a load of nonsense north korea hits back at threats of fire and fury from president trump. a live report from the region coming up. watch out youtube. facebook is officially launching a big attack on tv the details of the long-awaited content push straight ahead. plus retail in focus three big consumer names set to report today it is thursday, august 10th, 2017 "worldwide exchange" begins right now. good morning warm welcome to "worldwide

exchange" on cnbc. i'm wilfred frost. >> i'm seema mody. >> great to be with you on this august morning let's check in on global markets. yesterday we did have some risk aversion in the marketplace because of these elevated war of words between north korea and the united states of america but we came off the session lows and in the end the decline in equities wasn't too pronounced down about 0.3% for the nasdaq 0.2% for the dow and the s&p was flat as for the risk aversion, utilities often a safe haven sector was the worst performing sector down 0.5% but it is true to say there were safe haven trades which we'll talk about when we get to the currency markets and the bond markets. this morning we're called lower again. down about 32 points for the dow. again, a muted negative reaction to the ongoing tensions in north korea overnight. let's have a look at what it's done to asian trade which is a little bit more pronounced to the negative side. hong kong in particular down over 1%. but elsewhere, you haven't got

too much happening shanghai, south korea down just 0.4% for those two markets. north korea fired back at president trump's -- in a term of words -- north korea in this war of words responded to donald trump's threats of fire and fury overnight calling them, quote, a load of nonsense this is just the latest in a growing war of words between the u.s. and north korea thankfully just a war of words let's get right out to cnbc's sherry kang live in seoul, south korea, with the latest. >> thank you very much certainly upping the ante following up on the threat that it made yesterday. north korea's state run media kcna saying it will get ready for four rockets so they could land 30 to 40 kilometers away from guam.

and we have a timing report as well mid-august and says the military will be waiting for its leader kim jong-un's order to go ahead with it or not. yes, we have had north korea making similar threats since 2013 to preemptively strike areas of guam even hawaii. but what's different this time around is we have specific details. the number of rockets that it wants to have in its plan. and also the timing of it. and also we have a different leader in the united states. so i think the combo is certainly worrying a lot of am bos doors as you were talking about with the market reaction and also surprises some of north korea experts that i've been speaking to this week. so what's going on within guam the very place that's in all these headlines. we actually reached out to governor of guam and he managed

to keep his cool throughout this interview. he talked about why he thinks north korea does not want to follow up and follow through with these threats take a listen. >> i think it's important to point out that with the territory of guam, there is enough hardware to, you know, again, cause great harm to north korea. it's important that united states, japan, south korea, and its allies and together with china which is very critical to this, make it clear to north korea that the direction they're going is the wrong direction and it could lead to serious consequences but we feel confident here in guam we feel there is an umbrella that can protect this island community, this american community. >> and in the meantime, in south korea the military says it's fully ready for anything that

comes out of north korea for any north korean provocation but in the meantime, it also left some room for diplomacy but i'm not so sure what that's going to do at this point with so much heightened tensions on the peninsula. and more with the words coming out of washington and the president himself, guys? >> thank you very much for that report live from south korea let's continue our check on markets. a look at european trade markets at that point were lower last time i checked were lower across the board, actually german dax down 0.7% so escalated tensions with north korea clearly a concern for the global investor. we dp get out some economic data as well in france french industrial outputs stumbling in the month of june. you can see french equities lower. the ftse 100 down by 1% or more. glencore reporting better than expected earnings. we've seen upbeat results from

the likes of glencore among others but not enough gains in that sector to help the uk index at this point. let's look at the 10-year treasury notes the yield there now 2.24%. in the oil market, another big drop in u.s. crude stockpiles. that actually helped oil prices move higher yesterday. let's see where oil is trading at the moment. we'll get to that in just a second here we go energy markets wti crude $49.65 ice brent crude $52.92 and let's look at the dollar a mixed performance so far but of course all eyes on the dollar/yen which is seen as a safe haven especially when we do see a rise in geopolitical tensions the u.s. dollar weaker against the yen at 109.92. and at the euro, you can see 1.17 against the greenback overall point out the u.s. dollar is down about 9% this

