good morning wall street could have a new wat watchdog president trump is nominating a new banking regulator at the fed. who he is and what it means, straight ahead. primed for record-breaking sales. shares of amazon rally with prime day in full swing. we'll tell you how much the e-commerce giant could make off of today's deals. plus, snap slips shares of the messaging app closing below the firm's ipo price for the first time the details of why, coming up. it's tuesday, july 11th, 2017, and "worldwide exchange" begins now. ♪ oh, snap ♪ oh, snap >> get ready for this.

♪ oh, snap, oh, oh good morning and welcome to "worldwide exchange" on cnbc i'm sara eisen. >> good morning from me as well. >> let's check in on global markets, show you what global equities are doing after the nasdaq outperformed the three major averages, which were little changed, though you did see big moves, lower for instance in retailers. walmart was the biggest drag on the dow yesterday. prime day kicked off last night. we'll get to that in a moment. dow futures are higher, though s&p futures are little changed, down less than half a point. and nasdaq futures are down about five points. as for the 10-year treasury note yield, let's show you where we stand. we had yields come off recent highs yesterday, though not meaningfully, and we're still sitting below 2.40 on the 10-year yield. still multiyear highs. >> yields moving up again today. seemed like yesterday in europe it was single day of yields slipping a little bit. data out of asia

car sales returned to growth in june with total vehicle sales rising year over year. not a huge piece of data that, but shanghai composite is the only one in the red. otherwise, a positive session across the board for asia, the hong kong up 1.5%. europe closed up between 0.25% and 0.5% and today is giving back most of the gains, particularly ftse 100, down, but germany and italy, a turnaround from the open. 0.2 of gains for the german dax. >> as for the broader market picture, oilprices did manage to finish the day higher yesterday, a little less than 0.5%, giving that back this morning, $44.21. we'll keep an eye on that. we saw that yesterday at this time and then that reversed down a little less than 0.5%. 0.5% lower for brent crude oil as for the u.s. dollar, dollar/yen has been the big mover, looking at the highest level there since on may 10th-11th or so, $114.32

continues to zoom up following short-term treasury yields, the yen is weaker. as for the dollar versus the euro, stronger dollar, 113.93. that one is little changed and the pound is getting a little boost today, 1.2909, breaking above that level ahead of a key speech by prime minister theresa may and gold prices, on the flip side, have been weaker following that dollar/yen. and they are weaker again by 0.33% this morning. among today's top stories, president trump announcing plans to nominate investment fund manager and former republican treasury official randa lnl quarels. sam, thanks for joining us first question, his name has been out there so long, why did it take so long to nominate him? >> well, it's just been a very long process of really vetting, going through candidates the administration had earlier candidates, including david

nathan, that they wanted to appoint, but eventually, they've settled on randal quarles, as you said he has been the preferred choice for a number of months he's very much a known quantity in washington circles, and having, as you said, served as undersecretary for executive finance at the treasury under george w. bush, also a former banking lawyer, and will i think probably be quite popular amongst banking lobbyists as an appointment. the administration was saying last night they would want to preside over a less heavy-handed approach to financial regulations than under the prior regime of daniel tarullo. >> and of course, there are a lot of appointments still to be made within the regulatory space, but how important is this particular position, and can he get on and start doing some of that dereg entulatory work even before the work is completed >> it's a difficult one because the fed is one of the regulatory

institutions supervising the banks. he'll be overseeing the staff, but the federal reserve board, some of the biggest financial institutions in the country. in terms of whether he can immediately make changes to the fed, this is not quite so straightforward. once he actually gets in, assuming that he's confirmed by the senate, he will still, if he does get in before janet yellen's end of term, and assuming she isn't reappointed, isn't reappointed in february, he'llstill have to serve under janet yellen and he'll have to get matters through the board system itself, and that means getting consensus amongst the board of governors so he isn't a dictatorial figure, the vice chairman for financial supervision, but the expectation certainly is that he'll lead, as i said earlier, a less heavy-handed regime tarullo was known for gold-plating, for example, bank capital standards. >> yeah, in many ways, he is the opposite of that i think it's worth hitting some

of his biography he was a managing partner -- managing director, i think, at the carlyle group, investing in troubled bank assets he was undersecretary in terms of the treasury under bush administration how good of a friend is he to the banking industry, sam? >> well, i mean, i think we can overstate this slightly. certainly, i don't think he is a person who will say let's have a bonfire of regulations and really overturn the entire system i think he's more of a mainstream republican appointment to financial regulatory post, a pragmatist, rather than an ideological, antiregulation guy but certainly, he has been critical of very high capital standards, saying they drive up interest rates he's not in favor of breaking up the big banks. he's certainly said there's also a lot of ways of improving dodd/frank whether he'll go so far as house republicans in the choice act to seeking really major changes to dodd/frank is unclear.

