good morning we're halfway there. today kicks off q3 with nasdaq coming off its worst week of the year and steve bannon is reportedly floating a tax hike on the wealthy causing a stir in the white house. those details coming up. and plus the former ceo of barclays and three other ex-bankers are in court facing fraud charges. we're live at the court with the latest it's monday, july 3, 2013 and "worldwide exchange" begins right now.

amazing bon jovi to kick off this monday morning. welcome. each dominic chu >> and i'm seema mody. first day of the second half of the year >> and it is a holiday shortened trading day on wall street with the new york stock exchange droe closing at 1:00 p.m. so let's get a check on the global markets we'll see green to start the day if things hold we have s&p up by about 8, dow jones up by about 65 and nasdaq up by about 25 points. if those hold, we will have a green open to start. we have seen moves higher and the trend takes us to around 2.32%. and for the ten year u.s. government note, some signs perhaps of optimism or perhaps of more inflation ahead.

we don't know. >> the rise in the yield certainly something we're seeing around the world sentiment beat expect aboatione. and in china, pmi also topping expectations in the month of june touching its heist level ighest three months and you have the china bond program with hong kong taking off. you can see a positive session in asia, japan, the nikkei there seeing a gain ever around .11%. hang seng tlat on tflat but alse green. and let's take a look at europe. early trade there, data in focus. manufacturing pmi rising to its highest level since 2011, fwauling short of consensus.

we're weighing taiting for the meeting to kick off where geopolitics certainly will be in focus. dax around.07% and so perhaps starting second half on a strong note. >> strong gains for sure for those european markets as for the macro picture, you can see strength in oil prices right now. wti crude 46.15. last trade there up by about a quarter of 1%. ice brent crude almost flat. as for the dollar and occurrence city side occurrence are city c, 1.13 for a euro, and the pound 1.2965.occurrencecity currency f things, 1.13 for a euro, and the pound 1.2965 gold prices, perhaps a sign of we'll call it flat for now, now

about down half percent, 1235.60 in early trade so again watching the macro pictures unfold. oil prices a focus for a lot these days of course today is the first day of the second half of the year a good time to check where the major averages stand the dow is up 8% for the year. that year to date period, you can see there, the s&p 500 also up around that same amount as well the nasdaq higher by 14% really pacing the advances there for technology the sector winners again tech the best performer, rising more than 16 of% year to date and health care up 15% and consumer deposit kregsaiscrp 10%.of% year to date and health care up 15% and consumer discretionary, up 10%.f% year to date. and health care up 15% and consumer discretionary, up 10%.% year to date and health care up 15% and consumer discretionary, up 10%. telecom is off 13% year to date, and real estate up by a little >> and we've seen some volatility in the secretarying tore, but for the month in june

financials also saw a pretty sizable gain, a sign that perhaps is it the yield that banks are responding to or perhaps the anticipation of that -- >> or the stress tests of course there. >> right msr had a big impact but let's talk politics. steve bannon is reportedly pushing on a tax hike on the wealthiest americans to pay for steep middle and working class tax cuts a axios is reporting that bannon wants the tax bracket to have a four in front of it. currently 39 p.6% for americans who earn more than $418,000 annually >> president trump tweeting about the state of the markets and the economy as well. the tweet reads, quote, stock market at all-time high, unemployment at lowest level in years, wages will start going up, and our base has never been stronger so again, president trump are

kind of weighing in, he's still tying himself to the idea that the record stock market levels are at least a swrinvindicationf what he's doing as president some of the stocks to watch today so far, you have on the other side of the atlantic, selling dairy business to stone anyfield for $875 million. the sale is part of an agreement reached with the doj in connection with danone's recent acquisition. and also vivendi acquiring a majority stake in havas for about $3 billion the company plans to follow up with a tender offer for the shares it doesn't already get. tesla model 3 will begin production this week after getting a regulatory okay. the company's elon musk expects production of 20,000 per month by december. and we have fair fax media

