it is 5:00 a.mat cnbc global headquarters and here are your top five at 5:00. the eagles will not land at the white house. president trump canceling that football team's visit. starbucks' howard schultz stepping down. will he now run for president? apple's ceo, tim cook, opening up, talking everything from tech to regulation to privacy to b the first trillion-dollar company. twitter investors chirping after that stock getting a huge win. and the world's biggest bond fund out with a warning for you and your money it is tuesday, june 5th, and "worldwide exchange" begins right now. ♪

♪ she told me don't worry about it ♪ in case you needed to go back to, you know, 1988. good morning, and welcome wherever in the world you may be watching i am brian sullivan. stock futures not giving you a lot of help today. they're up a couple of points. they're not in the red it is early. a lot to do. the big mover's actually the cryptorrenci if you like those, you may not like what you see. we'll show that coming up in a few minutes. we are going to have much more on the markets in a minute, but first, to your top story and it is a developing one out of washington. president trump abruptly calling off the eagles' super bowl celebration today at the white house. let's get right now to nbc's tracie potts in d.c. with more >> reporter: hey, brian. we saw with the golden state warriors, now with the eagles. president trump says no, thank you, to these teams, in this case, to the winning super bowl team coming to the white house after a flap over the national anthem take a look at the tweet from president trump overnight, saying that they were invited but only a small number of

players plan to attend that's because several of them were protesting the president criticizing their demonstration against the national anthem. he goes on to say that they canceled the event, staying in the lockeroom for the national anthem, which is the new policy for the nfl, or that kneeling is disrespectful to our country in a statement, the white house says that they were unable to come to be celebrated and that this is not fair to the more than 1,000 fans planning to attend the event those fans, according to the president's statement, deserve better the white house is actually still planning to have that event this afternoon, saying that it will be a patriotic event, that the anthem will be played the eagles, the winning team, just won't be there. interestingly, a couple of democrats who represent philadelphia, who represent pennsylvania, said that they are welcome to come to the capitol no word if they actually will today, brian. >> no word we'll wait and see

tracie potts in d.c., thank you very much. let's bring in jeff sonfeld, cnbc contributor and philly native jeff, good to see you so early on this morning. is this another case where if the president can't have it allg >> it does come across as a bit of a tantrum i think it's a shame that nfl players are creating a wall between themselves and the flag and that the president of the united states drapes himself around the flag. to have that symbolic standoff is unfortunate, but this is another example of a brush fire that the president didn't need to create. trump can be really engaging and really charming, win people over when he wants to, but when he gets into a corner and sometimes backs into a corner, he flashes and trashes and flails away like a trapped, a wounded animal, and this is unfortunate. we saw the golden state warriors, what happens after the eagles -- by the way, i should correct you, it is the philadelphia iggles. i'm from philadelphia. there are no eagles. as you laugh about it, we don't like your attitude but this is a problem. if you wind up seeing that other

sports teams may start to pick up on this we saw last summer the first time in american history the u.s. business community turned away from a call to action from the president of the united states, post charlottesville we start to see a revolt among teams that could start to be messy to see where this goes again, complavoidable. there arf ways that people could have handled this lower key and everybody could have retreated with dignity. >> okay, i will jump in -- and i hear you, by the way i can do a lot of accents. i can't do philly for some reason it is unique and beautiful in its own way. but you said trump started this brush fire didn't roger goodell and the nfl actually start this fire >> well, there's, apparently there was descension among the owners and you know, this is -- i'm sure jeff lurie right now, the owner of the philadelphia eagles is not happy of being made a symbol of, but it does seem like the players could have been brought into this in some way,

but right now we have something beyond a union management issue. we don't want to separate the fans from the players, and that's what we're starting to see here, fans from thayers splitting up the fans. again, this is just more divisive is this serving, really, the nation's purpose at all? we like to rally around our sports teams, and philadelphia has an awful lot of sports fans, and they're pretty wild fans, and you don't want the philadelphia fans turning against you. the people they like, they tear down banners and flags and turn over cars. if they don't like you, who knows? >> yeah, the iggles. jeff, sit tight, because we have another big corporate story we are following on this very busy tuesday morning. howard schultz stepping down as starbucks' executive chair landon dowdy joining us with more on this developing story. >> hey howard schultz plans to leave his role effective june 26th he will also step down from the active board of directors, taking on the title of chairman emeritus now, mike ullman, former jcpenney ceo, will become the new chairman

