Good morning and welcome to Worldwide Exchange on cnbc. Im sara eisen at worldwide headquarters. Im wilfred frost outside the house in london. We can hear it, we can see it. It is throw back thursday. Were throwing it back with Old School Songs changes in honor of your prime minster. Lets show you whats going on with the Global Market this is morning because that bullish momentum continues. Stocks closing at a record high. The dow and the s p yesterday. Didnt take much. We managed to do it in a big move higher in futures this morning. Check it out, dow futures up 1. 12. This would be the fifth day in the a row of gains for the dow and s p. The 11th for the nasdaq which is still a few Percentage Points away from a record itself, but really caught up here. 10year treasury note yield, there has been some demand on and off for this treasure amid rally in u. S. Stocks. The 10year is back below 1. 50. There was some buying. Strong auction of the 30year debt yesterday. The current theme of buying bonds and stocks has sort of held up. As for the early action in europe. The bullish momentum there continueses as well. The german dax up 1. 3 . Sit the standout. The ftse mib thats the italian stock market second from the bottom up, 1. 2 . Weve been watching that carefully as well. The focus and concern swirling around the bank. As for the currency action, british pounds stregthens to mark carney the bank of england governor first postbrexit rate decision. That has been a continuing theme. Theresa may steps up at prime minster. 1. 3218. Well off those lows. Well see what happens into the bank of england key decision. As for the dollar yen continues. Helicopter money continues to swirl. Talk of potentially new stimulus in the japan. Pressuring the yen. They like to see that. After asia overnight. Lets show you what happened. The nikkei continues to surge. Its having its best fourday streak since back in february. Up another 1 overnight. The shanghai comp flat. Oil shed about 4 yesterday and stock continue today gain in the face of weaker oil. Coming back a bit today, wti back above 40 dollars a barrel. Same with crude oil, 46. 63. Gold rebounded from a twoweek low and saw some strength yesterday, giving some of that back today. Todays stock to watch and likely the big market mover of the morning and of the day. J. P. Morgan, the Bank ReportingSecond Quarter numbers. Forecast to earn 1. 42 a share. Both figures would be down from a year ago and all the focus is going to be on the outlook for Interest Rates which has moved sharply against the banks favor. Of course whats happening with brexit and the plans for j. P. Morgan. Capital results. Got a green light from the regulators lately with the stress test and how the banks perform because they have been the lagered all year long. Caught a bit of a bid. Well see that sharp reaction. I know youd normally be wat watching the banks if you were here, but youre full on uk politics todays. Absolutely right. The banks is an interesting point i think as you rightly say. Theyve raild a bit into earnings. People being reminded they did actually make money and q 1 and yes on the Interest Rate curve side things are looking worse. On a lot of other areas theyre looking better. Energy losses, oil prices for example and can Investment Banking activity. People are thinking, okay wait these guise did make a profit last quart. Maybe they can again. Banks certainly have focused. J. P. Morgan reporting later as you said. Lets get to uk politics and sum up the scene here. The Times Leading the mays clean break. Particularly focusing on the fact osborne was sacked. That was the boldest move of her cabinet announcement. The big surprise was boris getting the role of foreign secretary. Br although the mail leads with a picture of fiveyearold florence cameron. She was the darling yesterday. Alongside larry the cat as well who got plenty of attention as we discussed in the mirror. Some of the sentiment toward the level of surprise. Sorry they say with that infamous picture on a zip line. And a lot of interesting reactions to boriss appointment. Many seeing it as a master stroke in keeping your friends close, but your enemies closer. Not just his appointment, but the other two leading roles that brexiteers like boris got. Fox and davis heading up the two departments that will leadle eu withdraw negotiations so shes really sticking to her promise that brexit means brexit. I just mentioned osborne was fired. Hammond made it clear there would be no emergency brexits. Some expansion ri fiscal policy to come. Not immediately. He also was talking earlier about brexit in terms of when those negotiations should happen and trying to give some certainty to businesses. Lets listen in. We will take whatever measures are necessary to restore confidence, stabilize the economy, as we move forward with the start of the negotiating process. Lets try to get to a conclusion as quickly as we possibly can so that people can see how were going to take the economy forward in the new circumstances. Of course, brexit the top of the agenda for the new government. As you pointed out earlier, the pound has rally from those lows around 1. 