tv Worldwide Exchange CNBC April 30, 2018 5:00am-6:00am EDT
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announce big earnings. avengers infinity wars sets a new box office record. it's monday, april 30th, 2018 and "worldwide exchange" begins right now. welcome, everyone. i'm dominic chu. brian is on assignment this week let's get a check at the early morning action behind me the futures market is pointing higher. as you can see, 103 point gain for the dow if things opened the way they are the s&p by 10 points and the nasdaq 43 points to the up side. treasuries holding steady. two year note at 2.49% just shy of the 2.5% mark
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a relatively quiet night overnight in asia. they're closed with holiday observance the asx 2 h00 in australia is u by half a percentage you see here the u.k. and ftse up by half a percent now checking on the broader markets, if we take a look at the oil picture, a big case for oil because everyone's watching whether or not we can see that strength continue. wti crude is off by 1% $73.71 as for the dollar, let's check that out as well we are seeing a little bit of a move euros, 121.07. yen 109.27
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let's get a check on gold prices they have been moving a little bit as of late 13.18 contessa the last trade there. in corporate news, after years of courtship we have a deal to create the third biggest u.s. carrier the new firm will be led by john legere there are a lot of players involved in the tie up 42% owned by t-mobile parent deutsch telecom and the public will hold the remaining 31%. the new company will have more than 127 million wireless customers. in a statement legere says it will create a fierce competitor that will deliver more for customers in the form of lower prices and more innovation
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they will be on the show at 9:00 this morning. >> the interesting part is whether or not this will clear antitrust hurdles. in the past they've tried to do it and in the past the fcc and others have voiced some concern about the idea that you're going to take four major players in wireless down to just three. what that means for the customers. if prices will go higher, you might see resistance from the government. >> true. stocks to watch. in other deals, marathon petroleum is set to buy endeavor for $23 million. it values endeavor at 150 bucks a share. endeavor was formerly known as
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hist historo. walmart is selling the british groceescery asda to sainsbury. they will get a 32% steak in the company. it's creating joint ventures in competitive markets. walmart is trying to buy a controlling stake in india walmart is sharing so it can provide some competition where amazon is starting to get some penetrati penetration. >> amazon whole foods was a big deal in the u.k. groceries are a big market
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you have them and pesco and walmart is tapping local experts. 42% stake in the company will be a huge deal. your fourth deal of merger monday, they're buying dct industrial trust for about $8.4 billion in stock this values dct shares up. they're the largest owner of distribution centers and logistics properties speaking of amazon they have a footprint in california, new jersey, atlanta and chicago. let's talk more about the deal making picture right now. joining us is mark avalon. i have to say, mark,if you tak a look at the way moerge gers have been playing out, we've seen some blockbusters this year
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is this going to be what drives the next bull leg of the market? >> this is a positive but that's not going to drive the next leg of the market. it will be continued strong earnings report and strong economic growth. that will continue to be the story. as long as interest rates don't derail it, the continued corporate earnings picture, that's what's going to drive stock prices. >> mark, what about expectations here it seems like what you have to do to move the stock at all is completely nailed down expectations the traders go, yeah, whatever, if you beat the earnings. >> you saw that with caterpillar. you really have to overcome a lot of obstacles when valuations are this high. the good news is with continued
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earnings strength and rise with prices of stocks staying level, you are getting the favorable valuations and the ce multiples will come more in line and that's why we still are bullish for the remainder of the year. >> mark, this whole deal for asda, walmart getting a big steak in that company, the biggest grocery store chain in the u.k., we talked a lot of cross border you speak of valuations. >> economic growth in developed europe is starting to slow it seeped a little bit emerging economies are still very resilient the commodities hikes rise to help them. back home the tax cut hasn't fully been implemented or realized i think you can find places around the globe that are strong and the u.s. economy is in growth mode. if it wasn't, we wouldn't be
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hearing from the fed about their structured rate hikes plan we should continue to be optimist optimistic. >> what do you think the energy sector will do i was on an earnings call last week and they were factoring in higher energy costs. >> that's a natural byproduct of a growing economy. they are going to work their way in and begin the counter cyclical pressure they normally do sure the growing economy is raising prices but there is pull back in the u.s. market. the emerging market likes rises in commodity prices. look for them to continue to grow strong. >> strategic places to find the value growth mark avalon.