year lowest level since may of 2016 >> i think interesting in terms of the safe haven trades if we go back to the dollar boards at the peak of the risk aversion which wasn't that pronounced either way of course the dollar was a beneficiary. the yen further still. but the dollar did move higher against the euro, for example, which went below the 1.17 handle it's above that again today despite sliding. by the end of the day we recovered. did see strength yesterday as well as the yen just on the pound which is weaker. we've had industrial and production data which was stronger than expected 0.3% year on year. but the trade deficit widened and construction was a little bit soft so the pound slipping a little bit and the ftse slipping as well. >> and let's look at gold. biggest one-day jump in three months also seen as a popular safe haven right now trading higher by around another $5 at $1,284. bitcoin, many people call it the

digital gold has been gaining a lot of attention it's already up 200% so far this year and the rally continues up another 2% here. trading at $3,410 which that makes it another record high for the digital currency >> why we didn't invest all of our assets in bitcoin. extraordinary moves in digital gold today's top corporate story, facebook just made a big bet on video. social media site launching watch, a redesign version of its video platform it will roll out over the next couple of weeks. watch will include a mix of original content as well as live sports recommendations of what to watch will be personalized based on your interests and what your friends are talking about. this is facebook's latest push for tv advertising dollars ceo mark zuckerberg has said video will be the largest driver of facebook's business over the next two to three years. facebook is up in the dow. unrelated to that. but again, another sort of reminder of the heightened

competition in the content space on a week where we've had lots of developments there from the likes of disney pulling out of their movies from netflix and launching their own stand alone player >> a lot of people saying it's not just the social media war. it's the content they're trying to gain more from the bigger presence not just netflix but snapchat as well. >> live sports is an area that even though they've started to move in this direction, and tennis rights being thrown in. i think areas like that going to see prices go up for the content even further still and corporate news, tesla is reportedly developing self-driving trucks. reuters says tesla is working on long haul electric semitrucks that can drive themselves and move in platoons that automatically follow a lead vehicle. the company is reportedly in discussions with nevada's dmv to test the prototypes. last year tesla ceo elon musk announced plans for an electric truck. but there was no mention that it would be self-driving.

let's also get to some stocks on the move right now and take a look at 21st century fox reporting four quarter earnings. results were helped by higher fees towards cable channels such as fox news and fs1. but revenues missed forecast due to fox's broadcast on the earnings call ceo james murdoch weighed in on disney announcing plans to launch new streaming services >> we remain very open minded, you know, about independently priced direct to consumer offerings as well. we're mindful of what we're seeing in the marketplace and we're mindful of how these things are progressing for some other firms out there as they experiment with packaging as well >> let's look at shares up for 21st century fox higher by almost 1.5%. live nation reporting better than expected second quarter earnings the owner of ticketmaster and live event venues saw positive distributions from sponsorships

and ticketing. that stock up over 7%. let's also talk about planet fitness. beat forecasts revenue at the low cost gym chain rose better than expected 17% same store sales rising 9%. some more stocks to watch as chicago bridge & iron are falling today. reported a big second quarter loss as revenue fell 40% the company is pursuing the sale of its technology business down 17.5% jack in the box is rising today despite the restaurant chain reporting estimates. jack in the box and cokudoba posted up. el elf beauty forecasts rose the cosmetics maker is maintaining its full year guidance of 28%. slipping 1/3 of a percent in the

market we'll get a trio of economic reports. at 8:30 eastern, weekly jobless claims and the price index wholesale prices are expected to rise 0.2%. then at 2:00 p.m., look for monthly federal budget statement. and as for earnings, a lot of retail kohl's, macy's, blue apron, and canada goose reporting before the opening bell after the close, we'll hear from nordstrom and snap is there one you're looking forward to >> i think all of these retailers, i think it's crucial over the last couple of quarters still to come, president trump blasts mitch mcconnell on twitter. we'll tell you what the president said plus, why saefeverything is from awesome legoland when "worldwide exchange" returns.

