vimarsana.com

Transcripts For CNBC Worldwide Exchange 20140703

Card image cap

Expanding in spain and italy in june. Nicolas sarkozy denies all wrongdoing as he takes to national tv to defend himself against allegations of corruption. And setting the record straight, volkswagen denies reports it will launch a takeover pick for paccar. Announcer youre watching Worldwide Exchange, bringing you Business News from around the globe. Well, a warm welcome again to thursdays Worldwide Exchange. You can see the heat map behind me. A bit of a difference to what weve seen for the last few mornings. A bid to the upside taking the stoxx europe 600 up around 0. 25 this morning. We had a relatively unchanged u. S. Market. They did manage to make new record highs for the dow and the s p yesterday. Adp coming in stronger than expected, the second highest since the beginning of 2011. It is a bit of a catch if you look at the payrolls on average. Gains across the board, as i was mentioning there. 0. 4 for the likes of the french and the german markets. The ftse mib now up around 0. 7 . Lets take a look at some of the top stocks today and the performers that were watching uk Infrastructure Group about the warning of a 35 Million Pound profit shortfall. The company has plamed weaker trading at its mechanical and Electrical Engineering conditions. The European Commission approving vodafones 7. 2 billion acquisition of spains largest tablemaker this time without conditions as they mark a greater drive towards consolidation. We were talking about telefonica and e dplus yesterday. Poundland rising 18 in the First Quarter and the company issuing a confident outlook for the rest of the year. The underlying adjusted eps, if you want to know those numbers, rising 25 . Lets take a look at the bond markets this morning. Interesting to see what happened in the u. S. Tenyear yesterday. Six basis points higher in terms of the yield in the trading session. You have to wonder about expectations for the bond markets. 1. 6 , they expect this yield by yearend, bringing that significantly lower from 2. 25 . Quick check on the Foreign Exchange markets. Quickly now, we have the dollar seeing a bit of a drop yesterday after the adp data. Similar story today. I think suspended for euro dollar as we head towards mario draghi. Will he seen on further strength of the euro. Pmi expected to ease a little bit. But after the surprise we got on the manufacturing data this week, you have to wonder whether that could surprise to the upside, too. Lets get a check in on whats going on in the Asian Session this morning. I guess you have to expect ecb, payrolls keeping investors there, poised and ready for action, sri. Take us through that China Services pmi number. 15month highs . Absolutely. This is a very strong number at the official levels of the sector. So it really tells you two things. Primarily we are starting to see some stabilization after the slowdown in the worlds second largest economy. Probably the impact of all the cumulative targeted easing that weve seen over the past couple of months. Now, the second point is that, clearly, the chinese economy is now rebalancing in favor of more consumerled, more private internal demand. So remember this dynamic, this transition where the chinese economy is rebalancing a moving away from exportled investment led growth towards the consumer. Now, in terms of whether theres going to be any further stimulus, there probably will be, but it will be policy tuning in the first half this year. On the whole, the markets like this data. The Chinese Market ended at around 2016. Not a great deal of activity or conviction throughout the asian markets. As we said, julia, a lot of these indices are in a Holding Pattern until we get clarity over the u. S. Jobs market and close to home where you are. The ecb policy direction. There wasnt a great deal of interest in the indian market today and thats because of what was happening with the exchange operator, the bsc, trading had been disrupted for about three hours across the major markets that the bse operates because of some connectivity issues. It was a network issue. This is quite singularly large disruption. As i said, a couple of hours along until this problem was fixed. But if you put any trades on earlier on in the morning when the market was functioning, then those trades were canceled as a result of this outage. But things are back to normal now, trading has resumed after that network outage. All in all, very cautious session here as we watch and wait for clarity over what the payrolls will reveal and the ecb, julia. Back to you now. Now, on todays show, as Independence Day nears, Many Americans are gearing up for their annual barbecue. We find out why meat prices are becoming hard to swallow. But not everyone will get their grill out tomorrow as storm clouds gather from Tropical Storm arthur which could turn into a hurricane. Well get you the latest on that, too. And finally, fields of gold, the chinese want to trying to steal corn technology. All that and more coming up on Worldwide Exchange. We have had some breaking data out of the eurozone this morning. Already the Services Sector expand in countries like italy and spain. Italy hitting the highest level since 2010. But a different picture on the german and the french front. Growth slowing in germany. While there was an actual contraction in france. The ecb became the first Major Central Bank in the world to take the first in negative territory. Mario draghi said there were more extraordinary policies to come. We think its a significant package. Are we finished . The answer is no. We arent finished here. If we live within our mandate, we arent finished here. Geoff and annette are in frankfurt. Guys, once the dust settled on the meeting, there were still a lot of questions being asked in the market. The first one, people are unsure how long the rates could stay on hold. It could be until 2018 given the fixed rates. And also unsure of direct policy to boost lending. Can you give us some clarity today on both those points . Well, i think at this meeting mr. Draghi is not going to give us any new policy announcements, but maybe he will attempt to encourage the market to think in even longer terms about the duration of very easy money. So rates lower for longer. And those have been the noises that weve had sort of unofficially from the ecb over the last month or so. We have a framework for the teltros. They wont really kick in until september. So that additional liquidity wont come until september. On the rates story, are you hearing anything different . No, not at all. I think there was a growing sense of frustration after the last meeting that the market actually didnt understand what draghi meant with how long rates were kept at very low level. And then he stepped out on june 21 saying that rates can well be linked to that fouryear period. So we are ending up in the year 2018, as you were mentioning, as well. So we might get a little bit more clarity on that diration. That could weigh on the Euro Exchange rate. You came into us talking about some of this services data. I suppose my question would you, and to annette, as well, here, if the German Economy is starting to show some signs of slowing down here, we know france is difficult, but if germany is showing some signs of slowing, and that seems to be what that latest Services Number suggests, does that mean the germans become more interested in an asset backed Securitization Program that the finance minister is prepared to give the ecb the opportunity to go out and launch proper qe . The ecb is independent, of course, but i just came back from berlin. It seems to be totally on the distance side of things. But hes saying liquidity is too sample in the market and that he was to reduce that liquidity, not to increase it. And at the same time also we have mr. Weidman stepping out famously in a speech recently saying that he doesnt think that its the right job for the ecb to intervene in the market. Guys, never mind whether or not its the ecbs job. That included the uk. Even if he does decide to intervene in the s p market, its not a is it . Well, its mon at aetary pol stance. This is not the job of the ecb and that will whether they will actually revise the program backed by s e loans, it will not spur inflation. Inflation will only kick in once the economic recovery will come. Yeah. And look, all this liquidity thats been sloshing around in the eurozone from the ltro programs originally doesnt seem to be touching the sides. If you look at the declean in the eurozone, it was until security. All of this is having a real