Oh, snap, oh, oh good morning and welcome to Worldwide Exchange on cnbc im sara eisen. Good morning from me as well. Lets check in on Global Markets, show you what Global Equities are doing after the nasdaq outperformed the three major averages, which were little changed, though you did see big moves, lower for instance in retailers. Walmart was the biggest drag on the dow yesterday. Prime day kicked off last night. Well get to that in a moment. Dow futures are higher, though s p futures are little changed, down less than half a point. And nasdaq futures are down about five points. As for the 10year treasury note yield, lets show you where we stand. We had yields come off recent highs yesterday, though not meaningfully, and were still sitting below 2. 40 on the 10year yield. Still multiyear highs. Yields moving up again today. Seemed like yesterday in europe it was single day of yields slipping a little bit. Data out of asia car sales returned to growth in june with total vehicle sales rising year over year. Not a huge piece of data that, but shanghai composite is the only one in the red. Otherwise, a positive session across the board for asia, the hong kong up 1. 5 . Europe closed up between 0. 25 and 0. 5 and today is giving back most of the gains, particularly ftse 100, down, but germany and italy, a turnaround from the open. 0. 2 of gains for the german dax. As for the Broader Market picture, oilprices did manage to finish the day higher yesterday, a little less than 0. 5 , giving that back this morning, 44. 21. Well keep an eye on that. We saw that yesterday at this time and then that reversed down a little less than 0. 5 . 0. 5 lower for Brent Crude Oil as for the u. S. Dollar, dollar yen has been the big mover, looking at the highest level there since on may 10th11th or so, 114. 32 continues to zoom up following shortterm treasury yields, the yen is weaker. As for the dollar versus the euro, stronger dollar, 113. 93. That one is little changed and the pound is getting a little boost today, 1. 2909, breaking above that level ahead of a key speech by Prime Minister theresa may and gold prices, on the flip side, have been weaker following that dollar yen. And they are weaker again by 0. 33 this morning. Among todays top stories, President Trump announcing plans to nominate Investment Fund manager and former republican treasury official randa lnl quarels. Sam, thanks for joining us first question, his name has been out there so long, why did it take so long to nominate him . Well, its just been a very long process of really vetting, going through candidates the administration had earlier candidates, including david nathan, that they wanted to appoint, but eventually, theyve settled on randal quarles, as you said he has been the preferred choice for a number of months hes very much a known quantity in washington circles, and having, as you said, served as undersecretary for executive finance at the treasury under george w. Bush, also a former banking lawyer, and will i think probably be quite popular amongst banking lobbyists as an appointment. The administration was saying last night they would want to preside over a less heavyhanded approach to financial regulations than under the prior regime of daniel tarullo. And of course, there are a lot of appointments still to be made within the regulatory space, but how important is this particular position, and can he get on and start doing some of that dereg entulatory work even before the work is completed its a difficult one because the fed is one of the regulatory institutions supervising the banks. Hell be overseeing the staff, but the Federal Reserve board, some of the biggest Financial Institutions in the country. In terms of whether he can immediately make changes to the fed, this is not quite so straightforward. Once he actually gets in, assuming that hes confirmed by the senate, he will still, if he does get in before Janet Yellens end of term, and assuming she isnt reappointed, isnt reappointed in february, hellstill have to serve under janet yellen and hell have to get matters through the board system itself, and that means getting consensus amongst the board of governors so he isnt a dictatorial figure, the vice chairman for financial supervision, but the expectation certainly is that hell lead, as i said earlier, a less heavyhanded regime tarullo was known for goldplating, for example, bank capital standards. Yeah, in many ways, he is the opposite of that i think its worth hitting some of his biography he was a managing partner managing director, i think, at the carlyle group, investing in troubled bank assets he was undersecretary in terms of the treasury under Bush Administration how good of a friend is he to the banking industry, sam . Well, i mean, i think we can overstate this slightly. Certainly, i dont think he is a person who will say lets have a bonfire of regulations and really overturn the entire system i think hes more of a mainstream republican appointment to financial regulatory post, a pragmatist, rather than an ideological, antiregulation guy but certainly, he has been critical of very high capital standards, saying they drive up Interest Rates hes not in favor of breaking up the big banks. Hes certainly said theres also a lot of ways of improving dodd frank whether hell go so far as House Republicans in the choice act to seeking really major changes to dodd frank is unclear. Hes criticized resolution regimes of giving too much discretion to the