it is 5:00 a.m. at cnbc global headquarters and here's your top "five@5." we begin with not so fast. dashing expectations in the month ahead. what he said last night that's giving investors pause this morning. >> and firing back and lashing out. former president donald trump having his say in a prime time address after being formally arraigned in a new york court yesterday we'll have the

highlights >> johnson & johnson looking to put its legal issues behind. and welcoming the new ceo into the fold. they get their first deal after the takeover of credit suisse. it's wednesday, april 5th, 2020. you're watching "worldwide exchange" right here on cnbc good morning and welcome to "worldwide exchange. i'm frank holland. we kick off this hour with a check on u.s. stock futures after a mostly lower sechlgts right now we're seeing a fractionally lower session all three barely slightly in the red at this hour we're seeing movement in the bond market. we're seeing the benchmark ten-year coming in at 3.86

the 2-year, below 4% that's really notable. within it, the bond yield respond to the j.o.l.t.s. report we're also watching internal oil hovering near its highest level since january. this morning we're seeing oil fractionally in the red. brent crude at about 85 bucks a barrel speaking of oil, we'll speak with one crude producer and the decision to slash its output we'll talk about how it's impacting his business and energy as a whole. and we're watching the crypto complex this morning we're seeing crypto above 28,000, up almost half a percent. either up 2 and almost half a percent, moving higher this morning when it comes to crypto. looking around the world this morning as well, markets in hong kong and china closed for a

national holiday and mixle picture elsewhere with japan falling more than 1up. europe's trading day getting under way. we're seeing the ftse, the best performer up fractionally. the cac down a third of a percent. our silvana henao has our corporate stories. good morning the fed has a look ahead speaking in new york last night, messer says inflation remains too high and stubborn and it could take until 2025 to get it down to the fed's target she sees monetary policy moving further with the fed fund rate topping 5% >> precisely how much higher the fed fund rate will need to go here will depend on how much

inflation and inflation expectations are moving down that will depend on how much demand is flowing, supply challenges are being resolved, and price pressures are easing. >> and mester adds the economy is doing well even with higher rates and notes consumer spending is holding up with strong household balance sheets and income growth. hedge fund manager plans to launch a proxy battle with a drug marek fara company's board and is expressing concerns over disappointing research and development spending and insufficient shareholder returns.

johnson & johnson is recovering after its lawsuit. the management is also refiling for bankruptcy protection after its first attempt failing. and ltl is that company that johnson & johnson spun off in 2018 in an effort to shield itself from losses and litigation related to those talc products >> we'll have much more on that talc settlement coming up later in the show. time now to turn our attention back overseas and ubs this hour holding its first meeting with very frustrated shareholders just yesterday. our joumanna bercetche joins us from switzerland with much more on this story. you mama. >> good morning, frank remember yesterday we were talking about the huge throng of sharmds who showdown up who were angry, frustrated. they saw it as an opportunity to vent their frus vags and ask

questions of credit suisse today we're in basel the stock has performed quite well many shareholders are showing up thinking perhaps this is the start of something new, the birth of a new unit. lots of questions about what that unit is going to look like, which is why everyone should listen to what the chairman colm kelleher had to say where he spelled out his view how he sees the integration going. he said very, very clearly that the model for ubs is going to be very similar and the wealth management unit ts, private banking units are going to be at the sector of it it will play less of a role and they'll be looking to cut down that part of the business. very consistent with the

messaging there. they're laser focused on the execution. they're laser focused on delivering, on integrating, and making it as smooth as possible and that's going to be the priority and that was the reason why they decided a week ago to bring back the former ubs ceo sergio ermotti he had overseen the structure. in the chairman's eyes he's the right man to deliver as well. >> a lot of people are calling this a shotgun merger. did you get a chance to speak to any shareholders and get their mood and sentiment about all this >> yeah, absolutely. i think it was similar to what i was saying before. they're very anticipating or excited to see what this deal is going to mean for them in the short term there is some concern about some of the legal obstacles that we highlighted yesterday, a few class action

