Beat goes on and on good morning and welcome to Worldwide Exchange. Im sara eisen. Im wilfred frost reporting from washington today as wells fargo ceo was the before the Senate Banking committee. More on that including his prepared remarks in just a moment. Finally a very good morning to you from me as well. Looking good in washington. Miss you here. Playing my Favorite Song to keep me in a good mood. First a check on the global markets. U. S. Equity futures after they gave back most of their gains yesterday on the turning in oil prices. Oil was up 2 gave most of that back and stocks followed suit. Looks like were up in the premarket here, 42 points on the dow. Futures up five and nasdaq up about one. See if we can hang on to those gains. Theres some Economic Data, some housing earnings and of course two big fed meeting and boj meeting starting today. For the ten year treasury note yield lets show you where we are this morning hovering around that 1. 70 level. Hasnt bunched. 1. 69 is your yield. Well keep an eye on that in the next 48 hours. Lets have a look around the rest of the world. Europe pushed more positive in the last hour than at the open. Were up half a percent for the german market. Footcy 100 doing well. It remains mixed. Not positive across the board. Italy and spain in negative territory. No Central Bank Meeting in europe this week but certainly a sense of treading water ahead of two key results. Equity markets around the world. Quick look little further afield, Asian Traders you can see very much trading to hong kong, shanghai just below flat. Korea up positive half a percent. I mentioned oil erased some early gains yesterday and prices are lower. Wti going back towards 43 a barrel, 43. 11. In this 40 to 50 range. Brent the International Bench bark above 45, 45. 73. Down half a percent. Gasoline prices down more than 8 . As for the u. S. Dollar heading into the fed, you have this new mantra a hawkish hold. We heard that yesterday. This idea that the fed could hint that there will be an Interest Rate increase soon even if they hold their fire this week on rates. That decision comes out tomorrow. Into that meeting the dollar weakening just a bit against the euro. The dollar is weekening against the japanese yen. That indicates theres a risk off mood out there buying of the yen and pound still hovering at that 1. 30 level not doing a whole lot. Gold moves in the opposite direction, and is also Interest Rate sensitive slightly higher on the back of that weaker dollar up a buck which is very little percentage terms. So that dollar yen will be fascinating to watch over the next couple of days. Bank of japan and fed making moves and we could see that move in all sorts of directions. Wells fargo, we have some insight into what the ceo will say when he faces lawmakers over the banks unethical sales practices. The last sense he and the company havent yet sufficiently pla indicat placated for a few apology. According to prepared testimony hell say quote, im deeply sorry we failed to fulfill our responsibility to our customers, to our team members and the american public. Hell go on the say he accepts full responsibility for all unethical sales practices. He does go a little further than before in saying he wants to quote apologize for not doing more sooner to fix the issue. However he still maintains that theres no sign of him resigning saying i am fully committed to doing Everything Possible to fix the issue. These comments expected on capitol hill at around 10 00 a. M. Eastern time. Hes also expected to run through both the number of accounts in question and a number of employees involved to clarify in his eyes that this isnt quite as bad as some have made out in certain reports. Thats really the balance, i think, sara today, questioning whether he does enough in lawmaker eyes to apologize so we dont need to see outright action against the bank. I like the New York Times set up of this. They go into the background of wells fargo which people dont realize. They put them in with the other big banks. Wells fargo is a decidedly domestic bank. It has managed to steer clear of a lot of big problems that big bankers had, testifying before after the financial crisis, some of the big fines. They go into stumps own background. He grew up on a dairy farm a home town guy but has been paid like a wall street banker hundreds of millions of dollars while this was going on. This is fascinating as well see him up there on capitol hill in an unfamiliar position to his Bank Shareholders and to a lot of people watching this bank. Absolutely right. Unfamiliar position to him. In the past hes been seen as someone that hasnt given that greedy image that maybe some wall street bankers have been associated with. In the last couple of weeks thats being attached to him because he hasnt been stein apologize enough. How he manages what he said and the image he puts across is crucial. One point further when this first broke there was perhaps a