mellody hobson from dreamworks animations will become vice chair. schultz stepped down as ceo a month ago with michael johnson taking the helm there. in an interview with andrew ross sorkin, "the new york times," schultz sa he originally planned to announce his resignation last month that was delayed in the wake of the pr crisis following the arrest of two black men at a philadelphia starbucks but last year, schultz told andrew he was sticking with the company for the long haul. >> i said from the very beginning that i'm here to stay. i'm working on our roastry project, doing everything i can to support kevin we had a big announcement this week in announcing the iconic crate & barrel site on michigan avenue in chicago. we're under construction in our shanghai roastery. we're under construction in our new reserve store. and obviously, i'm doing everything i can to support kevin and the team >> now, there has been speculation for some time that howard schultz may run for public office and possibly as a democratic challenger to

president trump in 2020. in his interview with andrew and the "times," schultz says, "i want to be truthful with you without creating more speculative headlines. for some time, i have been deeply concerned about our country, the growing division at home and our standing in the world. one of the things i want to do in my next chapter is to figure out if there is a role that i can do and play in giving back i'm not exactly sure what that means yet. schultz has been asked this question several times, including back in late 2016, when he announced that he was stepping down as starbucks ceo >> everyone wants to know whether you are laying the groundwork, not necessarily now, but perhaps four years from now, to run for the big office. >> andrew, i am all in at starbucks, and that is my focus at this time >> i imagine we're going to come back and you'll be asked that question again in the future >> and brian, check this one out. starbucks' stock, since ip nonk june of 1992, it went public at

$17 a share. on a split-adjusted sis, stock is up more than 21,000% since. talk about a perk-up. >> that's a lot. i see what you did there welcome back, by the way yeah, that is a heck of a run. d that's what $4 coffee will get you. landon, thank you. we'll see you in just a bit. all right, let's bring back jeff sonnenfeld jeff, let the speculation begin about howard schultz, right? here's a guy from literally the projects of brooklyn, who grew up impoverished who made his way to become one of the world's richest men and most successful entrepreneurs. do you in your heart of hearts believe that his next step is running for president of the united states? >> yes since i'm not a journalist, i just have friends who are, i can speculate more wildly, perhaps, than you and i would say he's run i've known howard e a long he's been running this place for i guess around 32, 33 years. not the longest-running coffee

restauranteur out there. there actually was the guy who created chock-full of nuts, william black, rant for 55 years. but like many entrepreneurs, black couldn't leave the company. he left the company flat on it back in g hospital the last few years gen cardiologist working as president. that's not what we had with howard he tried to leave before, two false starts orrin smith took over for a while, a fabulous guy, and another time, jim donald, another terrific guy, and howard came back in some would say he had undermined them, he wanted to get back into the fray that's not what's happening this time this is not like we have seen ceos like ralph lauren and others, mike o'dell step back in howard's done. he wants to do something different, but he's and these days, we conside65 to be young. he's got great energy. and the story is so critical, brian. the way you went through outlining the milestones in his life it is the mythic american dream. you know, every candidate wants to create their aura of a log

cabin origins. they want to walk with the common person, show that they're accessible, be charismatic, a great speaker, be hugely successful as a track record back in august of 2015, laying out what trump's images he drew on -- they're all real, t he drew on them howard has all that imagery, but he also lives the life and is the real deal. it'sat t record and muger company than the trump organization many more employees. he's in 75 countries there are almost as many starbucks as there are mcdonald's this is an extraordinary track record -- >> almost as many starbucks as there are people i think at this point, jeff, but point well taken. let me ask you a different question, which could go to howard schultz or somebody else out there, which is, has president trump set a new paradigm for the future of this country, that is, the ceo president? or because of everything swirling around the president, has he made it more difficult for a billionaire ceo to run for

office >> no, i think he's breckoken d a baier. i had asked lee iacocca after he turned down chrysler, he was seen as a tremendous success story and his view was, and the prevailing view was you never served in public service, don't have a track record, people won't vote for you, a huge barrier that donald trump tore down and now that pathway is open for the mark cubans and the bob iger, who i believe by the way was probably seriously considering before getting into the fox acquisition effort and things but -- >> you think so? >> many ceos out there are think being it. >> do you think it could be bob iger versus howard schultz >> if the fox deal didn't go through and if howard weren't running, i'm pretty sure bob iger would have run. i doubt bob iger will run against howard i doubt they even know each other, but i think they have similar space in their views and

