. >>> and marc benioff sits down exclusively with cnbc. it's tuesday, june 27, 2017, "worldwide exchange" begins right now. ♪ >>> good mornings. welcome to "worldwide exchange" on cnbc. i'm sara eisen >> i'm wilfred frost good morning to you from me as women. well >> yesterday, tech ended up lagging the market, leaving the nasdaq with a bigger decline as for futures dow futures are little changed down about a point nasdaq futures continue to sell off, down 26 points. s&p futures are down two moves in the euro following comments about mario draghi. draghi says growth in the eurozone is abovetrend and broadly based. a decent jump in the euro over the course of his speech up 0.64% the key soipoint is he aid all signs point to strengthening and recovering that gave the euro the jump on the news he said inflationary pressures seem to be replacing deflationary pressures most of the speech was dovish, indeed he did say loose policy was still required tomake sure inflation dynamics became durable. any changes to policy would be gradual. the broad

benioff. >> last year we saw a lot of opportunity. this year a tremendous opportunity of narrowing the reason why as the public market accelerated this year, especially in technology, entrepreneurs were looking to sell their business last year and are now looking to go public there's less opportunity for us to buy companies >> what do you think of valuation there's the tech space? we watched the f.a.n.g.s drive the public listed markets higher it feels like we're getting into nosebleed territory. >> i think some of those fans are underv fangs are undervalued. we worked with aws, amazon, you look at that business going past $20 billion, this year i think it's on trajectory to go to 1 0 1 $00 billion. if you look at that, amazon is a tremendous upside for the future wref >> the business outlook supportive of that you think there's plenty of space in the technology sector for these companies to maintain these tremendous margins >> one thing that's exciting is ai is the new platform we talked about ai, job retraining but every company inc

among her special guests, marc benioff, assistant to the president, reid kordish. >>> in other beltwayuzz, attorney general jeff sessions is fighting back saying allegations that he or anyone in the trump campaign colluded with the russians are an appalling and detestable lie sessions testified before the senate intelligence committee yesterday afternoon and there were some fireworks. sessions and ron wyden had a heated exchange when wyden pressed him on why he recused himself from the russian investigation. >> mr. comey said that there were matters with respect to the recusal that were problematic, and he couldn't talk about them. what are they? >> why don't you tell me they are none, senator widen there are none i can tell you that for absolute certainty. >> we can -- >> you tell -- this is a secret innuendo being leaked out there about me, and i don't appreciate it >> sarah huckabee sanders said the president thought sessions did a good job overall i would have to say another encouraging day for the markets in light of a big test for the trump administration in terms of politics on

>> no, turn off the oxygen they let benioff got ahead, but he's toto'ing all the other opponents. will you be on the call? >> i will be listening i won't be asking questions. >> maybe you can pass it on. >> ask him about toto. >> i will. maybe he's actually heard it. >> hurd has heard it these are three executives, by the way, they are freight trains >>> let's quickly wrap this up. >> really? we have a lot of things. >>> anybody else >> not enough. not enough. >>> why not? >> because it's total re-rating. $66 billion in cash. >> how long has oracle been a value stock? how long has been it -- >> you could say arguably a decade >> that long >> yeah. you can't rate a value stock anymore. if safra is right, then she's saying it's going to accelerate here this was a triumphant called i want to say congratulations. what's with heather bellini? what was with her not saying congratulations? she's out. she can take her way -- i was going to do a little, you know michael corleone about what happens to her now that she's not in she's out. >> right. >> she did not say congratulations. at the

i think between benioff and bloc, two incredible managers who are running the whole show, $4.5 millionacquisitions, they have gone out and bought growth to continue this move to the upside >> dr. jay >> unbilled deferred revenue is up like 26 or almost 30% that i think europe just has lit a fire under many of these tech companies. from what i hear, france is really kicking in right now. not just because of mccomb's victory, but people are shopping, businesses are spending again, from what we hear so based on that and what these guys have done with the cloud, judge, i think crm has got at least 110 in it. >> any had to say, okay, you go oracle or you go salesforce, what do you do >> both. why can't you do both? >> you can >> i'd do both >> it's a incredible aps >> i added to oracle today and hold as a position in salesforce >> they knocked it out of the mark, if you recall. >> the theme is cloud. cloud is certainly regaining momentum cloud has a long runway ahead of it and these guys are the leaders and oracle, i just think, is more of a transition story starting to work salesforce, eve

