republicans pull the plug on the healthcare bill. we're live in washington with the fallout. global markets immediately reacting to the news the u.s. dollar dropping to multi-month lows.trading day se. and netflix takes the crown, we'll tell you what's behind that big move coming up. it's tuesday, july 18, 2017, "worldwide exchange" is coming up right now ♪ good morning a warm welcome to "worldwide

exchange" on cnbc. i'm wilfred frost. >> i'm seema mody in for sara eisen. >> it feels like it's a thursday, but it's not >> tuesday >> exciting news afrnlgts lot happeni a lot happening. let look at markets this morning. that breaking news overnight senate republicans pulling their healthcare bill after failing to secure enough votes to pass it let's get straight to nbc's chris pollone in washington with all the details. >> reporter: good morning. you want to talk about timing. last night president trump had about eight members of congress over to the white house for dinner trying to get their support for the senate's plan to repeal and replace obamacare just as that dinner was breaking up, two senators from the republican party tweeted that they were opposed to the current bill in effect killing it. those two were senator mike lee of utah and senator jerry moran

of kansas. senator moran issued a statement describing why he opposed the bill saying the closed door process yielded the bcra, which fails to repeal the affordable care act or address healthcare's rising costs with the loss of those two votes, senate majority leader mitch mcconnell couldn't afford those two votes. he saw the writing on the wall president trump, as you might imagine, responded in kind a couple hours later on twitter saying that republicans should just repeal failing obamacare now and work on a new healthcare plan that will start from a clean slate. dems will join in. it looks like that's what republicans plan to do now senate majority leader mitch mcconnell saying we couldn't agree on the replacement part of obamacare. let's go for the repeal part first what they will try to do is they will try and pass just simply a repeal.

getting rid of owe cbamacare a l altogether it will be phased in and that will give congress time to come up with an adequate replacement. they were able to approve the -- the senate wasable to approve repeal of obamacare a couple years ago when prrm wesident ob was in office. now it may be harder to do obamacare has won some support from people it has helped, and a repeal could kick 32 million people off of healthcare and add to the deficit >> what does this mean for tax reform and the other items on the trump agenda >> it's a great question the reason why mitch mcconnell wanted to get it done this week and john mccain's illness in and surgery threw a monkey wrench in that plan. mcconnell has things he wants to

get to republicans want to get to tax reform they have to pass a budget with the shortened august recess coming up, time is running out now this gives them some cover the repeal vote is not guaranteed that could change things down the road as well >> chris, thank you very much for joining us >> sure. in other washington news, we are getting details on how the white house plans to renegotiate nafta. the president's pop trade representative says reducing trade deficits with canada and mexico is a priority the trump administration says it wants to remove unfair subsidies and market distorting practices by state-owned enterprises formal negotiations will begin in about a month let's look at what this means for markets. yesterday we were essentially flat after a strong week the week before. whilst this news out of washington hit the dollar, it has not hit equity markets

we are called higher by about 20 points for the dow s&p by 3 points, nasdaq by 19 points the nasdaq is leading the charge higher yesterday a boring session utilities the best sector, healthcare the worst even those moves were small, about a third of a percent in each direction dollar board has reacted it's reacted markedly to this news euro pushing through 1.15. kit juckes saying it could fupuh to 1.16. some other currencies moving quite significantly. the pound's move high hear been undone by uk data. cpi, 2.6% instead of 2.9% expected the pound has not taken part or continued to take part in that move higher against the dollar there is the dollar index, slipping 0.3%. the biggest mover, throw in some hawkish comments from rba on the other side of the bargain. the aussie dollar moved up 1.5%. generally a currency that's

moved a lot in face of the dollar weakness. it is the aussie dollar that has moved the most, nearly 4% over the past week. let's switch to asia markets were broadly weaker after the domestic markets closed lower here state side the hang seng up 0.3%. home prices came in better than expected that lifted sentiment. we did get the china growth data and retail sales, that came in better thanexpected. what was interested is how china did not participate in the rally. emerging stocks, best day since 20 15. >> the nikkei down the other one down a lot is the australian index, and the currencies, the big markets with free flowing currencies operating in the opposite. >> the sterling has been hit this morning on the back of disappointing uk inflation data. 2.6% for june.