i don't think they would want to take each other on i think they would want something different than the current administration for both of them, but i don't think they would take each other on but agai that would be predicated on the fox deal, not being an active one. but i think the integration of the fox prerties is going to keep bob iger quite busy just past the election, at a minimum. >> jeffrey sonnenfeld, the yale school of management for getting up at this hour, we'll send you a bunch of chickies achick yeez a chickies and pete's crab fries thank you, buddy so, will schultz now run for president? i'm sure that andrew ross sorkin is going to ask him, because we have a big, exclusive interview at 8:00 with howard schultz, now outgoingtive chair of starbucks. do not miss that all right, a lot more to do today on this show also topping your headlines, apple's ceo tim cook opening up a bit, talking to cnn about everything from tech regulation to stock price to data privacy

>> well, i think the privacy thing has gotten totally out of contr control. and i think most people are not aware of who is tracking them, how much they're being tracked, and sort of the large amounts of detailed data that are out there about them >> now, cook also downplayed apple's record stock run a built, saying he's not focused on the company's market cap as it nears that $1 trillion mark >> for us, we believe that if we do the right thing for our users, if we put them at the center of our experience, which we always do, and we're focusing on innovating and delivering the right products, that the results, which are things like market cap and revenues and profits, that that will come from doing these things right. so, we focus over here >> now, if you are counting at home, apple just about $60 billion away from becoming the first trillion-dollar company in

the modern era apple shares are slightly higher in the early trade so, it's inching a little bit close today. all right, your big individual stock stories right now include twitter. investors no doubt celebrating today. the shares will jump after news broke that it will be added to the s&p 500. twitter will replace monsanto, which is being bought. meantime, the uk one step closer to returning the royal bank of scotland to full private ownership. remember, the uk government rescued rbs during the 2008 financial crisis today the british government sold 7.7% of its shares of the bank for about $3.5 billion and is expected to sell the rest of its stake in rbs over the next couple of years. and finally, one of the hottest software stocks in the world posting some solid results. coupa software is a cloud play that share up about 1.4% right now, adding to its 80% gaiin the past year. all right, cool, new look there. all right, we are just getting started here on "worldwide exchange." on deck, a big warning for you and your money from the

world's biggest bond fund. why pimco says we could be in for a rude awakening and we are talksing tech, the record high.ng to yet another and your morning rbi brings you one stock that really takes the crown in a big way a lot more to do 'rba a watching "worldwide exan."wee ckfter this. ♪ here. we perform over 50,000 operations a year in places like this. for the past 15 years, our safety measures. and today,

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all right, welcome back, and good tuesday morning here's how your money and investments are shaping up their day. stock futures are in the green a bit.

they're up 25 points not a lot. still, hey, not in the red the s&p 500, the nasdaq up as well we gained yesterday. we gained last friday. so, a nice little mini run for the u.s. stock market. treasury bonds moving a little bit, the yield about 2.93% overnight insia, kinof a similar story. we're starting to see sort of gains. again, not big ones, but more gron the screen than red the nikkei, the hang seng and shanghai are all up anywhere between 0.25% to 1%. and in european markets as well, a mixed trade, i suppose 100 in the uk down about 0.5%, the other major markets in europe all in the green. check this out investment giant pimco out with a pretty big warning for you and your money the firm just put out a new outlook titled, "rude awakenings." joining us is joaquim felts, al econoser at pimco. good to chat with you again. what is the basis of this rude awakening concept, and what are the odds that what you are calling for will actually occur?

>> yeah, well, brian, i think first of all, this is our secular outlook, so we're not log ahead at the next three to six months but for the next three to five years. and we think, in fact, investors are in for several rude awakenings, because we think the postcrisis environment isreall coming to an end we all got used to an environment where we had financial repression, where active central banks and regulators suppressed volatility we had largely passive fiscal policy we had relatively free trade and pital flows, and we had low-growth, low inflation, low volatility now all of that is coming to an end. we think that the next several years could bring quite a few rude awakenings for investors, and these rude awakenings could emanate either from the economy or from politics, and we think it's time to prepare for them. >> and then what is the sort of the outlying possibility what is the worst-case possible 5% and maybe the best-case

possible 5%? let's extend out from the median >> yeah. well, first of all, let's talk about the baseline for a minute. our baseline is that we will see recession in the u.s. at some stage over the next three to four years, and the rest of the world will be affected by that as well. now, one of the positive scenarios that you're asking for would beery dramatic acceleration in productivity growth productivity has been very low, but we're seeing an accelerated diffusion of new technologies, and that could lead to a burst in productivity growth that would obviously be good for growth in a long-term perspective, but i think investors should be careful what they wish for, because it could lead to higher technological unemployment it also means that you will create a lot of losers, existing business models in the corporate sector and finally, higher productivity growth could mean higher real interest rates, which would obviously not look good for bonds but also for the risky

