good morning. france on the edge. breaking details on an apparent terror attack in the heart of paris just days before the national election. we're live on the ground for you straight ahead. trump heads to treasury. the president expected to take new executive action today targeting the finance industry. what you need to know straight ahead. and trouble in toy land. the within stoone stock getting in the premarket following an earnings myself. it's april 21, 2017, "worldwide exchange" begins now. ♪

good morning. welcome to another special edition of "worldwide exchange" on cnbc, i'm sara eisen along with kayla tausche in washington today. a lot to get to. a quick check on u.s. futures. little changed after big rally yesterday when the dow closed higher by almost 200 points. dow futures are up 16 points. our top story, wilfred frost with us from paris, a city on edge following a deadly shooting there ahead of the presidential election this weekend. what can you tell us about this droppi developing story? >> let's recap the tragic event yesterday. one police officer killed, two injured. the attacker was shot at the scene. we understand three members of his family have been taken into custody for questioning. isis claimed responsibility for the attack. they described the killer as the belgian. though in just the last couple of minutes, the minister of the

interior said he was, in fact, a french citizen. let's recap the general state of emergency that has existed here officially in france since november 2015, the last paris attacks when 130 people were killed. that state of emergency was extended to july a few months ago. earlier this week the inter interior minister said the terror risk was high and permanent and hired 50,000 extra police to patrol for the election. how have the presidential candidates reacted overnight? the leader of the far-right, marine le pen, said i am angry. the battle plan against terrorism begins by getting back our national borders. she and fillon, the center right candidate, have canceled

campaign events today. this is the last day of campaigning it cannot continue either way after midnight tonight. mr. macron, the front-runner has said i'm ready to protect you. mr. fillon, center-right candidate, said fighting terror is top priority for the next president. mr. melenchon, the leader of the far-left has not canceled his campaign events. he said we should not interrupt the democratic process. the polls won't incorporate the latest developments. the latest poll has macron in the lead at 24%. markets have improved over the course of the week and haven't reacted much over the last 12 hours. >> yoeuro at a 3 1/2 week high. i know you don't have the freshest polls, but how has this latest incident might impact the way people vote this weekend? >> fair question.

clearly the minister of the interior just said over the last five minutes or so that this was a french citizen. but over the last couple of years, the terror attacks in july last year and november 2015 in france, we know a large number of those terrorists had come in from belgium. if france had not had its open borders policy, then those attacks would have been harder. doesn't seem like that would have applied to this one, but people who have security issues in their mind will think about it more. one candidate loud and clear hat strongest policy on that, that's marine le pen this is said she said on the campaign trail eventually. my first measure as president will be to reinstate france's borders. i will protect you. i've been out on the streets this morning, spoke to about ten voters, the general sentiment from them is one of solidarity, not one of fear saying we make our decision how to vote over a long period of time, sadly a couple saying the phrase this is something we have become used

to. >> it's something i heard in westminster as well after that attack. wilfred, thank you. we'll have more from you throughout the hour. let's check on the reaction out of europe this morning. not a lot of panic here. we're seeing markets over in europe little changed. the dax is down 0.10%. france is underperforming today. it's down nearly a full percent. french bonds are rising. the euro has been stable in the wake of the uncertainty into this election. we'll keep an eye on it. the cac down almost a percent. the ftse 1 00 in the uk is flattish. we have that half percent decline in italy and in spain. overnight action in asia was positive following in the footsteps of wall street a 1% gain for the nikkei in japan helped in part by stronger dollar and a weaker japanese yen. hong kong's market flat. shanghai flat as well. >> the international markets taking their cue from what wall street did as well as some data

overnight. let's look at where the broader markets are right now. the ten-year yield currently at 2.24. up about two basis points from yesterday. holding roughly firm in the wake of recent weakness. oil yesterday saw its fourth straight down session. it was firmer in the earlier market, trading on opec comments about a potential production cut. that did not hold. that closed the day slightly lower. wti right now is down about 8 cents per barrel. brent is down about the same. nat gas is broadly flat. up about a half of a percent. look at where the dollar is. sarah mentioned the strength and relative firmness in the euro despite the uncertainty. we saw yen weakness overnight despite the fact that asia was broadly higher on the back of what wall street did. given that currency action, let's look at where gold is. look at gold right now. currently sitting at 1,282 per ounce. >> wti down 5.5% for the week.

