good morning washington worries eninvestors are shrugging off the trump russia scandal concerns the latest developments straight ahead. yellen on the hill fed chair set to testify before congress, meantime reports suggest that the president may have picked her successor. plus prime performance amazon's massive shopping event wrapped up and we'll tell you how the retailer faired. it's wednesday, sdwrjuly 12, 20, "worldwide exchange" begins right now. good morning and welcome to

cnbc >> good morning to you, will >> great to have you with us let's have a look at the global market the picture yesterday the nasdaq once again did outperform, it was up around about 0.3% and the s&p and dow both roughly flat. but that hid intra day moves half a percent of a selloff for most of the major indices as and when we saw the details of the donald trump jr. e-mails, but by the end of the day, they had recovered suggesting for the market at least it hasn't been the major event that perhaps it could have been. as you can see, douf up by 20, s&p by 3, nasdaq 10. yesterday as well the worst sector was financials down in part due to a slipage in yields after a recent good run for yields rising. oil prices rebounded yesterday stronger data in term of industry that spurred prices higher by 1.5% abond up today 1,

so wti enjoying two decent days in a row ten year treasury note as i said we did see the yields slip a little yesterday, so back down to the mid 2.3 range having edged closer to 2.4 at the end of last week and indeed yesterday and day before yesterday as well. >> let's take a look at asian equities down day for japanese stocks nikkei closing do you know by half a percent, big mover there the beer giant dropping about 3% hang seng though contrasting those declines seeing a gain of 0.6% shanghai com positive it and markets in south korea closing lower. you can see ire pea european st

were higher across the board after declines yesterday french equities up 0 ppts.7%. ftse also. uk unemployment rate falling to a 43 year low, 4.5%. better than expected there on the labor front. also looking at the pound spike against the u.s. dollar. >> and we've had may industrial production at 4% year on year growth so that was person expected coming out just moments ago. let's have a look at the broader markets. dollar board for you we have a little bit of dollar weakness today we had a bit of -- sorry, weakness overall yesterday, but strength against the yen finally that has turned around as you can see a decentmnuchove south of the dollar

elsewhere the dollar broadly speaking is flat canadian dollar showing a bit of weakness gold prices just to round things off, a little bits of gains today. a third of a percent or so 1218 the price top story in politics, donald trump jr. says looking back on his meeting with a russian lawyer, he probably would have done things differently. the president's son made those comments in an interview on fox news last night. he tweeted e-mails yesterday showing that he welcomed an offer to meet the lawyer who was allegedly linked to the kremlin and had damaging information on hillary clinton. in the enter are view, he also says he did not tell his father about the meeting. >> it was such a nothing, there was nothing to tell. i wouldn't have even remembered it until you start scouring through the stuff. it was literally just a wasted

20 minutes which was a shame >> donald trump jr. also says he's willing to testify under oath about the meeting the president released a brief statement yesterday in support of his son describing him as a high quality person. >> perhaps overxanlgation in the press of some of these russia stories. the reason this is dynamite is because it has come directly from the source and it has clear indications within the text of the e-mail it's not according to a source, so everyone got super excited about it and indeed the market did in terms of the half a percent selloff in the middle da of the day but this speaks to his intentions not necessarily the actions. we just have to go on his word and particularly following that exchange on fox last night, it speaks much of him position and not necessarily the president or the camel pain so again, juicy as it was yesterday, we don't have any hard evidence and extraordinary lack of foresight for him to put

these types of words in e-mails when he's in that position >> but not of course an elected official of course it pushes the story forward around the ongoing controversy around the administration's ties with russia if at all something the market did respond to and we saw a big drop in the dow jones industrial and s&p >> and recovered by the end of the day. shocking use of punctuation in the e-mails as well. gary cohn is leading candidate to replace janet yellen. source yous say that the job is kohn oig's if he decides he wants it he would be the first federal dhar in four decades who isn't an economist cohn is also mentioned as a potential future white house chief of staff clearly the man getting good traction within the white house, but this would definitely ruffle some feathers within the fed because of the lack of hardcore

