good morning. oil shock. crude prices extend their slide on the signs of a u.s. supply gut. disney disappoints. investors on edge over espn subscribers. and washington watch. things getting heated over the hearing of president trump's travel ban. the details coming up. it's wednesday, february 8, 2017, "worldwide exchange" begins now. good morning. warm welcome to "worldwide exchange." i'm wilfred frost, along with

seema mody. in for sara today. good morning. >> good morning. >> let's check in on the global market action. we did see record intraday highs, so the dow and nasdaq yesterday, a record close for the nasdaq, not for the dow. but the daily moves higher were only slight. 0.2% of gains for those two indices. the s&p gains, but even less than that. this morning we are expecting slight gains once again. the dow called higher by 33 points. s&p by 2. nasdaq by 4. yesterday consumer staples and tech outperformed energy, as oil prices fell 1.5%. let's look at oil prices again this morning. the api reporting a large increase in weekly crude stockpiles than expected the. up by 14.2 million barrels last week. official data from the u.s. energy department later this morning. oil prices looking at their fourth day of declines out of five. third day of pronounced declines.

1.5% for monday and tuesday in terms of price declines. likely to keep remember sure on the energy sector. >> the bank of japan releasing the minutes from its january policy meeting. board members saw improvements in exports, consumer spending and capital expenditures but warned it may take time for inflation expectations to pick up. members expressed concerns over the uncertainty surrounding the trump administration's policies and britain's exit from the european union. this comes ahead of prime minister's abe's visit to washington on friday. separately new data from the ministry of finance showing the current account surplus hitting a nine-year high in 2016 helped by lower costs for imported oil and improves exports. taking a gauge of stocks in asia, the nikkei higher closing higher by 0.5%. hang seng and shanghai posting

gains. gains right now in china. i should point out in india as well as rate there's were kes t unchanged. slight gains across europe yesterday. a flat ftse 100 today, but gains for continental europe, france leading the charge up 0.7%. as for the broader markets, the ten-year treasury note. we saw an interesting move once again in the yields. below 2.4%, 2.39% to be precise. yesterday mike santoli pointing out during this rally it's been rare that we've seen equities outperform significantly on days when yields have not been rising too. the rally has been largely driven by money coming out of bonds, going into equities. seeing bond buying this week. yields come down. that's holding back equities from meaningful gains. 2.39%, yields across the board slipped yesterday. let's look at the u.s. dollar.

surprisingly, despite yields slipping yesterday, we did not see the dollar slip. the dollar moved higher because of hopes that march might be on the table for an interest rate hike. decent move higher for the dollar, up 0.5%. today it's mixed. moving -- basically flat against the yen. the pound is a bit soft against the dollar as is the euro. 1.0643. >> the pound, interesting move after that mpc member yesterday said maybe it is time to raise rates in britain following the boe meeting last week where all nine members said they don't think it's time to raise rates in the uk. interesting dissenter yesterday. >> we saw the pound soften at the start of trade, then during the course of the day it had bounced back. a bit soft today. let's look at gold prices. it's been a decent run for gold, as the chart paints for you there. flat today at 1,236. disney, the media giant reporting earnings that topped

wall street estimates but revenue fell short of consensus. rising costs and declining viewership at espn weighing on results again. we got more direction from the company on its leadership plans, with bob iger saying he may stay beyond his planned retirement next year. >> i will do what i think is in the best interest of the company, and the board will help determine that. while i believe we have a strong, robust succession process underway, i know a lot of people are you're use about it, safe to say it's a strong process. i believe a successor will be chosen under the right circumstances at the right time. if it's in the interest interest of the company for me to stay longer, i'm open minded about that. >> joining me now to discuss the results, tim nolan from macquare. let's talk off with this leadership succession. is this good for disney in the short-term but bad in the long-term because they can't find a suitable replacement for