stocks got a boost yesterday after we heard from treasury secretary steven mnuchin saying the administration is close to major tax reform. also hearing that the president is expected to sign financial-related executive orders today. eamon javers joins us here in washington for the early a.m. party with more. you got a better tone after those comments from some of the key economic members of the administration. what did they say? >> this white house continues to put out an optimistic tone on tax reform. they put an aggressive timeline on all this. they're starting to admit the timeline may be more aggressive than perhaps traktd cal. expecting today the president to sign an executive order and a couple presidential memoranda related to financial issues. kayla, you were way ahead of this yesterday. here's what we know the president will do one executive order on tax burden. it will direct much r enounuchi6 tax burdens, to see if taxes add

an undue burden ton payer payer. there's two presidential memoranda, the two memmemoranda one is on r on order liquidatio authority t directs mnuchin to review dodd-frank, and order whether orderly liquidation authority could result in costs to tax payers, excessive risk-taking. and the other on fsoc aims to provide an assessment of fsoc's designation process. they will look at a lot of this dodd frank stu dodd-frank stuff, maybe at some

point they'll start scaling back on this. >> a couple of those bullet points are something that we have seen congressman jeb wh hensarling, these are things he support. how much of this is them working together to make it look like they're coming together? >> wall street thinks dodd-frank is an overreach. the orderly liquidation thing is an interesting one. it goes to the heart of the idea of what happens in a financial crisis. can the government go in, seize a bank, wind it down? this was the capstone under the obama administration of what regulateders said wou erer erer end of the too big to fail, because the government could step in, manage it down and everything would proceed smoothly. now if they roll that back what will that be like? that's interesting. >> will they get comments? allow comment periods to stay open? larry somers has said repealing

ola could kill the economy when we go into another recession. ben bernanke has been vocal repealing it. they'll get some high-profile push back on this. >> that's why they said they are just going to review this. it's just study. the report is in such and such number of days from now. nothing happening immediately. you can get a sense they want the lay of the land here politically and in terms of the substance whether or not there's something they can do. >> it's a lot of wonky stuff. does it move the needle for the banks? they outperformed in yesterday's session. amex had good earnings? >> there seems to be a little buy the rumor sell the news. folks are buying these stocks with the promise of future deregulation, but there's been a history with this administration of not being pleased with the outcome or not having it being as material as they expected. >> and it sends a signal where the administration is going. it's symbolic, that's important. >> thank you. to the big earnings movers.

shares of mattel tumbling in the premarket after the toymaker reported earnings last night. landon dowdy has those details sdmrooch. >> tremattel says first quarter sales plunged 15% as retailers put off buying new barbies and other products because they have inventory left over from the holiday season. sales of barbie fell 13% in the quarter, american girl down 12%, fisher-price 9%. but the ceo says there is room for optimism as the company remains encouraged by strong performance at retail for our core brands as well as sustained momentum in high-growth markets like china. she also says mattel worked through the majority of this overhang and is looking forward to a strong launch of products tied to the release of disney's "cars 3" movie in the second quarter mach

quarter. mattel is maintaining the second quarter dividend. mattel is down 15% so far this year. back over to you. >> another ugly stock move for mattel. thank you. other earnings to tell you about. visa reporting better than expected rut results on the top and bottom line. the company giving an upbeat outlook and announcing a $5 billion buyback program. the stock up 2.5%. turning to today's agenda the housing sector is in focus. march existing home sales out at 10:00 a.m. eastern. they're expected to rebound after a sharp drop in february. we'll also hear from minneapolis fed president neel kashkari. he'll speak about the economy. that happens later on this morning. on the earnings front, general electric, honeywell and sun trust report before the opening bell. a busy week for earnings continues. we're just getting started on a special "worldwide exchange." up next, we take you back to paris following last night's deadly shootout in the heart of

the city. how this could impact the key presidential elections this weekend. we'll be right back from paris, washington and new jersey. the baby's room won't build itself. and her paw won't heal on its own. we're all working forward to something. synchrony financial can help your customers make it happen sooner. so she can plug into her dreams... and they'll have a new addition for their new addition. whatever you're working forward to, even if it's chasing squirrels, synchrony financial can help you get there.

