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tv   Street Signs  CNBC  June 15, 2016 4:00am-5:01am EDT

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♪ good morning, everybody. welcome to "street signs." i'm louisa bojesen. your headlines today, european shares napping five straight days of losses. investors pinning their hopes on a dovish fed each as jeffy dunlap says central banks are losing control. third time unlucky. msci saying china's a-shares not ready. and talks shut down. shares and software designer aviva may trade off higher
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stocks. and uefa looking to throw russia out of the tournament as scuffles break out tonight. good morning, everybody. and welcome to "street signs." super happy that you're with us. as usual, we've got a packed show for you. fantastic guests lined up. we're going to be talking china. we're going to be talking about the debt mattings, the brexit scenarios as well. and our european equities. our european equities at the moment flattish. stocks up higher by a percentage point or so. you saw yesterday european equities under quite a bit of pressure to ftse alone on a 3 1/2 month low on the fears that we could be moving closer towards a brexit scenario. so, that.
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happening after two of the latest polls. two polls in particular indicated that the leave campaign is gaining your traction. but today, we're bouncing back and forth across the board. ftse up almost 1.5%. when it comes to the stories out there, a lot of stories making the rounds inditek profits jumping. and thanks to online sales growth. disappointing figures from retailer h & m, they're higher by 1%. this happened as they saw mail sales rising by 9% but lower than expectations. net sales hits 46.4 billion crowns. zodiac's aerospace shares
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rocketing to the top. this happening after a near six-month rise in revenues. the french aircraft issued a series of profits of late, said it's making progress in the recovery plan for its seats division. the robot maker kuka shares their report. abb may consider a counter take overfor the company. they're publishing the software thursday, again, according to reports out there. and aveva shares there ends after talks ended from schnider electric. and less round things off and talk a bit about the british home builders. they've been lagging a bit in
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today's trade after berkeley said that there was a 20% drop in reservations of new homes, ahead of the uk's referendum on eu membership. berkeley's management director said they're waiting until after next week's vote adding that, vote, there's a lack of urgency in the markets. and federal reserve decision is due. a rate hike 2% at the moment. steve liesman has the results of the late cnbc fed survey. >> cnbc fed survey shows that wall street is looking for somewhat more of a dovish end. they pushed a whole bunch of things down the road to when i think the fed is going to act to tighten policy. let's also take a look at where they think interest rates will be. 0.7%.
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and up to 2. 22. finally, they look to settle down at a2.6. we will get another estimate from the fed at the meeting tomorrow at a2:00. now, looking on to where they think the market will be, you can see we recovered where we thought were were going to be b the markets in january and february. at 2149. let's look at the biggest threat of the economy from the panelists here. global weakness down a bit. tied for number one with tax and regulatory policies. that came up a bit. rising interests rates, 25%. protectionist trade policies, 30 we've had that on the list, 13%. finally, this was taken before the terror attack in orlando, 0%
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with dem terror is the biggest threat to the u.s. economy. that was only up to 3% after the horrific attacks in san bernardino. for cnbc business news, i'm steeb lea steve liesman. gundlach says central banks are losing control. big time investor ross was asked whether it was a sign of dislocated markets. >> dislocated over $10 billion of bonds negatively trading over yield. i think what people don't realize there's been more damage done to older savers than there has been to regular borrowers. i think the ratio is about 2 to 1. since the crisis back in '09
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probably pushing about $1 trillion debt damage to the savers. and why that's important, especially in the u.s., people over 60 years of age are more than half of total consumer spending. and consumer spending is about 70% of the u.s. economy. so anything that hurts that older part of the population helps to account for why the economy is so slow. >> good morning. >> good morning. >> what do you make of the moves, the german ten-year yield moving into negative territory for the first time ever? i spoke to somebody earlier that said the drop in the ten-year yield has nothing to do with anything fundamental, talking to a guess yesterday. it's not about fundamentals? >> to me, a low yield is a question of what's going on fundamentally, perhaps the latest push can be a
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contribution of brexit concerns, a big factor in the last couple of days in polls. but the backdrop is that the fed seems to be pushing back rate hike estimations. >> so, we're looking towards spreads, state side versus europe? i mean, it's that play? >> i mean, we do favor narrowing a an atlantic spread. going on the economy broadly in terms of what fed is able to do on its cycle. >> the german pushing lower, is that going to continue? the ecb is ramping up prices if need be. how the corporate bond market is going to do and how that's going to impact the markets. how do you think it's going to progress? >> i think we like a german ten-year low.
