooits who are watching this and i want them to know i'm proud of them because they do a great job serving their clients every single day and our clients are happy. that's what i worry about.

build the company today and the stock price will take care of itself tomorrow. >> jamie diamond with wilfred frost. >> i have to love seeing him in a polo shirt. >> and wilfred dressed to the nines. >> of course. speaking of bank, shares continues to slide today following the european union stress test. matt tay owe renzi speaking out. stay tuned, you're watching "world wide exchange" on cnbc. olay regenerist renews from within...

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exchange." italian banks in crisis mode. here's what jamie diamond had to say about the issue. >> they did a stress test and most of the banks did fine. i think it's time to let the banks do the job. continue to pound them and change the rules and requirements five years out, six years out is not good for the people of the country because you're destabilizing. there's clearly a bunch of banks that need to be recapitalized a bit. in our view j.p. morgan because of the public. and if we can pull something like that off, that would be great for italy fwl more on this, julia chatterley joins us

from rome where she sat down with the italian prime minster. so many things to talk about with the italian pm. what were some of the highlights because we know banks are a huge focus, especially in italy right now. >> reporter: you're absolutely right. good morning. this is what we talked about. in line with what you heard from jamie diamond. he said this is the final solution for monte dei paschi bank, one of the big three largest banks here in italy. he said it's the solution because it's getting the nonperforming loans off the balance sheet. he also critically said about the banks he will continue to fight brussels against imposing any losses on both international investors and retail. italian investors here in italy because he thinks it's toxic for confidence. listen in. >> i don't agree with the new legislation in europe, but obviously i respect that. i don't agree because i believe

the priority in this moment is give confidence to the citizens and if we continue with terror of bail in, this is a problem for the sentiment of confidence of european citizens so for me this is a mistake. >> reporter: so this is not just a financial issue. it's also a political one ahead of a key referendum in october. on political reform. now it's become really a confidence vote on prime minster renzi has said he will step down as prime minster in he loses so guys this whole issue of the banks is not the only issue here. actually it's about a fight for survival for renzi of prime minster of this country. back to you. >> very timely interview.

julia, thank you for sharing with us. >> other news of a brexit. the company says it's businesses and results could be adversely affected and may have to incur additional costs. specially the bank saying it will suffer if britain's exit from eu limits the ability to conduct business in the europe blog. you can see bank of america little change. separately in a filing saying it did not experience any negative impact on the brexit vote. again some of the votes weighing in. the results of brexit seem to be contained with regard to the market action right now. we'll sew longer term. >> on this issue for j.p. morgan, wilfred did ask yesterday about what he thinks of global markets and slugging off the entire brexit vote. >> we always knew the effect of brexit wasn't what the markets might do in the short run. what is the ultimate outcome. we don't know. we're not going to know for

years. that uncertainty is going to have an effect. you're not going to have trade in the eu without immigration and moving people around. we have to be prepared for whatever the outcomes are. since we don't know, we'll work on it. it's not up to j.p. morgan chase. every now and then they'll ask if we're ready. we're not the enemy. whatever the laws of the land are we will follow. that may require us to do it differently then than today. >> when we come back, battle of the billionaires. we have heard from quite a few billionaires. >> we have and that brings us to the twitter and facebook question today. which billionaire has more sway on u.s. politics, is it bloomberg, mark cuban, warren buffett, donald trump. tell us what you think. we're going to bring results

later in the show.

you won't see these folks at the post office. they have businesses to run. they have passions to pursue. how do they avoid trips to the post office? stamps.com mail letters, ship packages, all the services of the post office right on your computer. get a 4 week trial, plus $100 in extras including postage and a digital scale. go to stamps.com/tv and never go to the post office again. turning now to today's political news, warren buffett joining hillary clinton on the campaign trail. introduced the democratic nominee and used his speech to take aim at donald trump and his business record. specifically highlighting the failure to release his tax returns. >> i would be delighted to meet

him anyplace, any time between now and election, i'll bring my tax return. he can bring his tax return. nobody is going to arrest us. it's not -- there are no rules against showing your tax returns. and just let people ask us questions about if items that are on there. >> a very controversial comment there from buffet. also made a point to speak out against trump's recent comments about the muslim parents of a decorated american soldier killed in iraq asking the republican nominee if he has any sense of decedent si. >> sort of harkening back to the anti-communist hearing in the 1960. switching gears now a miami travel warning is in place following new zika cases. good morning edward. >> reporter: good morning sara and dom. the cdc took the step of putting a travel.

