Transcripts For CNBC Worldwide Exchange 20160909

Right now. A very good morning and warm welcome on cnbc. Im wilfred frost along with morgan in for sara. Welcome morgan. Good morning and thank you for having me. Im excited to be here. Its my first time and im really excited to be your copilot early hour. Great to have you with us. Very good morning. Happy friday. Lets get straight to the market action. We were a little soft yesterday. A quarter of a percent down. The nasdaq a little softer still around. 50 declines. Were expected to go into a Third Session in a row of declines today. You can see now the dow called lower 30 points. The s p 500. The nasdaq by around 12 points. Yesterday energy over took telcos as the best performing sector year to date as wti rallied 4 . In general, though, it was a theme of taking money off the table. The ecb failed to deliver with sufficient dovish action or rhetoric. Either way we didnt get what we expected. Markets lost a little bit of steam. As we look at the bond markets, we did see yields tick up yesterday around the world as that ecb action didnt come in in terms of easeness. And today were just seeing yields move a fraction in the other direction. 1. 616 on the tenyear treasury note. All focus right now on korea. Breaking news out of north korea overnight. Successfully tested a Nuclear War Head in what might have been the most powerful launch ever. Very worrying. Covering that story for us from asia. Good morning, morgan. While it was enough and it was major enough to really rankle the markets over here. We did see heightened risk sentiment and no surprises. South korean benchmark was down. Dollar juan was relatively stable around 1100. Important to note the bank of korea met today and elected to keep rate steady at 1. 25 . Difficult to see how this plays out. Are we going to see more uncertainty. Whether sanctions being brought to bear. Are they really effective is the big openended question. Is it going to embolden pinjing even further. You have to ask yourself whether this is going to present an opportunity. In an environment weve got a lot of yield tourists looking for the yield out here. 3 looks quite tasty. Do they buy the dip or hold back if they have the fortitude considering the go politics of the region. Monday i think is going to be quite important. We have fmc voter speaking there. And a dove. Is she going to set the tone in the months to come . The asian markets will be watching that one. Thanks very much for that. Lets have a look whats happening elsewhere in the world. European equities are lower. Only slightly as you can see. All of the major embassies just below flat. Germany for the week is similar to in fact what it is today. Just below flat. The ftse 100 the laggard of the major embassies for the week down 0. 5 . As for the broader markets, taking a look at oil. We are seeing wti crude and ice brent pair some of those gains we saw on thursday. Wti really stronger on the week. Both of those up 6 for the week after that record 14. 5 million crude oil draw that we saw on the heels of hurricane hermine last week. Gasoline futures lower today. We got a note out of Morgan Stanley in terms of oil saying maybe the supply demand issue has not worked itself out. Very hesitant to say were going to move much higher up. Taking a look at gold right now, gold is lets see if we can pull up the chart here. Gold was lower. That is down about 2 right now. At 1339. Dollar down almost 1 . Not too Much Movement happening had to, and, of course, the yen as you can see is the major mover only around 0. 3 of strength for the yen today. The market is no longer pricing in a rate hike, but one hike profile market high profile market watcher says investment watchers could be surprised. Landon dowdy joins us with more on that. Saying in latest presentation the fed is determined to show independent from the market and may hike rate this is month. To move u prove it they want to show theyre not guided by the markets. Goldman sachs reducing expectations. Fed will hike to 40 citing weaker economic growth. Lowest reading since 2009. That said, points out some comments suggest the central bank may not be as data depend as we think he says. Clearly its a bad environment to be raising rates. Some fed members are talking about two rate hikes between now and the end of the year. Heres the bond kings approach, saying getting defensive with bonds. Bond unfriendly turn this summer. Reuters went maximum negative on treasuries when the tenyear hit a low. Also says hes turning shortterm negative on gold, but has not sold any of his position. Guys, back over to you. Thank you very much for that. On a programming note, dont miss steve leasemans exclusive interview. Take a look at stocks to watch. Retailer beating profit and sales expectations. Also reaffirmed Earnings Guidance for the year. Enterprise Product Partners is no longer pursuing a deal to merge with williams. Withdraw offer because lack of engagement from williams. Enterprise is up 1 . Williams is down 2. 