Im wilfred frost. Im seema mody in for sara eisen today. I was thinking you do the introduce, wilfred. Sorry. I left it up to you, its great to have you with us. Good morning to you. Lets get straight to the market picture this morning. It comes off a day yesterday where we were pretty sharply down at the open. We were down about 0. 2 midday, but ended down only about 0. 2 for the dow. The nasdaq was slightly positive. Banks certainly had led the markets. They also led the rebound somewhat. Either way by the sector performance, telcos were the worst. Healthcare the best. That performance you can see in the bank index. At one point we saw significant decliners there. A couple percent for certain banks leading the index down, the market down, but they did recover by the end of the day. Yield curve had a huge impact on this. We did see a low on the tenyear note at one point yesterday of 2. 34 . Back close to 2. 38 , back near that 2. 4 level. That, of course, has had such an impact on what the banks have been doing. Those two factors, the yield curve, bank stocks very much linked. The banks leading the general impetus for the market which is why we ended less poorly than we started the day. If we go back to the futures, slightly positive. A bit of a rebound, albeit nothing too much to get excited about. Called higher by 20 points. Asian equities, a tough start to the week with a decline of 1 on monday. On tuesday, a different story, at least for the japanese nikkei rebounding by as much as 1 . After hitting that sixweek low on monday. A lot of this having to do with the yen. We did see a broader rally in the japanese yen last week. That continued yesterday as well. But a brief pause at this moment. The hang seng higher by 0. 6 , and the Chinese Market, despite some optimistic data on trade, shares there slightly lower on the day. If we look at european stocks, also a tough day responding negatively to the failure of the healthcare bill here in the u. S. A mixed day of trade on tuesday with the ftse 100 basically flat. The dax higher by 0. 6 . France slightly lower. Spain seeing a bit of green. The thing to point out with international markets, european markets, whilst year to date the picture is similar, german index up 4. 5 , 4 gains for u. S. Markets, the difference month to date, european markets despite this recent last couple of days of selling still up. Germany up 1. 4 for the month as a whole that just explains another little reason for why weve seen this negativity in u. S. Markets, but not necessarily around the rest of the world. Just different evaluations. Its not a monstrous selloff in the u. S. Weve been relatively resilient, bouncing back, but trades are more attractive elsewhere around the world. Despite worries of protectionism from the white house. That view dimmed a bit, but that also helping stocks around the world. Definitely. Just a good explanation of why people dont need to get too worried about the selloff. People just rebalancing the portfolios. Lets look at broader markets. Oil prices which are down much more sharply for the month, oil down some 11 for the month. It was off about half a percent yesterday. Rebounding by the better part of 1 today. 48. 1. Lets look at the dollar. A big mover yesterday. I mentioned yields already, which slipped significantly, the broader dollar index yesterday was down 0. 4 . Its down nearly 2 for the month. Down nearly 3 for the year. As we were discussing yesterday, wiping out significant amounts of the post election rally that we saw at the back end of last year. Today the dollar pausing for breath, flat against the euro and yen. The pound continues its rise, up 0. 3 , as we approach the invoking of article 50 which takes place tomorrow. Looking at gold, the safe haven there, that was in popular demand yesterday as investors flocked to the safe haven assets, not just the japanese yen, but gold also getting a bid. Today down by 2. Now to politics. President trump will take aim at former president Barack ObamasClimate Policy by seeking an executive order today on climate regulations and protecting american jobs. The move suspected to trigger legal and political pushback. Reports on housing and the kochb tsuna consumer in focus. The caseshiller home price index is out at 8 00 p. M. Several fed officials are speaking today including janet yellen. We will also hear from esther george, rob kaplan, and jerome powell. Dallas fed president kaplan yesterday said he will support further rate hikes if positive economic signals continue to increase, but cautions they will flatten as they head towards the 2 target. Dont miss Steve Liesmans interview with Stanley Fischer at 1 30 p. M. Eastern on power lunch. A lot of fed talk. I said i think yields are a big factor. Friday we did not see a selloff despite politics disappointing. It man nested on monday and in the morning when yields are moving. Politics is linked to the yield curve, and whether we will get this full, shiny trump relation delivered or not. If we look at the last couple of weeks, the fed was the other big factor that sparked the flattening of the yield curves from above 2. 