sense among some of the big wall street banks oh, its about time that wells is in the spotlight. They all faced it. Now untilage has moved on for the rest of the banks because the whole sector has underperformed since this story broke and they will be watching just as tightly and keenly as wells fargo shareholders in wanting this to move on because increased regulatory spotlight for any one bank is bad for the whole sector. The interesting point is it was not really a systemic problem within the bank that it wasnt necessarily driving the entire bank culture and part of a bigger plan. Thats the point that lawmakers will grill him on and he has to explain who manages that if its not wells fargo wide. Absolutely. The one big points well try to get across that he feels has been misvoeptd far that 2 million accounts figure thats been widely quoted. Thats the number that an independent investigator pwc said they could not rule out from possibly having been missolved. Not that that number, that extent is definitely accounts in the wrong. So that was them in their internal investigation trying to make sure they ruled out all possible incidents of this. Well see how this goes down. Still a sense out there that more needs done apologize on the point. Good to have you out there. A lot more from you, from john stumpf later. Were also waiting on a decision from the bank of japan due out early tomorrow morning according to a poll by reuters boj is seen easing policy this week, two thirds of the respondents saying Japan Central Bank will cut rates further. And expecting more changes like more Government Bond purchases to come to fruition. Also on the central bank agenda day one of the fomc two day policy meeting. Landon dowdy joins us. At the beginning of the summer many thought it was very likely the fed would hike rates in september but a lot has happened in just a few short months. Mixed Economic Data showing weakness in the Service Sector but strength in job growth has changed consensus and now its expected central bank will leave rates unchanged for the sixth straight month but sentiment amongst policymakers is mixed. Stan fisher, george, midwester, all believe the fed is likely to or should raise yates. Janet yellen, dudley and dillard are the maybes. And Jerome Powell is the unknown. But chairman yellens speech is the key. They are concerned about waiting too long before raising rates. A december increase is on the table and expect that announcement at 2 00 p. M. Eastern tomorrow fold by yellens News Conference at 2 30 p. M. Back to you. A fun two days here when it comes to central bank. Thank you. Jeffrey dunlap doesnt think the feds will raise rates but he does say the central bank will include what hes calling hawkish no hike language. Something were increasingly hearing. He said Treasury Bonds is sniffing out a new bondmarket unfriendly environment which likely includes a fiscal policy pivot. He calls the 1. 7 the new 1. 55 which is a level weve been hovering around. Earlier he said fed officials want to show they are not guided by the markets indicating to some that many thought that he was banking on a rate hike to punish the markets. Looks like hes walking those back those comments. I think thats interesting he says the 1. 7 is the new 1. 5 range. If this tick up in yields is just a new fat balance not so worrying for markets. Beyond the fed and boj heres whats on todays economic agenda. August Housing Starts are out at 8 30 a. M. Eastern. Forecast dropped about 2 last month. Building permits are expected to rise more than 2 . As foerngs look for results from Home Builders leonard and kb homes and adobe systems. When we come back shares of wells fargo are down about 7 since regulators first announced that settlement and today john stumpf the ceo confirms his bank and his job. Well talk with chris whalen when we come back. Its scary when the lights go out. People get anxious and my office gets flooded with calls. So many things can go wrong. Its my worst nightmare. Every second that power is out, my citys at risk. Siemens digital grid manages and reroutes power, so service can be restored within seconds. Priority number one is keeping those lights on. It takes ingenuity to defeat the monsters that live in the dark. Welcome back to Worldwide Exchange. Good morning if youre just waking up. Lets get you up to speed. U. S. Equity futures pointsing to a higher start. Dow futures up about 46 points. S p futures up five and a quarter. Nasdaq up 2. 5. I would caution we saw big gains in futures yesterday and a rally on wall street. We gave it all back as oil prices came off of their highs. Lets check on oil this morning. Its lower. Wti, 43. 16 down. 3. Back in that period where we watch the price of oil as a correlation to the markets. Well fed help us break out of that tomorrow. Brent 45. 