35 . Two samsung reports weighing on that stock. Warning travelers not use their samsung note 7 smartphones on planes. The phones were of course recalled after complaints the batteries can catch fire. Separately samsung asked a u. S. Judge to allow to pay Cargo Handlers to remove goods from shipping vessels. Around 14 billion has been tied up globally as the container carrier has filed for bankruptcy. Im going to be live at the new york port later today to talk about that fallout as well. Absolutely. A big story. Samsung to get the apart Association Ruling as well really kind of adding to insult industry for something already been a high profile issue with them. Unusual for them to make such a bold statement specifically about one phone or one company in this way. So its. Understandable if youre phone is going to catch fire on a plane. Scary. In other Corporate News, chipotle has agreed to financial settlements with more than 100 customers. The diners who fell ill after eating at the chain last year has been resolving the matter outside the court in attempt to avoid public battle. The terms of the settlements were not disclosed. Bank of america agreed to pay nearly 13 million to settle claims by 270 former employees. The employees were former Merrill Lynch advisers fired after merger in 2008. That i have claim the bank failed to follow proper procedures after terminating them and they deserved deferred compensation. Wells fargo being hit with 185 million in civil penalties. Regulators saying employees of the bank created unauthorized Bank Accounts to boost sales. Well as has fired 5300 employees in connection with the behavior over the last five years. This is the largest fine the cfpb has ever levied against a financial firm, suffering about. 5 today. Spaceex could be grounded. Exploded in the beginning of the month while being fueled for prelaunch test. Elon tweeting about the investigation saying still working on the investigation. Turning out to be the most difficult and complex failure we have ever had in 14 years. I got to mention this, i was there last week when it happened in the vicinity. And ula, which is actually joint venture between boeing and marten Just Launched itself 111th Successful Mission with atlas five rocket yesterday. Very impressive track record, but they definitely, theyre competitors. They have skin in the game here. They are jumping on the band wagon to highlight the opposing teams misery at the moment. They would probably say they whether or not, but you could make that case. There we go. So google announcing it is acquiring the Cloud Software company app gee. Apigee. 17. 47 a share. If you take a look at premarket, about a third of a percent lower. Snapchat taken a new line of credit. Morgan stanley on the deal. According to reports the Credit Facility will allow the social Media Company to fund growth. Its latest round of funding valued snap at 18 billion and could be nearing an ipo. We wrap up the trading week with one piece of Economic Data. Also comments from a pair of fed officials. July wholesale trade is out. Boston fed president rob kaplan is speaking today. Rosengren is a voter on the fomc this year. As for earnings, look for results from kroger. That should be interesting in light of deflation comments. The New York Stock Exchange will implement changes to opening procedure on monday to speed up trading and efficiency. Even on volatile days. The new procedures will eliminate rule 48 which allows Market Makers though delay the stock. The fcc approved the changes in july. The New York Stock Exchange asked for the new rules in the wake of flash crash in august of last year when the dough dropped 100 points in a 10 minute period. Still to come, economies in limbo. Euro Group Finance ministers gathering today. Well tell you what theyre saying about the future of the european block. Stay with us. Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . More of a spokes metaphor. Get organized at voya. Com. Welcome back to World Wide Exchange. Very good morning to you. Lets get you up to speed on the market action. Yesterday saw a quarter of decline fdow and s p. Were expecting declining once again today. Third day in a row of declines. Just slight as you can see. The dow expected to open down by 31 points. Now, yesterday, energy became the best performing sector of the year. Overtaking telco in terms of s p sectors. Oil soured 4 . Wti having a very strong day indeed. Up 7 for the week as a whole. Expected to break a twoweek losing streak. Its soft today as is brent. A strong week for oil prices. Just shy of 47 on wti. Now to broad saliva. Discuss all of the Economic Issues from brexit to greece. Reporter good morning. As you quite rightly said the euro zone finance meeting here couldnt be more perfect. Youve got mario draghi of the Central Bank Standing pat doing nothing more on stimulus, but sending a bold message that they need to stand up and do more. Hell bring the same message here when he arrives. Theyre in the meeting now talking. I look around and who can respond . Youve got italy with the problem in the banks. Fwrees as you mentioned still a problem. Weve got no government in spain. A fragile government in italy. Theres only one government that can. Thats germany that could actually spend money. The german finance minister arrived here this morning and pushed back on mario draghi and said look, its ecb policy. Qe that seen the euro weaken. Thats boosted german exports. His message