it's 5:00 a.m. and here's your five at 5:00. will it be a september to remember wall street kicking off a new month with stocks at record highs. the gulf of mexico on high alert as tropical storm gordon gains some strength. we'll have the latest on that storm's path and the market impacts. the senate judiciary committee kicks off confirmation hearings for brett kavanaugh and the ceo of jd.com was arrested over the weekend. he's back in china at this point. we'll have the latest from

there. and nike getting a lot of buzz this morning after releasing its latest just do it ad it's tuesday, september 4, 2018. "worldwide exchange" begins right now. ♪ good morning welcome to "worldwide exchange." as we look at your money and how the global markets are setting up, we're seeing green on the screen s&p up about 4 points. the dow jones up by about 28 the nasdaq up by 15. the ten-year treasury note yield currently stands at 2.88%. the two-year note yield, 2.64% there. now let's go worldwide in the asia overnight session we did see japan and china move in some different directions. nikkei off by flat

hang seng and hong kong up by about a percent. in europe, we are seeing that kind of tar carry over into the markets there. here we have the dax, down by a half percent the cac off by a similar amount. the ftse 100 flat as well. outside of stocks, here's the global look at commodities and currencies oil, the euro, gold and bitcoin, there are all the moves. wti 1.8% to the upside that tropical storm in the gulf of mexico forming and perhaps gaining strength, that's having an effect on prices. up 1.81% by the way, bitcoin prices on bit stamp, 7,286. let's bring in simon derrick

for some talk about what's happening globally simon, the story this morning from a macro perspective has to be the u.s. dollar strength, emerging market weakness which one is the predominant force? is it the u.s. dollar strengthening or the fact that everyone wants out of the emerging markets >> i think it's the latter you actually look at what the dollar is doing elsewhere. you look at it against the euro, against the yen, against the franc, it's barely moved from two months ago, three months ago. this is an meernging mark iemer story, it's about the trade war, that has come up over the weekend. the continued story of the saga in turkey, the deeper elements there. more generally just concerns about those factors kicking in. there's bigger issues out there as we go into the latter part of the year brexit to italy.

>> we have heard talk from traders and investment managers that this is an opportunity to start billiuilding positions in emerging markets in your mind is it safe to go into those emerging markets, whether it's from the currency side of things, or the equities or debt side of things >> i don't think so. i don't think the fundamental issues have been addressed those remain the high level of dollar denominated debt, a world where dollar interest rates are rising, that's going to become a bigger issue we have not dealt with the issue of tariffs don't think we've wean the end of the trade war yet why would i start want going back into that market? if you look at the overall performance of those markets, all are down in dollar terms the only markets that are up are the u.s. markets >> we're talking so much about the emerging markets story it is important. it's been the epicenter so to

speak with turkey, argentina, everything else. we're not as focused on europe the bank of england, european central bank still have sway are they up there at the same level of importance as the fed with regard to the global macro picture? which is the most important central bank out there >> it's always going to be the fed. it has been through my career. it has not changed now look at the impact mr. powell's comments had in jackson hole to see that broader impact. bank of england does matter, only in the sense that it provides stability going into what could be a particularly turbulent part of the year with the brexit story ecb does matter, that's against the backdrop of a developing potential crisis in italy. of those, i would always choose the fed being the most significant. >> that highlights the fact that the u.s. seems to be at this point the only game in town. it's the u.s. and then everybody else

is that that trend, that momentum that you can sustain? should you ride this momentum wave for the u.s. versus everybody else out there there's been a massive bifurcation. >> i think that massive bifurcation is one of the most worrying things. if you look, it's rare for u.s. equity markets to be totally divorced from what's happening in markets elsewhere in the world. you don't get this kind of divergence that often. the only two times would be 2015 when u.s. markets underperformed and in the summer of 2000. august and september when u.s. markets crept higher but everywhere else recognized the top of the cycle that's a worrying sign >> in your mind, as we kind of conclude this, what keeps you up at night what is the most important risk factor out there that we are not paying as much attention to? >> i actually think it's the uk and the brexit story

