a new week with the dow and s&p 500 with all-time highs. trade day setting up. hitting the pause button on the plan to dismantle obamacare. the latest from washington coming up. watch out blue apron amazon made a big move on the meal kit space "worldwide exchange" begins right now. ♪ welcome to my house ♪

good morning welcome to "worldwide exchange" on cnbc. i am wilfred frost >> i am courtney reagan in for sara thanks for joining us early if joining us in the u.s. let's check the global markets, to see where things are taking off on this monday morning. we take a look at futures after we had a nice week last week with the dow and s & p ending at record highs stocks are slightly higher, if the dow-jones opened now, up 25 points, s&p 500 slightly to the up side, nasdaq up about nine points look at the ten year-year-old. 2.3 or so. expectations pulling back for a rate hike next year. sitting around 50/50 for that possibility. let's look at asian markets. three key pieces of data out of china overnight. growing faster than expected 6.9% second quarter, and factory

output surged to 7.6% in june. retail sales topped expectations, rose 11% over the course of the last month if you look at what it means to markets, it is a negative reaction for chinese equities, down 1.4%, and there was talk, more deleveraging to take place if growth is holding up. comments about more regulation coming, that's why chinese markets are down the nikkei closed today. marine day elsewhere other than china we have gains wasn't just gains in the u.s. last week, hong kong had a market high, gained 4% last week let's have a look at european equity markets ftse up only a half percent. today a mixed picture. germany and france down this morning. let's check the broader markets, see where the action is

this monday morning. for wti crude, prices creep higher by almost 0.2%. above the 46 handle. a big draw down last week and two key numbers, two new rigs added to the rig count friday and some bullish news from china with refinery news, helping to push energy markets higher looking. huge drops in the dollar friday, at the end of the week after we got disappointing retail sales, stagnant cpi numbers you can see a little movement this morning, not much, not nearly what we saw friday which was quite a reaction around the world with global currency look at what we are seeing with gold slightly higher, some move into this asset class as another option you can see gold is sitting at

1229.7. >> dollar action in the course of the week, another soft week, dollar down. interesting thing, two many reasons, comments from janet yellen, getting less rate hikes and softer data, inflation or retail sales fact we saw stocks react positively on both occasions is something to be wary of, makes sense in terms of comments from yellen does that deserve equity markets to spur higher different causes for a softer dollar equities responded well over the course of the week, and tech stocks are up 3.8% >> microsoft and apple were leaders in the dow. >> that's right. move on to politics, senate republicans delay action on the health care bill senator john mccain recovers from surgery he had a blood clot removed from above his eye, he is doing well, must remain in home state of arizona for now.

sudden absence prompted senate majority leader mitch mcconnell to postpone the planned vote on health care. senate republicans need mccain's vote to advance the health care bill it is unclear how long he will be sidelined for "new york times" article suggests might be longer than first expected, couple weeks at least. despite the health care delay, the white house is reportedly moving forward with tax reform axios says the trump administration will start pitching that plan next month, hope to have it finalized after labor day. the president will start building nationwide support for his tax plan by barn storming the midwest states he won in november. in cobra news, a fight for seat at proctor gamble they will launch that proxy battle to jump start lackluster sales growth it would make p and g the largest to elevate a proxy fight.

last week, they denied request to name him to the board holding $3.3 billion of the stock. you can see it is down a tenth of a percent amazon making two big moves, messaging and meals over the weekend in the quest to world domination i think landon dowdy joins us with more. >> certainly well on the way move over, blue apron, amazon stepping up the grocery game, plans to deliver meal kits to customers' homes the e-commerce retailer registering trademark for we do the prep, you be the chef. this is weeks after amazon shelled out more than $13 billion to buy whole foods they already own tyson and martha stewart marley spoon on amazon fresh, the delivery service. the retail giant not just trying to change how you grocery shop but how you chat amazon is working on its own