lawsuits being put forward also swiss prosecutors are investigating the deal as well and the circumstance in which this happens once that's put to rest, then the focus is going to be on the actual business integration and eventually sharltds are optimistic they'll be quite generous for the combined entity in the future it ooh e going to take time. >> ubs shares down our joumanna bercetche live in switzerland. thank you very much. turning now to a developing story and former president donald trump back in florida this morning after pleading not guilty to 34 fellfully counts yesterday. trump speaking to his supporters last night just after landing outside of mar-a-lago. brie jackson joins us lierchlt it was a spirited rally. >> reporter: it wuchlts the actual court hearing lasted less than an hour, and photos taken inside the courtroom, they appear too be showing former

president trump appearing to be stoic. but later on when he made those public remarks, that's when he lashed out in his unprecedented arraignment, former president trump addressed supporter at his mar-a-lago estate, combative and downplaying the criminal charges against him. everybody say this is not really an indictment. >> reporter: he rallied against the prosecutors. the manhattan da's office hit him with 34 felony charges surrounding hush money payments made around the 2016 election. >> to make these payments they set up shell companies and made more false statements. >> reporter: prosecutors laid out a broader picture during tuesday's arraignment in what they called an unlawful plan that could have affect president's 2016 presidential campaign trump pleaded not guilty and his

legal team claims their climate is the victim. >> if this man's name was not donald j. trump, there's no scenario we wouldn't be here. >> i'm standing more for democracy than trump. >> reporter: trump could face more legal troubles from investigations into the storage of classified documents at his home efforts to overturn 2020 presidential election results and his role in the january 6th attack former president trump's criminal case is expected to go to try next year before the 2024 election. >> we know the dates of his next court cases, but do we have a sense of what the next steps are? are his defense attorneys going to meet with prosecutors is there a chance of a plea

deal or will he take it all the way to trial. >> reporter: they plan to file a motion to dismiss this case. it will have 45 days to so so. meanwhile for the prosecution in the next two weeks, they have to hand over all the evidence they've gathered in this case, so trump's legal team, they say they're not looking for a plea deal they're looking to fight this case. >> brie jackson, live in washington, dc, thank you very much when we come back on "worldwide exchange," house speaker kevin mccarthy set to meet later today. we get the reaction from beijing ahead. and french president emmanuel macron set to meet with xi jinping during his three-day visit to china as he continues to maintain his wall to ukraine > diator. >>and producers are being put in a bit of a tight spot we speak with one driller.

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welcome back to "worldwide exchange." the dow and s&p 500 snapped a four-day winning streak. the new signs are that the feds' effort to cool the labor market may have cooled. there's still more work to do to lower inflation.

gary kaminsky telling cnbc he thinks because they got it wrong on transitory inflation and the fed may be forced to fire more than many are expecting. >> we're raising rates feds are going to continue to raise rates. you need to make certain you know what you own. the market has always operated in cycles. i do not believe they've peaked. i think the fed is determined to overshoot the cycle and i would not be surprised to see a 6% terminal rate. let's talk with the ceo and vice chairman. great to see you as always. >> great to see you. >> looking right now, we're seeing futures of nasdaq down. what do you think is causing this shift in sentiment and what are you telling your clients

about portfolios right now >> great questions you know,above everything it's uncertainties in the market continue to rise you know, just with the recent announcement from opec, there's inflationary pressure. we have to somewhat agree with gary's position on the fed may have some additional work to do. when you look at core cpe, still a ways to go with that, the market, we anticipate more volatility and definitely more uncertainty. the markets don't like uncertainty. it likes transparency and being able to forecast into the future uncertainty leads to additional volatility in the market we're telling our clients at this point in time to be very patient and to be very discerning with their

investments, take risk off the table and only go with high-quality investments at this point. >> i want to bounce something off of you now, according to their data, the average partnortfolio is a k lower than march of 2009 of course, that's following the great financial crisis, but also right before the market you can see the data right here fehr people listening, 52.7%. march 2009, 53.1%. what do you think about this is this close to the way you're balancing as well? >> it's a little aggressive for our taste at this point. we're much more conservative i have to keep things in a broad and general scope, but we're -- our investment committee is