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thank you for joining us. >> good to be here. a couple other stocks to keep on your radar, including wpp. reporting better than expected first quarter sales. without founder martin sorrell, he stepped down two weeks ago amid investigation into personal misconduct. >> a u.s. judge has blocked xerox's deal to sell to fujifilm it had a massively conflicted xerox ceo who was looking out for his own interests over shareholders. >> interesting story for sure. we're just getting started on "worldwide exchange. up next, betting on the final frontier richard branson giving cnbc an outlook on bringing people to outer space. and later disney flexing its super hero strength at the box office this weekend. we'll tell you about the big
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mr. elliot, what's your wiwifi?ssword? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. welcome back to "worldwide exchange." i'm dominic chu. stock futures are very much in the green at least if they stay that way the s&p would go up 10 points, dau jones up by 100 and nasdaq up by 42. busy week on wall street for economic data. personal income and spending and pending home sales tomorrow look to the ism
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manufacturing index and the start of a two-day fed meeting the fed announcement comes wednesday afternoon and we'll also get the adp employment report thursday it's first quarter productivity and factory orders all topped off more than 30 companies on the s&p 500. a busy week. today we hear from mcdonald's before the opening bell. apple reports after the close tomorrow. and turning over seas secretary of state mike pompeo takes a hard line on iran during his first major trip abroad. >> president trump is doing very well he's directed the administration to fix this flawed deal. if we can't fix it, he's going to withdraw from the deal. pretty straightforward. >> he's talking about the iran deal he made the statement during a meeting with benjamin netanyahu.
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he's meeting with the king of jordan before he heads back to washington let's get to hadley gamble with more >> reporter: good morning. it was a whirlwind trip so far at least in saudi arabia, the first stop off for mike pompeo the message is hardly one of surprise he said iran was very much in line he was seeming to side with the state particularly on this issue but at the same time he was nudging them to quit the quarrel that they've had with qatar. that has major implications in qatar, bahrain and back here in the uae. i want to move on because you're not only talking about iran as the state sponsor of terror but you're talking about that, you're talking about what's going to happen next with the nuclear agreement, with
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president trump, three major areas of contention for the president when it comes to the agreement. and you have emmanuel macron trying to save this deal the president, president trump, has mentioned again and again the things that really stop him from wanting to move forward here one of them is the issue of ballistic missiles he doesn't feel that's been addressed. he's been talking about the sunset areas in terms of when, where, how these are going to go forward and whether or not really there's going to be enough time to get this done, guys. >> hadley, there is so much that you have going on over there i want to switch gears what is it about billionaires and space. you sat down with richard branson over the weekend what did he tell you >> reporter: absolutely. so sir richard branson here on the sidelines of an announcement essentially saying they're going to revolutionize the way that people and cargo are moved
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he announced that with the head of dubai port. you're the cool investor you always know what's coming up and what's the next big thing. let's listen in to what he has to say. >> well, obviously, we like to do cutting edge things as you may have seen, ten days ago we had a very successful flight of a space ship and we will in the next couple of days. we're on the cusp of fulfilling our dream which has taken 30 years. we're willing to invest in the long term. there we've had 800 engineers working for, you know, 13 years on this project. but we hope in the not too distant future we want to send
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people into outer space. sultan is going to sign up the lovely thing is, a lot of people want to go to space i think we've got something called virgin orbit which will put bigger rays of satellite around the earth and connect the people that are not connected. there are a lot of exciting things going on out there. virgin likes to be part of these exciting developments. >> reporter: well, what we know of course about sir richard branson, he says this is going to be a family affair with the exclusion of his wife who doesn't seem to have gotten on board with the space flight. >> hadley, they've all captivated our imagination well, you mentioned it here, dom. branson is not the only one with sky high ambitions big win for jeff bezos and his big ambition the details ahead. later, cool video alert. the record-breaking ride for one daring surfer, but first as we
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head to break, here's today's national weather forecast from nbc's bill cairns. good monday morning to you, contessa and dom temperatures are cold again, that figures that's the way we're ending april. only 38 in air why is like burlington buffalo is at 35 all the weather is going to change we'll see the cold exiting and the warmth heading east. with that severe weather comes into t. and into tuesday this it be a little more serious we could add tornadoes of threat from kansas, omaha, iowa a little sliver of weather may is our busiest month of the year for severe weather and tornadoes. right on schedule we'll see things get more active in what we call tornado alley. d.c., good day tetheapolis, you deserve it