he's criticized resolution regimes of giving too much discretion to the government when they're handling failed banks. we can assume that he'll want to make changes to the volcker rule, which is highly unpopular amongst investment banks as well so, really, there are a bunch of areas which are -- where there is discretion for the fed and where he could make changes. i mean, the only other point is the fed has to work with a bunch of other regulators as well, so changing regulatory practice in the u.s. is not straightforward. it requires cooperation with the other regulators and also requires consensus on the federal reserve board itself >> sam, quickly, time frame of him getting confirmed? >> well, that could take a while, and we're just seeing at the moment with all the appointments by the trump administration, it's just taking a long time to get things through the senate, so i wouldn't hold your breath. we could be talking about months. >> sam, thanks very much for joining us sam fleming of "financial

times." >> and another name, the economist from carnegie mellon rumored to be filling a spot on the fed board. so we're waiting to see that appointment. and of course, the big one everyone's already speculating on is if janet yellen stays on next year, her term is up, and if not, who president trump, gary cohn and team would pick. >> absolutely right. and when we get those, still uncertain -- a couple could come over the summer, a few rumored, but hard to tell exactly when nomination's coming. >> as far as this one, randal quarles, this rumor was swirling at the imf meeting back in washington and we talked to tim adams, as usual, the head of the iff, which is the group which represents global banks all over the world, especially the big u.s. banks, and he was very enthusiastic about this pick, says he has worked with him before in treasury, so he knows the regulatory regime, but also, he is very familiar with the banking sector and overall viewed positively in terms of

deregulation, but not taking it too far and not too idealistic. >> but he's not tarullo, and it's a big step away from that. >> true. >> but i would stress another point sam made about, to get this regulation passed needs various interaction with lots of different regulators, and there are still lots of appointments to come and various bank ceos that i speak to do suggest, they're very encouraged about the tone of deregulation, but we are talking about 12 to 18 months away before we actually see it, even if it dubs have to go through congress. lots of hurdles still to come. >> and more on that maybe when the banks start reporting. san francisco fed president john williams expects one more rate hike this year. he'll also be be looking for the central bank to start unwinding its massive balance sheet in the next few months. speaking in australia earlier today, williams said he believes the recent softening in u.s. inflation is temporary he expects it to pick up to 2% over the coming year, but if inflation doesn't accelerate as expected, williams does argue that would make the case for a much slower pace of rate hikes,

not surprising that sort of lines up with the center of the fed right now, i think. >> crude oil is trading lower again today. a new report from the iea finds oil investments around the world fell 12% last year steve sedgwick is joining us from istanbul now with the latest steve, good morning. >> reporter: good morning to you. yeah, we got that report broken on "squawk box" this morning, so it's interesting 191-page report, which i expect you to read by the end of business today, will, but there are some big headlines in there as well. the fact that electricity has overtaken oil and gas investment for the first time ever on the planet i think is very interesting. total investments in energy fell 12% to $1.7 trillion u.s. last year other big factors in that include the fact that upstream investment in oil and gas fell between 2014 and 2016 by 44% and within there, broader oil and gas, 38% decline there is good news, though actually, shale investment picking up aggressively, up around 53%, but that also means that costs are picking up.

costs in the shale industry have fallen by just around half in the last couple of years they are seen up around 16% in 2017 so, that's one big set of headlines we've had out of istanbul another set of headlines from my interview with mr. novak as well, the russian oil minister russia produces more oil and gas than anyone else on this planet, around 11 million barrels a day of oil i've gotten his comments about the longevity and how deep the cuts can go in terms of this opec/non-opec deal, which at the moment is taking 1.8 million barrels of oil off the table listen in to mr. novak and he says they can go further. >> translator: if necessary, we can extend the agreement if necessary, we can increase the amounts that need to be reduced, or on the contrary, we can move to reduce them, but everything will depend on the ongoing situation. >> reporter: alexander novak talking to us and saying,look,

if necessary, this deal, we can go deeper and longer as well it doesn't necessarily finish in march 2018 back to you both. >> steve sedgwick, thank you. senate republicans are scheduled to be updated on the bill to repeal and replace obamacare. during a closed-door meeting today. aides say the gop leadership is hoping to unveil a new draft, possibly by thursday, setting up for a vote next week reports say multiple proposals have been sent to the congressional budget office to be scored, including a measure from senator ted cruz. his proposal would give insurance companies the right to sell any type of health plans they want, as long as they also sell at least one plan under the regulatory requirement of the affordable care act. some stocks to watch today -- shares of arena pharmaceuticals skyrocketing the company announcing positive results from a study for its key hypertension drug. it's up 41% this morning barracuda network's stock is slipping this morning. the cloud-based security company posting earnings in line with

