Welcome to Worldwide Exchange, im wilfred frost. And im seema mody. We are taking you back with some of americas most notable black artists, right now youre listening to james brown i like that one great way to start the show. Lets get to the Market Action futures are slipping it comes off a soft day. The dow was higher yesterday the s p down by 0. 2 the nasdaq 0. 4 . A bit of a selloff in the afternoon. Not much in reaction to the fed Decision Just softness in the tech sector thats why we saw the nasdaq as the worst performer. Futures are down quite sharply 64 points for the dow. The nasdaq down another significant move, 67 points. Thats higher in percentage terms. 12 points down for the s p question marks on whether this is in relation to the announcement, reported announcement that President Trump is under investigation for obstruction of justice an update from washington on that coming up the fact that the nasdaq is leading the move down, suggests it is not that as the driver, just more tech softness. Oil prices were key yesterday. We did see the Energy Sector within the s p as the worst performer. Down 1. 8 . Oil prices fell nearly 4 on u. S. Inventory data for gasoline showing more supply than expected today things stabilized. Wti 44. 7 flat at this hour. Tenyear treasury note, we got that 25 basis point hike we saw the dollar and yield curve slip a bit ahead of the decision it recovered some ground afterwards the low on the tenyear was 2. 10 now 2. 14, but lower than the 2. 2 level weve been around for the prior week. Shifting the discussion to stocks in asia Chinas Central Bank leaving rates unchanged despite the fed rate hike. Back in march the peoples bank of china uped its overnight rate hours after the fed raised rates. This time not the case the shanghai closing flat. Hang seng down 1. 2 . The nikkei down 0. 2 , this ahead of the bank of japan meeting tomorrow in europe, the Swiss National bank announcing it is keeping Interest Rates unchanged the snb believes the swiss franc is significantly overvalued. Swiss franc up 4. 5 against the dollar year to date. The bank of england policy decision is due at 7 00 a. M. Eastern. At the same time investors are digesting retail sales figures, rising 0. 9 . Thats short of estimates. Lets look at how european equities are responding. Relatively negative across the board. Ftse 100 down 0. 7 a notable move in french equities, down nearly 1 ahead of the boe decision central bankers clearly in the spotlight. Not just the u. S. But japan tomorrow, russia as well we also had European Data in terms of the trade balance, 17. 9 billion. Consensus was 27. 1 so a bit of a fall the real reason for that softness in oil prices is playing catch up with the oil market slip yesterday after. Europe down yesterday as well. Broader markets for you. Dollar boards, which did see weakness in the dollar prior to the fed decision, almost as if we were not sure whether janet yellen would come through with the hike or not, or whether she would be expressly dovish in her statement. The dollar then recovered once we got the rate hike and Janet Yellens comments. Ended the day broadly flat this morning Dollar Strength by a third of a percent against the british pound and euro fractionally higher against the yen. Gold prices, down around 0. Up 0. 6 . Yesterday breaking a fiveday losing streak. To todays top story, the Washington Post reporting the special counsel is starting to investigate President Trump for possible obstruction of justice. Eamon javers joins us from washington with the latest good morning to you. Good morning. What can you tell us . The Washington Post story last night got all attention in washington, d. C. , all of official washington focusing on the issue of whether or not the president is under investigation personally and directly for obstruction of justice thats what the Washington Post reported last night. Let me run you through some highlights of their report with the caveat that i cant independently confirm this reporting. But it is not being denied by the president s personal lawyer or the white house what we know from the Washington Post is that theyre saying the obstruction of justice investigation into trump began days after he fired former fbi director james comey. We know the director of national intelligence, dan coates, mike rogers and his former Deputy Richard ledgett have agreed to be interviewed by muellers investigators. Investigators are look into evidence of possible financial crimes mueller, we know, is now investigating whether trump himself attempted to obstruct justice. Again, that investigation began shortly after comeys firing we have a statement here from the spokesperson forthe personal lawyer for the president saying the fbi leak of information regarding the president is outrageous, inex k inexcu inexcuseible and illegal important to note that the spokesperson is not denying that the president himself is under investigation for obstruction of justice. And implying it was the fbi who provided this information to the Washington Post. Thats not at all clear. There would be a number of people who would have had access to this information including those being interviewed as part of an obstruction of justice investigation who might be able to figure out what it is the special counsel is looking at here well wait and see whether the white house has further official reaction at the white house they have simply stopped answering questions about the russia issue and referring