good morning. the bulls bounce back. the dow breaks its eight day losing streak. financials lead the way higher. british prime minister theresa may signs the article 50 letter. it will be delivered to the eu in a couple hours officially triggers brexit. and the rise of the machines, blackrock overhauls its actively managed equity business cutting employees and slashing fees as stock picking goes high-tech. it's wednesday, march 29, 2017, "worldwide exchange" begins right now. ♪

good morning. very warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm susan li in for sara eisen. >> let's get to the global market picture, coming off a day where the dow ended ets eigits day losing streak. t it was financials bouncing back and leading the charge to the upside that allowed that recovery. today we are flat in the premarket. a bit of red for the dow and s&p. the nasdaq in the green. yields recovered from the lows, back above the 2.4% level. sitting at 2.409 today. yesterday we were up around 2.2.4 2.42%. so slipped a bit over night.

the tight correlation between what the ten-year yield is doing and what bank stocks are doing has been extraordinary to see. as yields moved higher yesterday, as did banks, that dragged the rest of the market with it. >> let's check on asian equities this year. asian trading off the end of the dow losing streak. minimal gains across the board. saw japan up 0.1%. the hang seng advancing, shanghai lower by 0.3%. asia, we finished the session intact given that we're expecting the article 50 letter to be delivered today. europe early on in the wednesday session. let's check in. as you see, positive. i feel this brexit talk and expectations have been priced in. >> absolutely right. we all knew the invoking of article 50 was coming today. brexit itself not a factor in european trade. wall street gains not a factor either for asian or european trade because it came off of two days of gains already. not playing catch up so month. the month to date picture for

asia and europe much better than the returns state side as we near the end of march and the end of the quarter. let's look at the broader markets. oil prices coming off the back of a 1% or so gain. another three quarters of a percent today. up 0.7% for wti. 48.7. dollar boards, a bounce back for the dollar up about half a percent. up slightly today. not doing too much. pound had been lower. it's now flat. essentially the dollar slightly stronger today after half a percent of gains yesterday. still down for the month. this is a late end of month slight rebound for the dollar in what has been a surprising slipping really this quarter and this month. >> pound back up to 1.24. lots to watch out for today. data on the housing sector.

more fed talk. february pending home sales are due out at 10:00 a.m. eastern time. then chicago fed president charles evans, boston fed president, eric rosen grin, and san francisco fed president john williams will be in front of the microphone today in an interview on cnbc yesterday, steve liesman asked fed vice chairman stanley fischer if the average fomc member forecast for two additional rate hikes this year is just about right or if the markets should prepare for something else. here's what fischer had to say. >> that seems to me about right, that is to say that's my forecast as well. but, yes, you have to be certain -- you know for sure that you don't get everything right, particularly about the future. you need to think about what happens if the economy is growing more slowly or the economy is growing faster. >> so fisher says the fed's current outlook has not changed much from its march meeting. he also adds that the central bank is closely watching

policies coming out of the trump administration. i think fed funds futures now pricing in a 53% probability of a move in june. >> the interesting take away of yesterday, not just from mr. fisher but all sorts of fed speakers, the fed members were ability to influence the yield curve again. it wasn't just politics, that belief in the reflation trade lessened a bit over the last week, and we got a we are mirems is a two-way battle, and they want to raise rates. >> 2.4% in yields, better than 1.5, 1.6% dividend yields on the s&p 500. >> a lot higher than a year ago. the top global market story, british prime minister theresa may triggering a brexit, signing a letter to invoke article 50. the letter will be hand delivered to donald tusk in just a few hours. today's action marked the start of the divorce talks between the

uk and eu, two-year process ahead of us. let's discuss what it means for markets. joining us is jim melon. good morning to you. how are you? >> doing well, thank you. >> we've known this day was coming. it's finally arrived. in terms of the start of negotiations, is there downside for the markets in the short-term or was this already priced in? >> i think the down side of the market is because it's overpriced, but i don't think it has anything to do with brexit. the pound has been climbing a wall of worry recently. today on the big day it's bounced. i don't think the pound will come under particular pressure. i think the main markets are probably fully valued and deserve a breather. they will correct. but nothing to do with brexit. >> more broadly, all factors considered, you've been positive on the pound last couple of times you've spoken to us. with the levels we're at today, is that still your view?