messaging app called any time. according to report. focus on messaging, voice, calls, apply filters to pictures and videos, it is an effort to take on facebook messenger or what's app shares of amazon are up a tenth of 1% in early trading back to you. >> this is incredible. one different industry after the other with amazon. do we need another meal kit delivery service, photo sharing service? >> we need the meal kit delivery service, makes sense to go into that space given their ability to deliver and new found love for groceries. i agree on messaging, i don't understand where that comes from, i don't know how they make that work. you don't go on to amazon app or website to send messages to friends. we already have so many options for that i don't know what amazon adds there that we think they're best in the business. meal kit delivery i get, it is a

warning shot for some of the other rivals like blue apron that london talked about, they probably can deliver it at lower cost than others. >> don't you think it is wild there hasn't been more outcry about everything amazon does, every avenue it tries to dominate, people aren't up in arms about it? >> i think you see it in share prices, but -- >> everyone thinks amazon will win. >> the consumer gets a lower priced product, that's why you're not seeing widespread dissatisfaction. certain companies i'm sure are on a daily basis other stocks to watch, unilever buying the food division the two companies are front runners in a deal likely to top $2.9 billion barrens thinks whirlpool could gain 35% in the next year.

the paper says the stock is a bargain, at $192, despite gaining 90% since end of 2012. and posting 10.4 jump in renault sales. more stocks to watch wells fargo planning to eliminate smaller businesses, the financial times reports the lender will spin off a number of products in effort to focus on relevant ones, restore investor confidence slightly disappointing on loan growth a german paper reports ecb is considering carrying out special assessment of deutsche bank two largest shareholders. they may launch ownership procedures to scrutinize the qatari family.

easy jet carolin mccaul will be the new chief executive of itv she will start her role in january, easy jet stock up a little today itv getting a percent and a half jump last time i checked. >> interesting corporate move there. turning to wall street agenda, we get results from nine delco components netflix out after close today. later, hearing from bank of america, goldman, sachs, j and j, morgan stanley, american express, microsoft, visa, and general electric as for economic data, the manufacturing survey is out today. tomorrow, home prices and home builder survey wednesdaying housing starts. and thursday look for the fed survey. >> jumping on bank earnings. friday so much focus on jamie dimon's outburst, easy to miss key themes from earnings

themselves you have to commend citigroup numbers relative to expectations they didn't have either of the little disappointments that jpmorgan had in terms of capital markets, trading and disappointment in net interest income citigroup overall is solid, they did better than the other two. and still one times book compared to jpmorgan a little slip there. looking ahead to the rest of the numbers, you say goldman, sachs is probably under pressure, 70% of revenue comes from capital markets, both citi and jpmorgan showing decline in that business focus on goldman, sachs, particularly given the miss last quarter. still ahead. getting down to business brexit talks under way between the uk and eu. we tell you what we are watching. as we head to break, here's how european markets are trading at this hour a mixed picture.

only slightly so stay tuned chgeonnbin"wlddewi exan" cc. s coveted. their leadership is instinctive. they're experts in things you haven't heard of - researchers of technologies that one day, you will. some call them the best of the best. some call them veterans. we call them our team.

back to "worldwide exchange." if you're just getting out, u.s. kwelk equities are high. essentially flat decent week, half% gains friday,

dow up, nasdaq 2.6 within the s & p was the outperformer, leading the charge, almost 4% fwans for that sector european trade, 2% of gains for the dax. little bit of softness, germany down a half percent. brexit talks are under way two men meeting in brussels. let's bring in chris giles if there was one big take away leading to this round of talks, would it be the brits admitted they have to pay up front financial exit fee >> yes i think that's the big thing that make the talks go better than we might have feared. the fact that britain accepted they will have to pay some money, means at least there's agreement on that now. now it is how much and what the formula will be. >> in terms of on the agenda

today, what's the top item, citizens rights? >> this week, three items. citizen rights, money, and northern ireland what the eu wants to see this week is progress on money, it moves further than just being that britain agreed. there's some bill to pay also agreement on roughly the categories of what that bill is. there's big things like money that has been allocated already but not spent, if britain agrees that money has to pay, that's a large part of the bill that the eu wants so there are categories of the bill if you can make progress, talks can move on to a new phase. >> and chris, in terms of the uk side of this negotiation, we know david davis is the man in brussels leading talks back home in the uk, seems to be division between her cabinet about what the uk should be seeking and pushing for.

