wham street pointing to a higher open address feas fears trade war. we'll tell you what the ceo of saudi aramco said about the upcoming listing, and the new burger battle. ♪ good morning warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. big rally yesterday on wall

street we gained 1.4% for the dow that broke a four-day losing streak for the dow itself. we gained a little less than that for the s&p and the nasdaq. all three indices were up more than 1%. as we said at the top, fears around an all-out trade war were easing that's the biggest single factor for the rally. some other good news as well baked into that kashcake this morning the dow is up 66 points the nasdaq up 20 and the s&p up 3 points. let's look at the ten-year yesterday we rose to the high 2.8s, today we're at 2.87% on the ten-year oil prices are marching higher with crude posting its best day in nearly a month yesterday. the biggest names in energy are gathered in houston for an annual summit organized by ihs markets. brian sullivan is there and he

sat down with saudi aramco's ceo. they talked about everything from the company's looming ipo to potential trade wars and to the u.s. shale oil boom. in terms of deman, it's healthy. we're looking at 98 million, 99 million barrels of demand. we are looking at 1.5 million barrels, 1.7 million barrels of additional demand. with the national decline, i think there's a capacity in the market in terms of supply to include the shale and the growth that we're seeing currently in the shale. >> the world is generally reflating. saudi arabia came out recession. china is growing still at a fast clip the united states is doing very well is there anything in your projections that would imply a

slow down in demand growth in the next couple of years >> you're seeing healthy economy growth globally. healthy demand that we are seeing and forecasting going forward. the economy is doing very well, not only in country, but also in the rest of the world. with that there will be healthy demand that's our projection. >> catch more of brian's exclusive interview with the saudi aramco ceo today at 1:00 p.m. on cnbc let's drill down on some of those comments joining me is john kilduff good morning to you. >> good morning. >> let's touch on what he said there. he seems relaxed and upbeat about the demand picture for oil. is that something you agree with >> i do to a great extent, except for me there's an issue still with the china demand. much of their demand is oil

being brought in to be refined by their independent refiners, sometimes referred to as the teapot refiners, a small business that gets turned around and exported to the global market there's a bit of a glut still with refined product people are not focusing on that necessarily. what the chinese have done to the steel industry is what they're doing with the refining industry >> perhaps tariffs on that industry next. >> absolutely. >> on the supply side, there's geopolitical issues that are offsetting fundamental changes in supply in the u.s >> very much so. this weekend we're seeing renewed tensions and strife in libya that knocked off possibly 500,000 barrels a day at one point. things have calmed down again, but that was a source of supply that came roaring back it was steady. if this throws a wrench into that, we'll miss those barrels the market can't afford to lose

that then there's other dynamics. this u.s. shale boom is significant for the market for example, nigeria which used to be a big supplier of crude oil to the united states has basically written off the united states as a market because they can't compete with the shale oil. that's exactly similar to the light sweet stuff that nigeria produces there's a lot of moving parts in the market you could make a bullish or bearish case i think for me some of the tensions in the middle east are propping things up to the extent we get this tariff problem mushrooming, and the economies of the world look to get damaged by the tallout frfam it, that's a big negative. >> lest's expand on that more. you said tariffs would be a big factor there is it likely we see the u.s. move in that direction is there a national security

grounds for which president trump could apply a tariff on that product or would it be more complicated and unlikely >> that's the sort of scorched earth type of tariffs if it were to get to that point we'll have other problems before that if it comes to getting oil, oil products, refined products into the mix i will say if the europeans are targeting bourbon an jeans, the oil that gets refined and exported from our refiners along the gulf coast and east coast could be an easy target for the european union it could be much higher on their list than hours. >> john, every time you come on, i feel much more educated, but the secretary of opec came out this morning with some tough words, not for you specifically, but for the broader investment community with their views on oil. >> he says they lack a basic understanding of the oil market. throughout my career nothing has made me prouder and happier than