expectations, but its operating margins came in below estimates and earnings guidance is a little soft, down 5% pearson is selling a 22% stake in penguin randomhouse to joint bertlesman for $1 billion to bolster its balance sheet and return cash to shareholders. pearson slipping, down 6% this morning. other stocks to watch, jcpenney's ceo is leaving the company effective today. the retailer's chief accounting officer will serve as interim cfo while the company looks for a replacement. that's never a good sign citrix is replacing its ceo again. tataranov is separating from the company about a year after taking the job former cfo dan henshaw will take over. and shares of vista outdoors getting a bump after its ceo announced retirement independent board member michael callahan will serve as interim chairman and ceo while the company conducts a search for its replacement. we're also keeping an eye on

shares of snap that stock closed below its ipo price of $17 a share for the first time ever. snap is now down 30% since going public back in march. the billionaire battle over encore electric is heating up. in an exclusive interview last night on "mad money," encore ceo bob shopered told jim cramer that berkshire hathaway has an edge over elliott management's bid for the company, an increasingly hot drama listen. >> we know elliott well. they're great folks, our largest creditor. >> right. >> at this point, it's conceptual we're not seeing any specifics from them. >> okay. >> they're fine people, but all i know is what's in front of us is buffett the berkshire hathaway deal would be great for this company. >> right. >> i just don't know enough about elliott anymore. >> they are considering a $9.3 billion takeover of the bankrupt utility company. on today's wall street agenda, fed speak and earnings brainerd will speak about monetary 308policy in new york

12:30 and we will hear from neel kashkari this afternoon. and look for wholesale trade numbers at 10:00 eastern pepsico reports earnings before the open and we'll talk with cfo hugh johnston in a first on cnbc interview at 9:10 eastern on "squawk on the street. what are we looking for on pepsi numbers? >> with pepsi, the neilsen data, which tracks sort of the consumer products data over the quarter or so, points to a softening in the beverage business look for frito-lay north america, the snacks business, which really has been driving the growth at this company, to keep doing so and do the heavy lifting in this quarter. pepsi has outperformed some of the other packaged food giants, just in terms of a sluggish period over the last few years it's had better organic revenue growth, but like so many of the others, it's also dealing with foreign exchange headwinds and with this so-called change in the way we shop around groceries, going around the perimeter of the store to fresher foods. pepsi's been doing a good job at offering healthier snacks and

enticing consumers they need to continue to do so it's been a key goal of indra newy, and she continues to lead this company we'll see if it can continue that industry-beating top-line and profit growth. they've also been undergoing a tremendous cost-saving effort, helping profits. >> down 0.2% ahead of earnings. theresa may is giving a speech expected to offer a look for other parties in an effort to get reform through parliament may still wants to change the country, but losing her majority means a new approach is now needed the speech is seen by some as a relaunch for may after she lost most of her authority in the uk's snap election last month. how far does she go to admitting the mistake? >> i doubt she goes that far into that, but everyone's already jumping on the bits of the speech that have been prereleased and that six weeks ago, she was damning jeremy corbyn as marxist and impossible to run the government, now saying i've got to work with

these people and moderating that -- >> so humbled. >> and also changing tunes for criticized for the u-turn. we'll see if that means she can survive a little longer. still to come, a billion-dollar day for amazon. what the e-commerce giant has riding on this event one laugh, and hello sensitive bladder. so i tried always discreet. i didn't think protection this thin could work. but the super absorbent core turns liquid to gel. snap! so it's out of sight... ...and out of mind.