somewhere between 35% and 50% especially after the results we've experienced in the market with the s&p up 7% and nasdaq up almost 17% in one quarter. those are her row wick and returns we haven't seen since the middle of the pandemic and coming out of the pandemic interesting thing you brought up, one of the key data points, one of the things that we're concerned about is the lack of credit you're seeing small businesses about 25% saying they've asked us to the lending that we need in order to continue to operate. that may not resonate with very many people, but to give you an understanding, that's 10% lower than it was in the middle of the financial crisis in 2008 so it's very, very low

and so the credit issue is what we're watching and the return about the potential contagion. >> it's something to watch i want to get to where you're bullish right now. 're bullish on arrow spigot and defense. i know you're trying to take risk off the table but you're very bullish on artificial intelligence. give us a sense on how you invest in that and how you're running in late, or do you think there's more upside. >> i think on a longer term perspective, there still remains a play in art official intelligence, but on a shorter term basis, i look for vol ticket, which we anticipate having some vol ticket in the second quarter and possibly the second half of the year to go purchase longer term positions in ai. >> kalai, thanks for being here.

coming up, alleging some accounting irregularities. hear the full story and your morning mystery charge revealed right after this stay with us when you come to that realization, i think it's very important that you spend your time wisely. and what better way of spending time than traveling, continuing to educate ourselves and broaden our minds? (woman vo) viking. exploring the world in comfort. at adp, we understand business today looks nothing like it did yesterday. while it's more unpredictable, its possibilities are endless. from paying your people from anywhere to supporting your talent everywhere, we use data driven insights to design hr solutions and services to help businesses of all size work smarter today. so, they can have more success tomorrow.

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dad, we got this. we got this. we got this. we got this. life is for living. we got this. let's partner for all of it. edward jones welcome back to "worldwide exchange." frances rivera has the latest. >> good morning. "the wall street journal" gave an update onneren gurs co-vich

who was arrested on spying allegations. lawyers for gershkovich is in good health and is grateful for the support he's received following his arrest, russian officials say he was arrested on suspicions of espionage. the "wall street journal" continues to deny these charges against him. the city of chicago went to the polls on tuesday and elected vocal progressive brandon johnson as their new mayor johnson, a former teacher and cook county commissioner will defeat democratic challenger paul vallas. he ran ahead of mayor lori lightfoot that fell to johnson who ran on a message of addressing racial and economic disparities in tuesday's runoff. for the first time in 15 years liberal judges will gain control of the highest court

she defeated her conservative opponent the stakes were high the new liberal majority will likely determine the future of abortion access in the state and could be needed to weigh in on election rules for 20224 frank, we send it back to you with those headlines of the day. >> francis river ray, thank you very much. straight ahead, opec's output cuts approve the highest in months, but is it enough to shift things the highest we'll speak with one of the producers. be sure to sign up for today's nbc pro talk event at 1:15 p.m. even time. "worldwide exchange" will be right back pping) ooh. - wait, wh- wh- what was that? - huh? what, that? no, don't worry about that. here we go. - asking the right question can greatly impact your future. - are, are you qualified to do this? - what? - especially when

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it is right around 5:30 in the new york city area we're just getting started looking to get back on track stocks seeking gains after the dow and s&p snapped a four-game win streak fresh fed comments on a potential rate pivot. and leaving its legal troubles behind. shares of johnson & johnson are popping this morning after its proposes ramping up its multi-billion-dollar settlement over cancer claims around its talcum powder.

and france's president in a sitdown with beijing, china. it's wednesday, april 5th. you're watching "worldwide exchange" right here on cnbc all right. welcome back to "worldwide exchange." i'm frank holland. let's pick up. looking right now, red across the board, down fractionally not much chainchd from when we started the show at 5:00 a.m. this morning this after all three may juror indices fell by just a half a percent yesterday. there were fresh comments from loretta mester saying the feds have more hikes ahead. speaking in new york last night, mester said it could take until 2025 to get inflation down to the fed's 2% target due to continued inflation pressures. >> precisely how much high ter hedge fund rate will need go

from here and for how long policy will need to remain restrictive will depend on how much inflation and inflation expectations are rolling down. >> on the back of those mester comments, we get a check of the bond market this morning looking at the benchmarket 10-year, falling the second quarter only a few days in. the real story is the yield on the 2-year note now below 4% the j.o.l.t.s. report showed jobs numbers falling for the first time in a long time. right now we're seeing wti still above 80 buck as barrel, down fractionally brent crude at almost $85 a barrel, down fractionally. coming up later on in the show, we're going to speak exclusively. opec's decision and how it's impacting his business and the outlook for u.s. energy. time now to get a check on the