assets that are priced off risk-free rate so, that's one of the more positive scenarios that could, ironically, also have negative implications and then on the really bad scenarios, i would put first a very different type of populism than the one we've seen so far, a much more radical populism that aims at massive wealth redistributi through higher income wealth taxes, universal basic income is another exple. this is something the new italian coalition is proposing much more radical protectionism that leads to trade wars and more attacks on central bank independence, much more massive debt monetization and higher inflation. so, this would be one of the scenarios that we worry about. and again, we think it is time for investors to prepare for some of those scenarios. >> universal basic income, known as ubi, also getting a little traction in certain ends of the political spectrum here in the united states, as you probably are aware of that as well.

>> right. >> so, where does this end up? you talked about this so-called radical populism we're starting to see a little bit of this in italy, which is getting a lot of attention with the la liga and the five-star parties. they are anti-immigration, going after immigration from tunisia and other countries from northern africa. how do you think this plays out? ultimatel l ultimately, five or ten years from now, is italy a member of the eurozone and/or the european monetary union >> well, i think there's at least a significant risk that they won't be a member in five to ten years' time i think it's impossible to forecast at this stage, but i think there is a high risk that in the next recession, in the next crisis, where we won't have many policy tools, traditional policy tools in terms of monetary or fiscal policy, that we will see some members leaving the eurozone and if there is a political will in the country to leave, then there is really nothing the ecb can do about it. the ecb can help if there is a

run on sovereignence, as we had it in 2011-2012, but the ecb cannot help if the member does not want to be a member, does not want to play by the rules anymore. so, but more broadly, i think, on a global scale, this is not only a european issue. i think we're seeing a surge in populism inequality has been rising digitalization and globalization has been creating not only a lot of winners, but also a lot of losers and so, i think one scenario we have to keep in mind is that this all leads to a more stagflationary environme, lower growth but higher inflation and a loss of central bank independence. >> that's why you think people should own tips. treasury inflated securities are boring, don't get a lot of attention, but have a little bit in your portfolio. >> that's correct. borrowing is good. and focus on higher-quality shorter-dated assets we like the shorter end of the treasury curve much more we like higher rated bonds we think u.s. mortgages still offer relatively good value,

have a good risk profile and then generally, i think investors should focus on liquidity and flexibility, because they need to be able to respond to the bouts of volatility that we expect. >> joakim fels of pimco, boring is the new sexy. thank you for coming on. still ahead on "worldwide exchange," the big bank threat we talked about populism, but is one european lender really the biggest risk to your money here? and later on, schultz 2020 howard schultz leaving starbucks. is he brewing up a presidential run? the story that all of wall street, maybe america, will be watching today stick around ♪ for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain-health supplement

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all right, let's get a check on this morning's other big headlines, including the latest on that tragic volcano eruption in guatemala philip mena has the latest. >> reporter: hi, brian, good morning. we have new developments in the russia probe as president trump's former campaign chairman, paul manafort, is accused of witness tampering and he could spend the next several months behind bars court documents filed by special counsel robert mueller allege mart tried to influence the testimony of two former business associates this is in connection to manafort's alleged money laundering and bank fraud. he's been under house arrest since arraignment last fall. at least 69 people are dead in guatemala after the volcano of fire erupted on sunday and it unleashed a fastg x of deadly gases, hot lava, and mud

and wiped out entire villages and displaced over 3,000 people. president jimmy morales has declared three days of national mourning to honor the victims. and firefighters are battling a fast-moving wildfire in a rural area near los angeles. authorities say the so-called stone fire has now grown to over 1,400 acres and is 30% contained, but evacuation orders have now been lifted no word yet on what caused the fire brian, back to you. >> all right, thank you very much see you soon. all right, on deck, a video capturing an historic and a long overdue moment in saudi arabia l keoueego, d odan it's ahead

tech on a tear we are on the hunt for big opportunities for you. the nasdaq soaring to another record high. the next billionaire president will the co-founder of starbucks be your next commander in chief? and bye, eagles, bye what president trump did overnight that has everybody buzzing this morning that's ahead on this tuesday, june 5th, as "worldwide exchange" rolls on ♪ all right, welcome back, and thanks for being with us here once againn cnbc i am brian sullivan. it's 5:31. if you've got to be somewhere at 5:32, you're probably not going to make it let's look at what's leading cnbc.com this morning. howard schultz stepping down as starbucks executive chair, the change effective june 26th now, schultz really is the