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two days to go until france goes to the polls to elect its next president. we're joined now live in paris for an expert opinion with christian mallard with i-24 news, good morning. >> good morning. >> i'm sorry to ask this as the first question relating to the terror attacks, but does it feel like you've been here before? >> i was expecting terrorist attacks. the french public have been prepare foder this kind of terrorist attack for a long time. this dates back to hollande and the new prime minister, they keep telling us we've been preventing some terrorist attacks. they don't give us all the information of what they've been doing. but we know we're under threat for a long time because france is so much involved in the fight against islamic state in syria and iraq. and we do know that we pay the price for it. but the problem is right now the

problem is not coming from syria or iraq, the threat is from inside with all these young generation of muslims, what we call the third generation who have been born in france, educated in france by their family, they belong to our former colonies most of the time, algeria, tunisia and morocco and these people are in total rupture with our political system and our education and our sense of democracy. i'm sure that the man who has been arrested lived in the suburbs of paris, but we have so many terrorist networks, so many muslim fundamentalist networks. as an observer of my own country, we have been lax over the years. left-wing government, right-wing government responsible for the kind of situation we're facing today. >> do you think this affects the

presidential election? >> yes. yes, because definitely my analysis is the following. among the four favorite candidates, le pen, fillon, melenchon and macron two of them have definitely very tough on the struggle which will be led against terrorism and against muslim fundamentalists at work. it's definitely marine le pen, you know her, and francois spill r fill fillon. fillon is perceived to have the experience to battle this. >> how significant of the change will it be for those two candidates? >> when you look at the polls, macron is leading with 23% or

22%, madam le pen, 22 or 21, and fillon 21. it's tightening. my bet would be it's tightening in favor of fillon. and we will see who the two are getting to the final. >> in terms of the fact there's four candidates, all close together within 20%, and, of course, only one of them from the two traditional parties here in france. give us historical perspective about how shaken up french politics is at the moment? >> it's shaken up because we have two establishment parties, the republican party represented by mr. fillon, and the socialist party. the socialist party represented by mr. macron. without risk of being, let's say, making a mistake, the soeshlgti socialist party is dead. 7%. so far away from the other contenders. it's dead. the question is can mr. fillon

who has been involved in corruption affairs, can he save the republican party? just imagine fillon is out, socialist is out, and we have le pen, melenchon, the two extremes. it's the fear in the diplomatic and financial markets. >> right. >> but mr. macron is very peculiar. people start realizing that macron is mr. hollande number two. used to be his adviser, work for him. now as this guy tries to grab on the left, in the center, on the right. will he succeed? who knows. >> the final question, it's very important to our viewers, is france's position in the single currency in the euro what chance more broadly in the next three to five years would you say france leaves the euro? >> if madam le pen said she is president, she would organize a referendum asking should france stay inside the eu or not? my answer is no way that france

will get out of the eu. and out of the euro currency. so i don't think the market should be too much worried about that. >> thank you very much. >> thank you. >> christian mallard joining us in paris. sara, back to you. >> wilfred, thank you. more from you. we'll come back to you soon and often. up next, investors are slamming the brakes on tesla. we'll explain why the turnaround in the stock when "worldwide exchange" comes right back. it's taking the best technologies out there and adapting them to work for you. the ultrasound that can see inside patients, can also detect early signs of corrosion at our refineries. high-tech military cameras that see through walls, can inspect our pipelines to prevent leaks. remote-controlled aircraft, can help us identify potential problems and stop them in their tracks. at bp, safety is never being satisfied. and always working to be better.

welcome back to "worldwide exchange." some stocks to watch today. tesla recalling 53,000 of its model s and model x cars globally due to a parking brake issue. the carmaker says no accidents or injuries have been reported. adding that less than 5% of the vehicles being recalled may have been affected. that being said, the stock is taking a tiny leg down. about a tenth of a percent. stiwe are here in washingto for the imf and world bank meeting. yesterday i sat down with the managing director of the imf, christine lagarde. one of the hot topics here is one of the pillar's of the administration progrowth policy is deregulation. alan greenspan told me that dodd-frank is holding back the economy and efforts to repeal it and rein it in will be stimulative.