everything to the president s personal lawyer. I suppose the question now is time frame for all of this, also if it gets confirmed but within that we heard from the president that he would be potentially willing to testify under oath on all these sorts of issues is does this increase the likelihood that that happens you could see a Straight Line connection between the investigation of the president and the testimony of the president in that investigation. The question is how would that happen, when would that happen and what would the terms be for any testimony that the president provides i remember covering the bill clinton investigation and impeachment back in the late 90s the terms under which bill clinton sat down to talk to investigators in that situation were very narrow, very constricted. He did it on camera, but privately. Eventually we did get to see what president had said there. Thats a legal risk for a president of the united states, testifying under oath about an issue as sensitive as this one you would imagine his lawyer would go to Great Lengths to make sure that the terms of that, the timing of that are as constrained as possible. Well have to wait and see we dont have information on that quick question, the former fbi director, james comey, already told President Trump that he wasnt under investigation. How do those comments pour cold water on this report from the Washington Post . They dont. That was then this is now. The Washington Post is reporting that the investigation began after comey was fired. So he nothing that comey said about the status of any investigation months ago is necessarily applicable now the investigation could have started after comey was fired and comey would have had no way of knowing that months and months ago that is something that the white house was anxious to suggest, that the president himself was not under investigation. You saw when the president fired comey he reiterated in the letter to comey that comey had said he wasnt under investigation. This report, if confirmed, changes all that the white house wont be able to argue anymore that the president is not personally under investigation. Just quickly, rumors, albeit unsubstantiated earlier in the week that the president was considering removing Robert Mueller from his role. Is that undoff the table now because the fallout from doing that would be so big the fallout would be enormous, but i dont think its entirely off the table. I dont think we can predict where this will go the president has a sense of grievance about this investigation. It has bothered him for his entire presidency. Its something that ultimately led to the firing of comey but his aides have been warning him if he were to take that step it would be a grdramatic one legally he would have to get somebody at the department of justice to follow his order to fire the special counsel now the question is would people at the department of justice follow an order like that or would they resign in protest if the president made it . Even attempting to fire Robert Mueller could be politically treacherous for the president if it sparks a series of resignations at the department of justice eamon, thank you very much for that you bet s ares a softer this morning. Is it because of this story . Perhaps, but perhaps because the nasdaq is down more sharply than the others, suggesting more of a tech selloff the dow down 0. 3 . The s p down 0. 5 . The nasdaq over 1 for apple, alphabet and microsoft in the premarket. Markets softer across the board but tech leading the charge down another big factor is the fed. The central bank hiked Interest Rates bay quarter percentage point yesterday and unveiled plans for how it intends to trim its 4 4. 5 billion Balance SheetSteve Liesman breaks down what the latest policy move means for markets. The fed had concerns of weaker inflation and mieconomic concerns straight in the eyes and moved to raise it a quarter point any way. Most fed officials continue to forecast another rate hike this year, and three more next year fed chair janet yellen suggested that yesterdays hike was still not very aggressive. All that were doing in raising rates is moving removing a bit of accommodation heading towards a neutral pace and i see that as appropriate. Were not moving so aggressively as to put a brake on continued improvement in the labor market. Heres some of the ecommentary out there rbc saying anything but dovish barkl Barclays Says june straight ahead. So does the fed start reducing the Balance Sheet as early as september and enact a third rate hike in december or go again in december and then wait until december to cut the Balance Sheet. I think the date will show the way how hawkish the fed will be. The question on whether low unemployment and low inflation continue to run together theyre not supposed to. Many fed watchers think the fed could pull back if the inflation mick da Economic Data remains soft i asked janet yellen if she would stay on if asked by President Trump. What i said about my own situation, i fully intend to serve out my term as chair, which ends in early february i have not had conversations with the president about future plans. I do very much hope i know they have been working hard to identify appropriate nominees for the open slots and i do very much hope that there will be nominations in the not too distant future back to the rate story. We have a bit of a disagreement between the markets and the fed. Fed fund futures dont show the next rate hike