iger? >> he won't speak for the long-term. for the short-term, yes, it's good. investors have been very happy with bob iger's performance as ceo. it comes as no surprise, really. he was due to retire in about 16 months, i think that's too short a time frame to have somebody step into the role, whether internal or external. people will take it well knowing he will likely be there for another two years. >> there's been talk, tim, of cheryl sandberg of facebook take the helm of disney. would than a move welcomed by disney shareholders? >> i had discussions about this with numerous shareholders. the opinion is mixed. on the one hand having somebody who comes from a digital world might be interesting and positive development for a company whose in many peoples opinion largest issue is the digital distribution of its content. on the other hand, disney is a broad, diversified company. digital media is one important

aspect of it but there are others when it comes to parks, consumer merchandise, film. is she qualified to do that is another question. it's a very open question. she is one of perhaps many people in the mix. let's talk about espn and sports. clearly that's an area of concern. are you altering your projections of that part of the business following the call or is it something that everyone is keeping an eye on, a slow decline over the course of the last couple of years. >> we're not changing anything. we maintained a slightly more constructive view on the future of espn than some. it's based on our opinion that strong content compared with strong distribution potential will win. espn has that with the bamtek platform they acquired a few months ago. numbers from espn were not good we new subs would continue to decline, they did. it doesn't seem they got worse in the quarter.

slightly surprised that advertising revenue was lower. though had some issues with college football games falling into the following quarter. they already did say espn was pacing into positive advertising growth into the current quarter, excluding the timing of those college football games. overall i would say slight miss on the advertising side, but no real change in the story here. it's not necessarily a good story, but we see plenty of optionality for direct to consumer ott sales. >> i wonder whether you feel certain individual big names like "star wars" are flattering the picture there somewhat. on "star wars" particularly two more films due to come out quickly. are they milking that cow too quickly? will that hurt them in the long-term? >> "star wars" is a big component to the film studio story right now. it's not the only one. there were two other films in the quarter that contributed,

muana and "doctor strange." i think disney's strength is its fantastic able to produce franchise films. they do this like nobody else. we did research recently fining disney's per title film is about double of any other u.s. studio, over $400 million. it's the franchise value of all of their films put together that does so well. over the long run there are four more "star wars" films to come out. pretty much one per year. i think everyone is looking forward to the next one this coming december. i think they set themselves up very well for the next few years with big films people are looking forward to. they will have a long life in the aftermarket. >> hopefully the same type of success they have seen with "frozen." >> there will be another "frozen" movie coming at some point. >> tim nollen, thank you very

much for joining us. >> we are down quite sharply after the reported numbers, they recovered over the course of the evening. down less than a half percent. there's no economic data today but still plenty of earnings reports. before the open results from ail l allergan. to politics, the fight over president trump's travel ban continued last night as a justice department order was pressed on whether the executive order was discriminatory. the judges from 9th circuit court of appeal s ds did not immediately make a decision but said the decision should come down later this week. back to corporate news, stocks to watch today, yum china topping profit expectations for the fourth quarter. the fast food operator, which reported for the first time as a

stand-alone company just missing wall street targets for sales at established restaurants. panera bread, earnings beating the street thanks to improved digital offerings at its stores. digital sales account for 24% of total sales in company-owned restaurants. buffalo wild wings missing estimates. the company seeing a drop in same-store sales and giving a weak outlook for the current fiscal year. gilead sciences reporting better than expected revenues and a dividend hike. gilead also reporting disappointing sales for its help sit hepatitis c drugs. and zillow saying they expect to surpass $1 billion in annual revenue for the first time. take two interactive cutting profit forecasts for 2017 due to

higher royalty payments. the video game publisher reported a 15% jump in third quarter revenue. coming up on stocks to watch, another one is mondelez. as we head to break, a look at where european equities are trading at this hour. slightly higher. you're watching "worldwide exchange" on cnbc.

