Im sara eisen along with Michael Santoli who is generously sitting in with wilfred frost who is also with us this morning, reporting live from london. Covering this weekends terror attack. Well have more from him in just a moment. First, lets check in on the Global Markets this morning. After u. S. Stocks made another move yesterday. They got a 1 gain or so for the week on stp. 1. 5 0 for the nasdaq. We start in the red just barrel. Dow futures down 6, nasdaq down 2. 5. S p futures down 1. 5 points. I want to show you crude oil prices which are rising still higher after saudi arabia, bahrain and the United Arab Emirates along with yemen all cut ties with qatar. Those countries are accusing qatar of meddling in their internal affairs and backing terrorism, increasing concerns about supply disruptions. Were now seeing 0. 8 move higher on wti surpassing 48 a barrel. The stock index dropping sharply, 7. 5 . Well take you to dubai for an explanation and more on the Market Reaction in just a moment. Elsewhere overseas, lets check on the markets in asia, China Services pmi came in stronger than expects at 52. 8 showing growth on the inspectser expanding at the quickest pace. You see really not too much action in the asian equity market. Japan modestly lower. Hang seng down 025 . Not too much of a response from that quick data. Over in europe this morning. Germany is closed today. The uk may services pmi, though, coming in short of forecast. Meantime, euro dones pmi slightly better than expected and europes pmi matched targs. You see definitely a cautious tone across europe. But definitely not dramatic moves in response to the weekend news. As for the Broader Market picture, i show you the tenyear treasury note which got as low as the november low on friday, after it was a pretty disappointing read on the u. S. Labor market. Both on the headline number on the wage number and labor market addition. Right now were seeing the tenyear note 2. 17, thats watching the lows of the year. We will watch that closely. As for the dollar, following that over the weekend on friday, the dollar is a bit stronger than the euro this morning and the yen at 1. 1048. The british found which was weaker overnight after news of the terror attacks on the weekend has now climbed back. And is about unchanged at 1. 2882. Gold prices, lets just show you, they did get a little pop from that weaker job report on friday are higher again this morning. Geopolitical news and risks front and center up 0. 3 . Lets get straight to london where wilfred is there after the deadly terror attacks. Wilfred, stuff tore. Im glad youre there for this. Give us the latest. Reporter good morning, sara and mike, seven people killed, 48 injured when three attackers in a white van mowed down pedestrians on london bridge. They then exited the van and attacked people in Borough Market with knives. The three suspects were shot den at the scene within eight minutes of police being called. They shot 50 rounds in total. 12 people were arrested yesterday. Some further people detained this morning. The police do now know the identity of all three attackers and the metropolitan police chief confirming that they had a, quote, Domestic Center of gravity and not directly from overseas. Now, this is the third attack on the uk by terrorists in just 73 days. Therefore, theresa mays response yesterday, firmer than two weeks ago. She said they were not directly linked, these recent attacks but, quote, were bound by the single even ideology of islamist extremism. She added enough is enough. And theres far too much tolerance of extremism in our country. Now, she also confirmed that the election was going to go ahead as planned on thursday. Campaigning picking up in earnest this morning. Teresa may will go off of Jeremy Corbyns perceived and including the police cuts that did take place when theresa may was home secretary from 2010 to 2016. These arguments sadly have been used already over the last two weeks in light of the Manchester Attack. What does it all mean . Well, the polls have one clear thing over the last couple of weeks which is momentum for Jeremy Corbyn, albeit, theresa may still in the lead. That lead before yesterdays polls taken before the attack varies from 1 to 12 points depending on which you look. The pound stands flat from over the weekend. Wilfred, what can you sell us about the Prime Ministers strategy . It does feel like shes gotten a little tougher. I mean, its hard to believe how the frequency of these attacks leading up to this election in such a short period of time with that Manchester Concert happening just over the weekend. Is she changing her strategy . Is she changing her tune . Is it just rhetoric . What can you tell us about that . Reporter well, shes definitely changing her tune. After the Manchester Attack that was a more severe attack. Her rhetoric was more restrained. She