economist back be grugrounbackgd he is seen previous ofly being a democrat more than a republican. >> let's stick with the fed because janet yellen is headed to capitol hill today to testify before the house financial services ghitsicommittee. and we'll get the fed's latest read on the economy when the central bank releases its monthly beige book report at 2:00 p.m christine lagarde doesn't agree with some xhechbcomments yellen made. >> i wouldn't exclude that there may one day be another crisis. where it will come from, what form it takes, how international and broad based it will be is to be seen. and typically the crisis never comes from where we expect it. so our duty and certainly the message that we give to the finance ministers, to the

policymakers is be prepared. make sure that your financial sector is under good supervision, that it's well regulated, that the institutions are rock solid and anticipate with enough buffers so that you can resist the potential crisis >> lagarde suggesting a crisis usually comes when you least expect it. moving on, the deals are done. amazon prime day wrapped up about two hours ago gee. let's get to courtney reagan with some of the numbers >>gee. let's get to courtney reagan with some of the numbers >>ee let's get to courtney reagan with some of the numbers >> let's get to courtney reagan with some of the numbers >> let's get to courtney reagan with some of the numbers >> it was the third annual prime day and amazon told cnbc it was on pace to be the biggest global shopping event in amazon history with u.s. prime members ordering more than 6,000 deals every minute by 3:00 p.m. eastern time what it calls small business sellers had a 50% plus increase in the units sold around the world compared to the same time frame during prime day last year

most shopped for themes according to amazon home chefs for the home and techies a lot of technology products for sale amazon says it sold two times more of those echo family devices this prime day and three times more sold worldwide. other top selling items include dna tests and bluetooth headphones market track analyzed a sample of 120 prime day deals from different categories, but cluding those alexa only voice prompted deals and found that the average prime day discount was just shy of 40%. still, some shoppers may have been a little disappointed by the prices on products most popular on every of day of the year boom rang commerce found amazon normal best sellers in categories like appliances, home and garden, electronics, weren't discounted in fact they actually were a little bit more expensive on

prime day than on a nonprime day. >> i'm curious, court any, do we know -- clearly success for amazon, but what does this mean for a its bottom line?any, do we know -- clearly success for amazon, but what does this mean for a its bottom line? any consensus from analysts? >> all we know is that the analyst estimates going into the day, they were ranging anywhere from a 35% growth over last year to a 56% growth over last year and what amazon had told us about 2016 was that it was its biggest day ever even when compared to a black friday or a cyber monday so i think success for amazon is beating last year, but we really don't have any new estimates as to how the day faired. like we said, just wrapped up two hours ago. so until amazon gives us a little bit more information, it's hard for the analysts to sort of put those numbers into practice >> and i still haven't joined

amazon prime so it hasn't peaked. >> you have to buy stuff from somewhere. doesn't have to be amazon. >> exactly i have zero explanation for it because i must pay in delivery from amazon easily the subscription but each time i'm like no, i won't quite commit this time in other corporate news, twitter is tapping a wall street veteran as its new cfo landon dowdy has the details >> twitter naming ned segall to take over. he will report to twitter ceo jack dorsey. segal last served as senior vice president of finance for intuit. spent nearly 17 years at gold man sax. he says he believes twitter has tremendous potential aend can't

wait to work with dorsi. s t segal will have a $500,000 salary and a shares of twitter initially popped more than 3% on the news and they are up slightly this morning in early trading back over to you more stocks to watch today, dow chemical agreeing to sell a portion of its business in brazil for $1.1 billion. the move comes as the company seeks regulatory approval for its merger with due pontpontdupt a u.s. court says toshiba must give its database in its bid to buy the chip unit. burberry saw a jump in its revenues same store sales were up 4% doubling analyst expectations. more stocks to watch this morning. shares of health care services

getting a bump topping estimates with a 2% jump in revenue, and apple reportedly putting in overtime to fix softs wear bugs affecting its next generation ichlts phone they say the glitches include problems with wireless charging and a 3d sensor for facial recognition. that stock unchanged at this moment and we are continuing to watch shares of snap the stock down again trading well below its $17 ipo price oil prices rising on drop of inventory data would be d bob dudley's call on crude is next stay tuned you know what's awesome?