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seeing weakness there. wti crude prices, 67.53. ice brent crude at 74 figure just about a percent to the down side, contessa. president trump is claiming victory after north korea vowed to dismantle its main nuclear site some members of the trump cabinet are taking it easy. >> reporter: here in washington, not really a lot of people ready to trust kim jong-un on this yet saying that he'll dismantle his nuclear weapons for washington it's more about trust and verify looking at the commitment that north korea is making but alsos for some evidence. north korea's kim jong-un is promising to do this again, destroy its nuclear site and then let american experts and
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journalists in to watch. the trump administration is claiming victory but cautious. >> they've lied and broken their commitments which is one reason there'snobody in the trump administration starry eyed about what may happen here. >> we're not going to take promises, we're not going to take words, we're going to look for actions and deeds. >> reporter: kim says it will happen in the next two weeks before his upcoming meeting. >> everybody knows they can barely feed their country and they don't have money, they don't have currency the rest of the world accepts and so it's a critical time for him. >> reporter: critical, too, for the u.s. >> before the president puts out a mission accomplished banner, he needs to realize we may go into a confrontational phase. >> reporter: south korea spent an hour briefing president
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trump. the u.s. says it's a start but what they need is a time line and verification. >> thank you very much let's get a check on this morning's other top stories. nbc's frances rivera in the new york studio with the latest. >> reporter: dom, good morning to you isis has taken responsibility for the double suicide bombing in kabul that killed 25 people including eight journalists. among those killed the chief photographer for france in kabul. the first bomber was on a motorcycle while the second was on foot blending in to a group of people. the port of entry in tijuana was already at capacity and their asylum claims would have to wait. it seems that a tree gifted to president trump has disappeared just days after the pair planted it.
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the white house has not given an official response but the professor of arbor culture said the sapling that is a variety of oak may have been quarantined. back to you. >> frances rivera at nbc news in new york. still ahead on "worldwide exchange," an econ trifecta. auto sales, the jobs report and the fed all on deck this week. we'll break down what you need to watch straight ahead. disney just broke a major record at the box office with the latest avengers movie. we'll have all the details when world w50"worldwide exchange" rs so, try febreze fabric refresher. febreze finds odors trapped in fabrics and cleans them away as it dries. use febreze every time you tidy up to keep your whole house smelling fresh air clean.
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merger monday. the details straight ahead. doubling down. steve wynn on the attack after being ousted from his casino empire. and one marvelous weekend. the big box office win for disney's "avengers infinity war. monday, april 30th, 2018 you're watching "worldwide exchange" here on cnbc >> going back in time. >> sometimes you just want to reset the clock like ten days. >> exactly welcome to "worldwide exchange."
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i'm dominic chu. >> i'm contessa brewer >> we've been steady in the green since 5:00 a.m the futures picture is 100 point gain for the dow the s&p up by 10, 11 points and the nasdaq up by about 42. in corporate news, after years of courtship, there's a deal to create the third biggest u.s. wireless carrier yes, t-mobile u.s. is buying sprint in an all stock deal valued at $26 billion. the new firm will be led by t-mobile executive john lidge ger and take the t-mobile name as well. the combined company will be 42% owned by deutsche telekom. sprint will hold some and the public will hold the rest. they'll have 127 million
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wireless customers john legere says it will create a fierce competitor and will have lower prices and they will be on "squawk on the street. >> marathon petroleum is set to buy andeavor >> it values andeavor at 22% premium to friday's closing price. walmart will buy sainsbury they will get a combined stake
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in the company the move is part of a broader shift by the retail giant to create joint ventures in competitive markets. prologis has struck a deal to buy dct industrial trust for $8.4 billion in stock. this values them at $68 billion a share. 16% premium to friday's closing price. dct is an industrial real estate trust. prologis is the world's largest owner of distribution centers and logistic companies both have a footprint in the emarket, california, new jersey, atlanta, chicago. turning overseas, we're getting fresh reaction to the historic meetings between north and south korea's leaders. eunice yoon joins us live in beijing with the latest. you are back in china.