what's the latest in terms of teresa may managing to keep her cabinet together and as one, as it were? >> well, she's determined. that's the brutal truth. it is just chaos there over the weekend we had cabinet ministers going on tv saying five other cabinet ministers are briefing against them, the chancellor wants to be sure there's a good transition so we don't crash out of the eu in march, 2019. esque briefed, people are saying he is just establishment it continued today really just chaos. means that talks in some sense, britain has to decide what position it wants before we go to the eu and negotiate. actually at the moment, the situation is terribly fluid in a broader sense. good news on one level on brexit talks. but on the bad news, that the british government is in pieces on this. >> chris, thanks very much for

joining us chris giles. the pound gained because of the dollar weakness side of the bargain. the u.s. and china just crossed a big milestone in trade talks. cnbc union is yoon >> the deadline for the 100 day plan passed over the weekend officials from both sides hashing out some of the terms over the course of the week, especially on wednesday when negotiations for the comprehensive economic dialogue take place where do we stand when it comes to how much progress has been made this is what's going on. in beijing, the moves for the 100 day plan, most significant is probably that they did allow the u.s. to bring in beef to china. also issued guidance to allow u.s. electronic payment companies to obtain licenses so in other words, credit card companies like visa and master

card have a checklist to look at they're encouraged, though it is a question mark as to whether or not they get the licenses. the chinese have accepted applications for foreign firms to provide credit ratings services, so those are moodies and other agencies will be able to get that. also the chinese have issued bond underwriting licenses to the likes of citi and jpmorgan in terms of the letter of law, the chinese made their mark. however, what many people are saying is that the spirit of the law hasn't taken place and that there's so much more needs to be done for example, the biotech props are pending approval, and also u.s. demands that china reduce excess steel, greater access, give the u.s. better access to financial services, those issues are still very important and not

really addressed from the chinese perspective, they feel the u.s. hasn't done enough to ease the u.s. tech export restriction so a lot of big items that need to be hashed out because little items have been been completely worked out, there's some question as to how much progress they'll be able to make this week guys >> and quickly on the gdp growth, obviously coming in better than expected for china markets are down today what's the reason for negative reaction from the markets of that positive data >> well, most people at this stage believe the economy is going to continue to slow down and that all of the efforts by the authorities to try to reign in the property sector and to deleverage, derisk the financial sector are eventually going to effect the overall economic growth number. >> thanks for that shanghai market down 1.4%.

warning from elan musk, what he says is fundamental risk to the entire human race. and record weekend at wimbledon. sports highlights are ahead. here is today's national weather forecast from bill care ins. >> flash flooding occurred overnight around phoenix area, wind gust at the airport up to 62 miles per hour. that threat continues today, on the heels of deadly flash flooding this past weekend where nine people lost their lives flash flood watch for 6 million people thunderstorms are expected to be this afternoon into this evening. again, hit and miss but doesn't take much in arizona to get fast moving flash floods. severe weather threat, only two areas. mostly wind damage threat from up state new york through central pennsylvania and areas of new hampshire and then into areas of south dakota. at touise, the big story is the hehrgh the middle of the

country. more "worldwide exchange" when we come back if you could book a flight, then add a hotel, or car, or activity in one place and save, where would you go? ♪ expedia gives you the world in your hand, so you can see more of it. ♪ expedia.

your bbut as you get older,ing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.