6 to 2. 5. The move from 2. 5 to 2. 4 is politics related this Stanley Fischer interview and other fed speak is important to sort of gauge whether theyre equally disappointed with the slipping in politics or whether we could still have three hikes n which case we have more room for that reflation trade to pick up fwan. Its interesting to s ing ti politics and monetary merge. Here we are much lower a big move in tenyear, something to watch, especially when it comes to the banks. We are watching shares of dard then mornien this morning announced an acquisition last night. Landon dowdy has more on that. Reporter Darden RestaurantsThird Quarter results beating expectations sending shares higher by 4 . They posted earnings of 1. 32 a share on revenues of 1. 1. 88 billion. Darden announcing it will be cheddars scratch kitchen for 7 780 million. The orlandobased restaurant firm expects the transaction to add to earnings by 2018. This is the first time darden has bought a restaurant brand since 2012, and cheddars should be a nice addition to its other casual dining chains. The chains continue to gain market share outperforming the industrys comparable sales. Samestore sales increase being a percent for the quarter, topping expectations. Olive garden climb being 1. 5 . Back over to you. Thank you very much for that. Red hat reporting higher than expected earnings. The forecast also topping wall street estimates. Shares of tesara getting a bump after its drug for the treatment of Ovarian Cancer may also be able to treat other cancers. And red mountain is asking deckers to seek a sale. Ericsson taking a larger than expected restructuring hit as it realigns its Business Model under a new ceo. The restructuring charges will be twice than forecast as it reveals a new organizational plan. Ericsson off about 1 in swedish trade. Airlines agreeing to pay 0 200 million for a stake in chinas southern airlines, thats American Airlines. They will expand commercial corporation in sales, and cosharing. The deal requiring approval from regulators. Yesterday we saw bigger moves based on what the expectation of the price would be. China southern giving up 2 . Synnex beating revenue forecasts. Shares down about a third of a percent. Coming up, a new poll predicting farright candidate Marine Le Pen will win the first round of the French Election but not the second. Well get details on that in a second. First, dont miss sara eisens exclusive interview with yums ceo greg creied. You can see that later this morning. Stay tuned for more Worldwide Exchange. Pandpop what do you think . My tradeoff analytics indicate no one creates more space on offense. This allows him to nail a jumper from a densely populated urban area. What youre trying to say is. From way downtown . I am still learning. I can see that. With e trades powerful trading tools, right at your fingertips, you have access to indepth analysis, level 2 data, and a team of experienced traders ready to help you if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade. Start trading today at etrade. Com welcome back to Worldwide Exchange. A market update. Yesterday we were down by about 0. 2 on the dow. That was mid to late morning. We recovered by the end of the day, such that the dow was down about 0. 2 . The nasdaq just slightly positive. Banks had been the laggards at the early part of the day but helped in the recovery later on. First, lets look at futures this morning. Expected to open higher, not by much. A slight bit of green on the screen, 0. 1 , or 13 points for the dow. I mentioned yesterday how banks had led the market lower, but then recovered by the end of the day. So much of that has to do with what the yield curve is doing. Heres a one week chart of the tenyear treasury note. You can see how late on friday, early on monday, centsly over t essentially over the weekend, the yelled sold off, the low yesterday just about 2. 34. By the end of trade, 2. 4, 2. 38. That having a huge impact on what wider market was doing, particularly banks, which have been leading the direction every day over the last week or so the tenyear note today 2. 