didnt go out specifically after extreme. And while she said these attacks were not directly linked she also revealed there have been five thwarted attacks since march since that westminster london attack. There was a sense that two successful attacks could have been a coincidence. But theres a growing trend and that is what led her to say enough is enough. She did suggest there could be a deeper terrorism review and stronger laws passed if she wins the election. And as many people noticed she did cite the internet having to clamp down the availability of extremist material on the internet as one of the things. Clearly was a six, sevenminute speech. We havent gotten policies but with theresa may, we will have tougher laws on antiterrorism moving forward. In the wake of that terror attack, the threat was raised and then backed off to just severe. Is there any talk right now over there whether that might be a more permanent approach to have that very high alert level . Reporter yeah, well, thats a good point. And we should point out that although it was elevated, and as you said, brought back down from critical to severe, that means critical means an attack is expected to be imminent. Severe means that it is highly likely. But criticism is not being thrown directly for theresa may for lowering that level, because the level is decided by jtac, the joint terrorism analysis center, not by the Prime Minister herself. As for Going Forward, i think its important to note we havent seen an increase in the Terror Threat again, albeit, she did mention the higher level of thwarted attacks in recent days and weeks. So, at the moment, it remains as you say, at severe, signaturugg an attack is highly likely as opposed to imminent. I remember, wilfred, i have been there on vacation during the attack on parliament, what struck me how back to normal, the city of london was just around that surrounding area. Everything else is functioning. Its monday morning there, whats it like . Is there a sense of heightened alarm or concern . Or business as usual . Reporter no i would say very much business as usual. You cited sadly, the march westminster attack, of course, i was in paris ahead of the french elections where we had a terrorist attack two or three days before polling. Against, a sense of solidarity, a sense that people wont let this necessarily influence their decision. In paris, it didnt lead to a change in results. Perhaps it would have favored le pen. This election was meant to be about brexit. And on brexit, theresa may is received as having the strongest, most stable position on negotiating both because of the recent attacks and separately because of her own policy and subject. Uturn, the focus has not been on brexit and that is one or the number of reasons why shes seen her lead slip in the polls but in london, very much a sense of resilience, solidarity and business as usual, sara. Wilfred, well see you in a few moments youre going to be reporting all week on the mood of the country. British Prime Minister theresa may did call for stricter internet, saying we cannot provide extremists with, quote, safe spaces online. Several Tech Companies responded, facebook saying quote, we do not allow groups or people that engage in terrorist activity or posts that express support for terrorism. We dont want payment to be an environment for hostile environments. And google also weighing in saying theyre working with industry colleagues to crack down on its abuse on its platforms. Lets get back to oil prices which are moving higher after several gulf states cut diplomatic ties with qatar, hadley gamble is on the nbc news lines with the latest. Good morning, hadley. Reporter good morning, oil from qatar and saudi arabia as well, implications from the dynamics of the region the keel question, of course, how the private sector is going to fare, given the uncertainty and voluatility volatility. The bigger question, we heard from secretary of state Rex Tillerson that the u. S. Is open to some sort of conciliatory agreement between the countries that comes offer the back of several weeks ago, we saw the president having a very successful trip to saudi arabia with u. S. Foreign policy, with the gcc gulf area policies. Sand then between qatar and saudi arabia and bahrain, the uae causing a major, may have dysfunction. The question Going Forward will be can they come to some sort of because saudi arabia, uae, egypt, bahrain, all of them are accusing qatar of supporting terrorism. Weve seen them with the Muslim Brotherhood and hamas. A lot of questions whether or not were able to find common ground. Hadley, do we know what it means for the u. S. Yet . You mentioned Rex Tillerson, doesnt the u. S. Have a big military base in cqatar . Reporter you got it, we have an army base as well as a base in qatar. If these guys arent talking that has major implications for