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tv   Squawk Alley  CNBC  June 29, 2016 11:00am-12:01pm EDT

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>> good morning. it is 8:00 a.m. out west and 11:00 a.m. other and "squawk alley" is live. ♪ good wednesday morning. thanks for joining us on "squawk
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alley". as we're looking at a day where the dow and s&p have recovered, their loss for 2016 now in positive territory and we'll start with the markets. a day after all major averages closing up more than 1.5% currently extending a second day into that rally. let's bring insane matthews. sean, thanks for joining us. >> thank you. good morning. >> so now the markets in the u.s. at least have made up about half of their post-brexit losses. do you see a scenario where we'll get back to that pre-brexit baseline or do you think this is where we're repricing for now? >> i think you can definitely see more capital coming in to the markets the equity market. but it's really what are the implications long term for brexit and what's going to happen with the eu will be the overhang on the market over the next year or so. >> so what about the european markets because now we're seeing the banks getting downgraded.
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there are balance sheet worries. we're seeing prospect of more central bank intervention which could be lowering rates for the longer time and that would put the fed on hold. how does that all play out for equities? >> when you look at the bank complex right now it's two fold. you have brexit and potential cost structure that the banks will have to work their way through but now you also that have implication of lower interest rates for an extended period of time. remember before brexit everyone thought that the u.s. was going to start to raise interest rates gradually. that's been put on hold for the time being. that really hurts the earning power of the banks and that's what really you're seeing the banks go down because their earnings power has been affected more than brexit but also because of the interest rate complex. >> to go further on that point, sean, it's not that it's shorter for longer. how long can capital markets operate like this. how long can firjs like yours
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operate well if we have negative interest rates across huge chunks of government bonds across the world? >> we can operate for an extended period of time with low interest rates or negative interest rates. if you look at the reality it will be about what people perceive the return profiles will be. you have negative interest rates for part of our portfolio. it drives savings rates up. which actually has a scenario where the economy grows less on a global basis, based on people's expectations of returns. so eventually we have to get out of this cycle because negative interest rates has an impact. >> dow up 199 points. close to 200 points. sean i have to wonder a lot of people were saying doom and
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gloom when there was this vote. it was a surprise. we saw a run up in major indices before the vote and then the steep drop off. now we had a couple of days of significant rallying. aside from the currency issues and the central bank questions we've had has anything significantly changed in the near term for mom and pop investor at home? >> i don't believe so. you should be thinking about things from a long term perspective. the equity market is still a place where it's zero interest rate environment, the returns have been decent. so that's going to continue to be the thought process. so i don't think it changes anything. the short term volatility is always going to be here. it's summer as well so volatility may get exacerbated. at the end of the day it's about long term thoughts. >> but you have to execute trades in the short term, sean, and in the past few days we've seen a torrential volume in one direction and that's people
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shorting the pound, people selling european equities, people buying safe-haven assets and there's question about liquidity among this volatility. is there any asset class where you're seeing any dislocation or any lack of liquidity that could potentially be hurting the markets? >> certainly after brexit the fx market was not acting nextly but other than that everything has been fairly efficient as far as marketplace and flows. just having people risk off, risk on thoughts. that's exacerbating moves here. the markets are very orderly. no issues whatsoever. i don't anticipate any issues either. >> i hope i want stays that way but appreciate having your insights on that. sean matthews the ceo of cantor fitzgerald. when we come back according to the government ge capital is no longer too big to fail. ceo of ge capital will join us live. can brexit be good for the
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tech sector? one of our guests is here to make that case. as we go break. dow near session highs currently up 190 points. of course we're about 20 minutes from the close in europe and we'll bring that to you live when that happens. "squawk alley" will be right back.
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alley". we're in a second day of a two day rally after the brexit vote that came in and shocked the markets on friday. currently the dow and s&p are now positive for 2016 with the u.s. averages having made up about half of those losses and, mike, despite the fact that the street wasn't immediately impressed with nike results they are adding about five points to the dow this morning. >> they are up big from that aftermarket selloff last night. in general it always happens when you have these big macro shocks and big downward move. everyone looks around and says who is trapped. you asked just a few minutes ago see any big location. you didn't have this for selling follow through. everyone had green light let's reprice stocks back before there was that big brexit vote which
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went the wrong way. >> it's down again. never mind the sky is falling last week and then this week maybe it's not. maybe we should buy a bunch of unloved stocks. western digit, storage technology companies not the sexiest. >> not at all. a lot of beaten retailers getting beat, it's bouncing now. real consumer spending up 2.7% year-over-year. it's looking like the u.s. looks decent on a growth basis and i do think it was about a big tension build up and than big tension release. you pointed out the vix. it didn't seem like it was an immediate disorderly chaotic reaction. >> we have a couple of days left in the second quarter. energy is leading because of the strong rally in crude.