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what do you have for us here with regard to what the feel is in asia with regard to the meetings >> reporter: i think the feel is, dom, that now comes the hard part and everybody wants to have their say and that includes north korea's long-time ally china. right after the summit the chinese government said they welcomed the declaration they supported more dialogue since then the chinese state media picked up on the part of the document which suggested that the two koreas could have a trilateral meeting only with the united states or a quadrilateral -- it's a big word, quadrilateral meeting with the u.s. and china and so chiep na sees north korea as a strategic partner in the region he'll be visiting north korea on wednesday and thursday this is the first visit since
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2007 that should help ensure beijing's influence. they've been maded good on the straightforward aspects of the declaration. they're moving the anti-north korea loud speakers at the border by may 1st. the press has been pointing out a lot of the concerns within south korea and i think that the chatter that you're seeing in the south korean press illustrates how challenging it's going to be for south korea and the united states to overcome suspicion. kim said he would destroy a nuclear site the site said to be destroyed is structurally damaged they've had a similar invitation to journalists where they destroyed a cooling tower in
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2008 but then they went on to violate their agreement. also there are concerns about the national security advisor john bolton's comments that the libya model could be the model used for north korea and that that could actually unnerve kim jong-un because at the end of the day even though it would be it gave up its nuclear weapons or program, that eventually the debt and as well as the government of gadhafi. they're worried that it could somehow jeopardize this entire process. >> trust but verify. what about in asia is the tendency towards su
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spishion or optimism >> reporter: i think it depends who you're asking. if you are to go talk to people on the street in south korea, there are a lot of people who are feeling much more optimistic about what's going on. they felt charmed by kim jong-un. if you were talking to north korea watchers, if you look at it from a generational perspective and people who have a memory of the korean war, they are very, very suspicious. i was talking to people in south korea who said there is still no definition -- agreement on the definition of what denuclear rye skags is when you say you're going to denuclearize, that means you're going to get rid of the nuke career programs. but when south korea is talking about it, they're talking about the u.s.'s umbrella.
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because you don't have the agreement it leads to suspicions and concerns that this will be a long, drawn out process and at any point something could go wrong. >> it will be a show me situation for sure when it comes to north and south korea thank you very much. let's get to the topic trending stories no spoilers here, marvell's most recent movie "avengers infinity war" opened to a record setting $250 million in north america according to com score worldwide infinity war grossed 630 million. >> amazing people questioned back then how much disney paid for the marvell studios and i think you can -- it's pretty safe to say they got all of their return back and more with just regard to the franchises that were released.