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exchange." let's have a look at the market action yesterday we were led higher by the nasdaq, up about 0.4%, s&p and dow were flat. tech was the best sector, up 0.8%, real estate the worst, down 0.8%. let's have a look at futures now. as you can see, essentially flat in the premarket the s&p flat oil prices yesterday, how they did, in fact, gained by the end of the day, 0.4%, havingbeen down about 0.8% at this hour this morning, pretty much flat as you can see, 44.3 on wti. sara. in corporate news, shares of amazon continue to rise after gaining nearly 2% in yesterday's session, nall anticipation of its big prime day event, which is going on right now. courtney reagan joins us with more on what's on sale and what it means for the e-commerce giant. what kind of growth we're expecting this year for amazon. >> yeah. this is an interesting day we're actually more than eight hours into amazon's third annual prime day. once again, amazon's own devices, including the echo, are the biggest on sale. that's off between 30% and 50%

the fire 7 tablet 60% off. just some of the big deals but there are other big discounts that have actually already sold out and now have wait lists, including the dulla portable power bank, 84% off, the origen bluetooth headphones 74% off and mighty rock car mount 73% off. amazon hasn't quantified its prime day sales in the past exactly, but it has said last year's was its biggest day ever, making that a very big goal to beat, even with the addition of three new countries this year. analysts estimate that prime day sales likely landed around $640 million in 2016. expectations are for sales to range between $860 million and $1 billion on this prime day the event, of course, is key for revenue, but it's very important for adding new prime members well, amazon also doesn't reveal its total prime member numbers, but it has said that hundreds of thousands of new subscribers joined for past years' prime days.

it's a really valuable group it's estimated prime members spend $1,300 annually, compared to $700 for non members. technically, this year's prime day is 30 hours, but they expect it to follow a similar pattern to the fact, in the beginning, meaning last night, and then this afternoon i don't know if you've had a chance to shop, but -- >> he is probably the only nonprime member in america. >> well, this afternoon maybe i'll change that, perhaps. >> you get a free trial to try it out, not that i'm advertising for amazon, just alerting viewers. >> this is now a bigger day than black friday, and if it is -- >> for amazon. >> for amazon, but it means the retailer is really setting the days it has discounts as opposed to the industry as a whole all doing it on the same day, so what's that mean for other retailers? >> exactly so, what's really interesting is in 2015, you saw other retailers like walmart jump in, try to offer their own big sales on this day last year you saw a little less of it, and this year i would argue even less.

we know that ebay actually is just announcing some big sales, including on its google home assistants, which sort of competes with the amazon echo/alexa devices they also have apple devices on sale on ebay, similar to best buy. otherwise, the retailers have sort of waved the white flag on this one, given this day to amazon they've declared it. >> they had a really bad day yesterday, retailers walmart dragged down the dow. >> yeah. >> it was abercrombie, yes, down 20% on that deal falling apart, but was that a prime reaction? i mean, this is something that investors should be able to anticipate at this point, no >> yeah, exactly i'm not sure it was entirely a prime reaction you bring up a good point about the abercrombie potential deal fae falling apart. sears, also announcements of more store closures trickling out. so, there are a number of factors at play. and what's interesting is in years past on prime day, amazon shares are actually lower on the day. that happens on cyber monday, too, with amazon shares. it's a kind of a strange phenomenon, because they're getting so many headlines and we

know the sales just keep beating records. shares don't react in kind, though. >> i wonder when we'll see peak prime, when the saturation point -- where that point is -- >> when the sales frost up >> that's the tipping point. everyone else, watch out. >> it might happen today i'll tweet if it does. >> i just can't believe you're -- like, i don't know how you get your toilet paper. >> well, as i said yesterday, bed bath & beyond. >> is it on sale are basics on sale i haven't even checked the prime day sales. >> there are a ton of things on sale electronics are on sale. >> are groceries >> there are some grocery sales that are highlighted with the amazon prime now, the one-hour and two-hour delivery. those are the main grocery highlights i've seen, but there are literally hundreds of thousands of deals, so i can't top of mind repeat all of them for you. >> good discounts there. 86% off, that's serious discounts. >> certainly if you've been wanting an alexa or one of the amazon products. >> for sure. >> and make the way for the new one with the screen, though.

>> but i mean, we've got discounts on all of them across the board, the older items are more discounted. >> of course, if you have an alexa, the most important thing to do is say "cnbc," and you get a business update straight away. >> that is true. >> good stuff. court, thank you very much. coming up, java lovers is it java or java >> java. >> i didn't know that. >> in your country, do you say yava >> i don't know. i don't think i ever say that word, but that was bad coffee lovers. i wish i would have said that. we'll tell you whyriin dnkg another cup of joe adds to your life ...backsweat and gordo's everything. i love you, but sometimes you stink. ♪ new febreze fabric refresher with odorclear technology... ...cleans away odors like never before. because the things you love the most can stink. and plug in febreze to keep your whole room fresh for up... ...to 45 days. breathe happy with new febreze.

still to come on "worldwide exchange," we'll round up global market action, plus key news out of washington from a new fed board nominee to a timeline on health care reform we tt.tausche has all ofha 're back on "worldwide exchange" in a couple minutes.