if you look at how european markets are responding ftse 100 traying fla intrading t german dax down 0.4% french equity index down 0.1%. the big market mover is ecb policy meeting on thursday, mario draghi after those comments three weeks ago that the inflationary environment is improving, we'll see what that means for stimulus going forward. >> the euro moved a lot since then and above 115 oil prices -- ten-year yield 2.3% it slipped last week and it's remained around 2.3 yesterday and today. oil prices for you down about a percent yesterday. up about a half percent or just shy of that. 46.2 gold prices gained a half percent yesterday. up a bit last time i looked. they still are, 1235 shares of netflix are shooting higher after the

company reported monster growth in the second quarter. netflix says it added 5.2 million new subscribers, well above the 3.2 million expected most of that growth came from overseas on the earnings call, the ceo said a big bet on original content is paying off. >> anything notable boneyond 5 million net ads. we are just seeing that the rewards of doing great content focused on the quality of the service are paying off. >> netflix earned 15 cents a share last quarter a penny shy of estimates but revenues came in stronger than expected, up 10.7%. all down to the subs as opposed to the earnings. people looking at what this means for the long-term for the company as opposed to the short-term earnings. amazing what they delivered in terms of international

subscriber growth as opposed to the domestic story that's something people were wondering, could it have transitioned not reaching saturation in the u.s. but hitting the growth targets >> that's always the question for these tech companies, can they expand the footprint into the mu markets and winew market they be viable that's one thing about bollywood, using bollywood actors and finding profit. bank of america, goldman sachs, johnson & johnson, lockheed martin, united health, schwab, hurley and ibm will be reporting today. you are watching the banks what do we expect from goldman and bank of america. >> goldman, 65% of the business is capital markets they're up against it. we saw from citi and jpmorgan that trading was down. if you narrow in on trading, for jpmorgan it was down 14% year on

year, citi group 7%. all eyes on goldman sachs, how they do relative to those two. it will definitely be down if it's down more than those and significantly more, it's a second quarter in a row where they missed relative to the others on trading. last quarter they had that big miss for bank of america, it's interesting to see, trading will be down, they guided 10% to 12% down probably somewhere in between the citi and jpmorgan performance. but they're finally delivering on operating leverage and there was a difference between citi and jpmorgan jpmorgan slightly missed on that area bank of america will focus to see how they're doing in that core consumer lending f that interest rate hike picture is playing in for them, in a way it didn't do for jpmorgan >> on the agenda, a few key pieces of economic data. june import prices at 8:30 a.m.

eastern. it looks like apple could be in trouble new reports say the release of the apple i phone 8, 7s and 7plus will be delayed. production of the next generation will not start until november or december the flagship redesigned oled iphone will only ship in small volumes due to low yield rates at apple plants. the fda approved puma's breast cancer drug that lowers the risk of the disease returning after treatment. puma's stock has doubled since may. novartis expecting a rise in second quarter profit beating estimates. they're sticking to their forecast that sale also grow again in 2018. it's lifting the outlook for its eye care business which the ceo talked about earlier today on cnbc >> business seems to be turning.

i've said at beginning of this year that we're reviewing that business for all options including a capital markets exit you can imagine that the business would have to show good progression for us to be able to execute a capital markets exit so i think the turn on the business now creates full optionality. we just need to keep that momentum going sfwhoo . shares of toshiba jumping nearly 20% after a u.s. court did not grant western digital an immediate injunction to block the sale of the company's memory chip business. the court ruling was friday, but japan's market was closed yesterday for a national holiday. mattel's long-time finance chief is stepping down kevin farr is leaving after 17 years as cfo this a month after mattel slashed its dividend to pay for

its restructuring. and sysco says bill delaney will step down he will stay on as adviser through next year. shares of select comfort are falling today. the mattressmaker reporting a second quarter loss and revenue missing forecasts. the company cites an inventory shortage and a shift in deliveries in the third quarter. still ahead a round up of the big international stories breaking overnight including the big change, is that could be coming to nafta. plus why the campaign to stop brexit is gaining steam. first another check on european trade we are mixed at this point the ftse 100 is the standout "worldwide exchange" will be right back for your heart...