. welcome back to "worldwide

exchange." if you're just getting up, let get you up to speed on market action. two bearish factors yesterday did not derail equities. they both stand today and are not derailing futures. oil prices down yesterday 1.5% as they were on monday. energy sector has been a tough performing sector. this week down another 1%. 51.62. it will be the fourth out of five days of declines and the third in a row for oil prices. also yesterday we saw money going into bonds. did that mean it came out of equities. the ten-year treasury note at 2.38%. dropping below 2.4%. over the course of the last three, four months when money has been going into bonds, that has not been great for equities, though yesterday pretty resilient. switching to futures, saw slight gains for the s&p and dow, resilience in the face of

otherwise slightly bearish factors. and we get that this morning despite oil prices declining. about 0.1% of gains across the futures market. seema? >> making headlines, a u.s. federal judge has delayed ruling on whether to dismiss the insider trading case against billionaire lee couperman and his firm omega advisers. following 90 minutes of arguments yesterday, the judge said he would take the matter under advisement. the s.e.c. charges couperman with illegal trading after they found out about the planned sale of a unit. cooperman is said to have made $4 million from his trading on the sale. mondelez posting lower than expected holiday sales and profit. a strong dollar hitting the value of sales outside the u.s. the company gets more than 75% of its sales outside this country. it expects full-year ref revenue

growth to be hit by 1%. the fight between arconic and elliott could be getting worse. share prices are flat this morning. and breaking even for the first time is twilio. the company is the communication backbone behind facebook, what's app and others. rio tinto returns to profit in 2016 as prices for iron ore and other commodities rebounded. the company continues to cut costs and improve the efficiency of its mines. rio will pay a full-year d dividend of $1.70 a share, lower than in 2015 but higher than expected. shares up about 1% on the ftse

100. sanofi in focus, fourth quarter net profit beat forecasts, but the french drugmaker expects earnings to be flat to slightly olower. sanofi's ceo says he is no hurry to do m&a. and softbank rose 71% thanks to strength in the japanese telecom market and shrinking losses at its u.s. unit sprint. softbank ceo says president trump's promise to deregulate the economy would be positive for the company. softbank one of the first international companies to come to trump tower once president trump was inaugurated to voice support for the administration and to bring more jobs to the united states. >> exactly. ahead of prime minister abe's visit this week to meet president trump. it's clear he wants to come with clear corporate plans that he can lay down and say, look,

we're clean to make sure this partnership works, even though we're not doing tpp. we want a bilateral set of relations. >> keeping an eye on automakers, they'll need to do a bit more to drum up support. >> i like how you stuck "the" in front of trump tower. still to come. the latest on trump's controversial travel ban an a new study puts a number on how the executive order is weighing on tourism. before we head to break, here's the national forecast from the weather channel's jen carfagno. good wednesday. middle of the week, this is the kind of weather our grandmothers used to say, get sick weather. cold one day, warm the next, much colder. that's happening in the east. yesterday, cold enough to have snow an ice in new england. today we're talking record temperatures, going to 59 degrees in new york city. this snow that's coming through the midwest, this overnight starts dumping in the northeast. get ready.

tomorrow morning's commute will be a difficult one with snow coming in. it starts today. moving across that i-70 corridor. the storms from yesterday are over. the survey crews will be out in the new orleans area after a couple of tornados there, and in the west a steady stream of moisture with more rain coming in to the bay area. heavy rain coming in by tomorrow. the temperatures are still up. the only cold air now, northern plains, but that's spreading east into the next two days. that's your coast to coast forecast. i'm meteorologist jen carfagno for the weather channel. "worldwide exchange" continues after this.

welcome back to "worldwide exchange." s&p 500 and the u.s. markets are pointing to a higher open here in pre-market. keep in mind the dow jones just exactly two weeks ago broke above 20,000 for the first time ever. since then we've been drifting at or around those levels. those animal spirits we had two weeks ago seem to be fading. we'll see if tomorrow's economic data will perhaps reconfirm the rally on wall street. nasdaq in focus up about three points. closing at a record last week. some of the best performing stocks there include apple, up 14% already in 2017. facebook up a similar amount. looking at the oil market, that's where we are seeing action, down about 1%. 14.2 million barrel build according to the api, that's five times higher than what analysts were anticipating.

