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tv   Worldwide Exchange  CNBC  June 1, 2018 5:00am-6:00am EDT

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. it's 5:00 a.m. at cnbc global headquarters. breaking news out of spain that country's parliament about to hold a no-confidence vote in its prime minister he's expected to be ousted at any moment. italy about to swear in a new government putting to rest weeks of uncertainty hanging over global markets. s&p downgrading deutsche bank's credit rating as shares bounce off all-time lows. mandatory evacuations ordered in hawaii as a volcanic eruption enters its fourth week. and casino workers in las
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vegas are still at the negotiation table as a strike deadline passes. it's friday, june 1, 2018. "worldwide exchange" begins right now. ♪ we are right here in new jersey, good morning, welcome to "worldwide exchange. i'm dominic chu. brian sullivan is off today. we have breaking news out of spain. members of parliament are currently voting on the fate of the prime minister, mariano rajoy. he's expected to be ousted in a vote of no-confidence. let's get strait out there you're looking at parliament in madrid willem marx has the latest on that vote which is happening as we speak >> that's right. we are expecting that as we speak literally. mariano rajoy facing a no confidence proposal put forward by one of his opponents, pedro sanchez. this is a slow boil situation that's finally come to a head.
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his party has been mired in a huge corruption scandal that's encroached on some people close to him that's the pretext for this no confidence vote. a lot of it stems from what happened in catalonia over the last nine or ten months. we expect him to essentially be ousted any minute. he said he would welcome the numbers in terms of the vote itself from the rest of the parliament and he would honor it he's already congratulated pedro sanchez who will almost immediately be sworn in as new prime minister he said he will honor mariano rajoy's budget plans we don't expect major changes in terms of spending. spain's economy is in good shape. that's not a major concern for investors. you can see that reflected in the ibex and stock market, where the bigger stocks are in positive territory the index itself well into positive territory >> let's switch gears here happening now is italy, looking at a live picture of milan,
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where italy is swearing in a new government today's ceremony putting to bed weeks of political uncertainty hanging over global markets. what's the latest there? should investors not need to be worried anymore? >> you go back to sunday we had this idea that the coalition agreement between lega and five stash hr had fallen apt because they could not get sergio mattarella to approve their man, then they decided they can now put someone else forward. giovanni tria will be the new finance minister in italy. the cabinet members have been lined up, they've been approved by the prime minister. they have a parliamentary vote they have to get through next week, but they have the
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parliamentary majority the question is how will these guys behave in terms of their relationship with europe and will their spending plans, welfare spending happen? when will they happen? will they get the tax rate down to 15%, 20%, and how will they behave with migrants mateo salvini wants deport some 500,000 of them. >> isn't this in the end everything they wanted minus savona as economy minister after weeks of drama, isn't this the outcome five star and lega anticipated? >> lega also ended up with s savona as a minister, he will be
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in charge of european affairs. he will be in brusseled a ls spg with his european counterparts migration is something that will be important to watch. it's the summertime, we see thousands of people crossing the mediterranean into italy that may give salvini a boost, but it will be interesting to see how the bond market reacts with this gdp/debt ratio at moment looking only to get worse. >> peripheral europe a big focus this morning willem, thank you. let's check markets now as we get ready to kick off a new trade month. it's june. futures look like they'll start positively the dow indicated to open up by 90 points. s&p by 10, and the nasdaq up by 28 on the treasury side of things, we're seeing that risk aversion come off the table at this
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point. the ten-year is now selling off a little bit yields higher by 5 basis points, 2.88%. two-year note at 2.44% as for the currency side of things, it's been a big focus. we've been focusing on the canadian dollar, mexican peso. you can see right now euro is 116.81 dollar strength there, euro weakness dollar against the pound, pound versus u.s. dollar, 1.3295 as we get ready to kick off a new month let's look how we finished may the dow, s&p and nasdaq having their second best month of the year the nasdaq the stand-out with a 5% gain. as for sectors, 7 of the 11 finishing last month in the green. telecom was the worst performer down more than 2%. but check out technology, up 7%. you have to wonder if this tells you how the investor is trying
