it's 5:00 a.m., here's your five at 5:00 we're reaching records stocks jumping to new highs as the u.s. and mexico strike a trade deal we are on washington watch those nafta talks roll on today. next on the agenda is our neighbor to the north. consequences for canada. larry kudlow sounding off saying if the two countries cannot reach a deal auto car rif tarif be on the line. and pointing fingers that's what the ousted papa john's founder is doing this morning. and ipo in jeopardy.

the saudi king hitting the pause button on saudi aramco's plans to go public it's august 28th "worldwide exchange" begins now. ♪ good morning welcome to "worldwide exchange." i'm dominic chu. let's get straight to the markets. stability in the futures side of things the dow opening up by 17 points. the s&p just about flat. the nasdaq up by 9 on the treasury side of things, those ten-year u.s. treasury note yields are moving a bit ten-year note yield at 2.85% the two-year at 2.65%. in asia in the overnight session, we were seeing a bit of a reaction to some stuff happening on the afraid front. the nikkei in japan just about flat the hang seng up a quarter percent. the shanghai off by 0.1% in europe, as trading just kind of gets going, here a check of

what's happening over. there the dax just about flat. the ftse 100 up by 0.25% the ftse mib off by 0.10%. here's a look at commodities and currencies oil on the wti side up about a quarter of a percent $69 there. the euro at 1689 gold at 1219 bitcoin is at 6915 so let's talk more markets with bill stone, chief investment officer at stone investment partners. as we talk about the way markets are set up is there any reason why we should think this run cannot continue >> at least on the fundamentals, i don't think so i think the economy, u.s. and globe continue to grow again, you know, maybe a bit of slowing on both parts, but not near any part where you would worry about recession. the earnings backdrop is good.

good news to start the week on the trade front. i think the place you keep an eye out is certainly if trade deteriorates again, china is a big part of that there's good feelings that we're not starting trade wars everywhere we have some things done we'll see how china plays out. certainly the domestic political issues here could play into some volatility as well >> bill, as we talk about the way the current political environment is shaping up, is it fair to say the midterm elections will be a market catalyst are we making too much of it do we see a handicapping in realtime of what's happening with those anticipated election results? >> i think the hard part is from what i watched, the market is assuming the republicans lose the house. when that's already seemingly being priced in, i think that that maybe it's not as big a

deal the place where the work i've done, historically in times when you've had impeachment proceedings start with nixon and clinton, i don't know if that's the direction things will go, but it's something as due diligence i have do as an investment person, you have seen market turbulence. the hard part is it is never just one thing nixon, they have the oil embargo ahead of that. in clinton we had russia getting close to default long-term capital management collapsing so it's hard to separate the two. that's a piece that may not be the changeover in the house, but some other things that could come from that >> that's on the political side of things. let's go more global and macro emerging markets as we look at how things are shaping up we found a bit of a near-term bottom at least. it feels as though some people are dipping their toes back in has the emerging market trade played out enough where people can feel comfortable now starting to take a leg into

positions on that side of things because things have been so beaten up in. >> yeah. i think if you're underweight meaning markets, it is worth looking at i'm not ready to go overweight yet. i think the value is interesting. certainly if you're a believer like i am that the global economy will continue to grow, i think it makes sense to be there. you just continue to probably, as you know, you probably see some more volatility we still have a lot of countries like turkey, their problems are not solved luckily they're a small part of that emerging market index, in and of themselves they're not meaningful in china, that's one to watch. we get pmis at the end of the week that continues to have slowing, which is concerning. >> bill, if you look at that global economic data as it is shaping up, you mentioned emerging markets are not an overweight are there places you recommend people still go into or should overweight or put position on in if they don't have them right

