A very good morning and warm welcome. Im wilfred frost along with susan lee. Good morning susan. Sara is on assignment today on the other side of the world in taiwan. Sara, what have you got coming up for us this morning. Good morning, to you and good evening from taipei, wilfred. I miss you very much, but boy do i have a lot to share with you from this whirlwind trip. We followed steph curry if nba allstar from hong kong here to taipei. Hes here with a Business Mission to get star power up to sell sneakers in what is becoming the largest consume early market for the nba. More than 300 Million People playing basketball in that market alone. Weve got exclusive access to share with you from small courts where he played with fans of High School Teams here in taipei to the big stage in the Madison Square garden. Arena of 5,000 people watching him perform and retch a game of teenagers. He took about a million selfies with fans. He shared with us his vision for his brand at under armour and whats going to come next. We had a number of conversations with you. Bring you all that of. Plus steph having a little down with his wife. Its all coming up through World Wide Exchange and during the day on cnbc. A lot to look forward to. For now send it back to you guys in new york. Great stuff. She claims to be missing me. Shes alongside steph curry. It is a business trip. Under armour does need to catch up to nike. Absolutely right. Great set of interviews coming up throughout the day from sara. For now, lets check in on what the markets are doing at this hour. Yesterday saw a decedent rally. 30 to. 50 . Pushed back expectations of a rate hike once again. Been the theme for the last two or three days since the disappointing jobs number on friday. S p and dow called slightly lower. Nasdaq slightly higher today. Essentially we are flat in the premarket. The tenyear note did move quite significantly, given the size of recent moves relative to recent moves off the back of that data as well. We are below 1. 55. Dont forget we ended last week close to 1. 6 . Rate hike expectations the dollar slipped as well. Lets check in on europe. European, markets have gone underway. German production falling unexpectedly posting steepest drop in 23 months, looking at tepid gains across the board. Call it mixed with the german dax, maybe up 1 . Lets check in on asia last night. Mostly higher except for japan. Japan suffering through the stronger yen. Apparently there is a lot of dissension amongst the boj board in terms of adding more stimulus to the economy and going deeper into negative territory when it comes to Interest Rates. Shanghai comp as you can see falling by 1 . Broader markets oil prices manage to close in positive territory. Yesterday up 1 . Up just over 1 today. Wti at 45. 30. Lets move on to the dollar. It was a big mover yesterday. Particularly against the yen, which susan already mentioned. 1. 4 fall yesterday for the dollar. Stronger yen and same is true today, but by smaller margin. 0. H 0. 4 . Higher and in the face of that, the nikkei perhaps could have slipped more than it has because its been a big mover. Big unwind of what weve seen recently in terms of dollar yen. Today the currency markets as you can see a little bit more calm and not quite the big moves we saw yesterday. Gold prices, they got a little bit of a boost from the softer dollar yesterday. Not too significant. We are just above flat today. Lets get to notable comments from San Francisco fed president williams. Repeating calls for gradual rate hikes. Pace of increases preferably soon eer rather than later. Williams says the economy is in good shape. Sdpeet the recent slow down in jobs growth criticized Central Banks approach of targeting low inflation. Gives the fed too small of a buffer to fend off future shock. Markets not really listening to those comments. Focusing on data instead. Todays corporate news, activist investor blackmon hedge fund taking a stake in chipotle. Believes shares of the chain are undervalued. Plans to speak with management. This comes after a rough year for chipotle suffered from food borne illness outbreaks. Stock up nicely on the premarket. First addition to portfolio in nearly a year. The fund is in the red after a number of high profile disappoints. In order for agoman to by that stake, he had to sell off Something Else so he is now leaving Canadian Pacific board after four years. Helping to overhaul the travel that railroad after raking in 2. 6 billion in profit for the hedge fund. Announcement comes one month after sold remaining shares in Canadian Pacific. Bringing up 1. 5 billion of owned cash. We now know what he did with it. Speaking of well known hedge fund managers, we have a blockbuster lineup for the sixth annual alpha conference. Investor summit by cnbc. More details and tickets are available at delivering alpha. Com. The fcc announcing new rules for black rock. Allow the firms porter fofolio boar monies from peers. Put in the request last year. Van guard and fidelity are already allowed to provide similar lending. Under the new rules, black Rock Mutual Fund and Money Management can borrow a third without having to post collateral. The drug pricing drama continues. Recent debate over excessive price hikes laying out a plan to curve increases on companys drugs. In a blog post outline said the firm best known for making botox will raise prices on the products only a year and increases will be limited to the single digit percentage range. On a program note, well hear more about drug pricing when our own speaks to another name. Sit down with valeant chairman and ceo, 4 30 later today. Economic data the Labor Department puts out the month job opening or Labor Turnover survey. This includes the staff. Not normally details and employment reports. 