♪♪ -- captions by vitac -- it is 5:00 a.m. here at cnbc global headquarters. here is the top "five@5. stocks looking to get back after snapping multi-week win streaks. and the focus on inflation and earnings investors looking to react to friday's jobs report with the job market showing signs of cooling. what it means for the fed's next rate decision. a developing story tension with the u.s. and china escalating with both sides pulling out military drills this

weekend. we are live in beijing with the latest. a potential mega deal as exxonmobil eyes a drill deal and tesla looking to expand its footprint in china it is monday, april 10th, 2023. you are watching "worldwide exchange" here on cnbc good morning welcome to "worldwide exchange." i'm frank holland. we turn to the developing news in china and tension with beijing and washington the missile destroyer carried out a mission in the sea that after military drills with simulated strikes against taiwan this weekend eunice yoon is joining us from beijing with the latest on this story. eunice, good morning >> reporter: hi, frank

it is not only simulated precision strikes, but blockade around the island. the state media here has carried video of nuclear capable bombers armed with live missiles and war ships. in addition, the news outlets reporting that the aircraft carrier is engaging in the war games for the first time the military says that these exercises are quote stern warning for taiwan after the island's president visited -- >> all right we just lost her signal. we will try to get her back later in the show. time to get a check on the futures off the long holiday weekend and monthly jobs report. futures are basically flat the nasdaq down slightly

down about .25%. stocks coming off the mixed week the dow with the third positive week in a row. it's a big week for the markets on the economic and earnings front. the latest look at inflation with cpi data on wednesday and ppi on thursday. on friday, earnings season kicks off with several banks reporting. including jpmorgan chase and wells fargo and citi something to watch there we are checking the bond market yields are down slightly this morning. one month away from the collapse of silicon valley bank we see the 10-year treasury falling 50 basis points and we see the inverted yield curve in oil, oil prices are holding steady right now, wti is $81 a barrel brent crude is up $85. we will have details on the major deal with exxonmobil and pioneer coming up in a moment.

in crypto, that is holding steady bitcoin at $28,000 $28,300. ethereum is flat. markets in europe and the asia pacific region closed for the eviaster holiday. we are seeing the moves in the kospi up .50%. let's get a check on the top corporate stories with bertha coombs >> good morning, frank potential mega deal taking shape. wall street journal reporting exxonmobil has held talks with pioneer natural resources about possibly buying the u.s. fracking giant the journal says discussion was both companies have been informal exxon has a cash pile of $30 billion after posting a repcord profit for 2022.

the biden administration appears set to accelerate part of its plan to transition the u.s. to electric vehicles. according to the reports, the environmental protection agency will propose new rules this week one draft plan would target vehicles including cars and suvs and pickup trucks with the rules requiring evs to account for up to 67% of new vehicle sales by 2032. and semiconductors seeking guidance on new laws aimed at boosting u.s. semi production. according to reuters, tsmc is looking for subsidies stemming from the chips act this comes as tsmc reveals revenue fell 50% from a year ago. the first drop in four years frank.

>> thank you, bertha investors looking to trade on the back of the jobs report on friday. 236,000 jobs added to the economy. and the unemployment ticking down to 3.5% and inflation with the cpi and ppi reports out this week which will offer fresh clues if or when the fed will pause or end the rate hiking campaign let's bring in robert teeter as silvercrest management and sarah house. great to have you here sarah, jobs report in line with expectations up in february and slight increase in wages. what does that say to you about the economy and what the fed's path forward could likely be >> overall, we are seeing decent momentum in the economy.

we saw that in eterms of overall payroll growth we are seeing signs of keeping some hope alive for the soft landing and we saw average hourly earnings on trend decelerating a big part is the labor market coming back into balance not from just weaker demand, but greater supply we saw the labor force imp participation rate move up >> robert, what did you make from the jobs report with the revision to the upside in february >> frank, thank you. there were two important things for investors. the first for bond investors and job gains slowing. that brings usr to the pause for the fed. we have seen volatility in the bond market which is because we are coming to the end of the

rate hike cycle. for equity investors, the fact that job gains continue to be steady is helpful. it extends the runway on expansion. we will deal with drag from credit lending due to the silicon valley bank and other issues, we think we will just avoid recession and one of the reasons is these continued steady gains in the job market something for everyone in the last jobs report mostly slow and steady. >> robert, we have cpi on wednesday and ppi on thursday. both with fresh reads on inflation and big banks earnings on friday. how do you position ahead of the three big reports? i know you believe we are leaning toward the pause how does this influence the fed going forward? >> it is challenging with the important data in the short term each data point creates volatility my expectation is choppy markets with volatility. for investors who have a longer