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welcome back to "worldwide exchange." i'm wilfred frost along with seema mody futures pointing a bit higher today after a flat session yesterday. we didn't see too much action during the day since then we have seen the healthcare bill from the republicans be dropped that's seen a big reaction in the dollar market but not so much in equity markets european trade for you, which was strong last week, mixed yesterday. it's mixed today as well germany suffering by about half a percent because of a stronger

euro president trump is threatening sanctions against venezuela if that nation forms a constitutional assembly. president trump tweeting last night the united states will not stand by as venezuela krucrumbls if the regime imposes its constituent assembly on jewel 30th, the united states will take strong actions. brexit talks continue today. the financial times is out with a new column, the democrat ic democratic case for stopping brexit by gideon rachman is the crux of the argument despite the vote being a year or

so ago, enough new information has come to light that is justifying another chance for the people to speak, almost in a more educated fashion than they were given a chance to do so last year? >> yes, i think so i think when the vote was taken, the issue was extremely complex, but you could see essentially the majority, which was a slim majority, 52% to leave, had -- now appear to be incompatible goals. one group prioritized controlling immigration and the making of laws in the uk and are willing to pay an economic price. another group prioritized keeping frictionless trade with the eu they were brought together because they were told there was no choice to be made i think it's apparent even only a few months into the negotiations that there is a choice to be made. that the brexit was sold on a false bill of goods, and it's worth returning at the end of

the process or before that and saying to people are you sure you want to go ahead with this >> you mentioned following the 1975 uk referendum on european membership which britain voted to stay in, that a new vote in 2016 was justified because things had fundamentally changed over that 40-year period in between. and indeed the eu had changed drastically over that period perhaps you add to the fact that the electorate changed have things changed enough compared to that 41-year period in the past 31 months? do you need to see brexit executed four or five years past and then allow people to decide if they want to rejoin or not? >> it's a fair question. there's a difference between 40 years and two years. there's a question of new information that essentially we do know a lot more now about ba wh what is possible with brexit than we did. the trouble with waiting 40 years or five years is if you

think the damage from leaving brexit is possibly irreparable and that the process is irreversible, we don't have that luxury if it is going to be stopped, it has to be sopped before britain formally leaves. >> you point out one of the most famous bytes from prime minister theresa may is brexit means brexit you also pose the question on whether a second referendum is even possible what are your thoughts if so, when would it happen? >> it is a big political question one reason i wrote the article is because many people are nervous to broach the subject because they feel, it seems, like we're not respecting the will of the people so far the only people out of politics, tony flair, the former deputy prime minister are saying, let's have a second referendum and try to stop brexit even remainders tend to be saying, let's go for the softest possible brexit.

let's se let's keep close to the eu, but i think soft brexit has huge disadvantages. somebody has to make the case, this process is not inevitable, and a democratic vote can be undone by another democratic vote that's the whole thing about our system when it could happen, it's hard to tell. events are unpredictable the most obvious point is let's say we negotiate a new deal, if as i suspect it's not attractive, you put it then to the vote of the public and say we have not left yet do you want to take the new deal or stick with what we got or alternatively, if there was a revolution in domestic politics, politics are unstable now, it's possible you could have a parliamentary majority to go for a second referendum. but i think that's less likely >> guidon, stepping away from the possibility of a second referendum or not what impact has trump's election had on peoples view of brexit in the uk

europeans view of president trump is perhaps less positive than it could be, whether that's a correct or incorrect opinion the two are somewhat bracketed together has the election of president trump soured tbrexit >> in some ways, the election of trump is being seized upon by the pro brexiters. obama said priten would britaine 5:t5at the back of the queue, but trump has a lot lack of support in th. people are bracketing trump and brexit together and saying is this the company we want to keep aren't we closer to germany and

