Good morning. A warm welcome to Worldwide Exchange here on cnbc. Im wilfred frost. Im seema mody in for sara eisen today. It is new music friday. Were listening to selena gomez, her new song bad liar. This one i have not heard. I would love to claim i have, but im in the same boat as you. The Global Market picture. We did get a bounce back following that sharp decline on wednesday. We saw a bounce back yesterday. You would have to say it was a relatively tepid bounce back, but it stopped the rot, that severe rot we saw on wrenednesd. Yesterday the nasdaq led the bounce back. The dow up 0. 3 . The s p up by half a percent. It was a bit up and down, and we did close towards the highs of the day and that rally did come towards the end of the day as well. As i said, not resounding bounce from the open through to the close. Tenyear treasury note is moving around. That did go down to 2. 18 in terms of lows. As you see, we moved up in a more riskon fashion since the lows of yesterday to 2. 25 on the tenyear treasury note. Wall streets gains on thursday helping revive spirits around the world. Lets look at asian equities and see how stocks closed over there. The japanese nikkei recovering from the losses we saw on thursday. Still below 20,000, seeing fractional gains of 0. 2 . Hong kong, shanghai also closing in the green. A similar picture when you look at europe. Early trade there. The german dax higher by 0. 3 . If you look at the losses for wednesday to thursday, european stocks as a whole lost as much as 2 . Here we are on friday recouping some of those losses with gains in france, london, italy, spain, as well. A couple data points helping the European Economic story. That doesnt hurt here on friday. Ftse 100 looking to be in positive territory. Germany and france down a percent as a whole. Oil prices gained yesterday. About 1. 4 0. 6 . Up about 1 today. So looking at about 3 or so of gains for the week as a whole for wti crude. Lets look at the dollar. Thats been in the eye of the storm with the Political Developments. We did see a bounce back yesterday in the dollar, only late in trade. Thats a point i bring up in terms of this tepid rebound we saw yesterday. Only when the dollar started rebounding that we didnt see equity markets extend gains. At one point yesterday the dollar was markedly weaker. The euro hit a high of 1. 11. Sterling, 1. 35, and the yen, 111. 50. The dollar down 1. 3 for the week as a whole, over 4 year to date, and giving up all its post election gains. Today were back to the dollar weakness trend, not against the yen but the euro gaining almost a half percent, the pound back above the 1. 30 level. Yen trading at or around sixmonth highs, given the safe haven buy which we have seen pick up on this u. S. Policy uncertainty. Look at gold. A similar story there. Political drama not only in washington, brazil helping gold for yesterday. We did see gold buying. Today down by 2. Trading at 1,250. A quick look at bitcoin to round things off which hit an alltime high breaking through 1,900 had pulled back on some of those cyberattack stories. Ending on a positive note, ending up 2. 45 . As we step back for the week, its important to note, despite that big pull off and luke warm recovery that we saw yesterday, only down 1 for the week as a whole for u. S. Equities. A lot will rest on today. How will that end off the week. If wend the week down end the say we pause for now. Thats a key factor if today is relatively flat or positive, you can step away and say this hasnt been too bad of a week despite ongoing weakness in the dollar. Those two have decoupled. All comes down to today. If the dollar is weak but markets stay flat, thats an encouraging factor. Wednesday really captured the attention on investors. The worst day for stocks in a year or this year. To your point, still about 1 away from those levels that weve been trading at. Aside from washington, brazil has been a big story for us. Lets get you caught up there. Markets plunging in yesterdays session following a deepening political crisis. President michel temer facing calls for his resignation amid allegations of corruption. The bovespa closing down by nearly 9 yesterday. The biggest daily decline since the 2008 financial crisis. Trading was actually at one point halted. The countrys currency also in the eye of the storm. The real posting its biggest decline since january of 1999. What is interesting, if you look at the etf world, the brazilian etf interestingly enough, is heavily traded in the United States. We saw that ticker symbol, ewz, also lost as much as 14 on the day on this concern that that political turbulence is returning to brazil in a big way. Now the president really in the spotlight. Well have to see what happens. The Supreme Court has opened that formal investigation. Well see