zblunchts the fed in focus as it kicks off a meeting. get ready for another influx of earnings and multiple dow components set to report michael kohrs is buying jimmy chu. the full details coming up >> and we're live in washington as senator john mccain returns to town for a critical vote on health care. it's tuesday, july 25th, 2017, and worldwide exchange begins right now.

good morning a warm welcome from cnbc >> let's get straight to the global market picture today. it's an underwhelming session. the s&p down .1% the in a case did outperform, and it was up .3%. financials are the best sector they're up slightly. 9 our 11 sectors were down st elco is the worst performer fall bet reporting better than expected earnings. the company said second quarter profits took a hit the google parent also reporting a 23% drop in its click metric analysts reaction in just a few

moments. as there has been much discussion after the bell last night and this morning, down 3%. we'll discuss that in just a minute >> let's get a check on the rest of the world before you move on to more in depth look at alphabet asia mostly lower overnight. a lot of the sentiment still focused on what's going on here in the united states in d.c. the fed begins its two-day meeting today. the dollar, of course, also trading around those 13-month lows, and that's been a lot of the focus in asia. you can see the nikkei down just a hair the kospi down more sharply. the hang seng did buck the trend, but ever so slightly higher we can take a look at what's going on in europe yesterday european markets closed mixed we know the automakers took a hit on the collusion or the alleged collusion headlines that were crossing. you can see, though, higher across the board in europe today, the ftse 100 higher by almost .75%. >> we should say that the business sentiment was affected. also a frent which the ecb

a classic repeat is what we saw a few weeks ago when mario draghi he sends out other members to offset that. that's what the ecb has done this morning let's have a look. at any time really much movement in the dollar today. you can see that the euro and the pound are slightly higher against the dollar the yen, though, is slightly weaker treasury note, we did see the yields pick up a little bit yesterday. still below 2.3% 2.6% oil prices are up over a percent. they're laugh a percent today. that's a slide in oil prices that we saw at the start of the month behind us now, but we're still not close to 50. we're at 46.8. oil prices to round things off flat yesterday and just a little lower today to price at $1,252 down .2% now to the retail world. michael kors is buying jimmy chew for $1.2 billion.

kors will pay roughly $3 per share in cash, and that represents a 36% premium to jim a chu's share price before it announced it was up for sale there's been some speculation for some time that michael kors may be among the bidding partners we know for sure that was the case jimmy cho is a high-end luxury shoemaker in london. it is controlled by the institutional holder jab luxury. coach bought stewart weissman, which is a high-end shoe play back in 2015 for about $574 million. an interesting move here for michael kors the share price has suffered after there was a big creative expansion and then over exposure, according to some. we'll see exactly what happens here and how the shareholders sort of treat this you can see jimmy choo shares up about 17%. right. back to earnings state-side.

alphabet shares are trading lower right now. the company reporting a steep drop in second quarter profits due to a massive anti-trust fine for e.u. regulators. the google parent reporting a 23% drop in the click metric joining us now james equity analyst. james, good morning to you thanks very much for joining us. i mean, everyone citing this fine from the e.u. is the reason why the shares are up, and we knew about the fines why exactly has it led to such a decline in the share price around 3%? >> sure, good morning. i would think before that what we saw from the quarter is that the underlying demand for google services and google advertising from brands and advertisers remains as strong as can be. we saw brand scrutinizing and pulling money away from google and you are seeing an acc acceleration in the paid click numbers of 52% corresponding decrease in pricing as the shift to mobile

of 23% as we've seen for a while now. no surprise there. as far as the stock price, i would attribute that to the rising traffic acquisition costs and increasing amount of revenue comes from partners, which in turn, comes associated with a lower marge you know that's causing them a chance to grow slower in the gross revenue number, and that's drawing scrutiny here. >> james, we're talking about google specifically. amazon is being used for business-related products. >> that's a good question. i think amazon poses a risk to the entire advertising community. not just google, but the entire