welcome back to "worldwide exchange." i am courtney reagan with wilfred frost. look at u.s. futures we lost a little ground from the last half hour or so if the dow-jones opened, if would be five points higher, and nasdaq by four points. s&p 500 would slip ever so slightly if you look at what's going on

with the dollar and other currency, beginning of the week as well on friday, we see here that the euro is around 114. it is now below what is key resistance level we will watch that fairly closely here and the pound is something to watch, especially after the action last week >> broader dollar index losing 0.9% last week making headlines elan musk speaking out against artificial intelligence, addressing the national governors's association conference over the weekend. >> ai is a fundamental existential risk for human civilization i don't think people fully appreciate that. i have exposure to the very most cutting edge ai. and i think people should be really concerned about it. i keep sounding the alarm bell,

but until people see like robots going down the street killing people, like they don't know how to react because it seems so etherial. >> he called it more dangerous than nukes and certainly severe comments from someone that should know about this sort of thing. >> really strong comments. artificial intelligence can be powerful for good as well. as you'll find out >> exactly in sports news, south korea park won for the women shot her second straight five under 67 this is her first major title on the tour it was played at trump national golf club in new jersey and president trump was in attendance. from greens in the u.s. to grass courts of wimbledon, federer winning an eighth

championship >> wimbledon was always my favorite tournament, will always be my favorite tournament. and my heroes walked the grounds here, walked the courts here because of them, i think i became a better player, too. >> federer has won a record 19 grand slam titles in all what a legend. shame venus didn't win as well. >> i saw her final match >> great tournament as always. congrats to the winners, particularly mr. federer. coming up, today's top stories and roundup of global markets. >> and game of thrones fans are not happy with last night's premier. what has them lashing out on twitter this morning hope we're not going to reveal what happened in the episode, i haven't watched it yet producers, adjust that story if necessary. that's coming after the break.

♪ i love you, basement guest bathroom. your privacy makes you my number 1 place... ...to go number 2. i love you, but sometimes you stink. ♪ 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.

summer sizzler the wall street rally is red hot as investors gear up for a new week republicans hit the pause on the health care bill as senator john mccain recovers from surgery. live in washington with the latest. china's internet crackdown takes a new twist. which beloved children's character was black listed you're watching "worldwide

exchange" on cnbc. ♪ good morning welcome to "worldwide exchange" on cnbc. i am wilfred frost. >> i am courtney reagan in for sarah ice en >> good morning to everyone watching at home let's look at futures this morning. a decent day friday, up a half percent. nasdaq leading the high, up 2.6% within the s&p 500, best sector was tech up 3.8%. we are holding on, ten year treasury note. saw yields slip having had two weeks of yields rising prior to that slipped because of comments from janet yellen and softer retail sales and inflation data friday. we are back near crossover 2.31.

take a look what's going on overseas in asia the nikkei i closed for marine day holiday. we will see mixed action shanghai composite down 1.4%, despite second quarter gdp coming in above expectations at 6.9% retail sales and output are strong some doubt as to what's going to happen going forward with regards to potentially tighter regulation and slow down in financial innovation that may be dragging down some of the stocks overseas in asia if we can look at what's going on in europe, there's some action in brexit talks happening. britain prepares for that divorce to go through. you can see we are mostly lower, only a half percent to the down side for germany, which is the most sharply lower european market this morning. ftse 100 slightly to the up

side. oil prices which did have a positive week, up some 5%, but only the second positive week in the last seven 46.5 price of wti which is flat. broader dollar index did slip 0.9% last week, all of that coming friday. down 0.6% in light of data major players were bigger than the broader index. this morning as you can see, dollar is not doing too much has a little strength against the euro and pound and indeed against the yen but not too much gold prices, up over 1%. not doing too much up fractionally at 12.29. senate republicans delay action on the health care bill as senator john mccain recovers from surgery >> john mccain has had some

surgery to remove a blood clot above his left eye that means republicans simply don't have votes to repeal and replace obamacare or to move forward on their bill. the number two senate republican john cornyn explained what that means over the weekend >> we all wish john mccain a speedy recovery, need him in more ways than one but yes, i believe as soon as we have full contingent of senators that we will have that vote. it is important we do so >> the republicans currently have 52 votes in the senate. two republicans say they won't vote for this bill as it stands. that means they don't have any margin for error without john mccain's presumably yes vote they're in a tough situation in terms of passing that bill if anybody else on the republican side says they're against it, it could be impossible to move forward as one of president trump's key legislative agendas. meanwhile, at the white house today the president is focusing on made in america week, they're