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it's so fluffy! look at that fluffy unicorn! he's so fluffy i'm gonna die! your voice is awesome. the x1 voice remote. xfinity. the future of awesome. welcome back to "worldwide exchange." if you're just waking up, let's have a look at markets around the world. of course north korea in the eye of the storm right at the top of the screen no trading happening there, but in general red across the screens in asia. but not too pronounced given, of course, they are the region most likely to hit fallout if we see any military action and elevation of the current war of words. hong kong down over a percent today. shanghai off 0.4%.

a muted reaction continuing to be the consequence of what's going on there let's have a look at european trade. that's been soft this week germany down over a percent coming into today's trade for the week as a whole. taking down 2% for the week as a whole. we've had industrial production data out of the uk that was better than expected albeit a bigger trade deficit. that's down 1.1% the fts 100 down 0.5%. futures relatively -- only 0.3% or so for the nasdaq with s&p essentially flat and again today we are seeing declines dow down 0.2%. nasdaq more pronounced do down 0.6%. let's get to some stocks to watch including glencore reporting strong first half profits. the swiss mining and trading giant benefitted from rising commodity prices the company is raising its full

year guidance. it sees electric vehicles boosting demand. investors hoping for an announcement on the def deivide front. perrigo is raising its full year earnings outlook. that stock up over 11% and then the auto space, toyota is delaying the start of production at its new plant in mexico to the first half of 2020 the automaker had decided to begin making the corolla at the plant last week. shares of adecco having their worst day of the year. the staffing company reporting second quarter net income that was in line with forecasts but missed on revenue and sales. that stock down almost 5%. in other corporate news, wanda hotel development is buying $1.1 billion in assets from wanda chairman. shares rising on the news.

the plan will see wanda development travel which focuses on theme parks it's up some 20% in hk trade very much out-performing the market which is down all right. some big changes at lego land. after just eight months on the job, the toy maker's first non-danish chief is out. he'll be replaced by nooeeils christensen. lego sales grew 6% last year compared to an annual average growth rate of 18% over the past decade who knew >> do they have legoland in the states >> we do i believe it's in carlsbad, california, if i'm not mistaken? >> there we go one in florida, too, i'm being told but there's certainly one in and around the oxfordshire area. it's somewhere around there. >> and you've been >> i did it was a great place to go as a child. >> or last year. >> yeah. maybe last year. but it's always an excuse now with young children around you know, cousins and god

children we've got to take them still to come weeks after the gop failed to replace obamacare, there's still major finger pointing going on we'll tell you who the president is targeting on twitter right now. but first as we head to break, here's today's national weather forecast from nbc's bill cairns >> good thursday morning to you. hurricane franklin overnight made landfall in mexico. quickly weakening over the mountains. we'll see what damage was done when we get to daybreak. it does look like for the most part a rain event in the mountains on the coast minor wind damage. as i mentioned, quickly weakening. down to a tropical depression this evening that's at the high mountains just tears those apart the other story over the next couple of days, tracking this cold front and severe storms with it over the next two to three days today colorado, kansas by the time we get to friday, we track these storms into the ohio valley just quick-moving storms then unfortunately for our friends in the mid-atlantic and the northeast, actually have showers and storms ahead of this front for their saturday

afternoon. sunday does look a little bit better restra your business tvel foca more "worldwide exchange" when we come back i love you, couch.