85, down about a quarter of a percent. Well keep a very close eye on that as we head into the wall street open. Absolutely. To todays top corporate story now the wells fargo ceo john stumpf will testify before the Senate Banking committee this morning. The testimony is expected to say im deeply sorry we failed to fulfill our responsibility to our customers and to our team members and to the american public. I acsemifull responsibility for all unethical sales practices in our Retail Banking business. He continued writing i want to apologize for not doing more sooner to address the causes of this unacceptable activity. I am fully committed to doing Everything Possible to fix this issue. To discuss this further is chris whalen. Chris, thanks very much for joining us. First up, i suppose is the question will the senate uncover anything that the cfpb didnt uncover well they could ask mr. Stumpf why he didnt address this when they first found out about it several years ago. I was struck by his prepared remarks but one constituency he doesnt mention are investors. Each year the ceo of a Public Company has to attest that their internal systems and controls are sufficient and i think the one thing thats really striking about this is the fact that wells fargo identified the problem but they didnt deal with it in a timely way. So it continued to fester over a period of years. Chris, of course people have been wanting to see more. Tuning well get any kind of admission were likely to see more in terrifies of action as opposed to stronger words whether claw backs or even possibly a resignation of Senior Executives . Well, i think theres going to have to be changes. Not just a matter of the retail bank. Wells has always been known as a very Aggressive Organization when it comes to sales and generating earnings and while we dont see this as a credit event for Bond Investors for Equity Investors this is definitely an issue. The reason wells has demanded a premium valuation, 1. 5, 1. 75 times book at the high i think they were able to deliver and if they have to change their internal culture then i think that will have a Ripple Effect that will definitely affect the Equity Investors. Im glad you fwlougt up. Your expertise now, youre doing bond ratings, not a credit event but youre an expert and i know this from following your research for a long time on bad behavior on banks. Where does this one stack up versus some of the others that weve seen over the last eight years since the financial crisis . When you look at a bank or any Public Company you look at the numbers and you look at the qualitative factors. Theres no good answer for mr. Stumpf. Its either he knew and didnt take action to deal with it effectively or they didnt know that these practices were continuing. Neither one of those answers is sufficient. Well see additional changes at the bank. Do you think this is an issue for the other banks as well the sector under performed last week but at the moment still seems this is a wells fargo specific issue. How much do other banks hurt just by banks being in the spotlight once again whats interest cigarette i think the larger banks were trying to get the political stars aligned so that they could make changes in some of the doddfrank regulation, perhaps even push for changes in the Consumer Finance protection bureau. That may be on hold. If youre a small bank this is a gift because youre trying to get a loosening of regulations and apply to regional and Community Banks and they can point to this behavior and say look these big banks are really bad but were not and i think that could be quite significant in the political equation. Whats the next shoe to drop here . Well see how mr. Stumpf gets through today. As i say the officers of a Public Company have to sign off on the banks internal controls each year. Thats batter of sarbanesoxley. When you go back and look they couldnt deal with this in a timely way even up to the present day thats a big deal and also a big deal for the audit. Do you think it would placate investors and the public and media and everyone else who is outraged at this client that if they put it on another senior manager and claw back pay for instance, the woman who was in charge of this division who left for the summer. They just put the chief officer for the retail bank on leave. Most dont have operating responsibility. Ultimately this comes back to the ceo of the bank, chief financial officer, chief operating officer of the bank. Thats where the focus will be. Remember the bank regulators, other agencies that will get in the mix. We havent seen the end of this yet. Chris, thank you very much for joining us this morning. Much appreciated. Thank you. Dont miss later john stumpfs testimony which you can see live right here on cnbc at 10 00 a. M. Eastern time. Still to come this moanings top political stories including president obama speaking at the u. N. But first as we head to the break heres todays National Weather forecasts from the weather channel. Ok team, what if 30,000 people download the new app . Were good. Okay. What if a Million People download the new