Exchange on cnbc. Im wilfred frost. Im seema mody in for sara eisen. Lets get straight to the Global Market action great day for stocks yesterday, particularly the nasdaq. The dow up 0. 7 the s p 0. 8. The nasdaq 1. 4 . The nasdaq numbers to watch out for, 6321 is a record close. 6341 is a record intraday high so the dow is performing well. Again, having had a few days of selloff prior to that. Encouraging rebound in tech. 8 out of 11 sectors positive tech the best, energy the worst. Tenyear treasury note did edge back up ending last week about 2. 14 . At 2. 16. A mixed day in trade for asia the japanese index closing at nearly a twoyear high, but a different story for the hang seng and shanghai composite retreating ahead of what many call a highly anticipated decision from the msci today on whether the index holder will include china a shares, its considered a watershed moment for china stocks if they get the green light this would allow the u. S. Funds to get more exposure to chinese stocks ahead of that decision, the shanghai composite closing down. European stocks following the tech outperformance we saw last night. German and french stocks are also on the move here. Specifically the Technology Sector outperforming the dax up 0. 3 . We see positive gains in the uk, italy and france the dax hitting a record hig this morning could be set for a record close after the German Ifo Institute upgraded the forecast forege gea growth oil prices slipping yesterday, thats why the Energy Sector was the worst performer on the s p down 1. 2 . Up 0. 3 today. Dollar boards for you. A bit of a pop in the dollar yesterday. Up 0. 4 . Mini rally relative to what weve seen recently. A little bit of Dollar Strength against the pound. Not Much Movement against the euro and yen pound slipped in wake of comments from mark carney. A dovish tone to his delayed Mansion House speech earlier goal prices down 0. 8 yesterday. They are roughly flat this morning. Slightly higher at 1248. The head of the bank of england says now is not the time to raise interest rates. Speaking to londons Financial Community this morning, mark carney warned of weak wage growth and a potential hit to incomes as britain begins talks to leave the european union. Long we will all begin to find out the extent to which brexit is a gentle stroll along a smooth path towards the land of cake and consumption. But whatever happens, Monetary Policy will be set to return inflation sustainably to target while supporting as best it can the necessary adjustments in the economy. I hope it does lead to cake not sure why he used that word the pound is down 0. 3 against the greenback. Carney says depending on how talks progress, businesses may need to activate contingency plans. On the size of that move in sterling, thats on the back of last week and the bank of england decision, no change in rates. The vote was 3 to 5. 5 voting for no change 3 voted for a hike which surprised people we got a pop in the pound. Roughly the same size that we get a fall today so no real movement. Speaking of brexit, brexit talks began yesterday. David davis, the brexit secretary heads to spain today to meet with members of the Spanish Government he began formal negotiations with the eu yesterday in what is being called an early concession the uk agrees to brussels demands on sequencing of talks, meaning trade negotiations will have to wait until other key negotiations are resolved. No huge details otherwise, in what was otherwise a positively toned First Press Conference im sure more of those to come still early. We are following a developing story on barclays at this hour. Uk authorities filed criminal charges against the bank and four former top executives over undisclosed payments to qatari investors during the financial crisis the uks serious profraud office says barclays and the four executives conspired to commit fraud. Two individuals including john varley were charged with the provision of unlawful Financial Assistance barclays said it is considering its position in relation to the developments shares down fractionally the reaction in share prices is small for two key reasons one this is a fiveyear investigation. We have known it will come to a conclusion at some point soon. So theres been provisions priced in. And whilst clearly barclays is being charged it was a long time ago and the executives mentioned here are all since departed barclays thats why you are seeing a smaller reaction the sfo is an organization that theresa may before her weakening following the election had been planning to abolish. Questions around that. Not s well continue to watch that developme development. Lloyd blankfein says things in his words are pretty good with the economy he cites global statistics, positive metrics in the u. S. Speaking to jim cramer on mad money last night. I knows there some people who believe, as do we all, tha sensible regulation is good. But there was some redundancies and theres been a bit of a wax buildup as layers have gotten on it and impeded the economy and he represented trying to deal with it the devil, of course, is in the details and how you look at it depends on what you wanted but it seems to have gotten bogged down in the issue i would say the market now is not what he wants to do, but whether hell be effective in accomplishing it much more of jims interview with Lloyd Blankfein in the next half hour including why the Goldman Sachs ceo decided to start tweeting seven tweets hes done so far. Joining us now to discuss this weeks rebound is cnbc contributor guy adami. Good morning to you. Good morning. How you are guys doing were good, guy were watching the banks. I want to get your thoughts, it