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especially if there's a remain vote, we'll see a little bit of a selloff. but we'll see yields going lower this year. >> just a bit of a selloff, there's not going to be anything more than that if there's a remain? >> no, i think obviously, we've got some increases priced in. yeah, there will be obviously a ri risk-off move -- there will be a selloff. >> what happens if it's a leave? >> then, we'll see a big spread widening. my favorite play and then moving towards any sort of benefit that benefits from a risk-off environment. >> and what do we do with -- you can see it both ways, in terms of whether or not you see, okay, we know that the vote is done. >> yeah. >> there's no more insecurity and now we can start to reposition ourselves and get on
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with it. there will be insecurity in terms of sorting out mechanisms over the next few years if we vote to leave. but given that the main security of the vote is gone do you think that benefits? >> i think off the back of the leave, there's some easing from the bank of england, i think overall, gilt should still be a buy. >> i'm looking at the periphery as well and what's going on in core europe. i see again some of the moves into the safe haven trades of late. it strikes me that we haven't seen similar core moves in all of european. germany. and we haven't seen the same in france and some of the other core companies? >> yeah, i mean, i think, overall, spreads have widened obviously a bit. at the core end, spreads have widened a little bit which shows
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you. but yields what you could semi call core europe, are at extreme levels. one to five-year averages are below average. france i think is just nudging above it. but yields are very low across all the core and semi core countries. >> you don't think we'll see a separation on what's going on in italy? >> no, particularly heading into the accomplish elections i think my favorite would be probably spain. based on even if there say remain vote, you're then heading into straight spanish election votes to be honest, the answer, the outcome is going to be as difficult to form a coalition as it was in the election in 2015. >> thank you very much. come back, we'll chat about brexit and things like that. lynn graham taylor here with nuts studio.
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e-mail the show, streetsignseurope @cnbc.com. you can find us live on twitter. @streetsigns, cnbc is our twitter handle. you can tweet through me. i'm a mouthpiece of you. @louisabojesen as well. coming up here on "street signs," access denied. we'll find out why the msci has again refused entry into china's asia market. how big a deal is this? and when could they be allowed entry, if at all? we'll talk about that coming up here on "street signs." your washing machine
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the more you know. hi, everybody. welcome back. you're still watching "street signs." super glad you're with us today. for the third time in three years, can you believe it, china's asia failed to make the cut for the index. china still have work to do to make its markets ohm for foreign investors and beijing's commitment to reforming capital markets. china's stock market brushed off the news, closing higher as they set a date for the country's inclusion. msci's head went on in more detail. >> the new regulations that have
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rolled out chinese authorities which are important on capital and expansions are critical to national institution investors. so, they are absolutely welcome. however, there still needs some time for international investors to observe these new enhancements and test them to make sure they're effective in practice. >> good to see you. markets shrugging off this decision, not really making a big deal out of it? >> that's exactly right. china markets in focus with that decision from msci. essentially as you said, a snubbing of china for a third straight year. they came out and said china had made significant steps but they wanted to take more of a wait and see approach. essentially saying they wanted to see more improvement accessibility into that a-share market.
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as you said, the market is shrugging off the news. we saw hang sigh 300 and shenzhen composite all going up. we did the lowest level index since march 2011. looking at how the markets did in asia, they bounced back from a three-week low. but there was still a lot of volatility in the markets there. going over to japan, we saw the yen remained under pressure, though it did pull back just a bit from that six-week high. hovering right around 1.06 against the dollar there. the nikkei 225 closing the day in positive territory though they did still come low that 16,000 handle. we should mention investors now look to get bank of japan to see if governor kuroda and company will look to ease monetary policy further. that two-day meeting wrapping up tomorrow.