i don't think the market properly factored in the different negatives on that side and they can come quickly. they could come as soon as november and december of this year >> simon derrick, thank you very much for joining us. >> thank you >> appreciate your thoughts and insights shares of wpp falling this morning following its latest quarterly report leslie picker joins us with that story. shares off by 6% right now >> that's right. >> guidance is pretty bad. >> it's not great. wpp reporting a key sales metric improved during the second quarter. sales slipped by 0.2% hurt by a rise in the pound, excluding currency fluctuations, like for like, rose 2%. this was the first period of like for like sales growth in more than a year sales rose in all of wpp's markets except its biggest,

north america, where they fell 0.3% despite the upbeat performance, the company reported lower operating margins in the first half of the year the results come a day after wpp tacked mark read as its new ceo following martin sorrell's abrupt resignation in april. andrew ross sorkin interviewed read in june where he asked several times whether he would be named wpp's new ceo read says a review of the company's structure and underperforming operations in the u.s. is under way and promised an update by the end of the year wpp is among the biggest losers on the ftse and london today, down more than 6% now. >> i think some comments were growth will come, but it will come at a cost we'll see if this is that

particular move. thank you very much for that we are also following a developing story in the gulf of mexico tropical storm gordon is quickly gaining strength it is expected to become a hurricane. let's get out to michelle grossman with the latest there >> yeah. we are tracking gordon, churning in the gulf of mexico. the good news is most of the heavy rains in the gulf of mexico, that will change drastically over the next couple of hours impacting the gulf coast states later today we're seeing the location 2 a28 miles east-southeast of the mississippi river. strength is 65 mchiles per hour. it's moving quickly. that's good that way it can't gain a lot of strength we could see it make landfall as a category 1 hurricane it would be a weak category 1. 75-mile-per-hour winds this is the timeline here, 8:00

a.m., 65 miles per hour, maintaining that strength. by tuesday, 7:00 p.m., later tonight, 75 her hour it will weaken as it hits land so that's good news. before that we're looking at gusty winds, hurricane warnings, tropical storm warnings. we could see rainfall up to 8 inches in some spots dom, back to you >> all right thank you very much for that update. an extremely powerful typhoon just made landfall there western japan. it's one of the strongest storms on record packing winds of up to 134 miles per hour this is the 21st typhoon to hit the region this year we are just getting things started on the show. coming up, the ceo of jd.com under fire after being arrested in minneapolis over the weekend. he's back in china this morning. we'll be live in beijing with the latest. and also ahead, samsung's new smartphone the tech giant will unveil a new

gadget and it's probably not what you expect. those details when "rlidwodwe exchange" returns. with tough food, your dentures may slip and fall. new fixodent ultra-max hold gives you the strongest hold ever to lock your dentures. so now you can eat tough food without worry. fixodent and forget it. you mighyour joints...ng for your heart... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.

this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. . a live shot of times square in new york where the sun is trying to come up. wall street getting back to work we'll see if trading volumes pick up throughout the week and the month. turning overseas the fallout is growing after the ceo of jd.com was arrested in

minneapolis over the weekend he is back in china now. cnbc's eunice yoon is live in beijing with the details take us through this arrested for and this is a stra strange story. and what could it mean for jd.com >> yeah. last friday the founder of jd.com, richard liu, was arrested in minnesota on charges of sexual misconduct he was released the next day has since returned to china. minnesota police say the investigation is still active. the company issued a statement today saying that he has been released without any charges and without requirement for bail mr. liu has returned to work in china. so today chinese social media has been completely lit up with pictures of jd's liu at jd's headquarters at an event in

beijing. liu shows up at hq, is currently the number one searched phrase on the internet. that could help ease concerns, at least momentarily, for some of his investors given how poorly right now the stock price is doing in premarket trade. at last check down 4%. >> eunice, just to put a point on this, liu is a very key person, as many ceos and founders are how important is this particular bit of news to jd.com? do we think it will have an impact all of these chinese internet stocks have taken such huge hits over the course of the last few months >> absolutely. his story is so important here he has this ceo celebrity status he is not only the founder and ceo of the company, but he also has a lot of influence in the tech world here in china

so back in 1998 he started this company with a couple thousand dollars. he managed to move it online and turn it into this retailing giant that is the chief rival to jack ma's alibaba. so people are fascinated with his story as well as the personal life, for example, of jack ma as well. the question is what you had said how is that really going to influence the ongoing of the company? because he has such a dominant personality in this company. he is required to be at many board meetings because of that whatever happens to him will influence the decisions at this company. that's probably why investors are nervous this morning >> they have been nervous about chinese internet for a while and this probably doesn't help matters. eunice yoon, thank you very much for that update on jd.com. we'll stick in asia.