to be a thorn in the side of oil executives of all stripes and opec in particular the new york mercantile exchange was the worst thing that happened to those folks. the price got set downtown in new york and not by the seven sisters of the oil companies back in the day or opec post 1973 we decide what the oil price is, not them i invite him to come trade with us >> right back at you john, pleasure to see you. let's turn back to the broader markets following yesterday's 337 point gain for the dow. we're up 1.4% for the dow. the nasdaq and the s&p were up about a percent. looks like it will be a positive session again on wall street the dow up 65 points in the premarket. joining me is michael arona. thank you very much for joining us a day like yesterday can ease

the fears a little bit of some of those wildcard factors like tariffs, and the effect they're having on the markets. >> i think what's happening there's at least three uncertainties that markets and investors are struggling with. they're concerned we'll get some retaliation from trading partners regarding the steel and aluminum tariffs they're wondering if they should price in that fourth rate hike and they're wondering about the impact to economic growth, inflation and interest rates on the fiscal policy stimulus we received at a time when the economy was already expanding. the silver linings for investors is that the economic data remains strong corporate fundamentals remain strong and we're at average levels of volatility now >> let's talk about the first of those risk factors in terms of tariffs. is that something that made you massively rethink your exposures to equities in the u.s. when you saw them announced last week

>> in some ways the u.s. has been having trade issues and disruptions for every year for 50 years so it didn'tmassively have me rethink our trading positions in the portfolios one thing that is interesting is if a broader trade war does break out, it does have the potential to be inflationary i'm getting a bit more concerned that if inflation picks up without commensurate growth, that is a risk to the market now, kind of an odds and probabilities, i don't give it a high probability, but a trade war will be inflationary that is a concern for stock prices >> you mentioned you're pleased with the quality of the economic data still one area lacking, this applies to much of the developed world, not just the united states, but does apply here, productivity growth what's your view on that what does that mean for where we are on the cycle and whether

things like fiscal stimulus and tax cut canlead to many years of economic growth as opposed to just a brief shot in the arm >> i think right now productivity growth is the key economic metric we should keep an eye on over the next six months we will get data tomorrow on productivity the reason i say that is because inflation is beginning to pick up, even without this kind of trade war, this trade conflict so for my perspective we need to make sure output is growing faster than inflation. otherwise what we have is essentially an economic data that's kind of -- that could be slowing down with sticky inflation at a time when the fed is tightening. that's not a good recipe for stock prices this could be a risk to moving forward. i think productivity is the key economic data to look for over the next six months. >> michael, thank you very much for joining us

just one piece of economic data to report, january factory orders are out at 10:00 a.m. eastern. new york fed president, bill dudley, fed governor lael brainard and rosh cb kaplan wile speaking today as for earnings, target reports results before the open. courtney reagan will have an interview with target's ceo brian cornell at 2:00 p.m. another one not to mitch one of america's most iconer manufacturers has weighed in on the tariffs on steel and aluminum >> harley davidson saying we support free and fair trade, import tariffs on steel and

aluminum will drive up costs for all products made with these raw materials, regardless of origin. additionally a punitive retal retaliatory tariff on tarly davidson motorcycles in any market would have significant impact about 16% of harley's sales are from europe. as far as material costs, only about 7% of its costs of goods are related to metals. the analyst says since harley sources most material domestically, the likely hit would be about tone cents. last night john farreola argued though china is not a top exporter of steel to the u.s., the company is part of the larger picture and will be

impacted >> the reason you cannot only poke us on china is because of the spill overeffect china sends product all over the world. they then send it into the united states or the chinese steel so overwhelms the steel industries of other countries that they're forced to send into the united states. >> nucor shares are flat in premarket. nordstrom rejecting initial offer from its founding family to take the department store chain private. the bid of 8$8.4 billion or $50 share is a 2% discount to yesterday's closing price. nordstrom formed a special committee to review the offer given the family's 31% stake in the company. shares of smurfit kappa is soaring after rejecting an unsolicited takeover offer from