priced in until march of 2018, but most think it happens before the end of this year the good news here, we have a one handle in front of the fed funds rate so it will be easier instead of the zero and being a fraction, that hasnt happened since 2008 wow amazing how long they stayed so low. With the zero in front. Lets come back to this disagreement with what investors are pricing in and what seemed to be telegraphed yesterday. Its not just that investors are not really believing that well get a second hike this year, but the shape of the yield curve so flat doesnt believe well get three next year either its hard to know what exactly is being priced in here. I think you could make an argument that the flat yield curve reflects the belief in the market that the fed carries through with this and doesnt see upside in the economy and sees lower inflation its a tricky story now. Not believing the fed was a good bet for the past several years i think after yesterday, i think the fed may have a bit more i dont know, commitment to its plan and its forecast now. It may be time to switch that bet and say i will go with what the fed is forecasting here. Not 100 if the data goes the other way, i think the fed wants to claw back what it can while the market gives it the leeway to do it despite the soft inflation number, theres a school of thought that the strong jobs picture, the labor market will indirectly help push up Consumer Prices does history, analysis of other countries that have seen similar stories say that that will work . How much time do you have what youre talking about is the great question of what they call the phillips curve the tradeoff between unemployment and inflation if you would put that chart back up, guys in the back, that low inflation problem for the fed, thats not what is supposed to happen inflation is supposed to go down, unemployment up, or the other way around theyre supposed to work inversely to each other, theyre not. You have record low unemployment, 16year lows, inflation continues to move away from the feds 2 target the fed did take notice, they said were watching it closely were not ignoring it. I think if the numbers continue to remain soft, but theres two theories, the low Unemployment Rate will cause inflation to tick back up the other is that some of the factors that have driven the Inflation Numbers down are sem prayer fact temporary factors. As far as Janet Yellens future, if she was asked to stay on, would President Trump have already been asking her about that february is not that far away. Second, is this potentially a factor in why markets are not pricing in hikes next year because of the massive swing factor that changing the fed chair could have in terms of what the board is thinking i will throw a bit of this back at you. How together does the Trump Administration seem to you in terms of its appointments . Emaculately well organized well, i went back and did some math. If you look at the past 30 years, june is the average month when a fed chair is either appointed or reappointed by a president. So thats this month its happened as late as october in the past. Thats entirely possible but the idea being that theyre not late, definitely not average, and not early here. You would think they would have it they still have the three open slots they have not filled yet. Were waiting for those appointments they have time to get this done. They have good candidates. Yellen said we know theyre working hard on it i know theyre working hard on it i heard quite a bit about whats going on in terms of them looking for people i think they have that side of it together. Im not sure why they have not named those people yet can you confirm or deny whether you have been invited to be the next fed chair . I have not. As yet. But we have until october. Its not anything i can really talk about now. Its too early to talk about that in many respects, its too early to talk about that great to have you with us nice and early thanks for having me. Still to come, stocks under pressure at this hour as the market suggests a potential probe into the president the feds latest policy decision and weakness in tech stocks. The nasdaq down almost 60 points about a percent dragging the et lower as it did yesterday. These days families want to be connected 24 7. Thats why at comcast, were always working to make our services more reliable. With technology that can update itself. And advanced Fiber Network infrastructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Welcome back to Worldwide Exchange. Futures pointing lower the nasdaq once again leading the market down. Down 57 points, just shy of a percent. The dow down 0. 4 . The s p down about 0. 3 other way around, dow down 0. 3 michael farr a cnbc contributor joins us again it feels like we stopped the rock in tech two days ago, but its leading the market lower again. It is i think on the heels of the fed news yesterday, markets are still trying to find a direction. U. S. Markets of course yesterday we ended up with not a bad day at all asia didnt treat that news quite as kindly. Of course prices have fallen well see how the u. S. Reacts today. I wouldnt be surprised to see a selloff early on and a rally later on in the day. Thats been a pattern weve seen over the past few months but we certainly have seen tech cracking, particularly the fang stocks in the u. S. Going lower that could continue as we get weakness in the tech sector and sector rotation as we come in to quarter end. Would you say its politics the uncertainty around washington that is impacting sentiment today . Yesterday we heard all the political noise is distracting investors, and they should focus on the fundamentals. The fact thaerning inthat earnh continues to improve its always nice to say, but i think weve had so much political noise, i dont know why this political noise would be more distracting than the constant din weve heard since well before november, well before the election. We keep looking at the economy, and we have seen the Unemployment Rate come from 4. 