scrapping talks with private equity suitors shares of fairfax down as much as 17% today federal investigators believer caterpillar failed to submit several export filings with the government wall street journal reports the findings are still preliminary, but could open a new avenue for u.s. tax investigators and an update on the toshiba chip sale. the plan reportedly included an option for the company sk hynix to take a minority state, this is a contra decision to the public statements. the stock down about 3%. dropbox is reportedly looking to hire underwriters for a possible ipo that could come later on this year if that does happen, it would be the biggest u.s. tech company to go public since snap back in

march. dropbox was valued at nearly $10 billion in one of it's fundraising rounds back in 2014. reuters reports the company will start interviewing investment banks in the coming weeks. this could be a big deal, but again, a very competitive space for dropbox. box is already public and you have a lot of cloud offerings from alphabet, microsoft as well amazon, everybody else out there. so competitive space a >> and good sign that the momentum will continue all right. let's talk about spacex making news over the weekend. last night they called off a satellite launch from the nasa kennedy space energy jucenter j seconds before of liftoff due to a technical issue. the next launch opportunity is tonight. and the company's reusing dragon supply ship will travel back from the international space stays. the space craft has been gone for a month and will return with more than 4,000 pounds of cargo

and research material for nasa turning to the wall street it agenda for the week, there is plenty of economic data even with the fourth of july holiday. look for the ism manufacturing index, construction spending and monthly auto sales as well the markets will close remember 1:00 p.m. eastern time on wednesday, we'll get factory orders and latest minutes from the last month's fed meeting and the june adp report and the ism services index and it's all of course topped off with that big report, the friday june jobs number, that will be a big deal a lot of people looking to see if there is any validation coming out from the economic data about whether or not the markets should remain at these record high levels still to come here, a live report from the court where the former ceo of barclays and three of its ex-executives face allegations that they conspired to commit fraud. stay tuned

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barclays itself. and this is gaining notoriety worldwide because this is the first time that a global bank and its leadership team has faced criminal charges with regards to actions taken during the financial crisis so what is at stake here there is three sets of allegations here and all five defendants, being of course the four former executives and barclays itself, are facing the first charge which is conspiracy to commit fraud by false representation in the june 2008 capital raise. and barclays plus former ceo john varley and robert jenkins facing two additional charges, one in relation to the capital raise and also one in relation to providing unlawful financial assistance in 2008, they raised money in june and october and between the two, qataris contributed around

6.1 billion pounds and they also arranged two side deals in which they provided funding to the qataris and the question at the heart of the matter is did barclays provide the funds simply so qataris could reinvest back into barclays >> a quick followup here when we talk about these deals, are there any -- i've seen a lot of the reports happening are there any real details out or are we waiting for the charges to really be unsealed and put out in public before we know exactly what happened with regard to what the wrongdoing was? well, we just lost gemma but again, those barclays executives in london facing serious fraud charges. we'll have details coming up as the day progresses and another story we're washing asia, hong kong and china launching the highly anticipated bond trading program, the setup gives foreign investors access to china's $9

trillion bond market through hong kong trading houses it's actually the world's third largest bond market and comes after giving china the green light in general, so a good couple weeks for china and the market as a whole as they try to open up that you were manywhere. >> and the top two >> u.s. and japan. >> and anyway, a group of four arab states that have cut ties with qatar are giving the country until tomorrow to dom app comply with list of demands. the group accuses qatar of supporting terrorism qatar says their demandsinclusas that the demands are too severe. and they extended the deadline as part of the efforts to

mediate the issue. and moving on, the uk is pulling out of an agreement allowing fishermen from five other countries to operate in its waters the government announcing yesterday it will trigger the two year process to leave the london fisheries convention which lets france, belgium, germany, ireland and the netherlands to fish off the uk coastline. britain signed the agreement before it joined the eu and would be bound by its terms after the brexit unless it starts the process to leave the treaty now and japanese prime minister shinzo abe suffered a rare election defeat this past weekend clouding prospects for his political agenda abe's liberal democraticing party lost its position as the biggest group in tokyo's met metropolitan assembly. the tokyo's residence first party and it's coalition partner won 73 and the ldp won 23. the vote doesn't alter the ldp's