community as we look forward, and we're certainly seeing successes, and even in our talks with advertisers and agencies, it dollars are starting to be tested there ultimately i think google's prowess and artificial intelligence, machine learning, and the ability to predict preferences and interests and what exactly that you want, i think, it's second to none, and we're seeing that exactly in the demand side of the numbers for the services in q2 >> james, remind us of what your recommendation on the stock is and price target >> still buy rated at $1,050 >> thank you for joining us this morning. >> thank you >>. >> now to politics arizona senator john mccain will make his return to work today after announcing just last week that he is battling an aggressive form of brain cancer. his office issuing a statement saying health care reform will be at the top of his agenda. yesterday afternoon president trump targeted senate republicans in a speech pushing

to repeal and replace is the affordable care act. >> every republican running for office promised immediate relief from this disastrous law we as a party must fulfill that solemn promise to the voters of this country to repeal and replace. what they've been saying for the last seven years but so far senate republicans have not done their job in ending the obama care nightmare. >> there will be a key procedural vote in the senate today. there's no indication, though, on how mccain plans to sign. president trump's son-in-law jared kushner will go to capitol hill today to answer questions from the house intelligence committee in a closed door session. after facing a grilling on the senate side, kushner came out andpublicly denied that he colluded with russia during the 2016 presidential election >> let me be very clear, i did not collude with russia, nor do

i know of anyone else in the campaign who did so. i had no improper contacts i have not relied on russian funds for my businesses. i have been fully transparent in providing all requested information. >> he also dismissed the notion that russia could be responsible for president trump's victory, saying he won because he ran a smarter campaign on today's wall street agenda the earnings reports are starting to come fast and furious, biogen, caterpillar, dupont, eli lily, general motors, mcdonald's, and united technologies are all out before the opening bell after the close, we hear from amgen, at&t, texas instruments, chipolte and u.s. steel. there's a pair of economic reports as well this morning the s&p kay shiler home price index, and july consumer confidence plus, the fed begins a two-day policy meeting a decision is due tomorrow at 2:00 p.m. eastern time >> also, have a citigroup

investor day today, which is an undue amount of focus given that it's come so soon after we've heard from the company >> it's about an a long time >> a big outlook in terms of where they want to push the focus of the company, which we expect to be a traditional banking, consumer banking of the company. we'll hear from them later today. softbank making a big bet on uber here are the details of that good morning >> good morning. softbank has approached uber by taking a multi-billion dollar stake in the company that's according to the "wall street journal". it would be the latest bet on the i'd-sharing market the japanese tech titan has already invested in singapore's grab taxi, india's ola, and china's dd -- sources tell "the journal" the deal won't be finalized until uber hires a new ceo. it's a process that is weeks away softbank is up 20% year-to-date

and up in early trading. back to you. >> thank you very much the stocks to watch today, there is more, we know, it's a really big week for earnings, and at darko petroleum a wider than reported loss it's cutting its capital spending because of lower oil prices it's a first major u.s. oil producer to do so. the revenue missed the revenue is also forecasting fourth quarter results below analyst estimates. shares are down almost 10% and swiss transportation reporting second quarter profits that beat wall street's forecast still, shares are indicated higher by 2% early this morning. more stocks to watch the chip maker is issuing positive guidance. it's up about 2.8%

akzo nobel cites weak demand and high costs for raw materials akzo says its chairman will resign at the end of his terminix april it's down nearly a percent facebook will crack down on users that share prioritied votes without permission sorts three announced the deal on its website, and it's not been disclosed, but reports say it's raised just $4 million in venture capital. funding down 0.4%. why poultry has post-breakfast trade talks between the u.s. and u.k. >> speaking of brexit, one retailer just told jim cramer, there's trouble inoynd tla wrash he is pointing his finger at the brexit we'll have exclusive comments when worldwide exchange comes back stick with us. introducing olay duo body cleanser.