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welcome back to "worldwide exchange." i'm seema mody with wilfred frost. let's get you up to speed on the market action. a tough day for wall street yesterday we did come off the lows of the day. but still the dow and s&p and nasdaq all closing lower seeing their negative session in a row. here on thursday premarket trades we're setting up for a lower open

the dow off by 40 points nasdaq down by 30. s&p 500 off by around 8 points this as oil prices continue to rise in fact, yesterday wti crude breaking a two-day losing streak that perhaps could continue. ice brent crude at $55.05. wti crude $49.78 just below $50 a barrel. to politics. president trump and mitch mcconnell publicly pointing fingers at each other. tracie potts joins us with all the details. >> good morning. they're pointing fingers at each other on health care an issue that took a break when congress took a break for its recess this month. the president tweeting, take a look at this, senator mitch mcconnell -- he is the republican leader on the senate side -- and i had excessive expectations but i don't think so after seven years of hearing repeal and replace, why not done

that from president trump. mcconnell previously said that the president had these excessive expectations and he told the president repeatedly that they simply did not have the votes to pass health care. so what's next congress comes back, but will they even have time to deal with health care when they get back first of all, they're facing a pretty hard deadline on the debt ceiling. the u.s. will default if they don't extend that or do something about expenses then they moved on a deal with tax reform that is now the focus here on capitol hill whereas the white house still wants to deal with health care. and at the end of september with just 12 works days when they get back, lawmakers need to deal with some spending bills and some important legislation so they may or may not even have a chance to get back to health care despite the back and forth that we're seeing here between the president and mcconnell. >> legislative agenda aside, how serious was this spat, war of words, between mitch mcconnell and president trump? it seemed less heated than some

of the public battles the president has had. and is mitch mcconnell still an ally of president trump's? >> it seemed like more of a reminder from president trump that we're not giving up on health care. this is clearly one of his priorities even though mcconnell and others have said they're moving on to the next thing, tax reform the president making it clear while he's not in washington and doesn't really have a chance to get in front of cameras he wants to deal with health care when they get back. but is that realistic? we'll see. >> tracie, as ever, thank you very much. in other political news, billionaire retail investor tom barack is in talks to become ambassador concerns about taking the ambassador's job because it would be challenging to sell his various assets around the world. now to other news. the wisconsin senate could

reject the trump-backed foxconn deal the senate doesn't have enough votes to sign off on the massive $3 billion investment. f foxconn could go elsewhere if not approved by the 30th he needs more time to do his due diligence on the huge incentive package proposed the s.e.c. is delaying an approval led by china based investors. the s.e.c. says its commissioners will review the proposed buyout potentially setting up a vote at an unknown date on whether it should go through or not coming up on "worldwide exchange," the latest on north korea. in fact, the country responding to president trump's threats plus, facebook takes on youtube. we'll tell you what's behind the social site's content push and your trading day set up with earnings and bed spe tpiakopng the agenda stay tuned we'll be right back.

a load of nonsense a war of words as north korea responds to threats of fire and fury from president trump. facebook is upping its video game the social media giant made a move into social content and trending today a giant inflatable chicken is set up outside of the white house. it's thursday, august 10th, 2017 and you're watching "worldwide exchange" on cnbc.

good morning and a very warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm seema mody in for sara eisen today. >> good morning to you all we're continuing to follow the latest developments out of north korea. that country issuing a new threat against the u.s. overnight vowing to fire four missiles in the waters surrounding guam north korea calling president trump's threats of fire and fury, quote, a load of nonsense. multiple news sources telling they have created a preemptive strike if needed we'll follow that developing story and bring you more when we get it meantime, let's check in on the global market reaction futures pointing lower today and more pronounced fashion for the nasdaq down just over 0.5% for the dow and s&p more like 0.25%. the dow 40 points. the nasdaq down 30 points. this comes off a day of declines making it two days of declines

albeit muted declines. essentially flat but just slightly lower yesterday for the s&p. we did see some broad risk off purchases. we did see the 10-year treasury note push to 2.21% at the lows of the day it's at 2.24% at the moment. let's look at the mood in asia stocks there closing lower for the longest time, global investors were overlooking the geopolitical threat. but given the rhetoric we're hearing from the president and the north korean regime, you're seeing geopolitics being a bigger concern for global investors. in asia stocks did close lower shanghai composite lowing by 0.4%. and the south korean kospi down 0.4% after two days of losses take a look at early trade in europe earnings have been a big story there. in fact, the earnings growth