38 . Making headlines, a new reuters poll suggests farright candidate Marine Le Pen would win the first round of the french president ial election if it was held next sunday with 25 of the vote. But in a twoway decider vote in the second round, the poll shows that le pen would then lose to centrist candidate emanuel macron, with macron taking about 62 . Again, this poll shows that le pen would do well in the first round but not as well in the second round. Still much better in general than the market or we all thought six months ago. Similar to what we saw in the u. S. President ial election. The key thing to focus on is the second round vote. On may 7th. No one will get 50 in the first round. Its 60 40, which ever poll you look at. Thats a big spread for le pen, the rightwing candidate, the antieu candidate to make up. Polls have been wrong already in the past couple of years. So much again will come down to turnout that is what we learned about things like brexit. It wasnt so much what the polls were saying, its how much did each person turn out their core support. Right. If le pen can do that that can get big swings. The reason i bring that up, something that we learned over the weekend with the regional german elections, which was really a debate between two pro european people either way. Centrist left, mr. Shultz, or center right, angela merkel. Merkel did much better than expected on high turnout. Even though the german vote was not about an afd and the antieu party in germany, it just shows when turnout is higher than expected, the polls can be wrong. Either way, 60 0 40 is a massiv gap. In general, French Election, the german election, a test of this populist fever were been seeing around the world. Now, tesla and spacex founder elon musk is launching a new Company Called neuralink, which will specialize to electrodes connected to the brain which will upload and download thoughts. Musk believes the only way for us not to become irrelevant in the future is become immersed with machines. Spacex and tesla not enough, now hes going after the human brain. He has made this point in the past, that the human brain still cant compete with ai, Artificial Intelligence and that our brains need Technological Advancement to fight off the threat of ai. Hes trying to now mend that gap, or bridge the divide. Well see what he can do. Keep in mind comcast, the parent of cnbc plans to rebrand and expand a streaming video option for broadband customers who dont want a traditional cable package. Reuters reporting the service, called xfinity instant tv, will cost between 15 and 40 a month and include Major Networks and addon options for sports and Spanish Language channels. The service is expected to launch in the Fourth Quarter in philadelphia, washington and chicago. Its official. Amazon announcing its reached an agreement to acquire souq. Com. The deal is suggest to closing conditions. The terms of the deal not disclosed at this stage. Credit suisses ceo says the bank will finalize Capital Raising plans as soon as possible. But the executive did not give a specific time frame. Media reports last week suggested Credit Suisse was considering a Capital Increase of more than 3 billion. In pharmaceutical news, a new study says the amount mylan avoided paying the u. S. Government in medicaid rebates for the epipen likely receives the 4 475 million settlement th Company Proposed last year. Mylan avoided paying 4 426 million in rebates between 2012 and 2016 by classifying epipen as a generic. Mylan has not commented on the study yet. No move in the stock price this morning. 41. 72 for mylan shares. Former valeant Ceo Michael Pearson is suing the drugmaker over an unpaid stock award. Hes accusing the company of refusing to pay him more than 3 million shares based on valeants Closing Price yesterday, those shares have a market value of 33 millions. Coming up, President Trump takes aim at obama era Climate Policy. A live report from washington next. As we head to break, heres the National Forecast from kelly cass. Good morning. You still need the umbrellas in the northeast, damp, dreary weather continues. New york city, boston, philly, d. C. Looking at the chance for rain today. Temperatures in the upper 40s. You need that nice, thick raincoat to stay warm. A few storms in atlanta and across the south, right here across the southern plains, oklahoma and texas, this is where we need to be on guard for strong damaging winds, really big hail and, yes, even the chance for tornadoes. Denver could get in on some thunderstorms. Temperatures in the mid 40s. Across the west coast, we are dry from phoenix out towards l. A. Temperatures warming up to 80. Staying cooler up in seattle, you do have that chance for showers. Thats a look at your national weather. Well be right back. No matter how the markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. 