good morning markets now, futures pointing to a mixed open on wall street as

earnings and economy take center stage. your trading day set up, straight ahead. wall street's new watchdog president trump tapping randal quarles. more information straight ahead. and two breakfast items trending this morning, avocado and coffee we'll tell you why it's tuesday, july 11th, and you're watching "worldwide exchange" on cnbc. ♪ we're cool for the summer ♪ good morning and welcome back it "worldwide exchange" on cnbc i'm sara eisen. >> and i'm wilfred foster. coffee, i know how to pronounce that. >> java. you learned a new word in english. >> i was outright wrong. i got it wrong in english-english, too. >> i was thinking british-english said yava. that would have been your out. >> i don't think i've ever said that word before i was wrong. i stand corrected. let's move on. let's check on the global market picture this morning. futures at this hour mixed this comes on a day where the

nasdaq global market's fractionally higher. the nasdaq was up 0.4%, the dow and s&p flat within the s&p, tech the best sector, up 0.8%, real estate the worst, down 0.8% this morning as you can see, dow holding on to slight gains, s&p and nasdaq looking at slight losses at the open 10-year treasury note, of course, yields have been a big story, picking up, moved up about 20 basis points since the june trough in yields in the u.s. yesterday they paused and sift a bit, today back to rising 2.39%. yields in places like europe have risen more from the june trough, more like 30 basis points that's why we haven't really seen a strong dollar reaction to the rise in u.s. yields. >> as for the asian picture overnight, saw some pockets of real strength, including in hong kong, in japan, teeing off of that weaker japanese yen the yen is at the weakest against the dollar since mid-may, and that's helped the nikkei rise about 0.5% overnight. shanghai comp goes down about a

third of a percent korea goes higher. early action in europe indicates also some strength following asia higher, at least ifyou're looking at the german dax, up 0.2% the rest of the continent is more flattish. ftse 100 is down 0.6%, but italy is topping 0.5%, so some divergence there as we look for direction. we will get the official speech from prime minister theresa may, talking politics and the road ahead. as for broader markets, oil prices down around 4% last week. they were down 0.8% this time yesterday but ended higher 0.4%. this morning slipping to 44.3 for wti, but certainly the picture this week showing some resilience in face of sharp declines the week before the dollar board for you we haven't seen much reaction from the dollar higher, despite yields going higher. stateside, the dollar/yen is really the strong one, the standout that has been moving higher, and it's up another 0.25% again today. but the pound stronger against the dollar, 1.29 euro against the u.s. dollar is

flat the aussie/dollar also strong this morning oil prices, which have been relatively soft, were up yesterday, slightly down today, slightly, 1,210 the price of gold. president trump is expected to make his first big mark on the federal reserve. kayla tausche is joining us from our d.c. newsroom with more. most people are leading with donald trump jr. today, but for us, this is a very big deal, that we'll finally get a vice president for bank supervision, kayla. >> and it will have a big impact on the markets, and it's something that's been telegraphed for months the president's first nominee to the federal reserve board of governors is no stranger to washington he was a treasury official in the bush administration. but randy quarles has been a partner at carlisle and fund manager in salt lake city. he will versee bank supervision, a role created by dodd/frank but never formally filled he's nominated for a term spanning the next 15 years, and his nomination will require a senate confirmation, which could

get logjammed, depending on how lawmakers prioritize it. the senate, as you know by now, is currently racing the clock on health care reform before the august recess. there have been some piecemeal developments in the last 24 hours, as one waffling vote, jeff flake of arizona, said he supports ted cruz's amendment for insurer choice, but other potential noes are under more pressure as the group save my care launched ads last night in nevada, west virginia, alaska, and maine, using lawmakers' own words when they were previously critical of the bill and said they couldn't vote for it. at least one of those lawmakers, susan collins of maine, however, still appears to be a no, saying on cnn last night it needs a complete overhaul to win her vote we are expecting a new bill later this week and a vote as early as next week that is what senate leadership has said they expect in terms of the status of where this stands. the white house, for its part, says it is confident of this

bill's passing but has made it clear through comments, both by treasury secretary steve mnuchin and marc short, the legislative affairs director, the white house is committed to getting to tax reform and getting that done whether health care passes or not, wilfred and sara. so, they are treating this as something they believe will happen, but they're trying to manage expectations in the market that even if it doesn't, they're still committed to tax reform. >> kayla, quick question in terms of the randy quarles appointment, in terms of the turnaround of health care even to get that to a vote -- how long do we expect it to take before he gets his vote on confirmation >> well, it could be weeks, it could be months, wilfred we have seen the process for these nominees be extremely protracted the administration has brought up this point time and time again, pointed out that at this point in the obama administration, there were 202 approved nominees that were confirmed through the senate at this point in the trump