now? >> i think in terms of international, i like japan. it is exposed to the trade conflict between the u.s. and china. but the difference with japan is -- it's exposed to global growth the difference with japan, you have companies that are typically on the whole solid, they have even more cash than the u.s. companies hold. growing dividends. i think it's a spot much cheaper than the u.s., something like 12 times earnings, instead of 17 times earnings that's a place to look >> it sounds like you're positive on what's happening with the markets is there a potential downside? what's the thing that we're not watching for that could derail everything here? >> i think a couple things one is, as you know, when things get too good or too happy, any sort of little blip becomes a

problem. i'm watching if we get bad news again on the trade front with china, that's a blip that could show up. you have to watch the yield curve. i know people talk about it. i don't think that looking at the ten-year minus the two-year signals the end of doom if it does invert. that being said i wouldn't be surprised if the market reacts to it, and that's what matters there's a couple things to keep an eye on. >> bill stone, always great insights from you. canada's foreign minister is planning on visiting the u.s. after mexico and the u.s. struck a deal to overall the free trade agreement. president trump says he could impose a tariff on cars if canada does not join its neighbors. larry kudlow said he hopes canada would look at the

negotiations between the u.s. and mexico for inspiration >> we really would like a deal with them. there are a bunch of issues. we've been at it for some time they know the issues, we know the issues but i must say from time to time, the president has said if we can't reach a good, strong, fair deal with canada, we migh have to resort -- the u.s. might have to resort to auto tariffs >> so let's talk more about this now with megan casella, trade reporter with politico can you take us through the general framework? it seems as though there's not a lot of details yet what did we agree on with mexico >> so what we agreed on with mexico is a preliminary update of nafta president trump said yesterday he does not want to call it that they modernized that deal. they changed the automotive rules which means they are increasing the amount of content

of every car produced in north america. they're increasing that flesh hol tl threshold. they are trying to raise wages down there in mexico, and they're increasing the amount of steel and aluminum in those cars so the broad changes have related to automobiles, and various review mechanisms and other things as well are still on the table those need to be discussed with canada as well so the car details are sort of what we found yesterday. >> megan, it's fair to say the auto thing has always been the main focal point, if you will, with these trade talks between canada, mexico and the u.s what is the next step for the u.s. and canada as we have a framework with the u.s./mexico agreement? >> they need to bring canada back into the fold that's supposed to happen this

morning. canada's foreign minister is supposed to be back in washington today to resume talks trilaterally if the u.s. is not able to make headway with canada and there are still a significant number of issues on the table relating to dairy, golf prompt pt governn procurement it will be difficult. they will have to get congress and industry groups to accept a two-way deal with mexico, when all the time they said they were negotiating a three-way deal >> do we get a nafta that maybe gets everybody in the fold if certain things are agreed on how long would that take >> we can get there. that's what the administration has been pushing for that's what all three administrations have been pushing for for more than a year now in these negotiations. how long it would take it will be tricky.

the trump administration, the trade adviser indicated yesterday that they're planning on sending formal notification to congress on friday of this week that they have a deal that gives them four negotiations to get all parties on the same page they have some room beyond that if they want to keep working with canada. the trump administration also indicated that they may just notify congress that they have a deal with mexico and they're still working with canada and they hope canada joins in. they're giving themselves four days of now then it will get murkier after friday in terms of what do we have? will congress allow the administration to move forward with the two-way agreement when they thought they were getting a three-way one. >> megan, one last point here. a lot of folks are saying the progress with mexico, potential progress with canada maybe means we could see progress on the big one, china what do you hear

about progress on that front >> it's unclear as of now. we heard trump talk about it for one of the first times recently yesterday. he said now is not the time to negotiate with china i think, you now, beyond just that, what we do know is that if they do get nafta off their plate, this gives the trump administration more leeway to work with china. we know that ambassador lighthizer has -- he was sort of hesitant to even reopen nafta. he wanted to focus more onchin in the first place so we know they're trying to clear the runway, trying to clear the decks. the other thing we know is that there's been some fallout and sort of pushback against the administration's trade policies because there's a lot of hurt in farm country and others who are sort of bearing the brunt of these tariffs. if the administration is successful and can reach this deal with canada and mexico, they will start saying stick with us for longer we know it's hard now, but clearly the tariffs worked on