business leaders earlier this year, president trump accepted a challenge from salesforce's ceo, mark benioff, to create 5 million apprenticeships in five years. last month, the labor secretary visited a bmw manufacturing plant in germany to observe the company's apprenticeship program in actions. under solar turbine's four-year program, apprentices get paid, trained, and mentored. by the end of the program, all of them get hired. company executives say the six-year-old program helps fill a critical need in a competitive marketplace. >> if the apprenticeship program helps us for the future. >> reporter: isaac moorehouse thinks apprenticeships are key to building the skills gap. three years ago he started praxis, a startup that matches apprentices with companies. >> it's a three-month professional boot camp. we're helping young people kind of get the skills and knowledge that they need to go and succeed in the workplace. then we're actually placing them in a paid apprenticeship. >> reporter: one company that works with praxis helps clients with electronic documents. apprentices are critical to

when ceo mark benioff met with president trump in a business roundtable he urged him to create 5 million apprenticeships in the next five years. trump seemed receptive. >> let's go for the five years, okay? >> i think apprenticeships are huge for the future. >> reporter: isaac moorhouse thinks apprentice ships are the key to bridging the skills gap. three years ago he started praxis, a company that matches apprentices with companies. >> it's a three-month professional boot camp where we're helping young people kind of get the skills and knowledge that they need to go and succeed in the workplace. >> reporter: one company that works with praxis is this startup panda dot. it helps with electronic documents and apprentices are critical to helping panda doc manage web traffic. >> 1 million people come to our website every month. i'm more likely to hire from an apprentice program that's hungry for that experience than someone randomly job searching. >> reporter: olivia van warmer chose an apprenticeship over going to college. she believes this path gives her a higher return on investment. >>

we also got statements from microsoft's chief legal officer, meg whitman, and marc benioff, who said, "deeply disappointed by the present's decision to withdraw from -- the president's decision to withdraw." apple didgoogle, and sign a letter in may asking trump to stay in the paris climate agreement. we know tim cook called the president to urge him to remain. joining us now to discuss, colleen regan, and our guest host for the hour, tech economy -- techonomy ceo david kirkpatrick. what does it mean for technology and business leaders who may not have voted for the president, but were prepared to work with him, to desert him now? david: i think they've already deserted the president on most substantive issues. it's not like they are deserting him now. the gap between president trump and silicon valley is a grand canyon at this point. more interesting to me is how committed business has become, not just silicon valley, but most big businesses towards climate change remediation. the issue of whether climate change is happening or not is not controversial among most business leaders. it

if you're benioff, you have to essentially endorse the idea that the winners in these secular growth areas are not overvalued because he's one of them right? that's exactly where facebook, amazon trade right now the market is all valuing them along that similar base. on an earnings base. >> 8.5 billion in actual cash going out for content. here in the markets dynamic yesterday, certain hedge funds were actively selling, in part because they were getting redemption requests. that has been picking up late for a number of hedge funds, which continue to be under significant pressure in fact, some of them, it's an interesting dynamic in the hedge fund industry. some, because of such under performance for so long, moving more to a long only structure almost with a fee structure that mirrors that more than it does the hedge funds. you never know what's true, what's not >>> wti higher for the fourth day in a row, a bit of a comeback from a rocky start before and financials making a move up to the top of the s&p and dow with jp morgan and goldman outperforming yields. >> essentially the trade

a lot of these companies, if you go through the letters, marc benioff of salesforce posted one last nightthey seem to have the argument that it's about u.s. competitiveness, u.s. jobs, and having a major role among world nations. by the way, every single nation in the world is in this, we would be joining nicaragua and syria as countries that opted out if the united states pulls out of that. that's what president trump promised. he wants to make u.s. business more competitive and create american jobs. his closer advisors, like the ceo of dow chemical who has been a major backer of president trump since he joined the councils, he has urged him to stay in. >>> wilbur ross says he hopes to complete talks to renegotiate nafta by early january, well before mexico's general election in july. speaking at an event in washington, ross said the trump administration would impose anti-dumping and anti-subsidy charges on mexican sugar and canadian soft wood lumber. the deadline for a mexican sugar deal is june 5th. >>> back to the global markets. in asia overnight, chinese pmi fell short of estimates.

