Exchange on cnbc. Im wilfred frost. Im seema mody in for sara eisen today. Welcome back from paris. Thank you very much. Great to be back. Great to have you alongside. Amazing to see how that French Election is still impacting marketing. Lets get straight to the market action. U. S. Futures, yesterday a big rally on wall street. Gains of 1 or more across the board for the s p 500. Dow jones aup 1. 2 . A relatively positive session in trade. Dow jones up about 40 points, nasdaq and s p also up. Financials up 3 . And it was that election result sunday night in france that led markets higher. European stocks clearly rallied more than the u. S. 4 of gains in france. 2 in london. They are holding firm today. Slight gains for the main indices. Nothing too massive compared to yesterday. The important thing is they are cementing the big gains we saw yesterday. It was also banks in europe that led the charge higher as it was in the u. S. Big moves. Socgen, Deutsche Bank up nearly 10 . Lets sum up how the market reacted overall in terms of the risks of a frexit. Best highlighted by the spread of the tenyear french bond over german tenyear safe haven. As you can see, that spread massively retracting. It had hit a high of 75 basis points in the middle of last week. Now down 40 basis points. The yield between the two tightening. The interesting thing, not just the yield on the french bond coming down, but, in fact, the yield on the german bond going up as well. That just points to the fact that yesterday wasnt just a single individual country risk factor sunday night wasnt an individual single risk factor changing, it reignited the global inflation trade. The german yield picked up. That was one of the factors, we saw that positive infection around the world. The same is true in asia. Hong kong leading the charge there. 1. 3 . The us a trail understa us aust markets are closed today. As for broader markets, were looking at the u. S. Treasury yield. Some upward pressure. One note being passed around from Deutsche Banks group chief economist who says despite the latest Political Developments that have been positive and solid Global Growth momentum, do not dismiss the inflation risks. Inflation a big topics economists. Right now the tenyear treasury note just at about 2. 3 . Interestingly enough, if we look at oil. A bit of volatility in the oil market as of late. Its biggest weekly drop since the first week of march that we saw last week. International gauge. Brent crude trading at 51. 78. The reason we saw that drop in oil prices was due to concerns over an inventory build up. Now all eyes on that opec meeting coming up in vienna. Nat gas seeing a bit of green. In the dollar market, the euro coming off fivemonth highs after the wake of the first round of the president ial election but Still Holding on to gains, 1. 08 against the u. S. Dollar. The u. S. Dollar higher against the yen at 110. 48. The pound showing green. Gas prices down about a half percent yesterday. Down about 0. 9 . Riskon was bad for gold yesterday and bad for gold today. The Trump Administration plans to impose a new tariff on canada wilbur ross announcing a 20 tax on imports of canada soft wood lumber. Ross said the decades old trade dispute has been allegedly allowing loggers to cut down trees at subsidized costs and sell them at lower prices. The ka ncanadian dollar reactin. The u. S. Dollar in the green against it. On a programming note, wilbur ross will be on squawk box 7 00 a. M. Eastern time today. In other headlines, new details emerging on President Trumps tax plan. Reports say he asked aides to draft a proposal that cuts the corporate rate to 15 from 35 . This could set up a fight with some republicans on the hill because the lower rate could mean a loss of revenue and that could drive up deficits. Political leaders face a midnight friday deadline to reach a spending deal or face a Government Shutdown. With the clock ticking, President Trump indicated hes willing to back away from his demand that the government funding bill include money to build the wall on the u. S. mexico border. The Administration Officials say trump is open to obtaining funding for the wall later this year. The 1 mil1 request for a down on the wall has been a major Sticking Point in the negotiations to avoid a shutdown. In geopolitical news, we continue to track rising tensions with north korea. Top Trump Administration officials will hold a rare intelligence briefing tomorrow at the white house for the entire u. S. Senate on the situation with north korea. Today north korea reportedly conducted a big livefire exercise to mark the anniversary of its military. This comes as a u. S. Submarine docks in south korea. Well have a live report from the border of north korea later in the show. Looking forward to that. Yesterday i spoke to the south korean finance minister about north korea and he seemed less concerned. I listen to all these people worrying about the geopolitical risks, the north korean factor, yes, there is some. But as far as the impact on economy is concerned, i believe that these socalled geopolitical risks have some limited impact. Of course for south korea the concern is not just geopolitical when it pertains to north korea but economic as well. As the finance minister was saying the risks are limited. Its very apparent when you look at the south korean credit default swap, the premium to buy south korean credit default swaps at a ninemonth high suggesting more investors are betting on a default. On the flip side, the kospi, the korean index is up in positive territory on onemonths, threemonth and sixmonth snapshots. To todays wall street agenda housing data and a slew of earnings reports are in focus. The monthly s p caseshiller home price index out at 