us. Hadley gamble on the rift with the gulf states. Thank you very much, hadley. Now, the u. S. Politics, the president will kick off the week today with a rose garden speech. Hes as invited Airline Executives to unveil the plan to privatize air traffic controls. Wednesday, hell travel to improve inland waterways and on friday, hell advocate for shorter review times for railways and other structures. I think hes going to cincinnati . For which one . Waterways . I dont know, we dont have many waterways there. Ohio river. As for the week on wall street, its been a lot lighter. Look for the ism services and factory orders, wednesday, consumer credit, thursday jobless claims friday, wholesale numbers. Just a few earnings to find out, results from rbi, dave busters. And vail resorts. Apple will host its annual conference, tim cook will give the keynote address at 1 00 p. M. From the sector weight to overasset, its limited to upside current expectations. With the twomonth pairing value of apple shares at 1. 45 which is low the current price. Coming up this morning stocks to watch, including herbalife. The Company Consulting sales. Check out the commodities overnight from four key arab toa bounce. Were monitoring that four. As well as the move lower and futures. Well be right back on Worldwide Exchange. And its also a story about people. People who rely on us every day to deliver their dreams theyre handing us more than mail theyre handing us their business and while we make more ecommerce deliveries to homes than anyone else in the country, we never forget. That your business is our business the United States postal service. Priority you bp uses flir cameras a new thermal imagining technology to inspect difficulttoreach pipelines, so we can detect leaks before humans can see them. Because safety is never being satisfied. And always working to be better. Welcome back to Worldwide Exchange, if youre just waking up, lets get you back to speed with the markets u. S. Equity futures looking at extremely modest declines after closing friday on fresh alltime highs across the board. S p down just a point. Basically, very fractional giveback if any, if this holds toward the open. Take a look at oil prices this morning. There was a little bit of news overnight where saudi arabialed coalition severing ties with qatar, we did see a bump in world oil prices. A little more than 0. 5 in u. S. Crude and Brent Holding about a 05 gain, too. Take a look at treasuries as well become we did see a rally in treasuries, the decline in the yields. Tenyear note yielding 2. 17, just at the very bottom range, a lot of people concerned about that narrowing yield curve. But so far, u. S. Equity markets are okay with the setup for now. Sara. Mixed messages continue. Stocks to watch today, herbalife is raising its Second Quarter profit forecast and says it exceeded a key threshold under its agreement with the fdz fd federal trade commission. Herbalife does expect lower revenue citing weakness in mexico. Astrazeneca shows lagtsstage of a drug slows the spread of Breast Cancer in young women. Throws are 42 likely to see the cancer spread than those given chemotherapy. And gig amon reporting a possible sale. The stock hitting a 2 bop in the free market. More stocks to watch this morning. Toyota said it sold its entire stake in tesla by the end of the last year after chancing its tie for the company to develop electric cars. Toyota had bought a 3 stake in tesla some years ago. No word on exactly how much money toyota made on that. Boeing meantime has delayed the delivery of the 737 max jet set for this week for Norwegian Airline due to a technical issue. The move comes after boeing had to delay last month. Cocacola has joined the political battle against the u. S. Sugar industry ahead of the deadline to settle a trade dispute with mexico. Coke, adm and cargo made at the white house warning of potential fallout if the u. S. And mexico dont have a deal with large duties on exports. Coming up, russian president Vladimir Putin is accusing the u. S. Of interfering in elections around the world. Well head to that next. But first, heres todays Weather Forecast with nbcs bill karins. Good morning, mike and sara, what a murky report. Well see numerous areas with showers. Its not going to be any one location. It will be the hit and miss variety. Look how balance in boston. I apologize for that, 56. Thats jacket weather. If year getting isolated storms to severe storms mostly in the midatlantic. Then in the gulf coast more typical afternoon storms well be dodging. Heres the forecast, the blue is one, the pink is three, mostly in the hudson valley, the best chance of heavy rain. Even going into the forecast monday into tuesday, were still going to deal with wet weather there in areas of the northeast. Thats your Business Travel forecast. More Worldwide Exchange when we come back. Welcome