showcasing products made in all 50 states. it is another one of the theme weeks the white house had to focus on legislation and priorities that effect his political base meanwhile, the president is tweeting very much about the russia situation, that's something on his mind, on the mind of a lot of people in washington here's the president's tweet over the weekend, complaining about some of what he sees as discrepancy in how he is treated. says hillary clinton can illegally get questions to the debate, delete 33,000 e-mails but my son don is being skornd by the news media. they're focusing on the meeting that don junior had last summer with a russian lawyer to offer russian government support in the form of information about hillary clinton. that story continuing to evolve and change through the week last week see where we go this week.

>> in terms of the health care issue and senator john mccain we wish a speedy recovery to, how long will he be out of action and seem more relaxed that the other 49 potential yeses are here to stay does this increase the possibility they can change minds? >> you're spot on. the longer it hangs out there, the more chance to pick it apart, find something unacceptable to some senators. they would like to vote if they feel they have the votes it is not clear they have the votes for now, but with anything like this, any delay can be a problem. already delayed in the senate at least once, pushed back august recess we will see where they go from here in terms of mccain's recovery, it is not clear, his office suggested he will be out this week, but some experts talking to media over the weekend suggested it could take weeks, plural, for recovery from this

type of surgery. remember, john mccain is over 80 years old. any surgery, recovery will take a little longer in that age bracket. >> ayman, thank you for that in corporate news, a fight for a board seat at proctor and gamble "the wall street journal" says peltz management will try to jump start lackluster sales growth make them the largest to face a proxy fight. they rejected request to name him to the board it is one of the biggest stakeholders, holding $3.3 billion of stock. you can see p and g shares slightly to the down side. turning to the wall street agenda, getting results from nine dow components and more than 60 companies. netflix out after close. later, goldman, sachs, j and j,

ibm, american express, visa, general electric empire manufacturing survey out today. tomorrow, import prices, home builder survey turning back to the markets, telecom is an underperformer this year. some are questioning if the sector should ever exist landon dowdy joins us with more. that's a big question. >> it is a big question. good morning the telecom sector is dying, made up of four components verizon, at&t, century link, level 3 communications, its very existence is being questioned. but could the companies be resurrected? senior analyst at standard and poors tells me it is not the bearing but remolding, use of base product as a group that changed drastically becoming a different tool for business and

sales. however, he says this is normal as technology changes. likely so with ma bell saw with the breakup in 1982. they added all 7 baby bells to the index. it evolved, same thing we see currently. we may see tech names move into the sector like google, he says modernizing of wire networks is where we may see knew entrants any small efforts could be consolidation into telecom giants ibm, microsoft and oracle are nontelecom companies most closely related to telecom companies. back to you. >> landon, thank you for that. telco was the worst last week as well time for top trending stories. kid rock now caitlyn jenner. she's considering a senate run in california.

the republican olympian an activist says she thought about getting into politics for awhile now. another interesting one to add to the kid rock story. >> pretty outspoken republican views. last night's season premier of game of thrones has fans buzzing, erupting in anger when they crashed during the premier. second year in a row the service went down as millions attempted to tune in it is not clear how many viewers were effected by the glitch. will ford wasn't, he watches at the end of seasons. >> i am glad that was the story. i was fearful they would reveal content of the episode obviously they should have had enough band width prepared talks to the fact how many were trying to watch it, why it crashed. it will no doubt do well. jodie whit kerr taking over. she will take on the role of dr.