time horizon, out to the end of the summer, i think we get relief on the rate front and valuation and we will see the economy and earnings hanging in there. my advice is cautious in the short term >> robert, thank you sarah, robert said there is something in the jobs report for everybody. what about people forecasting recession? did you see data points that lead you to believe we are moving close tr to recession >> we are seeing signs the labor market is weakening. we have seen a downshift in jobs growth now we are adding 236. that is the lowest increase in more than two years. i think we are certainly seeing that loss of momentum. right now, it is a controlled

descent. i think we are seeing some other broader signs of weakness. temporary employment trending down we saw the average workweek tick down suggesting employers are using workers less intensely we are still seeing the loss of momentum it doesn't mean we are out of the woods in terms of the potential hard landing. >> you are saying it is a controlled descent >> for now, but there is still a lot of unknown in that context if you look at the economic activity indicators, they point to the economy which is losing momentum, not just within the jobs market. i think overall the jobs numbers remain respectable, but it is a matter of can we keep that pace going forward. everything we're seeing from job openings and postings coming

down the lowest of the hiring since 2017 barring covid now it is a trend in claims which that labor market is losing significant momentum. it remains to be seen if we can glide down to a more trend-like pace of job growth or if job growth is going to slow more and drive us into recession. >> robert, the last word here. so many potential market movers coming up. cpi and ppi and big bank earnings do you take money out of the market or do you want to be in equities >> we had a possibleture above . that is on earnings and economy continuing at the flat line. over the course of the coming quarters, it will provide a boost to valuation we do think this rate hike cycle is critical here once we he get to the fed rate hike pause, we think valuations

will improve we think the economy and earnings hang in with slight gains. >> robert teeter and sarah house. thank you. when we come back on "worldwide exchange," gold seeing a shine hovering near all-time highs we dig in to what investors digging in. and a fresh report on key factors that fuelled the downfall of sam bankman-fried's downfall the latest on the fallout of the signature bank collapse. a very busy hour when "worldwide exchange" continues. stay with us (s and when witched, o choose the phone i wanted. for free. not bragging. (cecily) you're bragging. (neighbor) oh, he's bragging. (seth) who, me? never. oh, excuse me. hello, your royal highness, sir... (cecily) okay, that's a brag.

(seth) hey, mom. i gotta call you back. (vo) switch and choose the phone you want, like the incredible iphone 14, on us. (cecily) on the network worth bragging about. (vo) verizon ♪♪ at morgan stanley, old school hard work meets bold new thinking. ♪♪ partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential. old school grit. new world ideas. morgan stanley.

millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, get the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them... see how easy it is to save hundreds a year on your wireless bill over t-mobile, at&t and verizon. to learn more, visit your local xfinity store today.

welcome back to "worldwide exchange." gold prices are slipping on the back of the friday jobs report still gold is holding above the $2,000 an ounce mark and the metal has been climbing up 10% this year and it is just below record levels. for now, let's get insight on this with nicky shiels nicky, thank you >> great to be here. >> grold is above $2,000. what is the factor leading to the conclusion >> it is not a lot of mileage, but $130 up in the last few

months there are a lot of things coming toward gold. you have the inflation underpinning we have recession fears. within the past two months, we have seen a game changing with the fact you have a banking crisis that the fed had to backstop and expanding the balance sheet. that is playing into gold prices we see pricing hitting all-time highs in the short-term. ultimately, gold is scoring on how well the fed lands >> that's a big jump from where we are now at $2,014 we have potential recession on one side how does that impact the market? >> the idea the fed is handcuffed and financial

instability. we don't think it will solve all three. that is why gold comes into play with the uncertainty around the three factors. >> are there potential shocks for the gold market? we will talk about silicon valley bank and signature bank in a moment. >> we have to take into account that the fed could overtighten if they do, we see a bit of a back drop across assets, including gold >> the fed is a big factor with the gold market and presencious metals in general. i want to talk about silicon valley bank and an signature bank could that impact the market >> you have in q4 last year, the

fed broke a cryptocurrency market that bled into the financial sector we have seen a reallocation of wealth with the crisis of confidence that has gone into crypto and gold and many markets. with bank earnings coming up, investors are just very uncertain and we look to see what it brings if equities start to trail on the back foot, we could see a push further to gold >> i want to circle back to the $2,500 price what is the set up to reach $2,500 an ounce in the gold market >> you have to look at 2008 where gold went from $800 to $1,900 in the space of 18 months if the fed is having to sort of forego inflation and ramp up the

balance sheet, gold could take off. >> nicky shiels, thank you >> thank you coming up here on "worldwide exchange," our deep dive into china as tensions with washington and beijing escalate. the latest military move and what investors need to keep their eye on that and more when "worldwide exchange" returns. stay with us i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. life is for living. let's partner for all of it. i'm so glad we did this. edward jones what if beer could get to the right place, at the right time, all the time? not like that. like this.