2 00 p. M. We get the feds latest book survey and earnings looking for results from hp enterpri enterprise. Comes your way after the lose closing bell today. On the agenda today, Apple Holding big show in San Francisco. Expects to unveil iphone 7. Possibly a new version of the iphone watch. Reporter the count down is on. Apple ceo tim cook taking center stage for the big annual show in San Francisco. The focus of the event will be the new iphone 7. New phone will have a faster processer. More pressure sensitive home bu button. Higher quality camera. Remoouchl of the headphone jack. If it does, that could generate some controversy. Apple could argue that Wireless Headphones are the future and wants its products to reflect that trend. In addition to the phone, apple is expected to refresh lineup with new computers. Back to growth following two quarters of sales decline. Underpressu under pressure from wall street. How do you trade on apple launch day anyway. Looking back on a launch day, usually negative about 80 of the time. Day after trades up 70 of the time, but shares of apple if you take a look at the chart, up over 100 since the initial launch of the iphone back in 2007. Thank you for that. Other news on the agenda for apple today. The Product Launch of course the main focus, but Ireland Parliament will debate the decision to appeal the apple tax ruling today. Julia chattily joins us live from dublin with the details to expect on that, julia. Reporter that debate has actually just started just in the last few moments so its largely symbolic because the government has already decided to appeal this ruling. What we heard from the Irish Government last night too was if the appeal fails, they will except that 14. 5 billion from apple to basically leave the government caught between a rock and a hard place. Youve got the opposition parties here in ireland saying this is an example of the government cozying up to the big business at the expense of the irish taxpayer. Youve got the government on the other hand saying we have an investment story to protect and big businesses like apple provide one in six jobs here in ireland. The critical question is what do voters think. Ive been surprised just in the last 24 hours. By and large the people ive spoken to saying we back the government. They say we dont necessarily like the idea we are subsidizing apples tax sales, but the same time we like the jobs. We like the investment and we know thats critical for the recovery story here in ireland. Thats what you can expect the debate over the next few hours. And questions to be asked when i speak to it will irish prime minster in just a few hours time. We look forward to that interview. The exclusive interview coming up. The swing factor of this appeal is upheld is clearly 14 billion for apple. Whats the swing factor for the future of the eu if ireland successfully appeals this decision . Does it have bigger implications for attempts of the eu to claw back money from individual countries . Well, its interesting, isnt it. We dont know whether or not this is just the beginning. Will they start looking at is the likes of microsoft, google here in ireland. More broadly, of course, this is one of the least euro skeptic countries in the eu. Youve seen a real rally behind the government the idea that the eu is encroaching on individual nation powers. Theyve already given up independence on monetary policy. Are they now being forced to give up independence on fiscal policy. Far bigger questions for the eu not just on the basis of tax, but the power of brusselss and are they overreaching just the given beg beginning of the push back, i think. Still to come on World Wide Exchange, well head to asia. Sara is touring taiwan with steph cur rirycurry. Sara. Reporter it was a lot of fun to see steph curry greet his fans and play a little bachkt ball with them. Sit a Serious Business for under armour. Big bet on biggest global super star. Talk about the companys implications coming from behind biggest competitor nike been there for decades. Coming next on World Wide Exchange. Conversation with ceo, kevin plank. Well be right back. But with added touches you cant get everywhere else, like claim free rewards. Or safe driving bonus checks. Even a claim satisfaction guaranteeeeeeeeeee in means Protection Plus unique extras only from an expert allstate agent. Its good to be in, good hands. Welcome back to World Wide Exchange. Steph curry is touring asia and sara is there. She joins us from taipei taiwan with some of the interview. Reporter one of the reasons we came here is because were calling it is new front line for the sneaker world. That is asia. It will nba is the stop selling league. We talked to kevin plank the crow of under armour about what makes it a major opportunity from a consumer standpoint, that is basketball in china. Listen to what he said. Its