effect on the economy. It seems to me that is a major problem here. How these low rates might cause inflation and such, nothing is happening here. You see some pick up in the spanish manufacturing numbers, but elsewhere it is patchy around the eurozone. So mr. Draghi still has a big credibility issue i think with a lot of whats being done here at the ecb. Is it working . Yeah. The big question is also whether these will work themselves into the real economy at an acceptable rate for the small and medium sized . Lets send it back to you, julia, on that. I think mario draghi has been clever trying to putt pull these teltros back to only november. But its been another six months before he talked about it and weve seen any kind of benefit. Guys, well come back to you later in the show. Be sure to tune in for our special coverage. In the next minute, some of those questions will be asked. Ill be asked what lines of communication exist between Small Enterprises and policymakers. Is it about supply or is it about demand . Now allen joins me on set. You were listening into that discussion. What are your thoughts right now . Well, personally, i think mr. Draghi basically says whatever it takes rather than does whatever it takes and sooner or later, the market, as they always do, seem to lose patients. What he was saying is the euro is unchanged. Yes, weve seen a collapse in interbank rates, but were starting to question even the point that i made, too, suggesting annette the fixed rate teltros being pushed out to 2014. Is it credible to say rates are going to be on hold until that point . Theyre still incredibly bullish on european stocks and european equities. Everybody is bear market china. Sooner or later, theyll say, actually, what is happening . Well come back to this. Meanwhile, u. S. Hiring is expecting be strong for a fifth month in june. Forecasts call for an increase in 215,000 in nonfarm payrolls. That is 217,000 in may. Unemployment is expected to hold steady at 6. 3 for the Third Straight month. All week on cnbc, weve been asking our guests about their predictions on those allimportant jobs numbers. When you look at jobs numbers, thats really, really strong and its been slow and steady. But i think its gaining some steam. I think the credit expansion is showing that. I think well see that reflection in q2 numbers. Im going to go for 255. Im quite optimistic. I think the numbers are too low. Its too backward looking. Its too much rearview mirror. I think theyre impacted by the volatility, by the noise weve seen by the downgrade to First Quarter gdp growth. But looking at the survey evidence, they show an acceleration in confidence which i think is something that goes along with increased hiring. I would think just about any number, unless its a negative number, will be viewed okay and that the future looks a little brighter. Mean wile, Federal Reserve chairman janet yellen has assured the central bank will want raise rates despite asset bubbles. Yellen said she favors relying on regulation and supervision to tackle risks in the financial system. Monetary policy faces significant limitations as a tool to promote Financial Stability. Its effect on vulnerabilities such as Security Transformation rpt well understoare not well understood. Efforts to promote Financial Stability through adjustments in Interest Rates would increase the volatility of inflation and employment. U. S. Stocks managed another record close as far as the dow and the s p markets are concerned despite relatively changes. 0. 2 higher in those two markets. Weve got yellen talking about policy but doesnt cut to the heart of the issue which is in the u. S. Theres artificially low Interest Rates. Yes. It was interesting she mentioned high yield bonds. There has to be a close into high yield bonds over the last year or so. And if you look at whats happened to the yields, the prelims of those bonds is now down to 3 from being close to 20 three or four years ago. That is fine, isnt it . What weve seen is this chase to the yield, weve pushed people further and further down the quality curve effectively to the point where theyre investing in unrated assets right now. In particular, my fear is its what happened when we do get a concrete time for rates to rise . Investors try and capitulate and the market cant absorb it for volatility more than anything. I saw recently in the uk that some of the large he funds call themselves Strategic Bond funds. So you as an investors dont know what its going to be holding. What is the liquidity of those high yield bonds in those funds . There are massive issues. Particularly these in the uk of 12 00 liquidity. Do you think by smoothing forward guidance, by smoothing the information they give as far as ultimately rate rises come that exit can be smooth or do you think were heading for a pretty big crunch for both of those . Well, at least weve had a kind of test of last year whats happened. So in a way when it does happen, the market has been expecting it and it will be one. But you still cant underestimate how in particularly in those lower rated bonds, i think earlier in this program, people talked about tourist investors. And those tourists tend to go home at some point. When they go home, theres no liquidity and what is going to happen. Dow jones are forecasting an extra 215 jobs in june. Whats your guess for todays jobs numbers . Are you feeling bullish or are you feeling bearish . We want you to join in the conversation here on Worldwide Exchange. Get in touch with us by emailed, worldwide cnbc. Com or by twitter, cnbcwex or direct to me. Were asking could Hurricane Force winds interrupt americas Birthday Party . Stay tuned. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Small and medium sized businesses across europe need a reminder on why its so crucial for europe. Mario draghi and the team are trying to set the foundation for more actively addressing the lack of Small Business credit throughout europe more broadly. Thats going to require measures like purchase the small Medium Enterprise loeps and some securitization. It helps situations that the yield is very high. It helps in the situation in the european economy. However, it is still, as i mentioned before, the small and Medium Sized Enterprises that dont get the same help. We would like to extend the help to the smaller economies. The two positive programs they could put in effect, one would be an ltro. Another is to find a way to securityize small and medium sized lending. Theyve been working on that and the question is whether theyll be able to do it. Patrick libble joins me now on the phone for liverpool. Patrick, thank you for joining us. Mario draghi accepts that theres still a problem as far as financing is concerned. But he does say the situation is improving. Is it . Well, theres two things. Since the financial crisis, weve seen that the negotiations that were held in basul 3 have resulted in the Capital Requirements directive and an amendment to it, which is known as crd 4. And basically banks are required to attain more capital, which naturally affects bank lending behavior. Recently, banks have made claims that theyre, in fact, Offering Bank loans but that there is a lack of demand. Thats not really a fair statement. Yes, bank loans are available to such an extent that its not feasible. On top of that, banks are asking for collateral even if the banks are financially stable and owns assets. So we dont see a very strong improvement in bank lending at all. So right now, youre saying the banks are making unfair demands on what are actually very Viable Companies and growing concerns right now . What more do you think the central bank can do here . Well, there is a development at the European Commission level or European Union level in general, which is rather worrying. The commission is entirely focused on equity financing, Venture Capital in particular. And it seems as though Venture Capital is the answer to everything. Venture capitalists are looking for companies with high risk and high return and most Small Businesses dont fit that profile. Therefore, theyre not eligible for Venture Capital. The first source of financing is still the Old Fashioned bank loan. So what we would like to see is for the eu to stimulate bank lending. Does that mean it has to be done at the National Level surely and not at the ecb level . Well, i think at eu level that could also be a stimulation of Loan Guarantee schemes. For instance, by subsidies. Obviously, in the end, theres plenty to do. There was an article in the sc talking about delays in terms of details regarding the possible Securitization Program