was guys if ecb policy isnt changing any time soon, neither is germany. Mario draghi may come with a bold message, but thats a true definition of messages falling on deaf ears. Weve seen headlines this morning, of course the head of the euro Group Finance ministers saying the uk has to get on with brexit. They will be the ones to suffer the most from delaying themt. Has the data weve seen over the summer come from the uk actually giving breathing room to the uk and put the pendulum back a little closer to Center Ground in terms of who is going to have the power in negotiations when they do start. Well, wilfred, absolutely agree with you. All the power lies with the uk when they decide to invoke article 50 and kick off discussion. As you point out, the data in the uk has surprised everybody. Look at the data yesterday that mario draghi announced for the euro zone. Barely in the adjustment at all on growth or inflation. Actually even on both sides of debate, so far you see very little reaction to brexit at all. I think my point here would be actually brexit has masked a lot of individual issues that i just mentioned in the euro zone, whether its portugal, italy, greece or in fact ireland. Perhaps we should be looking at in the shortterm, far closer rather than brexit. Back to you. Thank you very much for that. Live in brat saliva. Highlights from Opening Night. Br bronco beating pan thethers onc again heres a look at todays national forecast. Good morning. Lets take a look at the forecast across the country. Its kind of hard to miss the bullseye, isnt it. Heavy rain fall possibility, maybe damaging winds, him a. Cant rule out tornados either. Folks always have a plan of where to go should Severe Weather come calling and best chance across the corn belt. Lovely day for you. Very warm for you. Seattle and los angeles look fantastic. More on temperatures unseasonably warm for you. Looks like summer is never going to end. The case in southeast. Denver breezy conditions along the front range with 78 degrees. Beautiful dry, conditions across the Northern Rockies and in the pacific northwest. More World Wide Exchange. Everyone thought i was crazy to open a hotel here. Everyone said its so hard to be a musician, but i cant imagine doing anything else. Now that the train makes it easier to get here, the neighborhood is really changing. Im always hopping on the train, running all over portland. I have to go wherever the work is. Trains with innovative Siemens Technology help keep cities moving, so neighborhoods and businesses can prosper. I can book 3 or 4 gigs on a good weekend. Im booked solid for weeks. It takes ingenuity to make it in the big city. Reporter donald trump takes message to conservative voter. In ohio education speech pushing school choice. Largely focused on Hillary Clinton. She refused to take accountability for failed policies in the middle east that have produced millions of refugees. Reporter trump getting pushback from own party for praising vladimir putin. Mike pence defends running mate as the republican most like Ronald Reagan. They said he was little more than a celebrity and entertainer who entered politics late in life. Sound familiar . What would Ronald Reagan say about a republican nominee who attacks americas generals and heeds praise of russias president. Reporter Hillary Clinton is in new york today. After a softer message to the National Baptist Convention Last night. We need a president who understands that none of us has all the answers and no one person can fix our problems alone. Reporter now, that is the first of what the Campaign Says will be four speeches Hillary Clinton is doing on her theme stronger together. Great stuff. Thank you very much. Keeping with the politics theme, facebook cofounder pledging 20 million to Hillary Clinton campaign. In a new blog post, he and his wife would donate to several democratic groups including the hillary victory fund. Excelled to act, writing if donald trump bwins the country will fall backward. Had been the Tech Industries biggest donor giving 5 million to support marco rubio. The annual tell on ththon t raise cancer. Stand up to cancer is the live event broadcast without commercials. It features celebrities and performances. 100 of donations go to support Collaborative Cancer Research programs. Stand up to cancer can be seen tonight 8 00 p. M. Eastern time on all major standup networks including nbc. Now to sports and Opening Night of the nfl season, rematch of super bowl 50 as the Denver Broncos played host to carolina pan panthers. Mounted a comeback. The panthers still had a chance for the win, but a last second field goal missed wide left. Denver holds on for the victory beating carolina 2120. From football to tennis. Major upset. Serena williams went down to pliskova in straight sets. Its the second Straight Year serena has lost in the u. S. Open semis. Pliskova is only the fourth player to beat cena and venus in a grand slam tournament. Take on the number two seed curber in the final on saturday. Congratulations to her. Shes just slipping. Great shame. Still to come this mornings top stories and stocks to watch, including a retailer on the rise. But first a programming note. Dont miss the blockbuster lineup at next weeks