who. that's the first time they had a female lead in the 54 year history. doctor who a pbig hit? >> i don't know anything about this i heard of it. >> seen this news over the weekend, big in the uk >> i heard of the show i don't know anything about the plot >> there you go. >> i am happy to do this pictures on miranda kerr's big day revealed photos of the model and snap chat founder's private wedding being officially released in the august issue of vogue magazine giving details on the dress and wedding ceremony only attended by 45 close family and friends next, winnie-the-pooh has been blacklisted the beloved bear hit with a chinese social media ban over

the weekend, featuring poo's name and gifts with his imagery moved. no official explanation has been given. suggested the crackdown related to comparison of winnie-the-pooh to president not sure what comparison was made. >> that's a far step there we go. president she delivered better growth, maybe with that given a pass. still to come. must reads, why republican joe scarborough thinks president trump is killing the republican party. as we head to break, let's check where oil is trading, we are higher by just a hair. 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. always discreet. for bladder leaks.

welcome back to "worldwide exchange." i am wilfred frost with courtney reagan my picks in "the washington post," titled trump is killing the republican party is penned by joe scarborough, msnbc hose and former u.s. representative said last week he is leaving the republican party writes political historians one die view him as an anomaly the wreckage of this man will break the party in pieces and lead to election of independent

thinkers no longer tethered to the polarized past when that day arrives, it will finally come to an end washington may begin to work again. picked this not because of his self congratulatory tone for his decision to leave the party, which it is if you read the whole thing, words in that conclusion you can pick up on, but because of the body of conclusion suggesting the reaction to trump for the republican party will lead to independent none two party system politicians moving forward, interesting take. we've had big reaction in certain european ways, macron destroying both main parties wonder if that will happen here, whether trump succeeds and continues or not whether we continue with a democrat versus republican balance in years to come joe scarborough's take, as i said, self congratulatory tone has interesting conclusions in

it >> that kind of change could be good my pick is in financial times. will u.s. retail's death be the next big short it goes through all of the ways retailers are under pressure from amazon to overabundance of stores and more, saying some hedge funds are looking at ways to profit by shorting retail stocks but doesn't identify which stocks still, points out hedge fund managers stress retail big short will be fundamentally different from the housing downturn, far more halting and slow, which makes it hard to carry out anything other than tactical opportunistic trades a crash won't bring systemic dangers like the subprime crisis, but there's an economic consequence. goldman, sachs estimates e-commerce requires 0.9 employees for million dollar of

sales, and the sector on course to win 100,000 jobs this year. that's interesting because you get so much focus on industries like coal, under this last political election look at retail and all the jobs lost there as fundamentally it changes. it's important to watch. may not be systemic failure like subprime crisis, but loss of jobs is significant. >> could be hugely significant as well as likes of amazon stocks take hold see what happens there worth the read in financial times. approaching top of the hour. getting ready for "squawk box. becky quick live with a look at what's coming up good morning, welcome back >> good morning, welcome back to you. haven't seen you since you have been back. good to see you. we have the markets sitting at record highs, not only for s&p 500 and dow but russell 2,000 and dow transports leads you to ask questions what it could mean.

katie stockton has been bullish on the market. she says there's an increasing likelihood that we could see a significant pull back in august. going to talk to her about all of those issues coming up. health care on the agenda, pushed back by mccain's absence. senator john bore os oh is on about what he sees in health care and what's happening in tax reform speaking to roger altman about those topics and glen hubbard, council of economic advisers, talking about those issues i don't know if you saw the comments by elan musk, expects all cars in the united states will be self driving within 20 years, you're not going to see steering wheels i don't know about you, that's hard to get my head around i love the idea of somebody who has children, i don't want them driving themselves, but as a

driver, really hard to think about not being able to drive any more i don't know how you think about that bob lutz is on he is going to talk about what he sees happening between the big three and between silicon valley when this plays out, former general motors executive. >> i have a feeling he will still be a proponent of steering wheels >> and axles and everything else. >> you drive can you imagine in ten years the idea that you're not driving any more >> that blows my mind. i like the control of driving. >> elan musk said ai is a threat to the human race. becky, look back to that in about ten minutes time. >> see you soon. coming up, lots of big earnings on tap. we will tell you what to wch ay tuned "worldwide exchange," cnbc their experience is coveted. their leadership is instinctive. they're experts in things you haven't heard of -

researchers of technologies that one day, you will. some call them the best of the best. some call them veterans. we call them our team.