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back to you. >> akiko, thank you so much. akiko fujita live from singapore. here in the studio, we're chijod by amanda c.a.r.arrs. good to see you again. >> from just a few minutes ago, there was a big contraction in the new lending numbers, instead of the expectation of 750 billion, it actually came to 10 billion. now, this is quite a significant squeeze. we've got -- some of the local government repaying financing platforms, repaying debt in the bond market but also quite an investment from the market with excess credit q1. and people are now repaying debt. >> so, looking at this do you think that the msci was right in
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their decision? >> to be honest, the two are unrelated but it does mean that it has more money flowing into chinese equity markets over the long term. and you know, the long term aims to make china actually a more focused economy. more capital-focused economy rather than relying on lending. so essentially, it's helpful. the new lending data and slowdown actually of the money supply is an indication of a bit of a top-end squeeze on china's markets. >> this is the third time in three years that the msci has said no to china, right? they say investors still have concerns over chinese markets. what are the main concerns that the chinese have? we hear it's not open enough. reform. are we just focusing on these
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things or are there other things that the authorities want to see happen? >> it's not so much the authorities. the customers, the institution said we don't want to be invested. the biggest pushback is on the quota of repatriation. china is such a big market, if you have to allocate 20% of your fund to somewhere you can repatriate 20% every month, then that's a big issue. but the other strange thing is, which may come quite quickly, is the licensing. not being able to license any a-share products internationally without getting preapproval from the shanghai stock exchange, that's a commercial decision. and they could change that pretty quickly. >> the time line for when a possible inclusion could happen, some saying 2017, that they might try again. i saw analysts speculating maybe by the end of the year. it seems a bit early in my book, but i might be completely wrong.
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in the event of an inclusion, how much money can you see would flow into chinese markets? >> we're probably looking at inclusion in 2017. the chinese have said well we've done all of this stuff to appease investors. you've got to have market practice so people are comfortable with it so probably 2017 makes sense. in terms of initial flow, it's not that huge. 18 billion initially. so you're talking foreign investors are not going to make a massive impact, but they will institutionalize and make the markets slightly more mature. >> how significant do you think it would be when, if inclusion happens? will we see a huge switch of foreign funds, how funds outside of china, think about investing
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in china? do people want to invest actively in china, yeah, but it will be a wait and see event? >> well, i think there's a loss of interest. there are some interesting chinese companies. particularly in things like -- because if you look at the hong kong market, you're talking about quite a lot of old economy companies, a lot of banks, a lot of sort of large energy companies, et cetera. where some of the most exciting companies in the asia markets, a lot of the health care, the consumer names, some of the tech names. so, to be honest, in terms of the fate of exposure of china's growth areas rather than the slowdown that we're seeing in traditional sectors then getting into a-shares is attractive for the long term. in terms of higher impacts through a market, you're not going to see a huge wave of money earning on markets rallying on the back of it. as we said the actual number compared to daily turnover is limited. but what it will do is change the behavior of the companies.
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so, instead of the very short term, there is one shanghai tax colleague saying that the average investment is about 20 days. >> 20 days? >> 20 days. that was a safe investment. >> okay. >> so we're talking about a market which can be volatile. as for investors a built of a long-term vushiew, they want to look at valuation, growth, income, et cetera, gradual momentum, then that changes the market dynamics and probably favorably. >> super interesting. mirr miranda, thank you so much. >> lynn, china, opening the chinese markets from a debt perspective, how do you think of china?