delivering annual conference. The preeminent investor summit produced by cnbc and institutional investors. More Tickets Available at deliveringalpha. Com. Every stitch and seam of your Home Insurance, tailored to fit you and your budget. With unique features, like claim free rewards. Ohh customized Home Protection extra features all at an affordable price im going to live in this. In means getting more from your Home Insurance with an expert allstate agent. Its good to be in, good hands. And grease in just a minute on dirt and grime mr. Clean will clean your whole house and every room thats in it floors, doors, walls, halls hes so tough, he cleans em all mr. Clean [ clock titime. ] you only have so much. Thats why we want to make sure you wont have to wait on hold. And you wont have to guess when well turn up. Because after all we should fit into your life. Not the other way around. Good morning. Breaking overnight chlkt korea claiming success in fifth nuclear test. Tell kon best performing sector year to date. Plus burritos by drone. Tell you how chipotle plans to deliver to your doorstep, its friday, september 9, 2016 and youre watching World Wide Exchange on cnbc. Good morning and a warm welcome to cnbc. Im wilfred frost along with morgan. Great to have you here. So great to be here. Happy friday to you. Happy friday to all of you. Check in on the market action. Called lower. Only slightly. The dow expected to open down by 32 points. Could be the third day in a row of declines for the major embassies. Yesterday lost a quarter of a percent. As we said in the headlines, energy overtook telcos. Wti rallied strongly. Tenyear treasury note. Did see yields around the world tick up yesterday. Breaking news overnight. North korea has conducted fifth nuclear test. Calling this north korea biggest ever yield. Announcing the north is now capable of mounting Nuclear War Heads on ballistic misills. This is concerns that getting closer to nuclear misisile. Any provocative actions would have serious consequences. We could see those capabilities as soon as the next two to three years. Thats a startling time frame. Absolutely is. You know, this continues to be i wonder whether the timing was aimed as being soon after the president s visit to the wider region. Either way, certainly to keep an eye on. Lets have a look at global markets. They have had an eye on this. Not too significantly. Weve seen declines across the asian market this is morning. Only slight gains for those ones. Hong kong the standout. Nikkei just held on to gains. The rest of asia down. Europe if we have a look at that just below flat. Not significant declines as you can see. Soft markets yesterday after that lack of action from mario draghi and the ecb meeting. Just ending the week on a slightly negative note. Germany for the week as a whole just below flat. The ftse 100 down around. 3 of 1 . Take a look at broader markets. Taking a look at oil. Wti and crude futures are both low lower. Each down 1 . Pairing gains we saw yesterday. Both are up 56 for the week. Its been a strong week for oil. Gasoline futures also lower today, down 2 . Taking a look at gold, gold has been weaker this morning in that trade. If we can pull up that chart. Tell you where we are right now. 13 percentage 39. In gold right now. Take accident a look at currencies as well, weve seen the dollar broadly weaker. Marginally weaker against other major currencies. Weaker against the euro and weaker against the pound as well. Dollar ending down around 1 against a broader injectidex of currencies. New data where investors are putting money to work comes from lipper. In the latest week. Meantime stock funds saw their Third Straight week of net outflows. Stocks to watch today, shares of Restoration Hardware zur surging. Beating the street on top and bottom lines. Also reaffirmed erges guidance for the year. Up 13 in the premarket as you can see. Space excould be grounded for 912 months while it investigates the cause of last week launch pad accident. This according to the chief executive. United launch alliance. Space x. Launch pad beginning of the month. Down in cape ka navl rale while it was being fueled for prelaunch test. Elon tweeting about the investigation saying still working on the falcon fire ball investigation. Turning out to be the most difficult and complex failure we have had in 14 years. Got to tell you, miles away you could feel that explosion. You were close to it. Close enough. Thankfully not any closer. Yes mpkts now its time for top trending stories. Lets take a look. Faa urging passengers not to use note on planes. This coming after reported explosions of the battery in the twice. It was interesting to see apple shares slip yesterday. Straight after the announcement they had a decedent day. More disappointing yesterday. Some analysts saying whatever people think of the launch of the iphone its not as bad as samsungs rival phone. Clearly going to have to recall a lot of phone sgls this could be a good thing for apple. Meanwhile still on the samsung front. Teaming up with tmobile to create a 5 g network. Technology samsung saying it hopes to begin initial testing later this year. Its a bird, its a plane, its a burrito. Alphabet partnering with chipotle to deliver