canada and mexico to get a deal, stick with us on china we'll work it out. >> always looking for the bigger, better deal. great reporting, megan >> thanks for having me. coming up later this morning, don't miss steve mnuchin live on "squawk box. he will discuss u.s. trade and the deal with mexico and those negotiations with canada that's live at 8:00 a.m. eastern time we are just getting started on the show. up next, papa john's problems. the ousted founder is sounding off on the pizza giant's ceo. and toyota and uber linking up for a big money deal. how it may affect your next ride when "worldwide exchange" returns. can be relentless.is tremfya® is for adults with moderate to severe plaque psoriasis. i'm ready. with tremfya®, you can get clearer. and stay clearer. in fact, most patients who saw 90% clearer skin

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accusations against steve ritchie claiming the source of the company's poor performance is rot at the top. in a letter to franchisees on his within site he blames ritchie for bad financial decisions, insufficient management skills a toxic senior management culture and misconduct at top levels schnatter said he talked to the board in june about getting rid of ritchie and they asked him to become senior executive chairman they asked him to make a list of recommendations. schnatter also claims that the hr department has evidence of sexual misconduct, harassment and intimidation by ritchie's inner circle papa john's said schnatter's claims are unfounded in a statement the company says once again john schnatter is making untrue and disparaging statements in a self-serving

attempt to distract from the impact his own words and actions have had on the company and our tolde stakeholders papa john's stock is down 1% sin 11% since he stepped down. >> the company hired financial advisers to navigate this whole thing. what is papa john's doing to repair that alleged damage with customers now? >> so they released some new marketing last week, including real tweets from people who said they were disappointed with the company. they said you expected better from us, so did we they are letting customers know they heard them now. we reported on their new franchisee assistance program. so this soap opera goes back and forth. but john now has this website. he says the board is trying to

silence him. this is his company. he loves it he's not letting it go without a fight >> john schnatter and the company targeting everybody you can possibly target at papa john's. toyota is investing about 5$500 million in uber this is part of an agreement by the companies to work together on autonomous cars uber will integrate self-driving technology into toyota sienna anyo anyo minivans a housing check is on deck what the health of the real estate market could mean for you and your money and talk about a big reopening f ashgs oshgao schwartz trng fya comeback, but they need your help he thinks it smells fine, but his mom smells this... luckily for all your hard-to-wash fabrics...

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exchange." let's check the markets. we could be extending that nice rally we've been seeing in the stock market the dow jones would open up by 42 points if things hold the way they are now the s&p by 3 the nasdaq by 17 energy prices. wti crude oil is up on the day so far $69.05 ice brent crude is up, $76.69. let's check on the other top headlines. phillip mena has more on that.

good morning a new twist in the case against paul manafort. according to the "wall street journal" the former campaign chairman sought a plea deal ahead of a second trial which is set to begin next month. the "journal's" sources say the talks with robert mueller's team ultimately fell apart this happened during deliberations in manafort's fraud trial odell beckham jr. is officially the nfl's highest paid wide receiver he agreed to a five-year extension worth $95 million, including $65 million guaranteed despite that massive deal he doesn't rank in the top 45 of highest paid nba players. a young man was injured by a giant sphere in spain's running of the ball festival the town west of madrid replaced its running of the bulls with the running of the ball, hoping to prevent injuries.

but after this most recent running, organizer there's are rethinking their decision. that giant ball weighed 550 pounds >> it doesn't have the same interactiveness that a running of the bulls has thank you very much. still to come on the show, trade turmoil and your money the markets seeing big moves on trade talks what to watch on wall street as nafta negotiations roll on in washington, d.c. and the sounds of summer spotify ranking the top songs of the season we'll tell who came in at number one when "rlidexanwodwe chge" returns after this break

