welcome to "street signs." i'm joumanna bercetche these are your headlines european equities follow the u.s. and asia lower after a hawkish fed hikes rates and hints at two more this year while the ecb could outline its great unwind. uk prime minister theresa may says she will not allow parliament to tie the government's hands when it comes to brexit but suggests lawmakers will have a meaningful vote on the final agreement. >> this is a negotiation i said right at the beginning of this, nobody, i don't think

anybody watching this would expect us to give a running commentary on our negotiating strategy and the negotiations we're involved in. comcast challenges disney with an all-cash $65 billion bi for fox setting up a showdown for murdoch's nemedia power. and rolls royce announces thousands of job cuts in a bid to boost cash reserves and simplify the business. good morning welcome to "street signs." it is the launch of the world cup today, but we also have an important central bank meeting coming up in the ecb later very busy 24 hours as far as central banks have been concerned. let's look at how equities have reacted to that. to be honest the reaction in u.s. markets was muted the markets turned lower after

that decision came out pointing to more hawkishness out of the fed. that transpired in asian equities trading overnight as well you can see the reaction in europe is also negative. stoxx 600 trading about a half percentage point lower in trading. let's look at individual indices and see what the picture is like a sea of red not one of the indices is trading up in the green. ftse 100, we get retail sales numbers in about a half hour's time lots of eyes on the consumer spending numbers given how weak they have been for the first couple months of the year. xetra dax and cac 40 trading weaker ecb is coming up we may get the first signals finally that the ecb are looking to unwind or phase out the qe program. ftse mib also underperforming. let's look at sectors. and here you can see every

single sector in europe is trading in the red the underperformers are basic resources down to the tune of 1.5% media down 1% as well. as some of the knock-on effects of that at&t/time warner deal being approved and what that means for other companies in that sector as well. theresa may survived the remaining challenges to her eu withdrawal bill after mps voted to back the government against several amendments the british prime minister narrowly avoided defeat on tuesday after she struck a deal promising concessions on an amendments aiming at giving a vote on a brexit agreement reports suggest downing street is not willing to discuss key aspects which could put may on

another collision course with party rebels steve joins me now you had a busy day yesterday at downing street >> i did >> you were in maggie thatcher's living room? >> her old study a large pore tral of ttrait of t lady herself looking down on me. >> talking about this withdrawal vote you tried to get more concrete answers out of the prime minister yesterday as to whether or not the parliament will have a final say on the brexit vote what did she tell you? >> the prime minister is under pressure from europe, of course, from her own party, from the opposition, from the fact she had a disastrous election campaign when she went to the country and didn't get her conservative majority. so every vote matters for the prime minister every vote could be what we call a confidence vote. the withdrawal bill, the great repeal bill, it was european

withdrawal bill, now it's just a withdrawal bill. this went to the house of lords. the house of lords said we want this amendment, this amendment it came back to the house of commons. on all of those she pretty much has a vote to try and get the government's blueprint for brexit withdrawal from the eu on the table. it's been a tough time to get one part through, they needed concessions, the government, to its own party's rebels to say we understand what you remainders are saying for a softer brexit. again, trying to pin the prime minister down on this is very, very difficult to do so i sat down with the pm yesterday, an exclusive interview, we talked about a lot of things. i asked whether the government will now offer a meaningful vote, which is an important point in the uk on brexit. >> you're getting into details of parliamentary process the key things are, there will be an opportunity in parliament.

the government determines policy and needs support to implement that policy. there are different responsibilities for government and parliament, parliament can't tie government's hands in negotiations we are in negotiations on the term of our withdrawal and our economic partnership with them and security partnership with them i'm clear also that parliament can't overturn the vote that was taken by the british people to leave the european union we're putting this eu withdrawal bill through, so they can know the day after we leave the eu union compared to the day before for businesses there will be a smooth transition, they can continue operating and know the basis on which they can do that. >> on that point, being the same question really, have you now agreed with those 12, 15 mps who