overnight action and the early tlad in europe our arabile gumede is standing by in our london newsroom with both good morning. >> good morning. so very quickly asia did indeed look to find positivity. ice a mixed picture. there's a focus on banks plus what you touched on, the supply coming out of opec these filtering into the market. a focus on inflation and where economies are going. europe is going to be a key factor as well for the remainder of the week as well. quickly let's take a look at what else is happen as i touched on asia. so very important. the reserve bank of new zealand surprising markets hiking rates by 50 basis points. the 11th consecutive higher rate since banks starting raising

rates in 2021. the interest rates sitting at their highest revel in 14 years at 4.25% in other news, foxconn has reported revenue, but the major apple supplier says sales are expected to fall this quarter on both an annual and quarterly basis given the electronic maker's unseasonal strong results last year. we are continuing to set a key focus on the major moves, but the ceo as well as the chairman say it's going to be a herculean task to put the merger together. >> arabile gumede, thank you very much. time for a check on this morning's top stories including the world's largest retailer staying firm with its recent outlook.

silvana henao again. wad matter is holding onto its sales forecast the company reiterating its outlook for both the period and the rest of the year in february walmart says it expected adjusted earnings of $1.25 to $1 a year president biden is calling on industries to see if they're safe it remains to be seen if the new technology is dangerous. he spoke with technology advisers which include microsoft and google he added while ai can help in addressing disease and climate change, it's important to address possible risks around national security and the economy. shares of 3 cai set to extend its losses following a letter to the company's auditors

from the short selling firm capital. p on "closing bell" yesterday he elaborated on his firm. >> at the end of the day, what they're trying to do is demonstrate high gross margins and subscription revenue despite the fact that it's not that kind of business. it's a consulting business it's using it in order to inflate its income matrix to keep it proper at $5 billion, which is ridiculously overvalued. >> and, frank, c3.ai says it denies any wrongdoing. >> certainly a story to watch.

the stock down 3% in the market. thank you very much. now to a developing story and house speaker kevin mccarthy set to speak with the taiwan president. the historic meeting rattling relations between taiwan eunice yoon joins us with much more of reactions by leaders there. eunice. >> reporter: thanks, frank while meeting mccarthy will be the most significant part of the t ten-day tour outside of taiwan, both sides have confirmed president tsai will be hosted by the speaker at the ronald reng presidential library near los angeles. she'll meet with a bipartisan group of u.s. lawmakers similar to a stopover in new york city, and her meeting with mccarthy will make her the first taiwan leader to meet with a house

speaker on u.s. soil since 1979 when the u.s. swiched diplomatic tice china has reacted badly as one would expect saying there would be a counter measuring for what he could call thai's sneaky transit in the u.s when nancy pelosi advised beijing, visiting them last summer, bay shings launched a week-long fire drill as well as a blockade of the island, which eventually resulted in a bialik it is mill iaisle being launched we haven't seen something so aggressive since despite the rhetoric, the indications are that all sides, including beijing, will exercise more restrachblt frank

>> eunice, french president emmanuel macron landing in china for a visit and face-to-face with xi jinping. do you know what his agenda is and what he hopes to accomplish with this meeting? >> reporter: from the officials at the french office, he's hoping to have discussions about ukraine, potentially try to enlist president xi's help in alleviating the crisis in ukraine. however, a trade and business is also on the agenda what's also interested about the french president as he visits this week is the way it factors into beijing's strength when it comes to taiwan. at the same time, it looks as though beijing is considering the french president is here they want to have cohesive

relationships especially amid the tensions between u.s. and china. another big push by the chinese is to get more foreign investments including u.s. into the country. those are part of the calculations right now for beijing as it cast is its weary eye toward thai's visit in the united states. turning now to your morning'ses by money movie shares of johnson & johnson are higher in the premarket the company proposing to pay nearly $9 billion to settle claims as talc products causes cancer. more than quadruple the amount it inissuely offered >> j&j was facing thousands of these lawsuits and they tried to create these companies, an