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telecom and utilitys. we were supposed to be rotating out of those and more into the cyclical growth areas. >> there's a lot of safe income and that's where people will hang on to. the cyclical story still has room to go if you believe in it. >> let's sort through what this means for tech. it's been several days for britain's vote to leave the european union and tech stocks are reflecting that change. tech stocks fell, they are starting to recover, though. nasdaq is out of correction territory. we have an analyst with rbc capital markets and going to be joined by richard kirby in just a moment. good to see you. >> nice seeing you guys. >> so, talk about some of the impact from the prospect of brexit now. you outlined some stocks. ibm, juniper, among them that
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have, hewlett-packard, hp, inc. that have decent european exposure that could have some impact from this. how big of an impact do you expect to see? >> getting into this event a lot of enterprise deals were putting on a pause in the june 23rd event. this should to be done and be fine at the end of june. brexit throws a wrench in that. our take is ibm, hp could have more headaches, especially with big europe exposure could miss numbers because of this issue. how big of an impact, you add some business impact in europe, uk is 20%, i.t., for example. we think 100, 150 basis points for a head wind.
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>> richard kirby joins us now as well. a lot of people were surprised by this vote. what do you see as the impact on the innovation eco system out of europe? arguably this is good news for barcelona, for berlin, but is it really that bad for london, for ireland? >> i think what happened in uk especially with immigration, you know historically the eu has been a great free flow of talent across germany and france. it will take a while to play out. over time it will be hard for top talent to be retained in the uk from across europe and so i think that also impacts large tech companies in the united states. facebook and google at large, they take a lot of talent from germany and spain and now harder to get that talent. >> they use london as a jumping off point. with this uncertainty with article 50 not having been invoked and a lot of trade deals
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needing to be renegotiated which tech companies could have a hard time using london as a jumping off point? >> when we talked to a lot of companies their take is it's a little chaotic. it's a wait and see approach for now. if you look at exposure three largest exposure to europe which would have this issue would be ibm is the largest followed by hbq, hp, inc. those three are very high europe exposure. >> richard? >> yeah. i think a lot of the tech companies we see so lending club and others have a huge presence in europe. and as well as a lot of the financial sector stocks who are looking more towards and trying to do more in the tech world. >> who is this good for. usually if it's bad for companies with european exposure
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perhaps it's good for companies with less european exposure or perhaps for companies that provide a type of service that's in higher demand ascertain costs rise when people have more trouble doing business across europe? have you looked into who benefits? >> yeah. i imagine the ones that benefit are those that have a heavy uk cost but do companies internationally. other part is companies that don't deal a lot with europe. c.w. a distributor, 90% business in u.s. should be perfectly insulated. seagate, western digital very minimal exposure in europe. so those benefit incrementally from here. >> arm holding which is trading at the levels at the beginning of last week. that company based in the uk providing semiconductor designs to pretty much the whole world. richard is that how you see it? any other names on your mind
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public or otherwise that could benefit. >> i'm not sure who benefits. it's more troublesome especially as folks look for privacy. uk was one of the more lenient countries around privacy. as they pull out it will be troublesome for google and facebook. now you have germany and france who are the bigwigs in the eu. >> we'll see if uk adopting a less heavy handed some would say regulatory approach pressures the eu from the outside even in the way they couldn't from the inside. richard, amin, thanks so much. up next according to the government ge capital is no longer too big to fail. the ceo of ge capital will join us live. meanwhile stocks still holding on to gains this morning. the dow up 198 points, near session highs. the s&p also up 1.27%.
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nasdaq doing well as well and of course we got the european close coming up in just a few minutes. we'll bring you that when it happens. don't go away.