>> let's switch focus to politics. the feud over president trump's travel ban continuing last night. we have a better idea of when we can expected a decision on the controversial executive order. for more edward laurenwrence jo us from washington. >> a three-judge panel is deciding whether the travel ban should stay in place. all right 9th circuit court of appeals probed both sides of the travel ban executive order. all done over conference call, the three-judge panel asked tough questions of the trump administration lawyers. >> how many federal offenses have we had being committed by people who came in with visas from these countries? >> i could -- >> the ultimate answer was there haven't been any. >> the department of justice argued we need to have a balance in immigration policies that guard against terrorists who

want to do americans harm. >> the president struck that balance, the district court's order has upset that balance. >> reporter: the attorney for the states of washington and minnesota says it is the court's responsibility to make sure that the president does not overstep his authority and send the country into the chaos we saw when implementing the travel ban. >> that judicial role has never been more important than today. >> reporter: president donald trump won't back down. >> some things are law. some things are commonsense. this is commonsense. >> isis is trying to do us harm. >> reporter: the three-judge panel is expected to make a decision by this weekend. either way it may end up at the supreme court. sticking with washington,

president trump's travel ban is deterring travel into the united states. that according to the travel analysis company forward keys. travel dropped 6.5% when the executive order was put into place from january 28th to february 4th. there was an 80% slump in rez vag reservations on the seven countries listed on the order. >> i suppose 80% fall from those countries, that's a big fall but not surprising. 6.5% across the board, when there are not many other factors to point to, that's a stark and worrying statistic. >> we'll have to follow it for another couple weeks. >> a strong, early indication. still to come, the top stories and a round up of global markets. and we'll tell you what spotify and accuweather are doing to make this winter more tolerable.

good morning. markets now green arrows across asia and europe. u.s. equity futuring pointing to a positive open on wall street. disney shares dropping after espn dispespn disappoints again and iphone or android, why your phone of choice could be doing damage to your love life.

it's wednesday, february 8, 2017, "worldwide exchange" continues. ♪ good morning. warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost along with seema mody in for sara today. yesterday a record intraday high, not a record high, slight gains for the s&p, which was essentially flat, just green instead of red. consumer staples and tech outperformed energy, the worst sector for a second day in a row. oil prices fell 1.5%, down again this morning. as we look at things this morning, expecting another slight positive day. the dow called higher by 27 points. s&p by 1.5.

nasdaq by 2 points. gains across europe this morning, ftse 100 basically flat. the rest of continental europe seeing gains. france up after slight gains yesterday. in asia big markets are higher. green for hong kong, china, japan and india. some of these smaller southeast asian nations are in the red. resilience there, up about a half percent for main markets. >> in europe, we'll have to see if the rising political uncertainty ahead of the elections will draw investors out of european stocks. the german dax closing at the lowest levels of the year on monday. they have come back a bit, but something to watch, especially after the political shocks we saw in 2016. >> march 15th, the first day when we get the dutch elections. more focus on the french elections which come in the next couple of months. april and may. >> as for the broader markets,

significant moves in the oil market, wti crude trading at $51.60, down about 1%. ice brent crude, the more international gauge down about 43 cents. this after we saw a much larger build according to the american petroleum institute of 14.2 million barrels. five times what the market was expecting. a quick word in the bond market -- in the treasury market. minneapolis fed president neel kashkari publishing an article yesterday about why he voted to keep rates steady. this as markets forecast three rate rises in 2017. the ten-year trading at 2.38%. in the dollar world, the dollar has been rising, right now lower against the euro and lower against the yen. that seems to be the story in today's trade. that perhaps helping the gold market. let's look quickly at the shiny yellow metal.

you can see it's trading at $1,237. up on the day. >> i think the main takeaway from the performance, it's not resoundingly positive in the equities markets, but factors could have derailed it. most notably money coming into bonds, yields coming down, oil prices off. we're still holding on to gains. so not resounding positivity but resilience in the markets. those animal spirits helped the dow creek above 20,000, perhaps not there as much today. we'll see if it's the economic data or the upcoming fed data that will change the story. plenty of earnings reports. before the open results from allergan, time warner, humana. after the close, numbers from prudential financial, whole foods and lions gate. a lot of corporate stories to keep an eye on. the first one disney, reporting earnings that topped consensus

