the bull run rages on. the dow closing at 22,000 for the first time ever. will the rally continue? we have your trading day setup straight ahead. shares of tesla charging higher as the leelectric car company tops expectations. and mark zuckerberg's 2020 vision what the facebook founder just did that has everyone thinking he's really going to run for office it's thursday, august 3, 2017, "worldwide exchange" begins right now. ♪

good morning welcome to "worldwide exchange" on cnbc. i'm courtney reagan. >> i'm dominic chu it's throwback thursday, this week, we are taking you back to the 1990s and the hip-hop scene. naughty by nature. >> i love it. >> you will be listening to this music throughout the course of the show get ready. it's something from when i was growing up >> me, to. brings me back to ohio in the '90s let's check in on the global markets to kick you off this thursday after the dow hit 22,000 for the first time in yesterday's session, right now futures are implied to open just slightly lower across the board for the do dow, s&p and nasdaq. we have about 4 1/2 more hours to go. an impressive run by the dow, took 107 days to get from 21,000 to 22,000. boeing responsible for more than 370 of those points.

yesterday apple gaining more than 4.7%. really charged the index higher for the day. look at what's going on with the ten-year not a ton of movement. sitting around 2.26 or so for the yield. the ten-year note right there, 2.264 for the ten-year dom? >> let's look at what happened with the asian side of things, predominantly negative, not dramatically so. the knee say clonikkei closing w 0.25 the shanghai closing down about that same amount we had weaker data out of china. a little color coming out of japan as well. we'll get to that later on in the show let's look at what's happening in europe right now. does that negative sentiment carry over to the trading session. we are seeing fractional losses almost across the board. the dax in germany off by 0.3%

the cac in france off by 0.1%. the same for the ftse 100. so the european markets, just a little bit lower we'll see if that carries through for the u.s. side of things >> we have some decision coming up from the bank of england as well a look at the broader markets, oil saw some movement yesterday. early in the session we were sitting below $50 a barrel, we still are. 49.81 there. that's higher by 0.4%. below that key $50 a barrel level. some analysts are looking at this thinking we may be range bound for some time to come. we know we still have pretty high supply, but also high demand from the u.s., which we heard yesterday from some data points look at what's going on in currencies the dollar index hitting a 15-month low so fa we are also seeing its going to -- the pound actually is, as you can see, moving before that

bank of england decision, the pound is higher against the u.s. dollar the euro is at 1.18 there for the euro >> just a check on gold prices as well. we have been talking a bit about how the dollar story plays into the gold prices. you can see off by 0.75% 1,268 is the last trade for gold we'll keep track of that we have been seeing at least a bit more of a short-term down trend in some of those prices. so we'll see if that continues >> it hit seven-week highs earlier. >> it did. so let's talk about the record rally for stocks. joining us is jurien timmer dow 22,000, is it as big a deal as many people are making it out to be? >> good morning. dow 20,000 seemed so 2,000

points ago but round numbers are obviously interesting. they're milestones, they are like birthdays, you take stock of where you are but ultimately the market is driven sort of by three pillars. earnings, valuation and liquidity. the fact is that valuations are on the high side, but earnings are very strong. q1 was at a 14% growth rate. dwsh q2 is running at plus 10 if the usual seasonal drift happens where the numbers start to climb higher, we may see plus 11 or plus 12. the third and fourth quarter are too early to tell, but for the calendar year probably plus 11 or plus 12 they make up for the high valuation of a trail 2g 1ing 21.

the third is liquidity the dollar is down, that feeds into financial conditions. the fed is in sort of do not harm mode in terms of not going further in terms of its hiking cycle than the market will allow. so when you add everything up, you know, stocks follow earnings usually over the long run. earnings are growing double digi digits, so it shouldn't prize anyone that the market is at highs. >> when we look at historic corrections, they happen fairly often. we could be prime for one. you even say a correction could happen at any time for any reason can you explain sort of where your thinking is there do you think that's something we should worry about going into the fall >> so that can always happen we don't always know why or when or how it's going to happen. but the odds historically of a 10% correction are 1 in 3.