and acrobat securities. Does that give you further worry that basically nothing will change . Well, thats always a worry we have. These processes take a long time, especially if they have to go through the procedure. It can take years. So there is always a worry that this doesnt happen. Patrick, are officials having conversations with you to understand the difficulties right now . What kind of dialogue is there . Well, the ecb itself, we dont have a lot of dialogue with them. The eu institutions, most certainly. We are well established organization and that means that they include us in very early stages of decision making. We have discussions with them about ideas of future legislation. Basically, were 234068d in the stages that proceed the green papers, even. And then i have to say that the commission does consult us through the process. But there is also the European Parliament and often times the European Commission has a good idea, a solid proposal, but it becomes amended so heavily in the European Parliament that not much is left of it. Absolutely, its not acti actionable. I want that. Now, in corporate news, volkswagen has denied reports its eyeing a bid for u. S. Truckmaker paccar. The head of daimlers Truck Division made comments late wednesday, saying multiple sources have said volkswagen will make the move next year. Shares are trading higher in frankfurt trade. Now, we are waiting for the uk services pmi data out this morning, the forecast at 58. 4 and its come in at 57. 7. So actually, a significant weaker than expectations. Expectations are actually a slight pullback, 58. 2. Just in line with what weve seen in previous months. Socgen saying this morning that the expected contraction is to be more in line with what were seeing in the Services Secretary either of the uk. But thats significantly weaker right now. Were seeing sterling around 20 pits lower, so a such lower, sterling, as a result of that slightly weaker services pmi data than expected this morning. Stay tuned. Well be getting a taste of what its like to operate in the services center. Kent bowen is coming up in around ten minutes time. A Chinese National gets popped by the cops. Plucking to steal u. S. Corn feed technology. All the details, up next. Jobs thursday is here. A strong reading expected as wall street locks in another record close. Business fed chair janet yellen holds firm on low rates saying shell not tackle rising asset prices through monetary policy. Monetary policy faces significant limitations as a tool to promote Financial Stability. Out on the periphery eurozone will give a boost to mario draghi. The Services Sector expanding in spain and italy in june. Nicolas sarkozy denies all wrongdoing as he defends himself against corruption charges. And setting the record straight, volkswagen denies reports it will launch a takeover bid for u. S. Truckmaker paccar. The european markets this morning holding in positive territory across the board around 0. 3 gains as we wait for discussions from mario draghi. That is one of the things were going to be watching out for as we move across the session. Weve got payrolls friday. Thursday today, as i just mentioned there, too. The dollar was bid after those surprising numbers in the market. Euro dollar Holding Steady, 1. 3660 the level right now as we wait for mario draghi. Slight touch lower as far as sterling is concerned. 1. 4120. Down around 20 points from that surprisingly weaker pmi number from the uk just now. Now, talking of pmis, chinas official services pmi eased slightly compared with a 55. 5 reading in may. With a private survey by hsbc market shows a significant jump in the sector with the reading coming in at 15month high. The numbers out earlier this week suggesting the economy is steadying. Were joined now by michael. I think the market is pretty calm right now, that were looking at a soft landing scenario as far as the chinese economy is concerned. You dont buy the soft landing argument. You talk about a long landing from china. Let me see what that looks like. Well, china can generate as much growth as it wants as long as it allows credit to continue growing. And credit is growing much too quickly. So if we were to maintain growth rates at 7 or 6 for another two or three careers, the risk there is that debt levels become so large that we end up with a very, very difficult adjustment, what people would call a very hard landing. So the options arent between a soft landing and a hard landing. The options are between a long landing, by which i mean over several years growth rates will drop down by 100, 150 dips every year or a period of what looks like a soft landing followed by a very, very difficult contraction, a horrible hard landing. You are talking about a situation where perhaps from next year on wards, a 6 in china, 5 in china. That would be the best case scenario. How would we know that if we dont continue to see this reading that the chinese spit out for us, that we arent already seeing the potential blowup scenarios, only to collapse in two years time . Well, many people have argued that growth rates are lower than the official numbers. I dont know if i agree or disagree. But what i would look at more than anything else are two things. Employment and the credit growth. Credit growth is still way too high. But unemployment is fairley good. There doesnt seem much evidence of significant unemployment. Were adjusting so far in an orderly way and we would like to see that continue. Most people expect if youre looking at china with a growth rate of 5 were threatening potential social explosion. Youre saying we could see a 5 rate in a couple of years time and not have that problem . I think its a great myth that if we see significant lower gdp numbers were going to have a rise in unemployment. Rebalancing in china by definition makes a transfer of wealth to the household sector. And if you look at all the reforms, thats exactly what they do. So a rebalance in china is a china in which Household Income is growing faster than gdp after many years of the opposite. Allen, come in here because i fail to see how the market right now would accept a 6 growth result in china next year and even lower beyond that without having a real. Whooper. Personally, i dont think so. I think its kind of slightly insane that people get so obsessed with whether its 7 or 7. 5 . They obviously dont believe it. Talk to me about that. China tends to be a market where everybody has strong reviews. People seem to either love it or hate it. If you look in terms of the companies or the earnings, companies are growing reasonably strongly. Not particularly higher than other markets. But youre just paying a much lower valuation. So your margin of safety, which is what buffett teacher is benjamin talk is much higher if youre buying assets at a lower price. When i speak to managers in the asia region, they tell me banks are preparing for a default. Theyre preparing for the officials in china to let something go to underline the point that theyre ready for reform. I think the Financial Times correctly referred to that as the pretend default. We want the benefits of the default. But we dont want the chaos thats associated with default. Unfortunately its the chaos and pain of the default that allows us to discipline. You run the risk of a real run on the Wealth Management products. Ultimately, all of that we shift to the Balance Sheets, anyway. Dont expect a significant number of defaults. Youre saying investors putting money into the shanghai markets now . We believe in balance. So we have 1 to 2 in mainland chinese equities. We feel eats a huge premium to their equities. If you buy the mainland index, its less skewed towards banks and financials which is where the main issues are in terms of whats going to happen for nonperforming loans going out. The Wealth Management products, whats going to happen to those. So as a basis for investment, we believe having balance, doing it in a sensible way and doing it cheaply and chinese shares are about as cheap as you can get. Thank you so much. Malaysian state fund cavanaugh has plans to take Malaysian Airlines private. It would be the first step of restructuring the airlines, especially in the wake of the disappearance of flight 370. A chinese woman has been arrested in california for trying to steal u. S. Seed technology. They were charged with stealing corn seed in the states of illinois and iowa. She was similarly convicted last year. According to court documents, corn seed was hidden in boxes of microwave popcorn and packed in luggage for a flight to beijing. She is married to the chairman of beijings