>> i would think the pound will go up to 130 against the u.s. dollar and rise against the euro given the problems in the eurozone, which persist despite a dead cat bounce. it's neither significantly overvalued or undervalued. to be quite honest, the uk economy continues to be quite robust and will again be the strongest growing major european economy this year. >> very interesting. i was looking at the proxy plays over in asia, since we're early in the european session, talking about the banks like hsbc, standard charter, they gained in the session. seems like everything is priced in. i wonder if equity wise there's a better play out there. i think the storm around june of last year has abated. people realize it's not the end of the world. the bemoaners have piped down, and we know a sensible conclusion will be reached with the european union in due course.

i'm certain in two years time some principle will be established that allows free trade of a sort without tariffs and barriers. freedom of movement will be preserved for high skilled workers. everything will more on less remain the same. when i go to europe, i have to show my passport and change money. i don't think that will change. you mentioned you felt the euro's recent bounce was a dead cat bounce. let's talk about the future of europe and that side of the bargain. a lot of focus has been on the political developments and on countries in the north like france or holland who have had or are having elections in the short-term. economically, which countries do you focus on and where do you stand now about the future of europe? >> it's a good question on the euro, which i think is undervalued in the round and may go to 110 or 112 against the u.s. dollar ain the relatively short-term. that doesn't reflect the reality of europe. though there has been a pan-european recovery of sorts,

gdp growth this year will be under 2%, there's tattered edges to europe. greece remains a major problem. portugal still remains a large problem. italy doesn't have much traction. the italian also have an election as well. i don't know what will happen in france. i suspect le pen will not win. i hope she doesn't win. in germany, i think merkel will win once again. but the issue of italy is much more serious. i think there's a chance that italy will exit the euro, along with greece and portugal. >> we've been talking about this since 2010. there was one euro crisis after another, and seven years on it's still intact except for the uk sending that letter over to brussels. >> every time greece has to be bailed out there's more and more reluctance for that to happen.

the greeks have had nothing but grinding poverty. at some point they'll throw their hands in the air and say we're not paying these debts, not paying the target 2 balances, we are a tourism driven economy. as soon as we de-value the dr currency, we can grow. it's lunacy that -- they can stay in the european union, but it's lunacy to stick with this currency which is the main reason why i wanted britain to leave the european union. it's the one size fits all common currency that is at the root of the problems of europe and will remain so until they have a common fiscal policy. >> let's talk about the u.s. the big rally after the election, we're seeing a bit of a plateau. where do you see the valuations

of the u.s. market? i just did a 7,000 mile drive around the u.s. which was refeeling and fantastic. the middle of the crisis is not in crisis, but still lots of problems there in the united states. now, we know u.s. earnings are not really growing. they're overstated because of the inadequate depreciation. in reality u.s. earnings are buoyed by corporate buybacks. the case-shiller ratio is at an all-time high with no earnings growth. so i think the u.s. markets are overpriced, though there are bargains in such a fast var kva. half the stocks since 1997 have gone off the market, been taken over or privatized. so much money is in etfs now, if something goes wrong with them, you could have a panic selloff. >> aren't you discounting the recovery though in the u.s. economy? we will consumer confidence, the best since 2000. housing has been pretty strong

despite the interest rate increases. aren't you missing a part of the consumer picture? >> the u.s. is a machine. it's a center of worldwide innovation and will continue to be the robust economy in the world. but growth is only around 2%. productivity growth is nonexistent, 0.3 %, and capital formation is low. as long as companies are not investing in new equipment, they're not, i don't see the trump-like 4%, 4.5% growth projections coming true. the infrastructure spending will take a long time to get going. it's not that big, 1 trillion out of a 20 trillion economy. i'm not that optimistic. i think prices are very, very high. so, just buyer beware is my view on the u.s. market. >> jim, thank you very much for joining us. jim mellon. still to come, the top

corporate stories including news of another hit to wells fargo. we'll tell you what test the nation's largest lender failed when we come back. stay tuned you're watching "worldwide exchange."

welcome back to "worldwide exchange." let's get you up to speed on the market action. yesterday the dow ending an eight day losing streak. about 0.7% gains for the dow.