getting this beer... all over the world... right when they need it. yes, with ibm consulting, ai-powered software can help automate your supply chain— so beer can be ordered, produced and delivered more efficiently. so happy hours keep going. salud! and the beer keeps flowing. that's the automation solution ibm and a global beer company created. what will you create? ibm. let's create.

a live look at 30 rock and new york city. chilly on the east coast 21 minutes past the hour 5:21 in new york 10:21 in london. time for the check on the headlines. phillip mena has more from new york >> i am here in new york the doj is looking for documents posted online. many documents labeled top secret the leak includes maps and equipment lists with details of the military strength and casualty counts. different versions of the documents surfaced since appearing on liline in march. some citing the number of casualties in the war which is lower than the pentagon estimates. that suggests the documents were

altered. democratic congress member justin jones and member justin pearson are fighting for their jobs back. they rallied for tougher gun control measures today, the metro nashville council will weigh in. so far, 23 members vowed to reappoint representative jones finally, jon rahm closed out augusta with sunshine. he rallied to finishes at 12 under. the first time rahm put on the green snajacket in his career frank, back to you. >> congratulations to jon. disappointing to see tiger drop out. >> of course we associate tiger woods with the masters. one more special comeback which he did a couple years ago.

tough to not see him with that red on sunday. >> i hope he has one more major in him phillip, thank you still on deck here on "worldwide exchange," a key apple supplier focusing on the electric supplier. if you miss "worldwide exchange," check us out on apple or other podcast apps. "wex will ownebe right back. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools make complex trading less complicated.

custom scans help you find new trading opportunities. while an earnings tool helps you plan your trades and stay on top of the market. as a business owner, your bottom line while an earnings tool h is always top of mind.es so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network, with no line activation fees or term contracts... saving you up to 75% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities™.

it is 5:30 a.m. in new york city 10:30 a.m. in london we are just getting started here on "worldwide exchange." developing in asia u.s. and china carry out military exercises in the region. investors watching those developments and turning to the economic data and earnings season kicking in high gear. we tee up a busy trading day ahead. the monthly employment report showing a cooling jobs market what it means for upcoming fed decision all here on "worldwide exchange" here on cnbc welcome back i'm frank holland. let's pick up with the stock futures. not a lot of action in the stock futures.

muted right now. flat across the board. nasdaq down slightly dow jones industrial average looks to open higher at this moment we have a big week for markets on the economic and earnings front. we get the look at inflation with cpi on wednesday and ppi on thursday on friday, earnings season kicking into high gear with several big banks reporting. jpmorgan chase and wells fargo and citi the bond market is something to watch the 10-year treasury at 3.36 this is 50 basis points lower than a month ago that is when silicon valley bank collapsed on march 10th a lot of people see that as a recession indicator. the energy market here with oil flat at $81. brent crude at $85 up .25%. now to the developing news

in china and tension with beijing and washington the u.s. navy says the missile destroyer carried out a mission in the south china sea eunice yoon is joining us now from beijing with the latest on the story. eunice >> reporter: thank you, frank. in addition to the precision drills or strikes and simulations there, today, the chinese military conducted a mock simulation of a blockade around the island as part of the three days of scheduled drills state media described a joint effort and nuclear capable bombers armed with live missiles and war ships. the outlets have been saying the aircraft carrier is engage in the war games for the first

time the japanese detected this in the waters near okinawa. this is a stern warning for taiwan after the island's president tsai stopped in new york and l.a. as part of the ten-day trip outside taiwan to central america mainly tsai has returned to taiwan and over the weekend, she vowed to never give in and stop the exchanges with the u.s she hosted another delegation led by chair michael mccaul. taiwan said on monday it detected 59 chinese planes near the island as well as ships. despite the tension of the drills, these are seen as less aggressive action compared to the former house speaker nancy