but revenue below estimates and fell about 3% from a year ago to $14 billion. rising costs and declining viewership at espn raised concerns again. bob iger addressed the slump in an interview after the release. >> i think there's way too much pessimism about espn. espn is still in demand from three constituents you wanted to be in demand the most from. one, distributors. two, consumers. three, advertisers. the reason it's in demand is the brand is still strong. the product is still good. we've invested nicely to keep that product as high quality as possible. >> we got more direction from the company on its leadership plans with iger giving his first public signal he may stay beyond his planned retirement next year. meredith corp and a group led by edgar brafman junior are moving ahead with the pursuit of

timing. the publisher is exploring a sale. meredith, which publishing magazines such as family circle and better homes & gardens signed a nondisclosure agreement and is expected to review "time's" books and meet with management. the group has also met with some time executives. they have other op shups like taking on a partner and selling off some assets. to apple t has reportedly hired the former amazon fire tv boss to run the apple tv division chl division. the executive joined amazon in 2013 and oversaw the launch of the fire tv products. before that he spent time at netflix. syngenta says progress is being made to win regulatory approval for its takeover by chemchina and expects the $43 billion deal to close in the second quarter. the companies are still awaiting approval from the u.s., eu and five other countries. the deal is important for china,

seeking to secure food supply for its population. syngenta's lineup of chemicals and seeds could boost china's output. parsley energy is buying assets in the permian base from double eagle energy for nearly $3 billion. this is the company's second biggest deal in the west texas oil patch in the past month. the energy industry overall spent more than $28 billion buying land in the permian basin last year. triple what they spent in 2015. shares down about 4.6%. independent investment firm moelis and company has been chosen as an adviser on saudi aramco's ipo. last month they invite the banks to pitch position for the world's biggest offering. saudi officials expect aramco to be valued at a minimum of $2 trillion.

the stock, as you can see, up 4%. a big coup for them to have a significant position on this ipo if reports are accurate. >> interesting to see saudi aramco pick moelis versus go goldman and jpmorgan which typically have these deals. it's interesting. >> it's interesting some of the dig ba big banks will be on this, but they will have a bigger position than expected for a boutique. sharp may started building a $7 billion u.s. plant in the first half of this year. we're talking about the japanese displaymaker. last month fox con's ceo said he was considering building a u.s. plant but did not elaborate on a time frame. shinzo abe is set to meet with president trump on friday, he is expected to unveil investments

to create 700,000 u.s. jobs. timing is interesting. >> indeed. l'oreal exploring a sale of the body shop which could value the chain at more than $1 billion. l'oreal hired lazard to review its options for the body shop which it bought in 2006. sales kopcontinued to slump in contrast to the rest of l'oreal's products. the financial times says some private equity firms have already expressed an interest. shares up 0.4%. time for our top trending stories. elizabeth warren silenced on the senate floor yesterday when trying to speak out against jeff sessions as the next attorney general. warren tried to read a liter from coretta scott king but was

stopped by republicans. >> mr. president, i'm surprised that the words of coretta scott king are not suitable for debate in the united states senate. i ask leave of the senate to continue my remarks. >> is there objection? >> object. >> i appeal the ruling -- >> objection is heard. the senator will take her see the. >> warren stepped outside to read the letters, ten pages on facebook live's stream. she was silenced within the chamber, took to facebook live to get her point across. >> what we would expect from elizabeth warren. let's talk about spotify and accuweather teaming up to bring you the play list of your dreams, the pair building climatune, a website that generates play lists based on the weather in your local -- in

your location. that means happy music on sunny days and slower music on rainy and snowy days. i should think it would be the opposite, when it's raining, you want lady gaga, taylor swift. for you, britney spears possibly. >> fantastic choices. >> i'm not sure i change my choice in music based on weather. >> do you wanted taylor swift when it's foggy -- >> full stop? yes. let's talk about a different type of betting, a match.com survey says your smartphone choice may play a role on whether or not you score a date. iphone owners are 21 times more likely to judge others negatively for having an android and those who have an android are 15 times more likely to judge others negatively for having an iphone.