what they find. Far michel temer refusing to resign. At this point, yes. Not looking at all to resign. Well see what the Supreme Court has to say. President trump heads to saudi arabia today for the start of his first foreign trip as president. The journey will continue with stops in israel and the vatican before he goes on to attend a nato meeting in brussels and a g8 summit in italy. The president s first stop in saudi arabia is crucial as the kingdom looks to align itself with u. S. Interest after years of strained ties under former president obama, who aligned himself with saudi rivals iran. Turning todays wall street agenda, theres no economic data. A few earnings reports to consider including campbells soup, deere and foot locker with results before the opening bell. A pair of fed officials speaking today. St. Louis fed president James Bullard and San Francisco fed president john williams. In the headlines, leon coupermans omega advisers reaching a settlement with the s. E. C. On insider trader claims. Landon dowdy has the story. Reporter the firm has settled with the agency for 4 48 million. The hedge fund has admitted to no wrongdoing and cooperman will not be barred or suspended from the industry. In a statement to cnbc, cooperman says he looks forward to putting the matter behind him. Last september the s. E. C. Accused cooperman of Insider Trading following a fiveyear investigation. The following month he told squawk box he would fight the accusation accusations. Omega was built on doing detailed fundamental research and complying with the law. We could have settled with the s. E. C. For an amount that is far less far less than i donate to charity on an annual basis. But i refuse to do so because i know we acted appropriately and lawfully. It took me 50 years of hard work, very long hours, playing by the rules to get where i am professionally. Im not going to let them basically unfairly destroy my legacy. Reports say terms of the 4 49 million settlement were significantly below what the s. E. C. Wanted. Back over to you. Thank you. Mallinckrodt uses the pharmacys manager for the exclusive distributor for its drug for multiple sclerosis. Yesterday, chanos said the companys use of third parties is questionable. He calls their alliance murky. The Justice Department is investigating several drugmakers over the pricing practices. A spokesman for express scripts calls chanos comments wildly i accurate. Bill ackman says chipotle ceo steve els is outstanding. Ackman who runs pershing square, invested in the chain last year. His praise of els comes after he became chipotles sole ceo after the coceo left the company. Speaking yesterday, ackman says he is poised to go on a great investment run after his bad bet on valeant forced his hedge fund to go back to basics. Valeant contributed to backtoback losses for pershings flagship fund. Well see if this is a comeback year for mr. Ackman. Hes poised to go on a great investment run. Okay. If you say so. Well flood back. Im sure investors are sitting there thinking hes had some winning trades. 2014 he killed it. His fund up 30 a couple bad years. Strikes of desperation a bit that comment. Salesforce. Com reporting better than expected earnings driven by demand for its cloud based sales and marketing software. Heres what marc benioff had to say on millimeter la mad money. Were seeing customer wins, Foreign Exchange going our way. And the culmination of many great quarters coming together to produce amazing numbers. Salesforce shares up about 1. 4 . Gap seeing a surprise rise in quarterly samestore sales. The latest indication that the turnaround plan is gaining traction. Sales have been lifted by Strong Performance in its old navy stores. Up 4 this morning in premarket trade. Shares of ross stores rising. The offprice retailer beating the street and raising its fullyear guidance. Shares are up 1. 4 . A if you retailers bucking the trend. Drug wholesaler mckesson posting higher than expected quarterly profit. The positive results driven by strength in its pharmaceutical, distribution and services business. Shares up 8 . Applied materials reporting Quarterly Results that topped wall street estimates. Also issuing an outlook that exceeded expectations. Autodesk posting a smaller than expected loss. The Software Firm reporting higher sales for its First Quarter. That stock up almost up almost 10 here. A lot of stocks to watch on friday morning. Still ahead on Worldwide Exchange, overseas hot spots protests in venezuela, elections in iran and the president s first trip abroad. A round up of the global events today and a summary of the text se seema just received. The babys room wont build itself. And her paw wont heal on its own. Were all working forward to something. Synchrony financial can help your customers make it