walmart set to buy online retailer jet com for $3 billion. an announcement expected today. plus, your money, your vote. donald trump heads to detroit to roll out his economic plan. it's monday, august 8th, 2016. worldwide exchange begins right now. the birthday song there. much appreciated from the team. sara's birthday yesterday.

she's off today. also my birthday. we share the same birthday. >> happy bee late. >> welcome to worldwide exchange from us both. let's have a check in on markets right now. we are by a quarter of 1% as you can see. the dow expected to open 33 points higher. friday took into positive territory for the week. friday, took us into positive territory to the tune of half a percent of that strongs jobs number. we also saw the bond markets retookt that. some selling of the bonds allowing yields to tick up slightly. 1.576. the uk bond market as well. that's been moving in the opposite direction following bank of england meeting last week. 0.65% on the ten-year. it's moved sharply since brexit

and the monetary policy meeting last week. significant moves in the opposite droex what the u.s. bond market has seen. >> let's look at european equities this morning. higher across the board. one notable piece of economic data. german industrial production rising more than expected in june. bouncing back from a decline from the previous month. also point out that french business sentiment rebounding in sdwrul from an 18-month low in june. in asia, overnight, new data shows that china's exports and imports dropped more than expected. exports declining by 4.4%. sis appointing data from china. closing in positive territory. the japanese nikkei average hitting a one-week high up 2.4%. >> both europe and asia responding to the strong jobs number that we had on friday.

wall street's gains on friday afternoon. let's look at oil prices. 1.5%. wti at 42.4. last week, oil prices gained around half a percent. breaking a two-week losing streak. the dollar saw gains to the tune of around -- sorry. saw gains around 0.8%. the broader index. today the dollar gaining against the yen. that's one of the reasons why the nikkei was strong. let's check in on these numbers. slightly softer today. at 13.36. now to the political news. republican presidential nominee, donald trump is set to turn his focus to economic policy today. in a speech to the detroit economic club, trump is expected to propose allowing parents to deduct spending on child care from income taxes as a wealthy businessman, trump will look to counter hillary clinton's argument that he's out of touch with working families when unveiling his plan today.

he will also highlight that his business policies will encourage companies to remain in the united states, which is a top concern of blue collar workers. rival hillary clinton is expected to focus on her plans for the economy on a speech on thursday in detroit. so far, she's focused her plans on job creation, supporting small businesses and strengthening the economy. >> now to the talk corporate. the trade commission -- on suspicion of anti-trust practices. this according to a report in the nikkei. amazon japan is suspected of imposing conditions on retailers like forcing them to sell products at a low price if they were advertising on other online shopping sites. amazon not really reacting in the free market for u.s. trade. >> britain's top production -- formal probe into airbus. they'll look into the airplane maker's use of overseas

consultants and allegations of fraud, bribery and production. thousands of delta passengers -- due to a system wide computer failure. our systems are down everywhere. in response to a user complaint. passengers have reported delays at airports including london, heathrow, tokyo and los angeles. some more stocks to watch today. walmart is set to acquire the online bulk retailer jet.com. according to reports, the deal is expected to value jet at $3 billion and will be announced later today. in other news, the south african retailer will buy a firm for $3.8 billion. stein hof will pay $64 per share, which is 115% premium to mattress firm's friday close. it's up 1.5% in free market today. panasonic over the possible sale of controlling stake in a car battery manufacturing ventura cording to reports. nissan owns 51% stake in the

firm that makes lithium ion batteries for electric cars. speaking of that, tesla disclosing a $1.1 billion in third quarter cash needs. the company is saying it needs the money to pay payments and go through with planned expenditures. this as it finishes construction of its massive battery fakry in nevada. abbvie sued the farm suit al company alleging misrepresentation and admissions related to failed attempt to buy dublin-based shire. berkshire hathaway saw profit rise. helped by an improvement in insurance underwriting. the agenda on wall street. tomorrow look for the first read on second quarter productivity and labor costs. thursday, import prices. friday, retail sales.