power nationally, but it does raise concerns for abe ahead of the elections for the lower house of par arealliment that must be held by the end of next year they are looking at it as a bellwether for the influence that prime minister abe's administration has and of course a referendum on the policies overall >> a stunning defeat and it's interesting to see the market response. at first we saw the yen strengthen on this concern that aib's ru abe's ruling party saw the loss, but then the yen came back so definitely something to keep an eye on especially abe has really commanded his position for the last three or so years. >> and a little bit of strength right now for the dollar versus the yen. the china prz xi jinping is pointing to negative factors that have cropped up in the u.s./china relationship since he first met president trump three months ago china state media is reporting the comments from a call xi had

with trump earlier today, beijing has expressed displeasure with a u.s. armed sale to taiwan u.s. sanctions against chinese bank over its dealing with north korea. and the presence of a u.s. destroyer near a disputed island in the south china sea president trump also spoke by phone with the japanese prime minister abe who pledged more cooperation over north korea perhaps a sign that the honeymoon might be coming to an end. >> just so much back and forth positive headlines one day, negative the other >> hard to parse through well, still to come onwe'rer the trading week ahead and the g-20 summit. but first, as we head to break, here is the national weather report from bill karins. >> good morning. as we go through the end of our holiday weekend, we are looking at thunderstorm rolling through arkansas and kansas. slight risk of severe storms

wichita to oklahoma city again large hail, maybe damaging wind we could also see scattered strong storm through the ohio valley, pennsylvania and even areas near philadelphia and northern new jersey. so today's forecast, also going to watch thunderstorms in the southeast and areas of arkansas and through tennessee. as we look toward the fourth of july forecast, isolated strong storms in the middle of the country. pretty warm everywhere no one will be washed out. these are hit and miss storms. maybe north carolina beaches not the best and wednesday when everyone is returning home, still the same locations with the best chance of storms.

with the market right now, we see futures in the green. dow up by about 63, s&p up by about 8 points and nasdaq futures up by about 18 all about a third of a% percent to the up side as for the currency side of things, we did mention some of the action in the euro dollar strength versus the euro, the euro following it will cost you 1.2966 to buy a pound in the market right now. and of course oil picture, a big focus here, wti crude $46 and change we're just about flat right now. ice brent crude marginally lower by 23 basis points

and rbob gas about half a cent to the down side the g-20 summit set to take place on thursday but the focus over the weekend was on the president's twitter account. tracie potts joining us with more >> reporter: good morning. with the preps for the g-20, health care talks continuing even during the congressional break, a phone call overnight with dhooi's president, a lot of the talk here in washington is about the president having time amid all that to tweet this. a literal assault on the media an he had ilted individual use showing president trump taking down a man bearing the cnn logo sent to millions from both his personal and official twitter accounts >> i look at and i shake my head >> people are now begging the president not to do this and he should stop doing >> i think no one would perceive that as a threat >> reporter: cnn responds it's a sad day when the president of the united states encourages

violence against reporters >> the fake media is trying silence us but we will not let them >> reporter: on sunday, impeachment rallies from los angeles to new york. >> he is a real true threat to our american democracy >> reporter: the threat critics say is distramcting from real issues. >> our focus has to the on the it kitchen table family >> reporter: and mitch hk con he will increasing con he will is calling lawmakers during the break. >> sometimes when you lump too many things into one piece of legislation, you doom its likelihood of success. >> reporter: president trump is also calling lawmakers >> he can do more than one thing at a time. >> reporter: trying to give obamacare one final blow so on wednesday, the president

heads to the g-20 summit in germany where he is expected to have his first face-to-face meeting with vladimir putin. >> and we will see what happens there. i was curious, do we know the reason behind trump calling president xi we know 1900 day plan is still in the works perhaps coming up around july 12th i know north korea has been the key agenda item. >> reporter: yeah, we know they talk about north korea and other regional issues. what prompted the call or whether it was sort of a regular thing on their agenda or whether they were trying to show that there is business as usual going on in the white house, we don't know >> okay. clearly something that we will keep an eye on especially his twitter account at the same time tracie potts, thank you so much on now moving on to sports, the tennis world is all abuzz as the first round of wimbledon gets under way at 7:00 a.m. eastern the top seed on the men's side, defending champ andy murray. on the woman's side, angelique

