a record run all three major averages hit new highs. china crackdown. president trump just blocked a big beijing-backed deal over security concerns. and behind bars. the pharma bro martin shkreli jailed after asking for a lock of hillary clinton's hair. it's thursday, september 14, 2017 "worldwide exchange" begins right now. ♪ good morning very warm welcome to "worldwide exchange." i'm wilfred frost.

>> i'm seema mody in for sara eisen. it is throwback thursday we are throwing it back with the clash "i fought the law. >> in honor of martin shkreli, perhaps. >> i think so. >> i have a feeling later in the show, given l.a. being awarded the olympics, we'll go back to california themed songs. let's check in on markets. slight gains yesterday it is a ha behas been a decent k five positive sessions out of six for the dow. we had a good start to the week. it's managed to hold on to that. yesterday's gains were not particularly pronounced. today we are called lower only fractionally in the premarket. down a point or so for the dow ten-year treasury note, back above 2.2% very briefly closing just below it that's where we remain at moment, 2.194% given that last week, we touched

2.05, it's been a marked increase in yields with that we have had an increase in the u.s. dollar as well >> now to asia, we did get a barrage of data from china mostly the data came in weaker than expected. fixed asset investment, factory output and retail sales grew slower than expected chinese equities did trade lower, down 0.4% a similar story in hang seng the hang seng still trading at 20-month highs the japanese nikkei closing dow 0.3% the stand out was the kospi on better than expected retail sales data let's switch focus to early trade in europe where we'll see if europe followed asian markets lower. mixed at this point. perhaps in standstill. we have the swiss national bank meeting. on that note, look at the swiss

franc, it's been trading lower against the dollar the swiss national bank keeping rates unchanged. it cut its 2017 growth forecast and said the swiss frank remains highly valued and the situation in the foreign exchange market is fragile they're referring to the strong appreciation of the euro >> let's look at other currencies a lot of focus on the british pound ahead of the bank of england meeting, the last meeting only 2 of 8 members voted to increase rate it's now back to nine members, the vote expected to be 7-2 for not raising rates. 1.32 the pound not much movement today. a little bit of dollar weakness after a decent gain in the dollar yesterday yields rose, the dollar rose oil prices quickly for you up 2% yesterday. up nearly 4% now for the week as a whole. sitting flat today

49.3 the price of wti. >> we're following a developing story out of north korea the nation threatening to use nuclear weapons to sink japan and reduce the united states to ashes and darkness the sharp rhetoric comes days after the u.n. security council unanimously approved tougher sanctions on pyongyang north korea called for the breakup of the u.n. security council saying it's a tool of evil that moves at the order of the united states. we will monitor the situation closely and bring you new details as we get them president trump and congressional democrats appear to be close to cutting a deal ts the news come after the president held a dinner with chuck schumer and nancy pelosi white house press secretary sarah huckabee sanders tweeted that excluding the wall from the deal was certainly not agreed to >> keeping it in washington,

president trump blocking a china-backed investor from buying an american semiconductor company over national security concerns the white house saying that the national security risk posed by the transaction relates to, among other things, the chinese government's role in supporting the transaction. this is just the fourth time in the past 27 years that a u.s. president has blocked a deal like this. shares of lattice responding, taking a dip late yesterday on the news but rebounding here in early trade. getting response from china to the blocked deal let's get to eunice yoon live in beijing with details >> thank you very much well, china had a standard reaction to any steps that foreign governments take to try to curtail business activities overseas they cried protectionism the commerce ministry expressed concerns saying we believe

conducting a security review for an investment deal in sensitive sect is a country's legal right but should not become a tool to promote protectionism. we hope the relevant country can see such form business activities fairly and objectively. the press went one step further with the idea that china is the one being played unfair over here the communist party paper, the global times, pointed out in an editorial that china is not even in the top ten when it comes to foreign direct investment compared to the uk, japan, or germany. instead they also pointed out that nearly one quarter of cfis cases involve chinese cases. cfis is the committee that reviews the foreign investments. the paper went on saying it is disturbing to see the u.s. plans to expand cfis reviews of chinese investment in other so called sensitive technologies such as artificial intelligence and said as more chinese