in other tech news samsung is set to unveil a new foldable smartphone by the end of this year arjun kharpal has the details live from london i grew up in a foldable smartphone age, they were called flip phones. but this is actually a foldable phone, right >> that's right. this is a full screen that can bend samsung is a leader in this oled technology which is on many of its phones and the iphone x. the foldable screen technology will be unveiled this year, that's according to the ceo of samsung mobile i had an interview with him. he revealed some of the details to me. he didn't give me what the phone design might look like, the specs or the price, but he said more details would be coming in november in san francisco. samsung faced pressure in a

slowing smartphone market. smartphone sales dropped 20% in the second quarter of this year. samsung always has been a pioneer when it comes to new technology it pioneered many large screen devices that we use today and the bezelless device it set a template for the industry he said consumers want this and it's time to deliver he said the development of this has been complicated but they're almost concluded with that this will not be a cheap device. it's likely to be plus $1,000. to won't even be a mass market device to start with probably aimed at a specific niche, but samsung hopes it could reignite interest in his smartphone, sales in its smartphone division, but also set a sem plate that ttemplate y might follow >> to put this in perspective, you said this could be a niche market, but there is consumer demand for it.

during you're travels, what's the sense that people want a foldable screen? how will that impact my life why should customers want something like that? >> i think if you think about it, one thing that the ceo was saying when you unfold the phone, eventually you get a larger screen. how do we differentiate that experience from a tablet and make that a different experience that's one thing they're trying to work on so the idea is that with the foldable smartphone you can have a large screen that you can fold and carry around in your pocket. when you want to do things like watch netflix or some other streaming service, even playing games on your phone, perhaps that larger screen could come into play here but even if it is 7 inches, 8 inches, it's still in a form factor that you can fold away and slip in your pocket when on the go that's the thinking here we're doing more and more on our smartphones, and the way to get a bigger screen is by creating completely new devices

the other thing is consumers are getting bored with the standard looking smartphones. a rectangular piece of equipment. samsung wants to say we have something brand-new, original and something that they can probably charge a hefty premium for. >> arjun, thank you for joining us here. you can learn more about samsung's foldable smartphone right now on cnbc.com. i just looked, it's the lead story on cnbc.com right now. still ahead, we're on washington watch brett kavanaugh's supreme court hearing gets under way today we are headed live to the nation's capital next. and are you craving chick-fil-a? how that fast food chain wants g your nugget fix

. that is a shot of the capitol building in washington, d.c. brett kavanaugh's supreme court hearing kicks off today. tracie potts has the latest. day one of these hearings, what can we expect? >> a lot of frustrated democrats on this judiciary committee they are upset they did not get all of the background information from the white house that they think they need to start this questioning and this confirmation hearing today president trump's supreme court

nominee faces a room full of skeptical democrats today, already rallying against him >> kavanaugh's views on the 2nd amendment are out of the gun lobby playbook >> reporter: they're worried on how kavanaugh would vote on healthcare, abortion and whether the president can be prosecuted. >> he's even argued that sitting presidents should not face criminal investigation no investigation of a president. is it any wonder that president trump chose kavanaugh? >> the trump team released hundreds of thousands of documents from judge kavanaugh's time from the bush administration, more than the past five nominees combined they argue. but the white house is claiming executive privilege on 100,000 pages. that's not right it raises the question what is it they're trying to hide. >> reporter: judge kavanaugh was part of the team that investigated president bill

clinton. >> are legal issues related to the mueller investigation. >> reporter: supporters believe judge kavanaugh would recuse himself in a conflict. >> i never saw him lose his temper he was serious, hard working i'll be surprised if he's rattled in any way i think he's ready for anything they throw at him. >> he's a man with a lot of humility that's kind of a rare quality in this town. >> reporter: the hearing suspected to last four days. >> four days of questioning. four weeks until the supreme court's term begins. right now with one critical swing seat empty >> critical vote on that particular supreme court justice coming up in the coming weeks. tracie potts, thank you very much for that. let's check the other top headlines. phillip mena has the latest on those. good morning >> good morning. just hours after announcing former trump strategist steve bannon would headline the "new yorker" festival, the magazine