9 00 a. M. Followed by march new home sales and april Consumer Confidence at 10 00 a. M. Five dow components report before the bell, 3m, caterpillar, coke and miklaszewsmic mcdonalds, well also hear from eli lilly and chipotle. James quincy will be on squawk alley for an interview at 11 00 a. M. Wells fargo will hold its annual Shareholder Meeting today. The board of directors will face reelection. Some major Pension Funds are planning to vote against most of the 15 Board Members saying they failed in duties to oversee the company. Todays meetings follow the fake account scandal at the bank. A lot of focus on this. Institutional Share Holders voted to vote against 12 Board Members. Mr. Buffett is expected to vote in favor of them, but others like calpers are voting against. All eyes on this. At least some will lose and be voted against by shareholders. That will be big news. Absolutely. A big wakeup call for the board because so far criticism and punishment has focused on executives, not the board. Well be watching that story closely. In earnings news, shares of express scripts sharply lower despite a report that the Prescription Drug manager is losing its biggest customer. Landon dowdy has that story. Good morning. Shares of express scripts, one of the largest pharmacy benefit managers is taking about 14 in early trading. The firm announced yesterday that anthem, its biggest customer, would not renew its contracts when it expires in 2019. Anthem account ford about 18 of express scripts q1 revenue. Heres what the ceo had to say on closing bell yesterday. Our model allows us to create competition, not only amongst retailers, and the supply chain, the manufacturers, the generic companies, all of those are things well have tremendous scale to do. We dont need to be associated necessarily with any particular part of the supply chain. I like the fact that were independent. That we can drive down costs for our plans and our patience by creating competition. Well be plenty big enough to be able to do that. Anthem sued express scripts last year for about 15 billion claiming the chaompany was overcharged by them and not passing along savings. More stocks to watch. Humana reporting better than expected profits. The Health Insurer is raising its fullyear forecast helped bay Strong Performance in the retail business. Whirlpool cutting Profit Guidance over temporary integration challenges. This comes as a result of the companys 2014 purchase of an italian appliancemaker. Whirlpool off 1. 8 . Alcoa posting upbeat earnings for the First Quarter saying its expected aluminum demand to rise this year. The company reporting weaker than expected Revenue Growth. Alcoa up 3 . Youre getting good at this correcting yourself. I yield a bit on aluminum. You guys spell it completely different. Its just a different word altogether. Not just a pronunciation thing. It did say aluminum. I should have said that. You got it right. Few more stocks to watch. Barrick gold reporting weaker than expected Quarterly Results and slashing mine output forecasts and lowering the view for the 2017 group gold production. Shares down 3 . Tmobile subscriber growth topping estimates. The company saying its open to merger talks after a federal ban expires this week. Heres the ceo on mad money last night. We certainly can drive shareholder value and growth as a standalone company, however it will be something that we will look at the opportunities to even further accelerate that growth or create much more shareholder value. Were coming at this exactly the way i dreamt we would at this period. From a position of strength and willing to talk but not needing to. Which is really a difference. That was john legere of tmobile. Shares now just off fractionally by 0. 3 . Novartis earnings topping estimates. Investors cheers stronger than expected sales of its Heart Failure drug. Up 2 in swiss trade. Activist investor mark carter says Buffalo Wild Wings made an astronomical error in proxy filings late last week. He says the chain falsely stated shares outperformed the s p 600 restaurant index over a fiveyear period. Last week, marcato called for ceo sally smith to resign. The relative share Price Performance there for you. Up next on Worldwide Exchange, a half trillion reasons why the Worlds Biggest Oil company could hit a big hitch ahead of its highly anticipated ipo. And later a steel trap. Inside of one of chinas zombie steel towns as washington cracks down on cheap chinese exports. Worldwide exchange will be right back. Thanks for doing this, dad. So i thought it might be time to talk about a financial strategy. You mean pay him back . So lets Start Talking about your longterm goals. Knowing your future is about more than just you. Its how edward jones makes sense of investing. If you want to stay on top of your health, one simple thing to do is take the pledge to go and get screened for the cancers that might affect you. So stand up to cancer and take the pledge at getscreenednow. Org it only takes a minute to take care of yourself, and nothing rhymes with org. Welcome back to Worldwide Exchange. Paris, france, the spark of the market rally we saw yesterday. Holding on to gains for the most part across europe. If we look into the individual markets, the key here is were not seeing red. Not seeing pullbacks from that big rally yesterday. We saw 4 in france, 3 in germany, 2 in the uk. Led by banks, socgen and Deutsche Bank up almost 10 . That carried over to the u. S. , but not quite such strong leads. The financial index was up about 3 . Futures for you now, pointing higher. Again, taking a similarsized lead from europe. Were up about 0. 2 for the dow, 44 points. S p and nasdaq higher as well. Lets finish off with the euro dollar, a oneweek snapshot tells the picture. We hit a fivemonth high of middle 1. 