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the record run rolls on. markets hitting new highs, but can those stocks continue their climb. nafta negotiations on deck the u.s. and canada are set to meet in washington today we'll tell you what's at stake and put on your dancing shoes. fao schwarz is gearing up for its big reopening. but it needs your help to do so. it's august 28th you're watching "worldwide exchange" on cnbc. ♪ welcome back to "worldwide exchange." i'm dominic chu. canada's foreign minister is expected to travel to washington today for trade talks. this after the u.s. and mexico

struck a preliminary deal yesterday to overall nafta president trump warning he could still impose tariffs on cars if canada does not join its neighbors. papa john's founder john schnatter is making a number of accusations against the new ceo, steve ritchie, claiming the source of the company's poor performance is rot at the top. in a letter to franchisees, schnatter blames ritchie for bad financial decisions, insufficient management skills a toxic senior management culture and serious misconduct at the top levels of our leadership. toyota is investing about 5$500 million in uber as part o an agreement with the companies to work together on autonomous vehicles uber will integrate self-driving technology into its toyota sienna minivans for use in it's ride hailing network also topping headlines,

could the saudi aramco big ipo be in jeopardy hadley gamble has the answer to that is it on hold or is it shelved for an indefinite period of time >> well, these are the questions, dominic it's interesting to note all of this comes from a report out of reuters citing supposedly three government sources or sources close to the saudi government. they say that the saudi king has decided to pull the plug on this saudi aramco ipo this is something, as you know, that's been in the works over the last two years this 5% stake sale of saudi aramco that saudi arabia hoped could raise the value of the company to $2 trillion. we had something similar to this last week. the oil minister coming out and tamping down on that, pushing back on the idea that the ipo had been shelved, saying it was put on hold, that's because they were looking to buy a $70

billion stake in the petrochemical maker in saudi arabia, sabic. but there's a lot of questions over whether this saudi aramco will happen at all a lot of times plans are announced and then pushed under the carpet, but the saudis have already seen quite a boom from around the hoopla. the talk of the largest ipo for saudi arabia has brought that country into the international spotlight when temperature cos to international investors, getting loans from big massive global banks it's already done a lot for the saudis and for saudi economy, but it remains to be seen whether the sources will actually be proven right dominic? >> hadley, as we talk about the saudi aramco possibilile ipo, ts is a massive undertaking for any capital market participant to be a part of this it also brings more transparency

to saudi aramco. is this something that the saudis want? specifically perhaps crown prince mohammed bin salman >> absolutely. i would say certainly when you talk about what happens in saudi arabia, you have to remember this is a top-down society when the king and crown prince are speaking, they are speak at one person and one voice it doesn't mean there's been a fracture in that relationship, particularly since the crown prince has been pushing for this ipo. this has to do with the economic revitalization of saudi arabia and the sense that they want to move that country's economy from an oil-based economy to one based on a broader array of things it's interesting to note when we step back here and see how much has been accomplished, surrounding this saudi aramco ipo they've been able to bring the stock market in line with regulations they want to put in place, to achieve that listing they want to achieve by next

year a lot of questions over whether this saudi aramco ipo will go forward. what it's done to bring recognition to the saudis in terms of their economy, opening up socially and economically, they have already done very well in terms of allowing this ipo to galvanize the economy and those social reforms so in terms of what it's done so far, it's done a lot for saudi arabia the question remains whether or not it's going to happen >> a lot of variables left to be answered here. thank you very much for joining us, hadley gamble. let's turn to a broader market here's how your money investments look right now as we're halfway through the 5:00 a.m. hour in new york. we could extend a record run for stocks the dow would open up by 43 points if things open up the way they are now the s&p by 4 the nasdaq by 17 bond markets, we have seen a move lower in ten-year u.s. government note yields 2.85% for the ten-year note.