calling it is seek ka zone. at this point, the seek versus is being spread by mosquitos local to that area. so far 14 people in florida have been contracted the zika virus from mosquitos in florida. the cdc director says the type of mosquito who carries the versus is possibly immune to sect side of able to hide in standing water. they're trying to get rid of the threat. pregnant women or anyone who came through that area should go check with the doctor. they say pregnant women should avoid that area now just north of miami. also if you're planning on becomiing pregnant and have bee in that area you should weight at least eight weeks to make sure it's not in the system. avoiding the area or misusing mosquito repellent. >> thank you for the update this

morning. live in washington. >> coming up on this mornings top stories, a major stimulus plan stay tuned here. you're watching cnbc, first in business, worldwide. gilman: go get it, marcus. go get it. ...coach gilman used his cash rewards credit card from bank of america to earn 1% cash back everywhere, every time. at places like the batting cages. ♪ [ crowd cheers ] 2% back at grocery stores and now at wholesale clubs. and 3% back on gas. which helped him give his players something extra. the cash rewards credit card from bank of america. more cash back for the things you buy most. the cash rewards credit card from bank of america. or keeping a hotel's guests cuttinconnected.i to 35,000 fans... businesses count on communication, and communication counts on centurylink. and grease in just a minute on dirt and grime mr. clean will clean your whole house

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now you can watch nbc's coverage of the rio olympic games live at home or on the go. afz. good morning. breaking overnight, japan approving a stimulus passage. crude realities, oil prices hovering around $40 a barrel.

right now to discuss the factors at play. and speaking out, elizabeth hole m defending herself and her company. it's tuesday and you're watching "world wide exchange" in cnbc. ♪ ♪ >> good morning and welcome back to "world wide exchange" on cnbc. i'm sara eisen along with don chu in for wilfred today. >> good to be here. >> let's check on global market this is morning. like sara said a stimulus passage in japan part of the stay in the markets. if you look at u.s. futures, we're modestly lower. s&p indicated to open down about 5 point tos. the nasdaq off by 11-12 points

in the early parts of the trade so far. take a look. wti crude showing a bit of strength. i say that relatively speaking. 42.42. up almost a%. brent crude up about a percent as well. of course we've seen this real slide over the course of the past few weeks here in crude prices. certainly ones to watch there. we are seeing a little bit of green there. >> off 20% makes it a bear market. >> certainly keep an eye on that. also as we mentioned this morning, top stories, japan's prime minster shinzo abe approving a stimulus passage. the country's finance minister says the bank of japan was fully consulted in this. let's show you the market reaction. the yen is strengthening. that would sort of highlight some sdpiemt or at least the fact it was already baked in. remember the japanese authorities want the yen to go the other way and actually

weaken. the is that correcstock market the day. they closed on the back of that yen. people in japan will get cash handouts. a form of helicopter money. >> basically fiscal stimulus combined with monetary stimulus where it will be printed. not just a massive cash infusion. >> underwriting any deficit that would have been imposed. >> we're in uncharted territory and our own akiko fujita told us in japan, it's the 26th stimulus passage. >> i want to say it's the third biggest stimulus passage ever in the history of japan. >> trying to throw the bullets at the sagging economy. >> whatever they can. >> other news out of asia, australia cut interest rate by a quarter of a percentage point. that move was expected. strength in the aussie dollar.

hints australia could cut rates even further. 1.5% seems good. >> it seems interesting. had some perceived issues about possible inflation because of an overheati overheating real estate market. you can see the australian dollar moving in response to that. >> in asia, shanghai comp closing up .6%. australia stock market we weakening. >> let's take a look now what's happening with european equities. the dax in germany off. the cac in france, 1.5 percent to the downside. the ftse 100 in the uk off by about.3%. the ftse mib off.