this week we have one dow component and 17 s&p 500 companies reporting. we'll hear from them today. tomorrow, solar city. wednesday shake shack. thursday, al bab i, macy's. on friday, j.c. penney. staying on the consumer theme, drivers may want to get one last road trip to make the most of lower gasoline prices. landon dowdy joins us with more. >> good morning to you. >> the lundberg tracks it at 2500 stations. here's the latest look. the average price dropping $.06 to $2.16 a gallon. that's 55 cents lower than a year ago. the price of it has gone down $.21. analysts say as soon as the slump ends gas price -- the price of crude is declining, down 5% over the past three

months. but that decline is starting to slow. so what is the city with the highest pump prices. san diego currently at $2.70 per gallon for unleaded. jackson, mississippi, at the low price of $1.81 a gallon. it's down $.04 from a week ago. landon, thank you very much for that. gawker media is engaged in preliminary talks with hulk hogan to reach a settlement according to the "wall street journal." over $140 million court judgment over invasion of privacy that led gawkers to file for bankruptcy protection. this comes a week ahead of the court administered auction. nick denton will lose control of. your trade of the day, august can be a rough one for the weak of heart. we'll bring you three most likely to profit in times of -- >> first, our twitter question. trump is switching focus to the

economy. is tough rhetoric on free trade going to go down well? get involved with us. we'll discuss that and much more at worldwide exchange come ung. what i love about the tempur-breeze bed is it's cool. so you're not too hot, too cold, you're just perfect. sleep cooler, wake more refreshed, discover the new tempur breeze. learn how you can change your sleep by requesting a free sample of tempur material. call or click today. it's realizing beauty, doesn't stop at my chin. roc's formula adapts to delicate skin areas. my fine lines here, visibly reduced in 4 weeks.

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welcome back. get up it speed on the market action. higher open on wall street. only by a quarter percent. the dow higher by 46 point.

that was after friday's gains put the u.s. indices into positive territory. wti cloegs slightly higher. quickly want to show you asia. europe and asia, particularly asia have been pulled higher by wall street's gains on friday. the nikkei was up 2.5% as the yen fell around half a percent earlier today. seema. >> the so-called fear gauge, the volatility index dropping to the lowest level since last august. but this month is historically known for nasty market surprises. using analytics tool can show our -- what might other can you remember if the vix jumped back. they tend to do well with exchange rate of funds. they profit in times of worry

according to -- the gold trust and bnd the total bond fund. you can go to cnbc -- the equity market showing us different stories. equity, the investors are confident in the economy. perhaps a bit more bullish. bonds, though, with record low yields says the investor is risk averse. >> in the u.s., we started to move away from them slightly on friday as we got back to better than expected jobs number. japanese emperor akihito making a rare video address to the public today. hinting that he might step down. the 82-year-old saying it may become difficult to adequately fulfill his official duties. japan's emperor has no political back. it would be unprecedented to have an emperor step down. >> if he were to abdicate, it would be the first time a japanese emperor has done that since 1817.

interesting to watch. >> in turkey, istanbul, more than 1 million people gathered on sunday in a rally staged by president erdogan. the so-called democracy and rally was aimed to show strength after last month's failed mi-- military coup. breaking news out of pakistan this morning. a massive bomb went off on the government run hospital in the southwestern part of the country. police say at least 53 people are dead and dozens are wounded. no group immediately claiming responsibility at this stage. switching focus now. the crip toe currency explaining which lost over $70 million last week to hackers telling customers that they would lose over 36% of their assets that they had on the platform but would be compensated for those losses with tokens of credit.

hackers took yearly 120,000 bitcoins in the second biggest breach ever in u.s. dollar terms. still to come on worldwide exchange, your money, your vote. donald trump heads to detroit to roll out his economic plan. we'll talk expectations coming up. first, as we head to break, here's the national forecast from jen carfagno. we've had a lot of rain in store for the gulf coast. it started happening over the weekend with more than a foot of rain out around cedar key, florida. we'll keep it going today. it's north of tampa along florida's nature coast. along the emerald coast and destine and panama city. the rest of the southeast looking at rain still. the northeast looks phenomenal. the front is through. humidity is down. temperatures are up. very comfortable thanks to that low humidity. northwest we had thunderstorms over the weekend. we'll see the risk for that today. cloudy with 69 degrees. windy and warm across the high

plains. that trend will continue across the southern plains. temperatures in dallas hit 1 hurn-plus again today. that's your coast to coast forecast. i'm jen carfagno. what's it like to be in good hands? like finding new ways