government when theyre handling failed banks. We can assume that hell want to make changes to the volcker rule, which is highly unpopular amongst investment banks as well so, really, there are a bunch of areas which are where there is discretion for the fed and where he could make changes. I mean, the only other point is the fed has to work with a bunch of other regulators as well, so changing regulatory practice in the u. S. Is not straightforward. It requires cooperation with the other regulators and also requires consensus on the Federal Reserve board itself sam, quickly, time frame of him getting confirmed . Well, that could take a while, and were just seeing at the moment with all the appointments by the trump administration, its just taking a long time to get things through the senate, so i wouldnt hold your breath. We could be talking about months. Sam, thanks very much for joining us sam fleming of financial times. And another name, the economist from Carnegie Mellon rumored to be filling a spot on the fed board. So were waiting to see that appointment. And of course, the big one everyones already speculating on is if janet yellen stays on next year, her term is up, and if not, who President Trump, gary cohn and team would pick. Absolutely right. And when we get those, still uncertain a couple could come over the summer, a few rumored, but hard to tell exactly when nominations coming. As far as this one, randal quarles, this rumor was swirling at the imf meeting back in washington and we talked to tim adams, as usual, the head of the iff, which is the group which represents global banks all over the world, especially the big u. S. Banks, and he was very enthusiastic about this pick, says he has worked with him before in treasury, so he knows the regulatory regime, but also, he is very familiar with the Banking Sector and overall viewed positively in terms of deregulation, but not taking it too far and not too idealistic. But hes not tarullo, and its a big step away from that. True. But i would stress another point sam made about, to get this regulation passed needs various interaction with lots of different regulators, and there are still lots of appointments to come and various bank ceos that i speak to do suggest, theyre very encouraged about the tone of deregulation, but we are talking about 12 to 18 months away before we actually see it, even if it dubs have to go through congress. Lots of hurdles still to come. And more on that maybe when the banks start reporting. San francisco fed president John Williams expects one more rate hike this year. Hell also be be looking for the central bank to start unwinding its massive Balance Sheet in the next few months. Speaking in australia earlier today, williams said he believes the recent softening in u. S. Inflation is temporary he expects it to pick up to 2 over the coming year, but if inflation doesnt accelerate as expected, williams does argue that would make the case for a much slower pace of rate hikes, not surprising that sort of lines up with the center of the fed right now, i think. Crude oil is trading lower again today. A new report from the iea finds Oil Investments around the world fell 12 last year Steve Sedgwick is joining us from istanbul now with the latest steve, good morning. Reporter good morning to you. Yeah, we got that report broken on squawk box this morning, so its interesting 191page report, which i expect you to read by the end of business today, will, but there are some big headlines in there as well. The fact that electricity has overtaken oil and Gas Investment for the First Time Ever on the planet i think is very interesting. Total investments in energy fell 12 to 1. 7 trillion u. S. Last year other big factors in that include the fact that upstream investment in oil and gas fell between 2014 and 2016 by 44 and within there, broader oil and gas, 38 decline there is good news, though actually, shale investment picking up aggressively, up around 53 , but that also means that costs are picking up. Costs in the shale industry have fallen by just around half in the last couple of years they are seen up around 16 in 2017 so, thats one big set of headlines weve had out of istanbul another set of headlines from my interview with mr. Novak as well, the Russian Oil Minister russia produces more oil and gas than anyone else on this planet, around 11 Million Barrels a day of oil ive gotten his comments about the longevity and how deep the cuts can go in terms of this opec nonopec deal, which at the moment is taking 1. 8 Million Barrels of oil off the table listen in to mr. Novak and he says they can go further. Translator if necessary, we can extend the agreement if necessary, we can increase the amounts that need to be reduced, or on the contrary, we can move to reduce them, but everything will depend on the ongoing situation. Reporter Alexander Novak talking to us and saying,look, if necessary, this deal, we can go deeper and longer as well it doesnt necessarily finish in march 2018 back to you both. Steve sedgwick, thank you. Senate republicans are scheduled to be updated on the bill to repeal and replace obamacare. During a closeddoor meeting today. Aides say the gop leadership is hoping to unveil a new draft, possibly by thursday, setting up for a vote next week reports say multiple proposals have been sent to the Congressional Budget Office to be scored, including a measure from senator ted cruz. His proposal would give Insurance Companies the right to