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tv   Worldwide Exchange  CNBC  August 7, 2017 5:00am-6:00am EDT

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another week in the green after hitting record highs. secretary of state rex tillerson doubles down on north korea after the u.n. approves tough new sanctions. google's anti-diversity manifesto sparks outrage "worldwide exchange" begins now. ♪ good morning warm welcome to "worldwide exchange" on cnbc. i am wilfred frost.
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>> i am courtney reagan. it is your birthday and sara eisen's birthday. >> bill griffin's as well. >> that's cool what a day, august 7th >> she's doing closing bell later with bill. >> wonder if we get cake let's get to the global market action futures pointing higher at this hour another week of gains for the dow. last week up a third percent friday taking it to 1.2% higher for the week nine straight sessions of gains in a row for the dow last week goldman, sachs had the biggest impact, best returning sector in the s&p 500. only had small gains and nasdaq was lower for the week this morning, pointing at slight gains. 23 points for the dow.
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ten year fresh renote, not much ending at 2.6% 2.27 on the ten year treasury note more on markets in a moment. first, getting reaction from the white house. new economic sanctions against north korea. tracy potts is live with that from washington. >> reporter: good morning. reaction from north korea saying they'll take righteous action against what they think is infringement on their sovereignty, new united nations sanctions. this morning, rex tillerson at this asian conference is talking about what it is going to take listen to rex tillerson talking about the north korean nuclear
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program and what it will take to start negotiations. >> with respect to north korean missile launches, we'll know it when we see it we're not going to give someone a specific number of days or weeks, this is really about the spirit of these talks. they can demonstrate they're ready to sit with a spirit of finding a way forward in these talks by no longer conducting missile tests. so this is not give me 30 days and we're ready to talk, it is not that simple. >> he has been meeting with south korea and japan, he said there was some progress. he briefed them on u.s. efforts to urge africa and asia and other nations not to use labor from north korea as an inducement to get them to stop missile tests. meantime, lots of talk about sanctions that could take a big chunk, about a billion dollars, out of exports take about a billion dollars out of north korea's exports president trump, look at this tweet.
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president trump on a working vacation has also been on the phone with south korean president. he says south korea is happy and impressed with sanctions imposed by the united nations by all countries, including china that's significant and that's the direction they want to move forward wilfred, courtney, a lot of talk at the conference what to do about north korea. north korea seems undeterred. >> thank you very much the chinese as you say voting with the u.n see if that has effect moving forward. tracie potts in washington. see what it means for asian equity markets for the most part, positive open mixed for a couple of smaller markets. you can see japan, shanghai up a half percent we are higher across the board apart from germany
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take a check of broader markets. look at oil prices oil prices sitting below $50 a barrel now below 49 by one penny for wti, down by 1.2%. we were around nine week highs an hour or so ago. not as close as we were then if you look at brent, below $52 for brent. officials from joint opec and nonopec committee is meeting today and tomorrow to discuss ways to boost compliance with production cuts. look at what's going on with the dollar holding on to friday's gains we saw after the jobs report. you can see it will cost a dollar and almost 18 cents to buy a euro dollar is slightly stronger against the yen and pound is stronger against the dollar. check in on bit coin price, given was the crip tow currency
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is doing all-time high, surpassing 50 billion in market cap. more than tripled. this is less than a week after the new version infused cash into the market. turning to this week's wall street agenda, look for consumer credit numbers at 3:00 p.m. eastern. wednesday, first look at second quarter productivity, labor costs. and jobless claims and ppi about 35 companies in s&p 500 report results this week, retail and media are in the center ground. names to watch, cbs, michael course, kohl's, macy's. softbank shares higher
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landon dowdy joins us. >> good morning. softbank topping estimates for the quarter. the japanese conglomerate says profits rose more than 50% after they included vision fund as new reportable segment that's the world's largest private equity fund, one of many areas that softbank founder's son has his hand in. has stakes in sprint, allalibab. they're big on ridesharing companies with investments, but as cnbc first reported friday, softbank is not in investing in uber one source telling cnbc talks dead in the water following abrupt departure of ceo travis kalanick shares of softbank are up about 2.3% in early trading. back to you. >> thank you very much for that. could be looking to make a
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come back. information reports the former ceo asked former colleagues if they would support him in a shareholder battle mr. kalanick, still waiting to hear who his replacement might be. in other tech news, google executives responding to 3300 word anti-diversity manifesto written by one of the employees. it attributed gender and equality to biological differences. the engineer suggested google doesn't have more female engineers because men have a higher drive for status. the unnamed employee argued the left bias created a politically correct mono culture, would prevent honest discussion of the issue. the new diversity vice president is fighting back saying comments advance incorrect assumptions about gender a lot to unpack there.