administration, it's somewhere around 50. so, they're trying to draw the comparison and blame this on the senate to that end, senate leadership and the minority leader came out yesterday and said it's only the white house's fault because they have control of all of the committees and of all of the key positions in both houses of congress so, there is still infighting even over these nominees as the administration is making progress in sending nominations over to the senate >> kayla tausche kayla, thank you very much live from washington this morning. in corporate news, keeping an eye on shares of snap as that stock sinks to its lowest level since going public morgan stanley just downgrading snap to equal weight and lowering its price target to $16 from $28 among the reasons, the analyst seas aye the app product is not improving as expected and competition is increasing. landon dowdy has more. >> this is a crucial moment for the stock. the parent company of snapchat closing up 1% yesterday at

$16.99, just below the $17 price when it went public in early march. the messaging app is losing popularity with investors as a new hot stock that was valued at more than $20 billion at the time of its debut. snap's drop doesn't necessarily mean that it will keep sliding, though it's not uncommon for an ip to have dip below its offering price, especially in tech. facebook and twitter stocks both slipped and eventually bounced back snap is about to see the end of its lock-up period when it hits the end of the month, insiders can sell their shares. stock is down about 3% in early trading, guys. back to you. >> we will watch that one. blue apron, by the way, got a boost for a change, anothe recently traded stock that has been plummeting since the ipo. >> since the ipo, hmm. stocks to watch today, besides snap shares of arena pharmaceuticals skyrocketing, the company announcing positive results from a study for its key hypertension drug barracuda networks stock is slipping this morning. the cloud-based security company

posting earnings in line with expectations, but its operating margins came in below estimates and earnings guidance a little light of consensus pearson is selling a 22% stake in penguin random house to joint bert yellsman for $1 million, hoping to bolster its balance sheet and return more cash to shareholders. some more stocks to watch today. shares of amazon are higher as the company holds its third annual prime day analysts say today could be the biggest sales day of the year for the online retailer. it's up 0.1% this morning. microsoft is reportedly planning to spend $10 billion to bring broadband internet to rural"seattle times" says they expect to connect 22 million people by 2022. and vintage capital has reportedly offered to buy vintage capital for $15 a share in a deal worth up $800 million. rent-a-center is up this morning. top trending stories,

starting with warren buffett giving away billions in charity, announcing he'll donate about $3.2 billion of berkshire hathaway's stock to the bill and melinda gates foundation as well as four family charities this is actually his largest contribution in more than a decade-long plan to give away his fortune. good news, coffee drinkers, your morning cup of joe could help you live longer a pair of studies finds drinking three cups of coffee a day reduces the risks of liver disease as well as digestive and circumstance entry problems. how many do you go for a day >> i drink about 2 1/2, and i always love that -- first growing up, it was like coffee's terrible for you, it causes heart problems, and overcaffeinating now the tide's turned, it's good for your heart and your health and your stomach, which i love, because i love it. >> but it's a slippery slope, which is why i never did it as i

was young. if you rely on caffeine to keep you awake, as you get older, you inside more and more. >> the story of my life. trader joe's is rolling out an avocado-flavored greek yogurt in its stores nationwide in addition to blended avocado, the yogurt is also made with blood orange and is sweetened with cane sugar for a citrus taste. trader joe's, i have to say, nails it with the trends. >> really? >> yes even if that doesn't sound good to you, they know what their shoppers like and they do these viral kind of products the cauliflower pizza crust you cannot find in a trader joe's store because they're just, they -- >> supposedly meant to be a healthy thing, and then the last line of it, you said sweetened with cane sugar, so -- >> i think that was the blood orange one, but yes, most of their products -- >> i thought avocado and blood orange in one. >> i don't know. that sounds a little tart. >> either way, i'm not sure i'm going go for that. now to sports. an epic match yesterday on the grass courts of wimbledon. i caught the end of this fresh off his win at the french

open, rafael nadal took on miller from luxembourg in the round of 15. this went the distance federer couldn't break hrough. miller pulls off the upset in the 28th game of the set to get to the quarterfinals of a major for the first time in nine years. it was the longest match of the tournament at 4 hours and 48 minutes, and just that final set was longer than roger federer's whole match at this stage. so in terms of the tiredness, of course, of players going now into the quarterfinals and onwards, so -- >> looks hot, too. >> he must be a little tired after that one also british hope in the women's, could be the first british victory at wimbledon for a long time. you're not a tennis fan? >> not really. >> no? >> no. >> are you surprised by that >> a little bit. i know you're not wild about sports, but wimbledon, i miss not being home for it, but anyway. in other sports news, the miami marlins could soon have a