relevant. The consumer is behind it and the government is behind it. Its a low entry. Its unique. Theres a difference between the way the basketball is played in the west and played in china. Youve got a billion people finding fitness and finding athleticism. Here its about expansion. I think basketball remains a massive opportunity. Its over 300 million chinese play the sport of basketball or fans of basketball. If you can crack the code on china, its a massive step forward. Its one you see from the under armour brand youll feel positive about. Youre throwing out numbers how your China Business as increased doesnt bother you your competitor has 4 billion worth of chinese sales. Theres red oceans and blue oceans. I like blue oceans. We see the ability here in china. Expanding the overall pie is what the opportunity is for us. Everybody is going to win. We know there will be some losers as well. Being a brand is not just we sign an athlete, make an athletic product. Build ale Flagship Store and sell it. Brand begins with more. Two things in every product, there should be point of view. Number two its personality. You know, i think thats what comes across. Things like having the steph curry tour. Having steph be a part of this. An athlete and really defining persona underdog im going to find a way and win. Thats an under armour story and great relationship between the steph curry brand and under armour. The stock price has stalled and slid this year. What skr you hearing from them. You have to run your company for the best interest of the company. So look stocks go up and stocks go down, but our company hasnt changed. I think we continue to underscore the real values of what will propel us is that under armour, we grew 38 . As we see the year, it will be north of 25 . We finish the full year. On a scale of building a 4 billion business. These are real numbers. From a consumer brand, if people are looking to have a growth company, which i think is on consumer basis, you know, were pretty compelling story. Thats incredibly unique in anyones portfolio. Investors that are looking for the next growth spurt out of under armour are looking here and looking international and looking at china opportunity. Just to put facts behind planks optimism about the market, according to site fanatics, nba merchandise continues to grow. 48 last season. Stefen curry in Greater China up 50 last season. That is way behind some of the bigger global names and those are nike athletes. Coming up im going to show you the biggest names in this part of the world and what they sell and what steph curry think bt about his competition. Thats awesome. Well look forward to it. Were going to take a quick break here on World Wide Exchange. Coming up next, todays top stories from the campaign trail. Including why venture capitalist says donald trump has taught us this years most important political lesson. First as we head to break, check on the weather. Were going to check in with the weather channels jen carfagno. Good morning, sara, susan, and wilfred. We have storms today starting in the upper midwest. Continue to be right across this area from iowa into wisconsin and even Northern Illinois by tonight. Including chicago. Big rainmaking thunderstorms. Hermine is finally out of picture. Breezy day today along the coast. Nothing like what weve seen. Getting moisture into the southwest from a hurricane that is making a second land fall in mexico this morning. See that moisture. Could be heavy rain. Could be flash flooding plus the heat is on. Heat advisory for places like detroit. Thats your latest coast to coast forecast. For the weather channel, World Wide Exchange continues after this. So many things can go wrong. Its my worst nightmare. Every second that power is out, my citys at risk. Siemens digital grid manages and reroutes power, so service can be restored within seconds. Priority number one is keeping those lights on. It takes ingenuity to defeat the monsters that live in the dark. And grease in just a minute on dirt and grime mr. Clean will clean your whole house and every room thats in it floors, doors, walls, halls hes so tough, he cleans em all mr. Clean whats going on here . Im val, the orange money retirement squirrel from voya. Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . More of a spokes metaphor. Get organized at voya. Com. Welcome back to World Wide Exchange. Now for the president ial campaign. Donald trump and Hillary Clinton will appear tonight in new york city. Not a debate and they wont be on stage at the same time. The hour long forum at the museum is cosponsored by cnbc and iraq and afghanistan veterans of america. The themes will be national security, military affairs and veteran issues. The audience will be primarily made up of vets and active military members. What weve been hearing from Hillary Clinton is she is slamming donald trump for his comments about the Federal Reserve. Speaking to reporters on her campaign claim yesterday that clintons fed policy should be off limits for those running for office. Another example of why he shouldnt be anywhere near the white house. You should not be commenting on fed actions when you are either running for president or you are president. Words have consequences. Words move markets. Previously accused the fed of keeping Interest Rates low in