Good and welcome to Worldwide Exchange. Im sara eisen. And im wilfred frost. Good morning. Its throw back thursday. Were in the mix of the First Official heat wave in new york. I have to say i dont like this one. The weather has been very, very warm. You dont have summer in london. I was there last week it was freezing and raining the whole time. Welcome to summer. This is too hot the last couple of days. Its extreme. Lets check in on the markets whether theyre hot or cold this morning. The dow was down over 100 points, but rallied. All three up again this morning. The nasdaq by 10 points. The 10year note once again hitting another alltime record low 1. 32 . Were at 1. 385. Yesterday we also hit record lows in the german 10 year and the uk 10 year. Lets look at the action in european trade that has been difficult in the last few sessions. Green today. Looks like more than 1 gains for the german dax, french cac. Today month depash, the one that has been in the eye of the storm, they extended the short selling ban by three months. Thats helped the banks to rally in the short term, but also raised questions whether the compromise have been able to bail the banks out has been delayed further. Either way the italian banks are rallying a bit today, but very much in the eye of the storm. The populism concerns about bailing out the banks as for the overnight action in asia lets give you a check of what happened. Nikkei anyonishes lfinishing lower. Broader markets lets have a look at the dollar, the pound to a fresh low yesterday. 1. 2769. Were trading above that level. 1. 2969. Still a big fall in the pound since brexit vote. Some 13 lower. Were up a little bit today for the pound. Down a little bit for the dollar against the yen. 100. 98. And the euro is broadly flat at 1. 1076. Gold prices have gained in the last several weeks. Oil prices, wti yet up a little further. Just above 48 this morning. We have some breaking deal news. Da known is buying white wave for 10 billion to expand presence in united states. Danone. You have probably seen it at the grocery. Will pay 56 bucks a share in cash. Thats a 24 premium to Closing Price over the last 30 days. Both stocks reacting quite positively to this report. I will say i covered white wave for a long time, the maker of plant based milk and dairy. This has long been rumored and speculated to be an acquisition target. Its a small company, few billion dollars. It is focused on a high growing sector of Consumer Products which some of these Big Companies like da known and Campbell Soup, kellog, they were all thought to be acquirers. Cramer for a long time has been saying this is a prime acquisition target. The only question was going to be who and when and here it is. Deknown has a good presence inspect u. S. A lot of people thought cocacola could be a good target. Theyre working on their fair life which is a new joint venture they have. Premium milk so this was considered compliment care. Meantime in the macro land, kuroda kor row da saying Japan Central Bank is ready to expand monetary stimulus further in needed to achieve 2 inflation target. Made no mention of the brexit vote and the comments do come as speculation is growing that the bank of japan will ease policy at the meeting this monday. Stronger yen and weaker consumption have weighed on the economy. People are on high alert for intervention in the market. Theres the dollar yen. Hovering around the dollars level. Looks like for now the market is not quite testing the bank of japan, but if you do see this period of a big selloff. Its a sign of the times. Main focus was mr. Karrny. The question of whether hes the adult in the room or that he deserves criticism for kind of weighing in politically. People have mutual fund past the political criticism now. Questioning whether they had the correct plans in place. It seems to be they have although some of the comments. Hes the only one doing anything over there. We dont have any politicians in place at the moment. Correct. Credit rating to outlook to a triple a negative to triple a stable today. The Credit Agency warned without action may not capitalable with a. Put the country back in surplus danger. I think the ratings is 110 is the rating. Its confusing with all these different letters and numbers. One to ten. Take note. Much easier for everyone. Theres a double dose of job data. The biggie on friday, tomorrow. Today well get the june adp employment report out at 8 15 a. M. Its forecast to show about 150,000 private sector jobs added last month. Then its thursday so that means a look for job claims expected to hold steady. Pepsi coearnings before the bell. Dont mishs hugh johnston. Its a good parameter because p pepsi has been dealing with exspoe sure. It wont show up yet, but that could hurt eventually. Latin america has been a tough spot. Well continue to watch whether the strength in north america, especially free toe can hold up. Good interview and great interviewer for that particular one. Today will bring us one step closer to finding out who britains next prime minster is. A second round of voting will take place in the conservative leadership race with the final two candidates expected to be named later today around about lunchtime. Home secretary theresa may is the frontrunner after securing the most votes. The other candidates are Andrea Leadsom and michael gove. About 1 00 p. M. Eastern time we should know who the final two are. Is it looking like its going to be the final two candidates. It is looking like the two ladies. Theresa may for a definite and between gove and leadsom. Todays corporate news. Tesla is ramping up words. Fundamentally incorrect. The electric car maker said it did no wrong by waiting to disclose a fatal accident involving one of its cars with self driving technology. This of course after fortune accomplished a story that was critical of teslas decision to sit on the news for eight weeks. Elon sold off 2 billion of