and, you know, those are high odds since the first quarter of 2016 when this global reflation bull market really sort of resumed, if you will, the s&p is up 32% against the volatility or the standard return of 7 now normally the market goes up 10% against a vol of 15. getting 32 against a 7 vol is about as good as it's going to get. it's hard to improve on that when you combine that with the fact we have not seen much of a correction since about a year and a half ago, back to february of 2016, and you add the odds of 1 in 3, it shouldn't shock anyone if we do see a 5, 10, or 15% correction at this point, if you're asking what is the catalyst, it's -- i'm hard pressed to find one though that doesn't mean it's not going to happen. >> jurrien, just a few seconds

left here. europe is not following through with the 22,000 parade asia didn't really either. what signs will you be looking for today or in the coming weeks for the direction generally of what will happen with our markets? >> it's -- so the two major things that are really driving this market really over the past year and a half are the global reflation led by china china pumped a lot of credit into its economy, and the output levels continue to be high the other one is the fed versus the markets. the markets have a benign view of how much more times the fed will raise rates the fed seems to have a different view of that we'll have to watch the intersection of those two things in the meantime, you know, it's earnings, and when you have earnings growth running at double digits, you can kind of excuse the valuation for being on the high side and after that it's really liquidity. it's the dollar. it's credit spreads, et cetera whether we stay above the dow

22,000 today or go back and forth for a few weeks or a few months, it ultimately doesn't matter investors should be positioned for the long-term. you know, so far the fundamen l fundamentals are healthy >> thank you very much, jurrien for joining us on "worldwide exchange." now the top corporate story. check out rally in shares of tesla. the carmaker topping wall street expectations with a narrower than expected second quarter loss shares up almost 6.5%. quarterly revenues doubling from a year ago, deliveries coming in strong tesla says it has more than 1800 daily reservations for the new model 3. it's expecting an increase in deliveries of its model s. on the company's earnings call, elon musk reassured investors that the company can keep up with demand. >> what people should absolute i will have zero concern about,

zero, is that tesla will achieve 10,000 unit production week by the end of next year >> joining us now on the cnbc news line is the partner and chief investment officer at tigris financial partners. just first off, your impressions of the conference call which we always get a lot of colorful highlights we shared a few there from elon musk >> it's always positive and upbeat the exciting thing for tesla is that the 3 has finally arrived they delivered their first ones on friday. production will ramp up and people will start getting the cars there's a huge pipeline of orders >> ivan, the stock is up 6.5%. it's up 50% over the course of the last -- year-to-date period. is there a reason to be as bullish about this stock and are you as bullish about these comments coming out of elon musk >> i am bullish about the

comments we have a neutral rating on the stock because it's just very hard to value and very volatile stock. however the company for the most part has create the a phenomenal car. it's done an incredible job, but car manufacturing is a very capital intensive business and overall elon musk and tesla has done a phenomenal job of bringing one of the most advanced cars from concept to production and this is now his third car. the first two are in every way possible well received, very well built and the 3 is the car that takes tesla, the car company, to the next level from a niche maker to a mainstream carmaker. so far all of the reviews on the model 3 are all tremendously positive if we go beyond the fundamentals of actually the quality of the car and reviews of the car, tax incentives are a part of the

picture for tlaes esla as a com. when tesla sells $200,000, that tax credit goes away yes that could change, with changes out of washington. but how important is that as a risk factor for shares of tesla? >> it's interesting because while the car is listed to start at 35,000, when you add options, most of the model 3s will go between 40,000 and 50,000, after the tax credit that reduces it significantly. while i do believe the trump administration would be likely to extend it because part of his campaign was to become energy independent and also to reduce emissions, so i believe that there is a good potential they'll extend the tax credit because everybody does benefit when more people drive electric cars we use less oil and make less

pollution. what's interesting is that almost 25% of the gas prices that we pay is for taxes that are supposed to go to roads, and obviously if people are using electric cars, they're not paying gas taxes the average person pays about $150 a year in gasoline taxes. so then there has been talk of taxing electric cars >> right >> because they don't pay a gas tax. if you look at the calculateder for te for tesla on how much you would save driving an electric quacar, would save about $2,000 a year so there's a cost savings, and they may have to tax these cars in some way. i believe they will increase or extend the incentives. >> a complex tax situation, thank you very much ivan feinseth for joining us this morning. sticking with earnings, more stocks to watch today.