burritos by drone. Part of a test for alphabet project wing division. Made available to Virginia Tech students for a limit id time. Experimental service set to begin this month. Because College Students really needed anymore encouragement to gain the freshman 15. Of all the things to deliver, a burrito . I dont buy its going to work. It does sound messy. Youve got drone delivery pizza so dominos is looking to do this in new zealand as well. Might be the beginning of a food fad. British parliament is set to relocate while the palace\of westminister under goes renovations. Leaving the building for at least six years t. House of commons and the house of lords releasing a statement saying the palace faces an impending crisis we cannot ignore. This has been a debate going on for quite some time. Although it looks stunning from the outside, the houses of parliament, its got real structural issues that have been ignored. Many often remark how youll see a rat run across the floor despite the cameras not picking it up. Its in that state of. Its time to start booking those holiday flights. Fare comparison sight reporting this week is the best time to book thanksgiving flights. Booking now will save you 17 . Priechl booking time for christmas, thats the week of october 12. There we go. Better do that after the show. Still to come, todays must reads and later this morning, dont miss Steve Liesmans exclusive interview. As we head to break, a check on oil prices. Which are a little soft today. Down 1 in a week where oil is expected to break twoweek losing streak its up 6 for the week as a whole. Were back in just a couple of minutes. How can good paying jobs disappear . Its what the National Debt could do to our economy. If we dont solve our debt problem 19 trillion and growing money for programs like education will shrink. In just 8 years, interest on the debt will be our Third Largest federal program. Bad news for small businesses. The good news . Theres still time for a solution. Ask the candidates for a plan to secure our future. Josh, dont you have fryeah, so . Ng over . It stinks in here. Youve got to wash this whole room are you kidding . Wash it . Lets wash it with febreze. For all the things you cant wash, use febreze. Fabric refresher whoa hey mrs. Walker inhales hey, it smells nice in here and try pluggable febreze, with up to 4 times the freshness. In one refill. Pluggable febreze and fabric refresher. [inhale exhale mnemonic]. Two more ways to breathe happy its a very specific moment, the launch window. We have to be very precise. If were not ready when the planets are perfectly aligned, thats it. We need really tight temperature controls. Engineering, aerodynamics a split second too long could mean scrapping it all and starting over. Propulsion, Structural Analysis Maple Bourbon caramel. Thats what were working on right now. From design through production, Siemens Technology helps manufacturers meet critical deadlines. I think thisll be our biggest flavor yet. When you only have one shot, you need a whole lot of ingenuity. Welcome back to World Wide Exchange. If youre just getting up. Lets get you up to speed on the market action. Yesterday we saw slight declines. Two days in a row of decompliance. We are lined up to have a third. Markets could beat this slight decline we have in the premarkets. Were only down about 0. 1 . Lets have a look at european trade as well. Which is negative too, but, again, only slightly. We are looking at around about. 20 of decline. After mario draghi failed to ease further at the ecb meeting, but over the week as a whole, nothing too significant. The ftse 100 down 0. 7 for the week as we stand. The germany dax down just what were seeing today. Flat as of thursdays close. Quick look at asia today as well. That is softer for the most part. These three boards hiding the fact that all of asia was soft apart from these two. Hong kong up. Nikkei flat. Shanghai and everywhere else on the map was down. Of course the main headline coming out was north korea has tested another missile. One World Trade Center has been open nearly two years. Some people flat out wont go near it. Its too painful. Others are drawn to it and want to pay respects. In a new documentary, jim cramer meets some new tenants who describe how and why they decided to make the move. Reporter chris and jake are cofounders of mike, a digital news sight aimed at millennials. They signed a tenyear lease for the entire 82 floor. They came not just for the views, but because of what happened here. 9 11 has been a water shed moment for my peers and the opportunity to go dounlwntown a to be part of the rebirth of that neighborhood that a lot of people have done an incredible job with, i think is an honor for us. Learn more about the World Trade Center including who else has moved in and how secure and expensive it is in jim cramers new documentary. Must read stories catching our attention today. My pick in the Financial Times titled Mario Draghis fight to uphold ecb credibility. It reads the Central Bank Stimulus is having an effect, but it needs political support, not obstruction. The euro zone would be in a better position now if the ecb had been able to go further to do so with the support of fiscal policy from those