happen sooner. So she can plug into her dreams. And theyll have a new addition for their new addition. Whatever youre working forward to, even if its chasing squirrels, Synchrony Financial can help you get there. Good morning. Welcome back to Worldwide Exchange. Happy friday to you. Im wilfred frost, along with seema mody. If youre just waking up a look at futures markets. We are called higher, so we will extend that bounce back following wednesdays sharp declines. About 2 of declines yesterday. We did get a rebound of the dow and the s p up. This would be an important end to the week if we can end in positive territory. At the moment, week to date ahead of the futures gains, were down about 1 for each of these employthree indices. That rebound was tepid overall and only gained steam in the afternoon when we saw the dollar rebound also. At one point the dollar was down sharply, so much so sthat the euro was in the high 111s. The pound at 135. 0. So we are seeing dollar weakness. But late yesterday we did see some Dollar Strength. That Dollar Strength did help the market rebound as well. Whats encouraging this morning is despite the dollar weakness were seeing today, futures are in positive territory. It will be interesting to see how it ends up. At the moment, euro 1. 115 and pound 1. 30. Polls opening for the iranian president ial elections where Hassan Rouhani is seeking a second term this is the first vote since the landmark nuclear deal that the United States reached with iran in 2015. Its seen as a tight race between president rouhani and his more conservative challenger, ebrahim raisi. Raisi as a hard liner and a harsh critic of the nuclear deal saying its not paying off the economic dividends to iran and a country still suffering from high unemployment. Higher than 11 . Youth unemployment also very high. So, raisi saying the nuclear deal not helping us. Maybe we should look to see whether we should continue to hold on to that that would have larger consequences for all of us in the west. So the bigger Market Impact is the surprise result of rouhani losing. Exactly. Raisi winning, that nuclear deal being taken off the table and iran coming off the International Energy market. Oil prices could rise. Unrest continues in venezuela. Security forces using tear gas and water canons to try to stop thousands of antigolf prompt testers. More than 40 people have been killed in the demonstrations. Venezuelans are fighting over Food Shortages and nicolas maduros government. The u. S. Has imposed sanctions on venezuelas Supreme Court judges for seizing powers from opposition led Congress Earlier this year. To President Trump embarking on hits first foreign trip as president today. His journey starts in saudi arabia. The stakes are high for the visit which comes at the end of what could be one of the most tumultuous weeks since trump took office. Joining us now is peter siegel news editor of the financial times. Good to see you. What are you expecting from trumps visit to saudi arabia . Well have some rhetoric and deal making apparently. We have him showing up, promised to give a speech in saudi about the role of islam in geopolitics, which people are nervous about, given his past rhetoric on islam. Hes threatening to come with a big arms deal. I think were seeing in both things is an attempt to make a clean break from the obama administration. He is starting in saudi, going to israel. These are two countries, two traditional American Allies that sort of were rubbed the wrong way by the obama administration. The obama and netanyahu relationship was tough. So youre seeing trump trying to return to a classic Republican Alliance within the middle east, shunning iran. But there will be some dealmaking there as well. Were keeping an eye on this lucky martin arms deal that he is supposedly bringing with him. Peter, as you mentioned, theres the saudis are keen to welcome President Trump, given their frictions with the previous u. S. Administration under president obama. Does that mean this could be an easy win for trump to emerge with victories, diplomatic rhetoric or hard business deals . Will that play well back home for him or is that not enough . Its dangerous to predict anything trumpian. To harken back to nixon. In the tail end of the watergate scandal, nixon liked to do abroad, do meetings abroad. It made him look president ial. It plays well domestically, even with a country like saudi arabia, people tend to rally arock the flag. This does play well back home. He will get a lot of questions about jim comey, about the russian scandal. It will be difficult to overcome, even though in theory hes coming with good news. The other one is can he stay on script . This islam speech hes giving will be closely watched to the one obama gave in cairo eight years ago. Can he restrain