international paper. smurfit said the bid undervalues the xhacompany. that's jumped 19%. 3m naming michael roman as the new ceo. tulean who has led 3m since 2012 is credited with steering the company through a global downturn and back to revenue growth. still to come on "worldwide exchange," populous power. what the changing political tide in italy means for the market. plus -- >> three, two, one ignition >> another big win for elon musk as spacex shoots a bus-sized satellite into outer space details when we meco back. we're voya. we stay with you to and through retirement. so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that tie. voya. helping you to and through retirement.

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welcome back to "worldwide exchange." let's get a quick check in on global markets this morning. asian markets strong, up 2% for long congre hong kong. japan up a percent the rally on wall street yesterday continuing around the world. it was a decent session in europe apart from italy, today italy takes part in the gains, up a full percent. let's get more on the aftermath of the italian election. willem marx is live in rome with

the latest >> we have a few precincts left to count, but there's been significant gains for two populous parties here that have not had significant roles in government recently. the five-star movement with a clear lead as an individual party and lega as a coalition. leaders of both parties saying they would like to take the rel of forming a new government. that will be up to the italian president. we won't know about that for a few more weeks perhaps months. the real question is public spending, public debt, currently at 130% of gdp, and very crucially italy's role within europe as leaders like emanuel macron try to integrate the continent ever more. >> does the leaders of whether it's the league in the north or the five-star movement, do they

have a mandate to block those types of reforms that people like emanuel macron of france are looking for. they softened their eu rhetoric coming into the election, but they're not pro integration. >> many italians are proponents of the european project. there was a realization that by being so critical of europe they were alienating a large voter base they dialed it back. that's helped them get votes in other parts of the country their message has been about things like unemployment, creating new jobs, and putting italians first ahead of the needs of europe. that's going to be a big question going forward they're really going to be pushing, trying to reassess how europe interacts with italy especially when it comes down to financing. >> willem marx, thank you very much for that. market has been pretty muted, the reaction to this election.

the euro steady yesterday and today at 1.2340. the italian index down yesterday. unicredit, some banks down 3%, 4% rebounding today seems like a run-day reaction to the downside for the italian index. still ahead, reaction to president trump's tariffs are still coming in. and where is the beef? the burger battles are heating up mcdonald's is steni istepping u game we have a look inside one of its kitchens ahead

welcome back to "worldwide exchange." let's get you up to speed on the market action. yesterday the dow broke a four-day losing streak, gaining 1.4% the s&p and nasdaq up a little less but up over 1% as well all 11 sectors in the s&p were higher today we're up a few points on the s&p. 19 points on the nasdaq. 49 on the dow. currency board for you we saw the dollar raise a little bit yesterday to end a two-day losing streak. nothing significant. today it's lower against the yen, flat against the reuro and pound. the burger battles are heating up as mcdonald's makes a fresh push into more beef. kate rochbgers has more on that.

>> mcdonald's said last year they would make fresh beef a priority in 2018 right now they're offering 100% fresh beef quarter pounders and signature craft recipes in some restaurants. this beef is not frozen. this is placed right on the grill when ordered they actually cook faster than the frozen burgers >> it's going to be about half the cook time. so that's part of the secret of we're trying to do here, how do you make sure we don't impact service times, but as we elevate the food and this faster cook time was a key part. >> the company is not making changes to their burger recipes which are made with no fillers, additives or preservatives the nonfrozen offerings are part of their new better mcdonald's. with inflation on the rise, eating out at fast food restaurants and eating at home

are becoming close ner prir in e >> quick question, is the one on 6th street between 15th and 14th going to stock this? >> they're not in new york yet that's not a test market they're in atlanta, charlotte, p miami, nash vville, but by may they will be in 90% of the market i did test a burger, it was really good. >> price increase is what. >> the franchises set their own prices mcdonald's is not expecting material price changes on this one. >> looked great. made me hungry let's check in on what's happening outside the world of business phillip mena has the latest. president trump met with israeli prime minister benjamin