says he was dropped. he was scheduled to be interviewed on stage at next month's festival which features high-profile celebrities and other figures, but backlash against bannon was swift bannon slammed the decision and called the "new yorker's" top editor gutless. monica lewinsky sat down for an interview in jerusalem but it ended after just one question. the interviewer from channel 2 news there asked lewinsky whether she still expects an apology from former president bill clinton over the scandal. she explained on twitter that she agreed to the interview with the understanding that the clint be question was off limits. and talk about building chemistry off the court. during a labor day pool party, the uconn men's team showed splash and serious hang time on this video >> amazing >> of course it happens over

labor day weekend. >> i phillip, can you do that? >> i'll need seven friends to do that you, me, a half dozen others, we'll try it >> thank you very much for that update. still to come, oil is on deck tropical storm gordon gaining steam in the gulf. how that is impacting energy prices. and just do it nike's latest ad campaign has all of twitter talking that and the rest of today's top trending stories when orwi"wldde exchange" comes back of good start packaging. r we distribute environmentally-friendly packaging for restaurants. and we've grown substantially. so i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. that's right, $36,000. which i used to offer health insurance to my employees. my unlimited 2% cash back is more than just a perk, it's our healthcare. can i say it? what's in your wallet?

oil alert. energy prices are on the rise as a major tropical storm gains strength in the gulf of mexico we'll have the latest on that storm's path straight ahead. pushing higher wall street looking to kick off the new trading month in the green. we'll find out what's driving today's gains. nike just did it this new ad that's got everyone talking today. it's a big one it's tuesday, september 4, 2018. you are watching "worldwide exchange" on cnbc. ♪ good morning welcome back to "worldwide exchange." i'm dominic which yochu. let's check on the top headlines. leslie picker is back with those. >> here's what's leading

cnbc.com shares of wpp are falling this morning. the ad giant reporting a key sales metric improved b d touri during the second quarter but overall revenue declined this after mark read was announced as the nceo. jd.com's ceo returning to china after being arrested in the u.s. the company's fonder accused of criminal sexual conduct but was released without being charge and without posting bail jd.com maintained the chief executive was falsely accused. and samsung is set to unveil a foldable smartphone this year. the company is focusing on how to make the unfolded phone different from a traditional tablet the device is expected to be unveiled at the samsung developer's conference in november >> leslie picker, thank you. here's how your money and

investments look now as we are halfway through the 5:00 hour. stock futures are mixed. the s&p flat the dow jones would be down by 10 points if they stayed this way into the opening bell. the nasdaq up by 8 points. as for the bond market side of things, ten-year u.s. treasury note yields are moving, modestly to the upside. 2.88% the last trade there two-year treasury note yields around 2.64% on the asian equity side of things, the kneenikkei was just about flat the shanghai was up by a percent. the dax in germany off by three quarters of a percent. the cac in france off by a full percent. and the ftse just about flat outside of the stock market, here's the global look at currencies and commodities on the oil trade, wti crude up

1.75% to $71 and change. the euro, 1.156. gold at 1,201, and bitcoin at $7,280 we'll follow oil prices closely because of that storm brewing in the gulf of mexico let's bring in peter boockvar from the bleakly advisory group. peter, as the markets set up, we have a nice winning streak here for the u.s. equity markets. there's been a lot of issues at play yet the market keeps shrugging them off this is a bullish trend that we've seen for years now does this continue given the clouds on the horizon? >> the u.s. market needs to reconcile what's going on here and overseas we're seeing a clear moderation outside the u.s. we're seeing major issues with some emerging markets. we're seeing poor performance in european equities, particularly european banks

so with 40% of s&p revenues sourced overseas, we can't keep performing the way we are if overseas is going to continue to perform the way they are we need to reconcile this. >> i understand the reconciliation argument. but doesn't that mean the u.s. is just the best investment option available to people out there and that's the reason why we are seeing the flows come here from the capital perspective? >> that's the caseand why we'r outperforming to the extent that we are again, because we are very reliant on global trade, 10% of the u.s. economy is exports, 40% of s&p revenues are sourced overseas you wonder how long that outperformance can take place in light of what's going on outside of the u.s plus we'll get another fed rate hike in the fourth quarter we'll see the net liquidity injection between the ecb, the fed,ed bank of japan go to zero.