some of the bank strength reversing. spain ibex off 32%. we did see some bank action there as well. as for the broader markets as well, take a look at that. we are seeing some movement here. the 10-year treasury note actually moving to the upside. 1.53. 1.54. the last trade in terms of yield on the u.s. 10-year treasury note. we are seeing a little bit of selling pressure on u.s. treasuries. jamie diamond spoke about the u.s. economy. >> i'm not a buyer of 10-year treasury bonds. i would be worried about drastic actions in the 10-year wonder. the more important thing and the fed talked about it is if we have proper growth in the united states that will start to normalize interest rates. the fact is we start to

normalize, i think it's a good thing. >> so clearly he's not a buyer, but this is a macro kind of week. we will get income and spending numbers out this week. the jobs report out friday. auto sales will trickle out through the day. remember we're coming off a weaker read. a lot weaker, almost half of what economists are accident looing for. buried in that number is 4.2% rise in consumer spending. that's a bright spot. potentially that's why the market has been holding up. >> it has been resilient. always signs perhaps of the other side of that story. we saw earnings coming out from texas road house. >> texas road house. >> consumer indicator possibly because it's not the biggest chain out there, but it's a mid scale restaurant and you want to see if americans are spending some of the savings they're getting on gasoline as oil prices have come down. you wonder whether or not there's pockets of stregth out

there that can void the economy. remember consumer spending more than two-thirds of the economy. last time we saw oil prices dip like that, we saw restaurants as perceived beneficiary because people saved money on gasoline. >> so the data could be the key as to whether the market can take it higher or whether we put in the records for the year. >> this is also going to be a scale tipper as well. we saw that weakness in jobs coming out in may and june kind of reversed course. july we're going to see whether or not that trend continues or. >> june was super strong. >> very strong. it reversed a lot of what we saw in may. however a lot of people say that perhaps is the beginning of a trend. we don't know if the job strength could be something that also helps void the picture. of course all of that in the realm of whether or not the fed potentially raises interest rates any time before the end of the year. >> absolutely. we'll watch the data today. also microsoft kicking off

august with bang. selling nearly 20 billion dollar in debt to finance the takeover of linked in. fifth corporate bond sale on record. strong demand for the ten and 30 year paper. microsoft is one of two companies in the u.s. with a triple a rating from standard. so it's taking advantage of that and joins a long list of blue chip firms including apple, verizon who are taking advantage of the historically low borrowing costs. >> the reach for yield continues there. moving on, the ceo elizabeth holmes. this was her first public appearance since she was sanctioned by u.s. regulators. theranos has come under scrutiny. these include a mini lab that can run blood test on a single desk top machine.

working hard to resolve the outstanding issues. >> we have a lot of work to do to engage with this community and i can tell you i wish that i had started earlier in the context of building the p scientific and medical board that we've had the privilege to build and now working toward the peer review publications. that's not going to happen in one day in one presentation. it's going to happen over time. >> hired a new chief compliance officer, but can't say how long it will take the company to fix some of those problems. some stocks for you to watch today, am core rallying, am kor. the chip passaging and testing company, quick recovery at an earthquake factory in japan. >> some other movers, cog an ex cognex is benefitting from growth in consumer electronic

business. dom's favorite stock, texas road house falling sharply after the restaurant chain sees misforecast. sales growth for the first month of the first quarter slowed. that dip in restaurant sales which we've seen across the industry really hitting texas road house hard. down 9.5%. ten net health care . >> more stocks to watch as well, honda operating beat forecast as higher sales from the stronger yen. the auto maker is maintaining its full year outlook. staying on the car theme, bmw topping profits. thanks to the sells of the seven series sedan. held above 8% for 25 straight quarters. general growth properties reporting a third straight decline in quarterly profits.

this is the second u.s. mall operator also cutting its guidance for the overall year. >> so we mentioned the consumers in focus. important data on the agenda today, auto sells, fiat, landon dowdy joins us with what to watch. >> reporter: auto makers were trying to put the foot on the gas to pick up the pace. forecast coming for 17.3 million units sold in july. that's up from 16.7 million in the previous month, but while that number may seem like an improvement, it's still below the all-time monthly high set last year. sales may start to flatten ask the pressure for dealers has been on. since july is one of the busiest months for auto purchases. analyst pointing out that auto makers had to offer more

incentives. ahead of the shares that the big three are little change sgls we'll keep an eye on it all throughout the day. landon, thank you. >> now to top trending stories of the morning. nick denton personally filing for bankruptcy. prevent hulk hogan from collecting. the gawker founding taking to twitter. thrive under new ownership when the sale closes in the next few weeks on this bitter day for me, i'm consoled by the fact that my colleagues will soon befreed. >> "squawk box" 7:40 a.m. of course referring to peter thiel. >> yes. >> and against mr. denton. >> tune into "squawk box" 730

i'm. hoekman go hit 100 million down loads. that according to a report. down loads are up 25 million from late july. this despite privacy scares and feature bugs the game also bringing in $10 million daily in terms of revenue. pretty amazing. people will still playing that pokemon game. >> just go to central park. have you seen it? >> it's just like people looking like somezombies going around tg to catch pokemon. i don't get how it makes money. >> have you played? >> no. i know someone close to me who plays all the time. >> when we come back, today's must read stories, but first check out some of the major currencies. japanese yen reaching a three-week high. some disappoint after japan announces more than $200 billion stimulus passage.