architect of the modern starbucks. he's overseen the company's expansion as he joined back in 1982 this is big. do not miss a cnbc exclusive interview with howard schultz at 8:00 a.m. eastern time on "squawk box. meantime, apple co-founder steve wozniak making some comments on crypto currencies, saying he hopes bitcoin will become the single global currency, adding that he bought bitcoin back when it was around $700 per coin. and twitter shares getting a nice pop this morning. investors certainly going to be happy. you know why because twitter will join the s&p 500, replacing monsanto, which is being bought. all right, here's how you money and investments look right now as we are about halfway through the 5:00 a.m. hour in new york stock futures are in the green, not a lot, but up abou25 points right now we'll see if the market run of the last couple sessions and day.her nasdaq record can happen we'll get to more on your markets and money, but first to the story that, no doubt, everybody's going to be talking about today. president trump abruptly calling

off the eagles super bowl celebration at the white house let's bring in john harwood from d.c. with more on this developing story john >> brian, this is just the next chapter in the culture war that the president has waged with the nfl and nfl ers over the tional anthem. he, of course, succeeded in getting nfl owners to require players, if they're on the field, to stand for the national anthem players resent that. particularly politically active members of the philadelphia eagles don't appreciate it and so, some of them indicated that they weren't going to come to the white house, and the president deci get a jump on what might have been an underwhelming event by canceling their invitation, and it's going to further enflame his relationship with politically active african-americans and maybe reinforce his support

among the white working-class voters that he's targeted. >> i want to pivot to another big story today, because you've got a couple of big sort of ceo or commander-type stories, if you will this one, though, coming from the private sector, which is starbucks. howard schultz, obviously, really one of the architects, co-founders of the modern-day starbucks, if you will, stepping down as executive chair, john. i mean, are people already whispering in your well-connected ear that this could be a guy that would challenge the aforementioned president trump in 2020? >> it's possible he has been flirting with that idea for some time he's somebody who has a lot of money, and so, he would be able to finance his own campaign, should he choose to wage one, not easy for somebody in the private sector to go into politics, notwithstanding president trump's success. he's not well known outside the business community, although he has had a higher-than-usual profile for a ceo, but it's not beyond the realm of possibility.

he didn't rule that out yesterday. there is a very wide-open field with no clear front-runner on the democratic side. so, if he chooses to move in that direction, it will certainly be an interesting twist on corporate executive or outside force trying to get into the political system >> yeah, this is going to be a very interesting turn to watch, in part because he had basically said, hey, i'm going to stick around starbucks for a long time, and sort of abruptly yesterday, whoa, i'm stepping down would that fit, though, john, with the timing? i mean, honestly, if somebody was going to run in 2020, i mean, my gosh, it's sort of still semi-early 2018. does this match with the timing? is that the cycle that we're in now? >> it does yes, it does match with the timing the race for 2020 is going to get going very quickly after the midterm elections. right now you've got a bunch of people feeling it out, trying stump speeches, working donors,

campaigning for demos in midterms, trying to build up their profiles and by the way, we've got primaries today in california and seven other states that will th fignificant for the midterms but after november, that's when you're going to figure out who's really running and who isn't, or who, at least, initiates a race. and howard schultz is right on time, if hdecides that that's what he wants to do. >> well, i guess time will tell if that's what he is going to do john harwood, thank you very much. >> you bet >> and of course, i'm sure we're going to try -- i'm just speculating that at 8:00 eastern time, somebody -- andrew ross sorkin -- is probably going to ask howard schultz if, hey, are you doing this because you're going to run for president anyway, big cnbc exclusive interview, 8:00 a.m. eastern time you cannot miss that l right, with all due respect to the monthly jobs number, which gets a lot of play on this fine network, today actually may bring the most important economic number this month. it's called the jolt survey.