the nasdaq up by a half percent. today, pretty much flat in the premarket. the dow in the black, a bit of green for the other two markets. yesterday, what was the big reason why we rebounded? banks led that rebound. why? because yields did pick up. looking at the ten-year treasury, sitting at 2.41% this morning. we got up to about 2.42, 2.43 yesterday. it was fed speak high lyinging t highlighting the fact, rather than the trump agenda the correlation between the yield curve, the ten-year note and what the banks are doing is strong. that was the main factor for yesterday's rebound. talking of banks, wells fargo has failed a u.s. regulatory test. share price 0.3% for community

lending. getting a needs to improve rating. the findings related to the company's fake account standal it had previously had an outstanding score. the new ranking means regulators will have a greater say over day-to-day matters, such as branch openings. wells said they will pay 1$110 million fee to settle a class action lawsuit related to unauthorized accounts. a bit of a bounce this morning. of course has had quite a bit fall over the last couple of days alongside lots of banking stocks over the last three months. up a couple percent. the way i would frame this is to say they settled this one outstanding lawsuit as they get nearer to this in a couple weeks time. there are still issues and hurdles relating to this sales practice scandal. >> there's a shake up taking place in the asset management business. blackrock announcing plans to overall its actively managed equities business. they will cut jobs, drop fees

and rely more on computers to pick stocks. this is the latest sign it's become difficult for humans to beat machines when it comes to outperforming the market. blackrock will rebrand or adjust investment strategies on 11% of its 2$275 billion in active stok funds. planned fee cuts will cause a 0 $30 million hit to blackrock's revenue. the firm will take a $25 million charge this quarter to reflect severance and other compensation expen expenses. it goes back to the race to the bottom, race to zero when it comes to the debate over passive or active. if we look at the long-term historical record, seems like the passive investors and investments have really outperformed. >> indeed. blackrock a big name to be making such a big change. more stocks to watch. shares of vertex pharmaceuticals are soaring.

i shares up 16%. sanofi and regeneron scoring a win as the fda approved their new drug to treat eczema. the therapy could eventually bring in more than $3 billion in annual sales. the shares basically flat today in french trade for sanofi. the fda also approving roche's multiple sclerosis drug putting the drug back on track after a three-month delay by regulators over manufacturing issues. more stocks to watch. toshiba's nuclear unit westinghouse filing for chapter 11 bankruptcy after westinghouse faced billions of dollars in cost overruns and years-long delays at u.s. power projects. also a risk that toshiba may be de-listed from the tokyo stock exchange. shares of dave and buster's falling today. the restaurant and arcade shares

earnings fell short. they project weaker growth for 2017. this stock has been trading at record highs, so a lot of upside built into the stock. shares of sonic under pressure. the drive-in restaurant chain's revenues falling short of estimates. the company blaming a sluggish consumer environment and weather headwinds. if you look at it. consumer confidence back up to the highest since 2000. a few more stocks to watch. depomed reaching a deal with starboard for a new ceo. also warning first quarter sales would be lower than expected. stock off 3.7%. rh earns and revenues topping estimates. the parent company of restration hardware offering an upbeat full-year outlook. and shares of verin tsht up as .

one more piece of corporate news. spacex will try to make history this week when it attempts to reuse a rocket booster to delivery satellite into orbit. tomorrow's launch will be the biggest test of the company's planned to dead. the falcon 9 rocket was launched last april. spacex has worked to reufurbish and test the rocket at its testing ground in texas. space dpshgs x is trying to low to open up a new range of missions i inclu missions, including flights to mars. i'll be on that. >> first flight? >> maybe let them test it out. coming up, why the president is prom mi is promising his next attempt at a healthcare deal will be an easy victory. first here is today's national forecast from reynolds wolf. >> good morning.

looking at your forecast today, we have that big area where we have the severe weather potential for the central plains. could have damaging wind, heavy rain, large hail and tornadoes. for the east coast, relatively dry conditions. beautiful day in new york. partly cloudy skies. chicago, clouds are moving in rain will follow. denver, what a mix you'll have. could have snow mixed in with the rain showers. 53 degrees later on in the afternoon. dry conditions for much of the west coast, when you get to the pacific northwest, different stories. scattered showers. possibly some snow for portions of the sierra nevada and the cascades. keep it here. going to commercial. see you on the other side of the break. ♪