8 to 4. 3 . Thats a half percent jump thats a big deal. Yet as the fed is raising rates, when you look at monetary policy, you look at the direction. The direction is towards a tightening they are also talking about the Balance Sheet. The Balance Sheet proposal is theyll start to let it run off. Thats its own form of monetarying tigmonetary i tightening the real point is that the market did not care. The fed is moving off center stage in many ways stocks seem to be reacting to the fundamentals the fed is telling us that the economy is Strong Enough despite recent nearterm weakness. So it seems that markets are holding on intact. Its difficult to tell theres so many headlines every day which one might be driving prices lower i think you kind of have to watch what is happening in tech right now. Is this going to continue through quarter end. Just a quick nod to oil prices down again yesterday. The s p was down 1. 8 off the back of it is this getting more worrying this trend i think it is i think despite opecs best efforts, best jawboning, best everything else. Theres a ton of oil supply, tons in storage. We dont have that robust center of growth around the globe that is sucking up Natural Resources now and aggressively buying. Theres plenty of oil supply i dont look for that price to get more stable any time soon. I think the trend there is down. Michael, thank you very much for joining us michael farr. Still to come, stocks to watch today including avon reporting swirling about an executive shakeup at the cosmetics giant that story and mu me rachorstight ahead when Worldwide Exchange returns coming up, the top stories and a round up of the Global Market picture and were monitoring the oil price selloff. Llsecrdrill down on the ude coap when Worldwide Exchange returns. 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. Good morning breaking news out of washington. President trump under investigation for possible obstruction of justice according to reports were live in washington with details. Crude realities. Oil plunging below 45 a barrel. Supply fears weigh on the market and forget the friendly skies. A new report shows a draw dropping spike in Airline Passenger complaints its thursday, june 15, 2017, youre watching Worldwide Exchange on cnbc. Good morning warm welcome to Worldwide Exchange on cnbc. Im wilfred frost. Im seema mody, in for sara eisen today. Its Throwback Thursday and africanamerican Music Appreciation month so were taking you back to some of americas most notable black artists. Enjoy the music as it comes. A day of declines yesterday, slight for the dow and the s p down about 0. 2 for the s p. The dow slightly higher. The nasdaq slipped in the afternoon. Tech taking a hit. Down 0. 4 . The same is true this morning. The nasdaq very much the laggard of those three its down nearly a percent we have about 0. 3 decline for the dow. Dow down about 50 points the nasdaq down about 56 points. Lets look at some tech stocks to see how this is playing out over a percent of declines for the likes of apple, amazon alphabet, facebook, so 1. 6 of decline there in google stock. The tech selloff has been reignited once again something that we saw on friday, high valuation concerns. There was a noted from bank of America Merrill lynch that says a record 44 of Fund Managers see the nasdaq as overvalued they say the tech heavy index is the most crowded trade thats not the first time we heard that, but that could also be adding to todays losses. Politics also weighing in on the market the fact that tech is leading the way down suggests its not purely the political story more on that coming up the softness in oil prices yesterday afternoon, the fed rate hike has not gone down well for the most part around the rest of the world. Shanghai just holding on to a positive close hong kong down more than 1 . Japan also in the red. Europe not looking very pretty soft yesterday by about a third of a percent down almost a percent for france germany down 0. 7 ftse 100 down 0. 7 as for the broader markets, in response to the fed rate hike, lets look at the u. S. Tenyear. Now expecting one more rate hike in 2017. The tenyear note holding on to a yield of 2. 14 in the markets on commodities, lets look at gold gold right now down by as much as 1 . It has been gaining over the past couple of days. But does this drop in gold suggest this market selloff were seeing has more to do with commodities, something well ask our market guest in just a second look at oil. Oil has been really the big story on concerns that there is now supply outpacing demand despite that opec price reduction. Wti crude at 44. 