the two-year at 2.65%. on the asian side of things, relatively flat for the japanese market only up by 0.6%. in europe the flat markets are carrying through into that trading. the outperformer right now should be the ftse 100 up by 0.36%. the cac in france, up by 0.10% here's a look at the commodity and currency picture, wti crude, 69.07. gold, 1,219, and bitcoin at 6,918. let's welcome in mona fr

from allianz everyone's 401(k)s and retirement accounts are doing great. is this the time we should be feeling more bullish as the momentum continues should investors be using this opportunity to gradually raise cash a rainy day fund or a war chest for other opportunities? >> thanks. a few things there when you look historically at how markets perform, typically what you see is that in a late-cycle environment markets can do quite well. we've done some analysis looking at the last four fed cycles. on average the s&p was up 9% during the cycle up another 16% the year after the cycle ended. so typically what that has told you is that markets tend to perform well until you get up to that recessionary period so it's usually the one-month to six-month period prior to entering recession where you see a selloff. you usually don't get bear

markets until you enter a session. we're far away from cessionary environment. we feel markets have a way to run here >> so what does that rotation look like? what could it tell us? what kinds of sectors would we want to see outperform to tell us that things could be turning? >> sure. this year we've seen tremendous performance by technology and discretionary. over the last few weeks, since the facebook earnings, we have seen a bit of a pause in technology and discretionary an new leadership emerge. we've seen industrials, healthcare, staples all come to the forefront. as you get in the later cycle, healthcare and staples are defensive. we don't know if there's a need to rotate into those in a large extent, but there's a need for investors to diversify here.

>> i think about financials. i think about the yield mentiont yield is moving lower, the two-year higher. the flattening of that yield curve. some people say that tells us things are getting towards that reserbacessionary phase others say it doesn't matter anymore. is it important to watch the yield curve for a sign that recession it coming? >> historically the yield curve inverting has been a recession indicator. if you look at analysis, after the yield curve inverts on average the recession occurs to 18 months after inversion. so after it inverts, we're not looking at an immediate reserbareserb a recessionary environment

so maybe 25 basis point, ten-year, two year is something equivalent to what 100 basis points used to be. we still have time even if the yield curve inverts. >> we know tactically investors are making nuanced moves between sectors here and there, a day-to-day and week to week basis. from a strategy standpoint, how should portfolio allocations look for u.s. investors? where are the overweights? where are the underweights where should people be more neutral? >> we continue globally to see strength in the u.s. we think there's been a clear divergence economically. that's been playing out in the marketplace. we remain overweight the u.s we continue to see dollar strength here. we think that story will continue out of that falls probability some more volatility and uncertainty around em and more

certainty around that small cap story we've seen done so well this year. we think within your portfolio, overweight u.s., perhaps overweight small caps, within sectors we continue to like the technology winners from disruption longer term but round that out with industrials, healthcare and staples >> there's the strategy from allianz. thank you very much. >> thank you time for the top trending stories. with us with kate rogers kate, i don't understand how this could happen. but maybe a roseanne show something happening? >> without roseanne. we have a lot to cover how do you have a spinoff of the show "roseanne" without roseanne that's the question on fans minds since abc canceled the reboot of roseanne after her twitter tirade after that happened, there was

the announce of "the connors" and it says that roseanne passed away and the story line will follow them. >> a lot of things happened with roseanne barr that made it so that show didn't exist but could this get legs? >> the reboot was successful fans were disappointed even after everything that happened with roseanne barr so there may be a base for that without her. we'll have to see what happens if you're looking for a career change, fao schwarz is returning to manhattan and is looking for a few good toy soldiers the retail location will open in rockefeller center in november and emphasize the experience and purchase fao schwarz will be holding auditions for its staff. they are looking for performers who can dance on the big piano they are also auditioning

magicians, product demonstrators and various costume actors fifth grade talent show, big performance on the piano if things don't work out for me here, i have that. >>ky see that about you. these days it has to be about the experience everything is commoditized everything can be done online. the only way to stand out in bricks and mortar is to make you want to go there and have fun. if you long for the old days when oreos came in just a single flavor, this story is not for you. despite dozens of oreo varieties, there are two new flavors coming the flavors are hot chicken wing >> no. >> and wasabi. the two cookies are only in china only so far. i'm an oreo purist double stuff is okay that's as crazy as i'll get. >> i like the birthday cake with the funfetti >> i never had those