new owner. jorge mas may be buying it, the owner of mastec. he beat out rival bids from groups led by mitt romney's son, tag, former florida governor jeb bush and former yankees star derek jeter. a sale would have to be approved by other team owners this one has been sort of a long-running list of who's who might get this team. coming up forget the new normal there's a new abnormal in the markets. today's must-reads are next. and it's a big day here on cnbc we're naming our top states for business catch the big reveal of the number one state for business. that's at 4:30 eastern on "the closing bell." we'll beuiinupo a y re on cnbcitll ♪

welcome back to "worldwide exchange." i'm sara eisen here with wilfred frost. time for our must-read stories catching our attention in the papers actually on projectsyndicate.com, titled "the new abnormal in monetary policy" by nouriel roubini, often known as dr. doom. it looked at the choices that the fed and other central bankers will have in the event of a downturn, or god forbid, another recession, given how extraordinary the policy is right now. yes, the fed is tightening, but only a little bit, and the ecb and the boe and the boj, they're

still in super easy mode and so, what he concludes when he goes through the options is either raising the inflation target, pumping more qe, or going to negative interest rates. roubini says the choices they will make will depend on how they weigh the risks of bloating their balance sheets, imposing costs on banks and consumers, pursuing possibly unattainable inflation targets and hurting debtors and producers at home. i.e., there will be no good options and there will be costs and consequences to all of the options because of how far down the rabbit hole they are with the super easy policy and how slow it's been to normalize. >> right. >> in case we go down again. >> he's basically saying that even though we're now finally on the paths to normalization, it won't be long before they have to reverse it again and it will be back here before too long. >> and he doesn't say when or what, but he is looking at how and what tools they would have to do so and the good news is they have tools. the bad news is, though, they're so far into it that they would come with costs, like imposing, you know, negative rates,

potentially. my pick's in the "wall street journal," "the g-20: another vacuous meet and greet," basically saying the g-20 is not the route to solving the world's problems, but there are a lot of problems out there foreigners, he writes, "see a beleaguered american president, a press in full watergate mode and a public that is weary of engagement overseas. across the globe, america's competitors are thinking about how they can use this moment to advance their own agendas. america's allies wonder whether they can continue to count on the u.s. for its security. america's adversaries are mulling how u.s. weaknesses can best be exploited," also saying that the g-20 and other similar sort of international meetings aren't the route forwards, but there are a lot of problems here that do need to be solved, and the perceived weakness on the global stage of the u.s. administration is a problem. >> well, we had a discussion about that on "squawk on the street," just how investors can wrap their head around these kind of big ideas, these big, ambiguous ideas, like a loss of u.s. leadership in terms of

security and economics and what it actually means in practice. and the bottom line, and we heard from some experts on this, is it could show up in the trade numbers, where everybody benefits except for the u.s. if they start making trade deals and closer ties, and that could have a real economic effect. >> and i think at the moment there is no sharp effect for the u.s. the fear would be if and when some of these trade deals either get rolled back, or indeed, if there is an international crisis, which we haven't seen yet. we have come close, but we haven't seen one. up next, move over trump trade. schwab says good, old-fashioned earnings are back in the ffiver's street. je kleintop is joining us when "worldwide exchange" comes right back for your heart...

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appointment of the new fed vice chair -- or sorry, nomination of the new fed vice chair of supervision and what it means for deregulation of banks? >> well, look, it's just good to start to see some progress there. we really don't know what the fed is going to look like a year from now or even less than a year from now, so getting a little bit of clarity on that is helpful. i don't think it necessarily changes our view of what we think the fed will do in terms of interest rate changes, but when you look at banking supervision, it does sort of set a path here that's maybe a little bit more positive for the banks. we like the financial sector this is one of the reasons the improving regulatory environment for the banks should be a plus, really helping to lift them as interest rates begin to rise it's sort of a good environment, especially if we can get that yield curve to continue to steepen as it has in the last few weeks. >> and jeff, of course, the banks go over one hurdle last week and this week and next week in earnings. what are your expectations >> numbers should be fairly good again, as we start to see loan growth begin to pick back up again, we haven't seen much volatility in the equity