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yeah, and i can watch thee bgame with directv now.? oh, sorry, most broadcast and sports channels aren't included. and you can only stream on two devices at once.

this is fun, we're having fun. yeah, we are. no, you're not jimmy. don't let directv now limit your entertainment. xfinity gives you more to stream to more screens. welcome back to "worldwide exchange." let's get up to speed on the market action. yesterday we saw a slightly mixed session. the nasdaq moved higher. a busy week for tech earnings. that was a record close. the other two indexes were just negative nine out of 11 sectors overall were down. financials, the best form up only 0.3%. this morning, as can you see, we've got slight gains in the dow and s&p. the nasdaq reversing its market lead out of the three. it is down slightly. very much down because of google's alphabet earnings last

night, which disappointed alphabet down nearly 3% in premarket. 46.85% that oil price slide we saw at the start of the month now distant, but not completely forgotten. >> that's right. thanks to some of the headlines out of the opec meeting. >> the toy maker has a brexit problem even though it's strong overseas >> our overall international business was up 6% our sell-through in international markets in europe was up double digits about 15%. latin america was up asia pacific was up 18% in revenues we're seeing great growth in china. we're seeing great growth in russia we have a bit of an issue in the u.k. around the brexit and consumer and retailer sentiment. similarly in brazil. that does not have an impact on

the overall regional performance or international performance >> hasbro fell nearly 10% in yesterday's regular session after the 20maker reported what many analysts call a low quality beat on results. shares up 1. % this morning. we should say the hasbro sales have run up about 40% to the year in other brexit related news british negotiators are due for a second day of talks. today they're working on laying the ground work for a new trade deal after the u.k. leaves the e.u. james, good morning to you thank you very much for joining us the first question i want to ask is what ability does liam fox, the british international trade secretary, have to start negotiating a fresh trade deal given that the exit from the e.u. hasn't been completed yet >> at this moment he has very little, if any, ability, because, as you imply, the u.k. can't find any free trade deals

with non-e.u. states until it has left the european union in march 2019 mr. fox is able to do some general talking about the possible scope of a deal, but with certainly nowhere near signing anything, and there are deep uncertainties as well about the future u.k.-e.u. trading relationship a lot of ub certainty around this >> james, we sort of teased our viewers earlier about the poultry debate and how the cheap u.s. chicken import is a big focus for some of these discussions. i have sort of a two-part question we want to talk about that, and also, doesn't the united states specifically have a bigger hand when it comes to negotiations?

getting better access for u.s. agricultural products to the u.k. will be absolutely essential. the fact here is that the u.s. produces chicken, manufacturers chicken through much cheaper methods using chlorine processes, which are not legal in the e.u. and which have not been used in the u.k., and the debate to be had in britain about whether we would allow that to happen, whether that's the price the british would be prepared to pay for that kind of deal, and, yes, on your second point, generally the u.s. does have a much stronger hand. it has a very substantial set of free trade negotiators the british have not been doing any free trade deals as a separate country since they joined the e.u. in 1973. the advantages to the americans are enormous >> james, thanks for that perspective. james on the poultry debate. chicken does taste better in the u.k. >> it does >> yes >> because you don't have the chlorine wash process? >> i didn't know about why

>> i didn't know that, and i kind of wish i didn't. >> exactly enough aboutic whichen for now still ahead, too late to say sorry? well, justin bieber fans are upset today. trending stories are coming up >> i wish you were just saying that first, as we head to break, here's today's national whether forecast from nbc's bill karins. >> good tuesday morning to you, courtney and will fred the story across the country will be storms in the next few days we will see significant wind damage if that happens today, most likely it's going to be in areas in minnesota and also south dakota, and some of that could extend to the northern wisconsin. five million people are at risk. maybe oon isolated tornado i don't think we're going to see too many then tomorrow the same storm system pushes to the south now we start to add a lot of big cities in the midwest. 24 million people at risk in wednesday. again, it's a huge area from iowa, southern wisconsin, northern illinois, and also a portion there of the great lakes. the other story out there, it's cool this morning in the northeast and portions of the great lakes. have that jacket just for this morning. then the heat is out in the

middle of the country and that continues into tomorw, arond then it feels more like summer in the northeast come tomorrow afternoon. that's your business travel forecast more worldwide exchange when we come back. this is the new guy? hello, my name is watson. you know wine, huh? i know that you should check vineyard block 12. block 12? my analysis of satellite imagery shows it would benefit from decreased irrigation. i was wondering about that. easy boy. nice doggy. what do you think? not bad.