technology group, a group that includes a corn subsidiary. Now, former french president Nicolas Sarkozy has taken to national tv to defend himself against allegations of corruption. Stephane is in paris. Stephane, whats the take on his defense last night . What are ordinary people in france saying . Its going to be potentially crucial for a president ial bid. Justice has been and on planning to come back. The former president announced he would make a decision by the beginning of september or end of august. He indicated there was no question about renouncing. Sarkozy announced no wrongdoing. Translator i want to tell those who are listening to us or those who are watching us that i never betrayed their confidence, that i never did anything contrary to the republican principals or the rule of law. Nicolas sarkozy accused the French Justice system to be used for political revenge in order to humiliate him. He accused the Prime Minister of justice of manipulating the process and being aware of some details on the probe that should not have been known by them. Earlier this week, the former head was based under investigation, a procedure that often leads to trial, but not always. The investigation will need to find out if sarkozy tried to get a judge promoted in exchange for confidential information in regardi an inquiry. Sarkozy could face up to ten years in jail and a maximum fine of 1 million euros. Moscow in kiev has agreed to hold discussions to work towards a ceasefire. The ukrainian president poroshenko has launched levels in the east of the country since the ending of the union literal truce. After that, germanys Prime Minister is hopeful for a good outcome. To reach an agreement on a bundle of measures that all taken together can pave the way to a resilient mutual ceasefire. Stay tuned. We will talked to anders fogh rasmussen. Thats coming up at 1 50 cet. As the u. S. Economy continues to surge ahead, is it all good news for the countrys Service Industry . We get a taste on the current operating conditions with the ceo of lupita restaurants. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. The uk services pmi fell to 7. 7 in june, down from 58. 6 back in may. Its the lowest level in three months, although employment in the sector rose at a record pace. One of the biggest beneficiaries of the recent pick up in the uk economy is the countrys booming restaurant market. According to pwc, the eating out industry is now worth mover than 40 billion pounds for the countrys economy. Despite increasing competition in property, one business looking to benefit from the pick up in the uk Services Sector is lupita, which is now on the hunt for a third site. The ceo joins me now on set. Good morning. Good morning, julia. Youve been in the uk since 2010. Give me the extent of what youre seeing as far as a pick up in revenues are concern, as recoveries start to take hold. Sure. Weve seen in the last two years a significant increase in the recovery. The olympics here, obviously, was a very significant increase for us. We did quite well. But ever since then, weve seen a strengthening in the customer to an increase in the year over year sales and an increase in the spend per head and an increase in the premium product sales. You start to see a pick up in consumer spending, thats going to increase competition in the sector. How are you doing that . Quality and value are the two things that consumers really want. We focus on quality, a sense of products that a big competitor just cant compete with. I think there is the Small Business person does have a little bit of an advantage is that they can offer a Higher Quality and a better value. What about hiring . What are your thoughts there . Is it getting more difficult in terms of paying wages . There is an increased competitive level for employees, especially qualified employees in the language and also that are passionate about the business. So i think theres a lot of folks out there looking for work. But i think it takes a definite passion for service and really wanting to work in that industry. Youve been in the uk for four years now. But obviously, youve got a broader history than that. But here you can provide a few years of accounts, you have a Good Business model, youre looking ahead to what you can achieve. How easy is it for you to get financing . Its a hot topic for you today. Unfortunately its much more difficult than i think people realize. We fund our growth organically. I have looked at bank financing, but really, its just not available at rates that Small Business owners are really going to be interested in. So i think that once the funding is available, the Small Business owner has figured it out on their own. Well be speaking to that Small Business alliance a few minutes ago. He was saying look, the banks are making far greater demands than you would think. Collaterally, when you have an asset backing the loan youre trying to achieve, its just too much, isnt it . It really is. I understand the conundrum. Theres a difficulty in lending to a risky business, right . The banks have regulators that will look at those things. I understand that. But when Small Businesses needs the funds, theyre just not available. Fantastic to talk to you, ken. Good luck. Thank you. Sticking with the food theme, the fourth of july holiday is prime time for americans to celebrate the birth of their country while chowing down on burgers and steaks fresh off the grill. But these prices have been spiking to alltime high hes rece recently. Im here in southeastern minnesota where cattle farms like this are witnessing the biggest price rallies theyve seen in decades amid unusual supply and demand issues in their markets. A usda report showed in january, at 82 million, the number of cattle and cavs in territory were the lowest since 1981. Beef is the third highest commodity after coffee and hogs. Theyre now looking at the possibility of raising beef prices on the menu. And demand really hasnt waned. At some point, i think they get to the point and say, hey, ive got to do something. I have to change my pricing structure and i think that will be the case for beef longterm. This isnt a problem that goes away quickly. Its something that takes two years to turn around. The price bonanza means the cattle farmers are now starting to hold back to produce meat. Despite a waiting period of 18 months or more between raising them and bringing them to market. That and other factors means in the third quarter, we could see even higher prices than we are now. Back to you. Tropical storm arthur is expected to develop Hurricane Force winds over the next few hours along the u. S. East coast. Kerry sanders has more from the shores of North Carolina. Live in this area, having experienced nasty weather before, know that even a Tropical Storm can be very dangerous. Arthur is expected to impact this area as early as friday morning. And by then, it could be a category one hurricane. In angry seas yet. The weather forecasters say stand by. Residents on the outer banks who went through hurricane irene three years ago know the routine. The fourfoot storm surge in that hurricane washed away portions of North Carolina highway 12, cutting off Cape Hatteras from the mainland. This will be the first test of that reengineered, rebuilt highway. Dont put your stupid hat on. The North Carolina governor declared a state of emergency along the coast today. Already, Hardware Stores report lieutenants cleaned up battery supplies. But theres still plenty to board up. Among the worried from florida to virginia, those lured into the atlantic by bigger than usual waves, hidden below powerful rip currents. Usually most injuries occur right before a storm or right after a storm. Traffic to the outer banks is already building. This area is a popular july 4th destination. Hotels in Kill Devil Hills say their phones have been nonstop. Were hoping people will still stay with us and enjoy the rest of their weekend. Farmers along the coast are worried about corn and bean crops. Early in the season, they still could blow it down and worry it. Everyone is worried. If arthur just brushes this area, it will still rain from here all the way north, which is why tonight in five states from North Carolina up to massachusetts, fireworks shows have been postponed. Elsewhere in the states, team usas World Cup Team may be over, but with the American Network supposedly recording viewing investors viewer. Still to come on the show, another strong reading expected from todays jobs report. We ask how you should be poged in the next hour of Worldwide Exchange. Stay with us. Jc y welcome to Worldwide Exchange. Im julia chatterley. These are your headlines from around the world. Jobs thursday is here. A strong reading expected after wall street locks in another record close. Fed chair janet yellen holds firm on low rates saying shell not tackle asset prices through monetary policy. Monetary policy faces significant limitations as a tool to promote Financial Stability. Strong data out of the peripheral eurozone as the ecb meets on rates. The Services Sector expanding in spain and italy in june. Nicolas sarkozy denies all wrongdoing as he takes the national tv to defend himself against allegations of corruption. And Tropical Storm arthur has officially been classified as a hurricane. It is forecast to move into North Carolina overnight. Announcer youre watching Worldwide Exchange, bringing you Business News from around the globe. If youre just tuning in, thanks for joining us here on Worldwide Exchange. For the second hour, a quick check on the u. S. Futures right now as the equity markets around 14 points higher for the dow, the s p relatively unchanged, a point higher and a couple of points on the nasdaq, too. Were talking about new record highs despite being a 0. 