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>> well, i guess more of a global view, we see em having been the growth engine and the u.s. not being able to take back that global growth. being that main driver of global growth meaning a fed hike. obviously key to our world view. >> do you think we are in this low growth, no growth environment, as we see, for example, a warning that we are? >> yeah, i think definitely the feeling is the natural growth rate has fallen significantly. >> yeah. >> it looks like it could well be further answer of the fed expectations. there's probably a lost different factors that are influencing them. whether that's so much growth from the future prior to the financial crisis. or whether we've invested a new phase, the age graphic of the western world is changing significantly. there's a lot of different factors. it does seem we've got slower
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growth going forward that seems to be the way. >> lynn, thank you for being with us. lynn graham taylor, strategist at rabobank. >> as said, you can get in touch, many of you are. linda, barry, ian. much appreciated. we're getting some flashes through on goldman, is that correct? guys? in the studio, yeah? okay, goldman is make something comments on oil. let me just see if i can find these comments for you. we're looking at goldman sachs, indicating that they anticipate oil prices of $45 to $50 a barrel in the coming months saying u.s. oil production will decline. putting the market in deficit. that's coming from goldman sachs. we see the prices stabilize somewhat. we're somewhat shy of $50 a
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barrel as seen on the screen as well. euro 2016 minnows island held off portugal to the 1-1 draw. portugal's nani after half a minute of relentless pressure but then birkir bjarnason rallied with some slack portuguese defending to end island's vital points celebration. in yesterday's group, hungary stunned as you korea 2-nil. david alaba nearly scored after just 28 seconds. nearly. but hungary managed to soak up austrian pressure until midway in the second half when adam szalai scored. austria went down to ten men and
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substitute. zoltan stieber capitalized. chipping the goalie three minutes from time. we need to take a short break. check out the markets live. lots of stuff on there. we'll see you back there on the other side with more "street signs."
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welcome back, everybody. you're watching "street signs." i'm louisa bojesen. your headlines, european shares snapping five straight days of losses investors now pinning their hopes on a dovish fed even though jeffrey gundlach said that banks are losing control. third time, unlucky. not stopping the market from closing higher. aveva trading lower.
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as talks end once again. and uefa is threatening to throw russia out of the 2016 tournament as new scuffles break out between russian and english fans ahead of tonight's game. hi, everybody. back to "street signs." i'm just glancing with half an eye at you and half an eye at the data that's just hitting our wires right now so i can catch it it. the uk jobless rate dipping to its lowest level in more than a decade. earnings up. stating here the ek average weekly earnings plus 2%, higher than anticipated. the jobless rate minus 20,000 in the three-year period to just 1.76 million. unemployment rate at 5%. again, the reuters poll had been
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for 1.5%. this is the lowest level since 2005. the may 2016 employment count slightly down, minus 0.4000. the poll was for it to be completely flat. we're seeing the uk jobless rate dipping to its lowest level in more than a decade. earnings, though, remaining slightly higher. you're looking at sterling against the greenback, 0.5%. and of course, sterling are trade being dominated by the brexit vote that's coming up in less than ten days from now. speaking of which, george osborne can be warning that the uk will face tax breaks and spending cuts. the british chancellor will need to find 30 billion pounds of additional savings in order to plug the black hole.
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more than 50% responded to osborne's budget idea calling it absurd saying if the chancellor will to proceed with the proposal that its position could be untenable. and the chancellor risks doing damage to the british economy in his bid to win this political campaign. end of quote. european equity markets, though, higher. bouncing back a tad from yesterday's close where we saw dips of 2% to 3% on the european market. as stilted the ftse on a three-month low. and this despite retail sales, we still managed to hold on to positivity in u.s. trade. the u.s. futures indicating a slightly higher open as seen on the right side of your screen.