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. Democrats calling for the house intelligence chairman to recuse himself from President Trumps campaign and transition. Tracie potts joins us from washington with more. Reporter thats because of new information coming out about how the chairman got the classified information, his colleagues say how he went about getting it and what he did and did not do with that information could jeopardize their russian investigation. After his secret trip to the white house grounds, Top Democrats want the House Intelligence Committee chair to step down from the russia investigation. Just has too much called into question whether he has the objectivity necessary to oversee the investigation. Reporter chair devin nunes says he saw classified information that could not be brought to his committee and that it had nothing to do with russia. Nobody was sneaking around. All it was was a place where i had to go to be able to review this information. We dont know what mr. Nunes is talking about. It seems more than suspicious that hes going to the wous. Reporter nunes briefed the president not its a colleagues. The senate Intelligence Committee now wants to talk to mr. Trumps soninlaw, jared kushner. He meant with countless individuals that was part of his job. Reporter President Trump tweets the russia story is a hoax. Today is he shifting focus, signing an executive order to create more jobs for coal miners and review president obamas policy on cashrbon emissions. There was supposed to be a hearing today on capitol hill with the Intelligence Committee, they were bringing in the fbi and cia to talk about this publicly, chairman nunes canceled that hearing. Thank you for that. Now to sports. The Oakland Raiders are headed to sin city. Nfl owners voted yesterday to approve the teams move to vegas. Raiders fans gathered at the famous welcome sign to celebrate. The team has been in oakland for 44 of its 60 years in existence with a 13year stint in los angeles. The raiders wont move until the 2019 season. A nearly 2 billion stadium is being built in vegas. The team will pay 500 million financed partly by bank of america, the rest coming from a hotel tax passed by state lawmakers in nevada. Another big franchise move. Yeah. And to vegas. Kind of exciting. Well have to make a trip there. Got an excuse. The top stories and a round up of the Global Market action is still to come. Plus elon musks new venture, how he plans to connect your brain with a computer. Well be back in a couple minutes. New bikes arent selling guys. What are we gonna do . How about we pump more into promotions . Nah. What else . What if we hire more sales reps . Nah. What else . What if we digitize the whole supply chain . So people can customize their bike before they buy it. That worked better than expected. Ill dial it back. Yeah, dial it back. Just a little. Live business, powered by sap. When you run live, you run simple. Good morning. Markets now back in the green after the longest losing streak for the dow since 2011. A round up of the Global Market picture straight ahead. Central Bank Speakers are out in droves this week. On todays agenda words from janet yellen. And delta takes a swipe at united over i leggings policy. All those details coming up this tuesday, march 208, 2017. Youre watching Worldwide Exchange on cnbc. Good morning. A warm welcome to Worldwide Exchange. Im wilfred frost. Im sara eisen, good morning to you. Lets get straight to the Global Market picture it comes off a day where we were down around 0. 2 midmorning yesterday. The banks leading the charge lower, but recovered late in the day. Ending with a slight gain for the nasdaq, slight declines for the dow and the s p. This morning, as you can see, called higher on all three indices, albeit slightly. The doi w expect the to open up about 18 points. Oil prices have been on a significant slide this past month. Down some 11 for the month of march. They fell about a half percent yesterday. Bouncing back to the tune of 0 0. 8. The treasury note has been a key gauge for markets, closer to the 2. 4 level. We hit 2. 384 yesterday. Banks leads the direction of the markets yesterday. Another key thing to keep an eye on throughout today and indeed in the weeks ahead. The tenyear treasury note yield, at 2. 3 recovered from the lows of yesterday and a reason why markets are looking a little more pretty this morning than yesterday. Dollar board down around a half percent yesterday. Paused for breath today. The pound gaining against the dollar. Both the euro and yen essentially flat today. The dollar slide pausing somewhat. Gold prices just to round things off for you were off slightly today. They have gained slightly yesterday. No real movement, 1253 the price of gold. The failure of the healthcare bill did have a did have global implications. We had a tough start for the week. Asian markets closing down yesterday. As you can see today, regaining some composure. The japanese nikkei at 19,202, up by 1 . This as the japanese yen