1 gains for the dow and the s p. We didnt see those adp numbers allowing the do i to push near that 17k numbers. We did see the u. S. Tenyear moving six basis points higher yesterday. Lets skip over now and have a look at whats going on as far as the european session is concerned this morning. 0. 3 higher for the uk market, the german market, similar story. And italy, too, edging 0. 5 . The focus here in europe very much on mario draghi. Is he going to lead on euro banks right now and what more can he do about lending rates in europe . Lets have a look at asia now and talk about that session, too. Expectations there high for what we see as far as payrolls are concerned and morrow draghi. But talk to me about the China Services pmi. Well, the first thing to say from a market investment point of view is that no one is committing themselves to any big trades in either direction, until we get some clarity, as you said, from the payrolls and from the ecb, number one. Number two, in the china data, the Services Sector pmi was pretty robust. If you look at the official numbers, enjoyed his best conditions in 15 months in june. The chinese economy is stabilizing and rebalancing towards more private consumption, away from investments and exports. Having said that, theres probably more work to be done by the central bank in terms of fine tuning policy measures that are going to be brought on stream and brought into the system best quarter and the next, as well. Keep the economy on an even keel. So all things considered, the Greater China markets like this news from the Services Sector growth. Chinese composite closing just a shade below 1860. Thanks very much, sri. Weve just had some flashes across the rise regarding the situation in the u. S. And the weather right now. The nht saying storm arthur now reaching hurricane strength. It is expected to move near the North Carolina coast on thursday night, this according to the nhc. The core of arthur is expected to approach the coast in the hurricane warning area tonight. As i say, well keep you updated if we see anything else as far as those reports are concerned. Now, u. S. Hiring is expected to stay strong for a fifth straight month in june. The monthly jobs report is out at 8 30 a. M. Eastern. The forecast calls for an increase of 215,000 in the nonfarm payrolls versus 217,000 in may. That would mark the fifth consecutive month of job gains above that 200,000 level. Unemployment, meanwhile, expected to hold steady at 6. 3 for a Third Straight month. Now joining us, head of Investment Strategy at brooks mcdonald. Its great to have you on the show. Whats your expectation for private payrolls today . We had strong indications in the private sector that the jobs number would be strong. However, those numbers arent always aligned because the numbers we hear from the government will be broader. The concern is that even if you do see strong numbers, which is expected, you have other headwinds that are there. There is a lot of underemployment providing a lot of black in the economy. And there still isnt enough wage growth. That is something that the fed is very much focusing on. Theyre expected to hold steady based on what we got last month. What about the participation point right now . Were seeing a structural shift, were seeing it focusing on young people and prime age workers whereas youre seeing an increase in participation from the older people. Its a burden for the fed. The authorities have to keep those in benefits. Its obviously there is a longer term structural issue. What the fed has come out and said is theyre looking at a broader range of indicators. Whats interesting is tying this into what yellen said yesterday was the fact that they are looking much more on the broader economy as opposed to trying to tackle risks in Financial Markets and banks, etcetera, more indirectly with Interest Rates. Thats going to be their poef. But does it make sense for yellen to be talking at macro prudential . If we look at the jobs even at 6. 3 , isnt it an argument that rates right now are too low . What theyre doing is and its interesting because she qualifies her comments by later on saying she does acknowledge that there could be a risk in the credit markets. That is something very much on our radar. You could see i mean, not the talk too strongly about this, but credit crisis, you have the situation that is reminiscent of what happened before the credit crisis. Its kind of deja vu in the fact that you have two easy standards for lending to poor quality companies. Rates spoke have narrowed substantially. Finally, margin requirements are potentially, too low. What this does is it stores up a very big risk if people get worried about rate rise coming in and if they start to rush through the door, there may be be enough liquidity in the jobs markets. What happened in the u. S. Markets . The u. S. Credit markets have doubled since the financial crisis in terms of their size. Who is going so be buyers . We talk about this in the high yields market in particular. But to bring it back to the day, margo draghi potentially leading on the euro. Which is the stronger force today, do you think . The stronger force is more likely whats going on in the u. S. And the reason for that is draghi has come out with so many different policy measures that its very unlikely that hes going to have any room for more action. So the focus is much more going to be on the u. S. Than over in europe. Youre staying with us. But for now, dow jones forecasting an extra 215 jobs added in june. What we want to know is what your guess with todays jobs number. Are you feeling bullish or bearish . Get in such with us at worldwide cnbc. Com or tweet us cnbcwex or direct to me. Against granting bnp paribas a critical way to continue operations in several u. S. Investment advisory units. Reports of cara stein was the only democrat on the commission. The s. E. C. Granted bnps temporary waiver on monday. The same day the bank pleaded guilty to violating u. S. Sanctions. The s. E. C. Is looking atrophies buyout firms get for securing discount prices such as coffee and computers. The wall street journal says its part of a stepped up probe into private equity fees. The agencies confirm investors who did buy out firms cash to takeovers arent getting enough information about fees they earn on these stock programs. Coming up, a theres on flights. To build something smar. Some come here to build something stronger. Others come to build something faster. Something safer. Something greener. Something the whole world can share. People come to boeing to do many different things. But its always about the very thing we do best. Welcome back to Worldwide Exchange. These are your headlines. Jobs, jobs, jobs, another strong month of hiring expected in june. Analysts predicting a fifth straight month of growth. Last month, mario draghi prommed more to come from the European Central bank. Could today be the day . And Tropical Storm arthur reaches hurricane strength ahead of the fourth of july holiday. We just mentioned there last month the ecb became the first Major Central Bank in the world to move deposit rates into negative territory. Speaking after the announcement, mario draghi said there was more extraordinary policy to come. Geoff and annette are in frankfurt. What are we expecting . I think you pretty much summed it up there, julia. The door is open to more easing. Guys, heres the door. The door is open. I think mr. Draghi