were potentially going to vote against you, have you agreed to give a meaningful vote to parliament towards the end of this process >> there are various clauses put into the bill. there was always going to be what i consider a meaningful vote in parliament obviously, there has been a lot of argument about what that means. what i have done is recognize there were terrance concerns about the nature of the bill itself, about how this was expressed in the bill. we are talking to those colleagues about the bills that i have said today will bring a further amendment back to the house of lords when the bill returns there. the key point is that we as a parliament will be delivering on what the british people voted for, which is to leave the european union we are negotiating a deal with the eu we are negotiating a deal to continue to be able to trade on a good basis with the european union. also to be able to develop trade relationships around the rest of the world as an independent trading country and not as part of the european union in the future i think that's good for the uk i think it will be good for business

i think it will be good for those who want to invest here in the uk. >> prime minister, there has been criticism not least from the institute government a couple of days ago about what is creating a atmosphere where we don't get a good exit. secrecy, divisions, and a lack of availability of information as well. do you take any of those criticisms and say i understand where they're coming from, and i'm still the woman, the person to lead us through the brexit regardless of those criticisms and i have heard those and i have acted upon it? >> let's look at wha the government has done in terms of the information we made available to people. last summer we published a series of papers about our thoughts on various aspects of withdrawal we have continued -- i have made speeches which set out opposition we have continued to publish documents. documents on the withdrawal agreement. documents on - for example we agreed on the

joint document on the rights of eu citizens living here in the uk our financial sector for the future and various other issues as we look at it we are able to make information available as appropriate. but this is a negotiation. i said right at the beginning of this nobody -- i don't think anybody watching this would expect us to give a running commentary on our negotiating strategy and the negotiations we are involved in. by definition, we set out where we want to go. we set out the policy that we are following. and then of course those negotiations have to take place. >> mrs. may in a difficult position her own party has two strong, robust factions. a lady with not a great majority in parliament. in light of the meeting with kim jong-un, i asked mrs. may whether mr. trump was a reliable

partner with the uk. she wants to do big deals with the u.s., especially the disagreement over trade tariffs, iran and a host of other issues. let's listen in. >> first of all, can i say, i welcome what has taken place in singapore. i think what president trump has been doing for north korea is important not just for that region but for the rest of the world as well. the united kingdom has had a long standing, a long enduring special relationship with the united states. this cuts across a whole range of areas so, yes, obviously it's been a defense and security partnership. we saw the united states and their support that they showed through the way they reacted after we had the russian use of a nerve agent on the streets of salisbury, a city here in the uk the united states, like us, expelled a number of russian diplomats. we worked with the united states and france on the response that

we gave to the use by the syrian regime of chemical weapons in duma just a matter of week ago and we continue to work with the u.s. on security and defense we got a good trading investment relationship with the u.s. already. every day, every working day, a million people wake up here in the united kingdom and go to work for an american company and every working day, a million people in the united states wake up and go to work for a british company. so we've got that good relationship but, yes, we want to build on that for the future and at the g7, president trump and i had the opportunity briefly to talk about how we continue to want to be able to develop a u.s./uk trade deal after we leave the european union yes, there are some issues on which we disagree. we disagree on the steel and aluminum tariffs being imposed on the european union and the uk within that. and we disagree on the nuclear deal in iran the point about the relationship is that we are able to have those disagreements and talk those through. but that special relationship between the u.s. and the uk continues. and i think will endure long into the future.

>> highlighting that special relationship with the u.s. just to recap the current situation. theresa may managed to keep her rebels within her own party at bay for the time being but with verbal concessions that we'll have to see how that will play out in the next couple months. not so much so for jeremy corbyn about 70 labor mps rebelled against him. >> and lost a minister as well >> and lost a minister so it's not just the tories fighting, it's happening within the labor party as well. >> you're right. >> this is a reflection of the politics and everything going on in relation to this grand brexit but she also said we don't need to provide a running commentary on negotiations. but the reality is we are running out of time, and we still don't have this white paper? >> i said people are criticizing

you for the lack of information to stakeholders within government and out of government the briefing going on against different constituencies in government to remind international viewers, you have philip hammond who is a remainde remainer, seen as a thorn in the side of the brexiteers, who include liam fox, boris johnson, the foreign and colonial secretary as well. again, a brexiteer, and phillip davis in charges of the department for exiting >> david davis >> whoedy say? >> phillip davis >> and you have the rebels -- >> it depends on the vote.