companies seek to invest abroad the u.s. may lose an opportunity if it insists on protectionism we heard the threats before from the chinese but so far no steps have been taken after trump's decision in other global political news, the u.s. department of homeland security ordered all federal agencies to stop using software made by kaspersky's labs they are concerned about ties between officials and russian intelligence agencies. the cybersecurity software is widely used in the united states in the public and private sector kaspersky labs says it is disappointed with the decision on president trump's agenda today, he'll head to florida to assess the damage there. more than 3 million people are still without power in the state following irma this morning we heard from a

company that's taking a hit following the storm. insurance firm munich re saying it may not hit profit targets because of hurricane harvey and irma this also follows new there's travelers that they're suspending buy backs. tesla's semi was supposed to be revealed this september, the date is now set back elon musk saying the battery powered beast is worth seeing in person this could be a big one for them shares of tesla this morning slipping a little bit. >> still up 85% over the past year at delivering alpha jim chenos saying he is still short the stock. >> he stuck to his guns on that. shares of tenet healthcare are jumping on the reports that the company hired advisers to explore options including a

possible sale. last month the hospital operator said it would replace its ceo and board members under some pressure from he glenn view capital. joining us on the cnbc news line is cheryl skolnick from mizuho is this sale realistic and who are the possible buyers if it's someone in the sector? >> i think it is not impossible, but i think it's highly unlikely and not exactly easy to do the obvious thing that our clients at mizuho are trying to figure out is whether or not hca, the largest publicly traded opt company in the u.s. would be able to make a deal buying the entire company work. we've done some math, which, of course, is subject to a lot of assumptions that may or may not

be realistic but we've done some math that suggests on paper it could be done but it's certainly questionable whether or not it should be done especially given that in the overall fundamental environment we see declining demand for in patient opt servihospital servi, emergency room services and overall reduction in margin as best margin patients are moving to other settings. it would be challenging. could see private equity come in, but this is a highly levered company with more than six times leverage and we actually don't expect that to change terribly much over the next several months >> sure. >> or you could see it broken up there are news reports out there from the credit side of the world that say the company would rather explore selling the whole thing. so perhaps there might be strategic buyer from abroad. >> cheryl, just curious, what other strategic options ten n s

healthcare has the if this buy doesn't work out, are there other spin-offs that tenet could have to appease glenn view capital >> certainly i'm not sure that's always the right -- appeasement is the right strategy but there are strategies they could pursue they have a division conifer which is on the revenue cycle management business that could fetch nine times ebita with the stock trading at eight times that is something that could work we don't necessarily think that it will reduce leverage terribly much, but it will give them cash and capital. uspi, their outpatient surgery service is an attractive asset, one they recently bought part of and then more of and now still can buy the rest of it however i think should they want

to separate that business from the underperforming low margin hospital business, shareholders would be left with a remaining company that would be unattractive i would hope people would do the math on that and understand that well >> cheryl, we have to leave it there. thank you very much for joining us this morning. cheryl skolnick of mizuho. now if you thought the pharma breao saga was over, thik again. martin shkreli is behind bars for a facebook post that was deemed threatening meg tirrell has more >> it's bizarre but not bizarre when you think about the story of martin shkreli. he came to fame by raising the price of a drug by 5,000 percent. martin shkreli has been remanded into custody his bail has been revoked and he

has been sent to prison after posting a few bizarre posts about hillary clinton on facebook, seeming to offer his followers $5,000 for one of her hairs, he updated the facebook post to say it was satirical, but prosecutors said it was part of a pattern of threats and harassment he apologized to the judge, and the secret service, the prosecutor said, had to get involved he said he never intended for this to get out of hand. his lawyer said it was joke. the judge was having none of it. >> how common is it for things like this to develop out of simply a social media post or was he asking for the trouble. >> also shows the power of twitter and social media >> shkreli used it to his advantage and now his disadvantage i talked to some attorneys yesterday, nobody thought that

he would get remanded into custody yesterday as a result of his posts. people criticized his behavior for not apologizing, saying that could weigh heavily on him, but they thought that would weigh more on sentencing we do have a statement that his attorney made outside the courtroom yesterday, just a brief statement to reporters let's take a listen. >> we are obviously disappointed we believe the court arrived at the wrong decision but she's the judge. right now we will have to live with this decision it's unfortunate it was unfortunately avoidable, but the judge has ruled. she's the judge. >> shkreli's sentencing set for january. >> his bail has been revoked, he's been convicted of three of the eight charges. is there a longer term sentencing expected in 2018? >> we don't the guidelines yet