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welcome back to "worldwide exchange." corporate news hitting the tape. the eu is blocking the $28 billion tie up between deutsche borse and the new york stock exchange. the announcement was expected. share prices are both higher today by 3% and 1 % respectively. we knew this was highly, highly, highly likely to fall through after the lse failed to agree to divest its italian bond trading operation to reach this deal. let's look at some other political news. president trump says he expects congress to be able to reach a

healthcare deal despite the failure of the house republicans bill last week. the president addressed a bipartisan group of senators at a white house dinner last night. >> i know we'll make a deal on healthcare. that's such an easy one. i have no doubt that will happen quickly. i think it will happen because we've all been promising, democrat, republican, we've all been promising that to the american people. i think a lot of good things will happen there. >> president trump did not offer any specifics on how lawmakers would keep a deal or what's changed since last week. as you heard in that sound bite, it will be easy. >> exactly. nor did he give a time frame as well, which is the other key question. whether other issue also have to come first, which is, of course, the best case now. president trump's pick to lead the fda plans to recuse himself for a year in decisions involving more than 20 companies. the "wall street journal" reports financial disclosure

forms show scott gottlieb held positions or received money as an adviser or speaker in small start start ups and drug companies like glaxosmithkline. he was a deputy fda commissioner under president george w. bush. we will take a break. we'll have more on the top global market story. just a couple hours until the uk/eu divorce begins. er. so now the whole family can binge,... ...surf, shop, navigate, listen, game, stream and more. all without the hassle of worrying about overages... ...or running out of data. it's less than $40 per line per month with 4 lines. and remember, it's at&t's best, unlimited data deal ever. so get at&t, get unlimited and get everyone more for less.

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. good morning. markets now, stocks point to a mixed open following yesterday's big bounce back on wall street. today is the day british prime minister theresa may officially triggers brexit. and try, try, try again. samsung set to unveil its first smartphone since the exploding battery fiasco. it's wednesday, march 292017. you're watching "worldwide exchange" on cnbc. ♪ good morning. a warm welcome to "worldwide exchange." i'm wilfred frost. >> i'm susan li in for sara eisen. >> let's get straight to the global market picture. essentially flat on the premarket at this hour. slight bit of green for the nasdaq. slight bit of red for the nasdaq

and dow. yesterday a bounce back for the dow, the end of an eight day losing streak for the dow. financials leading the charge higher, in particular as yields were recovering off the back of various bits of fed speak. this morning, those gains not extended. we are flat. asian trade and european trade both not really catching the wall street gains of yesterday. that is in part because of gains earlier in the week and stronger performance month to date, as we near the end of this first quarter. so despite the gains on wall street yesterday, markets across the rest of the world broadly flat. there's the asian trade, european trade, also similarly just showing sleegt gains fight. germany up a half percent. >> as for the broader markets, oil is up for two out of the last three trading sessions.

sees minimal gains this morning. up around 0.6% across the board. natural gas as well. but we should point out as for the stock, the equity pricing, oil stocks are the worst performers year to date in the u.s. let's check in on the ten-year yields, how it's pricing in the possibility of two more rate hikes this year, according to stanley fischer, vice chair of the federal reserve. we're looking at just above 2.41 on the ten-year note. as for the dollar, a slight tick downwards. the pound back up to 1 tnt 2.24. the yen also strengthening overnight which had a play on the equity market. >> so, let's talk a bit more about that in terms of article 50 and brexit, and what it all means. the infamous article 50 of the

2009 treaty of the european union will finally be invoked by the uk prime minister theresa may today. a written letter from theresa may will be handed to donald tusk, the president of the european council by the british ambassador to the eu, that's at 7:20 a.m. eastern time, 6:30. the key provision is that in the absence of a unanimous agreement to extend negotiations by all 28 members, a country activating the clause will leave the block two years after notification. that means britain will be out of the eu by april 2019. so a two-year period to settle the divorce may seem like plenty of time, but the deal will require a super qualified majority of the remaining 27 eu companies in the eu parliament defined as at least 72% of the states representing 65% of the population. but article 50's relatively brief 262 words in total leave more in terms of separation as