>> it depends on the vote. i think over the next couple of days, i think they believe this is the remain lobby of 15 potential mps who will vote against her on one of the votes on tuesday they believe they have assurances from the prime minister of a meaningful vote. why this is important is because downing street is saying they have not necessarily agreed to specifics in the amendment this could be difficult for the prime minister and could lead to a difficult situation for the government more generally if those rebels were to go back to voting against the government. >> we'll have plenty of time to talk about this in the future. >> i have gone viral on twitter because i have only been mentioned with larry the cat, larry the cat is the cat of downing street, mouser in chief. nothing i ever tweeted goes better than a cat. >> he's good fun maybe he'll tag you if you're lucky. if you want to tweet us or tweet

steve or larry the cat, tweet us at @streetsignscnbc or me directly @cnbcjou. coming up, the fed raises rates. now eyes are on the ecb. we'll discuss that after this break. jimmy's gotten used to his whole room smelling like sweaty odors.

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welcome back to "street signs. the federal reserve has hiked interest rates by a quarter point. jay powell said the u.s. economy is doing well. the fed also indicated it could see inflation rise above the 2% target before taking action. the fomc's positive outlook on the economy signaled a slightly faster pace of rate hikes with two more increases expected by the end of the year. this move was reflected in the fed's dot plot which saw three more members update their look on future rate hikes the more hawkish line from the fed came from surprise investors who expected three rate hikes

this year. speaking after the federal reserve chair jerome powell outlined his thoughts. >> we've seen inflation move gradually up towards the 2% objective. part of that has been idiosyncratic things dropping out from last march, which were holding measured inflation down. part of it is the continued tightening in the labor market and the economy more broadly pushing inflation up we continue to think and the committee continues to think that we are just about at our 2% goal, but as i mentioned not ready to declare victory until we sustain that. >> it must be said that a hawkish fed has markets now trading in the red this morning. it is another big central bank day as well. we have the european central bank, the ecb meeting later today in riga. observers are keen to hear any

details on whether they plan to wind down the bond buying program. annette is in frankfurt with the latest since the chief economist, pratt, made those comments, there has been excitement about today's meeting being a live meeting. we should get hopefully clarity and the plans for quantitative easing what can you tell us >> that's completely right ever since peter pratt was surprising the markets, this meeting has gotten a lot of attention from the markets and investors. what can we expect from today's meeting in riga? "a," more details. how mario draghi and his team see the phasing out of the quantitative easing program. the current program officially ends in september, the end of september. and it's widely expected that the current run rate of 30 billion euros a month will be phased out until the end of this year whether we get an end date or

not, that's the question because it's also clear that given all the uncertainties in the world, like trade war, perhaps italy, perhaps the ecb wants to keep a bit of flexibility so the best case is that we get some more commitment of a phasing out from the ecb, perhaps even some more details about the plans, like by which amount they plan on phasing it out. perhaps not an end date. that's one big item here another big item, markets are nervous about whether we get an indication of when the first rate hike can take place whether it could be during the first half of next year given the ecb's current upbeat interpretation of inflation development that brings me to the third big area, the new staff projections. we have seen the latest round of

staff projections in march now in june it's widely expected that they will upgrade the inflation forecast at least for this year quite substantially and at the same time we'll see a downward revision for the gdp forecast given the recent weakness in economic activity in the eurozone but inflation is key for the ecb. if the ecb feels more comfortable about the path of inflation, we could see the tightening of monetary policy happening faster than expected my guess is watch out what currency markets are doing today. not so much the bond markets with that, back to you >> interesting thank you for that a reminder that the ecb have one needle in their compass as they used to say, that's inflation. we'll have to watch out on that forecast for this year elsewhere to join the