rate in europe much higher than what we're seeing in the united states but right now geopolitics seem to be front and center in europe as well with the german dax down 0.7%. in france off by 0.5%. some disappointing industrial output numbers in france that, too, weighing on investor sentiment. >> europe down 2% now for the likes of germany week to date. dollar board for you which was moving higher at times yesterday. it was benefitting from the riskoff trade. but not as much as the yen was which moved higher still today you can see the pound and euro moving south against the dollar but the dollar itself moving south against the yen. so the similar trend happening today. korean won not moving too much down 0.2%. gold prices for you which did get a pop yesterday in the riskoff trade is up 1.3% up again today to $1,284 and oil prices to round things off are higher once again today. they were up 0.8% yesterday.

up 0.6% for wti today. $49.80 let's bring in jackie de angeles. >> good morning, guys. any time we have a threat like this on the table, there are two things that the market thinks about. i'm talking dollars and scents perspective, humanitarian concerns aside the market will say are we going to have a production disruption? or potentially if this threat proceeds, moves forward, are we going to have a boost in demand? when it comes to production, obviously the middle eastern regions are of the most concern. on the demand side, we could see a bit of a boost but the market is being cautious i think like the equity market as well. taking a step back watching to see how this plays out it's still sort of early in this dramatic tale, if you will >> standoff. >> right and the oil markets have looked at the global supply situation and said, we are very well supplied especially with the shale coming on right now not a huge reason to

worry. they're really stuck at this critical mark under $50 a barrel very, very tough to cross over so it's going to take something big to push that line. >> but when we consider stepping away from the korean issue where oil prices are at the moment, august much more settled closer to $50 than the month of july where we were down below $45. what's been the main transition to get us back towards $50 >> it's summer driving demand here in the united states. the weather has been nicer people have been hitting the roads. we've seen gasoline demand go up that typically happens every season it's something to watch for and we're seeing it happen later this year but still happening. then you have the weak dollar which is supportive of oil prices as well that really dramatic drop that we saw certainly helping this trade out. you know, a lot of people are saying nothing's changed in the supply/demand picture. when the summer is over, you're going to see prices will come back down because the market will start to balance. people won't be driving as uch the other thing to watch for today is the opec monthly report we've had reports and estimates

out that opec's production is rising they're not able to stick to this deal. and this report will probably confirm that today that is very troubling as well >> jacque, we look forward to your reports on that when it comes out. today's top corporate story, facebook just made a big bet on video. the site launching watch, a redesigned version of its video platform it will roll out over the knicks couple of weeks. watch will include a mix of original content as well as live sports recommendations of what to watch will be personalized based on your interests and what your friends are talking about. this is facebook's latest push for tv advertising dollars ceo mark zuckerberg said video will be their largest driver in terms of the next two to three years. the stock is off about 0.5% in premarket in line with the nasdaq's broader decline let's also talk about tesla. the automaker is reportedly developing self-driving trucks tesla is working on long haul electric semitrucks that can drive themselves and move in

platoons that automatically follow a lead vehicle. the company's reportedly in discussions with nevada's dmv to test their prototypes. stock right now basically flat on the day 21st century fox beating estimates. results from higher fees but revenues missed forecasts due to weakness from fox's broadcast and film units live nation reporting better than expected second quarter earnings the owner of ticketmaster and several live event venues saw concerts and ticketing and that one is up 7% more stocks to watch planet fitness boasting second quarter earnings revenue at the gym chain rose better than expected 17%. >> i'm so -- i'm a little surprised by this. i did a story on fitness where we tried out all these different studios across new york city and young professionals just