app . Were good. Five million . Good. We scale on demand. Hybrid infrastructure, boom. Ok. What if 30 Million People download the app . Were not good. Were total heroes. Scale on demand with the Number One Company in cloud infrastructure. Hewlett packard enterprise. Welcome back to Worldwide Exchange. Now to politics. Were expecting more reaction today from the white house and campaign trail on the investigation into the bombings in new york and new jersey. Our tracie potts joins us with more on the trail. Good morning. Reporter good morning. We now know the suspect a u. S. Citizen born in afghanistan may have been radicalized authorities think and thats sparking discussion between the president ial candidates about not only terror and how to fight terror but also about immigration. Let me begin reporter president obama speaks at the United Nations day days after explosions in new jersey and new york. Cell phones and fingerprint helped authorities quickly catch the suspect in a shoot out. For us to be able to apprehend a suspect in just a little over 24 hours after an event takes place like this is Outstanding Police work. Reporter Ahmed Khan Rahami is a naturalized u. S. Citizen born in afghanistan. His father spoke to nbc. Did you know that your son was doing this . No. You had no idea . No. Reporter Authorities SayAhmed Khan Rahami said he and his father traveled to afghanistan multiple times and the suspect may have becomradi e becomradized. These are enemies, these are combatants. Reporter donald trump said were too soft on immigration. Which fails to properly vet and screen the individuals or families coming into our country. Reporter Hillary Clinton warns against religious tests. Hate speech being normalized, the dog whistles are out in the open. Reporter and trump and its wrong to path loose canon in charge who could start another war. Reporter this morning investigators are still trying to determine if rahami had help. We do know hes got a 5 million bond facing five counts of attempted murder. Keep in mind those are state charges. For now the federal government hasnt weighed in yet. Thank you very much for that. Moving on to sports a classic nfl matchup on monday night football as the Chicago Bears played the philadelphia eagles. Eagles running back matthews scored two touchdowns in the second half helping the eagles secure their win with a final score of 2914. Quarterback wince is the fifth rookie in the past 50 years to win his first two games. For that we say congratulations to jaime cramer our resident eagle fan, super fan. Coming up on the show this moanings top stories including a pair of central bank moving ats and wells fargo ceo on capitol hill. Youre watching Worldwide Exchange on cnbc first in business worldwide. [text message alert rings] [texting keystrokes] 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. Good morning. Global alert. The fed and bank of japan begin two day meetings. Well talk expectation and the high stakes for the markets. Feeling authenticate. Wells fargo ceo john stumpf heading to capitol hill to be grilled on the bank sales practices. Plus life in the fast lane regulators released new safety guidelines for self driving cars. Well break down that story on tuesday, september 20th, 2016. Youre watching Worldwide Exchange on cnbc. Dpoorng. Welcome back to Worldwide Exchange. Im sara eisen. Im wilfred frost. John stumpf was the before Senate Banking committee. More on that. Lets check in on the global markets. I would say pretty quiet awaiting two Key Central Bank decisions out from japan and the fed tomorrow. Dow futures are up 51 points. Thats been an improvement in the last half hour. S p futures are up six points and nasdaq futures are up 4. 5. This after they closed pretty flattish yesterday giving back what was a sizable rally in the face of oil prices which came off well off of their highs. As for the early action in europe, sort of mixed. You mentioned the word treading water. Thats what it feels like. The german dax is up half a percent. France up. 2 . Italy and spain are trading lower. As for the action overnight in asia, here is what we saw. Well bring it up. In hong kong flat. Shanghai flat as well. South korea adding half of a percent. The broader markets lets look at oil prices. The move yesterday came off the highs were soft this morning. Not too meaningfully down 0. 4 for wti crude. Brent is down around half a percent. If we look at the ten year treasury note yields have been ticking high ear couple of weeks ago but just paused for brett and come around that level of 1. 