67 the international gauge for oil, brent crude at 47. Seeing a bit. President trump reportedly under investigation for possible obstruction of justice this comes as a federal probe led by special council Robert Mueller looks into russias interference in the 2016 election the Washington Post reports that investigators are looking for evidence of possible financial crimes among mr. Trumps associates a spokesman for the president says the fbi leak of information regarding the president is outrageous, inexcusable and illegal. As eamon javers told us earlier, didnt get a denial that the president is under investigation for obstruction of justice from the white house yesterday but they were not drawn on it. We dont know ifnoknow this foru another leg to the ongoing political drama. Markets are softer this morning. The fact that nasdaq and tech are leading the way down suggests it is other factors as opposed to washington itself President Trump visiting House MajoritySteve Scalise at the hospital last night. Scalise and three others were wounded yesterday morning when a gunman opened fire on members of the Republican Congressional Baseball Team during a practice in alexandria, virginia. Scalise remains in Critical Condition and will need further surgery but is expected to recover from his injury. The annual baseball game will go on tonight the first pitch will be thrown at 7 05 p. M. Russian president Vladimir Putin is holding a nationwide q a session. Its an annual event where the russian president gets to take questions directly from the people last year he fielded 80 questions over the course of 3 1 2 hours. Were going to monitor this for you and bring any big headlines, particularly related to the u. S. Thats ongoing at the moment in russia back to the markets. Oil is moving lower after touching a sevenmonth low in yesterdays session. Jackie deangelis who covers commodities here with what we should expect what is behind this big selloff thats the important part so lets break it down we had a few attempts to break 45 it did finally happen yesterday. Crude closing at 44. 73 after inventory numbers from the department of energy so the department of energy reported a draw in crude oil of less than 2 million barrels. That was a smaller draw than expected then combine that with a more than 2 million barrel build in gasoline inventories and overall this was a bearish report. We saw imports were down, refiner runs were up and crude was used to make product but that the product has been difficult to move. Why . Gasoline demand has not been as strong as it normally is this time of year, some are blaming the weather and less driving for that trend the iea out with a report suggesting the supply glut would continue through 2017. Most analysts on wall street modeled some sort of supply demand rebalance to stabilize prices, curb volatility, making it easier for companies to do business the question is where do we go from here. Traders are saying 45 was breached yesterday 43. 73 Technical Support there. 42 is not out of the question. I will say this. Opec was pretty wise at the last meeting. They did that extension for another nine months, but they held some cards back dont count them out of the game yet. They know they have a lot of power if they make smaller cuts as we go on. At least the saudis know that. They have more cards, more chips they can play in the game. What level does oil have to trade at to warrant a response for some of these Oil Producers . If we get down to the 42 level you can see action being taken i think whats remarkable is whats happening this summer that lack of summer driving demand is something we have not seen in a while. That could tipple scalthe scales the weakness based on supply has been because of higher inventories as opposed to larger coming on. I think youre right, they thought we would work through the storage faster the oil markets, for example, russia, countries that rely on the price of oil, russia down 15 thefrom its recent high brazil down 10 . At what point does that prompt a response from Oil Producing nations. Venezuela as wellbeing hurt theyre all hurting, thats why with some of the ninemonth extension, some opec players are pulling back saying we cannot continue to keep these cuts going for another nine months. We have an economy, a country to run here the saudis have the cushion to do it, but not everybody else. Jackie, thank you very much for joining us oil down 4 yesterday. Stocks to watch today, Jabil CircuitGetting Better than expected results the apple supplier upped its outlook for the year. Western digital is seeking a Court Injunction to stop toshiba from selling its chip business a japanese government consortium is working to sell off the chip unit without its consent China Aircraft Leasing Group announcing it will buy 50 boeing planes bank of america announcing more layoffs as the company tries to cut costs the nations Second Largest Bank began handing out pink slips to employees in operations and Technology Divisions yesterday many cuts occurred at the banks charlotte, North Carolina headquarters. United technologies is upping its dividend to 70 cents per share. Utx paid a Cash Dividend every year since 1936. The annual yield is 2. 