kerber security at the all-england lawn and tennis club is being stepped up over the next fortnight in light of the recent string of terrorist attacks in the uk. new measures include extensive bag checks, concrete barriers and bomb-sniffing dogs >> and you're a tennis fan andy murray will have to advance pretty far he has nadal, djokovic all hot on his heels for the number one ranking. so he has a lot of heavy lifting. >> one of the most beautiful tournaments. i'm excited to watch and also in entertainment news, despicable me 3 is topping the box office the latest in the franchise is opening to a $75.4 million start from just over 4500 locations. that is the wide he st domestic release ever

transformers last night had a $17 million take and "wonder woman" continuing to dominate coming in third.film on its way to $15.6 million domestically during its fifth weekend overall. and this summer series will be a pretty interesting one to see if the super hero films really have that much more staying power >> interesting to see how well this specific movie has done coming up, o. thwe'll set yp for the shortened trading week on wall street and plus today's top trending stories we'll reveal who just won the title of highest paid player in the nba. thank you is what we say. but we mean so much more. we mean how can we help? we mean what can we do? we mean it's our turn. to do our part.

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welcome to the second half nasdaq off to its best start since 2009 we'll set you up for a new month of trading, that is straight ahead. new this morning, tesla says its first model 3 will roll off the production line this week. details from elon musk coming up plus stop the music. why kanye west is reportedly quitting tidal you're watching "worldwide exchange" on cnbc.

good morning i'm dominic chu. >> and i'm seema mody. takes shortened trading week the new york stock exchange will close early today at 1:00 ahead of tomorrow's july 4th holiday as for futures, dow jones industrial up 78, nasdaq up 24 and s&p zup about 9 transports gained 4% in the month ever june, its best month since november of last year. and financials also outperforming for the month of june let's take a look at how the 10 year note has been fairing this global rise in yields that we have been seeing, definitely a story that has captivated wall street and one of the reasons the bank had been outperforming. right now yielding 2.31% >> and in asia, we did see a little bit of strength overall for some of these markets. you can see the nikkei up by

about one tenth of 1%. and shanghai composite and hang seng about the same. kospi about 0.1% across the board. as we turn for a guide, the dax in germany up by about three quarters of 1% and green across the board for the major bourses. >> and let's point your attention to oil because that could perhaps be playing a role behind the move in european equities we were higher across the board at this point, wte crude at $46.13 the international gauge for oil, ice brent crude at $48.79. but the bigger picture is the it's down 9% for the quarter so big moves have sent the energy stock market also down. energy sector i should say down

about 6% year to date. taking a look at the dollar, that is also a big surprising factor the dollar now down about 5.6% against the basket of occurrence i ises for t currencies for the year. euro at 1.13 against the u.s. dollar.ence currencies for the year. euro at 1.13 against the u.s. dollar 1.12 against the dollar. and with a look at gold, it was down about 7 and in global news, china is going to allow foreign investors direct being a access to its massive bond market jeff cutl leler geoff cutmore joining us will this operate similarly? >> absolutely. big advantage here of course is china is already seeing the hong kong stock connect market allow it gain access to the msci

indices and they would be hoping that by doing this with the debt market, they can also get chinese bonds listed on some of those very important debt indices. so very early steps here, but it is a $9 trillion market. it's the third largest in the world after the united states and japan. and it also allows china to diverity verse guy its sources of capital. they have been dependent on bank lending. and they would like to open up the ent inter-bank lending market to chinese investors. so small steps it's not likely that we will see very significant uptick early on because i think a lot of institutional investors need to get their head around just exactly how they measure the risk for some of this chinese paper. but of course it does give them

a tremendous advantage now because they will not need to set up on on shore accounts in china to be able to trade the paper. back to you. >> i was going to ask you, what do you think ghachbd will be like for chinese bonds we know beijing are has been taking steps on the regulatory front to ease controls, relax the capital controls that had been in place for a while. but is it enough to i guess provide a catalyst >> i think there will be demand. clearly there is a stretch for yield going on around the world. the curve is flat. between one and ten year, you can get around 3% to 3 abo.5% y. that looks attractive in comparison, but it will take institutions a little bit of time to figure out exactly how 12450e ra they should rate some of this paper.