it could be complicated d investors lose money they made money later. that will impact the guidelines for sentencing >> thank you very much as always still ahead on "worldwide exchange," we have full coverage of the record rally and equifax heading to the hill. congress demanding answers u'ating "worldwide exchange" on cnbc. and found this. cd's, baseball cards... your old magic set? and this wrestling ticket... which you still owe me for. seriously? $25? i didn't even want to go. ahhh, your diary. "mom says it's totally natural..." $25 is nothing. abracadabra, bro. the bank of america mobile banking app. the fast, secure and simple way to send money.

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welcome back to "worldwide exchange." it's been a decent week for equities around the world and risk assets. just losing steam as we end the week asia down.4% 0 0.3% for the nikkei. earlier the neeikkei bounced bak let's look at european trade a story of decent performance in general for germany. mixed eltsewhere. germany is giving up some of those gains. down 0.3 we're looking for the bank of england decision in a few hours, not expected to hike rates but the pressure is increasing inflation there 2.9% u.s., similar story. gains for most of the week yesterday we had a third of a percent of gains pausing as we near the end of the week >> joining us now is the global market strategist at jpmorgan

asset strategy great to see you from london how you have been? >> good. how are you? >> great let's talk about the bank of england meeting, that announcement expected. i guess consensus is that we won't see any type of rates, rate change, but i guess it's all about the commentary from mark carney. >> exactly it will be tough for the bank of england to raise interest rates this year or in the early part of next year until the real wage growth in the uk starts to pick up at the moment it's shrinking we remind ourself that the uk gdp figures are 60% made up of consumption. but we are looking today for commentary, the one challenge is that inflation at near 3% is higher than the 2% target. how the bank of england verbalizes this challenge of keeping inflation lower, whereas still trying to protect and support the uk economy as it goes through the brexit period will be pretty interesting this

afternoon. >> of course yesterday we saw a move higher in the dollar against most currencies. that as yields have risen significantly over the course of the last week or so. what's your take on how much further there is to run in that? is the dollar now set for a stronger rest of the year having been weak most of 2017 >> there is potential for strength in the dollar we do see support from higher yields in the u.s. the fed staying on their policy normalization path, and a few other weaker currencies around the world. the big trade as well as the euro usd and strength for the euro coming through throughout the year how that plays out in the trade weighted dollar is going to be interesting. the bigger picture is the fed is on track to unwind the balance sheet and we expect the ten-year u.s. treasury yield to increase bringing the dollar along with it, giving it support towards the end of the year. >> september has been a very strong month for global equities, specifically europe. the dax is up 4%

but this as the euro has been gaining as well. why do you think the dax is up even though the euro has been appreciating >> i think it's investors realizing that a stronger euro doesn't necessarily mean weaker european company earnings. we looked at a lot of different companies and how they're sourcing earnings. some get earnings from abroad, the domestic growth story has been strong, focusing in on the smaller companies, medium companies that can access the strong macro growth in europe is one way we do like european equities >> finally, in terms of the euro itself, what is your view on that do you think they'll taper or hike quicker than the fed? >> we do expect the european central bank, the ecb to announce some clues about how they'll wind down their asset purchase program in the october meeting. we expect them to get from the 60 billion euro purchases a month down to zero over the curse of 2018. that has, of course, already strengthened the euro quite a

bit. we don't expect that same strengthening to continue with the euro, we could expect upside going towards the end of the year on the whole we have to remind ourselves that the ecb is doing this because the macro situation in europe is so good and appreciation in european assets should be expected, whether in the euro currency or the equities market itself. >> >> thank you very much for joining us this morning. still to come, the fast food battle that has the internet buzzing. why wendy's is throwing major shade over a rival chain as we head to break, here's the national weather forecast from bill karins good thursday morning to you. hot conditions continue in florida. you know, they don't get a break until october. that's the problem, when these hurricanes hit, then the power goes out, day after day with the heat index in the afternoon near 100 degrees. you can imagine how hot it can get in some of those apartments