welcome back let's get you township speed futures are slightly mixed this morning, but a bit of a reversal from what we've seen in the market the last several days the dow jones industrial average indicated higher by 54 points if we were to open here the s&p 500 higher by four, and the nasdaq down by five, which is the

opposite of what we've seen for the last several days. the dow and the s&p have been down for three days in a row the max has been higher, but we know that alphabet earnings are likely weighing on what we're seeing there out of the nasdaq and to come throughout the session today. >> time for our top trending stories. president trump's artwork is hitting the auction block. a sketch of the manhattan skyline made by -- i hadn't seen this yet, and i have been told it was bad it is much worse than i thought. anyway, this is done by president trump in 2005 for a charity auction, and it's hitting the market again with a bid of $9,000. it's an outline with trump tower in the center. it's signed trump with a gold marker i've lost it there it looks like -- >> it could be -- >> maybe an 8-year-old >> it could be any skyline also. i don't see any identifying marks. i don't even buy that that's trump tower. >> it was a charity event along side other celebrities that had to draw something too.

it was probably done in a jovial fashion with charity behind it, but it's rubbish i'm not an artist. i couldn't do much better, but still -- >> i'm glad we actually had a photo of it. i had only read about it before, and that's quality all right. justin bieber is bowing out of the rest of the purpose world tour don't cry too much the singer issuing a statement citing unforeseen circumstances as the reason behind the cancellation the news coming after china banned bieber from performing calling him controversial. it's also just a week after bieber announced several stairs, including migos would be joining him on the road. i understand refunds will be issued >> refunds will be issued. when i read this, though, the surprising thing is how many dates he had on the world tour anyway i'm not surprised he is burned out. seems like he just got bored of doing the same show and exhausted. that kind of doesn't surprise me it's still annoying and understandable clearly that people are annoyed with it, but, you know, he shouldn't have tried to do quite so many in the

first place. >> i also think that sometimes recently he ended a meet and greet, which he did with the fans exhausting maybe he needs a break >> yeah. anyway, cancering. 150 nights in total. 007 is back in action. the 25th james bond film is hitting theaters, we are told, on november 8th, 2019. sources tell the "new york times" that daniel craig will return as bond for one more film, which remains titluntitler now. it's not confirmed that daniel craig will do another one yet, but it's likely. heard that here first. the rumors are flying that he would stand out. i never believed it. >> take a cnbc trip. that's my birthday november 8th last year it was the election. quite an eventful day. >> i think this will be a bigger day. more important >> okay. all right. so now lebron james is making a lot of dough on pizza dough. he reports the investment the

nba superstar made for less than a million dollars, and fast casual chain blaze pizza in 2012 has grown to $25 million the valuation was confirmed when blaze sold an undisclosed stake to a private equity firm that valued the company at $250 million. lebron james owns 10% of blaze pizza. espn says including endorsement payments, which will trigger when blaze reaches certain sales targets, his stake is worth between $35 million and $40 million. >> i have never been to that, but it looks good. looks good you been there aren't any in new york >> not that i'm aware of i have not been, but i love pizza. who doesn't? i eat it two, three times a week >> alphabet shares under pressure a billion dollar dl eafor jimmy choo and a key health care vote in the senate. you're watching worldwide exchange on cnbc one laugh, and hello sensitive bladder.