seems like theyre in a sweet spot because while the yield curve flattened, weve seen this appreciation in some of these bank stocks. But it doesnt make sense. Its a bit perplexing. Is this just a rotation out of tech does it make sense . I think it does make sense that you will point to the 210s flattening out people look at that and say how can banks rally in this environment. I understand what theyd be looking at but the reality is 210s to the banks are not nearly as important as some other metrics, maybe 15 30s or 10 20s which is what other people look at. I think what youre seeing now is just a repricing. The market i financial crisis, these banks were pricing 2 1 2, 3 times tangible to book some are pricing less than tangible book. But some are saying the banks dont deserve the valuation we saw in 07 and 08 or at such a discount now i think youre seeing a repricing. I think banks are heading towards 1. 8 times price to tankibtan tangible book. When do you that, i think Goldman Sachs looks to be in the midst of a repricing to get back to some normalcy in terms of that metric. The stress test results on thursday could remind investors if they go well on how the environment has improved even without further deregulation from trump switching focus to tech, yesterdays rebound is resoundingly strong. Do you think that draws a line under the recent weakness . We got a flotation last week and it doesnt look like it lasts long i think it does draw a line you look at where did we sell when we had stocks to the down side two names i point to, look at the move that nvidia saw on that friday and monday. The stock traded from the high 160s down to 142 or so look at the bounce in that and obviously amazon is the other one. When you had that mini flash crash print down to 927 and the bounce what encourages me about this is on that friday and ensuing monday, we saw this from tech but also from energy yesterday, though as you pointed out, we lost some move in energy, the financials held in there. So were seeing a rotation, but you are seeing relative strength in some other areas. I think thats an encouraging sign what sort of concerns me is yous currency volatility now is outpacing equity vol which is concerning thats very much politics play nothing that. Central bank actually. Guy, thank you very much for joining us thanks for having me. Turning to the agenda on wall street. Corporate earnings will be front and center with Adobe Systems and fedex reporting results after the bell as for data, First Quarter current account desit wificit w released this morning and look for commentary from the fed with Eric Rosengren and dallas fed president robert kaplan, both scheduled so speak and youll hear exclusively from chicago fed president carls evans at 10 30 a. M. On cnbc. Shares of tesla are on the move on reports that the company is look to break into a new market landon dowdedy jo edy joins us e details. Reporter tesla is close to an agreement to produce cars in china for the first time this would give the electric carmaker access to the Worlds Largest auto market. Setting up production in china is key to elon musks goals to continuing to grow in the country. Teslas revenue tripled to 1 billion in the country last year alone. Another big perk, tesla would avoid a 25 tax on certain vehicles built in china. According to reports, we could get an announcement as soon as this week. Tesla has not publicly commented. Look at the stock. Shares are up about 2. 7 in early trading. Landon, thank you very much for that more stocks to watch this morning. Century link facing a Class Action Lawsuit seeking up to 1 billion. The complaint is looking to establish a group of consumers harmed by an alleged High Pressure sales culture this comes just a week after the company was sued by a former employee for allegedly running a sales Incentive Scheme and firing her for drawing attention to it. Stock down 1. 2 . Shares of chipotle taking a hit this morning the restaurant warning investors it will be spending more on marketing and promotions for the Second Quarter that stock down about 2 whole food shares continuing to rise amid speculation of a bidding war. The companys stock skyrocketing on friday on news that amazon agreed to spend 42 per share for the supermarket chain. Will there be another buyer . Thats the question. A nice bump over the week. Coming up, the battle for ad dollars. Google and face book may rule the online world snap is hoping to change the game well head to the major advertising meeting in france after the break. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. The future isnt silver suits anits right now. S, think about it. We can push buttons and make cars appear out of thin air. Find love anywhere. Hes cute. And buy things from, well, everywhere. How . Because our phones have evolved. So isnt it time our networks did too . Introducing americas largest, most reliable 4g lte combined with the most wifi hotspots. Its a new kind of network. Xfinity mobile. Welcome back to Worldwide Exchange. Yesterday a great day for market equities, 0. 7 gains for the dow and s p 500. The nasdaq missing out on a record close, but the best performer yesterday up well over a percent. Apple up close to 3 so tech really rebounding strongly this morning, were in positive territory for the futures markets but nowhere near as strong gains in europe are higher markets are higher but not as strong as yesterday. Lets look at the dollar board, particularly the pound, which is down 0. 