order to help president obama and on monday said the fed has create add false economy and Interest Rates should change. Peter thiel pending for the Washington Post outspoken Trump Supporters spoke earlier this year at the Republican National convention. His piece in todays paper is titled trump has taught us this years most important political lesson. The papal founder writing the establishment doesnt want to admit it, but trumps denial of republican dogma about incapacity is exactly what we need to move the party and the country in a new direction. He was wildly critical of too much Government Spending and thats why hes sayings most important political lesson. Sighting the fact mr. Bush spent more on the primary campaign and didnt win. Mr. Trump spent less and said the right things and did the right things in order to win. Lets talk about goldman sachs. Recently imposed a new rule banning partners donating to trumps campaign. Now considered restricted persons meaning they cant give money to candidates running for state and local offices or sitting state and local officials running for federal officer. Memo specifically uses trumps running mate mike pence of a prohibited contribution. Goldman is potentially removing itself from conflict of violates pay to play rules being considered by the fcc. Still to come top stories and a check on global markets. Plus apple fans buzzing about big product event this afternoon. Well talk expectations including rumors of a new iphone withoutaedheadphone jack. Stay tuned youre watches first in worldwide. Cnbc. Good morning. Markets now the dow on a threeday winning streak for the First Time Since late july. A test of loyalty. Apples latest iphone could cause some fan uproar. Plus sara in asia with access to nba super star seth curry and under armour ceo kevin plank. Its wednesday. September 72016 a, 2016 and you watching World Wide Exchange on cnbc. If a very good morning and warm welcome to World Wide Exchange on cnbc. Im wilfred frost along with susan lee. Good morning to you susan. Sara is on assignment today on the other side of the world in taiwan. More from her in just a minute. First, lets check in on what markets are doing this morning. Little bit of a rally yesterday. Around. 30 to. 50 . Disappointing ism data. Pushed back expectations. People pointing to december if at all this year. Allow markets to rally a little bit. As you can see today we are basically flat. S p and dow just below. Lets have a look at the bond markets right now. What are we looking at on the tenyear yield. Dropped below 1. 55 . Having ended last week close to 6. Did see Movement Across all Asset Classes in terms of when to expect that rate hike. Moving on, oil prices got a bit of a bounce yesterday. Dollar softened. Wti gained 0. 9 . Up about the same amount today. 45. 23 for wti. European shares have enjoyed the rally we saw on wall street yesterday and rallied themselves today. Moving. 30 or. 25 . Asia reacted slightly negatively. Down from what is happening on the u. S. Dollars front. The yen strengthened 1. 4 . The news that boosted wall street and helped boost europe today. All be albeit, we could have sea bigger move. Lets get back in taiwan. Shes been following steph currys asia tour. Hong kong to taipei. Reporter a very good even to you as well from taipei. Clearly nba fiver is fredding swikly in this part of the world. A high stakes battle to sell sneakers for the likes of under armour. Nike, after nike, adidas and many local manufacturers as well. Nike has been here for decades. Also has some of the biggest global nba super as far stars. I asked ceo if he feels intimidated by that fact. Heres what he said. We built or career on going against established brands so theres nothing new or different here. In addition to the two other major global players, tlrs a lot of local Chinese Brands that have some pretty entrenched businesses as well that, you know, we see our position different from the other global players. We see our position different from the local market as well. Under armour is going to be okay. Weve built a pretty good reputation. Got a pretty good play book. Requires own china nuance to it, but its one were confident we can execute and win. Reporter let me tell you the secret to under armours play book. Rising global star steph curry. Even despite popularity, if you look at the top global athlete, something espn put together a few months ago, youll find in the top ten, steph curry is not there. Its a number of soccer stars which make sense, they dont sell sneakers. When it comes to nba stars which is the other group makes up the top ten. Lebron james is right up there. Kobe number 11 and kevin durant in the top ten. These are players that have visited. Lebron is coming here in about a week. It will be his 12th trip to china. Kobes 11th trip. Steph curry, this is his second trip. Like under armour, coming in as the underdog with high of visions for this country. When it comes to steph curry, i talked to him about growing his vision. Wants to get into high fashion. More into the sneaker head type of market. Right now look at performance brand, which sort of laughed at because i brought up the dad shoe that went viral a few months ago. Remember that white shoe that a lot of people mocked on social media i asked steph if that was a painful