7 and not too Much Movement ahead of the fed meeting. We just wait for that decision, of course, has the potential to move it quite significantly but the market now expecting a hike. Quick look at the dollar. Soft yesterday. But only by about a quarter of 1 against a broad index of currencies. As you can see not too Much Movement today. That dollar yen pair the one to watch for the rest of the week with the bank of japan and fed expected to give decisions. Finally quick look at gold price which was basically fat earlier in trade just above value as it is at the point, flat 1318. We have insights what wells fargo chief john stumpf will say when he faces lawmakers over unethical sales practices. Stumpf accepted accountability but theres a sense he and the company have not sufficiently placated the desire among consumers, the press and politicians for a full apology. According to prepared remarks hell say i am deeply sorry that we failed to fulfill our responsibility to our customers, to our team members and to the american public. And that he quote accepts full responsibility for all unethical sales practices. He goes a little further than before and says i want to apologize for not doing more sooner to fix the issue, but still maintains no sign of resigning saying quote im fully committed to doing Everything Possible to fix this issue. Hes expected to run through number of accounts in question and number of employees involved to clarify that in his eyes that is not quite as bad as some reports have been making out and, of course, sara, the other issue many people wonder if he has to resign. He certainly will not offer that up and thats not in the cards today but will be whether we see some kind of demand for claw back or pay Say Something thats up to the board but theres desire to see more action against executives rather than stronger words. I wonders if hell clarify those 5300 employees that were fired as a result of this action. Do we know anything about how high they ranked . What sort of level they were at . If any one of those are being responsible for this . That figure of 5300 its over five years hell clarify that. He said its roughly 1 of the retail bank salesmen per year and he wants to put it in context the number. They said in the past it does involve people going up to managers, not management. But clearly the bulk of that number is lower down employees. I think the big question though will be on the senates mind, both the commune bank and chief risk officer of the community bank, both have left over the summer, one retiring and the chief risk officer of the part of the bank going on personal leave. At the moment they maintain, the bank maintains that has nothing to do with this scandal. That just seems extraordinarily convenient and im sure they will be pushed on that to ask why those people have left and should there be some kind of claw back on their pay. Hillary clinton is also take on the wells fargo case, writing an open letter to the banks customers saying ceo john stumpf owes them an explanation for how all of this happened. Clinton lays out a plan for addressing this type of misconduct including clawing back executive compensation. She said quote executives should be held individually accountable when illegal activity happens on their watch. Their compensation should take a hit if their Companies Pay major fines and they must face appropriate legal consequences if they break the law. Sticking with politics and a key theme on the campaign trail trade. Ainu book, senior fellow at the Brookings Institute writes about the chinese currency, gaining currency. In it he says the International Financial community is on the brink of a a momentous event as the chinese currency could pose a threat to the dollars dominance. He joins us now. Thank you for joining us. Its topical right now, china is always a political punching bag on the campaign trail. Less so right now because you have mexico and other countries here. What can you tell us about the rise of china as a threat specifically to the United States . First of all, china has gone a long way becoming an international use. It has become a reserve currency many Central Banks around the world are holding it as a Foreign Exchange. On october 1 it will enter the basket of elite currencies, five currencies in the basket so imf knows its a big currency. But will it ascend. It means for institutions that for Foreign Investors thats what the u. S. Despite all the political problems still has. I dont think china will have that. I think ever unless they are willing to understake significant legal and political reforms. And president xi jinping wants to take broader reforms. People will go to china for yield not safety. Donald trump wants to name china a currency manipulator as soon as he gets into office. How would china react to that china would react forcefully. Is there an economic basis to making the determination. The Chinese Central Bank was intervening in Foreign Exchange markets. On august 11th of last year they deviated a little bit from the dollar. That set off the turmoil. Now they are intervening to keep the currency from depreciating, from falling in value. Just a little awkward at this stage from anybody in the u. S. Including mr. Trump to argue china is intervening. Its a little late but that might not stop him from doing it. I just wonder how china