he thinks that's why the stock market has run up to haven't highs, though are different message from the managing director of the imf. >> the regulation phase that been quite efficient in order to reduce the risks which clearly we saw big in 2008. does that mean that the regulation sphere as we have it at the moment is perfect, no. it needs to be improved and it needs to be consolidated so that people understand what the rules of the game are. >> clearly this is a debate within financial circles, especially because of the executive recorders we're expecting on this front today from the president at the treasury when it comes to rolling back financial regulation. we'll talk more about this issue with another bank regulator, stan fischer, that interview coming up from the imf on "squawk alley." this is one of the topics of the day. >> carry cohn yesterday saying the biggest thing that will help

deregulation is changing personnel at the agencies, taking a shot at the fed. he says if a bank passes a stress test in europe it should be able to pass the stress test in the u.s. taking a shot at dan tarullo who rezi left recently. let's go back to wilfred in paris. >> hi, sara. i wanted to step away this time from those tragic developments in paris yesterday and just ask more broadly the question of how people are planning to vote in this election. yesterday i hit the streets of paris and asked people exactly that. how they plan to vote. >> i'm going to vote for melenchon. i think it's the best candidate in order to make france great again. >> macron is not from the left, neither from the right, just in

between. i think it's what we need in france. >> fillon. he has experience. looks like a president. >> do you think donald trump and marine le pen, there's similarity there's? >> probably. they go too far, too extreme to be credible. you have to have everybody together, not against each other. >> two big takeaways from yesterday doing that. nobody in paris told me they planned to vote for le pen. that's not much of surprise. we know she's stronger in rural areas. nationally she polled 28%, here in paris, 10%. and lots of support for the far-left, jean-luc melenchon, which was a surprise. all reports over the last month was a late surge for him. those two candidates, if they made it to the final round, would be the worst possible outcome for markets, though expectations of that have lessened. that's why markets have recovered a bit.

>> all right. wilfred, we'll see you in a moment. up next, why the french vote could be a game changer for the european union. you will hear from the vice president of the eu on this show straight ahead. as we head to break, another check at where the futures stand after a triple digit gain yesterday. yesterday. we'll be right back. this is a sy i'd recommend. this actually makes sense. now on the next page you'll see a breakdown of costs. what? it's just... we were going to ask about it but we weren't sure when. so thanks. yeah, that's great. being clear and upfront. multiplied by 14,000 financial advisors, it's a big deal. and it's how edward jones makes sense of investing.

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paris on high alert. terror strikes france days before the country's presidential election. we have details straight ahead. plus the future of france. how this weekend's election could be a make or break moment for the eu. the vice president of the european commission joins us ahead. and washington watch. the president expected to tackle financial reform today. full details coming up. it's friday, april 21, 2017. you're watching "worldwide exchange" on cnbc. good morning. happy friday. welcome back to "worldwide exchange" on cnbc. i'm sara eisen along with kayla tausche. we're in washington today. the imf bank holding some spring meetings. announcements from the treasury today. wilfred frost is in paris covering this weekend's french election. >> let's check on where the global markets are this morning.

look at futures. in the u.s. they've been slightly positive throughout the morning. the dow would open up by 12 points, s&p by two. nasdaq by ten that's following a broad based rally yesterday. financials, industrials, materials all up more than 1%. overseas, asia took a cue from what wall street did. they closed broadly higher despite the fact there was tough talk from president trump yesterday on particularly the ste steel industry. shanghai roughly flat. the nikkei up 1%. hong kong roughly flat as well. look at where europe is now. we are seeing lower broadly across the board france down by the most after that shooting yesterday despite the fact that eurozone pmi expanded to a point not seen in six years. so there are bullish signs about the european economy. but there are jitters about the election and about a terror investigation into that shooting in france yesterday. >> strong week for the nasdaq

yesterday in particular coming off another record high, heading to the best week of the year. tough week for oil. let's show you prices. down about more than 5% for the week. they're unchanged here in the premarket. as you can see, it's brought wti crude back around the $50 a barrel level. 50.72. brent around 53. nat gas pops a half percent. yields ticking higher yesterday. unchanged this morning. 2.24. don't have much in the way of economic data today. the big earnings mover will be general electric. as for the dollar, strong euro ahead of the french vote which some are framing as a referendum of france in the euro with the candidacy of marine le pen who wants to take france out. the euro holds steady at 1.0702. barely moving. the dollar unchanged against the yen. down a bit. some yen strength to keep an eye on. the british pound is unchanged