will keep stressing the point over again. He must be very disappointed with euro dollar the last two weeks all weve seen is the euro firming back to levels that existed prior to the extraordinary measures that were announced at the last meeting. Yeah. And one way of doing so, its good to give us perhaps a little bit more detail on how long the Interest Rates actually should stay that low or at least at this level or lower levels. That could stay on the u. S. Dollar Exchange rate. And practice some more information on a qr . Maybe. I mean, we you know, this carrot has been dangled out there about, you know, how we address the cleansing the banks are doing at this point on their Balance Sheets to meet aqr and the stress tests and then make sure what theyre doing doesnt prevent them from lending into the real economy. But in realize, weve spent two years now seeing contraction in lending to the private sector around the eurozone. That hasnt changed. That has to be a worry. That is increasing the disinflationary pressure here. So any detail he can give us at this point really isnt going to help. But its a joke. The banks have to reduce their Balance Sheets and at the same time they should lend more to actually riskier businesses. And its in essence impossible. Looking at recent lending data, probably well hear a growing sense of frustration from mario draghi since lenning is going down and now up. Not all bad. At least the germans and the french are still in the world cup, julia. Im sure there will be one or two footballtype questions that get fired at him. He can take some comfort away from that, that were still in the game, whether were cousins to north america or not. Im sure mario draghi will have a wide smile when he gets that comment, guys. Thank you very much. We know mario draghi is concerned about doing too much as far as draghi is concerned. We had yellen warning about the potential of build up risks. Whats your take . How much caution should there be coming from investors . Youre starting to see the rotation. Youre seeing growth back to value. Cash levels on part followos are near a 2 1 2 year high. Youre starting to see it come into markets. Whats interesting to note, and this is specifically noted by yellen was she said expectations with volatility are very low. And if you look at the swings in the market, lets talk about the s p yesterday, the swing in the market was as little as 0. 21 . And its the second smallest swing in markets since 1993. The dow was 37 points, wasnt it, the daily range on the dow yesterday. Having said that, we still didnt manage to ship above 17k yesterday. Do you think we get that when we get the nonfarm payroll numbers, expecting a bigger number even from what we got on the adps yesterday. You do see greed overshadowing. And people are too worried about missing out rather than all these other signs of caution. So over the shorter time, yes, the markets can continue to rally. Define shortterm. Oh, god. We cant continue to chase this. But to quote one of my favorites, house of cards, frank said the higher up the mountain you go, the more treacherous the path. And i think that sums up markets perfectly at the moment. I like it. Jenna godfrey at brooks mcdonald. Moving on, president obama held a telephone call with the Saudi Arabian king last night about ongon going tensions in iraq. The two discussed the need for iraq to form a new inclusive government. Hdly gamble joins us now. They tried that this week. They did try that. And i think youll see maliki is much more focused on fighting than on politicking. But what is interesting is that none of the western players have any interest in a maliki government Going Forward, obviously. So hes going to have to stick to his guns in terms of trying to secure baghdad, trying to some is of these securities situation. But the politicking is going to continue. Well keep you there for two seconds. I want to tackle Something Else right now. Security is being ramped up around the world to direct flights in the United States in spite of warnings about an kraed threat wanting to smuggle bombs into u. S. Bound flights. Hadley, the iraq situation, thats a site. We havent been talking about spillovers into the west. Is that what were looking at here . Absolutely. And there have been conversations of the last couple of weeks, the uk, for instance, has said that theres no way that theyre going to be able to check everyone thats coming back, thats been involved in the fighting in syria. Theres just not any way they can do that. Obviously, in the u. S. With People Holding american and uk passports. Were coming up on the july fourth weekend. Even though the tsa and Homeland Security are saying this is not in any way linked, were saying this will be longer lines at the forefront of americans and eventually youll see higher costs. Always these security costs are passed on to the consumers. Well see americans coming to the relation that this is a problem that does impact them. This is a problem, particularly against the fourth of july holiday. Thanks, hadley, hadley gamble. Nos cow has agreed to hold discussions with kiev weekend regarding a ceasefire. After holding the discussions in berlin, germanys foreign minister is hopeful of a more positive outcome. Translator i believe that we have succeeded in negotiations that have just ended to reach an agreement on a bundle of measures that, all taken together, can patch of the way to resilient mutual ceasefire. European officials will be able to see louisa talk to the second general rasmussen. That is coming up at 1 50 cet. Still to come on this show with the fourth of july celebrating just around the corner, we ask if the sector is always about fun and games or its bumpy rides. Norwegian air is transferring its low cost model to transatlantic flights. Speaking earlier on the channel, Norwegian Air ceo explains how they can afford to keep the fares so low. Its on the other aircraft. The airline we have to learn within the shortterm in europe. Joining us is chris thompson. Are you on target . Good morning, yes. Last year was a record year in visitation. We had 70 million visitors that the International Market has spend nearly 181 billion. Can i ask what specifically youre doing to try and target asian visitors for the country . Well, you know, travel to the United States is aspirational for many of our asian markets. In a lot of cases like china and india, travel to the United States was something that many havent done yet and look forward to doing. Were actively involved in both of those markets, feeding back ta dream stage, we have in country representation and consumer campaigns going direct to consumers, promoting all that is the United States, the 50 states, the five territories, the district of columbia. We work with the travel trade to facilitate the travel and to help us tell our story. We were talking about the situation in the middle east. Some airports are stepping up security from potential spillover of courses. What impact do you think security threats pose for your business . Well, you know, the one good thing about the fourth of july holiday is that it is a universal travel season for around the world. So lots of travel going on around the world. It is one of those high seasons that all of our partners, both the federal government and otherwise as it relates are welcoming to our visitors from around the world is at a high level. So we feel like the ability to be able to accommodate those travelers coming in is already at a high level and we should be able to handle that. 30 of your business is done in the summer months right now. Can you ask you if youre doing anything specific for Independence Day holiday this year . Sfwh yeah, in most of our embassies around the world we have Independence Day celebrations which does focus on our fourth of july. And it gives us a great opportunity on a very big stage to focus on all that is the United States of america. This year were focussing on culinary, culinary diplomacy, typing experiences fought only to but through and beyond one of our gateways. Its a way for us to talk about the United States as a destination, but the diversity of the United States and what it has to offer as it relates to culinary opportunities. Chris thompson, ceo at brand usa, great to talk to you. Still to come on the show, going private. Li lululemon is toying with the idea, all the details. Welcome to Worldwide Exchange. Jobs thursday is here. A strong reading expected as wall street locks in another record close. This as fed chair janet yellen holds firm on low rates saying shell not tackle rising asset prices through monetary policy. Monetary policy faces significant limitations as a tool to promote Financial Stability. Strong data out of the peripheral, eurozone will give morrow draghi a boost. The Services Sector expanding in spain and italy in skrun. Security on flights to the u. S. Ramped up after reports of a credible threat related to al qaeda. And arthur becomes the first hurricane of the 2014 season. The storm is forecast to move towards North Carolina tonight ahead of the july 4th holiday. A quick look at the expected open, fresh highs for the s p and the dow in yesterdays trading session. But the dow trading at a 37point rate. That listed the u. S. Six basis points. On the private payrolls is expected for nonfarm payrolls today. Well continue to wait. Were watching for mario draghi lean on the strength in the session today. That coming up at 1 30 london time, 8 30 eastern. Right now, were seeing gains across the board for the european markets, higher by around 0. 