stay tuned. you're watching cnbc, first in business. worldwide. .

whack back to "world wide exchange." my must read, is donald trump just plain crazy? and robinson rights he told abc news george steph notary public lis i got a letter from the nfl saying this is ridiculous. the nfl doesn't want to go

against the debate. then the national football league responded, quote, we did not send a letter. that was just one in a series of examples in the last few days that robinson breaks up to show that it's hard to figure out what the truth is. these aren't major lies, but they are shifting in positions so the media in general is trying to internet sort of the trump, the new trump. >> on certain issues. >> people are trying to peg him on certain issues and certain things and he keeps the bow gi so to speak. he keeps moving around. a lot of people trying to figure out if that's going play into the presidential debates. that's going to be of course a big talking point as well. >> turning from politics back to the economic side of things. my pick is in the wall street journal . it's titled chooun's uber kpilt.

ride share player in china shows the real priority is a stable eco-system of companies that are allowed to earn higher profits in return for playing the political game. now what they're referring to specifically is this decide that dd's ride sharing service in china enjoys what they claim a real monoapply status. they're still allowed to merge with the second biggest which is uber china all under the guides of whether or not the government can or does have a say in this particular companies. we should point out there is a regulatory hurdle. they said they have wet yet to approve this deal. still paperwork pending. >> they naifr the home grown company. >> correct. that's why so many companies both there and abroad like apple investing in didi. u.s. companies struggled there for this very reason. so do you join them if you can't beat them.

that's what uber did. it's a different strategy. >> we are approaching the top of the hour. the team is getting ready for "squawk box." becky joins us in new york with a look at what is coming up on the show. >> it's good to see both of you guys this morning. obviously we have a lot going on this morning with earnings. we are still right in the thick of things. a slew of companies ghoing to be reporting on the watch this morning. two dow components out. pfizer and prok terre and gamble. pfizer will be talking about the numbers with barbara. procter and gamble ceo will be joins us too. make sure you stay with us for that. other things we're talking about this morning. the zika outbreak in miami. 14 confirmed cases of cases that were transmitted locally by mosquitos. those are the first cases transmitted in the continental united states. the cdc is on notice of this. we're going to be talking about

the risks for americans. what you should be considering if you are looking to travel throughout. we'll also be talking with nick denton with gawker. where things stand. looks like he's going to be protected from personal bankruptcy. b obviously this case is continuing and he does have his sight's set of peter thiel. >> always as usual becky, a great lineup coming up on "squawk box." we'll tune in for sure. see you in just a bit. coming up here on this show, cnbc contributor, going to weigh on the market factors that is influencing everything including oil prices and later today, don't miss a special closing bell. live from atlanta georgia, special guests include the ceo of home depot. you can see them all there. you're watching cnbc, first in business, worldwide. ♪

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welcome back to "world wide exchange." and good morning. the dow dropping and futures are pointing south again. joining us now is cnbc contributor alison dean. good morning to you. >> good morning. >> you consult other big financial firms on the markets. what are you telling them right now about how much longer this rally can last. >> i'm not sure there is going to be much of a rally. the combination of weaker economic data than most of us expected came out last week and the impact or the behavior surrounding brexit, which i think has made corporations continue to be cautious, and one of the things we've seen is corporate spending slow down suggest that the outlook for profit growth coming out of the s&p 500 and the overall market is probably diminished somewhat and in a market that's fairly valued, it's hard to see the market have upside from here.