3 avon products, their ceo is expected to step down. This comes as the Company Faces pressure from barrington capital to find a new ceo. Ason shares are a big underperformer this year, down 27 . Chinese authorities have asked banks to suspend business dealings with anbang insurance group. The halting of deals would weigh on the firm. Last year 90 of the firms premiums came from Bank Distribution yesterday the chairman was detained by police anbang releasing a statement saying he was no longer able to perform his duties because of pernlt reas personal reasons some say this anticorruption probe led by xi jinping will boost shares the number of complaints by passengers on u. S. Airlines rose sharply in april this follows a series of high profile incidents including a man being dragged off a united flight the department of transportation says complaints spiked 70 from a year ago congress may take up the issue of passenger rights when it considers a bill to reauthorize the faa. Complaints and incidents have not hurt stocks. D has risen to highs. After months of back and forth talks and speculation, the big fight is finally on. Floyd mayweather jr. Says he is coming out of retirement to face Conner Mcgregor on august 26th espn is projecting how much money the fight could generate, with ticket sales at 77 million, payperview buys at 400 mi million. That still trays the they cant retire these guys they always say they will, but they cant retire. I dont know fizz the bunoknow r the money. Must be both. The grammys says they will now do online voting, in an effort to get younger people to vote i assume anyone can vote no you have to be accredited or part of the grammys to vote. Skittles is dropping its rainbow in honor of pride month. The company known for its taste the rainbow tag line is making its packaging in candy white with black writing skittles says during pride only rainbow matters, so we have given up ours to show our support. Interesting rational, i was going to say it is almost converse to expectation. You would expect them to celebrate the rainbow colors exactly starbucks and lady gaga are teaming up to bring in cash for the singers charity they announced a line of four gaga approved drinks the offers consist of the pink drink, the ombre drink and the two newest drinks, matcha lemonade and the violet drink. This mark assign of the times. For the longest times, starbucks stayed with what they knew, coffee, cappuccino, latte. Now theyre diversifying, making acquisitions im not sure they look that healthy. Must be a lot of artificial colorings in some of those perhaps by the looks of things. The eurozone must reform or die, thats the headline of one of our oped picks mustreads coming up as we head to break, a look at u. S. Futures. The dow pointing to a lower open by 68 points keep an eye on the nasdaq, down 1 in emprarket trade. Worldwide exchange will be right back welcome back to Worldwide Exchange. Im wilfred frost along with seema mody time for our mustread stories my pick is in project syndicate. The eurozone must reform or die. The question now is how to maneuver the eu out of the wet cement which it is stuck in. Though many european politicians are loathe to admit it, the status quo is not sustainable. Eventually there must be significantly greater fiscal integration or a chaotic breakup. Its astonishingly naive to think the euro will not face further real life stress tests over the next 5 to 10 years if not sooner i picked this one because it is important to remember how tough the situation for the eurozone still is yes, theres been positive political developments, most notably the election of emanuel macron and improving Macro Economic picture, such that everyone is optimistic but there are huge hurdles to overcome the most important one is, yes, it looks like macron has a mandate for reform, but will the germans allow deeper fiscal integration . This year things could look different again. Dont forget about geo politics with tensions rising in the middle east. Many say that could add more stress to those countries there. In the shortterm, europe, the outlook is improved. Were approaching the top of the hour the team is getting ready for squawk box. Joe kernen has a look at whats coming up. Good morning good morning. Perusing some of these headlines here tieing it to the futures, which its not a huge loss, but you never know when it opens weak like this, 62 points on the dow. When the special when we heard that the special counsel was going to look into the obstruction charges, i think after hearing Preet Bharara and seeing what happened, its not a huge surprise. If you have a special counsel, and theres a hint of obstruction, you know he will look into it youre seeing it in print. Who didnt know the fed would raise rates at this point. Its not that 400point loss we saw. I already my mind already has sort of what was that when they announced when comey was fired. They announced something portended big trouble for the Trump Presidency that might derail this rally that was unsettling, not to mention the poisonous political atmosphere certainly an illustration of how no one would want a political environment like this if they could choose i know im worried about scalise still. You get shot in the hip. You think that thats he got shot in the hip. Then it bounces around hits the pelvis, breaks bones there, hits internal organs. The poor guy still in Critical Condition. Our thoughts with him. Hes not out of the woods. Needs more operations. I would sell stocks today i guess, too i i agree with you all our thoughts remain with him and others affected by that shooting in terms of that selloff today, it is the nasdaq leading the way down again certainly is. Which is what you would figure the most vulnerable or most extended index we do have doug parker on for an hour the ceo of american. Did we used to not Pay Attention to what was going on i saw a 71yearold guy getting thrown down we used to not have social media . I guess. Every day its like is that true in england, wilf . The customer is always right have you ever