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wow. >> exactly see if that share price hasn't done it yet. stocks to watch. rockwell collins jumped friday after reports said united technologies made an offer to buy the company. rockwell is reviewing the bid, no certainty it will engage in talks with united tech and expandings the kidney dialysis business. paying $30 a share which makes products to treat kidney failure. toshiba shares jumping, the auditor will sign off on results on when they should have recorded losses from westinghouse unit. that could reduce chances they are delisted from tokyo stock exchange up 5% today. more stocks. berkshire hathaway profits were hurt by lower investment
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gainsance loss of the insurance underwriting business. grows 6% in the first half of the year shares of delta airlines look attractive after 10% pull back it is an aggressive plan to return cash to shareholders. delta could rise 35% in the next year or two. not moving shares, this morning shares are unchanged and voya financial is poised to raise 30% barron's says the investment business is growing, those shares unchanged. the company that runs much of the uk tv and mobile infrastructure may be going public the company carried the first television broadcast in 1936
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it works with british broadcasters, mobile operators, independent radio groups it could be worth more than $7 billion. the brexit divorce bill. denying reports the uk will pay 40 billion pounds to leave the eu details coming up. here's european trade this morning. germany down after weak prodti da. ckn cole of minutes. ♪ we check our phones 85 times a day.
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welcome back to "worldwide exchange." if you're just waking up, get you up to speed on market action this morning futures are indicated ever so slightly higher if markets were to open now. this is a strong week for u.s. markets. friday, dow was up 67 points we continue to log in ninth positive session on track to do the same today, at least if we were to open now. we have a number of hours left to go. quick check on the price of oil. oil prices are lower by more than a percent, $49 a barrel for wti. officials are meeting from opec and nonopec in abu dhabi to discuss ways to boost compliance with the production cut across the opec countries, so as a result as of now, we see oil
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prices lower. uk government playing down reports it is willing to pay $47 billion to the eu to settle brexit divorce bill. those reports surfaced over the weekend in the sunday telegraph. bring in robert wright, correspondent in the financial times. if this was true, the government backtracked today, it would be a large admission from the government that they're going to have to cough up more, yield more ground than previously expected >> the point is most people know that at some point, uk government is going to have to pay a divorce bill, the uk government has substantial obligations to the european union, and it is going to have to pay some money at some point. the question is how much money is that going to be. i think most people would think given sums of money being talked about, being as high as 100 billion you'euros, this is not
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big a sum of money. >> is this enough to play indicate desires of eu negotiators? >> what is clear is this is not the way the european union thinks this negotiation is going to work. european union wants to have progress on the divorce bill, and according to the article, they see this as settling. the real message is that we're still in a point of dialogue two sides don't really understand each other yet. >> just sum up the state of the british government at the moment, the prime minister theresa may, left it in the hands of chancellor philip hammond when she was gone. is that the balance of power in the cabinet, what's expected in terms of her length of tenure? >> i think probably most people still expect the prime minister would manage to stay in office
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for the foreseeable future what we have seen since she is away on holiday, a real offensive from people that want to make, trying to put in place transitional arrangements, trying to smooth things. some think they can potentially smooth that brexit process so we don't have damage to the uk economy in march, 2019 when the country is due to leave the european union the chancellor said he wants the process to be so you won't notice one day to the next that the uk has left. obviously there are some people deeply opposed to that that's the debate at the moment on the uk side. >> robert, thank you for joining us in other international political news, leader of germany lower sacks kneeregion