netanyahu at the white house on monday months after his controversial decision to recognize jerusalem as the capital of israel and move the u.s. embassy there netanyahu once again prized president trump for his decision president trump also said he may travel to jerusalem in may for the opening of a temporary embassy. the nfl is getting a brand new and higher salary cap. the league is increasing the cap by 10 million bucks to 177$177.2 million for 2018 this is the fifth straight year the cap has gone up by at least 10 million. after midnight, a spacex falcon 9 rocket blasted off from florida it successfully delivered into orbit a spanish communication satellite nearly the size of a bus. it's the largest spacex ever launched and it was a big milestone. this marked the 50th launch of the falcon 9 rocket.

still to come, a rundown of the top headlines and we're diving in on the case for president trump's tariffs, some xhech comments from steel supporters are coming your way when "worldwide exchange" returns no matter how the markets change...

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stocks pushing higher. we'll tell you what's fueling the rally. making the case for tariffs.

we're heart in the heart of steel country. and the ceo of saudi aramco sits down with cnbc. we'll tell you what he said about the oil market and the upcoming ipo it's tuesday, march 6, 2018, you're watching "worldwide exchange" on cnbc. good morning a warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. the market action is looking good this morning. yesterday's gains, 1.4% for the dow, 1.4% for the nasdaq, and in between nor the nasdaq ten-year treasury note, yields ticked up a bit. still a ways from the high we saw last week. 2.87 this morning. oil prices enjoyed a decent

bounce yesterday flat today with wti and brent on other side of the flat line. the biggest names in energy are gathered for a big conference in houston. brian sullivan is there. he sat down with the ceo of saudi aramco they talked about everything from the company's looming ipo, potential trade wars to the u.s. shale oil boom >> in terms of demand, it is healthy. we're looking at 98 million barrels to 99 million barrels of demand we are looking at 1.5 million barrels, 1.7 million barrels of additional demand. with the national decline, i think there's a capacity in the market in terms of supply to include the shale and the growth that we're seeing currently in the shale. >> the world is generally

reflating. saudi arabia came out recession. china is growing still at a fast clip the united states is doing very well is there anything in your projections that would imply a slow down in demand growth in the next couple of years >> you're seeing healthy economic growth globally healthy demand that we are seeing and forecasting going forward. the economy is doing very well, not only in country, but also in the rest of the world. with that there will be healthy demand that's our projection. >> you can catch comments on more topics today at 1:00 with with brian's exclusive interview. joining me now to discuss oil and markets more is tim seymour. good morning to you. >> great to be here. >> let's touch on oil prices

quickly. lets of factors out there. to what extent are they a function of market volatility and what the dollar is doing at the moment we have come through the highs but we have not fallen through the floor. >> the correlation has broken down over the past two months. once we got up to 65, 66 on brent, oil has been trading on fundamentals no question if the dollar catches a bid here, which i don't think it will do dollar failed at the 50 the last couple of days, and i think dollar has to deal with twin deficits i think oil will suffer. the reality is supply and demand is very well and balanced. the discussions this week at the conference in houston will be about how opec and the shale producers can maybe -- if they can fine peace, oil will hold. you talked about reflation, brian talked about reflation, that's the world we're in. it's positive for oil. >> when we talk about the dollar and yields, the dollar had two

positive weeks, came at time when yields were rising and equities facing volatility if you're not thinking the dollar is going to rally leer s that bullish for the u.s. equity mark market >> it's constructive for u.s. equities if we were throwing a strong dollar on top of volatility and the concern about inflation, while that's a safe haven bid, sometimes the higher quality or the lower vol lshgl u.s. stock a bid, it's good for emerging markets. if you look at the asia trade overnight, south korea is back above where they were pretrade war discussions. people look at the under-performance of europe and emerging markets in this five to six-week period of volatility and how the itseu.s. rallied ba. emerging markets have growth differentials that are superior. a weaker dollar will continuet