it's out at 10:00 a.m. without getting wonky, it counts the number of open jobs and the number of people bitting their job in america joining us now to talk about this, why you care and the market, chief market strategist at metlife investment management i want to get to the nasdaq's run in a minute, drew, but i want to talk about the j.o.l.t. survey, job opening and labor turnover survey, 6.8 million open jobs as of the st number. how important is this number and why do you look at it so closely? >> it's important for two reasons. one, it gives an idea of supply and demand, right? so, we know how many people are getting hired, but with you don't know how many people were attempted to be hired, right so we want to get a sense for how effective firms are at filling open positions the other thing it tells us is how many people quit their jobs. and the reason that's important is because quitters get paid more people who sit in the same job forever year after year after year after year, firms know that, they know they're less lessly to leave, they pay them and we know that from a lot of federal reserve wage surveys

so, the more quitters there are in the economy -- >> so, quitters do win. >> quitters do win. >> to eliminate every high school gym sign -- >> yes. >> quitters never win! >> surprisingly, what you learned in gym class in high school does not help you much in life. >> or in the markets, apparently and it's an incredibly important point, because not only do people tend to get paid more when they switch jobs -- if they are looking to leave or if they do leave proactively, it tends to mean that they believe they can get another job. >> absolutely. and what we saw in the last employment report was that 14% of the people who are unemployed, roughly, actually are unemployed because they quit their jobs they were job-leavers. so, we have a rising percentage of the unemployment rate, which only reflects the fact that people are willing to quit their jobs >> so when we look at that from an investment perspective, you justked about maybe wa gains, which is, what, 70%-75% of the economy is consumer spending that throws it in there. you have the tax cut is everything sort of brewing for a continued -- i don't want to call it a perfect storm -- it's an overused kind of

phrase -- but for coued good times in the u.s. equity market? >> you know, i've been somewhat risk on in kind of my outlook for, you know, for what we do at metlife. and i think that's still the case what we'reatching for now is productivity what will actually make everything mesh perfectly will be if we see an acceleration in productivity in the second quarter, because that will tell us that the tightening labor market and rising wages that we're expecting to come off of at will actually be offset by improving productivity so people will be getting paid for because they deserve to be paid more, not because the labor market is getting that much tighter. >> do you think you will see that answer your own question this morning. >> i do believe we will see that i think part of the problem with the u.s. economy is we've been stuck in the wrong gear. we've been stuck in this idea that we can only run at 2%, and the u.s. economy's geared to run higher than 2% so, if we were in a manual transmission car, we'd be bucking down the highway, not doing very well, and we're finally getting into the right gear for the u.s. economy, and i think people are going to be

pleasantly surprised by it. >> so you remain fairly bullish? >> yes. >> i like to hear the optimism on a tuesday morning that j.o.l.t.s number coming out at 10:00 a.m i assume you'll be watching the headlines. >> i will be watching that and i'll be watching -- we watch bank lenng, we like looking at claims, everything that gives us a high-frequency look into what's going to happen with the u.s. -- >> throw any fiction in there, manga? >> i've been reading -- i've reread "fahrenheit 451" recently and -- >> why did you mention that? >> i'm rereading "1984." i saw the shown hbo and i -- >> no, no, you know what's odd about you bringing that up and i'm going to sound like a total dork right now ray bradbury died on this day, 1992 >> hewas one of the great thinkers of a generation. >> all summer in a day about a one day and five years where on it doesn't rain on mars. i'm a total dork drew matus, thank you very much. >> thank you. >> but we're dorks together and i appreciate you coming in ray bradbury, very precog of you. time for the top trending

stories. landon dowdy's back with those >> the dork is trending. >> that's okay i'm good with that i'm good with that. >> hey, we all love dorks here here's what else is trending a step forward for women i saar the first female saudi drivers got their licenses yesterday a video of the historic moment trending on social media the kingdom is ending the world's only ban on women drivers. also, this is big news i don't know if you've seen this, but reese witherspoon fans are excited. mgm grand is close to a deal of bringing the long-awaited "legally blonde 3" -- >> has that been long awaited? by who >> me. the sequel that has witherspoon reprising her role as the iconic elle woods have you seen this >> "legally blonde"? >> yes. >> i'm sure i did at some point -- >> like getting into harvard's hard you went to v tech, so it is hard. >> i am aware there is "legally blonde 2," which is breaking

news in this story for me. >> there's also a broadway show. >> "mean girls," also a broadway show. >> you know who i think are actually legally blonde. have you ever needed assistant to clean out your car? one man in southwest china did he found an 8-foot king cobra hiding in the dashboard of his van and got authorities for backup police were able to extract the venomous snake from the vehicle, handing it over to the local wildlife preservation department he was leaving his market. now, this is why i get my groceries delivered. i don't want cobras in my car. >> it's the uber for snakes. >> the best part is they extracted it with a snake-catching tong. >> the snake-catching tong is trending right now on amazon it's going to great. >> kind of dorky. >> landon, thank you nothing wrong with dorks. from dorks to sports, the washington capitals defeating the vegas golden knights in game four of the stanley cup finals last night the caps scored three goals in the first period they never looked back, winning by a final score of 6-2.