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and don't forget about them. uh huh. sure. still yes! you can get it too. welcome to the party. introducing gig-speed internet from xfinity. finally, gig for your neighborhood too. women coelcome back. let's get you up to speed with the market action. oil prices rebounded yesterday on better inventory data rebounding again today extending that to 45.8 on on wti crude up the best part of 2% an sticking on the topic of oil, let's get to istanbul where steve sedgwick has just spoken to a very important guest. >> reporter: yes, we just spoke to bob dudley who of course is the boss of one of the largest energy companies on the planet, bp and he will make some very interesting comments at the world patrol dwretroleum congre including the fact that bp is

making assumptions across the board based around about $50 a barrel for the next five years but of course the obsession with the u.s. data and obsession with the iea and opec data out later this morning is when we get to balance on world markets, ie when supply equals demand and these inventories come off from their multiyear highs and back down to five year averages i spoke to bob about this and got a his interpretation on what balance means. let's listen in. >> everybody uses the word balance and they forget that it means different things to different people to me, it means balance on on a daily basis production and demand is equal. so on a daily basis, market is in balance just the inventory levels are so high so we'll see what the stock levels go. you can't do it weekly, bi week which is what the market is doing. but this is a longer term game

>> reporter: i spoke to bob about capex and of course a lot of things he can't say, bp in a closed period. but they did shock the market in february when they said break even had risen to about $60 a barrel on the back of bearish even investments that they made. spent a little more money after a couple frugal years. i got the impression that the numbers which we get right at the tail end of july we'll see actually that break even coming right back down to somewhere in the 50s region big news as welcomes from the opec monthly report on the market as well, that one is due in around about an hour and 13 minutes time and that could be the next thing that moves these big oil markets. >> steve, thanks very much for that inventory data support things yesterday and today. still to come, we will head to washington where the after shocks of the russia e-mail scandal are still being felt donald trump jr. speaking out last night

we'll tell you what exactly he said

welcome back to washington now, lawmakers are reacting to the release of donald trump jr.'s e-mails which would offer proof his father's campaign was willing to work with the russian government. tracie potts joining us with more >> reporter: good morning. the "new york times" says they were just about to publish those same e-mails just before donald

trump jr. tweeted them six days before natalia veselnitskaya flew over from russia to meet with donald trump jr., he received an e-mail promising, quote, very high level and sensitive information part of russia and its government's support for mr. trump. his reply? if it's what you say, i love it. trump junior explained to sean hannity. >> for me this was opposition research, maybe they had concrete evidence. >> reporter: analysts predict the fbi may want to know more. >> if he tells the truth, he jest can implicates himself in campaign fraud if he lie, he is going down for perjury. >> reporter: in an exclusive interview with nbc, the lawyer denies any connection to the ce kremlin. >> russian government attorney, that means you >> translator: no. >> reporter: democrats are asking why didn't trump alert authorities about a foreign g

government promising dirt on hillary clinton. >> it was unethical. >> this is moving in to perjury, false statements and even potentially treason. >> reporter: republicans are skeptical. >> this is kind of an odd way to suggest the russian government wants to help by sending you somebody that doesn't have any evidence at all. >> this is a serious situation and one that is a long way from over >> reporter: the white house denies president trump knew anything about that meeting. now, the white house at this point is referring all questions about this to donald trump jr.'s new attorney, the president inis first statement since the story broke says that his son is a high quality person, but the white house staying pretty far away from this one in terms of getting involved or answeringing any questions. >> we know the justice department, the house and senate intelligence can committees are looking at russia's ties with the trud given this e-mail exchange

surfacing, does it increase the chances of donald trump jr. having to testify at some point in. >> reporter: a number of legal experts think if nothing else, the fbi will want to talk to him and ask him questions as part of their investigation. and the way we have seen things going here on capitol hill, yes, already some members of those investigative committees have said they want to on bring him in >> and just update us with the latest 00 the health care bill and what we expect throughout the rest of the week >> reporter: well, they are still working on it. they are hoping for a vote sometime next week we're expecting a draft of the changes tomorrow >> great stuff tracie potts for us live in washington and kushner companies, a real estate company that was at one time led by the president's son-in-law, announcing that it is reassessing how to pay for the redevelopment of its flagship new york city property. this after deal talks with qatar's former prime minister fell through the dough saying it remains in active discussions with a number of potential investors to aid in