himself from being trumpian when he talks about islam. Thats something there is the chance, if he stays on script and moves forward in a president ial way, that he could score some points, much needed for him back home this is donald trump. We never know what to expect. He could easily go off script and change the dynamic yet again. Peter, some people expressing surprise that, of course, saudi arabia is the very first foreign trip that hes making. Also a bit of surprise that the vatican appears so high up on that list of the trips hes making. Why is the vatican there . What are people making of it in europe . Is odd. Traditional first trip is to canada the closest ally. Oddly he has picked fights with the canadians on trade in particular, on immigration. So, surprisesurprise, canadianamerican relations are at a tense point. It is odd that he picked saudi, israel and the vatican. But i think i covered myself when i was in washington three different transitions, youve seen almost every time, clinton to bush, bush to obama, you see a desire to break from the previous and Trump Administration regardless of what they were doing tsh, it mue wrong. On saudi, trying to mend relations there. The vatican thing, this is a traditional american electoral constituency in big states. The states where he needed to win, ohio, michigan, wisconsin, big, catholic american, irishamerican, italianmiamerin states. This plays to the domestic constituency. Its a traditional stop. He had some interesting things to say about the Catholic Church in the past. This is retail american politics. The vatican is good politics back home in the u. S. The catholic voed in the mte int is strong. Peter, thank you very much. Peter spiegel of the financial times. Still ahead on Worldwide Exchange, facebook scoring a deal with the mlb. Why the partnership could be a game changer. Details on that coming up on Worldwide Exchange. Their leadership is instinctive. Theyre experts in things you havent heard of. Researchers of technologies that one day you will. Some call them the best of the best. Some call them veterans. We call them our team. With e trade you see things your way. You have access to the right information at the right moment. And when you filter out the noise, its easy to turn your vision into action. Its your trade. E trade. Welcome back. President trump making his first overseas trip as president this weekend. Before he takes off he plight get might get a new director of the fbi announced. Edward lawrence joins us. Well have to wait and see on the fbi director. But hes taking a nineday fivecity overseas trip. Hes hoping that will grab some headlines and leave the investigations behind. Reporter standing next to the president of colombia, President Trump answered questions about the evolving russian investigation, and the decision to appoint former fbi director Robert Mueller as special counsel. I respect the move, but the entire thing has been a witch hunt. Theres no collusion between certainly myself and my campaign. But i can always speak for myself and the russians. Zero. Reporter the president again denying he asked former fbi director james comey to end the investigation into former National Security adviser Michael Flynn before firing comey. No. No. Next question. Reporter questions still remain on the motive. Deputy attorney general Rod Rosenstein briefed the senate on the investigation hinting the president knew what he wanted before comeys dismissal. He knew that comey would be removed prior to him writing his memo. Reporter rosenstein briefs the house today on the russian probe. Clearly russia was involved in trying to undermine Public Confidence in our elections. Reporter President Trump met with former senator joe lieberman. Background and expertise in criminal justice. Reporter democrats ruling out candidates with political backgrounds. Some republicans saying the former democratic senator turned independent would be a good fit. The president says he is close to a decision on who the new fbi director could be. Announcing that possibly before he gets on air force one today. Edward, thank you for that. Despite it being a press conference with another fellow president , the focus, of course, very much on the russia issue. If President Trump thinks the next nineday trip will mean he can escape that in full, hes clearly mistaken. The International Media will be out to ask the same questions. Well all be reading the International Tea leaves. He tends to take the bait as he did yesterday. Coming up, the top stories and a round up of the Global Markets. And a record breaking auction. Well tell you how much this piece went for last night and how the sale made history. How much would pay for that . 