The cac is up by three quarters of a percentage point. Italian stocks up by 1 . The dax and ftse both up by a third of a percentage point. If you look at crude oil prices, there was some additional pressure that came into this on some libyan output recovering from a technical issue at an oil field that has concerns about whether opec and all of the production halts that the production cuts they continued will really be that effective. Things are picking thank you morning. Starting at the base of 48. 61. Breaking news for you. U. S. Paints maker Ppg Industries will not make a bid for akzo nobel after several informal offers have been rejected. Under dutch law ppg cannot approach akzo nobel for another six months. A check on shares of both of those companies. Akzo nobel down by a point and a half. Ppg unchanged at the moment. Thats the one to watch later today. On todays agenda, Dollar General reporting before the open. Broadcom and lululemon are out after the close. A ton of data throughout the morning. Adp, private sector read on jobs, weekly jobless claims, revised productivity and costs, ism manufacturing, construction spending, auto sales are all out today. Fed governor jay powell will speak at 8 00 a. M. Eastern and then sit down with cnbc for an exclusive interview with squawk on the street at 10 00 a. M. So a lot to follow there. Speaking of central banks, San Francisco fed president John Williams is expecting three Interest Rate increase for the year but says four could be appropriate. Speaking in south korea this morning he added he doesnt expect any changes to fiscal policy to impact the u. S. Economy this year, but they could have an impact on growth in the next several years. Williams not a Voting Member of the fomc. A bit of corporate news, another Top Executive is leaving uber. This time its the head of finance. This is important especially when you think about whether the company will have an ipo. Uber reported a loss of 708 million in the First Quarter, that was narrower than the 991 million loss reported the previous quarter. Revenue grew 18 . The privately held company is not obligated to publish results but has been doing so since april. Some people look at numbers and say thats good news. Some people look at the numbers and say thats a business thats been around for quite awhile, still losing money. Not a little money. A lot of money. Part of that is development. Thats a quarter. Thats almost its not a billion dollars, wasnt it close to a billion dollars a quarter . Absolutely. Then the other piece is is mr. Kalanick jeff bezos . The amazon strategy was market share, market share, market share. Needs to be profitable. Theres still expansion. Is it still building out the network or is it hard to make money with that model . I think the argument is theyre still building. Still in the growth phase. Ive done it i have done it a few times. Weve done it. Even to go to the airport. Wow. But theres a lot of times where its, ugh, i dread it. I dont know why. I dont know where it will be, how long it will be. The anxiety factor. Im just not sure. I dont love it. I dont use it enough. There have been other services he has been using. To me the larger question is can other competition just come into any market and take it . How defensible is this . I think two or three years ago we would talk about uber saying they will become the last Mile Delivery system, not just this is a taxi system but is there something larger here going on. I think thats what Travis Kalanick has had in mind. Larger issues, being more than a transportation company. But then you add in these terrible headlines over the last six months t becom s tshgmonthse complicated. It feels very bad piling on on a week like this with his parents. This has been a very challenging week for him. They may have a grace period. Theres other news. Coming out of washington, u. S. Commerce secretary wilbur ross says he hopes complete talks in this nafta reg negotiation nego early january, well before mexicos election in july of next year. Speaking at an event in washington, ross said the Trump Administration would impose antidumping and antisubsidy charges on mexican sugar and canadian soft wood lumber. The deadline for a mexican sugar deal is june 5th. Hillary clinton speaking out about her election defeat at the code conference yesterday. And it even got the attention of the president. Eamon javers joins us now with more. Good morning. Good morning, joe. It was a rare public appearance from Hillary Clinton. An opportunity at the code conference from re code in california to reflect on her election loss. Offer thoughts on why she lost and thoughts on the current president. She said she felt the email scandal this was one of the central facets of her president ial campaign was a nothing burger. Heres what she said. In the book im using everything that anybody said about it besides me to say this is the biggest nothing burger ever. It was a mistake. I said it was a mistake. If i could have turned the clock back, i wouldnt have done it, in the first place. The way it was used was very damaging. She also implied there must have been some collusion with some americans in terms of the russian involvement in the 2016 election. Heres that moment. The russians in my opinion, based on intel and counter intel people i talked to could not have known how best to weaponize that information unless they had been guided. Guided by americans. Guided by americans. Hillary clinton there clearly saying she thinks that somebody inside the United States helped the russians in terms of their intervention into our election last