the redevelopment. trump hotels have been hacked again the "washington post" reports 14 properties have been impacted including trump central park, trump chicago, trump las vegas and trump d.c. the breach is said to have compromised the credit card numbers, names, addresses and phone numbers of guests who booked using the third party booking system most of the hacks occurred between november 2016 and march 2017 still to come, a round up of the top stories including what to expect from janet yellen on capitol hill today plus move over psy gangnam style has lost its crown. we'll tell you who is number one now. and here is today's national weather forecast from bill karins >> good morning. we are looking at storms this morning in chicago with lightning as well for indiana and milwaukee. so be careful out there if you are traveling. we may even have airport slowdowns due to the wet

weather. look at all the rain likely to accumulate wednesday into thursday and again, that could cause airport delays if your business trip takes you to memphis or gulfport, watch out for steam any conditions that stretches pretty far to the east, as well. the heat and humidity is building for the next couple days we have heat advisories in place even all the way to philadelphia for thursday so be looking at hot temperatures and of course with that humidity, it will feel even hotter than that temperatures will feel like it's at 100 in parts of missouri and kansas that is your business traveler's forecast

fed in focus janet yellen heads to congress and investors will be listening closely. and oil prices jumping as supply concerns ease more on the data behind the move coming up. plus in case you missed it, lie lights of last night's all-star game where a last minute addition to the american league made mvp. it's wednesday july 12, 2017 you're watching "worldwide exchange" on cnbc. a very warm welcome to cnbc. let's get straight to the global market picture thorn after a pretty volatile day yesterday.

markets ended broadly flat during the day when donald trump jr. released those all-important e-mail, we did see about half a percent selloff, but markets ended broadly flat and off the lows oil prices also had a decent day. they gained about 1.5% and up almost 2% this morning on the back of better inventory data. we did see yields rising a couple weeks, but slipper yesterday. 2.34 and that is why financials underperformed credit. they were the worst performing sector on the s&p. >> markets still trying to digest the latest e-mail exchange involving donald trump

jr citigroup writing that it increases the uncertainty around the durability of the trump administration take a look at how asian equities closed. it was a down day for the japanese nikkei by half a percent. china and south korea also closing lower. a bright spot was hong kong up by around 0.6 respec%. the 100 day plan expected to be unveiled on on monday, of course 100 days from that president xi jinping meeting in mar-a-lago. european equities, industrial production beat expectations better than expected labor market numbers out of the uk uk unemployment rate following to a low we did see notable move in the pound against the u.s. dollar.

>> the dollar was stronger yesterday, but weaker against the yen -- sorry, weaker by 0.3%, but stronger against the yen yesterday and now turning around against the yen as you can see, slipping about half a% today against the japanese current city and elsewhere, be a little bit of a jump in the british pound let's turn to today's agenda janet yellen headed to capitol hill this morning to testify before the house financial services committee on the state of the economy we'll also gets fed's latest read on the economy when the central bank releases its monthly beige book report at 2:00 p.m >> amazon shares at the moment up about a quarter of 1% as the code wraps up prime day. let's bring in the ceo of j

rogers worldwide enterprises and cnbc contributor first and foremost, is this a stock moving moment for amazon prime or just a oneoff benefit to the numbers a little bit? >> it's not a stock moving day, but yes, it is a big event and it will be a bigger event every year just like it was year over year from last year. and apparently you're the only person left that is not a prime member and i'm the only person that didn't buy anything so i think we're the outliers. it's been a really big day for them they got a huge gain year over year from last year apparently, they haven't told us the numbers yet, but i don't think any of us are surprised. we all thought this was going to hatch. and the real story is it's not any good news for anybody else in retailing >> and to on what september is that the case? we did see walmart up a couple days ago in the dow. is this another sort of whole foods type purchase moment for the rest of themarket to wake up and realize or not?