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shares of ge gaining about 2% this morning and david faber is back now with a special guest. david. >> that's right. we're joined by keith sherin the ceo of ge capital. as you said this morning important news for ge as a capital receiving approval for recission of its status as a systemic important financial institution. designation sifi. not a surprise but an important milestone as you have embarked for over a year divest sewing many assets of the company. >> that's right. in april of last year we announced the strategic change for ge capital. over the last 15 months we executed what we called project
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hubble. it's involved reaching sales agreements on more than $300 billion assets. so today is a big milestone for us. we have been supervised by the federal reserve for five years. we were designated as systematically important in 2014. we asked for rescinding of the designation and received that result last night. >> in practical terms for ge and ge shareholder who has watched the transformation into a pure industrial company or will be in 2018, what does it snaen does it free you up to do other things you western able to do >> first step that happens immediately we're not subject to the federal reserve oversight. that involves a lot of reporting. involves a lot of regulatory infrastructure. involves enhanced capital levels. enhanced liquidity levels. those things go away. we reached certain agreements
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with the fed as part of the hubble transformation. we had a ratio of 14% capital. we'll re-evaluate. for shalds it means the fed oversight and regulatory oversight will be down sides and re-evaluate our capital levels. that allows to us meet the parent. we want to return $18 billion back to the parent. we'll dividend more in the second quarter and we'll be able to achieve that $18 billion based on the progress we've had with project hubble. quite significant. >> that's where a lot of the focus has been including among your largest shareholders, in refer to triam which took a large position and talked about significant capital returns and levering up by 20 billion of incremental leverage or one times. are those the kind of things that may happen? >> look, i think that's a capital allocation call for the
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board. this enables them not to have the bed and oversight of ge capital be a barrier. it is significant in that regard. it will enable us to return capital that we had in the plan faster. we didn't expect to be de-designated this quickly. it opens the flexibility of the parent what they want to do. they will be able to make that determination without worrying about fed oversight at ge capital. it adds flexibility. >> i want mary thompson who follows ge closely. >> keith, how much does this save you from a cost perspective? >> well, we had already started to down size, mary, when we announced the strategic plan. at one point we had, you know, increased our spending on regulatory oversight, risk infrastructure, reporting infrastructure, by as much as a
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billion dollars. since we started the hubble plan last april we started to spend less on that, building infrastructure to pass ccar and those types of things. over a period of a year we can take several million dollars and not be regulated by the fed or be a sifi. >> does this change your strategy at all? >> not at all. as you saw, we basically completed 180 billion of the 200 billion of sales. reached agreements on. we have about 20, 25 billion to go. by the end of the year we expect to have 10 billion in runoff. there's only one big platform left. we have a bank in italy and other than that small things that will be sold. we have joint venture in india, remaining staying our check bank that we did an ipo on. we have some french mortgages
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that we're in the process of selling. we have a joint venture with penske. some small things but only one thing left of size. we'll get it down and be down to less than $10 billion by the end of the year. that's about a year ahead of schedule. . >> keith, if you talked to a number of banks they said some of the regulatory changes that have taken place have actually made them safer. in hindsight can you say is there anything positive taken for ge or from ge during that time as when it was designated a systematically important nonbank company? >> sure. if you look at the processes that we put in place with the federal reserve over the last several years we're a much better run company today. we have a much more disciplined risk infrastructure. we were very decentralized. those things inform us about our capital levels and still use
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those processes inform us going forward but less of an infrastructure around it. so i think we're a better company for the things that we learned. and we'll be able to use those processes going forward on a much smaller down size scale. >> and that down size you're talking about largely has been completed as you said so leaves ge capital now financing what largely things that have to do with the industrial businesses? >> that's right. so we've had two focus, david over the last year. one was hubble, execute the sales, the restructuring, eliminate the regulatory oversight in the u.s. the real pivot we made is everything inside ge capital is to support our business and customers. our teams at invitation, energy and industrial finance is embedded with ge industrial teams and we're driving revenue growth and profitability. we're using discipline underwriting standards. there's been a big pivot inside the company.
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we're no longer a separate pimco make being our own income. we're here to support the industrial businesses. we'ller and good return but driving incremental growth. >> to your point a far, far smaller part of this company than once was. contributed half of all the earnings of ge. i remember those days. those were good days too. >> g capital from 1990 to 2014 made over $120 billion for the company and its shareholders. it was a big part of the company. the world changed. post the financial cry size the board made an allocation call. we risk reduced ge and made it a simpler company. they can focus on the industrial today which is a real opportunity for investors going forward and not have to worry about any risks or drags in the financial portfolio, especially from an investor perspective. much simpler company. >> what about you? you've held so many different
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offices with this company. i've skbir viewed under various -- >> what's the question? >> you basically divested the company you run. >> right. >> so what does it mean for your future at ge? >> that's to be determined. i still have about $50 billion of assets we'll close. we have a process we'll work through. we're regulated in the uk by the prudential regulatory authority. >> you're still a young guy, you know. >> thank you. >> i think you're still younger than i am. keith thank you as always. keith sherin, ceo of ge capital on a momentous day for the company. >> you both guys are young. your best days are ahead of you. our rally is picking up steam here in the u.s. largely taking a cue from what's going on in europe. >> this is a strong rally for a second day in europe. it's broad based and pushing the indices up, some over 3%.