Company Shares in the interim. Tesla blog post last night denying that it withheld information from shareholders regarding the crash. Former wall street andrew kas person pled guilty in massive fraud. Prosecutors allege he cheated a dozen investors by claiming he would use their money to make loans. Instead he used it in his own accounts. He blames it on a gambling addiction he could not control. When we come back, volatility is certainly in full swing. Check out crude prices. Helima kroft when we come back. The annual break of running of the bulls is underway. Ive done this. Ive done this back in the day. It was the most stupid thing ive ever done. Terrifying. The Week Long Party was in earnest hemmingways novel. There are bull runs where daredevils test their bravery, brave, by racing with six bulls fighting along a 930 street course which is longer than you expect particularly when youve had a lot of beers. Worldwide exchange will be right back. Back in a couple of minutes. Todd spaletto, president of the north face, we are working on the prototype to match customers to gear. Watson, lets give it a try. Say its midjune and im backpacking in yosemite. Of our 353 jackets, i can recommend nine. Watson, what if it rains . There is just a 3 chance of rain, so i recommend the breathable stretch fleece fuse form dolomiti jacket. A Perfect Choice watson. No wonder our Customer Loyalty numbers keep climbing. I believe we can do even better. I like the way you think. Welcome back to Worldwide Exchange. The uk market is benefitting from a fall in the pound, but that doesnt tell the full story. Lets explore it. The pound has fallen sharp live since the brexit vote. When you look at the ftse chart. I was has recovered now above its prebrexit level however it doesnt tell the full story. Yes the ftse 100 is up, but in dollar terms its sharply down. The next 250 Biggest Companies are down sharply as well. Indeed overperformance is flatted by few performances. Shire has benefitted as they have large u. S. Dollar earnings. Almost half of the 100 companies are still in the red. Three of the worst are home builders, property players was the move in rbs. Barclays down. Its important to explain why uk banks are selling off. The yield curve has flattened, but also down the fear of market it is not however capital fears. That makes it a different issue than what faces the italian banks right now and overall its certainly true a couple of companies are benefitting from the falling pound and the ftse 100 rallying, but doesnt pate a picture of Health Across the uk. It remind me of a quote. Mr. Draghi is a 2 inflation target really worth decembstroy your banking system. Negative rates are killing the profits. We are coming up to banks earnings again back here in the u. S. And theyre the biggest real impact from the brexit vote. The simple affect on the yield. It will be interesting to see what they say. J. P. Morgan have a big presence and thats nothing compared of course to the moves. Absolutely. Before we were all watching the banks and the pound it was the oil leader. We are seeing a nice boos right now for wti and brent. Where do we go from here . Joining us is croft. Nbc contributor, good morning to you. Lovely library youre in. I know. Providence. So tell us about what was driving the recent pressure on oil over the last few sessions which was starting to really weigh on the markets and whether this bounce today looks like something more sustainable. Will well, obviously the brexit has weighed on oil. I think one of the big things everyone is watching right now is simply the gasoline overhang. The concern about inventory levels. Back at the end of the driving season. There is a concern about the inventories. We still expect crude to trend higher towards the end of year because we think the supply and demand balance is coming. I think the overhang is being wiped out, but the macro headlines could drag us down gl whats your latest view in terms of asian demand. Some people have gotten more concerned about that. There are concerns about china. Concerns about the product exports from china. Were cautiously constructive on chinese demand this year. The real bright spot for demand right now has been india. India demand has been soaring this year e. Real talk they could be the new china going forward. They move more into manufacturing sector. We think that is going to be a growth engine. There has been recent concerns about china. We think were pretty optimistic about the demand picture this year. Can you give us an update. We did see drilling activity picked up. Where are we here. That has been the other story been the rig count rising. Weapon dont think this is a price environment that is going to cause a light switch to come back on in terms of a lot of u. S. Production. I mean, youre really going to see the high 50s, low 60s to get rigs back to work on a very significant basis and the economics certainly are better in the core of the perm yan, but to get rigs back to work for example is going to require a much higher price environment. When you get reports of rigs being put back to work, that does weigh on sentiment. Certainly a strong dollar part of the macro headwinds. We just have to watch. We are watching other head winds which could be very, very miningful. If libya were come back in terms of production. There are reports we could see some terminals reopen tlg. Th if we got those barrels back on a meaningful way, that could be a very serious supply overhang. Finally your target here for year end, has it changed at all. We actually raised our year end target. We think its going to average 55 again because we think of the improving supply and demand balance. Thank you for joining us. Capital market. A morning of reading books ahead of her. Still to come, trump is bringing in big bucks. His campaign has managed to make a financial comeback, but how do his funds stack up. Before we head to break, here is todays National Weather forecast. Yesterday we had some rough weather around parts of the country including the southeast. It did pack a bunch. We could see today the best chance of storms across parts of the midwest and moving into the ohio valley. Some of these could be violent as we get into the afternoon hours. Folks, beready for that. Plebty of sunshine. Theres Something Else you can expect in dallas. The extreme heat the going to continue. We are in the midst of massive heat wave. In fact youll get the colors across the planes. A lot of liquid is needed. Water is the way to go. Miami with 92. 