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zbliechlt earnings a to z. breaking overnight senator john mccain returning to washington today for a key vote on health care we're live in d.c. with the latest and michael kors just went shoe shopping. $1.2 billion deal that has the retail world buzzing this morning. details coming up. tuesday, july 25th, 2017, and worldwide exchange continues ♪

good morning very warm welcome to worldwide exchange on cnbc >> thanks for joining us wherever you are watching around the world. >> indeed, let's get straight to the global market picture this morning. coming off a soft day yesterday. the nasdaq eeked out a small gain 9 out of 11 s&p sectors were led lower by telecom's financials, the best performer this morning, as you can see, both the dow and s&p expected to bounce back and open higher. 52 points or so higher for the dow. the nasdaq, though, is down in the free market by six points. led lower by google parental fa bet, which is down nearly 3% after disappointing earnings treasury note for you, did see the yields kick up yesterday, but we're still below 2.3ers approximate% 2.275 on the ten-year this morning. >> we take a look at trading around the world asian equities mostly lower overnight focused on what's going on here in the united states with the political turmoil that continues ind.c.

over health care and russia investigations at the very least. we also still have weakness in the dollar you can see there the neeks neek down just a hair in europe it is a higher day today. a mixed session yesterday. you can see there the jerpan dax up by half a percent france is the strongest as we look there outside of spain. france up by almost .9%. we did get some current business climate condition data out of germany, which was a little stronger than expected >> as for markets, oil prices up 1.2% yesterday up again today another 4% higher. 46.8 dollar for you not much movement today. we did see the dollar index slightly higher yesterday. it's been very soft of late, but this morning a stop against the euro and the pound, and gold prices were flat yesterday and

slightly lower today .2%. $12.51 the price we're following two developing stories out of washington this morning. jared kushner is headed back to capitol hill for another round of questions over russia separately arizona senator john mccain says he is returning to work today just in time for a key health care vote kayla joins us with more good morning, kayla. >> good morning, court the statement from senator mccain's office gave more real estate to his votes on defense authorization and new sanctions bill, but his presence back in washington could be a galvanizing force in a health care vote where several republicans say they still have concerns the senate majority leader mitch mcconnell says those concerns can be dealt with after the vote passes to proceed. >> the only way we'll have an opportunity to consider ideas is if senators are allowed to offer and debate them. it means voting to proceed, and that will occur tomorrow >> a handful of noncommitmental

senators say they still don't know the contents of the full bill, but that's not what they'll be voting on today they won't be voting on a full replacement because it will require the senate to be able to -- using that as a starting point for any changes that it makes. the administration for its part offering an official stamp of approval in a statement yesterday urging senators to support it after the president used the bully pulpit to do so >> we as a party must fulfill that solemn promise to the voters of this country to repeal and replace what they've been saying for the last seven years. so far senate republicans have not done their job in ending the obama care nightmare >> the white house pulling out all the stops there in a blue room appearance flanked by what the white house calls victims of obama care, but conventional wisdom, guys, says that senator mccain wouldn't be coming back for a vote that wouldn't be

slated to pass, but then again, it's unclear where a handful of those republican senators stand and we'll see what today brings. >> and, we still don't know exactly what the bill will be, do we? there's some talk that it could still be the full senate repeal and replace bill, is that right, or not >> what they will be voting on today is to move forward to debate the house bill. the american health care act the bill that the house passed in early may because as rules require, that is the only thing that senators are allowed to debate at this point if they, in fact, vote to move to proceed. they're not going to be voting on any stand-alone repeal or any new replacement that the senate has put forth at this point. they can not on vote on what the house already passed, and then they can edit it from there, but those previous iterations were instructive to find out where senators stood on the issue, and in terms of that, there are still some contours where some senators say they're not entirely comfortable yet >> kayla, thank you very much,

for us live in washington. alphabet shares are under pressure after reporting better than expected earnings second quarter profits took a hit thanks to a massive anti-trust fight the google parent also reporting a 23% drop in its cost per click metric alphabet shares down nearly 3% in early trade 2.6% now they've recovered a little bit in deal news michael kors is buying luxury shoemaker jimmy choo price tag a 36% premium before the deal was announced it's up 17% in london trade. jd.com are boosting their partnership. wal-mart says the two companies are further expanding their platform supply chains, and customer resources throughout china. the two retailers first announced the strategic partnership back in 2016 well, joining us now on the cnbc newsline, cnbc contributor stacy. thanks so much for joining us. of course, you're here to talk about that deal between michael kors and jimmy choo. this has been rumored for some time that jimmy choo, obviously, we knew was up for sale and that