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>> my wife has told me -- she's away on business she said, do not watch that movie without me i have to wait. jeff bezos personal space race continued over the weekend. blue origin space company had a successful test launch on sunday to its highest altitude ever it carried a dummy nick named mannequin skywalker which blue origin says could start by the end of this year like i said, it's the billionaires and their race to space. what i will say is they have filled a void left in some small way or maybe larger by nasa without a huge space program like we had when i was growing up these guys in the private sector. >> you're a small person last night the simpsons
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broke a record since 1974. they officially passed the western "gunsmoke" for the most episodes of primetime scripted tv show. they couldn't be more different. the simpsons and "gunsmoke." obviously when i was born "gunsmoke" was done. the idea i could grow up with a show like the simpsons is pretty huge. for most people out there, a day at the beach is a relaxing proposition. not so for this brazil onsurfer. he broke a record for the largest wave ever surfed he concurred an -- this video was unbelievable we've seen it. it was unbelievable how big that
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wave was. >> so could it be any surprise that he broke the record, that he now has the world's largest -- >> what i want to know is how you measure it you have to extrapolate, right you show video of it. >> math. >> right exactly. a lot of math that goes along with it. you have to measure it -- >> i would never -- yeah his family had to be like, really >> my mom was scared when i played sports sometimes. >> i know. you're a momp, i'm dad it happens. >> still aadhe, after being ousted from his own company, we'll bring you all the details when "worldwide exchange" returns. people who rely on us every day to deliver their dreams they're handing us more than mail they're handing us their business and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business
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the united states postal service. priority: you ♪ the digital divide is splitting this country. we have parents who are trying to get their kids off of too much social media and computers, and then we have parents who would only hope their children have access. middle school is a really key transition point, right. the stakes start changing. students begin to really start thinking about their futures. what i like about verizon's approach is that it's not limited to just giving kids new tools, it's really about empowering educators to teach in different ways, and exposing kids to more active forms of learning. giving technology is not a total solution. teaching technology, now that is.
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well that's that's your job i guess. ♪ welcome back making headlines, former wynn resort steve wynn is suing a former employee who went on the record to accuse him of misconduct i accuses her of smearing him. this is the latest in a trio of counter-lawsuits filed by wynn he's suing the associated press and attorney lisa bloom over harassment allegations he has called these claims preposterous the company he found the, nguyen resorts. a newly vocaled active vocalist.
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they will change the name of the boston property instead of being wynn boston harbor it will be called encore boston harbor. good to see you, david wynn stock is hovering at about $185 right now it had a big beat. 32 yepds what's the biggest challenge for this company >> for them it's to dewhat's did go going to be >> it's very that mad diks and his team are good executives are they going to be able to grow in the same ways that they would with steve on board? can they design a lagoon in las vegas? can they envision new properties in the same way? because that's what defines the
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high multiple that they have already gone >> are they going to sell the sets. >> you mentioned steve wynn. he's a founder, now no longer ceo. how important is he to the overall persona, identity. >> and. >> critical is the short answer. by that i mean he's the chief diplomat >> they said this was very important and they distanced
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themselves from the long shadow of the predecessor he said he did mccau. >> there's strategy and execution. which is the way i think of my home strategy and exkiegs matt and his team are excellent at execution envisioning the strategy to remember >> i want to talk about a couple of other gaming companies mgm beat wall street but barely. interestingly mf andolay bay is having problems recovering after a massacre in october, problems with group bookings. tell me what you see happening in las vegas and the impact there. >> and specific to mgm as well i think las vegas has proven itself to be the preeminent convention driven market
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inherent in that is a volatility there's a volatility throughout the year where you have tough comps in 1 q, tough comps in q 3. i think that's the matter that showed up and that's what's hit the stock. how do we think of what to expect of you. >> that's the revenue available? >> right my question is kind of along that line. we look at the wynn, las vegas and mgm, they have a large business in macao, how does that avoid gaming that's a smaller cap company. >> i think one is going to be a much more stable, steady earnings stream than the other look, i think the vegas and macao get higher earnings
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because of the growth there but what comes with that is volatility and risk. these are primarily slot machine driven, stickier player, 5 to 10% over the long term i think they get a different multiple because of it. >> one big factor that everyone in gaming is eyeballing is what do they talk about sports gambling how does that change >> the short answer, it's a great question because we did put out a piece a couple of weeks ago on the matter. the thrust of the report was there were many more questions than answers at this point i think one of our conclusions is not much. it will be a nice amenity to offer. when you go through the different values and the profit
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opportunity, it's just not that great. it may be a bigger opportunity for somebody like caesars who has a brand and a distribution, but for the most part, not huge. >> so great to see you bright and early. >> dark and early. >> thank you very much, david. we're approaching the top of the hour which means the team at "squawk box" is getting ready. joe kernen in "new york times" square at the nasdaq market site with a look at what's coming up, sir. >> yeah. it's cold this morning, isn't be it >> it was cold yesterday, too. >> i'm thinking about you and -- if you're going to get 200 rounds in, you know how you normally -- you're probably going to need to start playing 36. >> why does everyone -- >> i got 36 in this weekend, i will cop to that right now >> i feel sorry for the wife. >> she's away. she's away on business. >> the wife away, you definitely are playing. you're going to have trouble hitting that quota.