>> the lemon ones are good, too. finally spotify releasing its rankings for top global songs of the summer. coming in at number one was "in my feelings" by drake. the runner-up "girls like you" and "i like it" by cardi b so if those songs have been stuck in your head, you know why. >> my daughter is 1 1/2, but she's been very much into ariana grande >> really? >> yes >> that your wife getting her into that? are you a big fan? >> i don't listen to a lot of those types of songs, but as the father of a future teenage daughter, i'm waiting to see how those tastes development kate rogers, thank you very much. coming up, real estate realities. we're getting a check on the pulse of the housing market. first let's check the dow winners and losers

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♪ we're almost with the sun up at the nation's capitol. with summer winding down, is the housing market cooling off

we have the ceo with us. one concern is that we could be at the peak of the market. is it fair to say the real estate market is showing cracks? >> good morning. thanks for having me on. if you look at the appreciation of homes in the top ten markets in the past 12 months, they appreciated by 14% versus a national average of 5% so there's overheating on some prices the good news is the housing industry is performing well. there's no sign of troubled lowe's like we had in '08 and '09. there's an undersupply of new construction that's part of the reason prices are going up so much it also speaks to a lot of changes in consumer behavior people are preferring to rent.

they're concerned about what happened in '08 and '09. the apartment rental market has shown strength while housing has become less and less affordable on the single family side. >> hessam, are there places specifically in the u.s. that are showing more signs of stress than others? >> clearly there's a bifurcation of markets and it has to do with jobs if you look at the recent slowdown in new york metro in job creation, they're still adding a lot of jobs but it's less than a couple years ago with some tax law change, is that are not favorable for housing in high-end markets, new york home prices have come down. philadelphia, milwaukee are are other examples, also austin and houston where we have a slower pace of appreciation, not so much price declines. on the other side you have coastal markets like boston,

like up and down basically the west coast from seattle to most of the california markets, where you have very rapid appreciation of home prices pushing more and more people into the rental market >> is this just a rebalancing? are those coastal cities and their downturns in prices filtering out into upticks elsewhere in the united states >> you know, it's not -- that's a generalization it's not a clear trend you have seen markets like texas that grew right through the recovery in 2010 through 2015 they this a rapid pace denver has performed well. then you have the recovery markets like las vegas, atlanta, phoenix which were hit very, very hard during the downturn in '08 and '09 and are now creating jobs and not overbuilding. the key trend is not overbilling. one important trend here is that the american dream is as much

about finding a great apartment near a great job as it is buying your first-time home so the macro trend of first-time home buyers accounting for much less of home sales than historically is an important indicator. the fact that that entry level home is less favorable because the tax law changes with standard deductions are higher, there's less incentive to buy entry level homes. so you have the supply and demand rebalancing but also consumer behavior changes. >> there's certainly a lot of things at play in the real estate market. hessamn hessam nadji thanks for joining us the qux q"squawk box" team is gg ready. joe kernen joins us now.

>> you realize it's andrew's week >> joe is in front of us if all i have to do for that to happen, that's a fair trade. i'm kidding. did you see the day yesterday? did you see that 8,000 on the nasdaq? new high on the s&p? >> yes >> this is after all these gains are piling up and we're extended it keeps going >> my 401(k) is great again, joe. >> but it is really kind of interesting to watch this with you happening before nafta. i'm not convinced that's necessarily what it is someone who is at least going to claim to have some knowledge as to what's happening is mnuchin steve mnuchin. he's on today. the treasury secretary scott gottlieb i spent the weekend reading that interview in the "wall street journal," weekend "wall street journal" with the fda commissioner he's like the -- a lot of people