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to allocate money in this market looking at sectors more insulated from these trade fears. >> technology did fall during the recent market turmoil. but it didn't fall by nearly as much as people thought it might have been a good sign for the bulls. we'll see if that plays out in june speaking of that international stuff, it was the small and mid cap stocks in the u.s. that outperformed new records across the board for those small cap stocks u.s. tariffs against canada, mexico and the european union go into effect today. they include a 25% tariff on imported steel and a 10% tariff on imported aluminum mexico, canada and the eu all announcing plans to retaliate with their own tariffs against american products. we'll see how that plays out we got the formal announcement from canada and mexico yesterday. we're still waiting to see what that list from the eu looks like ten pages worth of possibilities earlier this spring when all
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that trade talk happened >> art cashin yesterday was saying this trade war or escalation between the u.s. and its trading partners is a concern, but it's hard to quantify we need to see how earnings impact before we understand the true impact on markets >> that's why markets continue to hover in this range not a lot of downside or upside volatility >> wilbur ross is headed to china today for trade talks. eunice yoon has what to expect from beijing >> first on the trade and the tariff decision, china blasted the trump administration's decision on the tariffs. the foreign ministry said today a responsible country should carry out responsible policies and take responsible actions many countries are worried about the practice of unilateralism and protectionism. papers are calling for the eu to stand up together with china against the united states. the global times ran an
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editorial which says time for the eu to rise up against the u.s. tariff. china and the eu should take a firm stance when confronting the united states. china has been trying to present itself as the adult in the room when it comes to the united states and the defender of opener, freer trade. just this week china announced they would cut imports, on more imports. in addition to that it said it would provide foreign investors with the long-awaited negatives list which is the area where foreign investors would not be able to invest by june 30th. this is coming as secretary ross is expected to come to town. the advance team is already here it's more than 50 people from various parts of the government who are laying the ground work for his visit. secretary ross confirmed that he does plan to leave on friday for
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beijing. officers here have said his trip is still up in the air and people familiar with the talks have said a lot of this will depend on how the conversations go based on the makeup of the te teams, it's agricultural experts and energy experts so it looks like the focus of the team here is on the trade deficit. guys >> i guess one question out there, how do these trade tensions complicate or stop china from helping the u.s. with this north korea issue and the summit that is expected to come up >> absolutely. that's a big question mark, how china would utilize its relationship with north korea and how that factors into the whole equation i think a lot of -- i spoke earlier this week with the chinese officials who are familiar with the trade talks and involved they said they were feeling
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frustrated with the way that the administration had connected these two but then at the same time as we heard over and over again, the chinese have been using this relationship with north korea as well as a bargaining chip. >> eunice yoon, thank you very much for that update let's dive into the trade impact on the overall markets joining us now is mark avalone as we talk about the market impact seema spoke to art cashin, it's hard for investors and traders to handicap these trade talks. what are investors ultimately to do >> we just maybe will hope this is another case of trump just getting out in front of some grand negotiating strategy and his folks will go on the sunday talk shows and pull it back a bit because frankly it doesn't make a lot of economic sense we have not heard much positive reviews of this. it creates confusion
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it slows down normal economic flows, and any free market economist will tell you that these tariffs don't help they'll have a huge negative effect a lot of farm state republicans will be hurt a lot of the industries he's trying to protect will be hurt and consumers will be hurt we hope there's ultimately a pull back and we can get back to market fundamentals from an investment standpoint. >> we're trying to assess the earnings impact but what about the economic impact. some people say these trade barriers will slow down growth in the united states, but then there's the thought that inflation will rise because when you add these tariffs on steel, that results in less supply and therefore steel prices moving higher, the inflationary effect could be felt by consumers >> sure, inflation is never good for stock prices if it's going to be good for consumers and we have rising prices, that's going to slowdown