would react if he does that, if he goes through with some of his hes threatened 45 tariffs on chinese goods. Is any of that realistic. It would set off a trade war and certainly at a time like this when the Global Economy is weak, business and Consumer Confidence is weak, making those threats could have a negative effect on privatesector confidence. China would hit back hard. Right now its the second largest economy in the world. Its between key driver of Global Growth since the Global Financial crisis and doesnt owe the u. S. That much, in fact if anything the u. S. Needs china as much as china needs the u. S. Thats always a question. Based on your work in the book when it comes to china owning our treasury debt and the whole financial relationship, trade, Everything Else that goes into it, who needs who more . I think it goes both ways. China still needs the u. S. Market and still the who has the leverage right now in the financial relationship . If you think about the official market that china holds its about 1. 2 trillion but china has nowhere to go with that money. Its not a credible threat for china to say well take our money and go some place else. What happens with the fed does affect china. But the same instance weve seen in the past what happens in the shanghai market affects new york as well. Its a relationship that goes both ways and neither country has much leverage over the other. Thats where i wanted to go on the each of a fed decision tomorrow a big one where even if they dont raise Interest Rates they could signal strongly they will. Last time they raised interest in december china was the market that fell apart. We started in the year the worst ever. Does that repeat itself . China is in a much more vulnerable position because the stock market was crumbling. There were concerns whether growth was stalling. Now the stock market has stabilized in china. Seems like growth has stabilized but theres some questions about how robust is the growth is. Not as big of an effect. But not just what happens with fed but whether at the same time the ecb has more aggressive easing. That could drive up the dollar. If the dollar goes up china has to let its currency depreciate and markets believe they are managing it. It wont be anything like last year. A lot of Big Questions investors have come down to this. Thank you for joining us this morning on the book. Its gaining currency rise of the renminbi. Also senior professor at cornell. Time for some top trending stories. Spending ten minutes searching for parking could come to an end. Google announcing a partnership with waze. They expect the alliance to increase the accuracy of the app where to park feature which could come in handy beyond just getting directions. I like the idea of this but im not shirt works. Means place will go quicker if they are available. How many times do people spend circling around looking for parking. No longer an issue for me. Regulators buying in to the vision that Autonomous Cars are the key to safer roads. The department of transportation releasing safety guidelines for the design and development of selfdriving cars. Regulators also calling for states to create uniformed policies for new tech. The guidelines coming a week after uber began trials to let customers order rides from driverless cars. Another Big Development in that space. The hard work starts. They have to come up with those regulations. Exactly. And a long way to go still. Still come to this mornings top reads and later one not to miss, a live interview with former president bill clinton. Becky quick will sit down with the former president at noon eastern time. Stay tuned. Youre watching cnbc first in business worldwide. Mmhmm. And now just feel if its cold. Yeah. Cool. [camera shutter clicks] [whistling a tune] smokey just gave me a bear hug. I know. I already posted it. This man creates software, to protect this customer, who lives here and flies to hong kong, to visit this company that makes smart phones, used by this Vice President , this little kid, oops, and this obstetrician, who works across the street from this man, who creates software. They all have insurance crafted personally for them. Not just coverage, craftsmanship. Not just insured. Chubb insured. 