those are the two big sort of heavy industries where we have seen it work in this country but marc benioff been a leader, he's been at a lot of these meetings in washington about this issue from salesforce can these tech companies, can silicon valley, the job creators where people actually want to be pick this up >> absolutely. again, this comes down to what sort of incentives you put in place for that, but there is a real shortage of engineers who are skilled in the kind of programming and development that these companies need and a lot of universities are churning out folks that have different skill sets, so to have the companies themselves say, look, we will put together a training program, we have the best folks in the world, we will teach you to do what we need u you to do, that would be incredibly valuable, not just for the companies themselves but for the country and training people. >> yep we'll take a quick break here. come back to the roosevelt room. e thpridt 'lesenwel sehim on the other side. dow's down 50. don't go away. anything. even a coupe soup. [woman] so beautiful. [man]

. >> and mark benioff. >> do you think safra catz is going to say you have to get the money back in?e's not stopping people from getting the money in he's pro that. wilbur ross is saying everything's great it's great, great, great you know, it's great it's great, david. >> okay. if you say so. you were away for a week there's a lot of agreeness that went on during the week i was gone so much had to come on the phone a couple of times with the change at the top of ge and the deal -- not giant in the sense of size. diapers.com was probably a larger percent and of market cap than whole foods is in terms of right now but giant in terms of impact >> i look at this group and i say these guys, the common ground they have is that they want to get in and get out >> there's still a lot of buzz today surrounding the amazon deal now published reports say that amazon will likely take steps to cut prices at whole foods and reduce head counts grocery-related stocks did tumble deutsche cuts costco to a hold, are there buckets of devalue that are unamazonable? >> this is like when walmart destroyed a

that we have seen support for these types of programs from the likes of ibm's jenny rometty and marc benioff from corporate america backs the initiative this time around. but we will see whether the messaging changes for the white house as attorney general jeff sessions is slated to testify in front of the senate intelligence committee. likely a closed hearing tomorrow on capitol hill. and whether these calls for the president to testify continue to ramp up. and whether the president himself can stay on message this week republican senators like lindsey graham have said that the president is his own worst enemy. they have called for him to get off twitter but yesterday he tweeted nine times alone on a variety of issues. so we'll see whether that messaging stays on course this week guys >> yeah, whether his tweets focus on workforce week more than infrastructure week last week kayla, thank you for the set-up in the white house this morning. >>> for more, out of the news in washington, let's bring in terry haines, head of political analysis and a chief investment officer. kayla talked about th

. >> before we get to rick larry, i get you heard mark benioff out there at this summer davos event saying he feels like the f.a.n.g. stocks are still undervalued right now. >> sure, sure, yeah, and he doesn't have a conflict of interest, does he? i mean, it's not like he's talking his own book as the single largest share holder in any technology stock i mean, you know, what's good for him is good for him, right and my investors, i need to protect their capital. i don't need to worry about what he's doing in silicon valley i think he's doing just fine we'll protect our capital and look for income second half of the year. >> netflix down 4% today. >> rick, let me steer you to what i'm sure you've been focusing on today, the skyrocketing yields in europe starting, you know, the ten years, whether it's in germany or france or italy or wherever it was and the impact it's had on our own yields in the united states what do you make of some of the hawkish talk from mario draghi this morning >> well, everybody is focusing on what's going on in d.c. and it's having these outsized effects in stocks.

. >> or buy a table at wnd sit wi warren buffett >> we should congratulate half the valley, marc benioffhanging out with chris rock -- >> you were up at 9:00 watching that you saw that this morning? >> i was -- i didn't stay up all night. i watched a bit and then saw some stuff this morning. >> need to be here need your rest >> my beauty sleep >> you do. >>> on today's agenda in washington, attorney general jeff sessions will testify about russian interference about the election before the senate intelligence committee kayla tausche has more on the top political stories. good morning >> good morning. that is the top political story. the attorney general's testimony will be open to the public this afternoon around 2:30 where he will attempt to set the record straight on his meetings with sergei kislyak, his role in the firing of fbi director jim comey and comey's comments last week eluding to classified facts that would require sessions to recuse himself in the russia investigation. press secretary sean spicer yesterday was asked whether the president would seek to keep any of his convers