conversation, we have kristoff reiger from commerzbank joining us on the line good morning to you. what i find interesting is that the last meeting back in april, when mr. draghi was questioned by one of the journalists in the press conference he said we didn't actually discuss monetary policy in the april meeting. now we have gone from a boring april meeting to one that is potentially live what h what has changed >> that was something that they didn't discuss monetary policy at a monetary policy meeting however i think the situation has changed profoundly since last week with this speech from peter praet. he had been arguing before for more patience, but now all of a sudden he said that basically all the criteria for ending qe have been met. >> so, just to pick up on that

peter praet weighed in on the debate saying perhaps the time has come for them to think about unwinding this asset purchase. my question to you is do you think the time is right now? or should they buy more time, assess how the data is doing and perhaps take a live decision back in july seems like we have actually lost connection with kristoff reiger from commerzbank we will come back to him as soon as we reestablish the lines. it's a big day and lots of questions about what the ecb are going to do at this all-important meeting. expectations are high after peter praet's comments and mr. weidmann weighed in and said it is plausible that asset purchases will have to end by the end of 2018. lots of questions and anticipation ahead of today. tune in later for live coverage of this policy decision.

decision time will beginal 13:30 cet and the main decision on interest rates will be taken at 13:45. we should also get potentially some more clues on whether or not the asset purchase program will be ending by the end of 2018 with that, i think we reestablished contact with our commerzbank guest. thank you for coming back. i was just saying that it's interesting that despite all of the change, is that we've seen, and also the developments in italian bond yields, that the ecb are still so intense on making this a live meeting perhaps they're better off biding more time and waiting one more month and coming out with a big decision in july as soon as september so they can see how the data evolves before coming out with a large statement that could scare the markets. >> no. i think the ecb has made the deliberate decision already last

year to end qe at the end of this year. now expectations in the market are focused on this end date already. i think the ecb would be well advised to execute this decision and i think quite likely they could do this already today with the statement at 1:45 frankfurt time >> another big topic of debate is that of forward guidance. assuming they do end up unwinding or announcing the beginning steps to unwind the asset purchase program, the next focus for the markets is the language of the first rate hike, the so-called forward guidance do you think there's possibility we see them turning more explicit and saying well past means actually six months? >> yes i think there's a good chance that when they send a more hawkish signal on the qe exit with their statement that they will actually send a more dovish statement in the forward guidance on interest rates i don't think that this will really quite go into the

official forward guidance, but in the press conference draghi could for instance specify that well past means actually more than six months or the market knows with greater certainty that there won't be a rate hike before possibly september 2019 >> we'll have to see what happens. kristoff reiger, thank you for joining us coming up on the show, what comcast's bid for 21st century's assets cou mldean for sky. why did i want a crest 3d white smile?

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i'm joumanna bercetche these are your headlines european equities follow the u.s. and asia lower after a hawkish fed hikes rates and hints at two more this year while the ecb could outline its great unwind. uk prime minister theresa may says she will not allow parliament to tie the government's hands when it comes to brexit but suggests lawmakers will have a meaningful vote on the final agreement. >> this is a negotiation i said right at the beginning of this, nobody, i don't think

anybody watching this would expect us to give a running commentary on our negotiating strategy and the negotiations we're involved in. comcast challenges disney with an all-cash $65 billion bid for fox setting up a showdown for murdoch's media power. and rolls royce shares powe higher after announcing thousands of job cuts in a bid to boost cash reserves and simplify the business. we have some uk data coming out. the retail sales number, which appears to be a bumper number, you can see sterling is actually bouncing it bounced 0.4%. uk may retail sales have come in at 3.9% versus april's number of

1.4% the expectation for it was to come at 2.4% so that is a huge beat versus expectations also big rebound versus the number back in april it is also the biggest year-on-year increase since april 2017 interesting because we have spent the first couple months of the year talking about the woes and health of the british consumer it looks like for may things have bounced back a little bit some of that could be on the back of the slightly warmer weather. i don't say that lightly these numbers are closely correlated with british weather. from that, let's look at how other currency pairs are trading. sterling is bouncing up 0.43%. euro/dollar is trading stronger, up 0.25% some of that on the back of hawkish expectations going into the ecb meeting.