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we got the fmc decision in europe. most analysts don't expect any hike from the fmc. they don't expect any change in the monetary policy especially after that weak payroll data but never say never. stay tuned to cnbc as we'll be giving you that decision live by the u.s. colleagues. now, u.s. officials, they're investigation a case of cyberespionage targeted at the democratic party allegedly organized by the foreign government. tom cost telehas the story. >> reporter: u.s. experts brief bass last summer when russian agencies hacked into the computers gathering research on e-mails and chats including donald trump. it wasn't until this spring that the fbi and the computer security firm crowd strike began investigating. >> is this a clear espionage
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attempt by the russian nt to steal information about the government process. they're interested in political strategies and about foreign policy decisions that might be made when a candidate comes into play. >> reporter: the clues point to two russian intelligence agencies, the same agencies thought to have hack sbooltd white house, joint chiefs and state departments last year. late today, a kremlin spokesperson denied any russian involvement. but on the campaign trail, hillary clinton said the evidence points to moscow. >> this seems like another example of trying to vacuum up information. >> reporter: but also the target of trump and clinton campaigns. even though putin invaded ukraine and accused of stifling dissent. >> i always felt, you know, fine about putin. i think that he is a strong leader. he's a powerful leader. >> reporter: what's not clear is whether the republicans' computers were also hacked but
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don't if appears that someone got into the dnc when someone simply clicked on a bad e-mail link. hillary clinton has won the district of columbia according to nbc news projections. this is widely expected to end the bernie sanders race. clinton and sanders, they met privately overnight to discuss the party's future ahead of the democratic convention that takes place next month. meanwhile, president obama denounced trump's comments. though he didn't refer to trump by name, obama warned that the real estate mogul is peddling a dangerous mind-set. >> we now have proposals from the presumptive republican nominee of the united states to bar all muslims from immigrating to america. we hear language that singles out immigrants.
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and suggests entire religious communities are complicit in violence. where does this stop? >> donald trump responded to the president's criticism saying that obama's anger was misplaced. >> i watched president obama today, and he was more angry at me than he was at the shooter. and many people said that. one of the folks on television said, boy, has trump gotten under his skin. but he was more angry. answer a lot of people have said this. the level of anger, that's the kind of anger he should have for the shooter and these killers that shouldn't be here. >> nbc's tracie potts is in washington. tracie, regardless, this has just catapulted the issue of gun
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control firmly back at the very top of the agenda for both sides. >> exactly. and it's almost like deja vu, louisa. we see this every time there's a mass shooting here in the united states. there's talk about gun control on capitol hill but there's serious gridlock about what to do about it. here's what's interesting and different this time. the top republican in the senate, mitch mcconnell said, and i'm quoting him here, we are open when it comes to taking a look at what they it call here no-fly, no-buy. prevents people on the no-fly list from purchasing guns. because as democrats have continued to push, and they're doing it again, they're saying that people are not safe enough, suspected terrorists can't get on planes, they shouldn't be able to get their hands on guns. now the top republican of the senate is signaling that may be
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a point of discussion. the interesting thing about that, of course, the shooter in the orlando case was an american citizen. was not a terror suspect from overseas. but nevertheless, it sort of kicked this discussion up a notch, yet again about whether democrats and republicans can do something about it. we heard it from hillary clinton they called is absurd that people cannot board planes but buy guns. >> how about sanders was sell, clinton winning another state, sanders isn't backing down at this point? >> no, we haven't seen him concede. we haven't seen him give up his campaign yet. and we haven't seen an endorsement of hillary clinton. we did see them meet together behind closed doors. the campaign chair and bernie
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sanders' wife were also in that meeting. dame out what sounded like a conciliatory tone from both of them saying they'll work together to defeat donald trump. it does seem that sanders may be winding down his campaign. there's no further campaign event scheduled. he said he would stay in it until the last primary which was d.c. hillary clinton won by almost 80% by our latest count. tomorrow night, he's got a live online chat with supporters. of course, there's speculation about whether or not he will officially concede the race. he's laid out what he considers a strong progressive agenda. and the question remains, how much juice is he going to have. how much influence is he going to have to push that agenda. >> tracie, thank you very much. tracie potts joining us via nbc news. many of you writing in, thank you for your e-mails. i do see them. keep them coming. it's very interesting to me how
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many of you voiced your opinions that i was wrong in bringing up gun control after the orlando shooting as opposed to coming down hard on religion. i still stand by waiting to see what the facts are before making up an opinion, essentially. but i'm very happy to talk to all of you through e-mail and what you have to say. keep those e-mails coming through. street signs europe @cnbc. and also @louisabojesen. now, twitter has invested $70 million in soundcloud, that's citing a sources clip jack dorsey saying it would eventually support our efforts with creators. twitter's investment into the berlin company. uber is set to enter the leveraged loan markets in a bid to fund more cash for ambitions.