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this economic growth i think what the president should do is listen to the people around him telling him that this does have a negative effect on consumers. the fed is trying to raise inflation, because what we don't want is hyper inflation from 25% tariffs on a global trade war. >> mark, as we talk about the developments here in the u.s., those are key on the trade front. we've also got political turmoil that is maybe resolving itself in italy they have a government is starting to really kind of take hold in spain as rajoy faces a no-confidence vote does this feel like the european contagion of old or is this something that will be contained to just those countries and we move past it >> i think it will be somewhat contained, but i think the eurozone troubles will be kryptonite to jay powell's plan to raise interest rates four times this year. there's no way with the troubles over there in europe and the strength of the dollar that we can continue to raise our interest rates it's going to hurt our
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exporters. it's going to hurt corporate earnings, it will create another headwind you have not only the tariffs, global instability the fed will not be able to raise rates four times this year which is actually going to be net positive for u.s. stocks, especially in the second half of the year >> so you're bullish on this market mark, thank you for joining us your big individual stock stories include samsonite. that stock surging 13% in hong kong trade as the company's ceo resigned the move comes less than a week after a short-seller blew orca capital attacked the luggage company's accounting practices. cost c cost ccstco's third r forecast beat estimates. same-store sales rose 7%, price cuts and higher shipping costs are pressuring the margins the company announcing it will
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hike men mum waginimum wage to hour. lululemon q1 beat due to online sales they are raising second quarter guidance the stock is at an all-time high in the premarket. we're just getting started on "worldwide exchange." on deck, a big bank in big trouble. deutsche bank feeling the heat after a major downgrade. why this could be the stock to watch today. and the winner is a new national spelling be champion crowned last night we'll tell you the winning word. as we head out a look at the best performing global markets during the month of may. stick around with public services without starting from scratch. it brings your business up to speed, doing more with systems you have in place. it can bring all your apps to life and run them within your data center. it is... the ibm cloud private.
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welcome back to "worldwide exchange." let's check the market action this morning futures are indicating a positive open for the dow. just 90 points if things stay the way they are the s&p up 10 points the nasdaq up by 28. we'll see if that trend of technology outperforming carries into june. as for the treasury side of things, we're seeing bonds sell off an interest rates rise on the treasury side of thing the ten-year treasury note yield, 2.88% two-year treasury note, 2.44%. deutsche bank getting slapped with a big credit downgrade from s&p 500 the rating agency says the
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lender is set for sustained under-performance. let's get to annette with the latest >> thank you very much yes. that credit downgrade was much awaited. there was speculation about it in the markets for weeks what are they saying they are saying that they're seeing clear execution risks when it comes to that new strategy, and they have not expected such deep cuts when it comes to the restructuring of the bank we had the head of commerce of the bank, we asked whether he thinks the bank is vulnerable right now. take a listen. >> we are, if you look at our share price yesterday vulnerable for speculation. it's -- we are vulnerable when
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bad news comes out, that the market reacts heavily. we are shifting, redefining the core these are things we're doing, it's tough, sometimes bumpy, but we have quite a lot behind us. we know what we have in front of us, we have a plan >> the problem with the bank, with deutsche bank is they had a plan for so many years, investors are losing a bit of their nerves here. implementation was the weakness of the bank for so many years. the last ceo didn't get the bank on profitable footing for three years in a row the new ceo has a lot of pressure on him to actually deliver. >> a lot of pressure on him certainly, that stock down 40% over the past 12 months. thank you very much for that report >> still ahead on "worldwide exchange," it's mystery chart time again can you guess this particular
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stock? today is a big anniversary for the company. tweet us your guesses. we'll have that answer coming up. and hawaii on high alert mandatory evacuations ordered as lava threatens more neighborhoods. an update on this developing story when "worldwide exchange" comes back overwhelming air fresheners can send you running... so try febreze one. with no aerosols and no heavy perfumes. so you can spray and stay. febreze one.