back to Worldwide Exchange. Im mike santoli along with sara eisen. In washington this week, former fbi director james comey is schedule dodd testify at a senate hearing. Nbcs tracie potts joins us with more, good morning, tracie. Hi, mike and sara, this is the First Time Since we heard from comey since fired by President Trump and were allergy lawmakers grill him on conversations he had privately with the russian president. And did the president try to pressure the fbi director into backing off that investigation. It will be the first time hes addressed that publicly. Also, this week, we expect to hear from the head of the National Security agency and the director of national intelligence. Same questions from them. What were the conversations with President Trump . Did he get the impression that he wanted him to back offer the investigation . Of course, this is all part of the bigger look that congress is doing on whether russia tried to influence our election. Russian president Vladimir Putin says no, he also with an exclusive interview with nbcs megyn kelly talked about that dinner, that widely publicized photo, the dinner that he had with former nsa, National Security adviser mike flynn. Listen. Translator i made my speech. Then we talked about some other stuff. And i got up and left. Then, afterwards, i was told, you know there was an american gentleman he was involved in some things. He used to be in the security services. Thats it. I didnt even really talk to him. Thats the extent of my acquaintance with mr. Flynn. Putin also denied that russia tried to hack or influence our election. And actually sort of turn the tables, mike and sara, saying that its the United States that seemed to have its hands in a lot of other countrys elections around the world. Beyond comey this week, i guess, tracie, well be watching for fall jot over what happened in the uk over the weekend. Yeah. President trump responding in a series of tweets i know this was a lot of the talk on the sunday shows yesterday. Ill just read one for an example talking about how it does argue in favor of his travel ban. We need to be smart, vigilant and tough. We need the courts to give us back our rights. We need the travel ban as an extra level of safety explanation. He also went after the london mayor sadik khan and talked about gun control. Is there a lot of backlash to the president s sort of politicizing about this event . Yeah, a lot of questions whether the president went with this, he started out saying the u. S. Stands and will do whatever he can to help. And then criticizing londons mayor for saying theres no reason to be alarmed. Looking at the whole thing in context, the mayor was telling people in london that theres no reason to be alarmed when seeing extra people on the streets that theyre putting them out. Well see a larger Police Presence as they try to track down where it came from. President trump saying, really no reason to be alarmed and seven people have been killed. And he went on to talk about gun control and his travel ban. And not being politically correct when it comes to security. So, he really did seem to be going after londons mayor in a comment that perhaps was taken a little out of context when the mayor was talking about police on the street. Thank you. Ariana grande hosted a starstudded concert for the victims of the suicide bombing. Top stars justin beeb esche, Katy Perry Miley Cyrus and coldplay joined graensd on stage. Tell raised more than 3 become during the benefit show. Bringing the total amount for we Love Manchester Fund to nearly 13 million. When we come back, a roundup of this mornings top stories and developing action. From attack in london to the overnight move in crude prices. Well get you the details you need to know. Youre watching Worldwide Exchange on cnbc. N it comes to, 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. Tha. Oh, burnton gravy . Ie. Gotta rinse that. Nope. No way. Nada. Really . Dish issues . Throw it all in. New cascade platinum powers through. Even burnton gravy. Nice. Cascade. Good morning, breaking overnight saudi arabia and four other gulf states cut diplomatic ties with qatar. Oil is moving on the news. Weve got the latest straight ahead. A massive terrorism investigation widen in the uk following the attacks. Were live on the ground, coming up. A risks to bigger rally. Could it threaten the run on wall street . Its monday june 5th, 2017. Youre watching Worldwide Exchange on cnbc. Good morning, welcome back to Worldwide Exchange. On cnbc. Im sara eisen here with Michael Santoli. Wilfred frost is reporting live from london this morning, covering this weekends terror attack. More from him in just a moment. But first, we are following a developing story out of the middle east where five gulf states have cut diplomatic ties with qatar, saudi arabia, egypt, United Arab Emirates and bahrain, all citing it supports terrorism. With the dispute over car tars support over Muslim Brotherhood. Dohas Stock Exchange sharply lower on the news. Down 7 . The oil also reacting to increased tensions in that part of the oilproducing world. Crude oil is up by more than 1 . You now up 0. 