28 in the past couple of days partly because of the uncertainty. Also partly because people ease expectations of mark carney might do later today. I found the Boris Johnson reaction, especially only social media, twitter, complete mockery of them. All of sort of the funny pictures of the past. Saying we were already the laughing stock, now we have Boris Johnson as the foreign minister. At one point, he was the running to be the prime minster. Could you imagine what the reaction then would have been. I think its somewhat a master stroke. Clearly didnt have the support of the mps so he had to pull out of the race. Wider reasons that do adore Boris Johnson and shes pro kated those people by appointing him in a senior position. Clearly he is a divisive figure. He is a colorful fig you are. I think hes not quite as controversial though in his politics as some of the coverage suggests. Its a big surprise. When he strolled into downing street and we were still there, no one could believe it. Two weeks ago his career was doomed. Now hes got one of the great offices of state. They put on a show for you yesterday. I know you mentioned the pound. That is definitely something were going be watching that investors are going to be watches out of the uk today. That is the bank of england which could make the first cut to Interest Rates in more than seven years. The goal of course to boost the economy in the wake of the brexit vote. Mark carney has indicated the Monetary Policy would vote on a cut in july or august. Hes already strongly hinted economists are looking for a quarter point cut today to a record low of a quarter of 1 . Well get that statement at 7 00 a. M. Eastern. It could come today or come in august. Doesnt seem to matter much. Clearly he is on the ball. I mean, we have heard from him a number of times and he has been on the front linesover the brexit response in terms of the policy action. Yes and also comments from the new chancellor earlier seem to suggest that he expected some kind of easing. He wasnt getting involved on it, but he implied there would be supportive policy across the board as these brexit negotiations happen. Absolutely right. Mark carney got out in frontover this. We heard from him a few times since the brexit vote. As we discussed before, i would caution the certainty of a cut this month. I think hes implied there will be a cut over the summer. Markets will be a little disappointed if they dont see it today. That had been a lot of chatter. I think either this month or august is what markets are starting to expect. Just the confidence it might come today has slightly waned. People now looking for august. Heres a press conference. It will be interesting to see what he has to say about the new finance minister. Theyve got the tools in other words. Mean tile, wilfred, Central Banks here are also making head license. Philadelphia saying the central bank will opt for a shallow series of Interest Rate increases. Harker saying he wants to let that play out a bit. That could impact the path to normalization. Todays agenda, thursday weekly job claims. Wholesale inflation out at 8 35 a. M. Eastern time and more feds speak for you. We have lock hart, gorge, and kaplan. Earning heating up j. P. Morgan as we mentioned. Black rock out this morning as well Delta Airlines. And some Corporate Airlines to tell you about as well. Has reportedly held talks with via come about acquiring a minority stake. This comes as via come and controlling shareholders deliberate over paramount future and via come future. Red stone has reportedly done the sell. Legenda Legendary Entertainment back in january as it tries to expand u. S. Movie. Google could get worse. The antitrust charging against google company. Breaching rules by imposing strict contractual terms with its ad service. This adds to other charges that europe brought that google abuses the dominance with Android System to preinstall Search Engine on mobile devices. Shares of alphabet on this report down slightly. Havent seen a big share priegts reaction, but it is a risk investors have watched. Stocks to watch today. Lower costs help offset a 30 drop in coal shipment. The railroad report was released an hour early. The stocks shot up as a result. Yum brands is reporting results. Rebound in the China Business in the first half of 2016. Shareholders liked that move. Conference call this morning. Jm smucker raising quarterly dividend. The maker of smuckers jelly, Peanut Butter and foldiers coffee will pay that dividend on the first. When we come back, a cushion for brexit blow. Were waiting on a big decision this morning from the bank of england which could send Interest Rates to the lowest in history. We will discuss a potential market impact, next. Images, videos, social updates. We call it dark data. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corrosion. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is built for. Sams thanks for joining us. What are you expecting today . A rate cut. Next month were looking for a further cut. We think the floor at 1. 4 . And also we think easing as well. The pound has rallied in the last couple of days. Does the marngt price that in or will it be surprised when the cut comes. I think it may be a b to do with the political uncertainty. Being resolved until the shortterm. The way i see the markets theyve moved a lopg way. Particularly the riskier assets i think have been well supported on the expectation that carney will dlir something today. I think we would see the equity supermarket suffer quite significantly if the rest dont go ahead and deliver some sort of stimulus. You mentioned the political developments. Comments from him over the last f few hours suggest hell abandon the pledge to balance the budget by 2020. How big of a boost is that on the fiscal economy. I think its inevitable. Actually forecasting growth next year would be zero. That would be consistent with a fairly significant slippage in the borrowing plans. Next year the deficit was set to come down to just under 40 billion. It clearly looks it will be higher than that. Potentially much higher. I think at times when the economy slows down it does make sense to provide a little bit of fiscal stimulus and particularly in the bank of england is doing a quantitative easing