aig says second quarter profits fell 41% but operating results, which exclude realized capital gains and losses actually topped forecasts. aig was boosted by cost cuts as well as strength in the consumer insurance business shares are up by a percent square reporting better than expected second quarter revenues the payments company was helped by higher transactions as larger companies adopt its technology those shares higher in extended trading. also fitbit reporting a smaller than expected drop in second quarter revenues. they also said it is on track to launch its much anticipated smart watch which holiday season those wearables, they tend to, i don't know, i thought they were fads, maybe they're something more aic interactive's second quarter revenue topping forecasts with strong sites like match and home adviser

aic is up about 60% this year. shares of cheesecake factory are sliding. the chain's second quarter earnings and revenue missed estimates. shares down more than 6% the company broke a string of 29 straight quarters of same-store sales growth and take two interactive swung to a first quarter profit. revenue rose 34% driven by increased spending on virtual goods and downloadable add-on items for older games shares are higher by 11.5% new overnight, president trump is expected to announce major trade action against china. senior white house officials confirming to cnbc that the president will make a speech tomorrow reports say mr. trump will sign a memo directing his trade representative to go after chinese theft of intellectual property the move is raising concerns that the u.s. could be headed towards a trade war with china up next on "worldwide

exchange," adidas scores a goal. bmw shifts into overdrive, and one german telecom giant is ringing in profits a roundup of european earnings straight ahead. you get used to food odors in your car. you think it... ...smells fine, but your passengers smell this bell dinging new febreze car with odorclear technology cleans away odors... ...for up to 30 days smells nice... breathe happy, with new febreze.

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we'll see what happens here as we head towards the start of regular trading. europe was lower yesterday and again today. let's get you some stocks to watch there. siemens reporting a mixed quarter. net profits topping estimates and orders dropped shares are lower by 3% axa seeing a 4% jump in its first half earnings. positive results from claims from natural catastrophes. and adidas posting solid results for its second quarter the retailer upping its guidance as it continues to see strength in online sales. don't miss sara eisen's first on cnbc interview with kasper rorsted at 10:00 a.m. on squux squawk on the street. deutsche telekom reporting a profit report that topped wall street forecasts the company reporting to stronger results in the u.s. and europe bmw says profit grew double

digits last quarter, this as margins fattened and car sales hit another record thanks to strong sales in china. shares up by a half percent. unicredit posting first half earnings that beat estimates the bank reporting net profits of 1$1.1 billion 3$300 million above expectation. shares up about 4% coming up on "worldwide exchange," we're setting you up for a very busy day ahead in washington like every other day >> and a major medical break through to tell you about. it could be a grame changer for deadly heart condition but is raising ethics first, as we head to break, here is the national weather forecast from bill karins good thursday morning to i excessive heat continues today it will be the peak of the heat wave in areas like portland and seattle. 15 million people under heat advisories or warnings this strong ridge that's in place, this is like a once in

every three or four-year event medford, 111 olympia, 99. walla walla will be in the upper 90s. seattle should break your record high with a high of 94 portland, you have a shot at your all-time record high, that's 107 we're thinking around 105. the other areas of the country that are looking cooler than normal, the northern plains, 64 in minneapolis watch out for thunderstorms in chicago, st. louis and hit and miss storms in the northeast today. rewodwe exchange" when we come back this allows him to nail a jumper from a densely populated urban area. what you're trying to say is from way downtown? i am still learning. i can see that.