heard that definitely. But whats baffling to me being a brit moving to america, the service in most Hospitality Industries is outstanding apart from the airlines where its the opposite its a tough business its tough you have to admit. You have to do things where ive seen people, i might have been one of the people at the ticket counter that says delayed or canceled . You cant do that. I can see how tough it is. Of course it is tough, but, you know, customer should still always be right. Any way, i look forward to that interview and much more on squawk box in nine minutes time great still ahead on Worldwide Exchange, thed digesting the fed decision, but a lot more could dictate what happens on wall street your trading day set up in two minutes. Excuse me, are you aware of whats happening right now . Were facing 20 billion security events every day. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. Theseare heading back home. Y oil can we do that . Thanks to dawn, rescue workers only trust dawn, because its tough on grease yet gentle. I am home, i am home, i am home welcome back to Worldwide Exchange im wilfred frost along with seema mody. Futures down again this morning. With us is Michael Gapen from barclays good morning to you. Is it the fed decision and the forecast yesterday from janet yellen that is leading to the weakness i think its a contributing factor yes. Its hard to look at a fed thats normalizing either front end Interest Rates higher, Balance Sheet runoff and think that wont weigh on equities to some degree. I think its a factor. Are investors missing a trick here we very clearly got forecasts from the fed, another rate hike this year, around about three next year. Thats not really priced in by investors. No, its not. The fed has a view that inflation will be stronger than i think the market does. I think the market is looking at some recent weakness in inflation saying its more than transitory its betting that at some point the fed wont fully execute on its Interest Rate plans. The fed continues to push markets higher and signal that theyll take action. The markets wont listen to the nearterm story there, but discount actions further out michael, how worried are you about the move were seeing in oil. 3 decline yesterday its down today. We have seen the impact that oil has had on the deflationary picture we were living in in 2015 i would say in regards to the u. S. , were worried about more than just oil. We do think weakness in inflation is more than transittory softness or wireless or prescription drugs. We can point to autos, many retail sectors, core goods are still in deflationary territory in the u. S whether its oil signifying Global Concerns or more domestic price pressures, its not all that clear that inflation is on track to return to the feds 2 target where does the dollar go from here throughout the rest of the year, remarkably soft and sort of resiliently soft over the last couple of months. Right there i think it is in part related to the inflation picture. The dollar was viewed as strong up until about yearend when we got changes and communications from other Central Banks in recent months the weakness has been furthered by the incoming data on inflation where we had three soft prints again, i think the market is saying, okay, the fed has a plan to get front end Interest Rates up to 3 in theory that should be supportive of the dollar versus other currencies the bet is that wont happen i think its being reflected in the value of the green back. Just quickly, 30 or 40 seconds left barclays more concerned aboutleh the stories weve been hearing about over the past week yes, i think so we never thought you would get large scale tax reform or healthcare reform. We were thinking it would be more outright tax cuts the more investigative pressures build, the less likely you are to get movement on any front on the trump agenda Michael Gapen at barclays, thank you very much for joining us this morning. Thank you thats it for Worldwide Exchange this morning the dollar has just rallied a bit in the last half hour. Up 0. 4 . Futures very much lower, led lower by the nasdaq, around a percent of declines for the tech heavy index. Thats it for wex. Thanks for loading, sweetie. Oh, burnton gravy . Gotta rinse that. Nope. No way. Nada. Really . Dish issues . Throw it all in. New cascade platinum powers through. Even burnton gravy. Nice. Cascade. Breaking overnight, President Trump reportedly under investigation for possible obstruction of justice a live report from washington. The fed hops are in contrhan control. The dow closing at a new high, futures pointing to a lower opening this morning, led by the someone once called it the tech heavy nasdaq. Oil prices hover near a sevenmonth low on supply concerns well tell you whats behind the move its thursday, june 15, 2017, squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning welcome to squawk box on cnbc. We are live from the Nasdaq Market site in times square. Im becky quick along with joe kernen and andrew ross sorkin. U. S. Equity futures, futures are under pressure dow futures down by 71 points after closing at a record level yesterday. The dow has been up for 5 out of the last 6 sessions. If you look at the s p 500 indicated down by 14 points. The nasdaq indicated off by 63 the tenyear yield, this is something to watch yesterday, the fed raised rates the yield on the tenyear falls. Yesterday it was at 2. 1 it was around the lowest level since midnovember this morning the