they now have a 3-1 series lead. if you win four, you win it all, which means according to my math, one more win, and the washington capitals are the stanley cup champions. we'll never see scott wapner again. tyler mathisen may also be late to work. we'll find out today i urge you to tune in to "halftime" and "power lunch. those caps fans, we'll see how they look today. still ahead on "worldwide exchange," big bank, bigger threat why one top lender in europe could be a big threat to your money here and later, talking tech. the one f.a.n.g. stock that really takes the crown we'll give you some cool details yr rng i. stick around ♪

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use mr. clean magic eraser with durafoam. brand power. helping you buy better. all right, welcome back. let's talk about now what could be a big threat to you and your money. we're talking about deutsche bank that stock coming off one of its worst weeks ever and deutsche bank, one of the biggest banks in the world shares are down nearly 40% this year joininow is kevikelly, ceo and managing partner of benchmark investments. kevin, welcome listen, we don't want to make too much of it however, if deutsche bank were a u.s.-listed bank, i mean, if they were based here -- they obviously have a stock that is here -- and it was down 40%, it would be on the cover of every newspaper, not just business, every newspaper in the united states are we underplaying or overplaying the deutsche bank story? >> i think we're actually overplaying its demise and one of the reasons why is we can look back at 2016, where all we could hear in our own

vernacular was the coco bonds, and we were really worried about the systemic risk of deutsche bank and the knock-on effects in continental europe with their banking partners now, we've come to a situation today where they've done over $9 billion of share sales, ramping up their coffers they've also divested r asset management business. the biggest issue that you're seeing right now is that their bonds got downgraded by s&p. and one of the reasons why was because of their restructuring efforts. it hasn't taken hold if we look at their q-1 earnings, trading revenues were down 9% while everyone else, from european banks to u.s. domestic banks here, were up 25% to 30% and so, when a third of their revenue comes from trading, that's a hard sign that their restructuring isn't taking hold. >> okay. well, their credit rating was just downgraded. the stock price is down 40% this year there's a lot of chatter and talk about what it means how much does deutsche bank

matter, then, kevin, to,, the s xlf financial etf? is it connected or is it its own story by itself? >> i think it is actually connected, but to a different degree that people aren't really putting together and it's connected in the fact that what's to the detriment to the deutsche bank is to the benefit of the constituents in the xlf, right goldman sachs, for example, is ramping up their efforts in europe, middle east, and africa on their fixed income side, and that is 25% of the revenues for deutsche bank. so, deutsche bank is losing those revenues, but it's going over to goldman sachs, which is ramping up their efforts so, it's actually helping domestic portfolios for investors who are looking at an, who are looking at -- who are also looking at goldman sachs. so, i think it's actually a good thing for u.s.-based invese the focused on restructuring, and

that's what deutsche bank is focusing on right now. they can't be focusing on revenues or focusing on costs. >> do you guys have a position in deutsche bank >> no, we don't. we actually -- we are actually -- we would rather short the german equity market, the dax etf, andd rather go long into the technology name over there, s.a.p., right? so, s.a.p. came out with first-quarter earnings, and they were talking about how cloud bookings were up 25% so, you actually want to -- when you start to look at european exposure, you need to really focus on what's underneath the hood, especially in your indexes and etfs >> kevin kelly of benchmark on deutsche bank, a story not going away any time soon kevin, a pleasure. >> thanks. >> thank you. still to come here on "worldwidexchange," is green the new black? we're going to bring you in your morning rbi a startling stat about the one stock that is dominating tech's record run we're going to want to hear. whu're going to be so smart en you get to the office today. stick around ♪

welcome back brent crude pitting a loss $74.54 a barrel, lowest level in a week is jeopard falling through the 50-day moving average for the first time since april 4th. joining us to talk about this and more, julian emanuel, chief equity and derivatives strategist at btig julian, good morning >> good morning. >> good morning, by the way, or good evening, if you're somewhere in eastern europe. you've got a 3,000 target on the s&p 500. that is still bullish from where we are today but at what point does the trade talk, the trade rhetoric, the trade saber rattling get you to become less bullish and downgrade your target? >> well, if you are buying stocks right now looking out over the next 12 months, you are definitely operating under the assumption that we won't have a bad outcome. it doesn't necessarily have to be a rosy-rosy outcome but the point here, is that, you