dollar/yen at the 110 mark and the dollar/renminbi flat european equities is a sea of red. the underperformers are ftse 100, down. ftse mib is one of the lagging indices, down 150 basis points, 0.7% that is again out of some more combative comments out of the italian government this time with respect to their position on eu's trade deal with canada again, setting themselves up on a course of collision with the rest of europe we also had the fed meeting yesterday. let's look at u.s. futures this morning. dow seen opening up 20 points lower. nasdaq about 16 points lower all of those indices struggled after that more hawkish fomc meeting data last night.

comcast has put $65 billion on the table for 21st century fox assets putting the cable group against disney's current bid. the offer represents a 19% premium to the disney deal at $35 a share in cash. comcast, the parent of cnbc, is reportedly planning for a counter offer from bog iger's group. comcast says it plans to pursue the $30 billion takeover for sky as well along with the offer for fox. uk regulators have cleared bids from comcast and fox in the battle for the british broadcaster. steve also spoke to matt hancock and asked if the government had a preferred owner for the broadcaster. >> no. this is a uk regulatory approach i'm the decision taker in that

everybody has to go through that process. we looked at the comcast bid and decided there wasn't the need to issue an intervention notice we looked at the fox bid, that has gone through a process but we're nearing the conclusion of that as i set out to parliament last week we have an approach in the uk which i'm proud of which is to invite investments from around the world. >> when it comes to dealmaking, jim chanos says silicon valley is the one to watch. he said companies like netflix don't need to be concerned about these media megamergers and that they will continue to pose a threat to incumbents >> it seems netflix is providing difficulties for the other companies which is why you have the mergers. as i read the counts

the judge said basically the same thing that it's not just the need kra companies we have to look at for antitrust. we have to look at silicon valley as well they are the real competition. >> let's bring in tim mulligan before we get what it means for the sector as a whole, i want to ask specifically about at&t/time warner they finally got approval. it will go ahead how easy will the integration be on one side you have essentially a phone company, on the other side an entertainment behemoth how easy is it to bring the two together >> you're right. they fundamentally have different world views. they have different cultural values they have big, significant combinations of subsidiary companies. that will be a challenge let's remember that at&t has a substantial pay tv business through their fiber delivery already in the u.s

they have been preparing the ground for this kind of strategic move for the last few years. certainly several years before the approach was made to jeff bukus the ceo about the merger they were trying to integrate a content play into the offerings. >> do you expect there to be more types of vertical integration in the space or is it specific to at&t because they have been preparing the ground work for this, they have a pay tv base already, so from that perspective it's easier for them than, say, verizon to venture into the space >> there are two ways to look at that first of all, what you have now is the logical outcome of the increasing pressure on the traditional content providers who sat at one side of the value

chain. if you look where we are now, the whole thing behind these mergers is about shifting consumption from traditional distribution efforts to digital distribution methods you had jim chanos talking about the netflix factor absolutely huge. netflix is a global leader in subscription video and demand. they are actively disrupting traditional media distribution networks on the one hand this is the start of more to happen. but on the other hand you only have a certain number of combinations actually having the capital resources to actually put these mergers into play. this is why we are down to disney and down to comcast to bid for the fox assets there's not anyone else within the traditional media or telco sectors who are in position to

make those kinds of -- if we're talking bluntly, bets for future growth >> before we get to comcast/disney do you imagine in a couple years time there's only three or four large vertically integrated conglomerates around because i will be impossible for smaller players to compete >> that would be the probability. now the areas where that can be complicated -- going back to the former piece with jim chanos, all this challenge around the at&t/time warner merger has been about trying to make the deal work from the point of view of traditional pre-digital regulations around media combinations where we are now is a fundamentally different landscape where it's the digital operators who are driving destruction and innovation

netflix is a huge disruptor but they're on the distribution chain. on the one hand you have the content providers. warner brothers, the biggest stand-alone unit of the time warner group is on one hand. on the other hand, you have netflix who will distribute content and in the middle, the telecos. what's happening, what comcast is looking to do, what disney are looking to get expertise in and assets in is to create a vertical integration where you own the assets, the content assets, the infrastructure, and you own the distribution our current media regulations are not prepared to deal with that because that's outside the traditional media regulation >> i want your thoughts quickly on the comcast bid for fox's assets do you think the fact that they're going to put forward an all-cash offer makes it more likely that comcast will come out victorious in the situation?