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cutting the losses in the wake of the vote we got friday morning from the broad market to under 5%. a strong rally. doesn't mean to denigrate what's happening in uk. sterling is rebounding. impact of sterling beginning to affect the forecast moving forward. not only are people saying and i'm looking here at a consensus of economic survey growth may grind to a halt next year in the uk, inflation because they are an importer, inflation could rise above the bank of england's target. the other country closely aligned to the uk is republic of ireland. today you saw their bonds surge on this fear of this defensive play which took the yields down to fresh record loss. this is just the move we had on the irish ten year since we had that brexit vote come through. what's peculiar or interesting about today's trade from the beginning is the search in this lower yield environment for dividend plays. very rare this guys should
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hurdle to the top of the leaderboard but they did. that's the telecom comes. telefonica in spain. telecom all theia. and the insurers are following through from what we saw yesterday. insurers in a broad base rally and rising. meantime there are still parts of the uk market that have been pummelled and remain in very depressed state. so you may see house builder taylor wimpey up it's still down 30%. those property stores office stocks concern that big companies could leave, for example the financial center in london. today that stock up is 7%. after two days of rises still losses a fifth of its value. fascinating day. the message for a second day in europe is one of rebounding equities.
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guys, back to you. >> up next, a key player in the greek debt cries. we'll look at the global implications of britain leaving the eu. charles dallara will be with us.
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good morning. i'm sue herrera. by a 68-32 vote puerto rico debt relief bill has cleared a critical hurdle in the senate.
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the vote comes 48 hours before the island is expected to default on a $2 billion debt payment. final passage is expected by tomorrow. a survey from the pew research center says confidence in donald trump's ability to manage foreign policy is rock bottom. in a host of countries in europe and asia. but nearly three out of five europeans surveyed did have confidence in hillary clinton's foreign policy. surveillance video played in court on tuesday showed an armed man heading for the white house and secret service agents taking him down. jesse oliveria walked up to the south entrance with a gun last month and after repeated warnings was shot. if convicted he faces 20 years in prison. fda is asking for new studies on whether hand sanitizers work as well as their makers claim and if there's any health risks involved. it's a look at chemicals that have never had a comprehensive
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review. back downtown to "squawk alley". u.s. markets near session highs rallying once again as brexit worries ease. but will long term global implications last long center joining us now on the form is managing director at the institute of finance charles dallara, chairman of the americas partner group. charles, great to have your perspective on this this morning. >> good morning, good to be on with you to discuss this very complex situation. >> interestingly, charles, a lot of members of the leave camp were citing the bail outs of greece and cypress which you were heavily involved in on things they didn't don't on the hook for. i wonder if voting in this referendum to leave europe do they get recusal from europe's financial woes? >> no, not at all. in fact i think, you know, the financial and economic stress on
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the uk now is clearly greater than it was before this vote and i think it will continue to be so. i think this is an economic setback for the uk, particularly if they lose scotland which now seems likely, a well potential. i think that it was regrettable all along, of course, that the uk did not participate in the efforts to support greece and sip press. since they were not a member of the euro it was understandable. now they really cast their lot into the deep ocean and we'll have to see where this goes both for tuck and for europe. >> the leader of scotland is meeting with eu officials later today. how do you expect that meeting to proceed? what do you think comes out of it? >> well, i think the scottish eu dialogue will be one of the more interesting things to focus on in the days and weeks ahead. i expect to it gather momentum. i expect as the eu leadership will take a necessarily somewhat
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tough line with london that they will reach out a hand to the scottish leadership and i would be very surprised if informal discussions don't emerge which try to protect the relationship between scotland and the eu while initiating and proceeding down the path of divorce between the broader uk relationship, particularly england and europe. >> charles, i suspect that even many of the people who voted to leave would like to see the uk stick together, so to what degree do you think talks between scotland and the eu, northern ireland perhaps eventually and the eu influence what the terms are of the eventual brexit. might that end up shaping to a greater degree than we considered to this point, the exact terms of the relationship between england or the uk or whatever it is by then and the rest of the eu? >> well, i think the
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implications of this vote are beginning to settle in on the british leadership, not only on them but the british people. the potential loss of scotland here as well as the demographic blow that's been delivered. the overwhelming vast majority of young people in the uk voted to stay in. and now they've been given a difficult message that they will be cut adrift from europe. i think also there's a real factor here because many young dynamic people have come from the continent not just to work in the financial sector but to work throughout the british economy. that relationship and those resources are potentially loss. i think you're the right say the whole dynamic between england, scotland and northern ireland could affect the way these things play out. at the same time i think the real, the real issue here is not so much around what eventually happens with the uk's relationship with europe. it is the continued fragmentation of europe. i think what we're seeing is