you have the corporate, the local government and the central government and local government paper trades very much around the same price as we see central government paper because there is implooied support from central government so i think it is an attractive market i think people will gradually be willing to take that chance in this market, but i think it will be steady steps early on we may only see maybe $100 billion to $200 billion in the first 12 to 18 months, but that is just an early prediction by some of the analysts we will have to wait and watch because right now we know nobody is getting great returns on capital where it is located. so you either take your chance with the equity markets or programs you take a look at some of the chinese debt. >> geoff cutmore, thank you so much sticking with the markets, the cnbc iq 100 is an index that tracks the top 100 big cap companies that generate most of their sales from their own

intellectual properties. so think of firms such as microsoft, jpmorgan and boeing, they are all part of that index. this index gained 1.8% in the second quarter, slightly underperforming. but it is up about 9.1% year to date versus 8% gain for the zch, s&p, so outperforming there. joining us now is david martin, founder of the firm that algorit algorithm powers the index this is a huge interesting talking point about whether or not companies can generate excess shareholder returns because of their own intellectual property. take us through the mechanics of the rebalance. >> this is an amazing rebalance moment for us because as you know, as we have continued to watch this year unfold, what we're looking at is companies that are going through a significant amount of global shifts in terms of how they are positioning in the marketplace and what we're seeing overall is

that the companies that are most diversifi diversified, companies that have broad range of technologies that address a number of markets are the ones that seem to be really performing strongly and the ones that have a more narrow definition, very specific products, are going through their challenges because single market companies have a bit more challenge. but in the reset, whatwe're seeing is the companies that actually are really doing a very strong job be not only have an enormous amount eveof innovatio, but also as is the case with one of the top performers dxc, we see enormous amount of strategic acquisitions >> oracle jumping to the top of the 100 of this index. what is behind that move >> i think as we discussed earlier in the year, one of the big shifts that is taking place is a move from the hardware centric approach to data and

computing to now much more of an implied services based model and oracle has done a great job ever positioning itself with both the hardware side of the equation, but really is getting into that applied environment where they are helping makes a we said about microsoft and others earlier in the year, they are making the cloud and they are making cyber a real reality for their client base. so they are addressing specific client needs and this is a place where oracle anticipated a market going and they have the ip to support their market position and defend it and grow it so we're enthusiastic to see what is happening across the implied services computational services environment and we see that market continuing to on grow and expand. >> david, just a few moments here left.on gro and expand >> david, just a few moments here left.n grow and expand >> david, just a few moments here left. grow and expand >> david, just a few moments here left. you can tell us the trends about the close e companies slipping

rankings >> we have a couple companies starting to have the market wash out the advantage of their innovation some of the financial services sectors are starting to have the market actually catch up and potentially overwhelm the advantage that the innovation was giving them early on remember that if you are on the index, you're actually chafing so achieving great performance, but that advantage needs to be mained.ing achieving great performance, but that advantage needs to be mained but there are outliers mastercard is doing a great job and it is rising on the index. >> david peculiar continmartin, joining us on the rebalancing. turning to wall street'se a agenda for the week, plenty of economic data. today look for ism manufacturing index, construction spending and monthly auto sales markets will close at 1:00 on on wednesday, we get factory

orders and minutes from last month's fed meeting. on thursday, it's the june adp report and ism services index. and friday the john june jobs report and four former barclays and the company facing charges connected to the 2008john june report and four former barclays and the company facing charges connected to the 2008ohn june js report and four former barclays and the company facing charges connected to the 2008hn june jo report and four former barclays and the company facing charges connected to the 2008n june jobs report and four former barclays and the company facing charges connected to the 2008 june jobst and four former barclays and the company facing charges connected to the 2008 emergency fundraisinging from qatar. this is the first time criminal charges have been brought against a bank and its leadership team in connection to action taken during and in the wake of the financial crisis in other headlines, data sharing business dropbox reportedly looking to fire ip chlt on underwriters fp reuters says the offering could come late they are year dropbox was valued at about $10 million after a private fund raising round in 2014. this could be the biggest u.s. tech company to go public since snap and time for our top trending stories kanye west reportedly