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nasdaq to new record levels and futures right now are pointing to a higher open. the s&p 500 indicated higher. dow jones up 32 points in pre-market trade. investors not just on the equity side but currency as well digesting the payroll report. the euro slightly higher against the u.s. dollar. keep an eye on the pound hitting a low last week on the fresh strim lsu from the bank of england. the yen weaker against the u.s. dollar. japanese stocks hitting a one week high in today's trade. a quick look at oil. the direction of the price of oil following last week. we did see oil dip below $40. entering bear marketer torrey. here on monday, though,. now to the olympics.

here are the highlights from primetime in rio. we saw the first glimpse of the u.s. women's gymnastics team and americans swimming for gold. jay gray has all the details. >> team usa making waves in the olympic pool led by 19-year-old katie ledecky who shattered her own world record winning gold in the 400 free. >> feels good. it's great to be up there on the podium. >> that top spot on the podium is a place michael phelps is used to. he added a 19th gold medal to his collection as the men's relay team edged out france. >> in the gym, the american women looked almost unstoppable. nearly sweeping the qualifying events as a team. simone biles and aly raisman securing a spot in the individual all around competent stigs. >> i think we're ready to compete. >> they'll get that chance on tuesday while the men back in action today. the u.s. team currently in

second place. jay gray, nbc news, rio. both phelps and ledecky are back in the pool today and kerri walsh jennings and april ross will play under the lights on copacabana beach looking to advance in the beach volleyball. lots more to come. >> absolutely. now to politics. a new poll shows hillary clinton and donald trump running even among voters on the issue of handling the economy. both are making major speeches this week on their plans to improve the country's economic future. tracie potts joins us with that story from washington. tracie, good morning. >> hi there. good morning. for people looking for substance in this campaign, this could be the week. economic details from both candidates starting with donald trump today who is now getting the support of one member of the bush family. >> the first bush, jeb's son, is going public to support donald trump.

>>. [ inaudible ] get back up and you help -- and you make sure that we stop hillary clinton. >> trump goes to the heart of american manufacturing today. detroit. to lay out his economic plan. >> our country is losing its company. our country is losing its jobs. our trade deficits are massive all over the world. >> trump expected to focus on taxes, energy, government regulation and trade. avoiding deals like the tpp. hillary clinton's running mate says he'll vote against it. >> we can't have a deal that cannot be enforced. >> trump ally newt gingrich admits the candidate's numbers don't add up. >> of course not. historically, no candidate has numbers that add up. particularly in the media. >> talk more about what republicans want to see and talk about. jobs, the economy. strong foreign policy. >> aides say clinton's economic speech thursday also in detroit will focus on the big jobs package he's promised in her first 100 days. and economy that works for

middle class families, not just the rich. a new poll puts her 8 points ahead of trump. but they're about even on who voters trust to deal with the economy. >> interestingly, too, in that same poll, voters said that they do prefer clinton's temperament over donald trump's. but most of them in that poll still have a problem with her honesty. >> it's going to be interesting to see the economic plains laid out, particularly on the trump side that we've heard in the past. anti-free trade rhetoric. is there any indication of how well that's likely to go down? people very divided on that issue. >> people are quite divided. although when it comes to the candidates, you've got democrats who are wary of this tpp. this trans pask partnership trade deal that he's talked. it will be interesting to see what he has to say on that. on a more domestic front, he's put things out there, like full child care deduction to compete with some of the things that

democrats have been pushing for years. >> tracie, i suppose the other area, we know it's always been hard for him to unite the republican party behind him. how much worse is the development of the last week where actively he's got republicans denouncing him as opposed to lacking support? >> sure, i think the campaign and perhaps the candidate himself much more aware of that now. certainly his campaign chair said that over the weekend. he knows what direction he needs to go in. we saw him go back x backtrack and endorse paul ryan and endorse john mccain. something even his allies said he should have done in the first place. >> tracie, thank you very much. as ever, tracie potts live in washington for us. in sports news, a-rod is retiring. the new york yankees and alex rodriguez announcing his last game will be on friday. a-rod has p career home runs putting him fourth on the all-time best list. we've got mixed pictures there. he's continued to work with the