88 in new york. All right folks thats your forecast. Stick around on the other side of the commercial break. World right back. Thank you is what we say. But we mean so much more. We mean how can we help . We mean what can we do . We mean its our turn. To do our part. To serve you, for all youve done to serve us. Welcome whaback to politics the issue isnt going away. Edward lawrence joins us with more from washington. Its not going away by a long shot for Hillary Clinton though this matter is over, but because of the Strong Language from the fbi director, not for republicans and donald trump. No discussion of the state department emails. Attorney general met with fbi director james comey as well as the agents and prosecutors who worked on the email investigation. She said in a statement she accepted their unanimous decision not to charge Hillary Clinton for mishanding information. We have seen nothing, but stonewalling ask dishonesty on this issue and that means there are a lot many questions that need to be answered. The fbi director will testify this morning in front of an emergency congressional hearing. Lets deal in the facts in an apolitical cayway. Meanwhile the political attacks continue on the campaign trail. Lies, we say lie, lie, lie. Lie, dirty rotten liar. Make sure he never has the chance to bankrupt america the way he bankrupts his businesses. As clinton faces an integrity issue that may be hard to shake. Attorney general Loretta Lynch will face the same questions in front of the same House Committee next week. Reporting in washington back to you. I watched the trump News Conference or rally last night because it was in cincinnati or maybe i havent seen him in a long time, but this one seemed particularly fiery and it got a lot of attention on twitter. Im just wondering what the reaction is in washington. He was very fired up. Went off on a tirade. I think a number of republicans were very excited to see his sort of inspiration in terms of his energy that was with the crowd. Donald trump came out firing. He did not hold anything back as you know during that speech there that he gave, but yeah republicans and lawmakers are now trying to rally behind donald trump so they do want to make sure he doesnt make the same missteps hes made over the past several weeks. There was a teleprompter used in that speech, but they want to make sure hes on the right message. And the lawmakers as far as i could see were pleased with what he was saying. Thank you very much for that. Im interested in where the speech took place, your hometown. Kasich country. I have no idea, thats a heated debate in my household. This is a swing county in a swing state. Hamilton county which is Cincinnati Ohio went toward obama. It is why he was so fired up last night. What also is interesting he went through the Hillary Clinton and the emails which we expected, but he also went after the press, went after chuck todd. He mentioned the british pound, i think almost as much adds he mentioned Hillary Clinton. Thmeantime trumps president l campaign is making a financial co comeback. Raised more than 50 million in the month of june. Which is more than 16 times what he raised in may. According to the Trump Campaign, slightly more than half the money raised came from dinlt digital small dollar operation with the help of the Republican National committee. Back in 2012, mitt romney raised more than 100 million. Clinton raised 40. 5 million in june. And an additional 28 million for the Democratic Party bringing her june total to 68. 5 million. This is a big success in terms of the Trump Campaign starting to really meaningfully raise money. Look back at gold and see how long the precious metal can hold up. Well be right back. Good morning. Breaking deal news overnight. White wave make a 10 billion transacti transaction. And mcdonalds is super sizing the allday prek fast menu. Customers asked, the consumer listened. Youre watching Worldwide Exchange. Good morning and welcome to Worldwide Exchange. Good morning to you. Its throw back thursday. Were in the thick of our First Official heat wave here in new york. Lets check on Global Markets this morning. Show you what u. S. Futures are doing after two days of declines. Ending that fourday winning streak. It is a higher picture, but just barely this morning. S p futures flat. Dow futures up 10. Nasdaq up four following the early action in europe which is actually a little bit stronger. 1 gains across the board for the dax. Lost a little bit of steam, but still hanging on to gains. The ftse 100 watching that closely with the fall of the british pound up a percent and a half. The italian market which has been especially hammered is underperforming, but still higher. As for asia overnights, t yen, watching that level very closely. Flat market in shanghai. Oil prices were stronger yesterday. Stronger again today by a further 1 . Just shy of 48 bucks this morning. If we look at the 10year note we hit another record low yesterday of 1. 32 . Were just above that on the u. S. 10 year right now. The pound has been eye of the storm. The pound hitting a fresh low yesterday of 1. 2769. Were above that now. Were steady around 1. 30. Gold prices just about flat this morning. If we see it come forward, just about flat. Breaking deal news this morning. Danone buying white wave food for about 10 million t