16r7b8g9s 100 million. Really . No, kidding. These birds once affected by oil are heading back home. Thanks to dawn, rescue workers only trust dawn, because its tough on grease yet gentle. I am home, i am home, i am home Global Marketing rebounding. Well get you ready for the final trading day of the week. And the first foreign trip for President Trump, he heads to saudi arabia to kick off a crucial week abroad. And mark suzuckerbergs dad posting a throwback clip, and its going viral. Its may 19, 2017, and youre watching Worldwide Exchange on cnbc. Good morning. Warm friday morning welcome to Worldwide Exchange on cnbc. Im wilfred frost. Im seema mody in for sara eisen today. Good morning. Great to see you. Its new music friday on Worldwide Exchange, were starting off with the latest from Machine Gun Kelly and halley steinfeld. I like it. Lets get straight to the Global Market picture. Yesterday we rebounded after that selloff on friday. Nasdaq led the market lower on wednesday and thursday. It led it higher. 0. 7 of gains for the nasdaq. 0. 3 for the s p and the dow. As we stand ahead of these premarket moves, looking at 1 of declines for each of the three major indices. Today expected to bounce back. The dow called higher by 48 points. S p 7. The nasdaq around about 19. Positivity around the rest of the world following those gains yesterday on wall street. Albei it, its been a soft week as well in other parts of the world. Asian trade for you, first up this morning is coming here. And we are higher by 0. 2 in japan. Fractional gains in hong kong and shanghai. European trade is positive today. Were still looking at a percent of declines for the week for the likes of germany and france. Ftse 100 just about in positive s territory. Lets look at broader markets, starting with oil. Its been a positive week for oil after we got news earlier this week of a russia saudi arabia announcement of continuing the opec Production Cut for nine months in the First Quarter of 2018. That rally continues. The international gauge of oil, brent, 53. 22. Up 1. 3 here. Wti crude back above 50, a level thats been a key resistance level. Right now spot on at 50. Nat gas higher as well. A very interesting move in the bond market. The rise and risk averg sesion sending people into bonds. Here we are trading at 2. 25 on the tenyear note. Again, the tenyear did hit 2. 18 on wednesday. And currencies have been a very big talker. The weakness in the dollar against a basket of currencies, specifically the yen and the euro here today. Were still seeing the u. S. Dollar higher against the yen. But the euro holding on to 1. 11 against the u. S. Dollar. Positive commentary from ecb Board Members around the eurozone recovery and also that Political Drama in washington, pushing the euro higher. Pound at 1. 30 now against the u. S. Dollar. Interesting to see the rebound there and what it means for the uk multinationals for a while who had not been doing well because of the weakness in the currency. A quick look at gold. Gold trading at a fourmonth high, today slightly lower by 2. Still up 2 for the week gold prices. The key today, we see a soft dollar, but futures are higher. Clearly on wednesday lower dollar and we saw markets move alongside. Yesterday we saw a dollar rebound. We saw equities rebound. Today, despite the dollar being down, we have got futures higher. That would be an encouraging sign for markets if we did see a positive close today, only about a percent or less than a percent of declines for the week even when the dollar is slipping once again as it is this morning. An important sign that is encouraging for the markets and going back to the belief that corporate earnings are Strong Enough to offset other moves. But not resounding enough to say that fall is over. As we keep a close eye on washington, another political Crisis Brewing in brazil. Markets there plunging in yesterdays session following a deepening political crisis. President michel temer facing calls for his resignation amid allegations of corruption. The bovespa, the brazilian stock market closing down by nearly 9 yesterday. The biggest daily decline since the 2008 financial crisis. Trading at one point was halted. Look at the real posting the biggest decline since january of 1999. 3. 36. Big moves in brazilian assets. Concerns that that political turbulence is returning to brazil. Supreme court launched that formal investigation into the president. Well see what they find. Turning to the agenda, no economic data. Still a few earnings reports to consider. Campbells soup, deere and foot locker with results before the opening bell. A pair of fed officials speaking today. St. Louis fed president James Bullard and San Francisco fed president john williams. Leon coopermans omega advisers setting with the s. E. C. For 4 4. 