and houses not much relief through the weekend. people just sitting there waiting, hoping the power can get turned on sooner than later. even into next week, upper 80s to 90 degrees. watching jose. this storm will be with us for the next five to seven days. the key to the forecast is how far west it goes right now it's barely a hurricane. it will take a turn to the north. we have to watch closely areas of eastern new england as we go throughout the early portion of next week. a couple days to watch that. that's youbune tver sissral forecast more "worldwide exchange" when we come back on its own. we're all working forward to something. synchrony financial can help your customers make it happen sooner. so she can plug into her dreams... and they'll have a new addition for their new addition. whatever you're working forward to, even if it's chasing squirrels, synchrony financial can help you get there.

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a big guest lineup on cnbc today. don't miss cbs president and ceo leslie moonves later this morning on "squawk on the street" and verizon c ceolowell mcadam will be on. and later on, chamath palihapitiya will be on the half time report at 12:30 eastern time this afternoon. he was great at delivering alpha. will be good to hear more of that in specific tv format >> all right some stocks to watch this morning, united natural foods reporting fourth quarter earnings that beat forecast. the company expects full-year results to come in above estimates. samsung created a 3$300 million fund to invest in automotive startups and self-driving technology.

the company's first investment is $89 million in tshgtete tech. equifax says a web server flaw in its open source software led to the breach that compromised data for up to 443 million u.s. consumers the company's ceo, richard smith, is expected to testify before a house panel on october 3rd. nearly 40 u.s. states joined a probe into how equifax handled the breach still to come, a test for u.s./china relations what president trump just did that could heighten tensions with one of our most important trading rtrspane we're live in washington with the latest

stocks set new highs once again. the s&p 500 closing in on 2500 what that psychological level could mean to invest sgleeors. president trump finding democratic friends in congress and let the games begin. olympic locations have been awarded. we'll tell you who is hosting straight ahead it's thursday, september 14, 2017, you're watching "worldwide exchange" on cnbc. ♪ good morning a warm welcome

to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm seema mody in for sara eisen. it's throwback thursday. a little red hot chili peppers here starting with californication. >> why >> it's a good song. >> and l.a. got the olympics i would have preferred the song from the o.c >> the intro song. of katy perry, california girls. >> i don't know that one >> i'll spend it to you via spotify. let's check global markets it was a record day on wall street we've seen three record closes for the s&p 500. renewed hope for tax overhaul, a tax plan for not the rich but the middle class that was the message from president trump. paul ryan also making comments on tax reform. futures now are pointing to a lower open dow jones down 2 points.

nasdaq 6 yesterday it was financials and retail stocks that led the rally. even energy outperforming on the back of oil, which was higher on an optimistic read on oil production from the iea. let's look at ten-year yields. optimist over tax reform led to yields of the u.s. treasury notarizing yields right now 2.19% still the story this week has been yields moving higher. sharp contrast to what we saw last week. >> i like the fact you used albeit there >> a little british for you. >> you had a good year in london it's rubbed off. asian equities, lower by 0.p% for the nikkei, 0 fro.4% for hog ko kong european trade, we had the dax on a decent run, it is down 0.3

today and a bit of positivity in the uk after a negative week so far. >> a lot of market cues have been coming from the commodity markets. oil, it was a strong day for wti. oil prices gaining the iea data showing an oversupply of crude that was beginning to shrink. ice brent at 55.31 higher by 0.3% wti crude up $49.54. let's look at currencies ahead of that bank of england meeting announcement, we already heard from the swiss national bank they kept rates unchanged. will the bank of england do the same that's what analysts expect. the pound at 1.31, slightly lower against the u.s. dollar. the dollar and japanese yen have ban focus with geo ppolitics on the radar. we are following developing

story out of north korea the nation threatening to use nuclear weapons to sink japan and reduce the united states to ashes and darkness the sharp rhetoric comes days after the u.n. security council approved tougher sanctions on pyongyang. north korea also called for the break up of the u.n. security council saying it's a tool of evil that moves at the order of the united states. we'll bring you any news as we get it that threatening rhetoric has not really significantly derailed markets the nikkei down 0.3% >> we are keeping a close eye on russia as that nation kicks off a week of war games. some 1200 troops, 250 tanks and ten warships are taking part in the military drills. nato expressed concern over the exercises saying they could be practice for aggressive action against the eastern european neighbors. the drills are russia's largest in almost four years