experience. Heres what he said. That was amazing because i obviously thought the stories and tag lines were kind of funny. The dad shoe. For me, having people wonder whats next, whats coming out. So are there going to be more dad shoes. I wouldnt call them that, but there will be more white based shoes that will be open for interpretation. Hes defending the style despite the mockery on associate immediate and guys it was one of the better sellers, even with all of the ridicule that those shoes got. We did have a chance to talk about the new foray. Something nike has really mastered. Getting the jordan brand around the corners. Collectibles its something curry sees as a vision for himself. Its a longterm plan. Really how he views the china and International Expansion of under armour as well. The company and curry very much aligned in strategy and early position in the marketplace and in sneakers in general. Sara, you mentioned the stats before under armour growing fast in the region. Steph curry merchandising growing fast in the region. Albeit from a small base. What about the china consumer environment more broadly. The china slowdown we often talk about. I asked kevin plank about this. We talk about it constantly, youre right. Chinas growth is the lowest its been in years, but like so many other chief executives we talk to and Consumer Companies think tim cooke of apple or howard shults of starbucks, this is a long game. Its not even five, ten years. Its decade were talking about. In what he said under armour could become the top brand in china. Thats very ambitious. Its a long game and like so many other u. S. Executives, i find it interesting they play down the near term concern, the noise we get quarterly. Its just they tune it out. Theyre here for the long game and theyve got their own strategy, and it is built around steph curry. Sara, great stuff. Jealous of the trip. Youre nailing it. Thank you very much to sara eisen in taipei. Apple is hold an events. Not including jack for headphones has music lovers on edge. Check out what the options are available for you. Eric, what are we going to do. I took a look at some of the different headphones. We know doing away with the universal headphone jack more importantly own headphones for getting a new adapter or going wireless, which is what i decided to check out. Sglrm its really akno. Its really annoying. If the rumors are true, apple will put an end to that mess. Put them through an unscientific test of my own. How am i going to connect. First up, the connection test. How long does it take to get your phone to talk to your new headphone. Oh, if i hit this button, a bunch of lights light up. Now its just doing the circle thing. Oh, is that the button. Its connected. Maybe theres no button. The results the least expensive pump two, only two 40 seconds to connect. The twice as expensive took twice as long to connect. If im forced to go wireless, might as well get distance out of these things. Right. Here hold this. Thanks. Oh, yeah. Really choppy. What a trav si. You dont want to do that to a good katie perry song. It let me go eight full car lengths before losing audio. Listening to music is one thing. I have to make phone calls. Im expecting a few right now. It says its on the beet. I hear you here. Can you hear me now . What if i talk like this. It makes a difference if theyre forward or backwards. For phone quality, they got the highest grade. The pump two barely passed. It will fitness test. How well are these going to stay in my ear. The beats pass. The boez not so much and both i put to the test seemed to hold up. Youll have to charge them every day. Youll run down the battery faster because bluetooth. They might be creating a few more. Lots of rumors because those criticisms, ai eats up your battery and if the connection is not quite perfect, the cable therefore would be better despite the tangles. Rumors apple may well be introducing their own apple brand. One version is if i can borrow your phone, you can plug into the charging port, but then you cant charge your phone. You can only do one of the two, but not the same. A lot of people want to charge and listen. That case youre still got the corded headphones, but are you going to buy headphones that are meant for iphones and other things. Not going to work on your iphone without an adapter. At some point youre splitting the world into two different systems. And for beats. Around 3 billion. Raise more sales. Apple branded beats headphones you have to buy for the new phone. The business as the iphone, that valuation is way more than 3 billion. If youre trying to help this small part of your company when the biggest part is iphone. I dont know how thats going to average itself out. Thats the top of the agenda for the apple event later today. A lot of other potentials as well. Well just have to see. Struggling in terms of getting the stock prices to move up. We love that segment there. Katie perry and final count down. Either way, i liked it. Still to come on World Wide Exchange, much more from sara going oneonone with nba super star steph curry. And wilfred in the middle of a million selfies, curry did sit down with us. A number of times actually. We got his thoughts on how he views the china market. His vision for his brand, and, of course, the topic everyone is talking about, the