5 . Brent also up 0. 4 . And 5017. Nat gas popping at 1. 3 . Saudi is the big procedure there. If you add the geopolitical premium in there although its not lynn nra, nobody thinks consults are coming. They already have come in a sense with production cuts. Exactly. A check on Global Equities markets this morning, we see u. S. Equity futures coming off record hes on friday, once again, looking to give back minimal amounts, the implied open on the dow is now for a slight positive. And the nasdaq which, of course, has been the leader, also at this point, firming up, looking like flat to slightly higher. One feature, of course, of the u. S. Market has been shirking off all kinds of concerns, whether its low bond yields. Whether geopolitical issues. All of the rest of dimmer views from policy out of washington. And, of course, the weaker jobs report on the economic picture. Over in asia, as we look at those equity markets, also a bit of a mix to lower picture there as well. You does have a Decent Services pmi number coming outside of china, but the shanghai down 0. 5. And hang seng down a quarter of a percentage point. Over in europe, following the weekend news and terror attacks in london, just again, very modest losses. We see italy a deeper backoff there. Almost 1 . But in general, its just Slight Movement and downsize. As for the Broader Markets, the treasury tenyear hovering around lows of the year. At the lowest points in november, buying on treasuries. The friday weaker jobs report was the catalyst. As for the dollar, it was weaker friday getting stronger against the euro at 112. 63, up a little more than 0. 1 percent. A tiny bit up against the yen. And the pound has been interesting, weaker overnight following the terrorist attacks. Its now come back completely and firmer crossing back 1. 2904. Gold price were a little bit higher on the back of these increased go eopolitical risks d the comey testimony on thursday, well following that part of the rowland. And thank you piece shack who is our inhouse market watcher of statistics, 17 closes for the dow in 2017. The s p has had 22. The nasdaq has had 37 record closers for the year. Yeah. The nasdaq is really a momentum story. A lot of people finding out how much higher it is relative to the small cap. Whats your take on the resilience of the round . First of all, i think low and slow. Like low rates and slow growth have basically accompanied the entire bull market. The market knows how to translate that into growth stock outperformance which is whats going on. It cant go on forever but now its okay. Every time you have a pullback and bad headlines, you get that wall built up and people get nervous. For now, i think its a momentum story and a fact that, you know, the u. S. Market continues to be where you can find Mega Cap Companies that are still growing. Climbing the wall of worry. The nasdaq just positive here in the early session. Were continuing to follow a developing story out of london where seven people were killed. Many more injured saturday night in the third terrorist attack in the uk in three months. Lets get back to wilfred who is near the scene of the attack in london for the latest political reaction. Wilfred. Reporter hey, sarsara, yes, indeed, as this was the third successful attack in just over 73 days establishing a trend here in the uk it led to a stern response to Prime Minister theresa may where just after two weeks of the Manchester Attacks where she said enough is enough. And she said if she wins the election they could establish antiterror paths including relating to the internet. We cannot allow this ideology the safe space it needs to breathe. Yet that is precisely what the internet and the big economies that provide internetbased services provide. We need to work with allies democratic governments to Reach International agreements that regulate cyberspace. To prevent the spread of extremist and terrorism planning. And we need to do everything we can at home, to reduce the rinks risks of extremism on line. Reporter Internet Companies sponsdzi i responding that they, quote, want facebook to be a hostile environment for terrorists. Weve had the likes from twitter and google as well. If she wins the election, what could it mean in terms of political policies. We should note, just a couple weeks ago, the g7 meeting in italy, theresa may did push for social media and providers and companies to remove extremist material from the internet. And id add this home secretary amber rudd particularly singled out endtoend encryption of messages. She doesnt mention any companies in