yankees through next year as a special adviser and instructor if you want to see his last game in pinstripes, prepare to pay up. following the yankees announcement, tick iq said the average price for the game soared by more than 500%. i still haven't seen a baseball game. maybe that should be my first. >> you have to now that you're a new york resident. >> hot dogs and beer at the baseball game. one. bers things. golf news, history in hartford, connecticut. jim furyk shot a pga tour record 58 yesterday at the travelers championship. he made ten birdies and an eagle. the previous record was 59. to soccer and paul hog ber close to joining -- the highest ever paid. a record smashing $116 million. crazy stuff. it's not been confirmed yet,

looking like it might be any time in the next couple of days. still to come at this morning's top stories. delta says its flights are grounded nationwide after a system outage. a report from the airport coming up. it stinks in here. you'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. walker inhales hey, it smells nice in here and try pluggable febreze, with up to 4 times the freshness... ...in one refill. pluggable febreze and fabric refresher... [inhale + exhale mnemonic] ...two more ways to breathe happy

developing story. delta flights are grounded nationwide after a system

outage. a new report coming up. walmart set to buy jet.com for $3 billion. announcement expected today. box office winners and losers from the weekend. it's monday, august 8, 2016. you're watching worldwide exchange on cnbc. good morning. warm welcome to worldwide exchange on wilfred frost. and seema moody in for sara this morning. >> good morning. let's check in on the global markets. we're expecting a higher on wall street. albeit a small one. to the tune of a quarter of 1%. the dow higher than 30 pints. the s&p by 3.6. the nasdaq by 10 points. we had decent gains on friday. also taking the week as a whole into positive territory for the

indices. the strong performance on friday, europe is higher. albeit not as high as asia. 1% of gains in germany and less in the rest of europe. asia, particularly strong gains for the japanese market. we've seen a slightly weaker yen which helped there. disappointing data out of china in terms of trade. that hasn't weighed on the markets. shanghai got 1%. >> the broader market, there's an interesting discussion around the direction of the price of oil. breaking below $40. in the session higher by 1.3%. trading at $42.33. we'll be speaking to an oil expert coming up. the blockbuster u.s. jobs report has high expectations that the feds will raise rates in september. slightly higher across a basket

of currencies at this point in today's trade. of course, gold continues to catch the attention of traders. now, up about 21% in 2016. many factors including low rates helping gold outperform assets. the best performing assets in 2016. the big question is, how high can it go from here? a lot of people say if the fed holds up, maybe there's more room to go. >> absolutely right. i think moving past brexit, it means more fundamental reasons to go higher. >> central bank policy. actual demand for the shiny -- >> absolutely right. let's switch focus back to another oil commodity. oil prices which are higher. dropped below 40 briefly last week. joining us from london, oil analyst at barclay's. thanks for joining us. >> good morning. >> we've heard things in the past. will it actually happen. >> it's looking unlikely.

again, it's a cue for sentiment. it has helped steer sentiment in the past. they are looking to do the same again given the -- have -- we understand it's venezuela, ecuador, kuwait. haven't heard much noise from the saudis and a bit of a dismissal of a statement from novak of russia as well. the puzzle still remains and i wouldn't say we would really be looking forward to an -- >> miss win, at one point, we saw a temporary balance in the price of oil. what do you think is the main catalyst behind the recent selloff? >> it's the product market. refined products are gasoline, diesel. refineries have enjoyed the first half of the year. they've been building those products much more than that

could have been absolved by the market. that's now returning. it is a case where refineries are falling. the refineries are not costing as much as in q1 and q2. demand overall has been growing at one-third of the rate as last year. last year we were in a similar -- now we're at 0.7, 0.8. the supply side is adjusting. prices are recovering going into q4. >> when we talk about that slower demand growth, which geographic regions account for that underpefrjs as it were. >> china is one, europe the other. i would say the u.s. as well. we've had a good season in the u.s. this was very unexpected. deals still fell weak. we've got some support because of el nino in the summer. i would highlight china as well as europe as the weak points for demand. >> how important is china for

the direction of oil prices? we've got that disappointing trade data overnight. this week, loan growth and money supply and retail sales from the second largest economy in the world. i mean, if that continues to disappoint. where do oil prices go from here? >> yes, you're right. the data that came out today, for instance, in terms of chinese imports, off crude, they have been fairly weak. the trend does show a bit of a down from the start of this year. it is also driven very much by product exports, by the fact that they're also -- they were storing quite a bit of crude earlier on this year. they can rely on that when prices move higher. they're playing the balancing act when it comes to importing crude. we see they have a bit of commercial storage. we see them returning. overall, it's not china that's driving the market at the moment in terms of demand. it's india, the other countries in asia and the middle east. they're holding on so far. >> sum it up for us.