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. Dont start levering up your portfolio and take as much risk as used to. You cant in this environment. The time will come in the future there will be more opportunities but today this is not an opportunity you should be taking the same risk. Words of caution from mark carhart from our delivering alpha conference. Dont try the 6040 stock portfolio any more and you catch why and the rest of our global Opportunity Panel right now on delivering alpha. Com. It is time for our must read. Stories in the paper catching our attention. My pick in the usa today titled trumps winning terrorist narrative this idea that whenever this happens you do say that this helps trump in the polls. Well see if that actually manifests itself but the columnist at the u. S. Today jim robins writing this weekends attacks were much closer to trumps world view than democrats. The pattern of domestic terrorism committed by muslim immigrants inspired by radical isil ideology. We took Hillary Clintons press conference she addressed the topic yesterday and her argument continues to be i have the experience. Ive been in the situation room. Ive been there and fought terrorists. Trumps argument continues to be look how much safer we are all for it the clintonobama policies. Its a really kind of scary state of affairs as we approach this election everyone puts so much weight on the fear of another attack being relevant for the election. It is relevant. Hard to get concrete ideas on what to do about it. Hard to make our country safer at home and abroad because on one hand they are not going to talk about Itsunori Onodera involves high level security. But theres missouriy solution. Absolutely right. Big focus on the campaign trail this week and im sure that will continue. My pick in the Financial Times today is titled americas pacific pivot is sinking. Gedeon rachman saying long term Strategic Thinking is almost impossible in the current maelstrom of american politics. As a result president obama faces the sad prospect of leaving office with his signature Foreign Policy initiative, the pivot to asia sinking beneath the pacific waves. As we head into this election short term focus on that outcome but a topic negatively reviewed in the Election Campaign of the tpp and other parts of his have little chance of being passed because it will hurt his sort of seen to be successor Hillary Clinton in the campaign trail and signature policy not getting the traction woe have been wanting. Though i have to say theres sort of a ramp up of attention forks cuss and priority on tpp. Not just from the obama administration. Hank paulsen the former secretary treasure injuries republican was talking about it yesterday on bo xilai about how important it is not just economically but geopolitically right now. If obama can make the case it comes down u. S. Leadership in the world at a time where we need u. S. Leadership to fight terrorism and fight all sorts of the worlds threats maybe theres a chance for that no matter how it positions clintons or trump in the next administration. Of course jack lew said there was a chance of it passing but politically he has a tough job of getting it done opinion. U. S. Equity futures are pointsing to a higher open, 63 points on the dow to be precise but could the fed be a game changer. We ask jack caffrey. Same tune, Worldwide Exchange back in a couple of minutes. Today i am helping people everywhere do what they d. Better. I work with startups like alpha modus to predict markets five times more accurately. I am helping tv networks use social data to predict what people want to watch. And i worked with marchesa to turn fan feeds into a dress that thinks. Hello, my name is watson. Working together, we can outthink anything. U. S. Stock futures pointed higher as the fed kicks off a two day policy meeting and were approaching top of the hour so that means the team is commonwealthing ready for bo xilai. Becky quick joins us for a look at whats coming up. Good morning. Obviously youve been covering the top stories were watching. That testimony on the hill coming from wells fargos chairman and ceo john stumpf is a huge issue for us. Well be talking about that in a few minutes. Well be talking to mike may joanne analyst covering the industry and bob corker will tell us about what he thinks about. Some questions you might be able to expect. Also the fed the other big story you guys have been talking we have guests to run through things as we await that countdown to find out tomorrow whether or not they will actually, actually raise rates. In wouldnt hold my breath but well see. John taylor will join from us the Hoover Institution and peter fisher of blackrock who will weigh in. And our big guest today our news breaker newsmaker is jack welsh. Our guest host for a couple of hours and well talk to him about all these issues what hes seeing in the world of business and how he sees the political world shaping up. A lot of news coming up and well see you guys in a little bit. Becky, great stuff. We look forward to bo xilai. For now fed and markets, we just heard it. Is the bank of japan meeting more important than the fed . I dont think bank of japan is more important than the fed but equally trying to navigate through some challenges and i think thats why markets have been a little bit jumpier of late. Trying to understand whether bank of japan does shift their policy and whether the fed continues to let the market do more of the heavylifting, effectively tightening some rates without the fed acting itself. If you have a longer term view than 48 hours do you expect these two Central Banks to determine the way the markets u. S. Stocks