particular, but a company like whatsapp does use that endtoend encryption. Perhaps that is something on the chopping block if conservatives are reelected. Now with the labor leader Jeremy Corbyn that discussed with tracie, corbyn described that attack showing that President Trump had a lack of sense or grace. One conclusion, perhaps, if we did see a labor victory, a Jeremy Corbyn victory would be tougher relations with the u. S. Hes been critical of President Trump, particularly on the idea of the immigration band in the past. Guys. You can talk about that, wilfred. I know you went there this week to report on the British Election on thursday. You were telling us, that last time after the Manchester Attack, it really wasnt the real driver of the change weve seen in the polls. What about now . What will you be watching between now and thursday to see which way this election goes . Well, well definitely wait for the first polls to come out since this attack. But as we said and mentioned, the attack itself didnt seem to alter the main point that was going son, which was momentum slowly shifting towards Jeremy Corbyn, while teresa may and the cont teserve sifatives are seei shift. First and foremost, she had a simple error on policy, social error policy that was received badly by pensioners cohort. And then almost immediately after announcing a policy she backed uturned and turned her strong and stable. And Jeremy Corbyn has captured the imagination of the left, the young and the female vote more than people expected. If that momentum continues perhaps he could eradicate theresa mays lead but betting Companies Feel a strong victory for theresa may, thats what markets expect. If we didnt get it, we could be voiced. We will see you for the must hd reads. General jack jacobs, kernel jacobs, thank you for calling in again. Unfortunately, we keep talking to you about these horrific events. Based on what we know so far, what you can tell us about what youre deducing on this terrorist attack, whether its different and whether its an escalation, and what we need to be taking away . Well, the whole concept spreads and is fragmented and as a result is difficult to stop. This attack is very much different than the last one which used explosives, had much better planning. This although isis has claimed responsibility for both, its not entirely clear that the latest attack was anything other than not to minimize it but anything other than three sympathizers who decided not on a whim, necessarily, but with far less planning to aspire to be members of isis. So, these two attacks were very much different. What the British Government has to do is, among other things to make it extremely difficult for terrorists, not just to operate, but to operate in the way which permits them to acquire weapons and explosives. And therefore, to minimize the results of any future attacks. You reported earlier about the implication that the Prime Minister was going to work after the election to ensure that theres a control of information, so that they can intercede before an attack is going to occur, so that they can supervise, surveil conversations between or among potential attackers. This is extremely difficult to do in a free society. And what theyre going no matter what happens as a result of the election, and what efforts that the government takes in order to intercede, its still going to be difficult to dwathwart all of the attacks. And i think the British Government understands that. Yeah, especially with the slow coordination and all of the rest. Not too many footprints to detect ahead of this one. Colonel jack jacobs, thank you for your time. Youre very welcome. Coming up, why riley summer says after 75 years of progress america just took a giant step backwards. Your must reads coming up. And the futures, we did just see nasdaq go positive for the session. Were looking at minor declines and futures coming up and major closes for advocates and another strong week for stocks. Worldwide exchange will be right back. Got it. Rumor confirmed. Theyre playing. What . We gotta go. Where . San francisco. When . Friday. We gotta go. [ tires screech ] any airline. Any hotel. Any time. Go where you want, when you want with no blackout dates. [ muffled music coming from club. Blue monday by new order. Cheers. ] [ music and cheers get louder ] the travel rewards credit card from bank of america. Its travel, better connected. Welcome back to Worldwide Exchange. Lets get you caught up on the market action. Were going to pick a few movers in the early session. But first, futures with very long change this morning. Dow futures down 1 point after lows of the sex, down 6 a half hour ago. S p down 1, futures down less than a point. Closing on friday youre watching the gap this morning . Im watching the gap. I think its a good focal point for this big question. This market has not really been narrow and dragged by stocks but its have and have nots. Its been physical and consumer mall retail one of the weakest points out there. Gapp is down from 27 a week ago. Oppenheimer i think it represents a conundrum that consumers have been flush. And unemployment at 3. 