president trump blocking a china backed investor from buying lattice over a national security concern shares of lattice took a dip yesterday on the news, but rebounding by 0.8% let's go to eamon javers who joins us with more on that story. kind of a surprise here but maybe not. >> this is the fourth time in 27 years we've seen a president block a deal like this this was not unexpected given the sensitive nature of the technology at stake here and the nature of this new administration which is much more protectionist by default. the committee we're talking about is the committee on foreign investment in the united states they review these deals in which a company is buying sensitive technology inside the united states they made the recommendation not to go forward with this. the president concurred with that here's the statement from the white house.

they said that the national security risk posed by the transaction relates to, among other things, the potential transfer of intellectual property to the foreign inquirer the chinese government's role in supporting this transaction, the importance of semiconductor supply chain integrity to united states government and the use of lattice products by the united states government. lattice says we are disappointed in today's decision by the president of the united states to forgo what we believe to be an excellent deal for lattice' share holders and employees by expanding the opportunity to keep jobs in america so, the company there very much framing this as an opportunity to keep jobs in the united states that's a line of argument they hoped would win the day with the trump administration obviously it did not >> also let's move on and talk about president trump's dinner

last night is he seriously buddying up with the democrats now? is this just a small development? >> i think there's something going on here. they're talking over at the trump white house about bipartisanship in a way you have not heard so far this year so far this administration i talked to mick mulvaney the director of the office of management and budget yesterday about all this he said look, the president simply is frustrated with the pace of the way things have gotten done or not gotten done so far this year he's looking for different solutions. in terms of where we go from here he's looking to reach out to democrats and work with them even though he called them clowns and losers in the past. now sarah huckabee sanders yesterday saying he wants to work with them now we have this dispute what happened at this dinner last night we know that nancy pelosi and chuck schumer were invited to the white house to have a dinner with a number of white house officials talking about the fall agenda coming out of it nancy pelosi and chuck schumer said they had

a deal we have some statements here we can pull up. there are conflicting visions here for what the deal is. the statement from schumer and pelosi, we had a productive meeting at the white house with the president. the discussion focused on daca, we agreed to enshrine the protections of daca into law quickly and work out a deal ultimately they say. a package of border security excluding the wall that's acceptable to both sides they say excluding the wall. that's president trump's biggest campaign promise the white house put out their own statement on this. they are disputing the tenor, if not all of the substance of what it is that the democrats had to say. they say while daca and border security were discussed, excluding the wall was certainly not agreed to. so what did they agree to? it sounds like some sort of deal involving a daca fix, what the democrats call enshrining the

protections of daca for immigrants brought to the united states as children, who are now older adults and children. enshrining it for them and border security funding but not wall funding that sounds like the deal here, but we'll have to see. there's some conflicting visions for what it is >> that deal or half deal aside, what are the republicans in congress thinking about the president's dinners and conversations with democrats >> you know, you notice that mitch mcconnell and paul ryan, the republican leaders in the house and senate were excluded from that dinner last night. through see them sitting with the president and the democratic leaders last week. last night they were excluded. sarah huckabee sanders was asked about that she said no need to have a concern that there won't be enough republican point of view at this meeting because the president is the leader of the republican party he'll represent the republican point of view. i'm not sure that's comforting to conservatives up on the hill.

steve king, conservative house member put out a tweet last night on this potential daca deal he said if this deal is true, trump's base is blown up, destroyed, irreparable that's the kind of reaction they're getting from conservatives on capitol hill. >> thank you very much we'll hear more from eamon this morning when he is joined by mick mulvaney. 8:45 a.m. eastern time. sean spicer back in the hot seat the former white house press secretary stopped by jimmy kimmel live last night he discussed trump's twitter habits, fake news and melissa mccarthy's "snl" impression of him. kimmel questioned spicer about the trump crowd size >> it's the day after the inauguration, you are charged with the job of going in front of the press and saying that the inauguration crowd was the