france politically thank you very much for joining us still ahead what do taylor swift, a pup named storm and big bird have in common? they're all trending today we'll tell you why when "worldwide exchange" returns

welcome back to "worldwide exchange." i'm wilfred frost along with seema mody let's look at the market action. the big story is the dollar

moving lower on the back of that news that republicans in the senate had to drop the repeal and replace of obamacare the dollar is slipping 0.6% against the euro decent move there. also moving down about 0.3% against the yen. the biggest mover is the aussie dollar up 1.5% rba minutes came out this morning. the pound is softer. it was up about half percent it's down 0.2% because of soft cpi data out of the uk yuf sofft that move. futures are basically flat, up about 0.10% for the nasdaq coming off a day for flat moves yesterday. >> still ahead on the show, a round up of today's top stories including the big news that broke overnight on healthcare. we're live in d.c. and unbreakable netflix. more on the monster quarter for e coanthmpy.

"worldwide exchange" will be right back leadership is instinc. 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. tha...oh, burnt-on gravy?ie. ...gotta rinse that. nope. no way. nada. really? dish issues? throw it all in. new cascade platinum powers through... even burnt-on gravy. nice. cascade.

senate republicans scrap their healthcare bill after failing to secure the votes. we're live in washington with the fallout ahead. the u.s. dollar taking a big leg lower on the back of that news the early more ketaction straight ahead. and netflix saw a record high after reporting monster growth last quarter. full details ahead us tuesday, july 18th.

you're watching "worldwide exchange" on cnbc. ♪ good morning a warm welcome to "worldwide exchange." i'm wilfred frost. >> i'm seema mody in for sara eisen. let's get straight to the markets in just a moment actually first the breaking news overnight. senate republicans pulling their healthcare bill after failing to secure enough votes to pass it let's get to chris pollone in washington he has all the details good morning >> good morning. senate republican leadership had to know they were working with razor thin margins, but perhaps didn't see that the plan to replace and repeal obama care would collapse so quickly. but it did last night. just as president trump was wrapping up dinner with eight key republicans trying to win their support for that plan, two republican senators tweeted out that they were voting against

the plan, mike lee of utah and jerry moran of kansas both issuing statements look at what moran had to say about the bill basically objecting to it on a conservative basis calling it a closed door process which failed to repeal the affordable care act or address healthcare's rising costs with lee and moran out, that meant that mitch mcconnellwas well below the threshold he would need in order to move forward with the senate's current bill so mcconnell said we are not going to do that president trump weighed in last night, take a look at his tweet. he said republicans should just repeal failing obamacare now and work on a new healthcare plan that will start from a clean slate. dems will join in. that appears to be what the republicans plan to do mcconnell basically put the ball back in conservative republicans

court saying over the next few days in a short order he plans to have the senate vote on just a repeal bill without replacement. if that were to pass, it would phase obama care out over two years and would allow congress to work on a replacement but that's not going to be an easy prospect, even to get that clean repeal you might remember they have to get to 50 votes which is tough to do in the senate. two years ago when the congressional budget office scored a clean repeal they estimated 30 to 32 million americans would lose health insurance coverage and it would add 137 billion to the deficit. some members of the senate would be wary of doing something like that in the eyes of the core base support voter who is hurting more president trump or traditional senate mainstream republicans who failed to pass this bill

>> you know, i think we've seen in the past that it's very hard for donald trump's hard core supporters to be angry with him about anything his poll numbers have remained some what constant depending on what happens there hasn't been movement so you have to say members of congress are feeling the heat more. they're having the town hall meetings over the course of the summer from angry constituents obamacare has gotten more popular and people are becoming more vocal about having healthcare for the first time. they're the ones with their feet to the fire at this point. the president, his reelection is a ways away. >> chris pollone, thank you very much we are getting new details on how the white house plans to renegotiate nafta. the president's top trade representative says reducing trade deficits with canada and mexico is a top priority