governments in a position to provide it. I bring this up because i think it was the main driver yesterday. Clearly markets werent moving massively, but was the main driver. We saw yields tick up. Just begs the question whether these easy policies are here to stay forever. Everyone is expecting japan and europe to continue to see loose policy going forward. You see hurdles out there. The bank of japan thinks one might have lost the ability. In europe, you see the political difficulties that mario draghi is facing. He would have liked to be able to extend it. He cant. Germany doesnt want to do that at the moment. The loose policy we expect to be here to stay might face some hurdles. Begs the question if you have no more bullets in the gun, what happens if things get worse. Exactly right. My pick today in the washington post. Incident in hangzhou. In a land so sensitive, rolling staircases dont disappear at arrival ceremonies. Not one leader was left stranded on plane upon arrival. Hes referring to last weekend, president obamas visit to china and the fact that he had to, quote, unquote, exit from the as of the plane, quote unyoet and there wasnt a red carpet rolled out. He goes on in this particular article to point out china, russia, iran many of these world powers have essentially lost respect for the Obama Administration and that the rhetoric in this country is one thing, the actions that are being taken are another. This is particularly salient today given what weve seen in north korea with the nuclear test and the sanctions in place on that country, china continues to be number one ally and supporters. I think although of course china has come out and said that they dont support the developing of the Missile Program in north korea, i agree that obama would have hoped this final trip to asia, if we look back four or five years ago, would have been one with so much more to be able to announce and celebrate than hes able to come back with. That said in that press conference that was live here yesterday, he denied that the reception he got was less than positive. Said all these individual leaders have embraced the work they have done on the asia pivot and were questioning whether it will continue with the next president. Le can say that, but optics are another thing. Youre the leader of the free world and there is not a red carpet rolled out for you it is bottom bott bothersome. Still to come. Well have much more on what to expect with the markets in the rest of the year from a top portfolio manager. First a programming note. Dont miss this blockbuster lineup at this week sixth annual delivering conference. The preeminent produced by cnbc. More details and Tickets Available at delivering alpha. Com. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Were approaching the top of the hour. The team is getting ready for squawk box. We have a lot going on. Were going to talk nuke tests, if you will. The north korea nuke test and what it means to the markets all day long. I imagine well not just be talking about it on squawk, but the rest of the day. I do want to talk about banks and all the bang regulation. Were going to talk about that today. Wilfred, im sure you have views of what that means. Not only stories of private equity. Waste management ceo joining us this morning. Thats interesting we ining bel on the way of the u. S. Economy. Cfo of kroger a little later. A lot of tap today. We look forward to it. Squawk box is up around 10 minutes time. Korg Corporate News here, bank of america agreeing to pay. The employees were former Merrill Lynch advisers who were fired after the merger in 2008. The claim says the bank failed to follow proper procedures after terminating them and they deserved deferred compensation. Wells fargo being hit with 185 million in civil penalties. Regulators saying employees of the bank created unauthorized Bank Accounts in order to boost sales. Wells fargo has fired employees in connection to this behavior. This is the largest find ever levied against a financial firm. We wrap up with comments from a pair of fed officials. July wholesale trade is out. Boston fed president Eric Rosengren and rob kaplan are speaking today. Rosengren is a voter on the fomc this year. Dont miss steve lease miesman exclusive interview. We are called lower. Only slightly by about 0. 2 t. Dow expected to open 39 points. Joiningtous discuss markets what to expect, alex. Portfolio manager. Thanks for joining us. This time last week we were expecting this rally, the rotation we would see during august seeing the likes of banks starting to perform very well could continue if we expected the rate hikes to be delivered. We did twostories highlighting the difficulty banks still face and rate hike expectations are turned around. Was that august rally we saw in the Bank Something thats not going to continue. Obviously the banks are sensitive to rate hikes. I think what youre seeing is Central Banks are becoming far less central. What we have to really watch are the economic numbers. You saw stan fisher have Janet Yellens speech saying he wants to see where the thrust of the economy is going. Is it better or worse. Thats the question on the table not only for the fed, but for the investors. Ball game about the