09 region. We pulled back a bit during the trade which is why were allowing more room to gain today 0. 2 . Up a percent and a half over the course of the last week. Just shy of the 1. 09 handle this morning. Making headlines this morning, saudi arabia has touted the value of its stateowned oil company, saudi aramco at 2 trillion. Reports say officials are questioning that valuation. The wall street journal says they believe aramco is worth around 500 billion less, even after factoring in a recent tax cut and other tools the government has to make it more attractive to investors. The journal also says banks vying for an underwriting rule have been given minimal information on the companys financials. President trump has been criticizing china for dumping cheap steel in the u. S. Market. And vowed to put a stop to it. Even though chinese officials have promised to scale back operating capacity, so far it hasnt happened. Eunice yoon visited a steel town in the northeastern part of china to find out why the country wont act. Eunice, over to you. Thank you very much, seema. Whatever the Trump Administration decides to do on steel, getting china to cut back on capacity is going to be a challenge as we found out this week. Reporter chinas excess steel is raising tensions overseas and sensitivities back home. We came to the town two hours from beijing in the Northern Province which makes more steel than the entire united states. Washington has accused china of flooding Global Markets with cheap steel. Beijing has repeatedly issued plans to reduce production but those efforts have not gone far enough. Analysts estimate operating capacity in china actually increased last year as local officials, investors and banks keep mills open so workers can stay employed. Behind me is the local steel mill. The townspeople say authorities here have repeatedly over the years instructed the steel mill to scale back capacity, but last year officials found they expanded capacity, and thats a problem here in china. And quickly became a problem for us, too. We have only been at a steel mill for a couple minutes. The police already stopped us from filming. They blocked us and arent letting us leave. I think it goes to show how sensitive the issue of steel and excess capacity has become in china. Factories producing steel or steelrelated products here are struggling to find new places to sell, both in china and abroad. Weve put greater effort in our sales to much the production this businessman says. The government has closed some factories, but production levels have not dropped off. Washington is losing patience. U. S. President donald trump has vowed to take tougher action against cheap imported steel which means chinas. Businessmen here doubt trump can force beijings hand. Reducing capacity is a gradual process, he says. The government has its own proper and reasonable agenda to cut capacity at its own pace. But it doesnt want the cameras to show how slow that pace is. And just this week the Chinese Government issued yet another directive to punish steel mills that are overproducing by revoking their licenses. We have seen these types of efforts before. I was on the phone with the head of the eu chamber of commerce, and he said that in china there is an excess capacity of plans by beijing to reduce excess capacity. I think that that line just tells you how xexasperated chinas trade members are. On the flip side, the thing the u. S. Also wants to achieve is easier access for u. S. Firms to set up shop in china. Particularly things like autos, without having partner with a local company or financials doing the same thing. Is that on the agenda high up for the chinese authorities as well . I think its definitely high up on the agenda for the u. S. Side. Im not so sure about the beijing side. Thats been a perennial Sticking Point and conflict point for both the u. S. And china. Because American Companies have been wanting to get market access. Even in the festeel industry, ts is a wellprotected market. There are some private players, but it is definitely stateowned. That actually plays a part in why its seen as a bit of a well fair program fo wellfare program for a lot of these people. Still to come, political leaders racing to strike a spending deal to stop a Government Shutdown. And now it appears President Trump is willing to drop a funding wall demand. The latest from washington straight ahead. Ild itself. And her paw wont heal on its own. Were all working forward to something. Synchrony financial can help your customers make it happen sooner. So she can plug into her dreams. And theyll have a new addition for their new addition. Whatever youre working forward to, even if its chasing squirrels, Synchrony Financial can help you get there. Even if its chasing squirrels, knows how it feels to seeetes your numbers go up, despite your best efforts. But what if you could turn things around . What if you could love your numbers . Discover oncedaily invokana®. Its the 1 prescribed sglt2 inhibitor that works to lower a1c. Invokana® is a pill used along with diet and exercise to significantly lower blood sugar in adults with type 2 diabetes. And in most clinical trials, the majority reached an a1c goal of 7 percent or lower. Invokana® works around the clock by sending some sugar out of your body through the process of urination. Its not for lowering systolic Blood Pressure or weight, but it may help with both. Invokana® can cause important side effects, including dehydration, which may cause you to feel dizzy, faint,lightheaded,or weak, upon standing. Other side effects may include kidney problems, genital yeast infections,changes in urination, high potassium, increases in cholesterol, risk of