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dismissing report he softened a speech critical of volkswagon emissions scandal at the automatic's request. he owns 20% of the company under german law he is criticized for too cozy a relationship with volkswagon he is already facing unexpected election after defection of a coalition to angela merkel's conservatives. anti-government fighters that attacked an army base will get, quote, the maximum penalty. nicolas maduro says troops killed two of 20 intruders that slipped into the base early on yesterday. the attack came as the constitutional assembly was getting to work, signaling last week it would target maduro's enemies. they voted saturday to remove the outspoken chief prosecutor
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things are volatile in venezuela. foxconn, which state to be home to a new manufacturing facility. here's the weather forecast. >> good morning, flash flood watches out this monday morning, it will be a tough go of it here, especially by later this afternoon. areas like new york city, philadelphia, washington, d.c. you'll all be under the gun later for heavy rain that could cause areas of flooding. watch for the evening commute later today. 5 million at risk for severe weather this afternoon that severe weather risk extends down through central virginia. get ready for severe storms and potential for isolated tornadoes. that's the binusess travelers forecast more "worldwide exchange" when we come back
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good morning welcome back to "worldwide exchange." look at what futures are doing this is a positive week for the dow, negative week for the nasdaq s & p was in positive territory. banks the best performing sector goldman, sachs best performing sacks within the dow nine straight positive sessions for the dow. might be ten future up for the dow. let's look at currency board
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saw a big jump on the dollar friday up 0.7%. that was off the back of strong jobs report, and bit of correction from extreme dollar weakness in recent weeks this morning back to the weak train. dollar slightly higher against the yen but softer against the pound. oil prices were slightly negative last week in the last month have been largely positive wti soft, down 1.2%. in and around $49. much more encouraging than a few weeks ago. foxconn making no bet on america. south china morning post says they'll open a facility in michigan focused on autonomous vehicles no details of the investment amount were provided they'll open a $10 billion manufacturing plant in wisconsin. worth noting michigan and
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wisconsin flipped for president trump in the 2016 election. general motors recalling 800,000 pickup trucks for a steering defect. the problem can potentially cause drivers to lose control of the vehicle. it impacts certain 2014 silverados and gmc pickups workers at nissan plant in mississippi have overwhelmingly rejected a bid to unionize the move a blow to united auto workers union which has never been able to fully organize in the south. the uaw lack of influence in the south reduced bargaining power when detroit automakers lose market share and close plants. now to sports. a mystery chinese investor is interested in buying a stake in manchester united.
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they were approached to gauge interest in selling out. the family owns 80% of it, sources say the family is not interested in selling the team outright chinese investors bought several clubs and invested extraordinary amounts in the chinese >> interesting, they tried to get it in asia and london, valuation was deemed too rich. crucial moment it was make or break going well for them. they made a lot of money the dark tower came out on top of the weekend box office. the sony movie adapted from
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series of stephen king books debuted with estimated $19.5 million. that was roughly in line with forecasts. it received poor reviews >> i luike the look of it still to come, round up market action and today's top trending stories why next generation apple watch could have you feeling like a spy. you're watching "worldwide exchange." i love you, couch. you give us comfort. and we give you bare feet, backsweat, and gordo's... everything. i love you, but sometimes you stink. soft surfaces trap odors. febreze fabric refresher cleans them away for good. because the things you love the most can stink. and plug in febreze to keep your whole room fresh for up to 45 days.
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stocks pointing higher investors gear up for a new trading week what you need to watch. and secretary of state doubling down. >> gone viral. russian president vladimir putin's latest fishing trip leaves little to the imagination. you're watching "worldwide exchange" on cnbc. good morning i am wilfred frost. >> and i am courtney reagan in for sara eisen it is both your birthdays. >> happy birthday to sarah and bill >> let's check on what's
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happening going on around the world. starting in the united states with futures they are higher but slightly so for three major indexes. a strong week for the dow, logging nine straight positive closes goldman, sachs contributing the most gains up almost a percent, what's going on with the tenure 2.28, for the yield. equities higher off the news of sanctions on north korea. maybe having a positive effect of it.