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the ride sharing app is expected to make up to $2 billion in the addition of debt. goldman sachs and barclays, among the banks hired to help with the sale. meanwhile, one of japan's mega banks is planning on issuing its own currency. live mikiko out suda. tell us about it. >> yes, to be yo mitsubishi developing the mufg coin, to one yen. and it will be similar to how pre-paid money works enabling without using money. but users could remit mufg coins
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at a cost. and now one of the world's largest bit coin exchange went bankrupt leaving it unable to access deposits. even though, bank of japan growing 25 fold from the year before. so the government set new rules last month that requires all exchanges, as well as account holders be listed to be regulated by the financial services agency. the rules set by the government prompted more to have action with was shopping sites. the new coin is expected to launch sometime next year. back to you. >> thank you very much. >> you're still writing in, bob says, by the way, the republican base is not happy with him, with trump, i assuming you mean. not sure, bobby. it might be obama.
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look. very happy to get all of your views. it's interesting to me whether or not the u.s. -- u.s. voters, whether they remain kind of thinking, okay, i've always voted republican. so i'll continue to vote republican. i've always voted democrat so i'll continue to vote democrat. or whether you decide to switch and say, well, we need to see what makes the most sense in the longer term. this, of course, open for discussion. feel free to keep your e-mails coming through and your tweets as well. it's very interesting watching this from the outside. a lot of you are writing in from the u.s. maybe there is a point, if you're on a terror list and you're not allowed to fly, maybe you shouldn't be allowed to have guns as well. maybe, maybe not. i'd love to hear your views on this. what's knew and hot from the video game world. julia boorstin reports.
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>> reporter: video game industry is in the midst of massive change, virtual reality or competitive gaming or e sports is on the rise. new consoles are in the spotlight. microsoft announcing a slimmed down console of the xbox 1s and project scorpio. >> we feel great about this console generation. it's actually moving faster than the previous generation. we feel great about console gaming. xbox has sold more units than ever before. >> reporter: but xbox is also facing more competition than ever from sony. sony long awaited for playstation vr. it will cost $399 and launch in october with 50 virtual reality
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games available by the end of the year. while consol makers compete for customers with exclusive video games, this year, video game makers have pulled out of e3. instead of, they're investing in direct digital relationship with consumers with the likes of video game competitions other than known as esports. three different tournament levels from professionals down to communities, organizing their own face-offs. >> we're not focusing just on the elite levels of these sports. but competitive gaming overall for the entire community. i think we'll see engagement overall almost immediately. >> reporter: the more esports like this connect playmakers the more they can sell digital content. can make sure they are in
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demands, to matter which consols gamers buy. julia boorstin. cnbc. happy birthday to you, linda, talking about the stock markets. and emerging market etfs, that's with regards to the msci's decision not to include china aisha in its index. the man known as bond king losing control. janet yellen and what to expect in a minute. we're on twitter, @louisabojesen as well. wearing powerful sunscreen? yes!