4 . Where is the spending going and exactly how do you play that in the stokck market . It goes to say maybe the retailers have gotten too cheap and applies to banks as well. Were waiting the final results of the Gubernatorial Election yesterday in the largest state of mexico. For enrique pena ineto. Last week a hinge in history, the former treasury secretary essentially saying that the president s pullback, not just from the paris accord but basically lukewarm support for nato is obviously a gesture of saying, look, the postwar, kind of westernled coalition of Global Community has been broken. He writes it is essential that leaders in the u. S. Society signal clearly their disapproval of the course the administration is taking. History will judge poorly Business Leaders who retain positions on Trump Administration advisory boards. I think it will be said that this white house will be disappointed if Larry Summers was not upset with its stance on it. Certainly, its very much in tune with what President Trump ran on but it shows you people are very much concerned with the idea that gary kohn last week saying its not a Global Community. Its basically a zero gain among nations. Summers has become one of the top critics of the administration from an economic perspective. Goes after them without having any economists add vising them. Sure. Or the back pony of their policies, whether geopolitical or economic tax reform. This administration is against establishment experts and Larry Summers is probably the epitome of establishment experts. You look at Obama Administration they had plenty of ammunition to fight back. Lets bring in wilfred. How is this terror attack playing out in the british papers this morning . Reporter yes, i picked out a couple, with a head line that says massacre and the people laying on the floor, the location of Borough Market is behind me where this played out. And london bridge. In the times, an oped, and this sums up what most of the other papers are going for enough is enough. Jumping on that, elevation in severity of rhetoric from Prime Minister theresa may compared to after the Manchester Attack two weeks ago. And the right wing paper saying we back our Prime Minister insisting things have to change. The question is, does her elevation in terms of the strength of what shes saying play out in the polls in the next couple of days, in the way it didnt two weeks ago after manchester, as we said already with the Election Campaign going on today. Thursdays vote, theresa may holds a lead. Jeremy corbyn certainly got the momentum behind it, guys. We are approaching the top of the hour, that means the team is getting ready for squawk box. Andrew ross sorkin is in new york with a look at what is coming on this busy morning. It is a busy morning. Were getting back to wilfred and talking about the terror and impact. And heres what we have on tap, walter haase is going to join us, trying to make sense of what, of course, has been a senseless situation over the weekend. And Arne Sorenson is going to join us, spending a little time trying to understand what this means to the hotel world. Of course, theres one of the few places where there can be sometimes a real economic impact, and also another hotel company, Jonathan Tisch is going to be spending time with us and a conversation with andrew puzd puzder, thats whats going on. What to make of it, in the short term, but, of course, the longterm is the big gain. Andrew, thanks very much. Still ahead a wildcard for the record rally. The one thing keeping jpmorgans jay camperty up at night. I love you, couch. You give us comfort. And we give you bare feet. Backsweat and gordos everything. I love you, but sometimes you stink. New febreze fabric refresher with odorclear technology. Cleans away odors like never before. Because the things you love the most can stink. And plug in febreze to keep your whole room fresh for up. To 45 days. Breathe happy with new febreze. Exchange, im sara eisen with Michael Santoli. Wilfred frost is in london. Call it a market trifecta, the s p and nasdaq hitting highs on friday. Do the rallies continue this week . Joining us jack caffery from jpmorgan bank. Jack, good morning. Good morning, sara. Just when we think we have morale eye wille rallies, we ma london terrorist attacks, ahead of the comey attacks, the lack of momentum on the trump gaenag yet, futures are unchanged. Does the resilience surprise you . I really dont think so. If you look through, we continue to have a modestly growing economy. We continue to have companies extracting earnings off of that modest growth