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european trade is slightly positive across the board. weak industrial production data, expected to be just slightly positive in fact down a percent germany in red, the rest in green. ftse up 2% last week. start with the wti those prices are under pressure this morning, down by 1.2% below $49 a barrel by a hair they were supportive of prices moved away from that there's a meeting today and tomorrow in abu dhabi with opec, nonopec members about production cuts, how to get greater compliance you can see that brent crude is below 52 a barrel. take a look what's going on with the dollar the dollar is holding on to
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friday gains on the back of the jobs report, halting the downward trend for the dollar. you'll see the euro is stronger against the dollar cost 1.18 to buy a euro. holding on tighter against the dollar at 1.30 what's going on with the price of gold, gold prices down for the third negative session in a row, losing ever so slightly today at 1263 and change for the price of the precious metal. breaking overnight, secretary of state rex tillerson doubling down on north korea speaking at a news conference in the philippines, he praised sanctions against north korea and said the world will get a clear signal when north korea is ready to come to the negotiating table. >> with respect to the north korean missile launches, we'll know it when we see it we're not going to give someone a specific number of days or weeks. this is about the spirit of
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these talks. demonstrate they're ready to sit with the spirit of finding a way forward in the talks by no longer conducting missile tests. this is not give me 30 days and we're ready to talk, it is not quite that simple. >> north korea says new sanctions are, quote, a crime against their people turning to wall street's agenda, it is a lighter week for economic data. today, june consumer credit numbers. wednesday, second quarter productivity and labor costs jobless claims 38 companies reporting earnings this week, 35% done for the season among big names, cbs, michael course, 20th century fox, kohl's, macy's wilfred, huge interview tomorrow sitting down with jpmorgan ceo
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jam jamie dimon. >> first time he did something since the earnings call. extraordinary outburst, said it was embarrassment to be an american the stupid blank people have to put up with in terms of grid locks whether his outlook is worse because of volatility in the white house. also decision by u.s. banks for world pay, gone under the radar, is that because they're allowed to use capital again deregulation, tax reform very positive on europe. relative to the outlook. talk about that as well. >> good interview. so much to say and so interesting. grabs headlines from everyone,
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even folks -- he puts it plainly for us. >> discussing that particular reason for location. other stocks to watch. shares of rockwell collins after united technology offered to buy the company. rockwell is reviewing the bid, there's no certainty it will engage in talks with united tech rockwell up 8% they're expanding kidney dialysis business. they'll pay $30 a share. softbank topping estimates for the quarter. profits rose more than 50% after they included vision fund as a reportable segment up 204%. berkshire hathaway profit fell 15% results hurt by lower investment gains and loss in insurance underwriting business. book value, warren buffett's
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preferred measure of network rose 6% first half of the year shares of delta airlines look attractive after 10% pull back with aggressive plan to return cash to shareholders and ample profit margins, delta could rise 35% in the next year or two. not rising that much today, today is unchanged voya financial is poised to rise 30% in the next year there are indications core retirement and investment business is growing. shares unchanged. travis kalanick looking to get back in at uber. he asked former colleagues if they support him in shareholders battle amid reports softbank looking to invest in uber, buy shares from existing shareholders
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last week, he said softbank may be trying to do a lot of deals, one isn't investing in uber. we don't know what happened to the valuation. i wish it was listed >> it is pretty exciting >> we have a market for the latest -- in other tech news, google executives respond to 3300 word anti-diversity manifesto written by one of their employees. the memo talked about gender inequality to biological differences. suggested google doesn't have more female engineers because men have a higher drive for status the employee argued the left bias created a politically correct mono culture which prevented honest discussion of the issue. the new diversity vice president