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your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain-health supplement in drug stores nationwide. prevagen. the name to remember. welcome back to "worldwide exchange." it's the first day of the month. let's look at how futures are
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trading. we are set for a higher open the dow is up 99 points. nasdaq up 30 s&p 500 is up by 11 points look at the peck chicture in th market it was a volatile month, but energy is one of the best performing sectors in may. today we are higher, 67.27 ice brent up fractionally at 77.85. ulta beauty reported first quarter earnings that beat analysts forecast. same-store sales rose about 8%, but ulta's second quarter outlook is below what some analysts were expecting. we're seeing some moves lower. down about 5%. gamestop's first quarter earnings and revenue were in line with estimates, but same-store sales fell more than expected on a drop of sales in video game hardware and
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software gamestop naming shane kim as pro interim ceo. shares off by almost 4%. and shares of workday are lower. the cloud software company posting better first quarter adjusted earnings that were generally in line with forecasts. it also raised its outlook for subscription revenue this year nonetheless, shares down about 3% in the extended trade. we are following a developing story out of las vegas. contract negotiations are still under way between vegas's hospitality union and casino operators. a midnight deadline passed with no clear deal in place tens of thousands of workers are threatening to walk off the job if they don't get better pay in their new contract. let's check on other top headlines. frances rivera is live at the nbc new york studio with the
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latest >> happy friday to you hawaii residents are facing a new strict evacuation order this morning. leave within the next 24 hours or face arrest the order coming from the big island's mayor aiming at anyone deciding to stay as the volcano eruptions show no sign of stopping 17 blocks of the estates are off limits indefinitely. the number of evac ways, it has risen to 2500. president trump is awaiting a letter from kim jong-un today hand delivered by north korea's top diplomat this after a flourish of meetings in new york city. mr. trump praised the progress being made towards a deal with north korea. all right. here's an excuse dump out that healthy breakfast this morning you can cheat. it's national doughnut deal. burger king will be cutting a hole in the middle of its
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whopper to create their new flame grilled doughnut dunkin' donuts will treat customers to a free doughnut with the purchase of a beverage. >> thank you you've given us so much to think about. >> i'll have some of those >> i had four already. >> a hole inside of a big mac or whopper? >> doughnut slider, i like it. still ahead, we're talking trade turmoil. wall street squarely focused on washington, d.c. today as fresh tariffs go into effect we have a live report from our flags nation's capital. and $10,000 for your thoughts one state paying workers to move there. this is a story about mal and packages. and it's also a story about people. people who rely on us every day to deliver their dreams they're handing us more than mail
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june boom or swoon what to expect for your money as we gear up for a new trading month. the may payroll route out in a few hours. we'll tell you the number to watch. the eight little letters that made one texas teen a big champion today it's friday, june 1, 2018. you're watching "worldwide exchange" on cnbc. ♪ >> welcome back to "worldwide
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exchange." i'm seema mody >> i'm dominic chu a developing story in spain. members of parliament are currently voting on the fate of the prime minister, mariano rajoy. you're watching live shots now of that parliament making its vote so that will be a big deal details on that coming up. italy swearing in a new government the ceremony puts to bed weeks of uncertainty hanging over those global markets deutsche bank getting a credit downgrade from s&p 500 the agency said they are in troubled condition, it is still investment grade but just barely let's check early market action may was a positive month for u.s. stocks despite those fears around trade, politics out of europe, the major averages in
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the u.s. closing higher for may. on june 1st we are higher by 127 points on the dow. we gained a bit of steam here. s&p 500 is also in the green looking at the bond market that's been a central concern for investors as yields dip below 3% the ten-year at 2.88%. >> we were just showing you madrid and the parliament in spain making its no confidence vote on prime minister mariano rajoy. those live shots are starting to come to fruition with regard to the vote we'll go out to willem marx in london with the latest look at what's happening what can you tell us about the vote, where are the yeas and nays >> those voting in favor of no confidence have hit that magic number, 176. that was the majority needed for
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that motion to be passed that means that mariano rajoy is ousted as prime minister of spain after more than six years in pouz wer. pedro sanchez will automatically be sworn in as new prime minister that's thanks to a couple of smarter parties from the basque region, the catalan region supporting this motion this follows on from a huge corruption scandal that engulfed the party of mariano rajoy, following on from his behavior with catalonia over the last nine months. that's why the basque separatist parties joined forces with the socialists in this vote. they promised they would if things were not resolved in catalon catalonia. they've not been resolved, that's why he's out now, mariano rajoy, as prime minister >> any idea whether this will fuel those populist parties in
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catalonia to vote for that referendum and from separating from spain what we know from pedro sanchez is he will not change policies too dramatically he said he will change the tone. he will reopen conversations with separatists about some of their demands, obviously a separate state is not something he will seek, the constitution of spain does not permit that now. rajoy cut off communication. he went after some of those leaders, put some of them in jail, forced some to flee the country. pedro sanchez said he would like to have conversations with those separatists. it's going to be interesting what happens between madrid and barcelona. pedro sanchez pledged he will continue with the budgetary plans put forward by mariano rajoy. so we don't expect major changes to spending. >> willem marx, thank you very much for that update you can see now madrid and the parliament there applauding this