markets, but we have started to see money come back into the equity markets by individual investors, and that increasing shift out of cash into equities and more activity should be a plus. >> so jeff, last earnings season, the big theme was the strength overseas. if you were a multinational, you had better business in europe and in asia and in the emerging markets. we saw that a bit in nike's quarter so far do you expect that to continue to be a driver this season >> i do, sara. you know, it's interesting to see. world trade is actually about to hit i think the fastest pace we've seen in about ten years. so, contrary to all the expectations about protectionism, weakening global, pace of global trade this year, should be running nearly 5%, maybe 5.5% to 6% in the second half of this year, and that's fantastic news, and it really means that international profits, which make up more than -- international sales make up more than 50% of profits for s&p 500 companies and global companies -- that should be a real plus helping to lift earnings it's really all about earnings here with valuations a bit above

average. >> what's your thoughts towards the yield curve? yields picked up right around 20 basis points on the ten-year since innes june trough. is that a worry for the rest of the market, the nonbanks of this world, the sectors that perhaps won't have earnings growth this quarter? >> no, i don't think so. i think it's a reflection of maybe a slightly brighter outlook on inflation there was some pessimism on where inflation might go for much of the second quarter that may have stabilized here. that's generally good news, getting stabilization there in the inflation outlook. i think the only country that really faces a tough slide based on what the yield curve's telling us is the uk the uk still about a 50% probability of recession based on the history of the yield curve, predicting those things since 1970 so, that's the only country. i'd single that out of the g-20 that's at a bit of a risk here based on what the yield curve's telling us. >> what are the views on growth? technology and health care have been the best performing sectors

and a lot of that you can pin to better performing earnings does that continue where do we go >> those are still two of our favorite sectors for the second half we still think they'll perform and deliver earnings, but financials may begin to turn around we talked about that but i think there's an area that's been a bit unloved this year that could begin to turn around, start to see earnings begin to pick up as well and maybe return more of that to shareholders in the form of maybe better dividend announcements and the like, in addition to buybacks. so, that could be an area where we start to see some better performance in the second half, joining tech and health care >> jeff, are you concerned about the prospect of other central banks around the world starting to normalize their policies as well as the u.s. is that going to start to add to the suck of liquidity out of the marketplace? >> well, you know, if it seems to have a negative impact, i think they'll be quick to reverse it this is one of those things where, you know, i think they'll take baby, baby steps as they begin to slow down the pace of the qe program, the bank of japan or the european central bank, and see what that does to the markets. again, a very slow approach. i'd point to the uk here, which

i think just a year ago, the idea was they might not even hike rates for five years. now the market's expecting they may do so a year from now, but it's very contingent upon how brexit goes, how the economic outlook fairs. so i think central banks are going to take a very cautious approach. >> jeff, final question in terms of oil prices. are you encouraged this week that we're not seeing the slippage of last week? >> i like a 40 to 60 range on oil, not so much for the energy sector per se, but to the fact that it's not destabilizing to the economy. drop below $40, you have concerns about oil producers and above $50, you worry about the impact of consumers in developed countries. i think $40 to $60 is the sweet spot if we remain in it it won't be a major issue for the markets. >> jeff, thank you you're waiting for pepsi numbers? >> they'll hit at the top of the hour and i'll break them down, see if they can outperform in terms of packaged food shares under pressure in the premarket. we're also of course

awaiting further developments out of washington in terms of the health care bill and further discussions on that fed vice poair of supervision apintment. all that comes up today on cnbc. "squawk box" coming up next. qqqq

good morning wall street's new watchdog president trump is nominating a new banking regulator at the fed, and his first name is randal, but it only has one "l," which is an interesting choice. prime deals. shares of amazon rallying as the company kicks off its july sales holiday. we'll tell you how it's going to impact amazon's bottom line. and this is said, i am told by my millennials and other young people, oh snap! the snapchat parent slipping below its ipo price, uh-oh, as investors look for a way to lock

up key expiration for insiders it's tuesday, july 11th, 2017, and "squawk box" begins right now. ♪ ♪ hey, it's not a miracle we needed ♪ >> announcer: live from new york where business never sleeps, this is "squawk box. >> i can't pretend i'm young i can't pretend i have kids. oh, snap is that a way so kids cannot say, oh, you know, the thing they're not allowed to say >> exactly for me, yesterday we had a guy who wrote a book called -- >> yeah, you said it on tv. >> "the justice department chicken shih tzu." so -- >> it is cable you can say anything you want. it's not broadcast. >> it is early morning and people getting dressed. >> family show >> right, exactly. >> good morning and welcome to "squawk box" here on cnbc live from the nasdaq market site in times square i'm michelle caruso-cabrera along with joe kernen. becky and andrew are off today, but joining us for the hour, ed keown, managing director