at 1.28. gold prices are slightly lower for the week as a whole. slightly lower this morning. 1,283 an ounce. to politics, the white house announcing that president trump will sign multiple financial related executive actions today. that's taking place at the treasury department. the president's first visit since taking office. the white house saying one of those items will direct the treasury to inspect a provision of dodd-frank. there are also reports that the president will sign another memorandum concerning the financial stability oversight council and tax regulatory burdens, that fsoc memoranda, if you're watching that, you should watch prudential, aig and metlife. they could put language in there that would make those companies not systemically important that would relieve a big regulatory burden for those companies. >> could be a boost for them. as eamon said, overall another

signal from this administration that they intend to be serious about rolling back financial you're watching "street signs." regulation. kayla, thank you. just hours to go until france heads to the polls for the first round of the presidential elections. tensions are high in france following yesterday's shootings in paris. wilfred joins us with the latest on both of these store ritz aie. >> as you say, just under two days until we go to the polls. the tension escalated significantly by yesterday's tragic events. the polls still point to macron with the lead followed close ly by le pen. let's talk to the head of global economics from societe generale based in paris, mikala markson. give us a snapshot of the state of the french economy and how it's changed over the last couple of years. if we look at the economy, it's

doing quite well. growth is running at about 1.5% of gdp. if you think of trend being over 1 %, we're growing above trend, and that means unemployment, albeit still high is coming down. what we're seeing in the context of the election is that there are a number of issues out there. clearly youth unemployment is a big concern today. >> and if we did have a president of france elected who wanted to take france out of the eurozone, would that lead you to lower your forecast significantly for france's growth going forward? >> absolutely yes, but it's important to appreciate that the president alone cannot take the country out of europe. this is an important point. there's the legislative elections coming up. without a majority in the parliament and for that matter in the senate t would be very challenging indeed for the president to do that. the french people on the other hand, i think this is also an important point, they remain pro euro and pro european. so i think even in the event

where you would see le pen become president or melenchon become president, i think frexit is highly unlikely. what abo >> what about your current view at societe generale about the strength of the eurozone more broadly. we had brexit last year and various challenges over the last five years to the strength of the euro. is it past the worst or does this election remind us of the challenges? >> there are clearly challenges for the eurozone. we're seeing a cyclical recovery but we need to get the struktd wall reforms done at the national level and at the european level to make the eu eurozone more robust. this is what the work at the commission is about, building the capital markets union, the digital union, energy union. all of these projects are key. at the national level reform of labor markets, pension systems. all of these are key to addressing the underlying economy. >> how busy have you been on this topic in particular?

are clients very concerned about this election? >> there's a lot of focus on the politics in europe. a lot of focus on brexit. continues to be question about that. there's an election coming up in the uk as well. in france, a lot focused on the elections. there's also a german election coming up and an italian election coming up. all of these are clear focal points for investors. >> thank you very much for being here. >> thank you. >> guys, back to you. when we come back, we continue the conversation. the outcome of the french election will have consequences far beyond its borders. one man who could play a big role in shaping the future of europe will be joining us next. we'll talk to valdis dombrovskis when we come back. live from washington today and paris.

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with these orders and with the rollbacks to dodd-frank and financial regulation in the u.s. it will put the u.s. on a different playing field with european banks? >> we are certainly closely following those developments, the dodd-frank act and also now the upcoming executive order on ordinary liquidation authority. so, basically our message is we think it's very important to continue with international cooperation in the field of regulatory -- financial -- in financial regulatory field. because, well, our financial systems are global. so also the -- >> but are you getting any signs that the trump administration is doing that in they seem to be very focused domestically. he has an america-first policy. >> we have certainly also some meetings with the u.s. administration. yesterday i had a meeting with secretary mnuchin to discuss those things. i would say certainly there is understanding also on u.s. side

on the need of continued financial regulatory cooperation. so the question is will those reviews mean some targeted changes to make as regulation more gross friendly while lowering standards or will it amount to substantial deregulation. as long as we discuss some targeted changes, assess the overall impact of the new regulation, it's something which we also have done already in europe. >> this administration believes if you roll back regulations that will make u.s. banks more competitive. the previous administration believed that stricter regulations made the u.s. banks safer and therefore more competitive. which is true? >> well, you always need to find the right balance. indeed one lesson from the crisis was that we need to make financial systems safer. that has been to a large extent