i wonder how many numbers have been taken on this i can't believe there's actual data to back that up. some of the suggestions there are statistics are strong. >> this phone has become an appendage. it's a screen we look on more than any other device. >> when you go on a date, you have an iphone as well. we're well matched. did you hear that? it's meant to be. >> so much can happen. >> that a no to a date? >> no -- no -- no, definitely. but -- but i will say -- >> i need to buy a samsung phone. >> people can now say it's not you, it's your smartphone. >> which someone said to me, i would take to mean sure, it's me. >> that's data, check out the information on match.com. here's a look at oil prices this morning. down 1.5% monday. down 1.5% tuesday.

energy the worst performing sector on tuesday. we're back in another couple minutes. ♪(music plays) ♪ heigh ho! ♪ heigh ho! ♪ heigh ho! heigh ho! ♪ ♪ heigh ho! heigh ho! it's off to work we go ♪ ♪ heigh ho! heigh ho! ♪ heigh ho! ♪ heigh ho! ♪ heigh ho! heigh ho! it's off to work we go ♪ ♪ heigh ho! heigh ho! hey, what's up man? here's to all 180 million of you early risers, go-getters, and should-be sleepers. from 80 thousand of us at delta... because the ones who truly change the world are the ones who can't wait to get out in it.

♪

welcome back to our must reads. i want to continue the discussion we were just having. but we're not allowed to. that is saved for three things to watch. let's have a look at the must reads. my pick in the "wall street journal." the fastest way to fire richard

cordray, the head of the cfpb. it came out clearly in a "wall street journal" interview with gary cohn has the intention of the administration is to do that. since the executive order on financial deregulation came out last friday, how much can be done until you pass congressional laws. this article is an interesting take on the cfpb, removing cordray as the head, and what can be done. says it is possible. goes through the complexities of what the executive can do without backing. quite a niche area in terms of exploring whether stocks are right to run off the back of that executive order or whether we have so many hurdles to get over. it's a niche one. it's a banking one. it's a decent complicated read on what the executive can achieve without congressional approval. >> perhaps shedding light on the importance of this specific person. my pick is in the "washington

post." michael flynn, trump is like a chariot driver in ben hur it reads the nsc usually tries to act as an honest broker among cabinet agencies, but how will it function under a head-strong president who sees his role as a disruptor and tweeter in chief, this challenge falls to national security adviser michael flynn a retired army lieutenant journal and an administration where two cabinet positions are held by retired four-star generals. the military won't lack influence. i bring this up to highlight in a different context the important role that michael flynn plays, not just with his heavy experience in the military, but because there's been a lot of talk about the role that steve bannon plays as chief strategist to the president of the united states. his role, his sway if any at l all. perhaps more light should be shown on michael flynn. >> the other person in the headlines and getting to work fast on international relations,

not just with russia, where people focused on his relationship with putin, is rex tillerson. exxon had strong ties and position across various oil projects in australia. so his relationships coming to the fore. we know about them, we know about them in russia, there's other countries where rex tillerson has strong ties. >> they say the most important role after the president is the head of -- secretary of state. the state department. you're right. that was our must-reads. coming up, the global head of investment strategy ha strategy hans olsen will join us.

♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. welcome back. approaching the top of the hour, so the team is getting ready for

"squawk box"." a andrew has what's coming up. >> we have a fine show, not only because you're bringing your accent and your fine sophistication. we will have todd rokita joining us. steve forbes will talk about trade, policy and taxes on the border. and then, you ready for lin sanity? jeremy lin will join us, talking basketball and technology in the state of basketball. that tall man you sit next to, by the way, you can't dunk? >> we discussed -- i'm not sure. can we get something set up so i can try? >> maybe you and jeremy lin can do that. can you touch the rim? >> maybe at a jump. despite llinsanity being a tall

m m man -- >> and we have the outgoing ceo from glaxo smithkline joining us, big day coming up. and we'll see you. that makes it the biggest. >> you're too kind. i don't believe t none of the viewers do either. let's preview what to expect this trading day. u.s. futures at this hour pointing slightly higher after slight gains yesterday thain ud clood a record cloand joining us is hans olsen. >> good morning. >> is it encouraging to see the resilience of stocks at the moment in the light of things like oil prices declining, and

bond yields slipping quite noticeably lower this week? >> yeah. i think that's right. i think the interesting thing in all of this is that the back drop that all of this is occurring in from an economic perspective has been quite positive. i just came off a three-week travel across country. meeting with clients, visiting different cities, the picture i got is unambiguously positive. if you look at the jux to taposn of policy initiatives, it looks like we're operating within a shrinking margin of safety at the moment. >> when we look at the economic landscape, one thing is overlooked. inflation is creeping up and this global reflation trade what it means for investors. the good and the bad.