thrust of the economy, looking at Economic Data. We see disappointing numbers. The manufacturing data, services data, yet on the heels of the ecb leaving rates unchanged not expanding stimulus program, i think theres more sentiment in the market overnight or the past day that this does give the fed more room to potentially hike sooner. What are you thoughts . I think youre rights. You see a lot of peopling coming out and saying i think the fed is going to surprise. The reality is the fed is going to be data dependent. People dont like that and that is the reality. One Economic Data point isnt going to change that. Theyre looking for things to augment or to enhance or to validate what theyre sentiment is on the market, but if you look, i read the former chairman bernankes blog on fed analysis on the economy and Interest Rates. His position, i think this is what the feds position is, they havent been right a lot since the financial crisis. Some they must be data dependent before they make a step. Alan, you said that Central Banks are becoming less central to markets. So what are the other key factors youre focused on. Oil prices the start of the year, huge correlation with equity markets been volatile recently and markets havent mutual fund as closely with oil prices as we might have expected earlier in the year. I think oil between 40 and 508 is the final argument range for wall street. With oil at 40 50 it becomes less of a story. The big story right now is the president ial election in november. I would love to see the fed come out and say the fiscal policy of one candidate versus the other candidate, this is the effect we see it on the economy. The fed is not going to do that. In england the central bank will say this is what we think brexit will do. The Federal Reserve is not going to did that, but thats the big story. We have an election coming up. What is donald trump spending versus Hillary Clinton spending due to the economy. And you say the fed Balance Sheet that the fed has to prevent a costly, quote, unquote, rate rant. I short of tried to coin this phrase of rate rant. It comes from the taper tantrum. You had a tantrum when he hinted at the ability of diminishing quantitative easing. They are acutely aware if they were to surprise the market, you could have a rate rant where you see the long end ride. If you see the long end rise, that could hurt the equity markets and the fed will not driven entirely by the markets is acutely aware of. Is the long end not driven by Interest Rates around the world. I think the comparison and i think thats why Mario Draghis inaction or lack of new policy was particularly poignant yesterday. The comparison of rates here are particularly important. With the Balance Sheet at 5 billion and a trillion and a half coming due over the next five years, reinvesting interest to keep the low end longer than people might expect. We saw energy overtake telco. Tell us what your top sector pick is for the rest of the year. Look, so many macro factors going on right now. We have very Interest Rate driven. Those Interest Rate drivers are particularly driven be the Economic Data. We have to see the macro picture before we pick a sector. We talked about banking being sensitive to Interest Rates. So much dependent on the macro picture its impossible to select a sector of being a driver of the market. Great stuff, thank you for joining us. Pleasure to have you as always. We only have about a minute left so we want to highlight our charts of the week. What have you gone for, morgan. Ive got the wti chart. West texas intermediate chart. Up 6 this week. We had that record draw here in the u. S. 14. 5 Million Barrels part lir tied to the weather. Its an interesting chart. I have to tease that weve got our own brine san sul van repor in oklahoma this week. My pick for the week is u. S. Dollar chart. Slipped 1 against the broader index of currencies. Highlighting the way rate exp t expectations have slipped this week. Squawk box is next. Have a lovely weekend. Nancial you mean pay him back . So lets Start Talking about your long term goals. Knowing your future is about more than just you. Its how edward jones makes sense of investing. Good morning. Breaking overnight. North korea claiming success over fifth nuclear test. Another setback for samsung. Faa warning travelers not to turn on or charge galaxy note 7 smartphones on airplanes. Thats nice because of the risk of fire. If you went to sleep early, for me it would have been missing serena lose, but for actual people that do stay up late, you missed the broncos hanging on to beat bate the panthers. I did see the serena match. Well bring you the highlights of the nfl and maybe a little tennis. Nfl Opening Night. Friday, september 9, 2016. Weve got a lot going on. Squawk box begins right now. Good morning. Happy friday. Welcome to squawk box on cnbc. Im becky quick. Lets take a look at u. S. Equity futures. You can see the trend setting up at least in the early part of this morning. Right now dough futures down. S p down over 5. 5. Nasdaq down 13. It was technology that really drew things down yesterday. Apple other Technology Shares giving back some of the ground theyve picked up recently. You did see oil prices higher. Well take a look