the trump administration also says it wants to remove unfair subsidies and market disporting practices by state-owned enterprises. formal negotiations to rewrite nafta are set to begin in about a month. let's get you set up for your global trade ahead with a look at futures we are higher in premarket trade. u.s. policy will certainly be a topic of discussion given this news of a collapse in the healthcare bill what it means for president trump's pro business agenda, specifically on tax reform looking at the dow jones up 9 points nasdaq higher by 19. yesterday's performance, the nasdaq saw its seventh positive session. the dow breaking its four-day winning streak the big name to watch today is ib mshm and goldman sachs among others the currency market is where we're seeing an outsized

reaction to the nelt care bill collapse the u.s. dollar trading at aen a ten-month low. that's weighing on european equities in early trade. the yen is stronger at 112 against the dollar pound at 1.30. softer inflation data weighing on the pound >> the strength of various ku t currencies against the dollar weighing on equities the biggest movie, the aussie dollar up by 1.5%, has meant the asx is down about 1% the rest of asia doing all right. european trade, again, the strongly negatively correlated exporters like germany suffering. the ftse 100 basically flat. the pound itself not stronger against the dollar

>> disappointing earnings from ericsson and lufthansa weighing on sentiment as well let's look at treasuries the u.s. ten-year bond yielding at 2.3%, oil always an interesting story. wti yesterday falling 1% breaking its five-day winning streak today we're looking at a positive session ice brent crude at 4 $8.60 wti at $46.16. lastly looking at gold, which gains about a half percent in yesterday's session. we are higher by $2. on to our top corporate story. shares of netflix shooting higher after monster growth in the second quarter netflix says it added 5.2 million new subscribers. well above the 3.2 million estimated by analysts. most of that growth coming from overseas netfl netflix's ceo said the company's big bet on original content is paying off >> anything notable beyond 5 million net ads in q2, all-time

record for q2s up from q1. notable beyond that. i think we're just seeing that the rewards of doing great content focused on the quality of the service are paying off. >> in terms of the financials, netflix earned 15 cents a share last quarter a penny shy of estimates revenues came in stronger than expected up 11% in the premarket. shares reacting to subs growth long-term picture rather than the earnings picture and the short-term valuations are stretched, but with that sub growth exciting f future. apple could be in trouble. ny reports from the economic daily news say the release of iphone8 and shipments of the 77s

and 7 plus will be delayed production of the next generation will not start until november or december the flagship redesigned oled iphone will only ship in small volumes this year due to low yield rates at apple plants. shares of bnp paribas are slipping the french bank agreed to pay a fine as a settlement with the federal reserve over allegations that employees manipulated currency markets from 2007 to 2013 all employees involved have been fired or disciplined. rio tinto is scaling back its outlook for iron ore outlooks this year the production in the first half of the year was disrupted by wet weather in australia and railroad repairs ericsson lower in europe today. the company reporting a bigger than expected second quarter loss it's down 11% in swedish trade. time for our top trending stories. the internet is buzzing over a retracted claim about taylor

swift. rumors began swirling yesterday afternoon when splash released a photo of two of taylor's bodyguards carrying a giant black suitcase out of her new york apartment and the caption said the pop star was being transported inside the suitcase. this after months of questions about her whereabouts. >> this is outrageous. who would hide in a box. plus if anyone didn't know, taylor swift is 5'10" 5'11", she's tall she can't fit in the box >> i don't know if we can see the box picture again, it's a big box. >> it doesn't matter not big enough for a human >> i could fit in that if necessary. >> we know she's taking a break from public life >> if that was me in there, you would see those men struggling a bit more 220 pounds it would be a tougher --