enforce that the em fx trade, a big part of the return inemer emerging markets last year are alive and well and they have a lot of technology europe doesn't have that dynamic. that's why it's lagging. >> tech is a percentage of the overall stoxx 600 is 5.5%. >> embarrassing low. >> in the u.s. s&p 500, much higher the dax is down significantly from the highs all of a sudden facing for some exporters like the automakers, there's the threat of tariffs. even though european markets were attractive last year, growth picked up, is that an area to step back from >> the valuations in europe are interesting. the eps growth revisions are better in europe not better than here, but better than they have been there. the story for europe is still an

interesting one. i think the euro is 1.30 by the end of the year. you will see that headwind those are the two issues for european investors you have lack of tech to give you defensiveness, which has truly shown, also the growth and the dollar those are issues that persist. i feel comfortable owning some of euro stoxx 50, that gives you great exposure to the top end of the european sector. >> let's touch back on the u.s given the volatility and p pullbacks what is your highest conviction given the recent weakness >> the pull back in

semiconductors was to be bought. when you look at the dynamics there, if you could characterize 2017 as really inventory demand and draw down and that there's been restocking into 2018, but the reality is the enterprise refresh is still alive and well. capex is pointing towards tech being defensive. the financials, you know, for a couple days with trade wars people were questioning what all this meant to the interest rate environment and global growth, but financials have performed extremely well during a difficult period they should be performing in a hire rate environment. it's not about a flatter yield curve. people misconstrue how profitable banks can be. >> jobs report on friday -- >> anxiety there should be. between the ecb which i think will be a non-event on thursday, but adp and payrolls on friday you have data for people that have been very concerned

february 2nd we had that first payroll number that knocked people back on the wage component. there's no question people should be looking at that again. a little nervous into friday >> tim, thank you very much. >> great to be here. >> catch tim at 5:00 p.m nordstrom rejecting an initial offer from the founding family to take the chain private. the bid of $50 a share is a 2% discount to yesterday's closing price. the ceo of kobe steel is resigning taking responsibility for a widespread data fraud scandal. japan's third largest steelmaker admitted to supplying products with falsified specifications to about 500 customers. kobe steel in japanese trade is flat. the federal trade commission is challenging smucker's

purchase of wesson cooking oil fromconagra. smuckers would own 50% of the vegetable oil sold to grocery stores. coming up, talking trade live reports from steel pound to towns in the midwest and north of the border in canada. two different reactions. as we head out, a check on bitcoin, down 4% 5% this morning. - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory.

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dawn is serving up dinner for a whole town! that table was like... so big! can one bottle of new dawn clean all the dishes? we did it! 6,000 dishes! a drop of dawn and grease is gone. welcome back to "worldwide exchange." i'm wilfred frost. let's get up to speed on the market action. yesterday gaining 1% from the nasdaq 1.2% for the s&p 1.4% for the dow up today about 73 points on the dow. near the highs of the last few hours. treasuries, yields ticking up over the last day or so. still below the recent highs of 2.9 for the ten-year 2.87 this morning. fears of an all-out trade war are growing after president trump announced tariffs on steel and aluminum imports

the business reaction is pouring in kayla tausche is live in cincinnati, ohio where some steel workers are cheering the new tariffs. let's begin with landon dowdy and fresh xhechbt comments from u.s. manufacturer. >> harley davidson speaking out saying they support free and fair trade >> harley davidson saying we support free and fair trade, import tariffs on steel and aluminum will drive up costs for all products made with these raw materials, regardless of origin. additionally a punitive retaliatory tariff on tarly davidson motorcycles in any market would have significant impact this comes as the european commission's president threatens to impose tariffs targeting harley bikes if president trump follows through on his plan. the eu warns the response would be swift, firm and proportional. how does that impact hog about 16% of harley's sales are