9 million over Insider Trading charges. The hedge fund has admitted to no wrongdoing and cooperman will not be barred or suspended from the industry. In a statement to cnbc, cooperman says he looks forward to putting the matter behind him. Last september the s. E. C. Accused cooperman of Insider Trading following a fiveyear investigation. Reports say terms of the 4 4. 9 million settlement were significantly below what the s. E. C. Wanted. Bank of america Ceo Brian Moynihan opening up the discussion on lowering down payments on mortgages. On closing bell yesterday, he said banks could supply a bigger share of funding if the standard down payment of buyers was cut 10 from 20 . Wouldnt introduce that much risk but would help a lot of mortgages get done. If you look at the statistics, the difference between 80 and 90 ltv is not much different as it is between 95 and 90. Thats when you start to see real differences in performance statistics. We dont want to have people borrow money that they have trouble repaying what would that do . Move the cycle up. Not in new york city, condo, instead of 20,000, its 10,000, on a 40,000, 50,000 income, think of how fast it coming. Great interview yesterday with brian moynihan. The other takeaway is that sense of relief you saw from him which im sure other ceos like him were seeing after the comments from Steve Mnuchin making it clear they dont want to break up the investment arms of the banks. Nobody was expecting it but there was a 20 , 30 possibility in peoples minds. Mnuchins comments yesterday positive for the broader banks. Jamey dimon, Lloyd Blankfein are all ready to more more to use, whether its back to Share Holders or investors, just waiting for regulateders to free that up. Another positive tone, sentiment, relaxed sentiment from a bank ceo. Bank stocks turned just negative, the financial sector, earlier this week for the year as a whole. Only three sectors in the negative territory, interesting that banks were one of them. I like kelly evans questions about millennials and avocado toast. Also very important. Switching to apple. Tim cook spotted at the afteral campus testing out a device attached to his weiss. He was wearing a glucose tracker which could make the device a musthave for diabetes survivors. He has a Team Dedicated to the holy grail for the disease and Glucose Monitoring if that happened a big upgrade for the apple watch. To sports. Facebook wants to take you to the ball game. It struck a deal with Major League Baseball to stream 20 friday night games this season. Starting with tonights matchup between the Colorado Rockies and cincinnati reds. The game will air to free. Facebook will piggyback on the local broadcast. The nature of watching baseball is a perfect fit for the platform. Another big sign that these online players, be it facebook or apple tv, twitter, google, they are moving into the live sports arena and just heating up the costs for this type of live content. Weve seen it in the drama stakes with netflix and amazon prime. Live sports now in their target zone. Sign of the times. It is time for our trending stories. Here we go. Viral video alert. Mark zuckerberg sharing a home video taken by his father of the moment when he learned he got into harvard back in 2002. There is an email from harvard. Is that correct . Yes. All right. You want me to open this . I dont know. Does that sound like it . What does it say . Wait. I i cant see it. Man. Yea. What . I got accepted. You are serious . Yeah. All right yes great we are now focussing on the newest or one of the newest members of harvards class of 2006. Great to see that. The context of this is hes going back to receive an Honorary Degree this weekend and to give a commencement speech. Awesome to see back in the day. He didnt finish his actual it is a humbling moment for these tech geniuses like zuckerberg and bezos. I have to say two things. Looks a bit staged. Staged . He happened to be there recording as he opened the email . I think he already opened it. Its not like opening a letter. Either way, a very still lovely to see. Dont know how old he was about. He was about to go to college. He still sleeps in a bunk bed. That happens. What is that about . Its like he was six. Congratulations to him. Hell get a degree this weekend, having one of the most famous successful dropouts ever. Harry stiles wrapping up a weeklong residency on the late late show with an epic installment of car karaoke. Singing a few of harrys new songs. The pair making waves on social media for performing a scene from the classic romantic comedy noting hill. I can see you being a romantic lead . Yeah . Ill give you some lines now. Okay. Youre julia robert. Im hugh grant. Why am i Julia Roberts . Youre doing the line. Im always Julia Roberts. Im saying i i god. I strange thing, i fear in my heart wouldnt uh uh im just a girl. Standing in front of a boy. Asking him to