>> yes bluntly speaking think which of those potential partners is most likely to provide value to the fox assets going forward the ones that control the infrastructure and already have distribution in play that's comcast >> tim, have to leave it there thank you very much for joining us that was tim mulligan from media research sticking with the tech theme, tech firms and institutional funds are set to invest more than 2 billion pounds in the uk creating around 1,600 new jobs as part of a government-led initiative to boost the domestic tech sector speaking to cnbc, prime minister theresa may outlined the opportunities she sees for innovation in the uk and the measures the government is taking to attract talent we're open for business and open for the brightest and the best to come to the uk

for the tech sector particularly they want to be identifying those bright mind around the world and encouraging them to come here to the uk. what we are doing now is setting up start-ups start-ups who are sponsored by incubators for example, can actually be able to come here, set up in the uk, and we can see them taking advantage of what the uk has here, a tremendous ecosystem around the tech sector >> steve also spoke to others who have committed capital to the uk tech sector >> we're doing really well the best in europe but we can do better on a global stage. >> we need to continue to highlight why this polyculture of england and not a monoculture like silicon valley is the place people want to live, enjoy lives and set up businesses. >> we need to home grow in s.t.e.m. there's a lot of talk about s.t.e.m. we need more action.

s.t.e.m. in schools is happening. it's happening at a younger age. we have about 650,000 people growing up in s.t.e.m., but there's a drop off after that. >> we always found in the uk, particularly in fintech, you have great talent in the finance and the technology world, which you don't have anywhere else maybe new york is probably the only one that comes close. so we've been able to attract a lot of talent to our business. we have a big commitment this year hiring an additional 200 people in the uk. >> in corporate news, shares in aviva have hit a record high after a 23% pre-tax growth for the full-year. they announced cost savings of 25 million pounds. speaking to "squawk box" earlier this morning, the ceo said investing capital expenditure and technology can help

companies boost bottom lines >> data applied to capex cycles can take costs out if you were a producer of 3 million barrels of oil a day, you take a dollar out of a barrel, that's about a billion dollars that flows through to the bottom line. you can do that using digital technology >> autos are also in the spotlight. volkswagen shares are lower after the carmaker was fined 1 billion euros over its diesel emissions scandal. prosecutors found vw sold over 10 million cars with a cheating software that understated diesel emissions. volkswagen accepted the verdict. this is one of the highest ever fines imposed by german authorities on a company renault's chief executive, carlos ghosn will step down before his term ends in 2022

he said he would step down but stay chairman and chief executive of the renault/nissan/mitsubishi alliance. and rolls royce is trading higher as they plan to slash 4,6 00 jobs to streamline the business the company says the cuts, which represent about 9% of the work force, will help the enginemaker meet its free cash flow target of 400 million pounds. elsewhere, unilever shares are slumping after warning first half sales will come in below the 3% to 5% full-year target. the firm also said it is extremely unlikely to remain listed in the ftse after consolidating its headquarters in the netherlands the stock is down about 3% or so coming up, uk international trade secretary liam fox on brexit, china and donald trump

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welcome back u.s. president donald trump has

sparked a war of words over the oil price ahead of the opec meeting next week. trump tweeted crude levels were too high saying opec is at it again, not good. this is the second time trump expressed dissatisfaction with oil prices iran's opec governor told reuters the u.s. couldn't place sanctions on two of the cartel members and then blame it for price volatility president trump will reportedly meet with trade advisers to discuss implementing billions of dollars worth of tariffs on chinese goods trump will unveil a slightly smaller list of products than initially tabled the final amount is likely to remain around $50 billion. all eyes will be on that announcement which is expected tomorrow steve spoke with britain's international trade secretary, liam fox, and asked what he