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welcome back to "worldwide exchange." a big medical break through to tell you about for the first time ever scientists have successfully edited genes in human embryos to repair a common and serious disease causing mutation researchers at oregon health and science university say they erased a gene that causes hcm. it's a disease of the heart muscles that leads to sudden cardiac death. the research marks a major milestone and while a long way from clinical use t does raise the prospect that gene editing may one day protect babies from a variety of hereditary related conditions it's also raising serious ethics concerns with some fearing it could some day lead to so-called designer babies. something to watch when we talk about these medical stories, it affects all of us

and loved ones always a keen eye on what happens with that development. to washington where taxes, trade and immigration are front and center tracie potts joins us from washington with more >> reporter: let's start with immigration. president trump throwing his support behind a new plan that deals with legal immigration but critics say it could make illegal immigration worse. >> reporter: with demonstrators outside his front door -- >> we're hoping he listens. >> reporter: president trump is supporting a plan by two republicans to change how immigrants enter the u.s >> to favor applicants who can speak english, demonstrate skills that will contribute to our economy. >> reporter: the merit-based proposal gives preference to english speaking immigrants,

with high-tech skills, squeezing out millions of low wage workers and slashes available green cards by half. >> this immigration proposal is not going to go anywhere because it would devastate the economy. >> reporter: critics say it will backfire draining the labor pool, driving employers to use illegal immigrants >> we think it's a nonstarter. >> reporter: that's still in the works, but the president has reluctantly signed off on sanctions for iran, north korea and russia >> he sent a clear signal we won't tolerate interference in our democratic process. >> reporter: in a statement president trump called the sanctions significantly flawed, even unconstitutional. >> maybe the president doesn't plan to enforce certain aspects. >> reporter: a soft play against russia, a much bolder one at the border we could find out more about that tonight the president is rallying in west virginia. courtney and dom >> thank you very much, tracie potts. there's a lot to think about with the economic impacts of

this proposal. president trump is getting ready to go after china on trade. what you need to know about that straight ahead stay tuned, you're watching "worldwide exchange" on cnbc

22,000 here to stay? the rally fades in the premarket as invests wait on earnings and

data trump's trade war. the president prepares to take action against china what he's expected to announce coming up. plus upping his followers. rumors that mark zuckerberg is making a run for the white house just got a little bit more believable we'll tell you why it's wednesday, august 3, 2017 you're watching "worldwide exchange" on cnbc. good morning welcome to "worldwide exchange" on cnbc. i'm courtney reagan in for sara eisen today. >> i'm dominic chu in for wilfred frost. it's throwback thursday, today we're going back to the '90s and the hip-hop scene. we'll have some dr. dre, snoop dogg in the mix as well. >> makes me so nostalgic, back home, high school. actually middle school, elementary school. '90s was a whole decade, all of

it let's check the global markets. like we mentioned, we're seeing a bit of weakness here on the futures side of things right now we could be indicated to open down about 2.5 points on the s&p 500. the dow off by 10 points the nasdaq just fractional eye higher less than 1 point. keep an eye on what's happening after that 22,000 mark was hit yesterday. as for the ten-year treasury note yield, the adp jobs data yesterday and jobless claims today, and that big jobs number, non-farm payroll numbers on friday just a hair to the upside in yields let's look at what's going on with equities around the world. starting in asia lower largely across the board, but look at south korea's kospi, down 1.7 % so the most sharply lower of all of those asian indices we did get july service sector in china showing it rose more slowly than the month prior,

matching april's reading some momentum in asia earlier in the week, but that sort of faded now that we're here at the weekend. we know that, of course, asia pays good amount of attention to the u.s. dollar, which has alwaalso been hitting 15-month lows in europe, slightly mixed. lower for european equities after yesterday's lower, but now moved straiglightly higher france up by 0.2%. the ftse mib up by 0.3%. germany and spain trading lower. a lot of earnings reports out of europe from the likes of bmw, credit argicole, axe a. let's take you to the broader markets, if you look at what's happening with the oil trade, it's hovering around the $50 per barrel mark for wti crude.