michael kors may be one of the bidders. now that we know the deal is coming to fruition, what do you think? is this -- for michael kors? >> it's interesting because obviously the acquisition train continues in luxury. coach and now kors putting their stake in the ground with jimmy choo, and i think it makes sense. it's a great acquisition because it gives kors some of the things that, you know, we can all argue are lacking. number one, it's really a true luxury brand, and, you know, as you probably know, shoes start around $700 for heels there. certainly bringing kors up the spectrum of luxury here, and it gives hem more exposure to the shoe category, which everybody has been chasing you know, i think it's a decent acquisition for them, and there is certainly growth left in the brand, so, you know, we'll see how they develop the brand and, you know, i think the other thing to point out is that while

kors is struggling with the wholesale channel and trying to right size and protect itself against -- jimmy choo is almost 70% retail they control their own destiny in some sense. >> isn't there a concern about lack of folks going physically into the retail locations for jimmy choo perhaps some softening trends. as a flip side to that, when we think about michael kors acquiring jimmy choo, how important is it to hang on to the creative team at jimmy choo and let them continue to function as they have been >> i think on the creative side, it is important, and you see a lot of companies make acquisitions that eventually clean house and fall into the path of sort of pushing their ideas into the brand and the organization, and taking away the heart of really what the brand was. this brand was really founded in east london.

it was a very cool, organic brand. it's continued to be really true luxury, and so i think it's the right move to keep the team intact, which they seem to be doing for now. >> thank you very much, stacy. really appreciate it i know you'll be watching today, and seeing the reaction of michael kors stocks once they open because right now shares are unchanged from michael kors. jimmy choo shares up 17% in other stocks to watch, facebook has issued a start app called source three to help it crack down on users that share pirated videos without permission facebook is down a little bit, like google is this morning. much less than google. jc penney has filed a cfo position -- has filled a cfo position that was left vacant earlier this month jeffrey david will take the job. he most recently served as cfo at garden restaurant sticking are retail.

the "wall street journal" reports the management corp. wants barnes and noble trying to sell itself again, saying it will benefit from a new owner sign of the times in the rv world. all the details. good morning >> good morning. plans to acquire american rv in an effort to rapidly expand its rv dealerships, and details of the deal have yet to be disclosed. ceo markets, also cnbc's the profit in a statement said they'll remain focused on kbroet and customer service as we expand in the michigan market with the successful establishment of american rv joining the camping world family we look forward to providing customers with top notch, one stop shopping that will fulfill all of their outdoor and rv needs from thousands of accessories to rv sales and service. take a look at the stock in terms of camping world, they've been on a tear since their idea more than 40%. they are unchanged in early trading. guys, this hasn't even been published a year, and shares have moved pretty high, pretty fast their trend here has been buying

up these smaller dealerships, and it helps them to expand to the michigan market. he said this is a sign of the times. i have to admit, i'm not an expert in the rv world can you plaexplain why? >> you think of it as a baby boomer sport now you are seeing millennials, and that's what's driving sales. they report next thursday, so we'll see if that's the trend. once you tack on the truck and drive around the country >> it's not like at tiny home trend. >> kind of some are living in these sign of the times. >> i'm not a millennial that wants a tiny home. i want a bigger home i live in new york city, so -- >> i agree i would like to explore more of america, so -- but i wouldn't want it to be my home. >> i'm having a hard time picturing you in an rv >> i'm going to a campground this weekend, and i will dell you all about it live on friday. >> done. we look forward to it. >> smores and hot dogs are the best part of camping >> that sounds good too. speaking of markets, as

landon mentioned, he is back on cnbc tonight, and once again, he is aettempting to help a struggling business that's resistant to change. this time it's family-owned zoe's chocolate company. marcus has a moment of truth when meeting with zoe's team here's a preview >> soa so here's the moment of truth. do you want me to be your business partner or not? >> yeah. yeah, i mean, we called you for that we're hard workers we're up for a challenge >> i don't want to be here because of [ bleep ] like this this makes me crazy. >> i 100% agree. it shouldn't look like that because we overlooked it >> you overlook that you overlook the stuff in the back >> you didn't see all the stuff that we did do we did as much as we physically could do >> well, get it together >> we're -- >> win we're going to get it together >> when are you going to get it together >> right now >> when? >> our ultimate goal is to make this company great >> but i can only see that with actions. >> don't miss the all new episode tonight at 10:00 p.m. eastern on cnbc.