love these classes many of my friends, i'm not sure the same for you, are canceling their memberships at gyms. but results from planet fitness show there's still a customer base out there who prefer the gym. >> i do as well. i prefer the gym on my own >> do you now? >> yeah. >> but you don't get the social engagement and the jargon from the fitness instructors. >> i don't want the social engagement i bet you fall for that. >> i love it >> classes you push yourself harder, but i'd rather socialize in the bar keep the workout to myself. >> separate. okay everyone has their choices jack in the box is rising today. the owner of jack in the box hosted same store sales numbers that beat expectations up 2%. elf beauty reporting a second quarter loss excluding items beat forecasts as sales rose 27%. the cosmetics maker is maintaining its full-year guidance for sales growth of 24%

to 28% elf slipping 1/3 percent in the premarket. agenda there are three economic things to keep an eye out for we get the jobless claims and federal budget at 2:00 p.m. look for the monthly federal budget statement. and new york fed president bill dudley, he's speaking later this morning. as for earnings, a lot on the retail side. kohl's, macy's, blue apron, canada goose reporting before the bell after hearing from nordstrom and snap now time for the trending story this morning starting with a giant inflatable chicken meant to resemble president trump is getting some buzz on the internet it was placed near the white house yesterday as part of a protest. the 30 foot chicken features golden hair, pants that some say resemble president trump's >> some say. it's clearly meant to resemble him. >> he's not even there though. if they wanted him to see it, go

to new jersey. >> he's not much of a chicken though >> no. not at all. >> what animal is he most like >> oh, i don't know. the president of the united states i don't want to even go there. >> there we go that's outside the white house the mooch is headed to late night. anthony scaramucci will appear on "the late show" is stephen colbert on monday. colbert saying this is just a heads up for our censors to get ready. it will be his first interview since he was ousted from trump's staff after his short-lived time at the white house >> interesting choice to go with kolbcolber colbert. but colbert claimed its largest margin of victory in viewers last week. 3.2 million viewers. much higher than jimmy fallon. there's been a feud in late night. >> i agree to go late night either way other than a news organization in fact, when you think about it given the type of character that

the mooch is, it sort of makes sense now that he's chosen it. it'll be something to watch. >> we will all be watching closely. all right. another big story, samsung and live nation teaming up to give coldplay fans a front row seat to their next show yeah the pair will broadcast coldplay's head full of dreams tour live in virtual reality from soldier field fans will need a samsung gear vr headset with a compatible smartphone the concert will also be available for replay does this make you want to buy a vr headset maybe you have one >> i don't but it would typically except i'm going to the last night of that tour in los angeles in october. so i don't want to ruin it by watching it early. >> well, for everyone else >> i would suggest -- i've seen coldplay four times live already. my favorite band definitely >> i didn't know you were such a big fan. but this will incentivize more people to buy headsets not just coldplay. but if they're able to get beyonce and other big stars to

perform and only view that content with vr. with beyonce, i've seen her only once but enough to know it's a great show. >> if they make it really work on a vr headset, could be a big driver for the types o product meantime, harry potter's birthplace is officially on the market for $1.3 million. the home served as harry's home in the movie adaptation of harry potter at the deathly hallows. it's not the home where harry grew up. but rather where he was born and his parents died the second most photographed home in the uk i can't believe that >> this house is in suffolk switch a half an hour away from -- what my pronunciation say it >> suffolk. >> this is in a beautiful town where this house is. >> i agree but clearly these are ridiculous it's just where they filmed the film

it's like a film set it's not even a -- >> but so much history attached to it. >> no history relating to harry potter there's no history there's no history whatsoever. it's a fake history. because it was a film set. but i still -- i take issue with the claim we're saying it's the second most photographed after -- 10 downing street can't even be photographed i think those statistics are wrong. i apologize. but even the outside you have to have security passes, press -- >> we have taken photos outside. >> because we have press clearance. it's definitely not the most photographed in the whole of britain. where places like buckingham palace likely are. we'll get back to you on that. and to sports. golf's fourth and final major of the year tees off in just a couple of hours. the pga championship is being held in charlotte, north carolina the defending champion jimmy walker but the favorites going in are rory mcilroy, jordan spieth who won the british open last month.

if spieth wins, he'll join just six other golfers who have completed a career grand slam winning all four majors. your golf stats of the day >> i actually watched the open this time around got quite into it. >> did you >> yeah. well done to spieth. i think he might do it we'll see. coming up on the show, new york's liberal subway war. must reads are ahead. >> but we have to check on the trade in europe. soft across the board. artsoweading the mke ler back in a couple of minutes. 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.