thought of president trump's rhetoric on trade and defense. >> we understand some of the reservations and analysis made by the u.s. administration in relation to chinese overproduction in relation to market access issues in china. to force tech transfer we understand reservations and as a former defense secretary i understand reservations about funding of nato when the united kingdom leaves the european union, it means that the eu members of nato are carrying less than 20% of the budget of nato that's clearly unsustainable and robert gates, when he was defense secretary in the united states and i warned that at future united presidents and taxpayers would not put up with that so we have sympathy with that. where we have our difference is the mechanism applied to that. we think to use the 2-3-2

mechanism is not an appropriate vehicle. because it has resulted in us all spending a lot of time on blue on blue action between allies, and not addressing the source of the problem. >> but -- we're in downing street where one of its previous inhabitants played heavily on special relationships, churchill to get roosevelt's sport in the 1940s. burr we donen but we don't have a special relationship anymore we are getting no special concessions. the president is turning his back on the uk in many ways, it seems. what hope of a meaningful trade deal on a level playing field do you have with the u.s. >> the tariffs are being applied to the united kingdom because we're part of the european union. whether or not the united kingdom would have been granted an exemption we would have been required to apply counter measures so we're tied into european union trade policy

when we leave the european union, we'll be free to follow our own trade policy for the first time in more than 40 years. so we will want to see what flexibility we can have, and where the united states wants to go the trade benefits that we can bring of greater liberalization is a separate issue. we worry that what the united states has done, the mechanism by which the u.s. has displayed its irritation may lead us to not just counter measures, but counter measures on those and an escalating tit-for-tat trade war. there are no victors in a trade war. there are only casualties. >> so the president is wrong in taking on mexico, canada eu, the united kingdom >> we would like to know what the end point is is the end point that every country is in balance with every

other country in trade that's not a there's a cclassice trade view, and a free trade view has seen economies prosper. i'm a believer in that free trade vision speaking of uk politics, looking at live pictures of uk brexit secretary david davis answering questions in the house of commons we will bring you any headlines if and when. the world cup kicks off in russia when moscow takes on saudi arabia however the spotlight is on spain which fired its manager after he failed to tell his

players that he agreed to join real madrid after the tournament adam joins us to discuss lots of excitement in the first couple of days before it has kicked off >> talking about the ecb or football now, aren't we? >> we are talking about football >> very exciting 4 1/2 weeks of football. 64 games to enjoy. kicking off with russia against saudi arabia some are saying it's not the most exciting first game but it's the world cup kicking off nonetheless. this is a look at the opening two days worth of fixtures the games come thick and fast. there's quality throughout just want to draw attention to the match at the bottom, spain against portugal big enough game any way, but spain have been thrown into chaos because of the manager

there, he's agreed to join real madrid as head coach thought he would take that up after leading spain, but at the same time his employees at the spanish f.a. were not pleased he didn't know about it so he lost his job the day before the world cup that's crazy they put in place from the inside fernando herrero, a spain legend he has already taken his first training session he's been charged with picking up the reins of a talented squad that were a favorite >> lots of uncertainty and leadership changes-like t like politics in spain. goldman has brazil, france, germany and portugal as the top teams. do you agree with that >> it's not a huge leap to say that brazil, the five-time winners of the world cup, france who won it in 1998, european champions in 2000 as well. france have a hugely talented

squad. just the players they left out lacazette, martial benzema, they're the players not on the squad they're a good value those are the top nations at the world cup. and every chance that those could be the final four. >> i'm banking on england. if not england then argentina. for more on the world cup and more from the cnbc sports team, head to cnbc.com let's look quickly at u.s. futures. they traded lower after the fomc decision seen opening up a bit lower, but not much, about 5 points or so be sure to tune in later for live coverage of the ecb's latest policy decision decision time gibens at 13:30 cet. that's it for today's show

it is 5:00 a.m here is your top five at 5:00. comcast making a $65 billion all-cash bid for parts of 21st century fox. the european central bank meeting now. their rate decision considered by many to be more important to you than your own federal reserve. secretary of state mike pompeo saying tough sanction also remain in place against north korea. elon musk putting more skin in the game. we'll tell you what he did with tesla stock. and bitcoin trying to recover many ar