know, there can be progress. if both sides, all sides, multiple sides, walk away, and there's acrimony, there's no question about the fact that that's a recipe for heading back down towards say 2400 in the x.it really -- >> how will we know when that point has hit? because we have tariffs. we've got the canadian prime minier speaking to the american public through national television saying we're not the enemy, at least from an economic perspective. so, at what point does that nervousness hit us >> well, the question is, where's the next level of escalation, okay we know there's going to be some sort of retaliation. ard this you know, what is the u.s. response if you look at past negotiations, there is a potential that putting tariffs on will actually bring both sides back to the table as we get further into the summer. there is also potentthat, you know, let's say the meeting goes well in north korea, that

that gets the negotiation juices flowing on other accounts. the point being is that in terms of stocks, the economy is excellent, as we know. the earnings trajectory is very, very favorable, and you're actually getting paid at this point to take those risks, but we do have to keep an eye on the news flow. >> is there a bit of a disconnect, as there often can be, between the news flow and the actual underpinnings of the american economy that ma and pa in wisconsin are not going to not buy a home or a car because they're worried about a trade war in steel tariffs with europe. >> there most definitely is, and we saw it on display the last couple of weeks with the goings on in italy. you know, the fact is, is the italian government has changed hands 70 times since world war ii, and there was a thought that that was going to be a systemic crisis, and it proved not to be the case, and here we are rallying once again. >> but nothing is a crisis until it is, you know what i mean? like, we can say everything --

nothing -- you could sort of take the cool road and be like, nothing matters, man, but things do matter sometimes, and they don't matter until they do how worried are you about italy? >> to uss not systemic, and one of the reasons that it isn't systemic is because the fed is actually helping us by watching the sit the fed actually helped diffuse a part of this a week and a half ago when it talked about tolerating higher inflation. that talked the dollar down, and the dollar pressure, upside dollar pressure, is part of the entire -- >> they have their own fed over there. it's called the european central bank, buou think that our fed is sort of quietly working to help out maybe even indirectly their fed >> when the fed tells us that its sole mandate is the united states of america, that has never been true. it wasn't true over the last ten years. we don't think it's true now >> okay. and you remain opt -- 3,000

target oe s&p 500? >> we believe so. >> if that, come back and see us again julian emanuel, thank you. the nasdaq powering to another record high. traders contino love on netflix. so, here is your morning rbi maybe the most random but interesting thing, hopefully, you'll hear all day. you may know that netflix is the best-performing stock in the nasdaq 100 had i year. it's been for a long time. everybody knows that but here's what's going to make office today and why you need to watch cnbc netflix stock is up 88% in 2018. not only is that the best-performing stock in the 100, but it is 34% more than the second-best-performing stock, align technologies netflix, 34% better than the second best performer in the nasdaq 100, apparently green is the new black, and that is your "morning rbi." speaking of green, by the way, starbucks, their logo is

green. their executive chairman, howard schultz, is stepping down. will he run for president? a big exclusive with howard schultz coming up on "squawk box," 8:00 a.m. eastern time st tuned on cnbc i'll see you tomorrow. have a great day a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dawn and grease is gone.

good morning tech stocks soaring. the nasdaq rocketing to a new high, fueled partly by apple shares we'll have a rundown of all of the software features that apple announced yesterday. meanwhile, the eagles won't be landing at the white house. president trump canceling the nfl team's invitation and will instead celebrate the national anthem and howard schultz announcing that he'll leave starbucks, fueling speculation that he's planning to run for president. it's going to get interesting. i mean, that could be jamie dimon, oprah winfrey, mark cuban, the rock, or kanye. it's really going to be good we've got a lot to choose from

we'll get you ready with an exclusive interview this morning. it's tuesday, june 5th, 2018, and "squawk box" begins right now. ♪ i'm gonna run to you ♪ yeah, i'm gonna run to you >> announcer: live from new york, where business never sleeps, this is "squawk box. ♪ i'm gonna run to you all right, good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen let's look at u.s. equity futures this morning at least right now it looks like things are set to open higher once again dow futures indicated up by about 40 points after the dow was up by almost 180 points yesterday. a couple days of big gains that we've seen for the markets and as joe mentioned, the nasdaq was the real outperformer. it was up yesterday, actually by about 0.7%, very close to what we saw with the dow, but that did put the nasdaq at another record close it's the first