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fights back saying comments advanced incorrect assumptions about gender. now on today's top trending stories. have you ever fantasized using your watch like a phone? bloomberg reports they're adding lte support to the apple watch, meaning you won't need that for tasks that require connection. it is expected to launch later this year. it will be like the inspector gadget watch did you watch those growing up >> james bond type watchers. bigger development was the first incarnation of the watch >> then you don't have to have the phone nearby. >> but wroer not making phone calls on your watch, i doubt. >> i wouldn't. >> we'll see bigger release is the iphone
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we'll see what happens next trending story. wonder what presidents do on vacation russian president vladimir putin leaving little to the imagination once again took a fishing trip to siberia check out these photos of him in action shirtless. fishing, hiking, sun bathing, diving, picking mushrooms. not man enough to go diving without a wet suit, not that i would be >> i didn't know people took vacations in siberia you could take your shirt off. >> definitely is a big fishing destination for europeans as well i agree. sounds cold even in the summertime today is wilfred's birthday. it is sara's birthday. little celebration 32 years old. >> don't tell everybody that >> why not, be proud
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>> thank you very much it is sara's birthday, too, she's 21 today tune in later on cnbc. wish her a happy birthday. >> no candle to blow out >> dangerous happy birthday to bill still to come. must read warnings that wall street ignored. don't miss a live interview with leon cooperman, going against a bid to shake up adp as former long time board member, he has a lot to say about the activist campaign. don't miss that conversation at noon eastern noon eastern send wilfred birthday wishes
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good morning welcome back to "worldwide exchange." look at the market action in asia main markets are higher by a half percent southeast asian markets in the red. european trade mostly higher germany, france, uk up 2%. germany in the red from disappointing industrial production data, down over a% month to month
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expected to be slightly higher what does it mean for u.s. futures, we are higher off the back of nine straight days of gains for the dow. which again was the best performers looking at gains the dollar jumped. it is fractionally higher against the yen. moving on to this morning's must reads these are stories catching our attention. titled august is dangerous month for trump. the editorial details how ds vacation month is a bad one for presidents like bush and obama, big moments happening that sent chain reactions that in some
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katsz changed -- it warns of literal hurricanes that often strike in august most often. even well staffed, well functioning administrations have trouble in august. key players take vacations for trump, badly understaffed at the white house and terribly behind in filling key posts in federal agencies, this risk is intensified. world doesn't stop because you go on vacation they have good context talking about famous warning from bush about bin laden that came in august, 2001, and hurricane katrina four years later in august, obama dealing with budget and fiscal crisis talk collapsing, health care exploding. >> all happening in august
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historical perspective in the financial times, part of ten year anniversary since start of the financial crisis this one titled warnings from history that wall street ignored. a long must read goes through lessons from various financial bubbles that have gone boom or bust infrastructure related booms in the 1800s after the foundation rail ways, last century, two or three of them, great depression, tech bubble, and join compassion between all of them, various correlations held going into the bubbles and once you come out. interesting deep dive article based around this. >> so many had to do with credit and housing, particularly in the united states. >> great shots well worth the look at that. team is getting ready for
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"squawk box. >> happy birthday to you happy birthday to you! happy birthday, will >> thank you. >> excellent day a lot happening because of will's birthday and who we have on "squawk box." it is august congress has finally gone on recess, the president on recess, doesn't mean there's not a lot of work being done in washington people are working hard on the tax reform bill, getting ready for september when congress comes back he is talking to us about what he sees with tax reform. also talk about the economy and better than expected jobs report friday you know what's been happening with north korea china going along with sanctions against north korea to step up pressure on them to stop the bad behavior they have been undertaking. obviously it is creating serious head winds with what's happening with trade china going along with that, then saying the u.s. is partially responsible for build up intentions there as well.