pelosi visited last summer frank. >> thank you, eunice yoon. let's talk more about the global hot spot with shehzad qazi >> thank you for having me on. >> eunice laid out tension in the south china sea. u.s. and china flexing their muscles in the region. what is the chance this escalates into something more serious? >> a lot of work was done on the back end before president tsai came to the united states. you had american delegations out in beijing trying to calm tensions down. speaker mccarthy dialed back some points. including a visit to taiwan which will no longer happen. the trend is toward deescalation rather than this getting out of hand. >> what does deescalation look like there has been ongoing tension with u.s. and china back since

the trump administration and trade war. now a bunch of political leaders meeting with the house speaker what does status quo moean? >> i think we establish a larger context here there is a u.s. and china decoupling with the sectors of the economy. the trade tensions will continue there will be a serious look moving forward in the years ahead on technology more specifically that is the context and that is the status quo >> the new status quo is tension and lack of cooperation? are you talking about re-shoring in the united states and manufacturing moving away from china and restrictions on china? or is there something deeper >> that is part of it. critical supplies to the united states and pharmaceuticals and critical minerals. decoupling there financial decoupling concern of american money going to companies to help the chinese

military grow stronger and bigger to take on the united states potentially same for the technology front. i think there has been a change in what used to be the relationship which was more and more economic integration. now the focus is more and more decoupling and sectors. >> your platform in the china beige book, you provide financial institution analysis you have a big audience of both here what is the number one story you think investors should pay attention to with the u.s. and china relationship >> the first thing is what is happening to the chinese economy itself that is incredibly important you know, we have seen the economy which started to recover. the economy is not recovering at the pace where a lot of folks in the market anticipate it would the chinese economy comeback is not as strong. we think the second quarter will change the economic dynamic and underpinning the two economies is important

>> what is the next inflection point with the chinese economy the beijing marathon that is what people looked for with the reopening the lunar new year what can we engage with the reopening of china and the economy? >> folks are looking for the chinese consumer to come back as long as the covid era was over that did not happen. the second quarter is where we are going to see the inflection point. if chinese are spending on travel and vacations and the profit market continues to improve, that would be the tell of how good the recovery we get from china >> we have to bring you back at the end of june to get your take shehzad, thank you time to get a check on the corporate stories with bertha coombs good morning, bertha

>> thank you good morning, frank. here is what we have this hour u.s. arm of cryptocurrency exchange binance is struggling to find a bank for its customers' cash. the failures of those two firms left many rushing. binance is storing customer funds and unsuccessfully brought on customer relationships. debtors at ftx noting in a new report that the company lacked fundamental financial and accounting controls, saying quote, hubrus and greet were at the center of misusing funds and lying to third parties about the

business and joking about its tendency to lose track of millions of dollars in assets. and eli lilly warning europe it may miss out on drugs for heart disease and cancer if it cuts market exclusive protection from ten to eight years. under the plan change to patent rules, chronic diseases or cancer trials would be seen as unnecessary and cheaper alternatives for alzheimer's and obesity drugs would be impacted. pharmaceuticals are under pressure with rising prices on both sides of the atlantic >> certainly a political football bertha coombs, thank you. investors getting the first chance to react to the jobs report which came out on friday. that key report ahead of the

fresh read on inflation this week with cpi and ppi data the economy adding 236,000 jobs in march unemployment ticked down to 3.5% wage growth further slowed wall street is eyeing the impact on the fed rate hike decision. let's talk about that with julia pollak at ziprecruiter >> thank you for having me. >> let's get your take on it jobs report in line with expectation. we saw the upward reservision t the month before >> the issue is the absence of the slowdown if you look at the last four quarters, the economy added 1 million jobs every quarter that is really remarkable given how quickly the fed has raised interest rates. >> certainly something to watch there.

were there any segments that caught your eye? hospitality led again. that was expected. >> we see a slowdown in construction and manufacturing and information. temp hiring was weak retail has been moving sideways. no job gains in retail elsewhere in the economy, there is a hiring frenzy under way in leisure and hospitality in particular also in several other sectors in professional service business was a big number healthcare continuing to chug along. there are jobs added to the economy. the unemployment rate has been under 4% for four years now. when that happens, we see women and minorities and we see younger workers and lower wage workers come out ahead and narrow those jobs between them and men. the core of the labor market