policy. That should keep Interest Rates low and stimulate the economy. N you have the loose Monetary Policy. Should be a combination that serves the uk economy well. The softer pound. Do you feel that we sort of found a medium term equilibrium with the pound . Obviously the pound can continue to depreciates. The forecast is at the lowest point. So we do see further weakness there, but i think one of the ways in which we would see that playing out is actually even if it does cause a bit of inflation pressure in the shortterm. It shouldnt be enough to influence the medium focus on the two to three year horizontal. At that point we think the Inflation Impact would have worked through and allowed the right thing to do is address the potential fall. Sam, thank you very much for joining us. Sam hill from rbc. Expecting a rate cut from the bank of england in just two hours time. 7 00 a. M. Eastern time for that announcement. Thank you. When we come back, the veep stakes. Donald trump promises a running mate tomorrow. Good morning sara and wilfred. Weve got storms again on the move today. It was a quite a severe day yesterday with more than 500 reports of severe weather. A lot of damaging winds. Thats what we can see today as the system moves into the northeast. New york getting storms by the evening. Weve got storms from pits burg. Into the great planes again. Hail here also a possibility. The other huge story is the heat that continues to build setting up for a pretty big heat wave getting into the weekend and next week. Look at dallas. All time record highs for the month of july. Its hard to do. Certainly july temperatures can be warm. Were going there. Thats your latest coast to coast forecast. Worldwide exchange continues afterthis. With unlimited clean power. In less than a century, boeing took the world from seaplanes to space planes, across the universe and beyond. And if you thought that was amazing, you just wait. Thys gotten used to the sme. In her kitchen rbage. She thinks it smells fine, but her guests smell this. Ding, flies, meow febreze air effects heavy duty has up to. Two times the odoreliminating power to. Remove odors youve done noseblindo [inhales] mmm. Use febrezair effects, till its fresh and try febreze small spaces. To continuously eliminate up to two tis e odors. For 30 ys febreze small spaces andir effects, two more ways. [inhal exhale mnemonic] to breathe happy. Welcome back to World Wide Exchange. Lets get you caught up to speed on market action. A strong rally. Dow futures up 1. 22 this morning. S p up, nasdaq up 33 set to make new record highs for the dow and s p. Bank of england decision out of 7 00 a. M. Eastern time. J. P. Morgan out earlier than that. The yen is weaker. Political news, speculation of Donald Trumps running mate taking on the feeling of a Reality Tv Show here. Celebrity apprentice perhaps. We now know the big reveal is set for tomorrow morning in new york. Nbc joins us now. Hes going to hire someone so to speak. Who is it going to be . Its not clear this morning trump has made a final decision. We do know the short list of his, its getting shorter. Down to five people. At three, potentially four, but in my own mind, i probably am thinking about two. Sources tell nbc donald trump hasnt decided yet between new jersey governor chris christie, form early House SpeakerNewt Gingrich and indiana governor mike pence. These are good people. This man is going to be a great president. Pence can draw political swing state voters. Shows trump tied with Hillary Clinton in ohio, three points behind in iowa and down by nine in pennsylvania. Shows trump tied in ohio, but leading florida and pennsylvania. Republicans who want to dump him at the Convention Much harder to do so when he shows these numbers. Thats not just a huge loss for our democracy, it is a threat to it. Today near dc. Clint on t clinton appears with her own secretary. Labor secretary are believed to round out her top three. Shes not expected to at least announce her decision. She may make a decision, but shes not going to announce it until after the Republican Convention is over next week. Tracetracey, do vp selection really matter . I know they get a lot of attention and a lot of hype and theyre very strategically thought out in terms of swing states and demographic groups, but do they actually carry weight when it comes to the election. Two words. Sarah palin. It was a tough one for john mccain and once he selected her, it may have cost him the election. It certainly seemed to have an impact on his numbers after that. So theres one kbampl. One of the things the Vice President ial candidate can do is make up for some of the gaps or the flaws or the weaknesses of the president ial candidate. For Hillary Clinton, you know, questions about whether she can be tough enough on wall street and pulling in the progressives for donald trump. Someone is maybe a little more stable as opposed to whats been for him an unstable public image. It can matter. Its balancing the campaign. Good point. In the meantime, billion Venture Capital will be speaking at the Republican National convention on the fourth night, peter thiel. Confirmed appearance to recode, but didnt plan any details. Facebook board member has been a strong supporter or the republican nominee. One of the very few in silicon valley. The of course triggering that all important article 50. Well be right back on World Wide Exchange with dow futures up in the triple digits. You wont see these folks athe post office. They have businesses to run. They he paions to pursue. How do they avd trips to the post office . Stamps. Com mail letters, ship packages, all the services of the post offic ght on yr computer. Gea 4 week trial, plus 0 in extras