steadies a bit, gaining ground here against the u. S. Dollar. Hang seng higher, the Chinese Market lower. As for europe, lets head to london and check in with louisa bojesen. Good to see you. Hi, good morning. Good to see you. Well, this morning we were called higher, we came off a tad in trade yesterday. So some delicate buying back into almost all of our sectors this morning. Right now were even stevens on the european markets map as seen here. A split down the middle with autos pulling up, media higher, telecoms and real estate the two sectors pulling lower. Some bigger movers out there you have bigger stories like shares in ericsson. The swedish networkmaker sliding on restructuring processes. They are saying the costs related to the plan will be double had whwhat had initially forecast. They unveiled a new organizational structure. They have been hurt by increased competition. Seen a lack of demand for wireless products. Lets talk about tesco, closer to come here. Two of the top shareholders have gone public with opposition to the british supermarkets bookers deal. Sha roaders and Artisan Partners say they think 3. 7 billion pounds of that deal, thats too expensive and badly timed. You can see the share price, booker group off by 1. 5 . Tesco a tad higher. They urged the ceo of tesco to abandon the tieup. He said he is pleased by the response by in large from investors. Back to you. Thank you very much for that. European trade, slightly positive overall now. Back in the u. S. , reports on housing and the consumer in focus, monthly caseshiller home price index out at 9 00 a. M. , followed by march Consumer Confidence at 10 00. Several fed officials speak this afternoon, including janet yellen, george, rob kaplan, and jerome powell. As for earnings, well hear from carnival this morning, dave bust ers after the close. I went to the first dave busters in times square last week, lots of fun. Dancing, fun. Everything you need, arcade. Arcade is old school. It brings out the youthful side in you. And also slightly geeky, on a friday night . Was a date night. It worked. All right. Some stocks to watch this morning. Darden restaurants posting better than expected quarterly results. The company also announcing it will buy cheddars scratch kitchen for 7 780 million in cash. Shares of red hat trading higher. The Software Company reporting earnings in line with expectations on better than forecasted revenues. And tesaro winning approval for one of its Ovarian Cancer drugs. Shares rising sharply. The company is also expanding its development of the drug to treat other cancers. Shares up 5. 8 . Red mountain is pushing Deckers Outdoor to explore a sale. The stock is underperformed largely due to poor Capital Allocation decisions. Deckers is up 2 on the back of that. Synnex also beating revenue forecasts. Shares down a bit. And American Airlines buying a stake in China Southern airlines. It speaks to a significant pickup in volumes of internal flights in china in the last year. Share price re5 shin of China Southern down 3 . Lets talk retail now. Walmart is restructuring its Technology Group in an effort to strengthen its mobile business. Three senior i. T. Leaders have been promoted to oversee units for customer systems, analytics and technical engineering. The moves are aimed at aligning technology to the way consumers are shopping using mobile apps to check out items, navigate stores and buy online to pick up in stores. This is also trying to fend off competition from one of the biggest rivals, amazon. Who bought souq. Com today. Akzonobel saying it will detail its strategy and intending to remain independent. The dutch paints and coatingsmaker trying to avoid a take joefsh by takeover by ppg industries. They say they want to sell or float its chemical division. Shares down 0. 1 . Some media news, hna group is reportedly in talks to buy controlling stake in forbes. Reuters says hong kong inve Investment Group iwm, which owns 95 of the company is in talks with another Chinese Media firm and is seeking more potential buyers. Hna has reportedly been in talks for several weeks on a deal worth about 4 400 million. The sale would come three years after the Forbes Family gave up their controlling stake. If i can make a broader point. Its interesting. We have seen a slowdown of chinese outbound m a, a lot of that having do with the governments restriction on capitol outflows and companies putting their money to work in other parts of the world. Its interesting to see this deal. Not so much outbound m a, but just this interest from china in diversifying, but whether the government will let them do so. Yeah. I think the other thing to point more broadly on, thats the currency has been much more stable recently. That could in the medium term lead them to relax