4 to 0. 5 across the board. How do you make money in these markets . How do you position yourself . Listen to what some experts have been telling us today. When the federations Interest Rates because growth is good, thats okay. When they tighten because inflation is bad, then we get scared and, of course, inflation is really the enemy of stock markets and credit markets. Its not going to be great, but its okay. We had a stronger than expecteded gdp number. I think the market is going to be looking to see whether this number can change that tone. Financial conditions in the u. S. Have never been of the last ten years. So why . Why would i expect u. S. Rates to explode . U. S. Hiring is expected to stay strong for june. Forecasts call for an increase of 215,000 in the nonfarm payrolls versus 217,000 back in may. That would mark the fifth consukter month with gains. All week on cnbc, weve been asking our guests for their predictions on the allimportant jobs numbers. Take a listen. When you look at jobs numbers with year over year improvement, thats really, really strong. Its been slow and steady, but i think its gaining steam. I think the credit expansion is showing that. I think well see that reflection in q2 numbers. Im going to go for 255. Im quite a bit more optimistic. I think the consensus numbers are too low. I think theyre too backward looking. Its too much rearview mirror. Img theyre impacted by the volatility. But i think looking at the survey evidence, business service, but Consumer Confidence service, they show an acceleration in confidence which i think is something that goes along with increased hiring. I would think just about any number, unless its a really negative number will be viewed okay and that the future looks a little brighter. Joining us now from cnbc hq, patrick, what are your predictions . Net gain of 200,000 jobs. All of those being in the private sector. Expect a little bit of an uptick in the Unemployment Rate due to reentrants of previously discouraged workers. Overall, i think the momentum Going Forward is quite positive. Expect about an average of 225,000 net gains per month in the second half. And what about some of the devil within did details, like wages and hourly hours worked, as well. Dont expect much change there at all. A little bift avenue an increase as hours works. Wages will remain, as they have been for too long, flat. And we saw the jobs lost in the beginning of the recession in 08 and the recovery beginning in 2010. What now would you consider an acceleration . I know you mentioned the 220 or so figure Going Forward. What could we say as an acceleration as far as the expectations Going Forward . I think the month to month number, as i said before, will be somewhere around 225,000, 230,000 a month. I wouldnt consider that to be a real acceleration. This has been a slow jobs recovery. A slow expansion where merely 0. 1 above where we were in the employment in january 2008. To i think give monetary policymakers jobs, we would so his jobs well into the next year before they would become concerned. These are your headlines. Jobs, jobs, jobs, another strong month of hiring expected in june. Analysts predicting a fifth straight month of growth. Last months mario draghi promised there was more to come from the European Central banks. Could today be the day . And Tropical Storm arthur reaches hurricane strength ahead of the fourth of july holiday. Director of research at kieren resnick is still with us. I want to talk to you briefly about the 36low for the last few months. Structurally, were seeing a shift right now. A focus on unemployment among young people and those considered prime working versus those in the older brackets. Is that really more of a problem for yellen as we push forward throughout the year . Weve seen a sharp decline among those in the labor force ages 25 through 54 years of age. Participation is up among those over 55 and those over 65. So when you look at it that way, what were seeing is those who need at the entry level years of their workforce participation who need employment to gain not only income and skills are not out there looking for work. If we had a Participation Rate the same as we did back in 2007, the Unemployment Rate would be 10. 9 . So were masking a whole lot of problems, underlying structural problems in this low labor force Participation Rate. And the risk is that it could end up keeping you on hold for longer because literally, they cant afford to raise rates even if she wanted to for other reasons than the economy. I think as we saw in the outtake from her speech before, the chair woman recognizes that there are limits to monetary policy. And the kind of structural problems that have led to the decline in Labor Force Participation are beyond the reach of monetary policy. Those are going to require interventions that offer training opportunities, Work Experience opportunities, and encouragement to those who are so discouraged theyre not even looking. Absolutely. And we look to draghi and yellen to solve things that they shouldnt be focusing on. Patrick okeefe, director, economic research. Lets take a look at todays other top stories. Lululemons founder is reportedly talking to private equity firms to gauge their interest in a possible buyout. The wall street journal says it could be difficult given the retailers 6 million market cap. Earlier this month, she voted against the companys new chairman. American apparel found what dov charney gave him control to a hedge fund. He struck a deal with standard general to try to claw his way back into the company. Charney bought the fund shares giving him a 43 stake. But he cant make any move unless standard general signs off of it. Google has begun to remove links with the right to be forgotten ruling made earlier this year to kick in. And one of those requests has been made to take down negative press about the former Merrill Lynch boss stan oneal. In a blog post, bbc economics correspondent robert pestin revealed he received a notification from google about an article he wrote in 2007. The post in question names only stan oneal and talks about the down turn during the prices. Now, Tropical Cyclone arthur is officially the first hurricane of the season. Alex wallace from the Weather Channel joins us now to give us all the details. Alex. Good morning. Still watching it here on the southeast coast of the u. S. There it is. The advisory coming in at 5 00 eastern time. 75mileperhour sustained winds and moving to the north. That mo into the north continuing right now at about 9 Miles Per Hour. We should keep that going as we work our way through the day before it eventually works its way towards the north. Now, look at the radar picture. You can clearly see this thing sharing and spinning here just to the southeast of charleston, south carolina, already starting to see some of those outer rain bands moving in with those rain bands. Some gusty winds and some downpours. Checking out some of the sustained winds out there right along the coast, anywhere from 5 to 15 Miles Per Hour. But some of these buoys that are out over the open waters, getting up around it, 20 and close to 30 Miles Per Hour right now. Tropical storm and hurricane warnings are up along the coast of the carolinas and southeastern virginia, as well. So Tropical Storm or hurricane conditions are expected in those spots. The question is whether is it going to be headed . It should continue to move out to the north and turn to the north and east. Late tonight, could be looking at landfall here in eastern carolina. By early friday, the outer banks will be affected. Continuing to work out towards the open waters of the atlantic. As we head into the weekend, still dealing with parts of it as we work out way to nova scotia. So essential ways to track this. Weather aside, americans will be celebrating the 238th birthday of their country tomorrow. How much can they expect to fork out for all those activities . Morgan brennen is at cnbc hq with all the details. Morgan. Hi, julia. Many americans have a threeday weekend and theyre getting more incentive to hit the road. 32 Million People will take a vacation during the holiday. A majority of them, about 70 . So the price of gas wont impact their july fourth spending plans. Thats sg is interesting because prices at the pump have recently spiked, making this july 4th the most expensive for drivers since 2008. Aaa says the average price nationwide is 3. 