what's your price target for the rest of the year? >> we've got $50 a barrel in q4. $45 a barrel for q3 as well. q3, 45ds and then q4, we see it recovering $50 a barrel. the supply side is adjusted and it will become the demand that we're having. >> those prices, brent forecast not -- thank you very much for joining us. >> now to a developing story. delta says its flights are grounded nationwide after a system outage. nbc's tracy strahan joins us from newark arm. what do we know at this point? >> not much. that's according to the passengers lining up at this terminal unaware that flights have been grounded. not just nationwide but globally for the nation's number two carrier. we had a chance to go inside of newark liberty airport and people trying to check in weren't able to do so. just the buffering circle and

telling them to see a gate agent. delta has been responding to many passenger complaints and they were saying, quote, they know that there is a system outage and hopefully it would be resolved soon. not soon enough for some of the passengers we spoke with at newark liberty airport who were unaware of what was happening until they showed up. >> didn't tell us anything. no e-mail, nothing. it says sorry, an agent needs to check me in. >> you should get an e-mail or something telling me something is wrong. we didn't get anything. >> reporter: this has been going on for a couple of hours now. it's not throughout the early morning hours, a lot of people taking to social media asking delta what they should do, how they should proceed. we've reached out to delta for a comment. they're only saying that flights have been grounded nationwide. we'll continue to bring you updates on the story as they're available. back to you. >> tracie, delta, have they made

comments on flights in the air already? are they all right? >> reporter: we have heard that they're okay according to social media and their company line was responding to those passengers. they say flights in the air have not been affected by this computer outage. only the flights set to depart. >> tracie, that's good to hear. thanks for reporting from newark airport. in other kporpt news, walmart set to acquire jet.com. it's valued at $3 billion and will be announced later today. time for the trending stories. vie ralg video alert. hillary clinton's campaign releasing a behind-the-scenes look at the dnc. the video showing president obama listening to lose yourself, eminem's he to get pumped up for his speech. >> i love that. >> so epic. >> it's fantastic. i love the response has been

powerful. often the politicians caught doing something like this it gets the -- >> even leaders need something to get them pumped up. >> that song seemed to work for him last week. a match made in instagram heaven. theying they took over disney's -- the hamilton creator choosing music from the little mermaid, aladdin and more. he has a platform. why not share his voice and help -- >> is that what he's going to do next? play a leading role for disney. >> we're not sure what's next for him. perhaps it's a big move. >> favorite disney movie? >> beauty and the beast. >> lion king. no doubt about it. behind happy feet and the lego movies, the australian company called animal logic

introducing a postgraduate degree in animation and visualization. the students will be able to practice skills and ones currently working on guardians of the galaxy, volume 2. snie focused postgraduate degree. >> it really is. sticking with entertainment moviegoers headed to the theaters proving villains still dominate the box office. landon dowdy, what movie was that? >> superheroes showing superhero as warner brothers suicide squad takes first place at the box office breaking august records with $135 million open. despite scathing reviews, will smith and margo robby teamed to score the largest. earning $65 million. the bad reviews can't killed the squad. that's the third biggest opening behind captain america, civil war and warner brother's batman

versus superman. the question is, can the trend continue second week in numbers tend to tumble. this will inspire a halloween costume. you've been known to be wolverine, pinocchio. >> it might do. i have an idea for halloween already. >> already? >> already. >> you're a planner. >> i'm not even joking. haven't seen that film yet. it had terrible reviews >> it did. but it did really well. on the friday and saturday, it drops interest 41%. >> batman v superman and watched recently. terrible. i did too. i watched it and i thought it was good. >> there we go. >> this is what makes a -- >> landon, thank you very much for that. nbcuniversal will obtain commercial tv rights to eight harry potter movies and the fantastic beast franchise. they'll air mainly on the sci-fi and u.s. channels. nbc spokesman says the seven-year deal is the largest

movie acquisition in the company's history. reporting the deal which goes into effect in 2018, could be valued as high as $250 million. nbc is, of course, the parent company of cnbc. coming up, today's must reads. but first, our facebook and twitter question of the day. donald trump is twitching focus to the economy. is top rhetoric on free trade going to go down well? send us your thoughts. tweet us at cnbc. see you in a s.e.c. ♪