some measures they had in place on that front. Other corporate news, ge disclosed a sale of its Consumer Finance business in france. This marks the last mangjor closing in the ge Capital Assets plan. It looks to focus on highvalue industrial business instead. The share price not doing much. In the uk, the new 12sided onepound coin will go into circulation. It replaces the old round one thats been used for more than 30 years. The new quid features hidden security features that makes it difficult to counterfeit. The old coin will remain legal tender until midoctober. Can you explain to people, you are the brit here, why they call it a quid . I lived in london for one year, thats just 2 quid. When that word was in the script, i did smile, our fantastic producers putting it in to amuse me. I dont know the origin of the word, but youre right. A slang term . A slang term. Used more often than the word pound. In the same way you use bucks. Equivalent to bucks. 7 quid, please. I use that more often. I dont know the origin of the word. Speaking of coins, a gold coin made in canada worth an estimated 4 million was stolen from a Berlin Museum yesterday. The pure gold coin weighs about 220 pounds and is named big maple leaf. On one side it has the image of Queen Elizabeth ii. Maple leafs are on the flip side. It has a diameter of 20 inches and is an inch thick. It has a face value of a million. The high purity of the gold increases the value to 4 million. The rally weve seen in the price of gold also increases the value of this already very valuibilivalu valuable coin. Very interest tock see this heist is possibility in this day and age with all the technology out there and the security surrounding such a valuable coin. It happens. Sure it does. Humbling experience. Well see what happens in the rest of the story. Our top trending stories. Delta taking a swipe at United Airlines by tweeting flying delta means comfort. That means you can wear your leggings. The tweet coming from delta after united barred two young girls from a flight for wearing leggings. We should add the reason they were barred, of course, is because they were traveling on a specific free ticket that had some clothing restrictions. We have debated this at length on Worldwide Exchange yesterday. Im not sure we should delve into it. It got a lot of social media attentions. A lot of celebrities joining in on the conversation. Yes, yesterdays story, but still very much trending, if you will, in the social media world. Switching focus, wall streets fearless girl is not going anywhere any time soon. The stature of a young girl staring down the financial districts charging bull will remain in place through february 2018. New york city mayor bill debl e deblasio saying in her short time here it has fueled conversations about women in leadership and inspired so much. Become as much of a tourist attraction as the bull itself. If you go past the new york stock exchange. A lot of people posing alongside it and with it, in a way where the bull has always been the main attraction. If it adds to the excitement around that area already, but also aiding womens empowerment. Elon musk is launching another Company Called nur eurak that will aim to connect the brain with human computers. Tiny electrodes would be implanted into the brain that may one day upload and download thoughts. He thinks merging with machines is the only way to keep us from becoming irrelevant in the world of Artificial Intelligence. Heres where european equities are trading this month. We are one day ahead of the official article 50 being invoked. Thats right. Markets holding on to steady gains. German dax higher by 0. 6 . Stay tuned, youre watching Worldwide Exchange. Welcome back to Worldwide Exchange. Time for our mustread stories, my pick is in the washington post. Its titled think tax reform will be easy for trump . Ha, ha. You could have done it more genuine. That felt natural. Katherine says many of the issues that brought down repeal and replace will dog trumps tax plan, too. Some of those are procedural and relate to senate rules governing the filibuster. Some concern the fact that every change to the tax code as with every change to healthcare involves painful tradeoffs and angry Interest Groups that will work to obstruct said change. Whats interesting about the demise of the healthcare bill, there was this thinking that with republicans and having the majority, you have a dealmaker in the white house, that anything could be possible. There seemed to be this euphoria that we could get so many poll i policies passed through. The president already said he would do this quick pivot to tax reform, but decoding tax, the tax code is complicated, especially if they want to make sure tax reform is revenue neutral. That will be another