appeals court tossed that out. they had been funding that with $2 billion in trying to settle the claims now that they've lost that attempt, they've come back and increased the settlement proposal to $8.9 million they say they got the support from 60,000 claimants here and they need 75% of claimants to sort of approve this my understanding is they have about $100,000 total, but they still need to get florida. they say that resolving these cases in the tort system would take decades and impose significant costs on the ltl, which is that company, with most claimants never receiving any compensation

they're trying this with a lot more money thinking this is finally going to put this to bed for j&j. >> meg, it looks like the market is supporting this deal, but is it a done deal or is it possible this new settlement doesn't make it past the judge? >> it definitely has hurdles to cross. wells fargo says their legal expert gives it 50 50-50 chance of su succeeding. certainly it is a much higher offer. many plaintiffs are on board with it but some plaintiffs aren't, so we'll have to see where the vote goats and how the court values it as well. >> our meg tirrell meg, thank you very much. coming up on "worldwide exchange," the ripple effects of opec's major cuts this week and what it may mean for the future of the oil and gas industry. we speak with one ceo of the oil and gas company coming right up. stay right with us here on "worldwide exchange. n.

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welcome back to "worldwide exchange." closer to home, in this week's more than 1% pop and $80 a bare enough to kick things into high gear joining me now is our next guest running five rigs, producing 100,000 barrel as day. good to have you here. >> appreciate being here this

morning. >> we talked about that big spike when it comes to oil prices i want to get your reaction as a u.s. producer. when you heard about the surprise opec cuts what did you think what did it mean for your business >> we've had a volatile time seeing oil prices in the 60s and now jumping into the 80s, so i think it's refreshing to see it at $850 considering where oil costs are. there's reliability between costs and going out to produce our programs i'm pleased to see oil in the 80s. >> when you say service costs, you're talking about the cost to pro produce, transport, store, and all those things >> to drill. to increase productions today.

>> obviously a capex business. is there a range where it's profitable for you and worth more to put capex money to drill more >> absolutely. we're at $80 oil when you get into the lower 60s and you have commodity prices there and service costs that are higher than what that can support, the economic costs are lower and we're going to cut back on activity you're seeing some of that related to the area. >> we talked a bit about the macro impachlkt we also talked about something closer to home when the united states decided not to fill the strategic petroleum reserve, what does that mean for your business and long term? >> when oil prices are high,

it's not the right time. maybe we have to sit back and wait until oil prices subside some and then you may not have that demand or the supply and ability to fill up the spr because everyone's trying to stock up it's a balance the government has to take into account when oil prices are this volatile and i'm afraid it's going to continue to be a challenge for the government to figure out the right time to fill up the spr. >> you used the word "volatile." this is, again, a very capex-inens ifb business what does it take to feel confident? i think a lot of people who watch say, hey, oil prices are up, why don't you ramp up? >> it's not that easy. with very a is service industry that needs to keep up with the activity level and when oil prices are higher and we're full

on the service signed we can't find new labors to help in our fields execute on those plans, it makes it difficult. so for us, where we are right now is probably at max capacity in permutation with activity levls. if we were trying to increase that activity level, we would need the ability to get permits quicker. and where we have federal ache rat, we need to get pipelines into the ground quicker we can get the wells online sooner, and we probably need to see that the oil prices are not going to be cut any time soon we're confident it will stay in that range but it's a very manpower kind of capex business as you said to ramp up production, like you

said, we're pretty much as full capacity with the level we've got. >> my question, prices we're seeing wti at about 8$80. >> yeah, demand will dictate the saudis feel at this level it's a floor that they're requiring for their own needs. we feel good at $890 i'm going to try to run my business to create profitable growth in almost any environmental but surely $70, $80, $90 oil in that band, we are very confident about our ability to profitability grow

our business. >> some of your peers may not be at maximum capacity. as an oil producer, do you look at it as a factor? is that something you think about? your peers think about >> not really. i think one of the demands is investors are requiring us to return capital or to shareholders in some form, and as that is imposed on us, we're going to have to be slower or provide free cash flow back to its shareholders, so that's some of our thing asking as well in m of increase cad passty, that we're no going to increase it just because it went to $80. >> i appreciate your insight coming to us straight from the oil patch. we appreciate it. coming up on "worldwide exchange," victoria greene on why she's remaining cautiously