achieved. now what we did in europe, we took stock, post crisis financial legislation, looked at the cumulative effects, the unintended consequences, are there overlaps and gaps, can we do the same measures, the same measures in a more gross-friendly way? certainly we found a number of areas where this can actually be done. >> we need to talk about france. pressing issue as the french go to the polls for the first round voting in sunday. our colleague, wilfred frost is there. do you have a question? >> i do, indeed. good morning, mr. dombrovskis. whatever the result of the election here in france, it's clear to me that there is a significant ground of sentiment that is against and frustrated with the european union. that was the case in the uk last year and lots of question marks across various countries in the eu. is the eu too slow to

acknowledge that and to reform accordingly? >> well, i would say one thing is clear. that responding to the global problems, including terrorism, you actually need international cooperation. and acting together as eu with 2 or soon 27 member states can actually provide more effective responses to the challenges we are currently facing. bhafrnlgt >> what is the con ttingency pl if marine le pen does better than expected? >> there's an issue as an european commission we are not reporting on politics. elections are form and it's for french voters to decide. >> does the eu have a plan of action going forward if she picks up the majority of the

vote, continues, wins and follows through on her promises to negotiate an exit? >> to deal with global challenges you need international cooperation. so some kind of self evaluation is not an answer. as in every democracy, there's a system of checks and balances. thank you for joining us. glad to have you here today, valdis dombrovskis, the european commission vice president here in washington. >> we are approaching the top of the hour. that means the team is getting ready for "squawk box" back in new york. becky quick has a look at what i'm sure is a packed show. good morning. >> good morning. good to see both of you this morning. i see it's still ladies day here between the three of us. a lot coming up. we'll talk about taxes it looks like taxes, that package back on the table along with healthcare. both of those things are really adding to market sentiment. we'll talk about that with a variety of guests here to talk all about the economy, talk all about what's happening with markets. our guest host today is austen

goolsbee, he will be joining us from 7:00 to 9:00 a.m. the markets want to see what will happen with this. still skepticism out there, but donald trump making the point that this was never done, this healthcare deal. we'll talk with representative robin kelly with the oversight and foreign affairs committee. we'll talk about north korea and what's happening there. joining us to talk trumponomics is john taylor from the hoover fou institution. we'll see you in a bit. >> all right. sounds good. happy friday. >> happy friday. when we come back, we'll get you set up for the trading day ahead. bruce kasman joins us next. stay tuned, you're watching "worldwide exchange" on cnbc.

there is your wall street setup. futures are looking up this morning following yesterday's big rally. dow futures up 17. s&p up 2. nasdaq up 11 following a 1% gain for the nasdaq. let's discuss further with bruce kasman from jpmorgan joining us here on set in washington. nice to see you. >> good morning. >> we were speaking with the e ushg vice president aboeu vice president about the french election. it's not a zero spent problemibility that lproble e.p possibility that marine le pen might when, but not a lot of fear in the market, why? think what's happened over the last few weeks we have seen that le pen's polling has not shown increase.

so the probability of her winning is still quite low and we've also seen good news in europe on the macro side, which i think has been important and impressive in terms of what's driving the global economy. >> part of what drove markets here higher yesterday were comments on tax reform and the possibility of healthcare. we heard the president and sean spicer say at least five times during february and march that a tax plan was two weeks away, three weeks away. it's coming soon. can we hang our hat on mnuchin saying it's coming soon? >> we've been down playing the idea that u.s. policy will change here in a way that will have a big effect on the markets and the economy. we think that it's going to be slow. it will end up being diluted. what is really important about the macro space now is what's happening outside the u.s., the european recovery taking hold, china continuing to be strong, an overall picture which is improving and a big change from where we have been. >> so you see a lot to of this