test for markets. It will be interesting to see if trump takes is in the drivers seat when it comes to tax reform. If that changes the outcome. Right now this is a big question. Not just for markets but for politicians as well. Absolutely. Interesting to see how markets initially selling off yesterday, partly because of the negativity around the healthcare bill. At the end of the day, markets had recovered. My mustread today also on this topic, such an important topic, comes from the new york times. Andrew ross sorkins column says trumps take on tax break could look very much like obamas. There will be some conflicting areas that they wont achieve as much as hoped. The man is here himself to join us with his take on the tax reform and his view on the article. Good morning, andrewments. Good morniso your general po will be almost as hard that the proposal on the table will be no border adjustment tax perhaps and the corporate rate tax may be less than we thought . We had Grover Norquist on the show yesterday, he talked about it. I did some work on it yesterday afternoon. We could be talking about 28 all over again. That was the number we talked about for the past five, six years under president obama, which was a nonstarter then. To me, part of it was pointing out the irony of where we may very well be given the expectations, or the High Expectations weve had over the past couple of months, which have buoyed the market and taken air out of it as weve seen over the last couple of days. Whats coming up on squawk box . Heres what we got. Well talk markets, talk politics, judd gregg will join us, mark grant will join us. Hes been bearish hes been bullish with a bit of bearish. Well talk about where he is jeff green is on the show. Sir peter westmacott. Who you may know. I dont know him personally. Then we will talk russia. A little russia action. General Keith Alexander will join us. So, we have a lot of stuff on tap here. Andrew, did you know the russian market, best performing emerging market in 2016, getting 50 . Theres a little stat for you. You learn something every day when you watch Worldwide Exchange. But down in 2017, down about 5 because of this there was a hope that we would see sanction relief from the white house, but we have not gotten that, so a bit of pressure, i guess you could say. News you can use. There you go. Great stuff. See you in about 12 minutes time. Still to come, we get you set for the trading day ahead with Julian Emanuel from ubs. Their experience is coveted. Their leadership is instinctive. Theyre experts in things you havent heard of researchers of technologies that one day, you will. Some call them the best of the best. Some call them veterans. We call them our team. You give us comfort. And we give you bare feet. I love you, couch. 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. With e trade you see things your way. You have access to the right information at the right moment. And when you filter out the noise, its easy to turn your vision into action. Its your trade. E trade. Start trading today at etrade. Com welcome back to Worldwide Exchange. Futures pointing lia higher, co off the back of the day where markets recovered to be pretty much flat. Joining us now is Julian Emanuel from ubs. Good morning to you. Thanks for joining us. Whats the play here . Were seeing things so tied to what the bond market is doing. Are there some hedges . Some derivative strategies youre telling clients to do . This is a period of digestion. Weve come a long way since the election. Were at valuations, if you take the bubble away of 99 00, youre at the highest valuations. So this may not be a soft patch in the economy that were pausing. Were saying, a, you need patience. You shouldnt be fully invested at these valuations, theres likely to be a selloff. If you want to protect your portfolio, puts are attractive here. Theres a number of ways. Likely to be a selloff. How likely, how big . If you look at it, its already begun. March is sort of the first down month of the new year. Were thinking 5 to 10 , nothing major. Just really a risk reset, simply because, again, there are some uncertainties and actually we were encouraged yesterday to see the markets stabilize in the wake of, you knower t, the news had on friday and the healthcare bill. That tells you theres an underlying bid and interest in stocks. We think its more matter of time than anybody else. So the 5 to 10 drop in stocks, the catalyst being valuations or a bit frothy here . Or is it the politics and the uncertainty about policies actually getting through . Well, its an all of the above. Valuations are high. We do see pockets of interest and reasonable valuations particularly in financials, even though they have run as much as they have. Questions of politics. The