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>> i've already set the barlow, joe. so we're getting close to the end of earnings season, dom. we'll move on. we'll think about retails. it was a good earnings season. something that's interested to me is this piece in the journal that the dollar strengthening as the u.s. sort of reasserts itself as the growth engine of the world. every analyst, have you noticed, every analyst or stock guy that we have had on is i prefer european values. they try to be smarter we'll see if they change their tune on whether europe is the place to be. we have ian shepard son on, dom, the 2.3 number, don't people remember the first quarter and steve liesman and the work that he's done that it
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seasonally has been weak every year and q 3 is the highest we've seen in years. ian shepardson thinks if you add .9% which adjusts for seasonal that brings us above 3 if we do 3% for the year which we haven't in a while and north korea follows through on some of this stuff, it's going to be -- we should be a little bit happy and gratitude. >> i'm hoping my retirement account is going to be fine. >> then we're back to golf. >> how could you -- what would retirement look like for you how could you play more golf >> it's going to take strategy and execution, that's my take away from this morning see you, joe up next, auto sales, jobs, the fed all in focus we'll tell you what to expect
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welcome back to "worldwide exchange." it's a big week for the economy. joe kernen said the auto sales are tomorrow, the fed on wednesday and job sales on friday let's bring in joe lavorgna. joe, are things as good right now as everybody thinks they could be >> yes, dominic. the reason is the sur view data. consumer confidence. the whole range of indicators has been very strong for some time they remain elevated and over time my view is they will reflect what we'll see in the harder data. yes, the outlook is very good. >> you got maybe optimum unemployment numbers at 4.1% low inflation. wages and salary, up 2.9%. the highest number we've seen in ten years.
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how big is inflation weighing? >> the fed believes low employment raises inflation. whether that translates to inflation is another issue my guess is we're going to see an increase in productivity growth oversiem, especially as companies invest that's not inflationary. the fed views it differently the market is a bit wore lid about the wage numbers i'm not worried. i think inflation will stay low and rates will stay low. >> if that doesn't worry you about the economy, what does worry you about the economy. it can't all be rain drops on roses and whiskers on kittens. >> whiskers on kittens i haertd heard that. i like that. what worries me is the fed that the fed will be more aggressive that it treats the recent tax
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reform as more demand driven so i would like to see the fed be much more gradual let the economy run and not hike rates as much as they say they are. the fed says it's going to be raising rates more than double the funds rate from where it is now. that's a lot of hikes. >> some of these fed officials have said they're very comfortable with an inflation rate at 2.5% >> this is the thing the fed hasn't had the core inflation rate over 2% since 1995 it's average at annual rate of 1.7 over the last almost 23 years. if you get to 2.5%, great. it's not high. it would just correct for the under shoot we've had in the past seven years i don't see what they're so worried about. >> no worries on our front thank you very much, joe that does it here for "worldwide
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wifi? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome.
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good morning oh, isn't it great when it happens on a monday. merger monday. t-mobile buying sprint in a $26 billion deal we'll talk about what could be some regulatory hurdles. we don't know. plus, we have new deals to tell you about in etail. commercial real estate as well as energy. and the latest "avengers" movie setting a box office record we have the numbers behind the staggering haul for disney it's monday, april 30th. i believe it's the last day of the month, 2018.
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"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. i'm becky quick along with joe kernen and andrew ross sorkin. the u.s. equity futures are high dow futures look like they would open up by about 135 points if we were to open now. s&p futures up by over 13 and nasdaq by over 50. this continues the strength that we saw at the end of last week we'll see what happens right now green arrows across the board. nikkei and the snap a niece market closed fo
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