>> draw, it kind of is think about it, when they grow 20% every year, whether it's because of prime day or something else and the rest of retailing is barely growing at all, items always a market share game so when they can do this much business this july where nobody else does any business, july the second smallest month of the year for retail and yet they can throw an event that is imaginary and made up, nobody thinks there is a holiday, nothing is going on other than amazon said we'll throw a big event, that is a pretty extraordinary ability to move the customer. >> do you think the market is overestimating the impact amazon prime day will have on it's longer term success in the online retail space? yes, they are on pace to break their record of last year, but still it pales in comparison to the sales that ali baba saw during its singles day >> in a word, no, i think this

is a bid deal and it will get bigger every year. i agree they copied ali baba and they don't have what is going on at ali baba. but look at this day, it's july and they are throwing all this business in the mix. nobody else is doing that. other people are trying to com pete on amazon prime day and it really doesn't made much difference because is this an amazon created holiday and it is really working for them. and my guess is that it will just get bigger every year and they will do it better and all of these third party players, some who weren't really playing when theyr gotten more d more business. and i think it will become an enormous event and in july for retailing it'sy both >> give us a name who you think is in a better place to fight back with a reasonable valuation? >> there is only one person

feared to git bafight back and called walmart i still support walmart. i think they are doing a great job. i think they are the biggest threat to allege sm son. they battle it out in he grocery and retailing and on online and they will battle it out in brick and mortar now so that is the two players do i think that there are other people that can play sure i think if you're off price, online or local, you can win but florida is a hard game to play except for the online side. and on the online side, nobody is really making any money in their online business. so it's a tough competitive place to be. when you're competing with an enormous growth retailer whose cost to capital is zero in amazon and who only gets paid on their stock price for growth and doesn't really have to make a profit on their next sale, that is a pretty tough competitive place to be for anybody trying to compete anyplace across the specs strum. because amazon intends to take

over the world and they are doing a pretty darn good job of it >> you summed it up pretty quwel thanks for joining us. twitter is hiring a form er goldman sachs managing director, ned segal, as its new cfo. shares up half a percent right now. apple is secretatting up its fit data center in china as apple works to comply with the new tougher security laws put in place by the chinese government. and we are continuing to watch shares of snap the stock is down again today trading well below its $17 ipo price ahead of one of its key lockup periods there has been some concern that some of the insiders will sell shares the stock ending lower yesterday by around 6% >> that morgan stanley note that sparked the selloff, a chief

underwriter of the stock pretty quick turnaround to come out with a note that is so negative relative to previous targets. >> perhaps a little late to the game we've seen the stock down about 30% there going public >> underwriters of course always take their time in terms of turning on a stock wells fargo is selling its share registration business to britain's group for a $227 million. the move comes as they look to on enter the u.s. market shares of burberry are higher after the company reported better than expected results. retailer pointing to strong demand from chinese consumers. that is up 2.3%. and shares of health care services getting a bump this morning. the company topping earnings estimates with a 22% jump. revenue shares up 4% uber is attempting to reensure investors that it's scandals are not weighing on its business in a conference call, the

company told investors to expect improved bookings, and possible settlement with alphabet's waymo. the legal battle has been one of the company's biggest legal hurdles and while no formal agreement is in the works, the issue could be resolved before the scheduled october court date let's get on to our top trending stories today joe scarborough making a big about announcement the msnbc host and former gop congressman saying he is leaving the republican party >> aren't you a are not? >> i am arepublican. when you but you i'm not going to be a republican anymore i'm going to become an independent. >> sort of a surprise, but not really >> exactly >> almost con firmation of what we already assumed

and another story trending, gangnam style no longer the most watched video on youtube wiz khalifa see you again music video took over the top spot with nearly 2.9 billion views. it was first posted on the site in april 2015. a beautiful song >> i've never watched this video. i do like the song >> it's a slow beautiful song. >> whereas gangnam was all about the video. >> because they had the iconic dance move how did it go again? >> not going to happen plot me that's for sure. from you >> maybe during the break. >> okay. facebook, it is upping its ad game. the social network is planning to roll out ads by the end of the year facebook has tested in messenger ads in australia and thailand.