it was running at 100 billion a month just in the fourth quarter of last year so we also need to deal with that liquidity stream as well. >> from a macro perspective, we understand why there's stresses in emerging markets. some of them have been called idiosyncratic, turkey and argentina. we talked about contagion and the idea that it could spread. what would lead to a contagion-type situation what would you need to see for that to manifest >> i have my eyes on the european banks you look at a stock chart of the european bank stock index we're breaking to the lowest several level in a few years where european banks go in my opinion is a key thing to watch and how this whole meaning

market distress plays out. there's no coincidence that that is happening as that liquidity draw is happening as each quarter goes on, as the ecb gets closer to ending qe, as the fed continues to draw more liquidity out of the system. even the bank of japan has cut qe in half we'll see more emerging market accidents, things happen when liquidity goes the other way, that's behind the scenes the issue. >> how important are trade and tariff developments to the market they've been present for the better part of a year now, the market here in the u.s. has pretty much shrugged them off. do we care about what those developments are, what kinds of developments to we need to see for them to be market-moving elements >> a main reason for the moderation in growth outside of the u.s. has been worries about tariffs. you go through the pmis that we

saw even yesterday in asia, throughout europe, there was a lot of discussion about a slowdown in export orders. that's what i'll watch in the u.s. worries about tariffs create a reluctance on the parts of ceos to invest. it creates a time-out with how to go forward with business plans. while i am hopeful that a lot of these tariff issues can get fixed and dealt with, deals will be had, it certainly created a reluctance again on the part of business outside of the u.s. to invest >> you made a lot of arguments for temperance, the idea we should be more measure and cautious from the bullish perspective, if you were to put that has the on now what is the case that can be made for the markets and the economy that this thing should be going higher and can continue that trajectory for the foreseeable future >> we've been on an earnings

roll certainly in the beginning of this year, the first half, earnings have been great if that can continue, that can maybe offset some of these factors outside the u.s. fiscal policy, is that enough to offset the monetary headwinds which will only pick up steam as the fed in q4 ramps up quantitative tightening to 50 billion a month from 40 billion a month, that's a run rate of 6$600 billion is the fiscal stimulus enough to offset that? is the fiscal stimulus enough to offset qe in europe? >> i spoke to a portfolio manager over the last several weeks, he says in his meetings with these ceos and cfos one bigger theme he's seeing is there's a concern that there may be a draw forward effect because of the fiscal stimulus here, the tax cuts, everything that's

happening. do you feel that's a warranted risk to watch for? the idea that the stimulus effect has already happened and that it will be tough to continue that stimulus theme in the coming months? >> from a cash flow perspective, that a lot of money was brought here luring the corporate tax rate to 21% is not a short-term stimulus it's a long-term, competitive, important step we took i didn't look at that as stimulative. the accelerated depreciation in terms of capital spending, that's a stimulative bringing cash back to the u.s. was stimulative in terms of buying back stock, maybe also using that as capex. also we had some pull forward with the tariffs there was a lot of get me my supplies now to get a truck to deliver it rather than waiting i see that as a pull forward

rather than the tax cuts the benefit in 2018 from the tax cuts sort of wears off because it's a one-time benefit to earnings, then we sort of cycle it out next year >> so much more to talk about with you i have not even talked about the consumer and that angle yet. peter boockvar, thank you very much gx is ooldman sachs is slapg buy recommendations on nordstrom, kohl's and tjx. nordstrom was added to the conviction buy list. on the flip side, goldman sachs also slapping a sell rating on macy's with a $33 price target on that particular stock macy's share up by 0.1% in the premarket trading. time for the top trending stories. leslie picker has those. leslie, the one that i have maybe got the most attention

paid to this morning is the nike a ad >> certainly controversial colin kaepernick has struck a new deal with nike even as he doesn't currently have a job in the nfl. the former san francisco 49ers quarterback is one of the athletes featured in the just do it campaign. he tweeted in the ad believe in something, even if it means sacrificing everything colin kaepernick kneeled during the 2016 season to protest racial injustice last week his lawsuit was allowed to proceed >> the guy takes a knee, has gets him all the controversy, now he will soak it again with this particular face nike made adeliberate move to do this. >> yeah.