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. welcome back to "worldwide exchange." i'm wilfred frost along with seema mody this morning. now to the must read stories my picks in the financial times is titled "trump's rhetoric on north korea is a dangerous echo of pyongyang." shawshank joshy writing pong youi can't think must know that it will invite damage there's no problem in mr. trump saying so. but such threating must be delivered with solemn precision. this goes through when various leaders have drawn red lines or made threats in terms of rhetoric and whether they were successful or not. and the very careful timing precision with which they were worded clearly president obama made a red line threat which wasn't stood to and basically criticizing not necessarily the intention behind

what president trump's been doing but the looseness with which he's done it on various tweets a good analysis of that and various other red lines drawn over the last hundred years or so >> the rhetoric is a key part of this story all right. my pick is on "the wall street journal. "new york's liberal subway war." the editorial board writing the city's train service has deteriorated of misspent resources have led to only 61% of trains now reaching the st e station on time. it is so unreliable for the weekday passengers that more than a third of the riders surveyed said they've been reprimanded or lost wages because of the tardy trains. long island's brew point brewery is even releasing a beer called delayed pilsner. those of us living in new york can empathize. it is tough. half the trains you take or more are delayed. >> but i still think overall it's a good service. >> overall but i would say that you would

agree with me especially having used the london tube which i find to be very efficient. >> the upside ground in london is better and cleaner. but the way people talk about the subway before you move to new york, you get here and you're like it's pretty good, pretty efficient relative to the way it's talked about. >> overpromised, underdelivered. >> exactly we're approaching the top of the hour we're getting ready for "squawk box. that means becky joins u >> good morning. the only reason you think the subway is not so bad is because it's 66 degrees in august. if we were getting our typical hundred degree 100% humidity, those tubes get hot down there >> the tubes don't know. they're air conditioned. i agree -- >> standing on the platform like -- trying to dress for work >> but the contrast is the summers are cooler in the uk you don't have air conditioning on the tube itself either. there we go. tradeoffs. >> all right, guys we have a lot of things coming up this morning. you were just talking, wilf, about north korea.

this war of words. things that have been playing out. we're going to be joined by admiral nicolas burns to talk about some of the many bad alternatives that are out there when it comes to north korea and maybe what we hope what the best case scenario might be we're also going to talk a lot this morning about what to expect with tax reform there's been a war of the words out there. even between members of their own party, the president and majority leader mitch mcconnell going back and forth about some of the timelinings mcconnell saying some of the timelines imposed on congress have not been at all something that's been realistic. that's why it looks like nothing is getting done. trump saying it's been seven years, why don't you have health care reform done this all brings us to the next item on their agenda which is tax reform we've got senator ron johnson who's going to talk to us this morning about what he sees happening in that arena. he also made some comments yesterday about health care reform in regards to john mccain's vote on that. we'll talk to him about those comments as well our guest host from 6:00 to 7:00 this morning is guy adami of

"fast money" fame. plus our guest host from 7:00 to 9:00 this morning is david rubenstein from the carlyle group. he knows very well what's been happening in the markets private equity always has a longer term horizon. we'll see what he thinks right now if anything looks like it's cheap. if you can find bargains to the market and what his exit plans are and how he plans to take some of those companies and spin them out and make a profit it's coming up in just a few minutes. we'll see you in just every an hour >> we look forward to the start of the show at 6:00. up next here on "worldwide exchange," should investors be worried about that war of words that becky mentioned between the 'ls. and north korea wel talk about the riskoff trade when "worldwide exchange" returns. ♪ top speed fifty knots life on the caribbean seas ♪ ♪ it's a champagne and models potpourri ♪