>> how tall are you? >> 6'5". i think i could fit in that. plausibly she could have gotten in the box >> realistically it doesn't make sense. another top trending story fiat chrysler teaming up with session my street for a year-long sponsorship deal muppets will be featured in online advertising videos for the pacifica minivan this is the first time a "sesame street" character will appear in an ad since big bird in the 1990s. >> i don't get this. >> this is fiat chrysler's push into the family oriented audience >> does a parent think that the kids like "sesame street," therefore they'll like chrysler minivans >> it's more about the parents watching "sesame street" along with the kids who will say this looks like a good minivan. >> do you think? >> you have to look at your market segment

families are watching. >> but the kids are not deciding which car to buy >> but the parents are typically watching the show with the kids. >> we'll see let's see if it leads to a jump in sales a feel-good viral video. check out this footage of a dog coming to the rescue of a dear drowning off the shores of long island the pictures sending social media into a frenzy. storm jumped into the long island sound, swam towards the fawn a paddled the dee back to safety it is worth a watch. >> animal instincts. >> i wonder how the deer ended up in the water. >> not sure. the dog came to the rescue >> not big swimmers. now to sports, get your checkbooks out the owner of the rockets is putting the team up for sale leslie alexander bought the nba franchise in 1993 for 85 million. forbes values the rockets at

under 1$1.7 billion with revenus of 244 million interest in oeng the rowning th may not be limited to the u.s. houston is the top team in asia because of the popularity of yao ming who played 9 years for the rockets. >> you have 1.7 billion? it would be fun to own a sports team i would get arsenal. >> cricket or -- >> arsenal soccer club one day >> i would make a bid for the trailblazers, if i could oregon trailblazers. >> fine. portland, oregon, born and raised. today's must-reads are straight ahead. and another look at what's happening in europe. mixed day of trade the dax down a half percent. the euro trade at the highs of the year 115 against the dollar ftse 100 flat at this moment

we'll rhtbeig back.

good morning welcome back to "worldwide exchange" to all our viewers, especially those in tokyo. time for our must-read stories my pick is in the "wall street journal" what macron sees in trump. the columnist writing a key motivation was mr. macron's need to fend off characterization that germany is france's parole

officer inside the eu. berlin's perceived role is pronouncing whether the french achieve the economic reforms needed to regain the status of a stable leader in europe. so capitalizing on the relationship between germany and the u.s. and with brexit coming, i can be the leader and we can be the nation that brings the two together, and commending president macron for highlighting that tact just to the tone of g20 and nato meetings >> 25-secondhand shake, a record >> the original one. my pick in the "wall street journal," lula and brazil's progress the editorial board at the "wall street journal" writing the developing nation of brazil has been putting its legal system to

an extreme stress test impea impeaching one former president, indicting the current one and late week convicting former president lula da silva of corruption even as he plans to run for office again in a country like brazil, corruption is rampant, because step forward potentially the question is whether temer will be empeached. at this point that doesn't seem like it will happen. >> not making lighthearted of serious politics, one country i would not wanted to be a politician is brazil even if you're in office you can be impeached >> that's because they're involved in corruption and corrupt acts >> it seems that way but it seems impossible to shake it off even if you achieved great things like lula certainly did. maybe there was corruption, but it seems difficult and a lot of political motivation behind some of these things. citi invoking "game of thrones" in its latest research note why the big bank says winter may

be coming for the american consumer any excuse to throw in "game of thrones" references. we'll discuss the details of that in a couple of minutes. [car tires screech] [bell rings]

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welcome back to "worldwide exchange." we're approaching the top of the hour the team is getting ready for "squawk box. becky quick has a look at what's coming up. >> good morning. obviously we're watching the markets closely. the nasdaq yesterday finished at another gain it was the seventh day in a row we've seen gains for the nasdaq if we see another gain today that will be eight days in a row and the first time that's happened since february of 2015. we have a lot of things coming up when it comes to earnings there are three dow components that will be reporting we have goldman sachs, johnson & johnson and united healthcare all reporting. plus listen to this flood of earnings bank of america, charles schwab, harley davidson, lockheed

martin, td ameritrade. >> and goldman sachs >> goldman sachs dow component you weren't listening. >> my bad. >> and we will be talking about media all morning long the guest host today is ben leerer, co-founder of thrillest, with group nine media he will talk to us about the new media issues they're seeing. he's bringing on his father, the co-founder of the huffington poegs, whi post, the chairman of buzzfeed sits on the board of blade and viacom together they both work at leer hippo ventures they have invested in over 300 companies, including plated we'll talk about all those issues and we have david zasloff, chairman of discovery. we have media, venture capital