biggest crowd, i think, ever -- biggest audience ever. >> yes, i'm aware of that. >> yeah. >> look, your job as press secretary is to represent the president's voice, to make sure you are articulating what he believes his vision is on policy, on issues, on other areas that he wants to articulate whether or not you agree or not is not your job. >> mr. spicer. good to hear from him again. >> yeah. but like scaramucci he picked late night tv to set the tone after leaving the administration, went to jimmy kimmel also interesting, people on twitter talking about his demeanor, very different than what we saw as press secretary sleel slightly calmer, laughing arc bit pore relmore relaxed, but re in his defense of president trump. as expected. >> wendy's twitter account has the internet buzzing once again after someone tweeted how do you

compare to carl's jr.? the wendy's rival, carl's jr. replied lol, they don't. a few hours later wendy's fired back saying if we were going diss another restaurant, we would have more than zero likes and retweets after 12 hours. corporate america taking it to twitter to duke it out >> fight on. i like it. it's official, the international olympic committee has awarded the 2024 summer games to paris, and the 2028 games to los angeles l.a.'s bid committee had ceded the 2024 olympics to paris for millions of dollars in financial incentives this is the third time los angeles has hosted the olympics and the first time since 1984. city officials say they can stay on budget by relying on existing

stayed ups adiums and arenas this will be the third olympic game for paris, but the city has not hosted it since 1924 two awesome cities >> happy 2028 it comes back to the u.s. coming up, today's must-reads including an extensive interview with the first daughter and presidential adviser ivanka trump. as we head to break a look at trading picture in europe now. mixed. the ftse 100 slightly higher waiting for that boe announceme announcement your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide.

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on what matters to you. morgan stanley. welcome back to "worldwide exchange." time for our must-reads. my pick is in "the financial times. i will not be distracted by the noise is the title an interview with the first daughter, ivanka trump a series of interviews that comes out in the ft this weekend. she says whether my contribution ultimately lives up to expectations of some of the harshest critics, only time will tell i won't be distracted by the noise. that's the closing line of what is an 18-page article. i managed to read half of it on the way in i didn't read it all, it only hit early this morning interesting she picked "the financial times" for her first set of interviews. detailed, long interview and exploring her views. also goes through the details of

how she period about president trump's reaction to the charlottesville issue and addresses a controversial issue close to the fist family's heart. >> i didn't get through the full article or interview either, but interesting to get her perspective or lens on what's happening in washington. my pick is in the "wall street journal. "americans get richer. a new u.s. census bureau report offers economic hope last year real medium household income rose 3.2% the second consecutive increase as 2.5 million americans rose out of poverty these gains may not be notable but keep in mind that real medium incomes declined while poverty increased during the obamapresidency. we are much more critical of the global economic recovery in the u.s., we look at whether the fed should raise rates today we get an important piece of data, that's inflation.

consumer prices are due late this morning of course coming ahead of that critical fed meeting in october, and i think it's also important to note that medium incomes at the end of the day are on the rise t they finish the article by saying the best way to celebrate this is by congress reforming the tax code >> a big rise in yields this week spurring the dollar higher. we're approaching the top of the hour, "squawk box" is coming up. joe kernen has a look at what's coming up. >> cleveland again, dude that's your story. you're following that. >> you know i love that one. >> they only have one team left, the new york giants from long ago had 26 straight. stay on top of that. have you been to a yankees or mets game? >> i haven't baseball i have missed nfl i have done. basketball >> tennis.

>> but that's not really an american sport >> no. >> but the american women dominate the sport but not really a -- >> outstanding >> we'll talk -- you saw this classic dinner last night. i guess we'll talk about that a little bit somewhat different versions of what actually happened swirling around either way, for some reason i just take satisfaction with republicans that are like, what's happening you guys, you're supposed to be governing, you kind of had your chance, and now they can't believe it, that trump is going around them. it's like -- it's funny to watch. i don't know why i'm taking satisfaction -- >> did you ever have dinner with your enemy to shake your friends? >> usually it's the enemy of my enemy. if someone does a deal with chuck schumer and nancy pelosi, i would be like -- for some reason i like it