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the "washington post," i picked one by larry somers. growth and fairness on to -- he's saying they can come together. the most important thing to deliver fairness is headline growth. he writes, at a moment when -- cost zero, the stock market it at a record high and businesses earning record profit margins, we do not need to bribe business toss make investments. that's not going to seem worthwhile. what's needed is more demand for the product of businesses. he argues we should have large infrastructure spend and boost low-income wages. this article in the "washington post." i picked today of all days because the candidates focus on their economic projects this week. >> absolutely. be interesting to see specifically what the republican candidate has to say. my pick was also from the "washington post." it was titled putin would eat

trump's lunch. controversial article saying after 15 years in power, he has tactical -- trump by comparison is similar. the consequences would not be the -- it would be the rise of russian influence. this speaks to. i read an article on this two weeks ago. if it really involves interfering in global politics. we've seen signs of him funding things, specifically the national -- interesting enough, if you look at the rhetoric coming from donald trump, a lot of it speaks to what putin has been saying over the last couple of years. to weaken nato specifically. >> the latest on that front has been over the weekend getting bit closer with turkey. someone who has usually been opposed to. that worrying the west itself.

of all the areas, the tough bits of rhetoric we hear from donald trump, the fact that he's aligned with from putin is one of the most surprising. one would expect it to backfire and it hasn't. >> and worrying as well. still to come, we'll get you ready for the trading week ahead, economic data -- plus anthony chan, chief economist at jpmorgan chase will join us. you're watching cnbc, first in business worldwide.

we're expecting a positive open to the tune of a quarter of 1%. higher by 35, 40 points. getting momentum from oil markets which broke a losing streak last week. we're up again today. 1.34% for wti crude at 42.36. gains across the screen really

today. europe and asia both higher. we're approaching the top of the hour. the team is getting ready for "squawk box." andrew has a look at what's coming up. >> hey. we're basically focused on markets, we're going to talk lots of trump today and then we're going to talk a little bit of zika in between. here's what's on tap. steve forbes is going to join us, as you can imagine, a trump supporter. going to talk about the economic speech that we'll be hearing later today at noon in detroit. later, talking markets in the 7:00 hour we'll talk zika in between with anthony fouch. rudy giuliani will join us, of course, a big supporter of donald trump. not just about the economy and about trump's leadership and some of the conversations that they've had behind the scenes. we hope to bring you all that in the next three hours. will? >> we look forward to that in

ten minutes time. a new week beginning on wall street. here's a look at the agenda. tomorrow, look for the first -- productivity and labor costs. thursday, we get july import prices and on friday, july retail sales, producer prices and august consumer sentiment. we've made it through the bulk of earnings season. we'll hear from news corp. today, tomorrow. coach, disney and solar city. wednesday, michael coors, wen wendy's and shake shack. have you had the burger? >> i have. i had the beef burger. >> proud of you. al bab i on thursday and macy's a rounding out the week on friday is j.c. penney. joining us to talk about this week and about job support, anthony chan, chief economist at jpmorgan chase. thanks for joining us this early. a blockbuster jobs report on friday.

it raises the expectation of another fed rate rise potentially in september. why is the market taking it as a positive development? >> the market is taking it positively because of comments suggesting that there are more speed bumps before the federal reserve ax. they're looking at international developments and the implications for financial conditions to boil it down. basically says not going to be so anxious to raise rates. >> one market reaction was suggesting slightly the opposite. albeit in a pretty muted fashion. somewhat your latest expectation for the next hike is when? >> i think right now the odds are overwhelmingly in december. doesn't mean that september is completely off the table. you saw that ten-year creeping up to 157. so that suggests a little nervousness. given the fed rhetoric, it suggests december is more likely. >> the international risks that you pointed out what, is the larger risk in terms of what the fed is looking at right now? is it brexit or is it china? >> i think it's a combination of

both. everybody knows if you look at the purchasing manager survey, it looks like the third quarter in the united kingdom will be a negative quarter. there was a strong reaction by the bank of england. that may offset some of that. right now, it's dicey. in the next 12 months, there may be no economic growth. that's why the bank ofening lands, mark carney basically said more to come possibly. >> more to come possibly. certainly on his perspective. is there more to come when we look at bond market gains across the rest of the world, particularly japan, germany, now in the uk we've seen a much lower uk ten-year bond yield? does that move further? do we see further easing and negative rates and more international bonds? >> i think you may see more easing. kuroda said he's not going to disappoint. when someone says that, it doesn't mean they're thinking about -- they're talking about easing more.