splittinging with tidal music. tmz says kanye, quote, complained the company owes him money, more than 3 million west also suggesting that he never received his promised bonus after his album resulted in 1.5 million new subscribers for the tidal streaming service. so an interesting feud between jay-z, beyonce, kanye west and steph curry is officially the biggest paid player in the nba. his new contract will pay him a whopping $201 million over the course of five year. this makes occur ary the first nba star to on sign a so-called super max contract wow. >> he basically made that amount of money in four years and now he will be making $40 million a year going forward i mean, he deserves it, no doubt, he is probably one of the

best -- well, he is twon of the best players in all of basketball but most prolific in the last k50u78 yea couple years >> winning always helps. kay yol la crayola is unveip names. dreams come blue, blue-tiful, blue moon bliss, reach for the stars and star spangled blue if you are a fan, you can vote for your favorite color until august 31st. the final name will be announced in september i kind of like star spangled blue sfw blue coming up, today's must reads including president trump's dealing with china but first, let's take a look at european markets kicking things off on a strong note.

g . time for our morning must reads, stories catching our attention. my pick is in the "wall street journal"titled a main street independence day he writes when you begin to worry that america's traditions are lost to political correctness and the genius of the founders forgotten, stand on

main street in lee land, michigan and watch a fourth of july parade roll past. hegoes on to paint a picture o red white and blue, by scouts and firefighters walking proudly and of course floats honoring local bhiss. he ends the piece by saying 45g minutes later it was over. everyone wore a smile heading to my car, i caught sight of banner carried periodically, this one read remember the past, imagine the future good advice. and it speaks to the idea of understanding your history, knowing where you are going, being optimistic and of course the idea that this is a great holiday. happy birthday america >> doesn't get better than that. and my pick is in the "wall street journal" titled trump's signals to china the editorial board writing the trump administration is losing patience with china's failure to stop north korea's nuclear program and two signals last

week weaiding the north and arm sale to taiwan beijing may be miscalculating that this u.s. government will behave like every other. now, afterxi jinping came to florida, there was an indication that the relationship has improved, but now there is concern that there may be some more riffles between the two companies and this of course before the 100 day plan expected to be announced next week. and we wonder what that will be especially in lieu of recent actions. >> you have both leaders in a position where they are trying to jockey for supremacy if you will in this ultimate of negotiations between two countries. two arguably of the biggest super powers of course america the biggest, chooir formidable in that status as well. all right. coming up now, wall street

getting ready to kick off the second half today. will fireworks fly strategy session next. on i love you, couch.

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and plug in febreze to keep your whole room fresh for up... ...to 45 days. breathe happy with new febreze. . welcome back we have futures right now indicating a higher open by about 70 points for the dow. let's take a look at the stocks to watch here. first of all, tesla says its model 3 sedan has passed all regulatory requirements for production and should begin rolling off the line on friday in a tweet elon musk says 100 vehicles should be delivered next month and then deliveries will increase to 20,000 vehicles per month come december. so an interesting move for the biggest electric carmaker. airbus unveiling a learn corporate structure and confirming reorganization of its commercial sales this follows a recent merger between its parent company and plane making arm and bae systems signing a deal

with the uk ministry of defense. british government will buy three new high tech warships, bae one of the central defense contractors in that scheme with those ships. other stocks to watch this morning, france's total announcing a deal to invest $1 billion in a gas field the first major investment by a western company in iran in years. the stock up about 1.7%. danone selling stonyfield and caterpillar reportedly facing more questions in a probe. the "wall street journal" says federal investigators believer the company failed to submit numerous required export filings with the government in recent years. there are questions about whether this was part of an effort of by caterpillar to avoid paying taxes and like i pointed out

before, let's take a look at the u.s. equity futures picture because we will point towards a positive open here the s&p up by about seventh points 64 point gain for the dow jones futures. 75 point open if the gains hold. and nasdaq up about 16 points. so about a third of 1% overall for the u.s. picture on this remember holiday shortened trading day. 1:00 p.m. eastern is when regular cash markets will close. joining us now is the international cia at jpmorgan asset management nick, this is a very interesting market and has been for a while because of some of the lack of volatility in the u.s. equity side of things, but there has been quite a bit of movement as of late on the treasury and credit side of things. take us through your view.