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around 30 points 0.5% the dow down 30 points itself. joining us now peter boockvar from the lindsay group good morning always lovely to see you bright and early. let's talk about the riskoff trade which has come on a little bit in light of the north korea threats but not in too pronounced fashion. >> it was an amazing rally day yesterday. outside of the dow, the s&p underlying stocks were somewhat weak yesterday the russell 2000 closed down i like to look at the value line geometric index which is about 1700 stocks and it's equal weighted there's a stark divergence between the s&p and that index >> but the move we've seen in global trade or global stocks, i should say, is this a sign that investors are starting to listen to geopolitics and account for it >> i always discount geo politics in terms of a long

lasting effect on markets. usually it's short-term. what's most important for the market as we get into august and september is what the fed and ecb are going to do. look at earnings look at the market reaction to earnings i mean, if you -- it was very disappointing, actually, the stock market reaction to most earnings if you beat handily, well you got rewarded most companies that met or even had a slight beat or had issues with guidance sold off hard. i mean, even just yesterday when we saw with disney and there was a laundry list of companies that got damaged pretty hard from earnings i think that was a tell we priced in this good news at least for now. >> if we consider other asset classes, jamie dimon said he wouldn't buy government debt anywhere around the world right now. would you agree with that view >> certainly but we could have said that awhile ago i'm most worried about the european bond market because of yields being so compressed as draghi may be tapering further that's the center of a major

bubble that could have major implications if he follows through. >> and does european tapering push up globally can europe lead the markets globally >> i think so. and that's the tug of war. you have a dragdown on worries at the same time the fed is raising interest rates so drag it down. but on the upside, if draghi does follow through and the 10-year german bund yield goes to one, that can be a drag higher in u.s. interest rates. we're in this global bond bubble together and working to be highly correlated. >> central banks, north korea earnings, but also a critical economic report coming tomorrow in inflation how important is that for the ability to hold onto the gains we're sitting on right now >> it's relevant but the fed is telling you they're focused on the labor market tightens, the implications that has for wages. and that may be more of a driver in what they do in december rather than the next few cpi or pc numbers >> coming back though earnings

that you said you were perhaps disappointed by selloffs, you've been relatively bearish on equities quite some time but earnings seasons for the last two or three quarters have been the main support factor making that selloff that you protect not come do you think it's going to come through over the nextcouple of months >> well, earnings, we priced in earnings twice last year earnings were zero earnings growth. the market was up 10%. we rallied another 10% on the 10% earnings growth. so stock market is run well ahead of earnings and there you have this p.e. multiple expansion. the question for markets is as central banks pull back, do we see that compression i argue yes. >> peter, thank you very joining us pleasure as always peter boockvar of the lindsey group. that's it , really, for "worldwide exchange" today >> gold moving higher as well as the safe haven trade continues to garner attention. >> blue apron, retailers on the docket in terms of earnings. that's it for "worldwide

exchange." "squawk box" is coming up next thanks very much

good morning war of words north korea hits back at threats of fire and fury from president trump calling it a load of nonsense we've got the latest on that story straight ahead and watch out, youtube facebook launching an attack on video. we have a look plus retail is in focus today. three big consumer names to report what's expected from macy's, kohl kohl's, and nordstrom. "squawk box" begins right now. live from new york where business never sleeps, this is

"squawk box. >> good morning, everybody welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. joe is out this week but for the rest of this hour, guy a dami is here >> thanks for having me. this is great. >> we've got a lot to dig through this morning let's start with the u.s. futures. yesterday you saw some pressure on the markets the stocks actually recovered late in the session. came back to pair the losses ended near highs of the day. but you were still looking at the worst day for the dow since july 24th. the stocks were only down by about 36 points. this morning you see some additional pressure. dow indicated down by 32 points. s&p futures would open down by 26 take a look at what happened overnight in asia. that's where a lot of the focus has been with this war of words we've seen wit