year. Not specifying who that might have been. Those comments did get the attention of the president of the United States who put out a comment on twitter saying crooked Hillary Clinton now blames everybody but herself refuses to say she was a terrible candidate. Hits facebook and dems and dnc. Hillary clinton responded saying people in covfefe houses shouldnt throw covfefe, making fun of the recent president typo. Thats the state of american politics today, where people are hurling insults at each other. The president today will make an announcement today on the paris accord. Heres what the president tweeted about this last night. Saying he will make the announcement in the rose garden today. Make America Great again says the president. Thats something to look forward to. We know the president has been getting inbound calls from ceos of a lot of American Companies asking him to stay in the paris accords. Well see what the decision is at 3 00 today. Eamon, theres been a conversation on the accord about what kind of language he could use in that perhaps he can get out of the accord, but then use language that could that you could strad tl mrdl. What conversation are you hearing about that . Ultimately the white house knows it will make enemies here. Ae lon mu elon musk saying if the president pulls out of the paris accords, elon musk will pull out of the counsels that he sits on. The white house saying once we make this decision, its not a slight at any particular person. The middle ground option of finessing this, straddling it would be politically appealing. He will make some friends, too. The journal saying withdrawing is in americas economic interest, and staying would not matter much any way. Heritage foundation said that. You make friends with both decisions, also make enemies with both decisions. Hillary last week said nixon got impeached, didnt make mention that her husband got impeached. Nixon never was impeached, right . Right. And the poor ndnc did not help her. She said the dnc was bankrupt, antiquated. The dnc people were including together that was a big ka ba kabal. Donna brazile right. She says she regrets that decision but provided some information to the Clinton Campaign about what was going on. I felt bad watching that yesterday. I didnt watch it, but seen some of the sound bites. I am an empathetic guy, eamon. Are you . Empathetic guy, and i felt bad for her. Still do. Tough to lose. Very tough. Eamon, thank you. You bet. For talking to us this morning. Happy to be here. When it comes to the market, so much for sell in may and go away. The s p 500 was up more than 1 last month. Joining us for more on the markets is joe tanneus. Beth ambivino is also here. Thank you both for being here. Joe, what do you think . Is this a time to be fighting the market . It had quite a bit of momentum for a few months at this point. We have some broad based economic strength not only here in the u. S. But also abroad. At the same time political risks have receded. To be clear, when i say that i mean in europe. To be clear, were not completely out of the woods here. Even despite valuations where they are here and around the world, i think if you look at the underlying drivers of market returns, look at whats happened in earnings season the First Quarter here and abroad, that in itself will be supportive of the equity markets moving forward. All right. Another issue were watching is the jobs report. Beth bethann, the beth beige book was out yesterday, saying there was a tightening in the labor market. A u. S. Bank study says 61 of Small Business owners are having difficulty finding qualified people to expand their businesses. When we look at the jobs numbers, we have an Unemployment Rate of 4. 4 , which we think will tick up. Thats largely because kids are coming back from school. Theyll enter the jobs market. Youll see a bump up there. But were looking for 185,000 job gains. Thats a slowing down from where we were. Thats all good news. And that tight labor market means wages will climb higher. So we can expect bigger paychecks down the road. The fed has been watching this saying inflation is not there but they think its out there even though its not evident yet. Thats why theyre thinking theyll raise rates a couple times this year. We see the fed as in a sweet spot of where they would like it to be. Go back to 2008, they would dream of this day where you see jobs market that is near employment, near full employment. Inflation is climbing higher, but not a real threat. So they can take their time. We expect a rate hike in june. Another one in september and theyll tackle that Balance Sheet later this year. You say take their time, does that mean you dont think it will have adverse effects on the economy when they do start the moves . They say expansions never die of old age, they are usually murdered. The prime suspect is the fed. Right now, thats when the fed gets behind the curve. With inflation tame, they can gradually raise rates. Thats what theyre hoping to do. Things can change, but at this point in time just a few every year until they get back to normala a normal. We have never seen a Balance Sheet this big. We dont know what will happen once they start tightening it. In terms of the Balance Sheet, its very big. Over 4 trillion. What we think theyll do, we think theyll make the announcement later this year. Theyve already been hinting at it that they want to deal with stopping or slowing down reinvesting the proceeds from their bond holdings. They will do that at a gradual pace. Maybe 130 billion a year they reinvest. Once that goes down to zero, then theyll address the large Balance Sheets. They say they would like it to go on autopilot and roll off the Balance Sheets. This would take it to 2020 or later for it to get back to normal. Normal being 2 trillion . Back to normal. They readvised it. Its around 2 trillion now. Earlier 1. 