from europe. as far as material costs, only about 7% of its costs of goods are related to metals. the analyst says since harley sources most material domestically, the likely hit would be about tencent cents canada's steel industry is facing its worst case scenario if president trump's tariffs do go into effect dee bosa has more on that angle. >> we are in one of many, many steel plants in hamilton, ontario. this city is about 40 miles outside of toronto here the stakes could not be higher hamilton is home to two of the country's biggest steel companies. the chamber of commerce estimates that tariffs could impact 40,000 jobs we spoke to the chamber's president, he says that it

doesn't even make sense for canada to be included in these tariffs as one of the u.s.'s oldest and closest allies. >> what has to be understood is how much of an ally canada has been to the united states for many, many, many decades again, how integrated we are >> now, if canada is not exempt, the impact will be felt far beyond this steel town, especially as canadian politicians are threatening retaliation that could escalate to a greater trade war so there's a sense here that canada is mobilizing from steel and aluminum executives to politicians at the local and national level to lobby for an exemption and try to keep this issue separate from nafta talks. >> i was going to ask that can you keep retaliation separate from nafta talks, presumably if you do see a tariff imposed by canada on the u.s., that would imply nafta is done an dusted >> it's interesting.

we've been asking for specifics. what would canada do to retaliate. we're not getting that but the issue is president trump in a tweet has tied nafta negotiations to this steel and aluminum tariffs and canadian politicians want to keep them separate nafta has other trade issues like dairy, logging that are separate issues. but there's a sense here that they should be kept different. the u.s. has different intentions in mind remember that canada has some important allies in the south who want to see canada except from this as well. but like everyone else, they're waiting for more details >> you have spoken to any of the workers? what's the morale like in canada >> we are speaking to some workers when they come in. we were here yesterday we spoke to executives who said there really is a sense of panic right now. it's difficult for the steel industry to adjust to these

tariffs because the relationship is so interconnected and this could have an adverse effect on u.s. manufacturers, by making steel manufacturers more competitive if they're not excluded from those tariffs. >> back in the u.s., some steel workers are cheering the new plan kayla tausche has more on that perspective. >> good morning. the steel mill where i'm standing has been operational since the '70s this company has been in business for four generations. they take old train axles and recycle them into steel bars used for construction and other purposes they do about 40,000 tons a year business has been suffering over the last several years, according to the owner, president and ceo of the company. he said the tariffs would vc sse an immediate benefit to his business >> we have been attack the fed r

years now. people are now talking about a trade war, which is quite ironic because we've been in this war for years now and losing it's going to change things immediately for the betterment of this industry >> over the last three years byer says chief imports of foreign steel have driven down the price for which he can sell his end product. his margins will go up by selling these bars for a higher price to other companies that use them he says his margins have fallen 30% in the last three years. >> the work force is down to 95 people from 18 5 wo5 workers, as clientele has shrunk dramatically he said these tariffs, while they would increase some costs in his business, they would turn his bottom line from red to black, and that he supports that

wholeheartedly >> so he said that the work force has shrunk since 2015 by 50%. would it now double following these tariffs and go back to where it was >> that's the expectation. some people are employed at different companies, but he said the shifts were good the pay is good here, most of them want to come back and work here and he would hire them or rehire them if the tariffs were to come into effect. not only that, but some of the 95 workers who are still here in this bill, he would be expanding their shifts there would be an ancillary effect in the transportation industry and logistics industry to get this steel to the end customer if the production ka pass tig capacity hit that 80% target >> do you get the sense that sense of positivity spreads

across the employees and does it influence their fonnedness for h president? >> we are in ohio, a swing state. so you have some division about what the support level is for the president and which of his policies they do support i think one thing that workers can get behind is higher wages and more hours ultimately that helps their disposable income and the money in their pocket. even if they don't agree with everything the president does, that's something they can get behind >> kayla tausche, thank you very much for that. still ahead on "worldwide exchange," currency concerns investors closely watching the dollar as fears over that trade war do increase. first, as we head to break, the national weather forecast from bill karins. good tuesday morning winter storm warnings are up we will see the snow breaking out later tonight. the morning commute on wednesday won't be too bad we'll watch that light snow early in the day for philadelphia and new york.