$49.72, up by 0.25%. ice brent crude futures, $52.51. also up by one-third of 1% the currency side of things, we'll check in on that, it drives commodity prices, most of that is asian trading and it gets itself tied to the currency markets. euro is weaker against the dollar, 1.1845 dollar/yen, 110.63 pound sterling showing strength, 1.3248 that leads us to gold prices on the commodities side the hard commodities side. check out what's trading there, off by nearly 1% 1267.90 the last trade for gold futures. those trades to watch. turning to today's wall street agenda we'll get another big batch of names reporting earnings aetna, clorox, kellogg and yum brands report results before the opening bell after the close, kraft heinz and

viacom weekly jobless claims are out at 8:30 that's followed by the is mark services index and factory orders at 10:00 a.m. now the top corporate story, check out the rally in shares of tesla. topping wall street expectations with a narrower than expected second quarter loss. quarterly revenues doubled from the same time a year ago and deliveries came in strong. tesla says it now has more than 1800 daily reservations for its new model 3. and it is expecting an increase in deliveries of its model s on the conference call, elon musk reassured investors that the company can keep up with that demand. >> what people should absolute i will have zero concern about, zero, is that tesla will achieve 10,000 unit production week by the end of next year >> those shares are on a tear so far this year, up by a huge amount, 62% year-to-date

a big story, one we will tackle throughout the course of the day here on cnbc >> never driven a tesla. >> neither have i. >> a couple people in the newsroom have. >> i'm curious >> i see them in the parking lot. i still like gasoline right now, it's a habit of course i'll evolve with everybody else >> i would be nervous about running out of battery president trump is gearing up to take action against china's trade practices. now we're starting to hear response from china. yune neeunice yoon is live from beijing. >> reporter: according to chinese state media, china may have no choice but to retaliate. the china daily, a state-run newspaper ran an editorial this morning which said that the reports of the white house taking more aggressive steps targeting ipr and china's trade practices was worrying and could spark a trade war.

now, on an official level the tone was much more subdued the commerce ministry was holding a regular press briefing, the ministry said that the two sides have made a lot of progress on the 100-day plan, at the same time the official was dismissive of the idea that china had not taken enough action on ipr issues, and also was saying that they were much more concerned about what was happening with the white house action now, the american companies that i've been speaking to say they are concerned about retaliation. not only have chinese officials and state press repeatedly over the past several months talked about potential for tit-for-tat retaliation, but the executives that i speak to say they're worried about retaliation that is completely unrelated to the industry they're in. the one example that keeps coming up is the 2009 case when the obama administration slapped a 35% tariff on chinese tires

and soon after u.s. chicken producers saw penalties by the chinese. the timing is interesting. not officially related, but this is the thing that american executives are worried about >> how much of this plays into the idea that there's a fall national congress for the communist party? how much is it jockeying for position and getting headlines out theahead of that in the fal? >> everybody is focused on what's happening for the 19th party congress one concern again that the executives i speck to haak to h the environment for american companies and international companies is becoming so tight so they feel that this potential for retaliation on them is very, very high. some of the top complaints that i've been hearing is that we're worried about the vpn crackdown, the tighter internet controls, what that means for businesses they're also concerned about the -- they feel like they're

being forced to put a lot of their data on local servers. they're also just generally worried about what's going to happen next. so this environment for them and their ability to take money out of the country, all of this is complicated by the tighter environment. they feel that they're so vulnerable now, even though many people i talk to say they do want to see the trump administration take a tougher stance at the same time they don't want to be the pawn in all of this. >> all right eunice yoon, thank you very much for all of that. in deal news, invesco is in talk to buy guggenheim's etf business the etf unit has roughly $30 billion in assets under management invesco manages about 125 billion in etfs. both firms said they don't comment on market rumors. now time for our top trending stories president trump responding to

reports that he trash talked the white house. trump tweeting last night i love the white house. one of the most beautiful buildings, homes, i have ever seen fake news saed i caid i called a dump totally untrue >> fake news, really >> it's not covered in gold leaf, we know he has a preference for that in his homes. >> i've been to the white house as a visitor and trump bedminster, both are nice establishments i'll say for the record i think the white house is awesome >> i don't think it's a dump at all. i don't know if he said it. speaking of president, could mark zuckerberg be for president? the facebook co-founder reportedly hiring a democratic pollster and former top adviser to president obama as a consultant the report says that joel ben beninson will conduct research for his charity. but remember all of this talk swirled because of that tour he had been making.