abo >> reaction has changed and central banks leading that are in europe and what they are really saying is that this have a ordinary easing policy is over and they will have to tighten policy and when you look at that, it reflects economic reality. and when you look at europe, growth is on fire. inflation is a little low, so ultimately central banks need to raise those policy rates and that will be bad when you look certainly at you're pea about n that will be bad when you look certainly at you're pea aboutur possibly treasuries with it. >> and we have seen a tick higher short term in global yields but there is no inflation to speak of is there a reason why we should be optimistic about that growth inflation picture given the fac that we see lackluster growth this other parts of the world? >> it is but the reality is central banks are fine tuning their reaction function now.ithd >> it is but the reality is central banks are fine tuning

their reaction function now.nthd >> it is but the reality is central banks are fine tuning their reaction function now.hisd >> it is but the reality is central banks are fine tuning their reaction function now.is ? >> it is but the reality is central banks are fine tuning their reaction function now.s od >> it is but the reality is central banks are fine tuning their reaction function now.othd >> it is but the reality is central banks are fine tuning their reaction function now. they are saying deflation is over and we need to focus on the growth picture and when you look at the global growth picture, think of most major economic blocks around the world. they are growing at above trend rates of growth. so when i look at that bond deals around the world is simply too low. >> so how would you position yourself as we kick off the second half of the year? tech be knowledge has been a biggout performer. nasdaq up about 14% year to date but financials have done quite well as well do those sectors continue to t outperform or would you rotate into other places? >> i think you look to rotate. there are a couple things that really stand out the first is u.s. high yield so you look at the index there yielding close to 6% credit spreads should contract with an environment of stronger growth and emerging markets on the bond side, you have close to double

digit yields in many of those countries. and of course the risk is lower because when you look at those countries, they have now got economic growth and the currencies look cheap. >> and what about the oil market we are seeing the move today where wti crude and brent higher, but still down 9% year to date. do you think that is coming to an end and so where do we put our money? >> if you think about it more broad picture, ultimately supply and demand are more in balance now as you look forward. so oil will move around, but ultimately it's stuck in this trading range. >> all right nick gart democratic si ni nickgartthe side, thank you very much >> that is it for "worldwide exchange." happy birthday america "squawk box" is coming up next

let the second half begin. nasdaq up more than 14% since january making it the best start for the year since 2009. life in the fast lane, elon musk says the first model 3 should roll off the production line this week plus happening now, barclays and four former execs heading to court in london facing criminal charges related to the financial crisis it's monday, july 3, 2017 and "squawk box" begins right now.

welcome to "squawk box." i'm melissa lee along with joe kernen and mike santoli. take a look at how the day will kick off we are looking at a higher open across the board dow up strongly by 72, s&p up by 8, nasdaq looking to add 20. this is a holiday shortened session and this is probably light volume at this hour. let's also take a look at the ten year treasure beery. la we went from 2.13 last week to 2.27.beery we went from 2.13 last week to 2.27.eery. we went from 2.13 last week to 2.27.ry. we went from 2.13 last week to 2.27.ry. we went from 2.13 last week to 2.27.y we went from 2.13 last week to 2.27.aey we went from 2.13 last week to 2.27.rey we went from 2.13 last week to 2.27.y we went from 2.13 last week to 2.27.y we went from 2.13 last week to 2.27.ey. we went from 2.13 last week to 2.27.ry. we went from 2.13 last week to 2.27 overnight in asia, some good numbers in the tech centered economies. nikkei up by a