optimistic on these markets and the streaming market that's high on her ray dafrmt "worldwide exchange" will be right back stay with us he knows me and my goals. it's not the first uncertain environment he's helped me navigate. probably won't be the last. but with his advice, i know i'm on track. the plan we created can withstand uncertainty. no wonder clients rate us 4.9 out of 5 in overall satisfaction. because advice worth listening to is advice worth talking about. at morgan stanley, old school hard work meets bold, new thinking, ♪ to help you see untapped possibilities and relentlessly work with you to make them real. ♪

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time now for "worldwide exchange." we call it wrap-up as we close in on the top of the hour. there's a meeting with sergioer ophthalmologisty at the helm starting today it follows credit suisse's final meeting yesterday. >> the country's cloud market is currently dominated by amazon, microsoft, and google. back here in the u.s., cleveland fed president loretta mester says the fed has more rate increases ahead and she sees monetary policy moving more

this year with the red rate moving above 5%. tim cook and bob iger among the top techs meeting with the chinese communist party today to discuss the industry large market and resources in china. bernard arnault of france dethroning elon musk as the richest man in the world. some customers saying they're not in favor of the oil-infused coffee saying it causes them stomach distress. a slew of economic data on tap. that includes applications and numbers on adp and johns and psi and ism. we also get earnings from

conagra as well as costco's data numbers. the latest piece of employment data a new note from jpmorgan calling for 200,000 in payroll gains after this week's report showed a 6% decline in job openings, its lowest level since 2021. there are signs of a labor market cooldown. for my next guest to remain, what she calls cautiously bullish, victoria greene is chief investment officer and cnbc contributor explain it to me right now cautiously and bullish what are you cautious about and what are you bullish about >> we are bullish that the fed is going to look at it you see j.o.l.t.s. and manufacturing coming in. generally weak econmy data that can support this cause we are cautiously bullish.

you might see this 10 year is wavering if it's lower, you might see growth higher. we're ready to pull the ripcord if its goes in the other direction. we stall out in the others you've got to be ared to get a little defense issue right now and you have to be tactical, frank. >> >> how do you become tactical what are you expecting from earnings that led the way in the first quarter? >> sure. mega cap i think was a safety for a lot of investors they have strong balance sheets and they're known. if the fed does pause, they're fighting less of an economic headwind we're looking for weakness in financials i think they're cheap for a reason financials are facing a lot of headwinds right now. i don't think any bank is going

under at all between regulatory headwinds that are coming, everybody knows when there's a crisis, there's going to be more regulation, as well as they're doing less deals and you're seeing less loan making i think you're looking at hard headwinds and pretty light guidance from financials you need to be selective and focus on quality and sustained growth. >> bank of america out with new data this is according to bang of america data the average portfolio currently is 52% equities. that's a tick lower than march 2009 following the great financial crisis and before the financial bull run in the markets. what do you make of this >> i think it's very bullish for

capital. it's lower than the historical assets i think it's over $5 trillion. we're peek about the same in 2009 as well as 2020 with the attractive yielding that it has. it's typically a contrarian bull buy seg nall. >> you're bullish on netflix you're also bullish on dix sporting goods and constellation brands give us a thesis first on net felix, and hopefully we have a time for the other too. >> sure. ned felix is walking a tight l line they estimated there were 100 subscribes in preliminary data from third parties, they show where they rolled out the crackdown on password sharing, you're getting people paying more or they're picking up the ad supported tear

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who doesn't like "true crime." good morning stock futures pointing to a slightly lower open. yesterday cleveland fed president said rates will need to go higher johnson & johnson proposing a $9 billion settlement in

losses that set the stock up slightly higher. the doj is charge a rising star in the tech world to convince jpmorgan to buy her startup. wednesday, april 5th, 2023, and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" right here on cnbc we're live from the nasdaq market site in time square i'm becky quick along with joe kernen and andrew ross sorkin. let's take a look at what's been happening with the futures at this hour. we're seeing redary rows markets one dow across the board with the dow down by 200 points. this morning the futures for the dow