start of the season coming soon with kevin durant on his team. Thats all coming up on World Wide Exchange. [engine revs] [cheering] the highly advanced audi a4. Welcome back to World Wide Exchange. Nba star steph curry touring asia this week with under armour and sara is there for us. She joins us again from taipei taiwan. Sara. Reporter well fred, weve been talking all hour about the Enormous Growth opportunity that china represents to under armour nike and adidas. Behind under armour is steph curry. We followed him and asked why the market was so unique and how he was thinking about the potential here. Listen. Basketball is booming and its not just under armour standpoint, its about the game itself and kids going out and playing and being inspired by what we do on the court. To be able to come over here in our short little window and be able to get out and get face to face with fans, its definitely important. Reporter has that surprised you to see nba here. This trip has been extremely eye opening. Ive been to china three straight summers. Been to different cities. This year just going over the top with the support and turn out and passion around what i do personally on the court, but you can tell the game of basketball is healthy. Lebron, kevin durant, theyve been in this market, kobe bryant for decades with nike. Does that drive you to be more aggressive here. Yes, we want to create our own story and thats something that we want to be authentic to who we are as a brand, who i am as a player. Hopefully thats something that can reach a bunch of people. They opened the doors and allowed basketball to become popular. With my story and how things are going, i want to be able to share that with fans here in asia as well. Whats your story. What makes yours different. Just the creativity and imagination i have on the floor. None of this was ever planned or guaranteed. A lot of hard work goes into it. A lot of effort from not only myself is teammates ive had along the way, coaches along the way. Inspire kids to have faith in themselves and confidence no matter what the skill lifl is. No matter what the physical stature is. What is kevin plank going to do when he comes out and watches you in warriors game. Hes going cheer for me, for our team to win. And will whatever it takes for that to happen. Reporter so curry played that down. Now that kevin durant is joining the golden state warriors, theres a little bit of under armour versus nike rivally. Durant is a nike athlete. You might remember during the finals last season, it was a classic under armour team matchup. Lebron james, under armour versus nike. We were even watching the stock price. Now a little bit intrateam. Matter who is makes the last shot or who makes the most shots. Something i asked plank about. He said its still stefens team no matter what. He wants them to do well. Clearly playing that down. It is different from the eyes of investors who look at athletes that carry the brands. And watch the stocks during the game. Steph curry, kevin plank, hong kong, taipei. Its been a great trip. Whats been the main take away. The best part i would say is just seeing seth curry in particular out of the normal nba game. Getting to know him a bit and thiz thoughts on business and the ambition for the brand outside of just performance sneakers and getting into the sneaker head fashion industry and thats something that under armour wants to do as well. Theyre coming back to new york to participate in new York Fashion Week for the first time. Launching a new brand, uais. Curry was wearing it during interview there. Also want to get out of Performance Mode only and into more of the ath leisure where at a time where ath leisure is on death watch in the consumer industry. Everyone is wondering if it has peeked and whether the trend is fading. Something clearly they have played down in this conversation with me. Its somewhere where under armour wants to be and curry wants to be individually. Thats a big part of what i talked to him about. Also a lot of good moments ill share with you throughout the day. Not just on the basketball court. For now i send it whaback to yo more from the exclusive interview on the tour with kevin plank and steph curry in asia. Approaching the top of the hour. Team is getting ready for squawk box. Andrew ross sorkin joins us. Looking to see more sara in china. So we got that coming up, but in addition to all of that, michael dell is going to be on the program in the 8 00 hour. Of course completing deal with emc. Talk about that transaction and ha happened to dell as a private company so thats a big interview were going to have around 8 00 a. M. Also the author has a new book. Hes going be joining us. One of our favorites on squawk. A lot to talk to him about. Talk politics. Senator john is going to be with us. And, of course, talk apple. Apple. Apple. Given the big news later today about what well see. What the phone or whats in the phone or not. Thats what is on tap. Andrew, great stuff. Look forward to squawk box in a little over ten minutes time. Were going to go to break here. Coming up the dow is on a threeday winning streak for the First Time Since late july. Talk markets with bill orlando coming next. In a programming note, dont miss wilfreds live interview with a bank of america ceo. Catch that live on squawk box tomorrow on 7 30 eastern. Youre a busy man, arent you. Arent we all on cnbc. Lots to come on World Wide Exchange. Were back in a couple of minutes. Whats it like to be in good hands . Like finding new ways to be taken care of. Home, car, Life Insurance obviously, ohhh. But with added touches you cant get everywhere else, like claim free rewards. Or safe driving bonus checks. Even a claim satisfaction guaranteeeeeeeeeee in means Protection Plus unique extras only from an expert allstate agent. Its good to be in, good hands. Welcome back to World Wide Exchange. Is s p and dow expected to open jups negative and the nasdaq positive. Saw about. 