trade for the rest of the year i dont think that the fed will determine how u. S. Stocks trade for the rest of the year. U. S. Stocks will take their accuse from earnings, take their cues from forward looking basis. Ultimately their policy to normalization is driven by the fact that the economy continues to heal. Were seeing things getting better. Not necessarily in a Straight Line but more often than not getting better. That can support the market to year end and going over the next 12 to 24 months. What do you think about bank stocks at the moment and how significant is this wells fargo issue . If you look at the banks i think they had been starting to trade better. If you look into the upcoming Third Quarter earning season the Financial Sector as a whole is expected to have the second best earnings growth. Its been a while since weve been able to say that. But i think you start looking at specific banks theyve all been talking about the balancing act between struggling with net interest margins and paying more attention to their costs. Thats where Bank Management is talk. Their outlook for long growth, demand and controlling their costs rather than necessarily and recognizing that costs are going up. I think thats why management has to focus on their costs going forward. We find ourselves looking again at the price of oil for direction on the u. S. Stock market especially yesterday when oil gave up its big gains and stocks followed suit. How do we break out of that. It is were moving to the bottom of the range on oil prices. Our view we think theres a bit more of a range within oil. But oil has continued to be very much a headline dominated market. The focus on will we freeze, wont we freeze, will the parties come to the table, when we look at whats going on in energy weve been paying most attention to companies controlling their costs and you look again energy a very weak contributor to earnings this year and to the Third Quarter and their Capital Spending cycles very weak and the good news is thats a way for companies to get the profitability over time but certainly hangs on things in the shorter term. Have you been concerned about the tick up on bond yields in the last few weeks . The bone yields have been back up certainly when i look to what the fed has been telling us. They are trying to inject more risk, if you will or a little bit more willingness a little more of a desire for bone markets to tighten a little bit and effectively take the pressure off the fed to have to tighten rates in that regard. And that tightening of, i think, Interest Rates has been reflective of improvement in some of the data and i think that supports earnings over time. Finally lets get a call from you. You say you Like Technology which has been a good call. Companies sitting at the intersection of corporate customers and consumer users. What do you mean . Ultimately you can look at technology stocks. Consumer stocks. And the advertising trends that have been moving increasingly from a traditional, very analog world to digital world. That helps advertisers answer the questions the old saw half of my advertising spend cigarette wasted. I dont know which way. As we move digital we have a sense of where our ads are being impactful. Those companies that can control that information Better Direct that attention, play in terms of helping Companies Better stole their consumers and better help consumers find the information they want. Thank you jack caffrey of jpmorgan. That does it for us on Worldwide Exchange. Squawk box is next. 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 AnalysisMaple 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. John stumpf is in the hot seat. Wells fargo ceo heading to capitol hill to be grilled on the banks sales practices. Not every day a six letter name and only one voluntary well. Central banks in focus. Fed and boj beginning two day meetings. With well talk policy expectations. Green light for driverless cars. Transportation department issuing new safety rules that could make you feel more comfortable letting your car drive you around. Its tuesday, september 20th, 2016. Squawk box begins right now. Announcer live from new york where business never sleeps this is squawk box. Good morning, everybody. Welcome to squawk box here on cnbc. Im becky quick along with joe kernen and andrew ross sorkin. Lets check out the u. S. Equity futures at this hour. Yesterday the markets ended essentially flat slightly down even after big gains weve seen on the futures where we looked at tripledigit gains. This morning futures once again indicated higher with the dow up by 67 points above favor value. S p futures up by eight and nasdaq up by close to nine. Overnight in asia, check it out the nikkei was down slightly. These are very slight losses across the board for the hang seng and shanghai composite. Early trading this morning things look better at least for the three major markets. Dax is up by half of a percent