5. It will take some time and a lot of things can go wrong. But theyre expecting they can just let it take care of itself. Joe, you said were not out of the woods when it comes to politics in europe but things are looking better. There are all these headlines about what happens with the conservative party vote in london. Polls have shifted against it. Is that the next thing youre watching . Is there Something Else . Certainly the election and the votes in london will be key. Moving beyond that we have a few more elections. In germany we have the election, we have the italian vote. In europe youre in the midst of a cyclical economic rebound. There are still a lot of structural issues. People point to europe and the u. S. And say there are a lot of opportunities there. There are opportunities in europe, but investors need to cautiously and opportunistically put money to work. This tug of war that we see between further unification and more separation, i think this will continue to be a headwind for investing in europe. The financials were weaker here in the United States yesterday. What do you think about the prospects for the financials, particularly with the fed saying it will raise rates another couple of times . I think a lot of the negative price action had to do with commentary surrounding Second Quarter profitability. You from a longterm investor, you have to look at whats happening with financials and the economic back drop. You have now the fed as was just mentioned preparing to raise rates again. I think higher shortterm rates will be a positive thing for financials, at least u. S. Financials and banks. Absolutely the flattening yield curve will have a negative impact on profitability. I think were aways from actually seeing that materialize. Again, this is all against the back drop of a healthy consumer, healthy corporate sector. I suspect that will continue to be a driver of profits for financials moving forward. Thank you both for coming in. Malta. Yeah. Elections in malt tafrmt. Beautiful place. Its a great idea. You keep suggesting ambassador. You are taking pelleys spot. I will go to malta. One of the best performing economies in the european block. Good time to step in. Guess what their gdp has been . 6 . Wow. 6 . Snap elections. What are they doing right over there . Pretty nice place. How do you throw your hat into the ring . Did i just do it. You just did. Its only 400,000 people. Manageable for an ambassador. Life expectancy of almost 82 years. 82 years. Good for you. Couple more years then. I will wait to find out whether ari can work out this thing with you. All right. Coming up, some of the biggest names in media sounding off at the code conference in california, including shari redstone, reid hastings. Well talk about their comments next. Most etfs only track a benchmark. 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As we grow membership base, we want to grow the content budget. Theres so many great shows on net fliflix but so many shows w dont yet have. We will try to get more shows, more movies. Its this new age of television. Nobody is sure where its going except the quality of movies and tv shows is continuing to climb. Shari redstone had a similar message about content at the late session at the code conference yesterday. Content is being valued more highly than it ever was before. You know, my dad once said content is king. I think what youre seeing now is Technology Companies realizing they need that content. They need that original content in order to succeed and have the relationship they want with the consumer. Redstone said she believes she made the right call late last year when she decided not to merge viacom and cbs. I have a great relationship with les. I think we could have worked well on a combined company. At that point in time, you look at the valuations, we were undervalued. The change for me was oh, my god, there is potential here. There is opportunity here. We can do this. We also heard from time warners ceo, jeff bukus. He said he is not worried about trump blocking the deal with at t. The rules on what is pro competitive and what isnt, the assessment of that is properly done by the department of justice. I dont think who is occupying the white house changes that. Were not particularly thinking that that is a significant factor. I think in this case hes right, given that this is really going to be a doj story and a story in court if someone were to block it. I think the working assumption is not its been a long time. Towards the end of the year. Shari read stodstone i think wa right. About not merging the two . We dont know if viacom could come back. If you put them together, wouldnt you have gotten in the same place . I do prefer spongebob to survivor 94. What are they doing now . Worms . Poor moonves. I love needling him about that. I think hes doing okay. Im not in their demo. They dont care whether i watch survivor. Is that where Hillary Clinton was yes. Its a tech thing. Its the re code conference. Why would they invite her . She thought wiping a server meant with a cloth. She didnt understand the term wiping a server clean. This from a man who just learned about binging. I know you had to binge. I have never seen a netflix i didnt know they dropped a whole season. I binged sons of anarchy. I binged the wire. We tried to binge bloodline and ho