>> all 50 states this year >> across the country to gauge or get an idea of how americans generally feel about what's going n. the kind of messages that are out there. mark zuckerberg is richer, i believe, because you never know with donald trump, but he is richer on paper from his facebook stock than donald trump is so we'll see if he's got the resources to pull that off >> he could know about americans, all that data that facebook have. doesn't he know a lot about us >> i'm a data junkie, i'm a big believer. the farmhouse that inspired charlotte's web is on the market the 44-acre saltwater farm in maine is up for sale for $3.7 million. the home dates back to the late 1700s. white and his wife bought it back in 1933 >> wow >> isn't that cool >> charlotte, wilbur how much interest will that get

because of that wonderful children's book. >> great story for sure. good news for you peanut butter fans. krispy kreme is teaming up with hershey in a big way the company is launching a brand-new reese's peanut butter doughnut that sounds delicious. it comes dipped in chocolate, topped with peanut butter drizzle and filled with a reese's peanut butter cream filling. the doughnut hits stores tomorrow i cannot make it a regular occurrence, but i would try it once >> do you even care what the calorie count is >> you and i both like certain fast food items, other people don't. we'll try. >> for a special treat but i have a lot of special treats every week. i think i take it too far. >> there you go. steph curry is trading in his high tops for golf shoes this weekend the nba champ is making his pro golf debut today when he tees off at the ellie may classic in california it's part of the web.com tour,

like the minor leagues for the pga tour curry is a 2 handicap. >> very good golfer. >> vegas has him as a long shot to win the tournament at 3000/1 odds steph says making the cut would be amazing >> they're playing at tpc stonebray in hayward, california >> a 2 handicap, how does he have all that time to play golf? >> brilliant basketball player and golfer >> so cool coming up, the problems with protectionism. a harvard professor makes his arguments. as we head to break, a check on the u.s. futures market the day after the dow hit 22,000, you can see fractional -- we'll call it flat on balance you're watching "worldwide exchange." for your heart...

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are the winners. countries that go too far in closing themselves off to foreign competition eventually lose their edge with innovation, jobs, and growth suffering he goes on to talk about some of the case studies points that happened in asia, about why protectionism doesn't work worth the read, especially as we talk about china/u.s. trade relations. >> i think trade is something that more of us should understand it's a hard concept for folks to grasp. >> sure. >> especially with everything we talked about with the election it's hard for someone who lost a job to outsourcing to understand why global trade can be beneficial >> my pick is in the "washington post," it is titled how trump's new york-centric world view is backfiring in washington the true ethos of the trump

white house is not seen in the west, but on the cnbc power lunch spots of manhattan in his opinion he says policy is for losers, winners do deals he explains you can't achieve the heart of the deal without knowing parts of the deal. understanding the details, saying that something that trump is ignoring. second, only the big guys matter most of trump's interactions have been with ceos, four-star generals and celebrities the last is if you are not rich, you are not smart. there's been some criticism of who trump pays attention to largely because of what their bank accounts look like as opposed to some other measures of why they would be someone important to listen to. >> certainly worth the read. check both of those out for sure we're approaching the top of the hour, the team at "squawk box" is getting ready. joe kernen is in new york's times square with a look at

what's coming up >> courtney, i wish you had not put the actual text up there the way you said it, it sounded -- i was listening out of my ear, it said the cnbc power lunch crowd. >> i didn't say cnbc matt manhattan -- >> you said see and be seen. >> work with me. >> i know what you're saying >> you just said it three seconds. >> see and be seen >> if you had not put it in writing, we would have gotten a nice plug from ron -- >> scnbc's "power lunch" was not mentioned in that editorial. >> let's just leave it at that >> we need to remember the ns. >> we have jeremy siegel on. we have not seen him in a while. he's feeling well.