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english, welsh and russian fans they've been involved in
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standoffs in l ille in france. this follows clashes between english and russian supporters in marseilles that resulted in a suspension from russia from the governing body uefa. protests in paris turned violent after demonstrators took to the streets to rally against labor reforms. 50 people were arrested and 40 injured in clashes between authorities and police. they used tear gas, set things on fire and smashed windows. a legislative ethics committee has voted to strip brazil's lower house speaker from the seat of deputies. eduardo cunha is accused of lying about undeclared swiss bank accounts. he strongly denies the charges. and the bond king continues its bearish outlook, this time taking aim at none other than
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the fed. wilfred joins us live from cnbc's headquarters. taking aim at the fed. you're taking on a big institution then, wilfred? >> it is indeed, louisa. and had strong words on other topics as well. but as you said, jeff gundlach did hold back on his latest presentation saying central banks are losing control and compared them to the republican establishment and donald trump. he said the fed is confused and confusion is spilling into consumer spending. gundlach sees it as a buying opportunity. on brexit, he said a leave vote on the british referendum would have a ripple effect in the eurozone. some strong words across the board. as you said, louisa, in terms of broader markets we're getting a bit of a bounceback from a
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three-day selloff related to brexit fears than to any expectations of dovishness or hawkishness of the fed. the s&p down by about 5 points. yesterday, we were just below flat, highlighting in fact the resilience of u.s. equities compared to what we've seen from international equities in recent days. louisa. >> wilfred, thank you. good to see you. tim spies is standing by as well. he's chairman and joins us from new york. tim, good to see you. we just heard how the doubleline capital ceo jeff gundlach is basically very much against the fed saying you're losing control. central bankers are losing control. do you think that central bankers are losing control? >> i think it's too early to say, we realize we're only eight days away here in the u.s.
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the stock markets have been somewhat flat on the matter. our clients are watching the polling data. you know the numbers. 44% in the uk, versus 47% wanting to leave. 44% wanting to remain. you just heard your guest talk about the eurozone, what happened to the eurozone if it curse. really, right now, the sentiment in the united states is all focused on the federal reserve. and really looking at that side of it and coming back to the eu, inflation must go above 2%. employment must go above 5% -- or unemployment, for the federal reserve to move rates higher. that's really where we are in that regard. >> gundlach also saying that a summer selloff is coming. do you think that's the case? >> our clients certainly think that's a possibility, they're preparing accordingly.
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what's difficult about this, we're not just talking about a sector movement. or something similar. this is very significant for at least the eurozone, if not, the rest of the continent. there will be effects in the united states. but a lot of that is, as far as what can be predicted, is still rather uncertain. >> what do you think the goals are that the fed has now? i mean, you talk about these levels, the maximum employment of 5%, the price stability of inflation at 2%. do you think the fed is looking at that? or is the fed more thinking we don't want to rock the boat if we don't have to rock the boat. and we might -- we might not be looking at those targets so closely. >> i think you're right in both your comments. in that you go back and you look at the fed open market committee meeting minutes of last week, certainly, chairman yellen cited
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those two factors, both in inflation target and an unemployment target, by exceeding would be a benchmark for the fed to raise rates. and in those same comments and chairman yellen has been fairly consistent, the fed is very accommodative right now. simply by not moving rates. and by moving rates, the fed could really, they believe, have nominal impact if moving at 25 basis points probably is not meaningful. so i think it's both accommodative, and i think the benchmarks have been stated very clearly by the federal reserve. >> and less domestic demanders? >> well if you discount the month of may which is not a strong month for employment, the
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u.s. has been on a trajectory in driving and increasing employment. the counterargument is it's difficult because there's a lot of persons not being counted in the statistics, as far as employment or unemployment. and that might very well be true. but at least with respect to the data that is available, u.s. employment is, of course, very strong. and as strong as it's been since 2008. that's very clear. and inflation is nonexistent. these are factors that our clients are looking to including the brexit and global rates and global equity markets, so forth. >> tim, thank you very much. we're just looking at your comments. keep them coming through after the show. good to hear from you @louisabojesen. the no fly list, people arbitrarily placed on it. we'll see you tomorrow. bye.
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good morning. time to face the music. volatility hits a four-month high as we're just one week from britain's brexit vote. central banks in focus. what to expect from today's fed announcement and the bank of japan which is under pressure to step up stimulus. hey, mr. deejay, is apple eyeing music production to stem its problem? it's wednesday, june 15th, 2016. ♪ >> good song.

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