>> not sure i like the idea of this as has been discussed, i hate seeing ads whether youtube or twitter. but on a messaging service, it would drive me mad >> but if they want to make money -- >> we'll see if it works maybe people will just are you go back to sms kfc celebrating its 30th anniversary in china unveiling a limited edition of smartphone. it's bright red and comes complete with the logo of colonel sanders. >> and the roam that yum china role that yum china is playing injecting technology in their marketing. i'm not sure if i would buy one, but maybe it works for the chinese consumer >> have you been to kfc in

china? >> i have not. >> i didn't eat, but i went in interest and it's almost a totally different menu it's seen as this great western brand, but not actually much translated >> they customize their menu to appeal to the chinese consumer mcdonald's does the same thing in india they have certain items that aren't available here. like a lamb burger, a goat burger don't quote me, but last time i went there the state of washington getting a lot of buzz today after being named cnbc's best state for business their economy grew 2 1/2 times faster than the national rate. and washington always has the largest concentration of s.t.e.m. workers the complete list of top states is on on cnbc.com. and now to sports. fan duel may be rethinking its merger with draft kings. the sport site may walk away from the deal after the federal

trade commission said it would challenge it in the courts the ftc says the merger would give the companies more than 90 respect about of the market for daily fantasy sports bets. in an interview, fan duel ceo says the company is still evalue eighting options and to baseball, the sport's best players were on on display last night at the all-star game. the game was tied and went into extra innings, and that is when skrchlt a cano hit a home run. he was a last minute edition to the team and was named mvp players took time out to have fun during the sixth inning, nelson cruz pulled out hiss phone and asked the catcher to take a picture of will him with the home plate umpire who was happy to an be blign oblige >> they put their rivalry to on the side and come together and put on a great game, a great show for everyone. and same for basketball as well. >> shabsolutely right

still to come, how googlevo political sway and we are higher across the board. ca ♪ new febreze air effects with odorclear technology cleans... ...away odors like never before. because the things you love the most can stink. and try febreze small spaces to clean away odors for up... ...to 30 days. breathe happy with new febreze.

can. welcome back if you're just waking up, let's get you up to speed with the market action. up higher 24 on the dow, twef12

the nasdaq and s&p up about 3. s&p and dow flat yesterday, but had declined on the news of donald trump jr.'s e-mails being released but recovered by the end of the day. dollar was down around 0 .3%, bt did gain again against the yen that is reversing today. the dollar slipping against the yen half a percent elsewhere a little bit of dollar weakness against the pound gold prices gaining slightly time for our must read stories my pick is in the "wall street journal. they outthe line the potential defense case against the latest round of news against the administration and russia particularly the donald trump jr. e-mails. and really saying here that there isn't enough evidence again for someone to go against

it, particularly he writes a lot of what you're seeing is just naked political warfare at which team trump is failing badly in faskt getting buried his point saying there is still no fundamental evidence against the trump administration, but it's hurting donald trump and certainly taking its toll. and if you want to read a defense of the latest set of information, jenkins goes through all the points >> and my pick is in the "wall street journal" titled paying professors inside google's kad pick influence campaign. the they write google hats helped finance hundreds of research papers to defend against regulatory challenges of its market dominance paying $5,000 to $400,000 for the work. google then promotes the research papers to government officials and sometimes pays for professors to meet with prominent politicians in washington just a sign of how silicon tech

gooi giants use lobbying in an effort to gain influence in d.c >> huge public policy departments now these companies. still to come, janet yellen heads to capitol hill and we'll talk about the high stakes impact it could have on the market and later on "squawk box," don't miss jeb hensarling. find out what he plans to ask janet yellen today f what's happening right now? we're facing 20 billion security events every day. ddos campaigns, ransomware, malware attacks... actually, we just handled all the priority threats. you did that? we did that. really. we analyzed millions of articles and reports. we can identify threats 50% faster. you can do that? we can do that. then do that. can we do that? we can do that.