love her. That was good. I really love that moment. I also like to see how that moment or from the original. The original, knotting hill is one of my favorite movies. To see how this show has evolved. In the beginning we saw mariah carey lipsyncing or singing along to old favorites. That was enough for entertainment. Now the show has evolved, you find these singers doing much more, going above and beyond. Madonna dancing in her seat. Harry harry styles reciting lines. Harry styles, not only just released a single album by all accounts doing well, but becoming an actor. In the new epic dunkirk. Not a huge role, as i understand it, but still his star is set to rise further. A 1982 painting by Jean Michel Basquiat selling for a record you said 100. You were right. Did you know that already. I did my research. 110. 5 million yesterday at sothebys. It is the six most expensive work sold at auction. A noted japanese collector scored the painting after a tenminute bidding war. He took to instagram saying when i first encountered this painting i was struck by so much excitement and gratitude for my love of artwork. Good for him. Ten other works have broken the 100 million mark, picasso, that puts him in the league of picasso. Coming up, the must reads. The opinion pages weighing in on the president s first Upcoming Trip abroad. Stay tuned. Well get those to you. Youre watching Worldwide Exchange on cnbc. Welcome back to Worldwide Exchange. Time for our mustread stories. My pick is in the wall street journal titled trump goes to saudi arabia. Both the prince, the crown prince, and the president seek success to bolster their leadership. Easier to achieve in diplomacy than domestic affairs. Mr. Trump is guaranteed a win at least with the saudis because he isnt barack obama. The president has further pleased riyadh by making this his first stop on his first foreign trip. No president ever put saudi arabia first so visibly. As we have been discussing, this is an opportunity for him to try and change the tone of conversation, the content of conversation. There are some easy wins. That said there are some potential potholes and foreign media will be just as focused on this russia saga. Im sure the press conferences will lay some traps for him to fall into. He is making a speech on islam, the religion. It will be interesting to see what he says there. His remarks in the past have been controversial. Well watch his first foreign trip. Were approaching the top of the hour. The team is getting ready for squawk box. Kelly evans is joining us from new york with a look at whats coming up. Good morning. We have a lot on tap. The guest im most excited about, from 7 00 to 9 00, wilfred frost will join us on set. Not guest, just cohost. I hope youre ready. Youre not allowed to grill me for two hours. That could be a worrying revealing couple of hours. Well talk about whats happening in brazil. We have a bunch of different topics. You guys mentioned the president s foreign trip. We will speak with the Carlisle Group coo. Just hit this market from all angles. Continue to wait and see how much more we get out of washington. Kelly, great stuff. We look forward to it busy show ahead on squawk box. That comes up in about ten minutes time. Coming up on Worldwide Exchange, Michelle Girard, chief u. S. Economist at Natwest Market also help us tie a bow on the markets for a week. Thats next on Worldwide Exchange. Ready or not, here i come. Ek. anyone can dream. Making it a reality is the hard part. Northrop grumman command and control systems always let you see the complete picture. And were looking for a few dreamers to join us. Looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Welcome back to Worldwide Exchange. Im wilfred frost along with seema mody. Futures at this hour called higher, 40 points or so for the dow. With us is Michelle Girard from Natwest Markets. Good morning to you. Good morning. Thank you for joining us. How important is it that we round off this week without further declines . I tell you, it would be encouraging. Whats unsettling is the volatility in the marketplace. Then it has a tendency to feed on itself. Then everybody brings it back around in terms of does the volatility in the markets turn into something more fundamental in nature . Does it undermine confidence. Does that feed into economic slowing. Its raised all sorts of questions about what well be doing for the fed if we can find our footing, if this ends up to be just sort of shortterm volatility, we can quickly stabilize, move forward. One eye on washington. The other on wall street. Do you think the recent burst of risk aversion, does that negate the bullish narrative that were seeing play out in earnings season . I dont in general, i dont think anything weve seen to date changes the very positive fundamental