and high in the equity market, i think its reasonable that you might get returns on fixed income. While absolute Interest Rates are low. Credit convictions seem to indicate theres not a massive worry about the corporate sectors ability to continue to pay. So, i think you should look through and find reasons for that resiliency within. Yeah, jack, that certainly explains how weve gotten to this point. I guess you wonder about valuations, looking at the higher side but thats not been critical, as long as all of that other stuff was supported. What are those wildcards that could interrupt the picture. We know that potentially the future of fed policy is on it . Sure. Its not only where will the fed go and will the fed continue down the path of gradually tightening. We think theres two rate hikes over the course to come. We step back and think not the support term, not the next three weeks or months but expect what do we get you out of the fed for years . What does that membership of the feds board look like over the next six months, nine months, 12 months, who can get approved. And what will their policies look like. And will that be a change from the dovish policies weve had for over a decade now. What about the returns, jack, do you think there were returns announced with able to go with two more hikes as planned . I think if you look within the details of the jobs report, you saw okay gains. On thursday, with the Jobs Creation numbers you continued to see a fairly low pace in job separations. At a point were going to have a shift in the conversation of where are the workers. And perhaps we have a lack of employment gains just because you struggle to find people who are qualified. People who can actually take the jobs theyre looking for. And do you have to pay more or do you have to actually invest in turning. With the shift in the dow, rather than you created 250,000s jobs or 100,000 jobs. Whats what the Decision Making process looking like. What about the idea that the markets if they continue on this path could themselves get overconfident could share heavy risk taking that the fed is going to want to tamp down. Do you think were anywhere close to Something Like that . Im not sure id say were close to it. I think if you look through the measures. You look at the vix, i think the vix is certainly an indicator of markets perceptions of liquidity. I mean, that seems massive massive amounts of put buying. You are seeing more debt. But these are issues of people tracking earnings, earnings have been Better Options markets and its been supplanted. Youre going to have oneday, onemonth shops under way. Certainly summer is a time for a reminder theres political risks. And we start off the conversation with political risk. Its not just new york, or washington, its a global issue. And it comes back to are earnings growing . And if earnings are growing, businesses are more active over time. Well leave it there, jack. Thank you for joining us on this monday morning. Jam caffery of jpmorgan bank. What will you be watching . I think the treasury. Actually crowded in the bond market. Jack was talking about political risk. Geopolitical risk is dominant. Gold is at an alltime high. See if theres any buying not seeing it really. Gold hack the flip side. That does it for us on Worldwide Exchange. Have a great week, squawk box is next. Mom gets breakfast in bed. You get to do the dishes. Bring em on. Dawn ultra has 3 times more greasecleaning power. A drop of dawn and grease is gone. Good morning, terror in the uk again. Seven people are dead, dozens more injured in saturdays naek london. Just days before the parliamentary election. We get a live report from london, straight ahead. Breaking overnight, arab states breaking ties with ties to terror. Well bring you the reaction in the crude market. And apple shares trading low down by analysts. Thats rare. And ahead, the developers conference, monday, june 5th, 2017. And squawk box begins right now. Announcer live from new york, where business never sleeps, this is squawk box. Good morning, everybody. And welcome to squawk box here on cnbc. We are live from the Nasdaq Market site in times square. Im becky quick along with joe kernin and andrew ross sorkin. And lets take a check of the markets on this monday morning, u. S. Equity futures are flat. Dow futures down by a percentage. So are nasdaq. S p futures down by 1. It was an up week for the markets last week. Dow was up by 126 points. Nasdaq was up by 1. 5 . If you take a look at what happened overnight in asia, youll see that the nikkei was flat was well. Not much activity in the hang seng or shanghai composite. The shanghai was down the most by half a percentage point. In europe today, germany is closed for a public holiday. But you can see the cac is down by half a percentage point. The ftse in london
comparemela.com © 2020. All Rights Reserved.