>> so alison, it's dominic, one of the ideas here is this market has been excelled to a pretty decent size degree by dividend paying stocks. the more defensive names like utilities, telecom stocks, consumer staples, they're sitting at multiyear high valuations. given the fact you don't see anything really that positive coming out of the u.s. economy any time soon. >> you know, it's tough. i'm such a value investor. the valuations like high. quite frankly you're being paid to hold onto them. they have strong balance sheets. and when you look at what's out there as far as options, the bond markets look more troublesome we might see rates start to creep up later this year. when you're looking from an alternative basis, it's still one of the better places to be. >> what do you make of the dom asked you about the dividend stock. i'm just wondering about some

other dividend payers like older tech names. even financials, which some say have been overlooked and are the worst performing sector this year. do you go to some of those beaten down shares for dividend plays. >> you know, i feel like financial sfris in a secular decline, but quite frankly the stock has been beaten up. maybe rather than owning common stock where you have more protection on the downside and the dividend. you're more being paid in the overall-year-o yield and you ge better-year-old yield. some of the better ways of playing it is playing a variation. you might get better yields and you're still not going to get the same -- you're not looking for too much overall upside in the performance. >> a huge influence on the way those financials have performed comes from the idea the macro environment is unprecedented. i think that's fair to say. we've never seen anything in the history of mankind like the

central bank intervention we have like all the policy actions we're having right now. how does all of that give a professional whether they're in financial markets or otherwise any kienld of sense how they can predict the future business. what exactly does the macro environment need? have you ever seen anything even remotely like this? >> not in my life thiem. we didn't have as sort of uniform economic policy when weapon went through the great depression and we did have the worst financial crisis since the depression and you're seeing globally looking at ways to try to spur growth. you need more government assistance to step in and do more stimulus and corporations need to feel more confident about the environment. so while it's unprecedented from a monetary policy globally, we need to see more action coming from other aspects. governments and corporations before you can feel comfortable. anything is going to help. >> how much do you see oil

prices right now at a head wind as they dip below 40 yesterday and back into their market. >> i had my view pre-brexit had been that interest rates, you know, were going to be a problem one way or the other and you had the dollar not being headwind in energy prices and i think between brexit and the ripple affect that has on global growth also making energy prices less stable again. the two headwinds i thought would go away seemed to reeemergency which makes the second half of the year more questionable. >> just a few seconds left here. if you're clients were to ask you where are the most favorable market sectors to invest in right now, what would you tell them. >> looking within the united states, i would say consumer staples. consumer i think some consumer staples are more domestically oriented because the yob growth and the wage trends are improving. the consumer seems to be the one thing that is driving the

economy to some degree so that is sort of the positive out there. more domestically oriented technolo technology, health care, and utilities, again, because i see interest rating staying low for a while. so things that point to domestics, slow growth improving consumer, but not much on the manufacturing front. i also think right now europe has been so beaten up if you see further pull bax there, there could be some opportunistic buying overseas. >> thank you so much for joining us this morning. >> we've only got a minute or so left here. we wanted to highlight a if i things to watch today overall. if you take a look. proctor and gamble one to watch. up by almost 9% this year. up 12%. >> this is a classic dividend staple. >> 3 pnkt play there. we'll see if people want to go in and back it up. >> any signs of life on the consumer as well. the results of the facebook and twitter question, we've heard from a lot lately, warren buffett takes an early lead

followed by donald trump, mike bloomberg and mark cuban. that's it for us. "squawk box" is next. ng one of the world's most innovative campuses. or bringing wifi to 65,000 fans. businesses count on communication, and communication counts on centurylink. you fine but your passengers in your carsmell this...t smells eliminate odors you've gone noseblind to for up to 30 days with the febreze car vent clip break out the febreze, and [inhale/exhale mnic] breathe happy.

good morning, everybody. breaking overnight, japan approving a stimulus passage. the yen jumping to a three-week high on that news. the cdc making the first travel warning over the continental u.s. over the zika outbreak in miami. calling hillary clinton the devil facing new criticism in warren buffett. it's tuesday, august 2, 2016. "squawk box" begins right now.

>> good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky along with andrew. joe is out today. let's check out the u.s. equity futures. dow down by about 26 points. dow has been down sixth days in a row. if it ends down again today that would be the longest losing streak in a year. these have been pretty small declines we've seen throughout the time. it's not a massive decline. you can take a look at what's happening with the s&p 500. the nasdaq closed at the highest level in 52 weeks yesterday is down about 12 points with the future this morning. overnight in asia the hang seng was closed. nikkei was done. after stocks closed in japan, prime minster shinzo abe cabinet approved a stimulus passage. we knew this was coming. finance minister