does well and now those who are left behind are doing well. >> you see positive signs in the job market one question i have for you. where are the layoffs? we see the tech sector and layoffs in other area as well. where are we seeing signs of that >> they are not driving up the unemployment rate, but showing up in the data in a couple of ways one way is in the breadth of job gains. the last quarter had the diffusion index. the broad spread of jobs across the economy. we have seen that fall a lot so, fewer industries are adding jobs the other way is the share of people who are entering unemployment who are job leavers is falling and people who were laid off or fired is going up. >> the cme fed watch is a 61% chance of the rate hike in the

next fed meeting we have other inputs with ppi and cpi this week. does this believe you are getting closer to a rate increase or less likely? >> the great thing about the report is the fed could go either way on this report and use it as justification. what we saw is strong job gauin which the job allows it to squeeze more inflation out of the economy. we saw wage growth cool. i don't like looking at the year over year number i prefer to zoom in and look at what is happening. if you zoom in on what happened in the last quarter, wage growth on the three-month basis fell from 3.5% to 3.2%. that is in line with the fed inflation target of 2% that allows for a 2% adjustment for wages to inflation and another 1.5% for productivity

growth this is no longer overheating of the labor market which is driving wage growth and inflation. there is no sign of a wage price spiral in the report >> we will keep our eyes on the fed. from the time i looked this morning, a 64% chance of 25 basis point hike julia, thank you >> thank you coming up on "worldwide exchange," elon musk looking to expand its footprint in china. phil lebeau is here with more on that company's view to boost production we are back with more on that in just a moment. stay with us

asking the right question can greatly impact your future. - are, are you qualified to do this? - what? - especially when it comes to your finances. - are you a certified financial planner™? - i'm a cfp® professional. - cfp® professionals are committed to acting in your best interest. that's why it's gotta be a cfp®.

live look at hong kong right now. hong kong markets closed for the holiday. it is 5:43 in hong kong. they are wrapping up their day over there 5:43 here in the new york city area welcome back foxconn is spending $820 million in facilities in taiwan. the company announcing the i investment will include for electric buses amid growing tension with washington and beijing, tesla is increasing investment in china our phil lebeau joins us with more on the story.

phil, good morning >> reporter: good morning, frank. this is the tesla business that doesn't get a lot of attention not a sexy part of the business or large part. it is growing. here is the announcement from yesterday and the details came from chinese state media shanghai battery plant is building 10,000 mega packs annually with production starting in the second quarter of 2024. as i mentioned, it is not the sex y part of the business what people are focused on is ev sales. they have been cutting prices because of stiff competition because of electric vehicle manufacturers. this plant will not produce batteries for ev production, but it solidifies the supply chain tesla built in china when it comes to electric vehicle manufacturing and battery manufacturing. that is the core of the growth in china and asia.

worldwide terms, i get the question from people on a regular basis. where does tesla compare to other manufacturers in global sales. not in the u.s. where they have 2/3 of the market globally, they were the leader with 17% market share. byd is catching up quickly 12%. you see vw and gm with a sizable operation with lower priced evs in china you look at shares of tesla and keep in mind this is a company which announced last week, basically thursday night, it would cut ev prices here in the u.s. with the base model y coming in at $49,990 they are cutting prices by $2,000 the model 3 prices are dropping by another $1,000 down to $41,990. this is important, frank you have the ev tax credits

going into effect a week from tomorrow we already know some of the tesla models will not qualify for the full $7,500. >> some models won't qualify how much will this boost demand >> it worked in the past they are the leader in the market you have to take that into consideration. there is demand for tesla lower-end vehicles if you can drive that price down, once you get under $50,000, that is a trigger where consumers are saying i have been interested, and now i'm really interested above $50,000 and we see the market not grow as quickly as in the past. >> phil lebeau live with the latest thank you. coming up here on "worldwide exchange," brian levitt lays out the trading week ahead with

inflation and earnings in focus and why he is defensive. and if you haven't already, follow our podcast if you miss "worldwide exc exchange cck,"he us out on your favorite podcast app "wex" will be right back ere it's goin (dock worker) right on time. (vo) robots can predict breakdowns and order their own replacement parts. (foreman) nice work. (vo) and retailers can get ahead of the fashion trend of the day with a new line tomorrow. with a verizon private 5g network, you can get more agility and security. giving you more control of your business. we call this enterprise intelligence. from the network america relies on. go. go lights. go big city lights.