u.s. equity rally predicated on that versus some of the washington policy? >> we have had a boost right after the election that rolled off. but i think the underlying story and the resilience of the equity market is a fading of the drags from the strong dollar, the weaker global economy, the profit lift that's coming on now in terms of the u.s. corporate sector, which i don't think will mean the u.s. will lead the world but it will be part of a broader story which will give us solid growth going through the rest of this year. >> to what extent are you seeing that global strength manifest itself in earnings this quarter? how much will be baked into next quarter? >> we already had a nice acceleration from the middle of last year on the earnings side. we'll continue to see good news. the overall picture in the u.s., notwithstanding the first quarter gdp number which we have a lard time making sense of being weak is good. the pricing environment is getting better from being weak. the overall picture on profits

is going to be this is a year globally of double digit gains, u.s. high single digits. >> you mentioned the weak growth in the first quarter, which is a weird anomaly. what does the bounce back look like from that to you? >> we have the economy growing 1% in the first quarter, 3% in the second quarter. we think the underlying pace is two. there's a lot of noise from q1 and q2 which i can't explain. consumer slowed into the beginning of the year. we need to see consumer spending pick up as we move towards mid year to deliver this outcome. >> you couple that weak gdp number with the march jobs report which was incredibly weak. do you tie those together? do you think they were both blips? >> i don't think the march jobs report was incredibly weak --. a headline added number. >> sure the headline number was soft. we expected a soft number. there's a lot of weather effects going on there. if you look at the business surveys, jobless claims, if you

look at some underlying messages smoothing, household survey, i think the labor market is solid. i don't see a momentum swing of meaning coming in the march report or in a lot of the march data releases which have been on the soft side. >> what does the fed do with this sort of mixed picture? weak q 1, expected bounce back in q2, but inflation expectations have been soft recently. >> i think the fed is generally data dependent for a change. i think if we're right and we start to see the economy lifting into the middle of the year, if we see inflation show underlying moves close to 2%, i think they'll be on track for tightening in june. i think we need to watch the next couple of months, but more likely than not we get a june move. two hikes this year? >> two hikes this year and a move standing to end reinvestment on the balance sheet. three moves two hikes. >> bruce kasman, thanks for

joining us. >> thank you. before we go, let's get back to wilfred in paris for a final thought on what you're watching. >> just under two days to go until france votes, but the election itself somewhat trumped by the tragic news of the terrorist attack killing a single police officer. that's what the newspaper leads with, terrorism, attack on the champs elysees, it leads with a picture of the arc de triumphe, which is atop the champs elys s elysees, and the arc de triumphe behind me now, and the champs elysees a few hundred meters behind. the right-wing newspaper leads with the same story, a picture again of a police officer on the champs elysees and says tourism hits paris again. the sub story saying le pen and melenchon are the worst case scenario in the run up to the

economy. and this one says the black scenario which will be bad for the economy. and the left-wing newspaper focuses on the election. a worried look of each of the five leading candidates, saying that they have it all to lose and more. that the tone of that newspaper. if we look at the polls quickly, remains incredibly close. macron still leads at 24%. le pen just behind. >> 20 seconds, when do we find out the results? what does the weekend look like? >> results come out late on sunday. we do get exit polls. the official constitution result comes through the next week, but on sunday night around 7:00, 8:00 p.m. local time we'll have the results. all through today and on monday, cnbc will be present covering the story, michelle caruso-cabrera will join me on the ground shortly. >> the "a" team. thank you. thank you, wilfred.

have a good weekend. kayla, thanks for being me in washington. that does it for us on "worldwide exchange." "squawk box" is coming up next. this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov

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good morning. france on high alert. a terrorist shooting is overshadowing the final days before the big election on sunday. in the u.s., president trump taking action on financial regulation and sparking a new push for healthcare reform. we have the latest from washington. and trouble in toy land. mattel shares getting slammed after the company posted dismal sales for the first quarter. it's friday april 21, 2017. "squawk box" begins right now. live from new york where business never sleeps, this is

"squawk box." good morning. welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. yesterday the markets ended higher, setting themselves up for the best week that they've had in three weeks. nasdaq actually poised for the best week since the first week of the year. this morning there are green arrows once again. dow futures indicated up by 17 points. s&p up by 2 points, nasdaq up by close to 12. this comes as talk about tax reform is surfacing again after comments from treasury secretary steven mnuchin. in asia, the nikkei actually ended up just over 1 %. markets in china were flat. and in europe, in the early hours there, after all the events that unfolded overnight, just ahead of those french elections over the weekend, you can see the cac is down, only by a third of a