>> in some ways, skeptics were saying kuroda didn't do enough by cutting rates and in negative territory. they were hoping for helicopter money stimulus to be announced. do you think we could get that from japan? >> thas that's challenging for ku kuroda. he was waiting for that fiscal package. i think he will come through in the next meeting. let's talk about earnings seasoning e. season. still quite a few companies to come. has earnings growth delivered? >> i think it is starting to deliver. it hasn't fully delivered. as we proceed later into the year, energy prices have come back after that bear market where we saw energy prices come down 20%. of course, the dollar, if it stabilize sz, the it's still down on a year to year basis. the negatively headwinds will dissipate as the year

progresses. that's why the consensus earnings are -- i think it's too aggressive and it usually is before it comes. certainly, strong earnings next year ending with a 5 to 7% are possible for the s&p 500. >> the steep decline in oil, one could potentially say that forward looking earnings, particularly from the energy sector may not be -- >> remember that from the bottoms in the first quarter, energy prices are up way higher. they're more than 50% higher than they were at the first quarter of this year. the possibility of energy prices moving up, especially of opec surprising them -- >> do they ever surprise? >> necessity might surprise. >> if that -- we're seeing supply actually being cut back. even in the u.s., we've seen the supply of oil or production coming down. all those factors will help energy prices >> in terms of your sector preferences at the moment, the banks have responded a little bit to earnings season such that all s&p 500 sectors now in

positive territory. is there going to be more momentum, the jobs market from friday? >> i think it will. it will boost loan demand. of course, nothing is as good as a steepening yield curve. that will happen in time as the federal reserve comes and not disappoint before the end of the year. >> what are your top preferences sniemts technology, health care sector. we believe that see rentsly the discretionary will come through. the 4.2% for consumer spending was robust and suggest tas consumers are coming through. that's going to carry through, especially with more jobs being created. by the way, everyone complains about in employment -- saying it wasn't strong enough or petering out. the labor course rate is 3 percentage points from the high that we saw in 2008. if we say that participation rate going up, you can see more job creation and wage pressures

not as intense. >> these sort of protection type assets have been bit up significantly whether gold or bonds in recents weeks or months. how are you advising complaints? >> gold is not -- good hedge but as the federal reserve raises rates, that's not a good thing for -- interest rates are fairly low. gold is still a winner. do you see the s&p 500 continuing its rally today? >> i think that the s&p 500 will gradually continue to creep higher. it's anticipating next year's earning. this year earnings will be flat to minus 1. so this year, the fundamentals are not as good. but the market is anticipating it. anthony, great to have you with us. anthony chan of jpmorgan chase. around about 20 seconds ago. that's the top of the agenda. >> china trade data. seeing how market responds and

inflation tomorrow. >> oil prices dip below. but positive territory today. that's it for worldwide exchange. "squawk box" is next.

happy monday. opec members call for an out put frooz. reaction to the market -- deal news. walmart set to buy jet retailer. or retailer jet.com for $3 billion. we have an announcement expected today. business travelers, listen up. delta airlines suffering a worldwide computer outage and flights around the world are grounded. monday, august 8 pt, 2016. first week of the olympics is under way. i'm celebrating as you can tell. "squawk box" begins right now.

live from new york where business never sleeps, this is "squawk box." good morning everybody. welcome to "squawk box" here on cnbc. i'm not sure why we're playing this song. but i'm becky quick. andrew is to the right of me, joe kernen is off today. >> i don't want to be -- >> sitting in for us this hour is steve forbes. chairman and editor of forbes media. great to see you today. >> great to be with you. >> stuck in the middle. >> a lot to talk about. we'll be rolling out an economic plan and stief will fill us in and talk about those details. in the meantime, let's look at the u.s. equity futures. on friday, the s&p 500 and the nasdaq setting new record closing highs. niece are all-time highs. you can see this morning that there are green arrows once again this morning with the do