>> maybe this speaks to their customer base more, you wonder if that was the thinking behind this >> i wonder if the tag line there, believe in something even if it means sacrificing everything, if that in and of itself will overcome the controversy and be a benefit for nike, or if it will then just having his face as the subject of the ad company, whether that will be subject to some kind of other protest by people who don't believe in his choice. >> he's a very polarizing figure the political nature of his statements has taken center stage. i remember him as an unbelievably gifted athlete and a football player for my san francisco 49ers. this is one that is going to kind of not weigh on me, but kind of stick with me throughout the course of the day here >> it will be one to watch >> another thing to watch, for the third straight week "crazy rich asians" was tops at the box office the warner brothers film took in an estimated 28$28.3 million ovr

the four-day holiday weekend now it's raked in 1$117 million in the u.s. and canada that makes it hollywood's most successful ramcom in a decade. have you seen this movie >> i have not. people say you're asian, why haven't you seen this movie? the reason why is because i only go to movies in the theaters right now when they are blockbuster special effects driven movies. >> you have a 1-year-old >> i do have a 1 1/2-year-old, but i'll wait for the on-demand or the redbox version of it. i'll probably watch it at some point. it takes a lot for me to get a babysitter and go to the theaters >> i have to wonder what it's doing for the singapore tourism economy as well. highlights that as a place to visit. craving chicken nug kgets wt

polynesian sauce chick-fil-a is offering free orders of 8 nuggets to anyone who creates a chick-fil-a one account or signs into its smartphone app the offer is for regular and grilled nuggets. chick-fil-a hinted the new offer was coming in july when it announced its cow calendar was being retired. >> we have a chick-fil-a story, we have a free chick-fil-a story. >> a little behind the scenes thing, leslie picker came back one day with what looked like a shopping bag full of chick-fil-a. >> was like a suitcase size. >> our managing editor yelled out, leslie brought chick-fil-a for the office everybody was getting antsy about it >> it came over the intercom we have an intercom here in new jersey, it's almost like being sent to the principal's office leslie picker come down to the

newsdesk that's the purpose of it on this day the purpose was leslie picker, can you please bring your chick-fil-a down for the entire newsroom. >> we love chick-fil-a around here >> we do in fact, the reason we got chick-fil-a that day is because our producer here, karen stern, was one of the first 100 people in line when the chick-fil-a opened in englewood cliffs this year if you're one of the first 100 in line, you get 52 free sandwiches so we bought chick-fil-a in a big bag. then i embarrassed because i had nothing for anybody except for some free polynesian sauce >> leslie, thank you for that update the u.s. open will roll on but without roger federer. the five-time champion was stunned last night in the fourth round but an unseeded player, john mill mapman.

millman took control of the match and then won in four sets. it is the first time federer has failed to reecht u.s. open quarterfinals since 2013 next up for millman, a meeting with two-time u.s. open champ, novak djokovic. still ahead a weather alert. tropical storm gordon gaining steam in the gulf of mexico. how this is weighing on oil prices that's coming up next. before we head out, a check on the dow winners and losers. you can see right there, exxonmobil, cisco systems and coca-cola moving to the updesi "worldwide exchange" will be right back we're voya! we stay with you to and through retirement. i get that voya is with me through retirement, i'm just surprised it means in my kitchen. so, that means no breakfast? voya. helping you to and through retirement. with tough food, your dentures may slip and fall. new fixodent ultra-max hold gives you the strongest hold ever to lock your dentures. so now you can eat tough food without worry.