for the never-before-seen two sided clean, just add water. one side deeply exfoliates the other gently smooths and a flexible body cleanser inside lathers for a close, complete clean. just hang your duo to dry after each use, for day-after-day of touchably soft skin. find your duo in the bodywash aisle. available in olay, old spice and ivory. welcome back to "worldwide

exchange." u.s. futures this morning are mixed at the moment. after a week we gained almost 2% for the nasdaq, 1% for the dow joining us, michelle gerard, chief u.s. economist >> good morning. >> start with the data friday. how disappointed were you? >> again, we're not seeing the inflation numbers accelerating like the fed would hope or beginning to turn up we're still seeing disinflation trends and unfortunately it is disappointing in terms of for the markets, it's a positive saying unfortunately the retail sales numbers are not more robust for the markets, with inflation staying low we're not worried about the fed feeling pressure to hike interest rates or think about getting aggressive it is a nice combination where the economy is ploding along,

not accelerating, but because inflation news is good, we aren't worried the fed can stand back and watch, doesn't feel the need to take action. >> how much do you think the retail sales numbers were effected by deflationary pricing. >> that should be a positive one of the things lower inflation numbers brought about is boost of real wages the pricing power, the amount you can buy with earnings has gone up. if anything, you would think that should be a positive. again in volume terms, nol nal terms, we look at it, can work against it you would be thinking consumers would take more advantage of the fact their purchasing power has gone up. that's what happens. we are seeing consumers act in a fairly cautious manner, carrying high levels of savings this is a result of what we have gone through coming out of the crisis they're spending but nobody is spending with abandon.

>> with all of last week's news, sum up what it means for the fed and the dollar. >> we can feel comfortable with the idea that there's no urgency. people were worried in june maybe they would step up, start their shrinking of balance sheet in july. no worries about that. they're taking their time, maybe change the balance sheet in september. i don't think they'll think about racing interest rates until december a long way away. depending how trends go, i think they will end up we're looking at a rate hike for six months time. again for markets, that's a welcome development. they'll be able to start the balance sheet and get that on track to wind it down. again, they can move gradually, ultimately what the fed wants to do. >> what are the economic ripple effects we should be on the lookout for with the health care bill, if it passes or doesn't. >> the biggest thing, i want to

get it behind us to focus on the tax story. from an economic standpoint, what we really need is make some progress on tax relief that the markets have been long waiting for. we need to get that beyond us to begin to look forward. from an economic standpoint, that's where the markets and everybody are waiting to see are we getting tax cuts that help with investment tax cuts have the potential to lift the economy out of the doldrums that it has been in. >> to reach that heralded 3% growth rate or -- >> i think we can get to it. i think we are growing two and a half without tax cuts. again, it is not great but at this stage 8 years into expansion isn't bad. if we could get something to spur business investment in particular, i don't think getting another half percent, especially plans that outburst

activity, that would be good >> earnings from black rock, black stone, netflix that's it. "squawk box" is next

good morning markets kicking off the week with the dow and s & p at record highs. full market rundown straight ahead. health care holdout. senate reform bill delayed as senator john mccain recovers from surgery a live report from washington. a new proxy fight, planning to take on proctor and gamble. monday, july 17, 2017. "squawk box" begins right now.

good morning, everybody. welcome to "squawk box" on cnbc. we are live from nasdaq market site in times square take a look at the equity futures. we are looking at the dow futures. s & p futures are relatively flat dow futures up 16 points the s&p 500 and the dow finished at record closes once again. nasdaq up by 8.5 technology stocks are the reason we cited for recent gains. overnight in asia, japan closed for holiday china reported economic growth 6.9% second quarter. that beat expectations factory output surged by 7.6% in june, fastest pace in three months retail sales topped expectations, rising 11% last month. the shanghai composite dow