67 a gallon. Thats up about 19 cents from a year ago and its linked to the recent unrest in iraq, which has sent crude Prices Higher over the last month. The survey says about 105 Million People plan to attend fireworks shows this year. Thats down slightly from last year. Well see what hurricane arthur does to that. The american pyro technichs Association Says numbers this year could fluctuate. Several parts of the u. S. Are experiencing severe drought conditions. Thats forcing many towns and cities to ban sales of fireworks to the public due to the fire risks. What would the fourth of july be without a display of American Pride waving at the starspangled banner . The u. S. Isnt the only country with a stake in the celebrations. The Census Bureau says the u. S. Spent 4 million on imports of american nags last year. Thats compared to just 781,000 of exports. China made 97 of them. Food is a key part of the holiday. The prosper su survey says 153 consumers will celebrate by chowing down this year. The average household will fork over about 68 on burgers, snacks and other food. Thats even with a big spike in beef price necessary recent months. Now, tate kelly has been down on the farm looking at whats behind this price shock. Im here in southeastern minnesota where cattle farms like this are witnessing the largest in decades. Due to issues with drought and high costs for corn and other cattle feed, a usda report in january showed at 82 million, the number of cattle and cavs in inventory was the lowest since 1951. Thats part of the reason why cattle futures have rallied about 28 this year making them the third best performing commodity after coffee and hogs. And most price res hitting the consumer, too. Restaurants have tried a variety of work arounds and theyre now looking at the possibility of raising prices on the menu. At some point, i think they get to the point and say, hey, ive got to do something, ive got to change my pricing structure and i think that that will be the case for booefr longterm because this isnt a problem like we talked about earlier that goes away quickly. Its something that takes two years to turn around if we can keep the pasture land growing, its going to take that twoyear period to get us going. The price bonanza means cattle farmers are holding back on producing meat, preferring to hold on to heavier y heiffers produce calves. That and other factors means in the third quarter, the tight supplies could continue. If demand hasnt changed, we could see even higher prices than we have now. We have breaking news on the latest. The u. N. Human rights chief saying the demolition of palestinian homes is a human rights violation. Hes condemning the palestinian rocket attacks on israel. But he condemns the israeli retaliation, israel retaliating with strikes on the gaza strip last night. Well keep you updated if any other comments are made on that note. Meanwhile, security is being ramped up around the world with direct flights to the United States. There are threats of al qaeda wanting to smuggle explosives on to u. S. Bound flights. Were going to take a quick break. Still to come, a tight trading range dominates wednesdays session ahead of a short trading day today. Well find out how you should be positioned, right after the break. Jc y u. S. Futures making limited gains as far as the dow and the s p were concerned in trading yesterday. But they did manage to make fresh highs trading below that 17k level on the dow. Right now, futures indicating higher by 2 30i7b9s for the s p 500. The dow jones just shy of 21 points higher and the nasdaq 4 points higher. Payrolls, of course, today and mario draghi to speak later on in the session. Joining us now is ben lichtenstein. Ben, thanks for joining us. The adp numbers yesterday didnt manage to propel the dow to 17k yesterday. Can payrolls do it for us today . Well, we sure hope so. Keep in mind, thats just a psychological level. Everybody likes that number because its nice and round. But as far as technical levels, its really just another number. But again, thats what everybodys sights are set on right now at this point. What we would like to see is some follow through associated with that. Also, we would like to see some participation from the russell. The russell has been missing out on this broader based rally, if you will. It was the nasdaq and the russell. Now its just the russell as the nasdaq played catchup, if you will, and resolved that divergence to the upside. Were waiting for the russell to see further strength to the upside. But for the most part, the trend is very much intact headed into this holiday session. Keep in mind, early close today. Its been really low volatility here, really low volume. I expect that trend to continue. The 37 point gain on the dow, is it best for people just to stay out of the way when we get the numbers later and not risk getting chopped around . That depends on your own personal trading style, if you will. I think the broader based position has been this buy and hold right now. I think any real sell side activity would be met by buy the dippers and for the most part on this type of day, i wouldnt give any real weight or credit to anything one way or the other for the most part. Its kind of a coin toss, if you will, and were looking for continuation over the next couple of weeks. If its to the upside, we look for those areas of value to be established to the upside, continuation of the vertical trend. If to the downside, we would be checking out a couple of key areas of support. But everything up above 1900 right now in my opinion in the s p is everything above 1900 is bullish and very positive. And the dollar here . Oh, good question. The dollar has been sideways for the most part. We saw it dip below the 80 even level a couple times over the last few weeks. Really the dollar today will be the ecb. No question about that. The euro has been chop trade around this 1. 37 level. All eyes on the dollar. Ben, thank you so much for your thoughts. Thank you. On a note for europeans, tune into european closing bell later for exclusive interviews with sunil gulati, the man credited with making soccer popular in the United States. With that, this is Worldwide Exchange and im july ya chatterley. Thanks for watching Worldwide Exchange. Have a great day. Good morning. And welcome to squawk box. Fireworks from the Labor Department a day early. What that means. Mac is not here. Will nonfarm payrolls light up the markets . It will be a real dud. President obama calling for more financial reforms to stop banks from taking on more risks. And raining on the holiday parade, arthur reaches hurricane strength and is headed for the coast of North Carolina by tonight. Its thursday, july 3rd, 2014, and squawk box begins right now. Good morning, everybody. Welcome to squawk box here on cnbc. Youre right, joe. Mac is not here. Hes on vacation today. He doesnt have to commute with all the traffic today. Im becky quick along with joe kernen and andrew ross sorkin. Dont adjust your calendars today. It is jobs thursday today. Tomorrows july 4th holiday moves that june unemployment report up to 8 30 eastern time today. The polled forecasters say the economy probably added about 215,000 jobs last month. If thats the case, that would mark the fifth consecutive month of job gains of at least 200,000. The Unemployment Rate is seen Holding Steady at 6. 3 . The average Hourly Earnings are expected to have increased by 0. 2 . We have a lot on the line for the markets today. In the lead up to the payroll report, dow and s p both closed at record highs again yesterday. Theres only a half day of trading today ahead of the holiday. The stock market will close at 1 00 p. M. Eastern today. If you take a look at those futures, youll see at this point at least we see some green

© 2024 Vimarsana

comparemela.com © 2020. All Rights Reserved.