do you think at some point inflation will creep up so fad that it may be a problem? >> that's a good point. historically inflation has not been a problem until it's a problem. if you look at the pipeline for some of the -- the pressures that would push inflation higher, they're fully present. most notably wage pressures. when you look at the labor market where we're at full employment right now, from conversations that i had across the country, the big complaint is finding qualified workers that tells you that labor market is tight. it would be a matter of time before those pressures really manifest themselves in the overall numbers that we observe for month to month. >> what do you expect in terms of rate hikes for the rest of the year? lots of toing and froing, and patrick harker's hawkish comments did move the dollar.

>> my expectations are a bit more modest. i would expect something on the order of two rate hikes this year. the fed has an aversion to big moves. their predictions for the most part have been unburdened by success. i think a much more modest view on it is in order. >> as we dissect the latest out of washington, the travel ban, now there's been talk of president trump perhaps restricting h1b visas. how much of an impact could these new rules around immigration impact your view on equities, particularly the multinationals that rely on h1b visas bringing in these high-skilled talented people? >> high-skilled is the operative record there. when you look at the employment of the labor market, it's about

higher skilled workers. those folks are in short demand. anything that restricts the supply of that will put more pressure on the price, which flows back into some of the cost push which is inflation. >> let's talk about the global picture. data has been solid this year for the most part. are you encouraged? are you putting money to work in europe? >> we talked about that in the past. if you look at the pmi data across the uk, across the eurozone, they're surprisingly strong. if we see this follow through and with a weaker euro, we'll see the same thing happen in the eurozone that's been happening in the uk, which is a rise in the earnings expectations. that's good for equity prices. >> rise in earnings, but also growth. wilfred, you and i have spoken

about this before, europe in terms of growth is outperforming the u.s. talking about how political uncertainties are weighing on growth. a nation still relying on qe, they're seeing better growth levels than we are in the u.s. >> that's a good point. that's one of the most undercovered stories, nobody is talking about the performance of the european market. this is against the back drop of a fair amount of policy uncertainty. you have elections, probably disruptive elections in france, possibly in germany, maybe knin italy. far from certain, but the economy seems phased from that. if there's traction to it, people should look at the equity markets. >> we'll have to see if that political uncertainty in europe ripples into other parts of the periphery. >> we have seen yields lag out a bit. as you rightly say, growth has been picking up.

that's it for "worldwide exchange." keep an eye on disney at open. shares now only down about half a percent. "squawk box" is next. if something doesn't seem right, so everyone comes home safely. because safety is never being satisfied. and always working to be better. shis it dna or olay? us n20-something skin. . new olay total effects fights seven signs of aging to help take years off of your skin age. who needs dna when you have olay? new total effects.

good morning. disney disappoints, investors on edge over espn numbers, but shares moderating a bit overnight. and oil shock, crude prices extending their slide. and washington watch. things getting heated over the hearing of president trump's travel ban and senate democrats holding another marathon session on the confirmation of jeff sessions. details about that straight ahead. it is wednesday, february 8, 2017, "squawk box" begins right now. ♪

live from new york where business never sleeps, this is "squawk box." good morning. welcome to "squawk box" here on cn cnbc. i'm melissa lee along with andrew ross sorkin, becky and joe are off today. sitting with us for the hour is joe terranova. >> you guys are going to feel so comfortable. >> we are already talking stocks, price action, technicals. >> are you okay? i do have a cold. we should mention this. the last time -- we talked about this about -- you were on the show. >> i was here. >> i wanted to bring a prop. we had a lot of viewers who went and bought this stuff because i promoted it. >> endorsed it. >> we had a guest from a product called x-clear, a celine spris . which i have been