sell any type of health plans they want, as long as they also sell at least one plan under the regulatory requirement of the Affordable Care act. Some stocks to watch today shares of Arena Pharmaceuticals skyrocketing the Company Announcing positive results from a study for its key hypertension drug. Its up 41 this morning Barracuda Networks stock is slipping this morning. The cloudbased Security Company posting earnings in line with expectations, but its operating margins came in below estimates and Earnings Guidance is a little soft, down 5 pearson is selling a 22 stake in Penguin Randomhouse to joint bertlesman for 1 billion to bolster its Balance Sheet and return cash to shareholders. Pearson slipping, down 6 this morning. Other stocks to watch, jcpenneys ceo is leaving the Company Effective today. The retailers chief accounting officer will serve as interim cfo while the Company Looks for a replacement. Thats never a good sign citrix is replacing its ceo again. Tataranov is separating from the company about a year after taking the job former cfo dan henshaw will take over. And shares of vista outdoors getting a bump after its ceo announced retirement independent board member Michael Callahan will serve as interim chairman and ceo while the Company Conducts a search for its replacement. Were also keeping an eye on shares of snap that stock closed below its ipo price of 17 a share for the First Time Ever. Snap is now down 30 since going public back in march. The billionaire battle over Encore Electric is heating up. In an exclusive interview last night on mad money, encore ceo bob shopered told jim cramer that Berkshire Hathaway has an edge over elliott managements bid for the company, an increasingly hot drama listen. We know elliott well. Theyre great folks, our largest creditor. Right. At this point, its conceptual were not seeing any specifics from them. Okay. Theyre fine people, but all i know is whats in front of us is buffett the Berkshire Hathaway deal would be great for this company. Right. I just dont know enough about elliott anymore. They are considering a 9. 3 billion takeover of the bankrupt utility company. On todays wall street agenda, fed speak and earnings brainerd will speak about monetary 308policy in new york 12 30 and we will hear from Neel Kashkari this afternoon. And look for wholesale trade numbers at 10 00 eastern pepsico reports earnings before the open and well talk with cfo Hugh Johnston in a first on cnbc interview at 9 10 eastern on squawk on the street. What are we looking for on pepsi numbers . With pepsi, the neilsen data, which tracks sort of the Consumer Products data over the quarter or so, points to a softening in the Beverage Business look for fritolay north america, the snacks business, which really has been driving the growth at this company, to keep doing so and do the heavy lifting in this quarter. Pepsi has outperformed some of the other packaged food giants, just in terms of a sluggish period over the last few years its had better organic revenue growth, but like so many of the others, its also dealing with Foreign Exchange headwinds and with this socalled change in the way we shop around groceries, going around the perimeter of the store to fresher foods. Pepsis been doing a good job at offering healthier snacks and enticing consumers they need to continue to do so its been a key goal of indra newy, and she continues to lead this company well see if it can continue that industrybeating topline and profit growth. Theyve also been undergoing a tremendous costsaving effort, helping profits. Down 0. 2 ahead of earnings. Theresa may is giving a speech expected to offer a look for other parties in an effort to get reform through Parliament May still wants to change the country, but losing her majority means a new approach is now needed the speech is seen by some as a relaunch for may after she lost most of her authority in the uks snap election last month. How far does she go to admitting the mistake . I doubt she goes that far into that, but everyones already jumping on the bits of the speech that have been prereleased and that six weeks ago, she was damning Jeremy Corbyn as marxist and impossible to run the government, now saying ive got to work with these people and moderating that so humbled. And also changing tunes for criticized for the uturn. Well see if that means she can survive a little longer. Still to come, a billiondollar day for amazon. What the ecommerce giant has riding on this event one laugh, and hello sensitive bladder. So i tried always discreet. I didnt think protection this thin could work. But the super absorbent core turns liquid to gel. Snap so its out of sight. And out of mind. Always discreet. For bladder leaks. Or a little internet machine . [ phone ringing ] hi mom. It makes you wonder. Shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. [ laughing ] so all you pay for is data. See how much you can save. Choose by the gig or unlimited. Call or go to xfinitymobile. Com introducing Xfinity Mobile. A new kind of network designed to save you money. Good morning welcome back to Worldwide Exchange. Lets have a look at the Market Action yesterday we were led higher by the nasdaq, up about 0. 4 , s p and dow were flat. Tech was the best sector, up 0. 8 , real estate the worst, down 0. 8 . Lets have a look at futures now. As you can see, essentially flat in the premarket the s p flat oil prices yesterday, how they did, in fact, gained by the end of the day, 0. 4