30 to. 50 of gains. Joining us now, chief strategist and management. Thanks for joining us. The last couple of weeks been an issue of bringing forward fed rate expectations and yesterday the job number. Its been pushed back again. Whats your latest expectation. Tremendous amount of complacency going on in the market. You look at what came out of the fed in jackson hole. Yellens speech. Fishers speech. Trying to talk you have september. Certainly the process of one, maybe two rate hikes over the balance of this year. Yet the data from our perspective doesnt support that. You have both over the last couple of days. Auto sales down month over month. July retail sales break even. Labor market miss. Look at the key metrics we study and not sure how the fed can make the case to make a fed rate hike right here in september. Expectations dropped yesterday as well. Maybe a thinking they might go in september. Taki taking a look at the equity, should the banks be priced where they are. Part of the reason of the rally in banks over the last couple of months is the expectation the fed is going to get in gear and raise rates. If those expectations are sl lowered, that should take the bid away from dpnl stocks. Stocks are priced to perfection here. Hit an alltime record high in the middle of august. Wouldnt be surprised to see an air pocket if it continues to disappoint. Is it going to be an air pocket. August and september has set to rotation. Maintain taned steadily at some of those highs. Also in the face of Falling Oil Prices and other factors you might expect to derail the market, we havent seen it derailed yet. Weve seen tremendous amount of rotation over the first course of the year. First half was the safety dividend trade then july 1 someone priessed the button and its been a risk on trade. If we continue to see Economic Growth and corporate earnings disappoint, some of the positive expectations built into that more sickle cal trade may come out. That i may serve as the basis for an correction in the air pocket here in the quarter. You cant talk sick cals without talking tech. We have an event in california. Are you expecting anything of that to change. Were not expecting anything major out of apple in terms of what new features are they going to present. To some degree, may serve as disappointment. Well have to see. From our perspective, stocks are priced to perfection right here. Seems like a lot of things could go wrong over the next couple of months. In terms of things that go wrong, is the election is something you factor in. We would put that at the top of the list. The uncertainty regarding fiscal policy in 2017 and beyond is something the market is not focusing on at all. Theres an expectation that mrs. Clinton is going to win, but no stand in what sort of fiscal policy were looking at. Mark cuban yesterday said if trump wins, the markets will surely tank. Do you agree. I think certainly there is a kneeje kneejerk reaction down based upon the uncertainty with mr. Trump. At some point someone is going to have to sit down and look at the difference between fiscal policies. Ting debate starting september 26 will be so important. What are the two candidate going to bring to the white house if they should actually become president. I think the markets are going to have to evaluate that. Great stuff. Thanks for joining us. Phil linden of fed rate ee een investors. Squawk box is next. Change , change your life. Change to tempurpedic. Now thru september 11th upgrade and save on select tempurpedic mattresses and adjustable bases. Hey, jesse. Who are you . Im vern, the orange money retirement rabbit from voya. Orange money represents the money you put away for retirement. Over time, your money could multiply. Hello, all of you. Get organized at voya. Com. Good morning. Bill iekman taking stake in chipotle. Break down the rumors about the new iphone and tell you what surprises tim cook may have in store. News from the campaign trail, Hillary Clinton criticizing donald trump for his comments on the Federal Reserve. Wow, she probably wouldnt like what a lot of us say and half our guests say about the Federal Reserve then. It is wednesday september 7, 2016 and squawk box beginning right now. Good morning, everybody. Were ready to go. Hope you are too. S p futures off by 1. 5 and the nasdaq down by i dont know because that board is bigger than usual and its being covered. Overnight in asia, see where the nikkei has been setting things up. Closed. Shanghai was flat. And the hang sang was down. If you take a look at the early trading in europe. Yooel see at least at this hour, things are relatively flat. Dax is up. 25 . France cac is flat as is the