opposed to fresh trade arrangements moving forward so a new comprehensive trade deal would likely have to be separate from the trade deal. financial obligations such as an exit bill for the uk versus a uk claim on shared eu assets. changes of freedom of access moves, and rights for expatriate citizens. third, trade terms, and fifth, time frame for implementation of the new agreement. who are the key people to catch? on the uk side, david davis overseeing brexit. the man focused on new trade deals is international trade minister, liam fox. that's overseen by prime minister theresa may. on the eu side. the key man is chief brexit negotiator, michel barnier. he reports to jean-claude

juncker. ratification of successful negotiations will focus more towards the european council which are the individual leaders of each 27 remaining eu nations. lots on the docket. joining us is peter spiegel from the financial times. will this be a bumpy couple of years, or have they been priced? >> i think this the financial markets they've been priced in. we've been watching sterling, and basically seeing no movement today. sterling is moving because the dollar has been moving on fed expectations and sort of trump trade. in terms of equities, currencies, most of it is priced in. however i think as this goes along, we are going to see unexpected shocks. we will see, you know, the bite

thus far in the uk economy has not really hit. we've seen decline in consumer spending in the last few months. we've seen decline in capex from some british companies. so there is concern now that the uk economy is slowing down. we've seen the bank of england be reticent to raising rates again, even though inflation has moved above 2%. because they're concerned about a slowdown and weakness of the pound. you mentioned a risk of shocks. i'm wondering what type of shocks. >> i think people have not woken up to the fact here at least about how much hard ball the europeans will play on this. if this happened in the eurozone crisis where the markets and sort of rational people look at the economic benefits that could come from a peaceful transition, peaceful separation, a peaceful negotiation of bailouts. but the problem is politics trump s economics when it comes to the eu. the eu, brussels and paris

cannot allow this to go easy for the brits. all indications now is that the brits want to talk about a trade deal first thing. europeans do not want to truck about trade deals. they want to talk about the exit bill, the 60 billion euros the uk owes. the rights of eu citizens in britain. from day one that could be difficult. >> what about the complete break from the eu which is what the majority of concervative servat to do, doesn't theresa may have to kowtow to their wishes? >> she does. all indications are she wants a deem. deal. they're waking up to the realization this will be difficult politically. she does not have support within her home party for this or within her own cabinet. they will push her politically. but also logistics, trying to negotiate a deal in two years. they need to get this done

basically in 18 months for the ratification process. we'll know by the end of this year if the deal is possible or not. that could be the real shock. end of 2017, if the brits say this is not going to happen, we have to prepare for a hard brexit. they walk away from the table and start worrying about wto and all of that. by the end of the year we could see a signal if this will happen. >> great stuff. thanks for joining us. back here in the u.s., there's data on the housing sector, more fed talk later on today. february pending home sales are due out at 10:00 a.m. eastern. chicago fed president charles evans, boston fed president, eric rosengren, and san francisco fed president john williams will be in front of the microphone later on today. in an interview yesterday, steve liesman asked the fed vice chairman stanley fischer if the average fomc member forecast for two additional rate hikes this year is just about right or if the market sloos ps should prep

something else. this is what fischer had to say. >> that seems about right. that's my forecast as well. but, yes, you have to be certain -- you know for sure that you don't get everything right, particularly about the future. you need to think about what happens if the economy is growing more slowly or the economy is growing faster. fisher says the fed's current outlook has not changed much from its march meeting. he also adds that the central bank is closely watching policies coming out of the trump administration. we have the 53% predictions for a rate hike in june. >> and i think, again that focus yesterday on all parts of fed speak allowing yields to pick up a bit again offsetting the political rhetoric over the last week or two. >> failure of past bills. on the corporate front, a couple of earnings reports. paycheck will post before the

bell, lou liululemon after the . >> the street is looking for lululemon to report $1.01 a share on revenue of 7$784 million. here's the three things to watch. first, same-store sales. the retailer posted a strong holiday season in both stores and digital channels. investors will want to see more details on total sales growth in q4, especially internationally as they have recently opened new flagship stores in china and london. the men's wear segment, management noted while they are excited about the growth in this area and their ability to expand what is traditionally thought of as a women's brand, they would like to see men's sales make up a quarter of sales by 2020. the third thing to watch, guidance. lou lieu lemon faces fierce competition from big names like nike, under armour, gap. it is nice to see a late resurgence. some analysts worry there's not