welcome back we are higher in pre-market trade and the big talker today will be janet yellen's testimony on capitol hill. her take on the economy, inflation side of the equation and of course the strengthin the jobs market. take a look at european

equities dax higher eurozone highest output in six months you can see the french equities up nearly 1% the ukel unemployment rate falling to 4.5%. better than expected, that is helping equities in the uk hire by as much as 1% on the ftse 100 as well. >> making headlines, top white house adviser gary cohn reportedly the leading candidate to replace janet yell even en a chair. sources say that the job is cohn's if he decides he wachbtss it he would be the first federal chair in four decades not to be an official economist. yellen will head to capitol hill this morning to testify before the house financial services committee. a quick look at the ten year treasury note which has seen yields over the last two weeks rise, but over the last couple days slip back lower toward the 2.3 handle

joining us to discuss, market strategist and portfolio manager at pimco good morning thanks very much for joining us. first up, let's talk about january either yell janet yelles testimony. what would be top of mind to try to gauge what she is thinking? >> we want to know when the fed will implement its balance sheet reduction program. the fed has given about plenty of indications that they will announce it in september potentially implementing it around that time and then proceed with ragz interest rates who knows when if they try to pin down yellen as to on when she will raise interest courts again, of course as usual she will say very little >> and the other question of course is if she is likely to stay on and clearly again she's unlikely to reveal that particularly because it relies on other people as well. but is the fact that she's coming to the end of her tenure

artificially speeding up her normalization process? is she thinking i need to get some of these things started even if the economy is not ready for it >> pimco has an important adviser ben bernanke and one thing he's told us is that of the imt timing of what he announced which was the end of bond buying reflected the fact that he was leaving about a year later. it's considered a courtesy to the next fed chair to put in place such a big change in policy so that the next fed chair won't have to make such a big giant decision so it's possible that that is the case but economic conditions surely do support the idea of balance sheet reduction. straight below the nonaccelerating unploichlemployt so it's probably more a

coincidence than anything else >> what is your thoughts on the nomination of randall quarrels former investment manager and former treasury official, now being nominated as fed vice chair of supervision some wall street analysts were saying yesterday that this is a big positive for the big banks because he has been a fan of deregulati deregulation >> and should you expect that other appointees including the fed chair will be fans of deregulation we know that donald trump loves deregulation and the treasury department recently submitted 90 proposals to deregulate the banking industry so he would be well regarded by the financial markets. >> coming back again to yellen's testimony, we've seen yields tick up over the last couple weeks, come off the troughs of late may and early june. do you expect janet yellen to acknowledge that and in your eyes how much extra pressure

does it place on economic activity here and the market wheern we start to see other central banks normalize as well as the u.s.? >> there was this feeling a couple weeks ago that came from portugal that there was an accord, central bankers decided to indicate that they would begin the removal of monetary accommodation. we believe there was no accord, there was no agreement to coordinate the removal of monetary accommodation, that they are simply coincidences because of the growth in the global economy this space is supportive of global profits so we expect that the indications will continue to mnuchin loochk t move along the lines of slow and gradual removal of monetary accommodation. keep in mind european central bank is probably four years behind the united states so we're not expecting a big

rate move. >> tony, thank you very much for joining us we have to leave it there. that is it for worldwide c exchange "squawk box" is next or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember.

crude prices rising following a drop in u.s. inventories and new report out of saudi arabia. details straight ahead prime performance, amazon's huge shopping event just ended we'll tell you how the retailer faired and janet yellen heads to capitol hill amid reports that a frontrunner has emerged to be the next fed chair when her term ends this was talked about months ago by sorkin and others items wednesday, july 12, 2017 "squawk box" begins right now. '. "squawk box" begins right now. m. "squawk box" begins right now. s7 "squawk box" begins right now.

welcome to "squawk box." i'm michelle caruso-cabrera. along with joe kernen. our guest host for the hour, joe terranova also with cnbc's halftime report. >> gcood morning. >> u.s. equity futures modestly positive suggesting that we'll have slight gains. actually hire now. dow by 36, s&p by 5 and nasdaq by 18. mixed session overnight in asia. yen influencing what happened with japan japan lower by half a percent. shanghai composite basically flat european equities were broadly higher hire by almost 1