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just another nail in the coffin, i hate to say it. i hope this is not correct but i'm afraid it could be in the solidarity and cohesiveness of europe. we see this begin to develop first with the inability of europe to find a solution to the greek debt problem for seven long years. the continued weak economic performance in the periphery despite some progress here in the last year as we've seen, continued extraordinary high levels of unemployment. you add to that, of course, until integration crisis of the last year or so and you have the rest poor fragmentation and it's beginning to play out in a severe way. >> where should we look for a test of that? are we looking towards the french elections, for example? where will we get some guidance how much momentum that process has? >> the french elections are important event but i think we have to look at the banking sector in europe and i hope it's not a precipitating event for a
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crisis here. there are weaknesses, not uniformly across european banking and i don't want to be misinterpreted. but enough significant weakness in the european banking sector in a country like italy, for example but in others as well that i'm afraid the continued pressure of negative interest rates, of slow growth, of bail out rules in brussels which are being implemented extremely rigidly give me concern that as the popular discontent grows in some of these countries over high levels of unemployment that it may not be just political event we see but a financial event as well. >> when you look at the broader ftse 100 which just erased all of hits post-brexit losses, that's only down about 2.5% since the brexit vote. do you think that all the doom and gloom that was forecasted by the remain campaign do you think that's really not coming to bear
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at this point? >> well, i think it's a little too early to reach that judgment. to be honest with you i think -- markets have clearly rebounded and good to see some resilience in global markets. on the other hand it's inevitable we'll go through a period of quite notable weakness in the uk economy, probably a mild recession. not a lengthy one but one that could persist for six or nine months. it will playback into the markets in the weeks ahead. i'm not pessimistic about the long runabout tuck. i'm more pessimistic what this means for the integrity of the eu and eurozone. because the inability of germany i think to see a broader picture here throughout europe and the need to reach out and hard nonize relations in a much more i think cooperative fashion with all of their eu partners is a real handicap here. i think the future cohesion in
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europe. >> certainly that's a topic as the eu summit is under way for a second day. charles we always appreciate you joining us. charles dallara. former iif manage director. >> stocks still holding on to the gains with the dow up 220 points at this hour. s&p doing slightly better. nasdaq up 1.6%. even better than that. all passing levels they hit on the way down friday. rick santelli on this day of the rally what your watching >> you know, it's more about what i'm thinking about. our president said elections have consequences. brexit. referendums have consequences. but leading a failed strategy also has consequences. come back after the break. we'll talk about it. we're good. okay... what if a million people download the new app? we're good.
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coming up, brexit appears to be in the rear view mirror as markets rebound. one analyst says this is a great buy following the brexit. and the mcmuffin is a great buy. we'll have much more at the top of the hour. back to you. we seal you in a if you. let's get over to the cme group, rick santelli and the santelli exchange. rick? >> i'll tell you what, the last
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question i asked my guest was negative interest rates. i'm not surprised being a disciplined german banker. having such a close relationship if not founding relationship with the experiment in europe i think his answer has to weigh heavily on many and the answer was not good. as a matter of fact. every single person i've asked on air, every single source that i have sees no positives in going negative with respect to rates. now, this isn't earth shattering. but it's important because they are still here and not only are they still here they are going even more negative. now put that to the left. and on the right side remember all these hits i've done like yesterday, about the fed, steve liesman called it capitulation. many thought cyclical,
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structural. the problems that the fed was trying to address were beyond the tool box. it would be as though the tool box was in san francisco, but the tool they need is in new york and they have travel restrictions, because when you're applying all the things that central bankers have to what they believed would be temporary issues they were trying to buy time. listen, i get it. their heart is in the right place. i said that many time. there's no nefarious thinking going on here. central bankers want to help. the problem is by not looking at it in a structural sense we ended up with many things, including negative interest rates and here's the irony. now with the capitulation, we are left with the bad and we have no real strategy, the fed is basically telling us, their tool box doesn't have a tool. you know, it's a philips screw
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and they don't have a philips screwdriver. in the end this isn't going away. what it really does is the brexit vote instructs us, it puts pressure on many parts of society. and they are going to turn to the political class because they are the only people who could find the right tools, who can get the right tools, who can use the right tools, because the fed can't change tax policy, the fed can't change the notion that everything isn't humming right. you know what it's like? if you spend a boat load of money trying to get your car to go faster and you don't fix the part that's wrong you're missing two spark plug, you've wasted a lot of money. so this just makes voting in november and the elections we've had in spain and all around the world, not only that much more important but probably that much more intense and i don't know that there's any quick solutions. one thing i know, somehow these
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central bankers should stop the negative rates soon. >> meantime the treasury market that ten year treasury yield th 1.46%. the stock market, a big rally. s&p 500, up 1.3 just short of what it closed a week ago before the pre-brexit vote got rolling. back up into that range. the dow adding to gains throughout the day. up about 211 right now. a broad, inclusive rally. didn't own enough stocks going into that june 30 quarter end. talking more about the markets and also bring you the latest on that attack on the instan bulle airport when xl "squawk alley" returns. hy not?" and collaboration tools from intel made rocket science simple for actual rocket scientists.