still to come here on "worldwide change" today's must read why one columnist thinks he has pinpointed jared kushner's one and only mistake stay tuned we're back here in a couple of minutes. chances are, the last time you got a home loan,

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so take the power back and come to lendingtree.com, because at lendingtree when banks compete, you win. welcome back to "worldwide exchange." time for our must read the stories catching our attention. my pick from the financial times is titled steven manuchin bank

carries a warning for europe it's penned by -- it's global strategist until recently he was head of banks research in europe at morgan stanley very well respected when he talks about banks. he writes "even the toughest bank critics admit privately they've been impressed with the report's thoughtfulness and measured tone. it also seeks to advance american interests and the global competitiveness of the u.s. financial institutions. that's why europeans should pay attention. if even a portion of these proposals were to come to pass, the cost of capital for u.s. companies could fall." this is another positive perspective on the treasury secretary's outline for bank deregulation it's come a little later than perhaps the others, but taking a perspective as well on what this could mean for europe and european regulators, and clearly they're adjusting. a lot more countries have to do it they're saying that this could give a leg up across the globe not just in the domestic markets. >> why would banks critics say that privately

mnuchin is a smart individual that knows what he is talking about. >> why would they praise it privately? >> yeah. >> people have been in the banking industry have praised it across the board they think the tone of the treasury-wide paper is encouraging. i think the big question, of course, is does it get enacted, and if so, how long it stays >> got it. my pick is in the washington post it's titled "jared kushner's only excuse. he has no idea what he is doing. he is essentially arguing that he is just in over his head. he didn't really know what he was doing, and he was too busy coming from the man charged with handling everything from middle east peace to opioid says. this isn't reassuring. basically she's talking about yesterday when kushner came out and said i didn't collude with russia yes, there were things that i didn't disclose because that's because i was too busy there were too many things going on i can't read all my emails that may be true, but he is being charged with an awful lot as a senior advisor to the president, and it's unchartered

territory. we've never really had a role like this from a son-in-law of a president who doesn't really have any political background. >> we got to hear from him >> we see him, but we don't ochlk hear fr often hear from him. >> it's the second time i can remember hearing his voice recently at least. >> exactly exactly. >> still to come, key earnings reports. plus, the fed kicks off a two-day meeting. director of global macrotells us what to watch straight ahead stay tuned you're watching "worldwide exchange," and we'll be right back

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breathe happy with new febreze. [car tires screech] [bell rings] welcome back we're approaching the top of the hour, and that means "squawk box" is getting ready. a look at what's coming up good morning, andrew >> we have so much to talk about. joe and i are going to have a throwdown, as we always do, but we've been having one off camera about the new democratic party

proposal that was made yesterday by pelosi. we'll be talking about that. of course, we're going to talk alphabet earnings over and over again because, well, boy is that news plus, and i don't know if you have caught this, because i have to apologize i have not seen the entire program, but has anyone been watching the throwdown between elan musk and mark zuckerberg? this is while we've been on the air, basically >> no, right now 2:51 in the morning their time >> mark zuckerberg did a facebook live over the weekend where he was smoking bacon or briskit or something, and people were asking questions about a.i., and he made critical remarks without using elan musk's name. then elan musk said i have

talked to mark about this, and his knowledge on the subject of a.i. is very limited well, just watch it spiral we will talk about that coming up right here on ""squawk box."" >> we look forward to that, and what you suggested might happen between yourselves >> that's a de-tease >> we look forward to that in eight minutes time >> u.s. futures. let's have a quick look. the nasdaq led the market higher yesterday and had another record close. it's down this morning because of those disappointing alphabet earnings that andrew just mentioned. the s&p and dow holding on to slight gains in the premarket. let's talk to director of global macroat fidelity investments good morning to you. thanks very much for joining us. i suppose the question for the market continues to be can the tech sector continue to hold things together, and does that dough cline we've seen in alphabet stock overnight concern you at all >> not really. i mean, the whole fang trade took a brief pause about a month