3 . Thats after mark carney, the bank of england governor, was dovish about the need for any rate hikes any time soon seema . The cannes lions advertising festival is underway where ad giants are debating where to put their money next Julia Boorstin is there and sat down with a ceo of the largest ad conglomerate. We talked to sir Martin Sorrell about where his clients with putting their ad dollars in the likes of concerns about accountability and brand safety. He said facebook and google which have a big presence here are under growing scrutiny theres fake news, theres measurability, theres fraud, transparency, all these issues are placing a lot of focus on the duopoly, google and facebook control 75 of Digital Advertising, which in turn is 30 of the market, so 22 , 23 of the worldwide Advertising Market is controlled by those digital duopolies. He says his clients would like to have a third major option as an alternative to that Facebook Google duopoly. I asked whether snapchat, which also has a presence in cannes, could be the third giant i think to be fair, if you asked me that question six months ago i would have been sort of more more long on it. Probably be a little bit less long on it interestingly you will hear one or two interesting announcements from snap in terms of major new gains. Were hearing from a number of snaps partners here that theyre happy with their return on investment in those snap ads on that platform there is a huge demand for presence on sflnapchat as e evidenced by that time warner snap deal yesterday we will have more from cannes as well as bob pitman and Ryan Seacrest, thats coming up on squawk box. Looking forward to all of that a quick question, chatter focused on the Digital Advertising because its been important, but what are we hearing about traditional advertising in cannes . Right now were here at nbc universals booth, the Parent Company of cnbc. Theyve been meeting with advertisers. Their big message is their scale. They have such broad reach across all of nbc universals various properties talking about their access to a huged a yens through t ed audiee olympics, as well as snap and buzzfeed another piece of news about the traditional media companies. This morning fox announced they will embrace a sixsecond ad format giving that as an unsq p unskippable option for advertisers. It will be interesting to see how advertisers respond to the new options, whether its from traditional or Digital Media players. Great stuff looking forward to more coverage from cannes. Still to come, tax reform is front and center on the washington agenda. Well tell you what were expecting to hear from house spear ul rkepayan coming up. Were back in a couple minutes exchange. Voters in georgia head to the polls today in whats become the most expensive congressional race in American History republican karen handle and democrat jon osoff are facing off. President trump barely won the district in november which includes suburban atlanta giving democrats an opening after tom price left to join the president s cabinet. All eyes on that a good gauge of how well the president is doing. House Speaker Paul Ryan is promising to complete tax reform this year despite the crowded legislative agenda in Congress Ryan is speaking to the National Association of manufacturers this afternoon in prepared marks, ryan says republicans who control congress and the white house have a rare opportunity to overhaul the u. S. Tax code ryan is expected to warn against accepting half measures, an apparent jab at some lawmakers who want to cut taxes instead of simplifying the tax system. President trump taking a shot at dnc last night we protect government websites from attackers, majority of the government websites, including white house. Gov. The dnc could have used you its an important job, as you can imagine, theres a lot of folks out there trying to do bad things youll hear more from tom leighton at 7 00 a. M. Eastern time on squawk box. Foreign policy dominating President Trumps agenda today tracie potts joins us live from washington with more good morning lets start with north korea. That 22yearold student who came home unconscious and then died has prompted a response from President Trump he calls north korea a brutal regime he says well deal with them dealing with them could mean a travel ban the administration is considering an executive Order Congress is considering a law that would require people to get a license before they go to north korea. They are also dealing with russia and conflict over the skies of syria after the u. S. Shot down a syrian jet now russia wants to target our warplanes there. This is an area where the president has been accused of being too close to russia or people around him being too close to russia. Now we could see major conflict going on in syria. Finally israel and the palestinians Jared Kushner, the president s soninlaw and close adviser headed to ramallah and jerusalem tomorrow to begin talks. To begin to lay out the framework for a peace process. He is new at this so is the administration its something that eluded diplomats for decades. Now Jared Kushner hoping to come back with at least some agreement on where to start. As we already mentioned, well be listening for speaker ryan today what time do we hear from him . Im not sure. We will hear from him. He will team up with another network to talk about some of these issues including healthcare, a big one for congress its in the hands of the senate. It will bounce back to the health if they get the series of votes done before the fourth of july great stuff thank you very much. Tracie potts for us in washington still ahead the top stories and a round up of Global Markets. And why Lloyd Blankfein says he has eventually taken to twitter. Theres more Worldwide Exchange on cnbc. 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