on both sides of the aisle think he's the best one we've had. good guy practicing in internal medicine. and spent time at the fda before, too. >> yeah. you know, you think you have all these answers on how to handle this stuff, you look at all the different ramifications, and you need someone that is considering all of these things. it costs money to develop drugs. the first one gets to market, then the people with the second one, a lot of times they don't develop another one. it stays as the only one on the market you prevent something ordeal with a chronic condition, it might be worth a little bit more money on the front end than having all the hospitalizations. it's nuanced we'll talk to him about that >> of course >> that's about it good to see you there. wilf is here with us today >> i heard >> touch of class for us here, if you can understand a word

i need subtitles no no he was back in europe. he fell back in to it. >> he said they would make fun of him back in england because he would say where is the restroom >> it's a jam-packed show. it will be awesome joe kernen, thank you very much. still ahead on this show, king dollar. the impact of trade talks on the greenback. that and everything else you need to watch on wall street today when we return

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brush like a pro. where in all of this is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you partner with a firm that combines trusted, personal advice with the cutting edge tools and insights to help you not only see your potential, but live it too. morgan stanley. welcome back futures showing slight gains adding to those records we've seen the dow jones up by 52 points. s&p up by four we are seeing a bit of movement in the euro trade. the euro at 1.1696 dollar/yen just about flat the let's bring in kathy lein.

is the dollar trend intact can we still expect to see that trend higher for the greenback >> you have to understand for the better part of this year, the dollar index rose to significant levels as a result of rising trade tensions the fear that it would worsen. now we're getting a change of course from the trump administration we have a deal with mexico, the possibility of a deal with canada more countries lined up. so if we do get some of the additional progress and good news, we could see an unwinding of the long dollar trade what's even more interesting than that, you saw from the german ifo report yesterday that for the most part a lot of economies have not necessarily felt the pain of these trade tensions they do start to ease, then the weakness of their currencies this year start to have a stimulative effect on the

economy. it's all predicated on how the trade talks go >> those trade talks, should we be watching the mexican peso, the dollar cad trade, are those adequate market signals for what's happening on trade? >> very much so. the mexican peso only saw a one-day rise i was surprised that it had not continued today. i do think that the recovery in the mexican peso is intact we'll probably end up seeing further gains here there's only additional progress for the economy going forward now that they've reached this deal with the u.s. the canadian dollar, there's room to the upside the bank of canada could raise interest rates this year that could be the next central bank to tighten the lever. and if we do get a deal this week or sometime next week with canada, that could really take dollar/cad well below 1.29 >> so the emerging market side of things, we are seeing movement there as well

bottoming of emerging market equities are there signals you're seeing in place like southeast asia or places like africa that maybe give you more of a sense of what will happen with those markets >> i think around the world you're beginning to see stability. beginning of august there was a lot of volatility. things are starting to settle down it's the last week of summer everyone has to be cautious. a lot of this is based upon hope the hope for a deal. as we all know, these things could turn on a dime you know, while we see progress now, while president trump says perhaps he would like to see a deal with china, they're not in the position now, anything could happen >> anything could always happen with president trump and the trade talks. thank you very much. that does it for "worldwide exchange." as we watch the markets right now, we could be extending record highs at the open the dow opening up about 45, 50

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good morning the u.s. and mexico reach a trade deal turning up the heat on our neighbor to the north. canada's foreign minister is heading to washington today for some trade talks the founder of papa john's is claiming the company's ceo for all its troubles. and we're learning more about why saudi aramco, that ipo was on hold. a new report says the king has stepped in and put a stop to the process. it's tuesday, august 28th. first day of college classes for a lot of places. "squawk box" begins right now.

♪ live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm beck along with joe kernen and wilfred frost. u.s. equity futures at this hour, there are green arrows across the board the dow indicated up another 55 points s&p up by 4. nasdaq up by 16. this comes after decent gains yesterday. the dow was up by 1% s&p 500, the nasdaq and the russell 2000 all setting new highs once again look at this, the dow, s&p 500 and nasdaq are on track to post the biggest august percentage gains since 2014