ago, and it has come way back and is even stronger than it has been, and i continue to look at the markets as three different themes rather than 11 sectors, and you have the cyclical growers. energy, industrials, et cetera you have financials, of course, that are part of that cyclical picture. you have the bond proxies, which are the stocks that act like bonds, which a year ago were acting the way the fang stocks are today, and then you have these what we call secular growers. stocks that are growing their earnings sort of irrespective of where we are in the economic cycle. clearly that latter space is what's driving the markets as opposed to the bond proxies, which really should be doing better, but they're not because we're considered to be in a rising rate environment. i think the this can continue for a while, and in the meantime, we remain in this goldilocks or sharp ratio rally, if you will, with the s&p going up three times its normal pace sungs the first quarter of last year against half the type of

volatility that we normally see. investors are getting pretty spoiled here, and, you know, it doesn't last, but when and how it will change, we don't know, of course. >> ek spooing of getting pretty spoiled, some folks look at the recent rally we've had so far this year. even since the end of last year. this is a rally that gets no love it looks like it's not getting a lot of love from you either. you're more bullish on non-u.s. equities why? thekz have been pretty good here >> i'm not suggesting u.s. should sell their u.s. equities. i have plenty of love for this market i just think that non-u.s. equities have lagged behind so far since 2011 by actually by 140 percentage points, which is a huge amount in our business. they have an equal upswing in earnings earnings are growing across the world, basically it's not a binary decision that i like these, and i don't like those. i like them all, but i think

non-u.s. stocks actually have more up side from here just because for the reasons i just mentioned. >> what's your view in terms of what the eb is likely to do? we've heard from mario dragi, and then again today we've seen draghi's hawkish comments being offset by other members. what's your expectation of what the ecb is going to do >> yes well, managing the exit strategy as we have seen from the fed over the last few years is not an easy task, and even out of the bank of japan we're hearing a few comments sort of slightly suggesting that maybe this is not going to continue forever in terms of negative rates and quantity takive easing you know, the timing is, of course, very difficult to figure out, but what is clear is that the conversation is changing the narrative is changing from a global easing cycle, zero rates, negative rates, qe towards an exit of that environment, which we should all be cheering because that wouldn't be

happening if there wasn't enough growth or certainly earnings growth to be able to with stand that i do think in the coming year or two or three, who knows, there's going to be increasing chatter or narrative about not necessarily a global tightening cycle, but the end of the global easing cycle, and what that does to the term premium and interest rates and the dollar remains to be seen, but i think that's going to be part of the conversation for a long time to come >> in terms of your top sector pick in the states, just very quickly. >> so, again, come back to this three theme cyclical grow and secular growers, the secular growers continue to be my top pick if we get any kind of renewed momentum out of washington on fiscal, which seems unlikely at this point, i think that will be some momentum in the cyclical names. especially financials, which actually have done quite well recently the bond proxies don't make a lot of sense where rates are and

where the fed is going >> thank you very much for joining us that is it for "worldwide exchange" this morning thanks for joining us. futures pointing slightly higher "squawk box" is next

zbliefrmt a billion dollar deal for a high fashion retailer. michael kors buying jimmy choo i know all about jimmy choo. details straight ahead get ready for earnings dupont, united technology, eli lily, 3 m, gm, caterpillar and mcdonald's all reporting in the next three hours we'll bring the numbers the numbers and the reaction on wall street and where the stocks move plus, your rumba could soon map your home and sell that data to big tech companies we will explain why.

it's tuesday, july 25th. "squawk box" begins right now. ♪ i always feel like somebody's watching me ♪ ♪ is it just a dream >> live from new york where business never sleeps, this is " ""squawk box." >> welcome to ""squawk box." we're live at the nasdaq market site in times square >> s&p 500 up about four points. the nasdaq, however, and we'll explain why this is the case