enough marketing compared to pierce and higher fixed costs could pressure earnings. shares are down about 1% in the past three months. >> time for our top trending stories. samsung will launch the galaxy s8 later today in new york. itis expected to have any voice assistant name bixby, an improved camera with auto focus and various shooting modes and optimized filters. the company has a lot riding on the s8 as they try to rebuild customer trust after the note 7 came under fire because of exploding batteries. this is all about maintaining trust and stability in its products. >> or trying to rebuild that trust and stability. i think reading lots of reports on this phone, they brought through a lot of innovation. rather than drip feeding them out over certain phone releases

like apple has been doing, so each year you hope for a big pickup, samsung brought a lot forward. >> after the pr debacle, don't they need to bring a lot to the table for people to say i will buy a samsung galaxy once again. why didn't they change the name? that's what i don't get? >> i think the brand still holds clout for them. it's a big bet in terms of trying to do that. we'll focus on how that does. the all-new "the deed chicago" airs tonight on cnbc. watch as capital and mentorship is lent to flippers trying to pull projects back into the black. here's a sneak peek. >> the only company that could do the design that i wanted manufacturers in guatemala. >> where? >> guatemala. >> what does it cost, the door? >> the door is a little over 11,000.

an then you add the shipping on to it. >> wow. >> yeah. >> i suspect it's [ bleep ] spectacular. >> when it gets here, it will be the wow statement for the house. >> tune in tonight, 10:00 p.m. eastern time right here on cnbc. looks great. still to come, the must reads. as we head to break, here's where european equities are trading. germany holding on to a nice gain, otherwise markets essentially flat across europe. not playing catch up following the wall street gains yesterday.

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imagine loving your numbers. there's only one invokana®. ask your doctor about it by name. welcome back to "worldwide exchange." time for must reads. stories catching our attention this morning. my pick is in the financial times, it's titled why business cannot make government great. the editorial board writing when governments do get involved in business results are usually bad, and no one is surprised at that. the reason is obvious. government and business when they are good, they are good at different tasks. they argue running a business is straightforward. you have one focus, which is to make money, create profits. there are multiple constraints when it comes to policy, formulation, and really arguments and agreements and deal making across the board. >> i think it's a little short-sighted to pocket things in two separate camps, there's

things that both sides can learn from each other. the question is whether you can get that to gel and just looking at this week's news, jared kushner's new business leader forum, that can come up with some fantastic ideas. the question is can they make them gel with capitol hill? does it even make things worse and use up political capital because it is insulting the politicians that they're not the right people for it. i think it's two simple to say the two can't learn from each other. >> they argue with the inexperience politically of the cabinet that donald trump has chosen, that's why you couldn't get the healthcare bill through, executive orders being stood up. infrastructure spending and tax cuts for the future. still to come, we'll get you set up for the trading day ahead. we have the chief market strategist from ameriprize

financial, david joy joining us. .

welcome back to "worldwide exchange." let's check in on futures. right now pricing in a slightly lower open. below fair value at this point. let's bring in david joy, chief market strategist from ameriprise financial. good morning. >> good morning. >> we had the eight-day losing streak come to an end for the dow and the three-day losing streak for the s&p. is that just a breather or where do we go from here. >> i'm gratified to see the market hold in there after the failure of healthcare reform to proceed. that suggests that the market wants to give the administration the benefit of the doubt on tax reform. at least take a wait and see attitude. secondly the underlying fundamentals of the economy have been strong. it looks as though the markets are anticipating a good market season for the first quarter. i think the uptrend in the

market is intact for now. >> in terms of the recovery yesterday, i suppose we also did see financials lead that rebound. we saw yields pick up. how important is what the yield curve is doing for what equity markets are doing at the moment? >> it's going to be extremely important. as you were talking about earlier, the vice chairman of the fed assumes another two rate hikes this year. we think that's right. we expect the yield curve to flatten out as a result of that. but not certainly getting anywhere near suggesting that the economy is slowing down. nowhere near inversion. what it suggests to us is that we're going to see pretty good growth rates once you get into the middle of the year. the first quarter is probably the weakest in terms of gdp. after that we firm up a bit. but we don't see a problem with inflation. i think the ten-year backs up to the 2.75 range.