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at least 41 people dead, 239 wounded after three suicide bombers attacked turkey's largest airport last night. president obama saying this morning that the u.s. stands with turkey in the ongoing fight against isis. joining now to discuss is former u.s. ambassador to turkey jim jeffrey. jim, turkey is a member nato, an
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ally of west for that reason. with no group claims responsibility, how does the global community respond? >> well, first of all, we're almost sthaecertain that this w attack by isis. isis has done four previous attacks in turkey over the past year including over 100 killed in ankara, turkey, and everything about this attack, the suicide bombers, the careful planning, the effort to breach security, this max of isis, i'm sure it was isis. they've had a tradition of not claiming credit for the attacks they've launched in turkey. the turkish government believes it's isis and i think that it's really indisputable at this point. >> istanbul has become known as a global hub for commerce. you mentioned attacks in ankara. attack on an overpass last year but a turkish journalist quoted in the "new york times" saying, a happening town, the kind of place condy nast would write about. now it's a middle eastern
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country where these things happen. should we think about istanbul as a city differently now? >> i know that journalist well, but in this case, i think she's a bit exaggerating. istanbul is still a hub of east and west. it's an energy hub. it is one of the most vibrant cities in the world, and, also, look at what the turks did. they stopped that attack on the perimeter, unlike in brussels, the airport was open within hours. you cannot protect yourself totally against terrorist attacks. we, the united states, can help turkey directly in intelligence and our counterterrorism, but basically, we all have to redouble our efforts to smash the isis state. that's where this operation almost certainly was cooked up. as long as it is operating in much of iraq and syria, we're going do have a continued attack, continued attacks like this, i fear. >> ambassador, turkey is such an important country geopolitically because of where it sits. so close to europe. in a week where we've seen this
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brexit vote go in a way a number of people didn't expect, in part because of some people's concerns about migration into europe. what extra significance, if any, does an attack like this have? >> well, i think it increases the sense of alienation that people have everywhere, because the other people that you don't know are out there trying to kill you. turkey issen 0 the side of t-- side of the west. one reason turkey's economy almost tripled in the past is15 years and a good ally of european nato. nonetheless, concerns about turkey entering an eu would flood european countries with turkish immigrants. i don't think so, because the per capita income in turkey and overall economic situation is basically beginning to approach that of many european union countries. >> ambassador, we'll learn more about this attack as the day goes on. we appreciate your time this
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morning. >> thank you very much. >> ambassador jim jeffrey. meanwhile, major averages here in the u.s. gaining steam, second to last day of the second quarter. we'll be right back.
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thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping.
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reliably fast internet starts at $59.95 a month. comcast business. built for business. the dow is back close to session high. energy is leading the way up better than 2% following the spike in crude. the story much of the second quarter. >> energy and materials. inflation trade back again. people think, in fact, we got easy money.
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people buying real assets. the stock market is, we're in this trading range, solidly in the trading range we've been in for months. >> talking financials after the close with the stress test. ceo of microsoft at 2:45 p.m. for now that does it for "squawk alley." accepted it over to melissa and the "half." welcome to the "halftime report." i'm melissa lee in today fscott wapner. with us, jon and pete, and stocks in rally mode, along with other panel members. look where we are now. the dow jones industrial up by 1.3%. s&p 500, and 1.5 the gain. nasdaq higher 1.7%. 4769. positive for


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