go spotlights. go stadium lights. emerson software helps clean energy become reliable electricity. go “good night." go boldly. emerson. ♪ old school wisdom, with a passion for what's possible. that's what you get from the morgan stanley client experience. you get listening more than talking, and a personalized plan built on insights and innovative technology. you get grit, vision, and the creativity to guide you through a changing world. ♪

welcome back time for what we call "wex wrap-up. we begin with the u.s. navy saying the missile destroyer carried out operations in the south china sea today. this came after the chinese military conducted drills around taiwan this weekend. and exxonmobil talking to pioneer about acquisition. exxon is exploring options to reshape the gas and oil industry. and the biden administration is looking to transition the u.s. to electric vehicles. according to reports, the plan would require evs to account for

67% of new vehicle sales by 2032. first republic suspending payment of the cash dividend on the preferred stock as a measure of oversight after halting the common stock last month. and sam altman says he is looking to expand in japan after meeting with the japanese prime minister. and "super mario" scoring $377 million in global ticket sales. shattering records and taking the crown for the top opening weekend of 2023. gearing up for the trading day ahead. earnings from price smart on tap with comments from john williams this afternoon also ahead, world bank meeting being held today

turning attention back to wall street. futures are flat nasdaq in the red. we are turning attention to earnings season. kicking in high gear with the big banks on friday. let's get insight on how to position your portfolio for this trading week ahead joining me now is brian levitt from invesco >> good to be here >> brian, we are coming off the jobs report. investors have not had a chance to respond to it futures are muted right now. what do you say is the reaction after the jobs report which was in line for last month, but saw the upward reinvestvrevision >> the jobs report started to hint to that you are seeing private sector employment slow and wagies are

becoming muted it almost felt like a soft landing report and things were slowing. inflation not remaining a big challenge. we will not get through this with a soft landing, but a report that wasn't a particular concern for investors. what with people will remember is that is lag data. >> you have to explain that. you said it was a soft landing report, but you don't think we are heading for a soft landing reconcile that >> a job growth report remaining reason ablable and inflation pressure is modest that is an environment where growth remains okay and inflation stops being a problem. i would call it a soft land-ish report it is hyperbole or exaggeration to think this is not the first time the economy can get through 500 interest rate point of hikes in a short period of time

without having a recession it is very likely we will. the guide posts on path to recession are here whether it is the inverted yield curve or banks tightening the good news is the markets did a good job equity market did a good job of pricing recession last summer. the market leads theeconomy, not vice versa it doesn't have to be anything investors significantly fear, but nonetheless, it is an economy that is slowing. >> the economy is slowing. we have three big reports coming up cpi and ppi and big banks on wednesday, thursday and friday how should you position today knowing the market reports are coming up? >> we are still in an environment where investors want to be more defensive that is not going to last forever. that is very much much a tactical call as the economy slows here what i remind investors is once inflation has peaked and is

coming down and once the fed backs off the tightening cycle, you see markets do well the next couple years i would say tactically defensive, but keep your eyes on what's going to ultimately be a market looking forward to the new business cycle so you have a little bit of challenge until we get there the consumer price index is front and center that's what we have been focusing on and it will show inflation is moderating. inflation will come down it will get back closer to the fed comfort zone as that happens, that's when the fed pause or policy shift happens. again, the new market cycle emerges. little bit of challenge before we get there, but ultimately the recovery phase plays out. >> what percent is equities and bonds and cash knowing everything could change on friday >> when you think of the 60/40

portf portfolio, you don't need huge swings you want to make sure the 40 is protecting you you increase some exposure to bonds than you typically have. whether it is 45% of the 50% make sure it is high quality bonds or high quality treasuries on the equity side, be defensive. that means larger cap and growthier and lower stocks with lower volume atility. for investors, this is about the next 5% to 10% move which could be retracement of gains we have seen this year i think the bottom is in for this cycle >> brian, i don't want to cut you off. you are straddling the fence if you had one word to describe the investing week ahead, what

would it be? >> volatile. >> all right i appreciate you being here. thank you for the insight. that does it for us on "worldwide exchange. futures are flat on that note, we kick off to "squawk box" coming up next. thanks for watching. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are.

good morning futures are relatively calm after friday's jobs data met expec expectations this week, a key read on inflation. another one? and the kickoff of earnings season i'll tell you what to expect. and shares of pioneer natural ref ssources higher aftr exxon is holding talks to buy

it. and "super mario" has the best box office weekend of 2023. is that us it is. applause it is. it's monday, april 10th. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from nasdaq market site in times square i'm andrew ross sorkin with joe kernen and melissa lee the dow is 2 po4 points higher. s&p is up a little over 1 point. we are on this three -- sort of