he's at wharton, obviously he's been a steadfast bull talking about 22,000 for a long time now you know what's after 22,000, according to jeremy, 23,000 could be after 22,000 >> 23 comes after 22 >> yeah. and you know what's after 23 25 -- no, 24 a wharton guy. we'll see how much of -- he's kind of, i don't know. he's a wharton guy, but i doubt if he's a trump guy. looking through the notes, he's not. he won't give much credit to wharton's most famous aloom nye alumni he said back in may that if trump resigned tomorrow, that the dow would go up 1,000 points i think the dow is up since then about 2,000 points

i guess that's what he meant it would only go up 1,000 if he resigned -- that's not what he meant. being here is amazing. it grinds a lot of people, doesn't it it was supposed to go down 5,000. it didn't. they've been fighting it the whole way up it kills them, even though it's probably a good thing, at least for rich people. that's what we're hearing now. it's not good for everyone else. better than down for rich or poor people. >> my 401(k) is doing great. >> yeah. it is, it's all about you, dom >> yeah. >> you know we have celgene on, too talk about a way to make money in the stock market. i remember when celgene was a glimmer in the biotech world's eye. it's over 100 billion in market cap. we'll have the ceo an their jiggering with the embryos, d mfshgs a a -- dna, not celgene specifically, but that's the big story today. this is a great biotech company.

we'll talk about the technology in general then eventually on cnbc, cnbc's "power lunch" will be on, where the cnbc "power lunch" crowd controls a lot of what's happening. >> we should do that at a restaurant that would be very cool. >> i think they have >> they have >> just not every day. thank you, joe appreciate it. we'll stay tuned for "squawk box. coming up on "worldwide exchange," will dow 22,000 hold? we're getting set up for the ayading day. st tuned where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.

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reflection of the growth in the u.s. economy, the global economy. you know, the dow has gone through 21,000, gone through 20,000, 19,000 22,000 is just a number. as the economy grows, you would expect the dow to make all-time highs. it's just normal and natural >> james, it's a big day for europe, for the uk specifically. we have the bank of england decision coming up got a surprise last month. what do you anticipate we'll hear what are the markets expecting and hoping to hear today >> i think today we won't see any change in the base rate. the vote will probably still be six for no change and two for a rate rise. the data over the last month or so has been a bit weaker than in the previous month i think with that on balance, inflation a bit higher in the uk, it's temporary looking forward to next year wage growth has not picked up. on balance there's no need for

the mpc to be raising rates. >> james, the debate has been picking up over the last true mon few months who has the better attractively market, the u.s. or europe tell the us how you see things from your side of the aisle. >> i'm a uk investor, i'm a uk equity investor, i will be talking my own story i look at the uk market, it loolook looks cheap to me. 4 % yield on the uk, dividend yield. when you look at cash yielding effectively zero, bond yields around 1, getting a 4 % income off uk looks attractive to me. don't forget the uk equity market is 70% overseas the majority of our earnings come from the global economy, including the u.s., europe and the far east we have that exposure to the overseas international growth. at the same time we're paying very little for it

if you adjust the ratio, it looks cheap, 15% cheap to the long-term average. it's a great combination exposure to the growing international economy at a cheap valuation. i like and i'm a passionate porter for uk equity for investors. >> the ftse 100 just hit another all time high. do you think there's still room to run here? >> you know, look, we have the same conversation six months ago when it went through 7,000 on the ftse 100, we'll have the same conversation when it goes through the next high. it's a reflection of the economy growing. it's just a number you need to look at the valuation. for us, on that level, the market still looks attractively valued >> fair enough >> james illsley thank you very much >> just a number, like 22,000. >> milestone >> we'll watch that number

closely. that's it for "worldwide exchange." thank you very much for joining us "squawk box" is coming up next ♪ ♪ ♪ ♪

the rally rolls on the dow tops 22,000 as we await another round of late bloomers as far as earnings reports tomorrow we have that key jobs data shares of tesla are surging. the electric carmaker topping expectations in its latest quarter. and we'll show you what elon musk said about production hell. president trump backing a bill that would slash legal immigration and give preference to skilled workers some rational for this, at least one side argues that point it is thursday august 3rd as we

slowly try to go through august and enjoy every day. we know what's coming. "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. >> talking about what we know is coming, death, taxes winter >> winter is coming. >> and back to school. no, not too soon we all want the kids to stay and enjoy. welcome to "squawk box." we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. futures under a slight amount of pressure the nasdaq just went positive. the dow futures down just about 8 points, this