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particular vote. i'm sure not everybody is applauding, but mariano rajoy is ousted as prime minister of spain. a bit of uncertainty there let's get you up to speed on what's happening with the markets in spain the ibex currently up by 1.7 5%. we'll see if that plays out in the coming days and weeks given the outlook for the budget government and everything else >> bigger picture, the ibex lost about 6% in the month of machlt may and italy down about 10% >> it's not like we saw a massive selloff in the markets it's this is a repricing of political risk. u.s. tariffs on canada, mexico and the european union go into effect today. eamon javers joins us live from washington with the latest
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>> good morning. those tariffs are now just over five hours old the president made the announcement yesterday through his commerce secretary, wilbur ross, who is the person who put out the details here on those steel and aluminum tariffs going into effect on some of the united states closest allies citing national security concerns, that's canada, mexico and the european union the president did not address this publicly. the white house did release a statement on paper from the president explaining his decision here's what they said. he said the united states has been taken advantage of for many decades on trade those days are over. earlier today this message was conveyed to justin trudeau, the united states will agree to a fair deal or there will be no deal at all. speaker of the house paul ryan, the president's fellow republican issuing this statement disagreeing with the decision by the administration saying i disagree with this decision
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instead of addressing the real problems in the international trade of these products, today's action targets america's allies when we should be working with them to address unfair trading practices of countries like china. we also saw kevin brady, one of the president's allies on the tax reform issue issuing a statement disagreeing with this decision a real split in the republican party over what to do in terms of america's strongest allies and trade. you saw responses from all of the allies, not happy with this decision from justin trudeau on down to mexico and the european union, all announcing retaliatory tariffs in place or coming of their own. >> that's just the public sector the koch brothers, the billionaire conservatives also weighing in against those trade tariffs. thank you very much for that >> you bet let's discuss what this could mean for the markets joining us is albert brenner, director of asset allocation strategy at peoples unite the
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bank as we talk about the uncertainty around trade we know that u.s. i i insulated businesses have been out-performers is this the place where investors should continue to put money into >> well, i'm not convinced that's the case now. when we look at small cap valuations right now, small cap evaluations are trading at over 28 times forward earnings. that certainly is above the median compared to a large cap stock, which is trading much closer to historical median. generally speaking we expect large cap stocks have a larger international exposure but i think it's a little bit early to rush to judgment that this will be a permanent valuation adjustment for large cap relative to small cap stocks >> do you think trade fears are
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overstated where should investors put their money to work? >> i -- they may be overblown. the concern was for a while the market was getting adjusted to the president's negotiating tactics on trade i think the first movements -- the first tactics sort of roiled the market the market got used to this aggressive trading tactic. the fact these tariffs have been implemented will cause the market to reassess whether or not they can be so complacent or about those tactics. that's going to affect valuations going forward in terms of where investors should be looking for investments, i think it's still too early to be making major adjustments to portfolio
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allocations right now. other than to look at some of the details within the allocation to industrials. looking to see to what extent you have companies with large foreign exposures, where, in fact, they may be susceptible if these sort of earnings -- i'm sorry, if these tariffs stick and do disrupt our export power. >> all right albert brenner, thank you very much a lot of things to digest. everything is all interconnected albert brenner of peoples united bank >> in may we saw such an interesting divide in terms of the winners and losers energy gained 3% in the month of may. industrials did well this is one sector analysts had been saying with the tariffs in play steel prices going up, that will increase input costs for these big industrial names, yet they did well in may >> a lot of financials did underperform during that time
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span it's something investors have been talking about time for the top trending stories. leslie picker is here to break it down for us >> we're starting today with a new poll on teens and social media. kids are actually leaving facebook it's interesting because that poll shows numbers are down from 2015 ever thought about leaving the city behind for something more scenic? vermont will pay people $10,000 to move to the state and work remotely as an out of state employer the idea is to boost vermont's population and bring down the average age. sounds tempting. >> here's the thing, i guess
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it's a calculated risk it comes at a cost you're trying to get these people in there. you hope they end up paying property taxes, grow the economy around them. how much do you make off of doing this and giving out $10,000 every time somebody does it >> they say their work force is down 14,000 people since 2009. i think they're looking to get people working, spending, buying more maple syrup >> killington has some good slopes >> where do the income taxes get paid >> that's the question a texas 14-year-old taking the top prize at the spelling bee. the winning word is koinonia can you spell that >> here is the champ spelling i it >> koinonia.