earnings a busy three hours >> we look forward to it i'll join you for bank earnings, eight minutes to go until "squawk box. if you are just waking up. senate republicans pulled their healthcare bill after two more gop lawmakers came out against it a big move in the dollar on the back of that news, but not a move in fight chorutures which at this hour let's dits cuscuss what thi means for the futures. the latest news overnight perhaps more pressing. big reaction in the dollar but not in the equity markets to this washington lawmaking news judge for us those two reactions from the various markets and if they're fair >> maybe we should be talking "game of thrones." this has been a challenging

xwri issue for the house and senate equity markets are clearly focused on earnings. all the trump trades, high tax rate companies have rolled over. all those things have gone away. it's about earnings. the dollar weakens, it does provide more support and i say a little bit more support to the earnings story. more challenging in europe, but better for the u.s. earnings story. i think that's why the market has not priced in much on the tru trump effect anymore, and it's pricing in earnings. there's going to be a lot of attention. you had a big media company last night. big attention on that one. investors are not that excited about what's going on in washington they don't expect much if anything happens in washington, it's a positive. >> the collapse of the healthcare bill, the big take away for many wall street analysts is this will impact

when tax reform reaches corporate america. how will this impact corporate america? the companies that have been anticipating tax reform, making changes to the balance sheet on the anticipation of this tax break coming >> i don't believe that's true, that corporations have made big decisions around that. they just don't know what's happening. one area within corporate tax reform is interest rate dedublgdeduc deductibdeduc deductib deductibdeduc deductib deductibdeduc deductib deductible, everybody is focused on will there be a border tax. i'm res convinless convinced oft argument when we do our polls asking what they're thinking, most don't think there will be tax reform until the first half of next year any way that's not where 60% of

investors minds are. >> you have written winter may be coming but so is john snow. so what do you mean by all of that >> there's been a dichotomy between what we've seen in terms of consumer sentiment versus consumer spending. sentiment being stronger than the spending activity. we wanted to address two or three things in there. one is the lack of understanding amongst american consumers or about the american consumer. i always joke around i didn't understand the american consumer until i married one. fortunately she's not watching the notion that an average american consumer -- there's vast differences that's one thing you have to think about. the second thing to think about is 53% of gdp is consumer

spending the way you and i think about it vacations, coffees, restaurants, clothing, et cetera. and you hear two-thirds of the economy is spending. the difference is healthcare and more than half of that today is government spending bizarrely reported as u.s. consumer spending so people don't understand the u.s. consumer in general >> 30 seconds left your top picks ahead of earnings season >> we like tech -- we don't like tech across the board. there's a couple areas we like media gaming within the consumer sector. we do like financials continuously we have a couple interesting ones in terms of capital goods and healthcare equipment and services it's being more targeted >> great to see you. thanks for joining us. >> thank you >> that's it for "worldwide exchange." focused on earnings?

>> goldman sachs >> and bank of america at 6:45 netflix up 10% in the premarket. that's it for "worldwide exchange." "squawk box" is next ♪ ♪ ♪ ♪

good morning the senate healthcare reform bill died last night the death confirmed by twitter or on twitter by a couple of senators, mike lee, jerry moran. it is survived by a new proposal for a simple repeal of obamacare. thumbs up shg, thumbs down. a busy morning for earnings will drive the trading day markets are up after this does it mean tax reform comes quicker? markets are immune to a lot. but earnings do matter we'll bring you reports from bank of america, johnson & johnson, goldman sachs and many more plus netflix shares soaring to

new highs. the market cap of this company is getting up to 80 billion. the company's subscriber numbers obliterating wall street forecasts. it's tuesday, july 18, 2017, can man really swim against a shark? we'll talk about that, too "squawk box" begins now. live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box." we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's look at the u.s. equity futures. things are in the green, but the dow futures indicated up by 23 points z s&p futures up by 3.5. both closing barely in negative territory yesterday. nasdaq is up by 21 points. the nasdaq was up yesterday for