fact that some said the agenda is over. It will never happen tax reform. Thats misguided. Why is it misguided . Its a reality check. Things are difficult to accomplish in washington. You look back to the last time there was tax reform in 1986, it took president reagan five years to get it done. We need to be patient. Thats the last time you got widespread farreaching tax reform. But what about tax cuts . Can a simple tax cut be as bullish for markets . It depends on how its implemented. The issue now is the expectations of broader, deeper tax reform have been built into the markets. This is sort of one of the reasons we see the pause. You mentioned a slightly more positive outlook on the valuations of financials, compared to other sectorers. Goldman sachs and Morgan Stanley down about 9 this month. So almost in correction territory. Is that a buying opportunity . When you look at it, financials are different. Youre trying to unwind ten years of entrenched bearishness since the start of the financial rye sis. So valuations are nowhere near on par with the rest of the market. Th we think the fed will hike twice this year, as well as the fact washington is deregulations. All of those are tailwinds for financials. Lets talk about the global picture here. Does it make more sense, aside from the move in u. S. Equities, to diversifdiversify . We were talking about europe being a bigger value play for your clients. Were seeing for the first time in a long time Earnings Growth in european corporates. Is that a sign that its time to start putting money into europe . You always want to think diversification in a portfolio. But europe is becoming attractive to us. And to our clients. Youve had a dramatic discount over the course of the mapast several years. 60 underperformance. Valuations are at a large gap. And youre having the kind of Earnings Growth momentum that were seeing that you dont quite have in the u. S. The populist threat, he will pen, german elections in september, how much of a risk is that . No question it is a risk. Unexpected things could happen. What weve seen over the last year or so is that the market actually has taken these changes in stride. Its all about the economy and about earnings on the global basis. Just touching back on the u. S. Perspective. Weve had a pull back as weve been discussing what about volatility levels . Is this an opportunity to buy some vix protection or not so much . Well, again, if you have a portfolio and we saw sleeping at night is the way we want to think about it, options are definitely reasonably priced. But volatility has been low for a reason. This late into the rally, eight years on, stocks are starting to move in different ways from each other. In effect, that sort of means that you need to be more selective than anything else. Julian, thank you very much for joining us. Thank you. Julian emanuel of ubs. About 30 seconds or so left. Key thing to watch for me today is the fed speak. Lots of people speaking, including janet yellen, though not really on monetary policies, Stanley Fischer live on power lunch, 1 30 p. M. If we just look at the tenyear treasury note, its been so important in terms of what markets and equities have been doing. Black close to 2. 4 level, which happened late yesterday having hit a low of 2. 34. And from a 2. 6 high it hit on march 13th. Exactly. So futures this morning slightly positive. Thats it for Worldwide Exchange. Squawk box is next. And make sure everythings clear. Yeah, that would be great. Being proactive. Its how edward jones makes sense of investing. Good morning. The markets today, the nikkei rebounding overnight. The dow looking to avoid its first nineday losing streak since 1978. But whats the pullback been . Has it been 2 . Thats one bad day, right . Its been a slow, steady eightday decline. Not a whole lot of movement. A rundown of this mornings biggest movers straight ahead. New this morning, President Trump taking aim at obamaera Climate Policy. We have the details of a new executive order. There are several. And elon musk starting a new company. He wants to connect human brains to computers. I dont know how my kids brains could be connected any more than they already are to their computers. Its tuesday, march 28, 2017. Squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning, everybody. Welcome to squawk box here on cnbc. We are live from the Nasdaq Market site in times square. Im becky quick along with joe kernen and andrew ross sorkin. Look at the u. S. Equity futures. Things are slightly higher. Dow futures indicated up by 19 points. S p up by 3. 5. Nasdaq up by 12. We saw eight days if a row of declines for the markets. The first time weve seen a streak like that since 20z11, bt only the second time in history that a decline like that has