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k-o-i-n-o-n-i-a. >> that is correct >> wow this yourear's winner takes hom $40,000 in cash. >> every year it's an indian the indians love spelling bees my parents put me in them and i wasn't good. >> i still note word i missed. what was it? >> it's embarrassing, it seems like an easy word, but bookkeeper two ks i still hold a grudge over that one. >> thanks. still to come on "worldwide exchange," your mystery chart is revealed the stock had the best day ever yesterday since going public in 2010 tweet us your guesses, we'll bring you the answer when the show returns as we head out, a look at may's best performing sectors in the s&p 500. stick around "worlddexcng wl wi ehae"ilbe right back
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♪ tired of wrestling with seemingly impossible cleaning tasks?
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using wipes in the kitchen, and sprays in the bathroom can be ineffective. try mr. clean magic eraser with durafoam. simply add water, and use in your kitchen for burnt on food, in your bathroom to remove soap scum, and on walls to remove scuffs and marks. it erases 4x more permanent marker per swipe. for tough kitchen and bath messes, use mr. clean magic eraser with durafoam. brand power. helping you buy better. it is time to reveal the big mysteries chart. today is the tenth anniversary of this company's bankruptcy yesterday the stock had its best day since it reipo'd back in 2010 can you guess it yes, general motors. that stock seeing a massive bump in yesterday's trade on the news that softbank's vision fund is investing 2.$2.25 billion in the
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gm cruise division the autonomous vehicle venture jamie is joining us now. this was a massive move higher for a stock that doesn't react in this way. is this investment a vote of confidence in gm >> thanks for having me. good morning it's an important component to what all auto manufacturers and supplierers are tiers are tryin, create a nar tefrative around technology they shored up their core business from a margin long-term. this is an element where we think gm is a leader, certainly among oem peers if not among waymo and others this is a very important data point here from a valuation perspective on a business that
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was progressing faster than the market may have appreciated. >> we've been trying to understand the winners and losers after that imposition of tariffs. what does it mean for the auto players? >> i don't think it really impacts gm, ford or chrysler or the 25% imposition on imported vehicles broadly there's an imbalance globally period we think certainly more tariffs probably is not good for any of the autos. at the margin we would favor midline domestics like gm, ford, chrysler relative to imports like honda and toyota. there's far more questions than answers at this point. a lot of these vehicles depend on suppliers if suppliers are under pressure,
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by definition gm and ford will be >> a lot of this has to do with -- we talk about the come testimon testimony -- competitive landscape. as you look at your coverage universe, how does the entire ecosystem function on the imported side, the foreign automakers and the u.s. ones given the state of play right now with trade and tariffs >> there's a lot to unpack in that question. that question covers a lot let me see if i can attack it. first and foremost on the ice side, you we are seeing downsizing going on. in other words, 8cylinders going down to 6 turbo charged. to the degree they have to import parts, there's going to be tariff impacts.
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we will see more reliance on suppliers in the near to mode yum te medium term. fast forward 10, 15 years. more hybrids will be bridging the gap between ice, internal c c conbustible engines. we'll see how this plays out over time. hard to see a positive silver lining here regardless >> got you jamie, thank you for joining us and bringing us those thoughts on not just gm but the global landscape. >> thank you we are approaching the top of the hour, that means the team is getting ready for "squawk box. becky quick is live in new york with a look at what's coming up. i have a feeling it's going to be a sweet morning for you guys. >> it is it's because the jobs report is coming up.