i'm takes satisfaction i don't know why we have kevin mccarthy on today. we'll see how he feels about this we also have mick mulvaney, who has been all over the place talking up tax reform and other things we'll get his take on that and one of my favorites always, if you have trouble figuring out how to present the private sector conservative side, arthur brooks is the guy to do it of the aei he can -- by the time he's finished, i don't know anyone who doesn't realize the path to prosperity and to economic freedom comes through free markets. >> you think he could even convince this european socialist, joe >> no. no you have to have been raised in a place where there's some -- you have some idea of how things are affected >> okay. i will listen in i'll let you know if i changed my opinions. >> i paid andrew a dollar a page

to read one of arthur brooks books. i think it was the road to freedom. i paid him it didn't help i won't do it again. you note index in the back, there's 40 pages listing references and stuff he charged me for that, too. >> my price is a little lower, but, you know, as long as -- >> is it in pounds >> yes that bounced back a bit. >> your brother willem was in here yesterday do you know willem >> i know him very well indeed >> i thought it was your brother. i swear to god i did. >> he's -- >> he's really handsome, too and tall >> you're too kind to both of us, i think. >> i don't think soch i'm accurate >> thank you very much >> you're welcome. coming up, north korea has been threatening the world, yet market volatility has remained low. our next guest has the answer as

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exchange." li let's discuss markets. michael purves is with us. one of the stories this week is record highs in the equity market but also a bounce back in the dollar and increase in yields do you think that bounce back in the dollar and increase in yields can continue hoo frfrom ? >> one thing i'm interested in is what's happening in china and how that is washing ashore in the united states. the break-even inflation rate, nominal yields, and by further extension the dollar you know, if you map the chinese ppi over the last 12 months, the reflation story in the u.s. correlates closely with that in q2 of this year you saw a dip down in that chinese sort of ppi -- the producer inflation story. you saw that echoed here

what you've seen in july and august is actually sort of a resurgence here. it's not by any stretch, you know, clear that this chinese driven reflation is going to continue i think it's something to be watchful for there's a condition where if you look at our break even rates in the u.s. on the ten-year side, those are been climbing aggressively last week the ten-year treasury yield got bid aggressively almost to 2.0% it's come back, but there's so many people, the trade is crowded now long treasuries, if you look at futures positioning. there's a real chance here where i think we'll see what print we get this morning on cpi, we could see the ten-year cruise up to 2.3, 2.4% easily. >> this global inflation story that you touch on not just in the u.s. but in china, what does it mean for the direction of stocks the s&p up 1.6% just this week

>> for the s&p or the dow overall, it's somewhat nuanced message. if you go beneath that into the sectors, that's where you will see some of the -- some of the stuff really expressed for example, utilities have been on a tear. those will be vulnerable if we see a renewed reflation theme. bank stocks should do better depending on -- there's even a case where small caps, which tend to travel with the ten-year yield, where those could actually start outperforming again. >> 30 seconds left do you like international equities more than the u.s.? is that played over the summer >> i think it's been played, but i would say this, if the dollar and u.s. dollar and u.s. rate story does not accelerate, but global risk stays on, i think emerging market equities will continue to be bought. that's part of a longer term trend, but we need the dollar and rates to stay in check

>> michael, thank you. >> futures essentially flat after a positive week. that's it for "worldwide exchange." "squawk box" is next this actually makes sense. now on the next page you'll see a breakdown of costs. what? it's just.... we were going to ask about it but we weren't sure when. so thanks. yeah, that's great. being clear and upfront. multiplied by 14,000 financial advisors, it's a big deal. and it's how edward jones makes sense of investing.

finding friends in new places trump woos democrats on tax reform and a bipartisan white house meeting could turn up a deal on dreamers hit the road, mr. musk tesla announcing plans to unveil a semi truck beast. and behind bars. martin shkreli jailed after looking for hair from hillary clinton. it's september 14, 2017, "squawk box" begins right now. ♪

live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's look at u.s. equity futures, markets closed higher at new records once again yesterday. you can see this morning things are relatively flat. s&p futures are indicated down by 2 points. dow indicated up by less than a point. the nasdaq indicated down by 5 points. north korea threatening to use nuclear weapons to sink japan and reduce the united states to ashes and darkness the rhetoric comes days after the u.n. security council approved tougher safshg shnction pyongyang. the swiss national bank holding interest rates unchanged but they did cut the 2017 growth forecast the central bank there