during the day on wednesday, during the daylight hours, the snow intensifies and gets very heavy, hudson valley, new york city, philadelphia, hartford, interior sections of new england. plan on getting to work okay coming home will be a nightmare and a lot of airports will be close with the peak intensity of the snow but thursday morning it's all said and done. here is how it looks, i-95 north words the heaviest snow. philadelphia, 4 to 6 inches. new york city, 4 to 8 inches someone will get 12 to 18 inches right through the heart of at yral new england. th'sour business travel forecast more "worldwide exchange" when we come back i've made my ideas real. ♪ ♪ i made my own way, now it's time to make yours. ♪

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it's only been slight gains relative to that weakness. we're flat today the dollar is slipping a bit against the yen. joining me now is kathy lien from bk asset management kathy, what do these tar wriffs mean for the dollar? >> these are not good news for the dollar ultimately you're seeing unlike previous dollar rallies where it's moved just a bit because of broad based risk aversion, the trouble is being stirred by the u.s. there's threats of retaliation from our global partners even though the market is acting as if some tensions have eased, this will certainly intensify before they improve. the dollar/yen has traded lower. it's not reacting to the improvement we've seen in dow futures. that will remain the case. the risk will be downside for the u.s. dollar. investors will be reluctant to buy until they see how this all

plays out. >> does that change if we see a strong jobs number this week, strong wage inflation? >> not at all. i don't think the non-farms payrolls report will have a significant impact on the fx market the rchb eason is it's not goino change the plans or dialogue for the federal reserve. they are committed to raising interest rates in march, unless the number are abysmal i don't think it's going to affect the central bank's tightening plan. i think the headlines regarding the trade wars, how the republicans deal with this, whether congressional leaders try to block it and whether we do retaliation from china is the main focus >> you are surprised we have not seen more weakness in the euro following the italian election >> no basically we're at a pl t political stalemate. it takes six months in the case of germany to get anything resolved we saw the market move on quite

quickly. i think right now the focus is on ecb, and whether they talk about tapering and i think, you know, the growth story is still there. but the focus has turned to u.s. dollar weakness, trade war and ecb. >> kathy, thank you very much for that kathy lien of bk asset management a few things to watch today, earnings, target reports results in the next hour or so we'll hear from target's ceo today at 2:00 p.m. we're keeping an eye on oil prices following cnbc's exclusive interview with the ceo of saudi aramco. catch that interview today at 1:00 p.m. eastern time and the fed will be front and center today ahead of friday's jobs report. don't miss steve liesman's sitdown with rob kaplan at 8:00 a.m. nice gains this morning.

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open up about 70 so far today after almost closing up 400 points yesterday. this hour we expect results fromtarget and we're seeing someone make the case for tariffs a live report from the heart of steel country where some u.s. workers are cheering president trump's new plan and the ceo of saudi aramco sitting down with cnbc we'll tell you what he said about the oil market and the

upcoming ipo that's all ahead on this tuesday, march 6, 2018 "squawk box" starts right now. live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome back 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 mike santoli. andrew is off today. our guest host this hour is steve grasso great to have you here >> great to be here. >> let's check out the u.s. equity futures it was a strong day for stocks yesterday. the dow was up by 330 points by the end of the day a swing of 500 points that we saw throughout the trading day this morning we are seeing that momentum continue with the dow futures indicated up by 72 points nasdaq futures up by