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we will talk to michael froman about what he sees with trade with china and beyond. and kevin o'leary is our guest host, with us monday, tuesday, wednesday he is mieked up, talking about the new apple watch. he has a samsung watch show it off. talk about this. >> fancy >> he is bringing guests as well i'm really excited about this. court, i don't know if you did a honey fund site. >> we didn't do one. >> it is a cool investment one of kevin's investments he is bringing in sarah march gul is to talk about it. if you don't have money for a honeymoon, wan people to give you that instead of wedding gifts. we haven't talked about this,
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but very interested in your view of charitable work that organizations do versus sara's view. >> profit first. brilliant for marriage but also get a divorce fund >> so romantic pt. >> birthday fund that's something for kevin to think about. a lot of stuff going on this morning, we're ready to go and it is still 11 minutes away. >> look forward to it, becky thanks very much >> happy birthday. here on "worldwide exchange," we set you up for the big trading week futures point us to a higher open today stick around orwi ehae"ilbe right back in a couple of moments. one laugh, and hello sensitive bladder.
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today, june consumer credit numbers. wednesday, first look at second quarter productivity and friday, july consumer price index. 35 companies in the s & p report this week cbs, disney, macy's. >> michael kors is reporting, they bought jimmy chew didn't go through a lot of financials, still a lot of questions about how that will be, are there cost centered days they suggested they're looking at acquisitions. i imagine there are questions and speculation as to who could be next. and we have a lot of department stores reporting thursday. macy's kohl's and nordstroms this company is under pressure
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a model many wonder if there's a future for department stores there's a big question there nordstroms is having reports of having hard time financing private equity firms aren't thrilled about taking a company private with a family. they want to take it on their own, spin it back out. a lot to watch in retail apple foxconn with another big bet on america the company will open a multi billion dollar facility in michigan focused on autonomous vehicles no details in the investment amount were provided news comes two weeks after they announced they'll open a $10 million manufacturing plant in wisconsin. noting both michigan and
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wisconsin flipped for president trump in the 2016 election i remember those surprises election night. auto news, general motors recalling 800,000 pickup trucks for steering defect. the problem can cause drivers to lose control of the vehicle. it effects silverado and sierra pickup cars. workers at a plant in mississippi have overwhelmingly rejected a bid to unionize the move is a blow to the united auto workers union which has never been able to fully organize in the south. part of the country that's traditionally anti-union bargaining power when automakers lose market share and close plants nissan shares were higher in overseas trading. let's have a check through the market picture act equity futures point higher to 0.2% for the dow
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0.1% for s & p and the dow was the leader last week 1.2% friday gained 0.3% goldman, sachs had the biggest impact and banks had a good performance for the week, particularly friday. the s&p 500 last week was up 0.2% nasdaq dak down 0.4% let's have a look at oil prices which is soft, down 1.6% 48.8 for wti crude oil was up 1% friday over the week as a whole just negative seeing a nice rebound of two or three weeks from lows last month. >> wti getting weaker down more
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than 1.5% at this point fr. let's check in on bit coin surging to an all-time high over the weekend, surpassing $50 billion in market cap. value more than tripled. comes less than a week after a new version of currency known as bit coin cash confused and worried players. the dollar jumped friday against the dollar index off the back of jobs number which was better than expected that marked a slight turnaround from recent trend, a remarkable one of dollar weakness, particularly against currencies like the euro which is gaining, quarter percent, close to 118.
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dollar weakness against the pound. that's it for "worldwide exchange." an f jni us. "squawk box" is next these days families want to be connected 24/7.
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investors gear up for a new week of trading. first, wisconsin, michigan foxconn opening a second factory in the united states and shark tank comes to "squawk box. kevin o'leary is sitting with us the next few days. it is monday, august 7th, 2017 it is wonderful. "squawk box" begins right now.
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good morning, welcome to "squawk box" on cnbc we are live from nasdaq market site in times square becky quick with andrew ross sore kin joe is off, sitting in the next few days, mr. wonderful himself, shark tank's kevin o'leary. >> great to be here. >> great to have you we have been planning and plotting things for the last 45 minutes or so. >> looking forward to it i am a right wing voice of reason >> looking sharp are we going to do the blazer thing today? do you want to do the blazer thing? we could or take them off, roll up sleeves >> i think we should discuss the issue. point out there's always two sides to everything. >> i love this already. >> i don't think i've seen you without a jacket on. >> i wear a jacket now because at the end of the day, i am trying to look shorter and longer at the sameim

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