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can help you explore cost support options. remission can start with stelara®. tropical storm gordon is moving across the eastern gulf of mexico. it is expected to become a hurricane. gordon is forecast to hit the northern gulf coast by this afternoon or evening the national hurricane center is already issuing a hurricane warning for the alabama and mississippi coast. so let's check on those oil prices as a result the gulf coast is critical for u.s. refining operations prices are up by almost 2% ice brent crude futures are up by 1.29% let's bring in john kilduff. we know the reason why fundamentally oil prices rise on the wti side of things, but it

felt like for a while now oil prices have been trending higher is this only going to exacerbate that situation >> the hurricane and we're in the peak of the hurricane season now. absolutely not seeing a whole lot of rig evacuations. looks like most have chosen to ride this one out. we'll see what today brings. the latest update from the hurricane center indicated it's going at about a 20-mile-per-hour clip. if they're not off those rigs already, they will have to ride it out production should keep flowing this one won't be that bad but there's tons of activity now in the atlantic. >> we'll hope for the safety of those folks out there in the gulf and that this doesn't turn into a massive situation in the macro side of things, we have seen a number of developments specifically in the middle east and also in africa that could drive prices higher take us through what you're watching what is the most important thing

for you in the oil markets >> if consumers are worried about higher gasoline prices, the hot spots continue to be libya, nigeria and venezuela as ongoing sagas of hits to their oil output, production and exports. this could be the winter of our discontent here. prices go higher and what happens with iran and the sanctions put on iran's energy sector we're already seeing companies and countries pull back from purchasing iranian crude oil if this decline occurs to the extent i think it will, we will lose over 1 million barrels a day of oil from the market to iran russia is pumping, we're pumping. the saudis are close to pumping full out in an environment now of tremendously high demand u.s. refiners are rung at 98% of

capacity last week's gasoline demand was the highest of the season so far. there's a ton of demand out there propping up this price >> what do you think then? what's the price target for the end of the year here for wti and brent? >> i'm not trying to make a splashy call, we're grinding over 70. end of the year for wti, 85, 90. brent, 95, 100. still ahead on "worldwide exchange," global currency concerns foreign exchange markets around the world making big moves what you need to watch as we kick o aff new month

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let's bring in boris s schlossberg. we've talked about emerging markets. they've been weak for a while now. is this the time to feel safe about them >> no listening to john's call on oil, it's almost a complete start of a vicious cycle for them if he's correct at his $80 call on oil, that's a disaster for emerging markets emerging markets have to buy oil in dollars at their weakened currencies it creates a vish scious cycle them under no conditions does it look like we're at the end of it. it looks like we're still in the middle of a crisis the lira, turkish lira -- well, the rand is under pressure today, but turkish lira will go over 7, it's nowhere near the end of this crisis >> where should we watch for the biggest stress out there is it dollar/yen

emerging markets what are the markets telling you? >> on the major side it's deceptively placid and calm. the dollar/yen is not responding it's trading up today. dollar is up against everybody today. which in many ways is ironic the whole idea is that the reason the dollar is strong because of trade war worries, but in fact if the dollar continues to strengthen it will only exacerbate issues on the trade front. i actually think that we're laying the ground work for a serious correction here if all the factors keep going the way we are, oil going up, emerging market currencies going down and no new development, no positive progress on trade negotiations that's the absolute worst part of tchlit if we can't come to terms with the europeans, the chinese or canada, that could create a vicious cycle into september and october. >> things to watch now on the

macro front. boris schlossberg, thank you very much for joining us chgerlids it for "wodwe exan." stay tuned, "squawk box" is coming up next oh, that's great sarah. let's talk about this when we meet next week. how did edward jones come to manage a trillion dollars in assets under care? jay. sarah. so i have a few thoughts on that early retirement... by focusing our mind on whatever's on yours.

good morning wall street kicking off a new month with stocks at record highs. we'll get you ready for the trading day as all these articles swirl about we're at record highs but this is seasonally a weak period remember october, a lot of those selloffs have october dates associated with them. a tropical storm is churning in the gulf coast. we'll bring you an update on gordon's path. and new this weekend, colin kaepernick doesn't have a job in the nfl but he has a big, new

deal it's somewhat controversial with nike it's tuesday, september 4, 2018. "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. >> good morning. welcome to "squawk box." i'm melissa lee along with joe kernen and wilfred frost welcome back from your long weekend. let's look at how u.s. equity markets are setting up s&p 500 set to open up fractionally higher. the dow is looking lower by 22 overnight the action in asia, we did see gains in the hang seng as well as the shanghai, which was up 1.1%. over in europe, see what