we get a bit of flattening. that's not so bad for the economy. >> even though we did see yields slip over the course of the last week because of political headlines, did we get a reminder yesterday with different fed members speaking that it's the fed overall that will drive what yield curves are doing more than politics? >> well, i think that's true to a large extent. also yesterday very importantly we had a blowout consumer confidence number. that's telling us the biggest part of our economy is feeling good. with unemployment as low as it s wages starting to grow. debt levels for the consumer quite low historically. that tells us that the consumer will put a floor under this economy. >> is that the case with tax reform in doubt? we won't get corporate taxes down to 15%. >> that's the million dollar question.

how much of this rally is attributable to good economic data and how much is attributable to anticipation of policy change. i think the market action says maybe more was attributable to fundamentals. if we get good news on the policy front, the economy can be better than we expect. we're looking for 2.6% this year. we could boost that a bit if we got policy changes. we think most of the impact will be in 2018, not necessarily this year. >> the month to date returns for europe will be better almost certainly, notwithstanding the last couple days of trade for the month of march. is that something that can continue throughout the year? are you looking for opportunities abroad? >> yes. in fact most recently we grup

y upgrade our view of the eurozone. we are seeing more accommodative central bank. and i think some concerns about the election season have started to dissipate. we've had two good results for the more centrist candidates in the netherlands and now in germany. it looks as though, if you believe the polls, he will pen may not make it in the second round. so, yes, we like the eurozone. still underweighted the uk, and upgraded our view of japan. the u.s. just got expensive. >> thanks for joining us. david joy of ameriprise financial. we're approaching the top of the hour. the team is getting ready for "squawk box." andrew joins us with more. >> swroe sejoeseph is making tr.

>> we will talk tax reform. we will talk to congressman roger williams about that, we will also talk to rob portman. later, i hope you know this guy, sean conlin, host of "the deed chicago." i got a quick look at it. pretty cool. watch squawk and then "the deed" in brim, aprime and we'll talk the robots taking over blackrock. >> great stuff. look forward to that. sean conlon's show tonight on cnbc. >> exciting. >> about a minute and a half left. key things to watch today, will include brexit. article 50 being invoked by prime minister theresa may. she has already signed the letter that will deliver that action. already in the hands of sir tim

barron. he's taking it to donald tusk in about two hours time. >> i'll be watching restoring trust by samsung in the eyes of consumer and maintaining their brand. >> i think that's crucial. i think we're underplaying that a bit if they fight back more meaningfully. that has impacted apple's stock prices and sales. >> apple has hit five records this month already. >> let's run through the market boards to show you where we're sitting. futures, as you can see, called lower by about 3 points on the s&p. 23 points on the dow. higher for the nasdaq. comes offer the back of a 0.7% gain for the dow and s&p yesterday. 0.6% gain for the nasdaq. a day where financials led the bounce back. that was because yields did recover. there is the ten-year for you. 2.41% today. the pound, quick look at that,

basically flat on the day. article 50 is invoked. that's it for "worldwide exchange." "squawk box" is next."s awk box". you get used to food odors in your car. you think it... ...smells fine, but your passengers smell this bell dinging new febreze car with odorclear technology cleans away odors... ...for up to 30 days smells nice...

good morning. the bulls bounce back in a big way. the dow snapping an eight-day losing streak and getting back most of what they lost. full market rundown straight ahead. british prime minister theresa may signing article 50. that's a letter that officially triggers the two-year brexit process. and the rise of the machines. more to worry about here. though i think watching the picks of most humans this is probably a good idea. blackrock overhauls its actively managed equities business, cutting employees and slashing fees as stock picking goes

high-tech. it's wednesday, march 29, 2015, and "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box." >> good morning, everybody. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's look at the u.s. equity futures. yesterday a big day of gains for the markets. dow up by 150 points. this morning you are seeing giveback in the early hours. futures indicated down by 20 points. nasdaq is up by a half point. look at what happened overnight in asia. the nikkei ended flat, the hang seng was up by 0.2%. shanghai was down by a third of a percentage point. in europe,