backdrop. We have an economy on solid footing. Yes, the First Quarter was soft. Though weve sort of gotten soft to First Quarters being soft. Weve seen i thought in that First Quarter weakness, we saw great rebound in business investment. Even with all the fiscal uncertainty through the First Quarter. Some of the skepticism, maybe we dont get as much done on the fiscal agenda as we had hoped. Business were engaged. We saw a rebound in capital spending. We see still high confidence levels, both on the part of businesses and consumers. I think most people, myself included, look for rebounds. The fundamental back drop is positive. What do the last two weeks of Political Developments do to a rate hike next month . Its hurt sentiment, but at the same time the weaker dollar gives the fed more room. Thats become the question. In terms of what does all of this volatility mean for the fed. In 2015 and 2016, of course market volatility spooked the fed and had them doing less in terms of rate likes than they signaled at the start of each of those years. I dont think the picture at this point changes. We saw yesterday Bank President mester saying the fed has to look through shortterm volatility. I think the fed will stay with the fundabilitial back drop and not change at this point. If this proves to be something that doesnt turn into we find stable footing in the markets. I think the fed will stay the course because as i talked about the fundamentals, their strong. You have full employment, inflation numbers. The low, i think in an environment with wages moving higher, the fed feeling confident that theyll get to 2 . It all bodes for continuing on course. The fed has taken into account the policies proposed by trump and the white house. If those policies dont come into tact in 2017, how does that affect Monetary Policy . Rates dont rise . Some fed members have taken the potential for fiscal stimulus into account. Others said they would wait to see what actually happened before they did. Their expectation for raising rates was based on a scenario where the economy is only growing about 2. 25 . Thats different now and 15 and 16 is the things you are talking about we were coming into a period where Financial Condition were already hyped. Financial conditions are easier now. When we consider that, and better inflation in the uk, stronger picture in europe, japanese gdp really strong, are markets a bit complacent about the amount of monetary stimulus that could be taken out . I believe so. This gets back to the market has been rewarded by betting against the fed. The fed wont do what they tell us theyll do. They are underpricing how much the fed has delivered. As you pointed out, the economic global back drop is much different than it was in 15 and 16. Financial conditions, the dollar is not docing some of the fed work it did for them in 15 and 16. Unemployment is low. The hurdle for the fed doing less than the three or four rate hikes than they signalled in 17, the hurdle for them to deviate from that and do legssss much higher now than two years ago. Michelle girard, thank you for joining us. About ten seconds left toranian weekend . And brazilian bovespa. Squawk box is next. Thanks for loading, sweetie. Oh, burnton gravy . Gotta rinse that. Nope. No way. Nada. Really . Dish issues . Throw it all in. New cascade platinum powers through. Even burnton gravy. Nice. Cascade. The shlike a bald penguin. How do i look . [ laughing ] show me the Billboard Music awards. Show me top artist. Show me the top hot 100 artist. They give awards for being hot and 100 years old . Well take 2 [ laughing ] xfinity x1 gives you exclusive access to the best of the Billboard Music awards just by using your voice. The Billboard Music awards. Sunday, may 21st eight seven central only on abc. Good morning. A bounce back yesterday and this morning. Global stocks rising today as investors wrap up a wild week of trading. Happening now, trump prepares to embark on his first foreign trip as commander in chief. And going, going gone. A painting sets a new record for a u. S. Artist at auction. The price tag nearly 1 111 million it million. Its friday, may 19, 2017, squawk box begins right now. Live from new york where business never sleeps, this is squawk box. I could have made this song. So unfair. Welcome to squawk box on cnbc live from the Nasdaq Market site in times square. Im kelly evans along with joe kernen, andrew and becky are off today. Lets check on the markets first. We had a rebound nicely yesterday after that deep selloff the preceding day. It looks like were headed in that direction. The dow implied to open higher by 30 points. S p up 6, flaz dnasdaq up 16. Asia, europe, were not seeing brazil up there. The nikkei. Quiet across asia. Shanghai barely higher. Hang seng and nikkei up less than