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no a lot of things going on, but we have a sweet jobs report at 8:30 we have a cast of characters who will guide us through that getting us up to the jobs report that will be kate moore joining us, blackrock's chief equity strategist austan goolsbee and michael strain will join us. we'll talk about the numbers with them, and the tougher trade talks, what it could mean for the jobs picture down the road some people are looking for a 3.8% unemployment rate could be a historic morning. what you were talking about, it being a sweet day, national doughnut day nigel travis will be joining us from dunkin' donuts to talk through things, and we suspect he'll bring doughnuts. we suspect that because we kind of asked for it andrew has a habit every year -- >> i've heard. >> i've seen >> last year i think he ate 8
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fwlaz e glazed doughnuts, that's 2,080 calories we hope today he will go for a new world record you have seen nathan's famous? joey chestnut will be here this morning in the guise of andrew, we hope to get double digits >> we will be watching becky quick, thank you very much for that look. there's still a lot ahead on "worldwide exchange" including the countdown to that big jobs report like becky mentioned, we're a few hours away from that may jobs report. the magic number you need to wodwe for when "rlid exchange" returns after this break.
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this is no ordinary coffee. it's single-origin kenyan coffee from the nyeri highlands, 6,000 feet above sea level. but how do you really know that the beans journeyed to the port of mombasa and across the pacific? that you can trust they're 100% authentic? ibm blockchain. a smart way to track every step, ensuring this coffee did indeed come from 6,000 feet above sea level. and not a foot lower. ♪ ♪ that big may jobs report coming out in a few hours joining us to break it down, danielle dimartino booth what is the big number we need to be watching for >> i'll watch to see what we're seeing in mooanufacturing,
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construction, trucking those are the three hottest industries now we've had a major supply chain disruption, exacerbated by the trade war talk you've been talking about. i'll be looking at those areas to see if the labor grab continues, which follows up again all of these supply chain disruptions. it's interesting i've been following pretty closely in the adp data services and service hiring is at the weakest point, dom, since last september. if you peer into the challenger layoff data, hiring intentions have gone from 440,000 in 2017 to 220,000 so there are major undercurrents underneath this industrial labor grab we've been seeing i'll be paying close attention to some of the weeds >> what about wage growth?
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any movement there >> i don't follow average hourly earnings as closely as i follow average weekly earnings. that's what you take home in your paycheck. if you adjust that for inflation, which we know what been ticking up, in upper incomes it's turned negative, and in middle and lower incomes it's almost at a negative rate inflation is starting to bite. i'm following those average weekly earnings like a hawk. i know everybody's eyes will be on average hourly earnings and whether the employment rate drops down to 3. %,8%, a lot of this has to do there's not enough skilled workers out there, but our economy is 80% services that's what i'll be watching >> big things to watch for sure. danielle dimartino booth, thank you for joining us on "worldwide exchange." the jobs numbers will be front and center for so many investors. it will play out in all parts of
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the market >> costco and lululemon igporting last nht that will be a big story today "squawk box" is next n and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.
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two major political events are moving markets, but not here it's in europe global markets are taking note spain replacing its prime minister, and italy introducing a new coalition government s&p cutting deutsche bank's credit rating after the fed made some comments about that lender. the bank's ceo trying to reassure employees today. and planning for a possible strike 50,000 casino workers could walk off the job today as labor contracts have expired with no deal reached
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it's national doughnut day i think the record is 8 for andrew >> we're going for 10. >> no. >> it's friday, june 1st, national doughnut day, my father's birthday, 2018. "squawk box" begins now. ♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. it's friday. we're ready to go. i'm becky quick along with joe kernen and andrew ross sorkin. it's national doughnut day, andrew is gearing up >> you think it's like a contest. i just enjoy doughnuts you guys can have the contest. you should all eat and drink in moderation >> nathan's. >> it's like the hot og. >> one or tw

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