welcome to a special edition of "worldwide exchange." live from london i'm brian sullivan we are going to hit everything from the markets to your money to mna and the best bet for your investments now. buckle up. it is monday, june 18th, and "worldwide exchange" begins right now. ♪ ♪ how could we not with the music. good morning, good afternoon

from wherever you are watching we are live from london today and tomorrow there is so much to get to first here are the five big things that are happening to your money right now on this monday morning global markets are mostly lower. futures in the red trade fears weighingn investors and oil prices sliding. google making a big bet on china, investing $550 million in ecommerce giant jd.com a strong earthquake rocking japan overnight. at least three people are dead. tesla is investigating what caused a model s to burst into flames in california over the weekend. "incredibles two" taking the top spot in the box earnings estimated $180 million more on all of those stories coming up. first, here's how your money and the global markets are setting up their monday morning and it is red on the screen the big theme this week is going to be the massive opec meeting in vienna, austria, wednesday, thursday, friday

let's begin with the equity side we are seeing dow futures down indicating a drop of 128 points at the open. one reason may be oil. now oil is down a bit this morning. not a lot. it's come back just a bit, but this is all ahead of friday's opec meeting and the decision as to whether or not opec will dial back or end the 1.8 million barrel per day production cut deal that was made back in january of last year remember, the saudis and russians have been meeting reports suggest that they may agree to raise production or cut back on that cut program that has certainly got oil stocks and oil related stocks ft, check this t.ely. e xes oil services etf on friday having its biggest one-day drop in a number of months we are watching all the oil and gas stocks for you today treasury yield backing up just a bit as well. you know how far off that 3% yield does seem to be or 2 point be point 9% for the benchmark ten year in the state.

the weakness being reflected in asia markets japan and chinese exchange, nikkei harder hit, down 5.7% hang seng down half of a percent. here in europe the ftse 100 is holding up the best. when we say holding up down fray the dax and the cac 40 in france are down 40 aboutrespectively. we are going to bring you some of the best investing minds from the u.k. over the next 48 hours. one of those is right here, alex crook, fund manager. co-head of mini equities good to see you. spoken in the states, never in the u.k. we appreciate it. >> long travel for me. >> couplks dowthe road okay stock futures, oils, opec this week right now i know you're a long-term guy, but if we speak

short general term what are the shorter story lines for our viewers? >> less oil in paris i think it's tightening of credit in the u.s. fed increasing rates, maybe a bit more aggressively than we thought at the beginning of the year and whether that will affect the bond program. >> there are so many, what is it, known unknowns we know the ecb is dialing back on their quantitative easing we know rate hikes here are likely we know credit is tightening in the states we don't know the big unknown is how much all of that is going to be reflected in the markets. earnings growth and general economic stimulus around the world overcome those negatives >> to me the big areas that we keep looking at are the banking sectors. the banks have got to step in and create that money supply and increased lending.

we've seen good supplies on cap exspending can the banking sector step up they've been weak. shares are weak.investors e sa t sure this year it's been one of the worst sectors. there are some warning signs. >> let me ask you more directly. can banks, can global economic strength generally outweigh the negative of a stronger u.s. dollar in europe and higher oil prices which are, by the way, pricing up >> a bit of increased supply might bring that down. that helps inflation numbers i think largely yes is the answer yes, i think we can. unemployment is still very low people are creating jobs and wages and a little bit of inflation coming through mainally we might just muddle our way through here like i said, there are some warning signs. >> the majority of our fund managers in the united states will tell you that as much as they love america, maybe most of our gains seem to have been made

and that europe generally remains a better economic investing spot than the united states does the european view mirror that >> i suppose we sit here with brexit on e horizon in the u.k., maybe we're a little bit more cautious. there are some challenges in europe. >> are you going to tell us the u.s. is better than the u.k. >> economically wise it feels it tax cuts coming through and a strong dollar for some of those companies. >> make our viewers in the united states an expert in the european and u.k. policy in the next 45 seconds. help us understand what the most important things are for our viewers there in a global economy. >> i think always remember europe/u.k., we're a lower growth union less entrepreneurial, expect

things the grade rise doesn't happen it's a nudge i think we're okay the ecb's action is coming through, we will see that lending growth pick up in the second half. >> one of the best places to make money for our viewers globally right now is where? anhow? >> we think still china. china play, particularly the consumer you saw google investing in consumer and the retailer there and i think that consumer spending, nominal growth is heading towards 10%. good wage growth and spending increasing so trying to -- >> chinese domestic plays? >> you cem fin >> harder to buy in the united states in shares, hong kong you can buy easily as an american investor domestic chinese share difficult. >> find the funds with access. >> amazing fl how it works. >> alex crooke, we'll see you soon. nk you. even if you don't care about the federal reserve in the united states, you need to care about the european central bank.

it is arguably the most important central bank in the world because not only does it look like it's going to end the monetary policy easing, their version of qe, but mario draghi will also likely try to raise rates before he steps down the bonds here are moving a bit on the global stock weakness yields dowa bit.t's ti this togu and your money whether that's here in europe or in the united states and bring in david owen thank you for joining us. >> goomorning. >> how important is the ec -- we've talked so much about the u.s. fed for years -- >> yeah. >> -- is the ecb the most important bank in the world right now? >> well, it is it's also really important for u.s. markets the way ecb qe has been working, they've been buying bonds from u.k. based investors basically the money has been recycled into the u.s. fixed income markets we now have a situation where the eurozone entirely owns about

2.5 trillion on the u.s. fixed income and obviously qe is going to be coming to an end in december. >> your qe, the european version? >> yeah. exactly. at that point this recycling may welcome to an end. we already see the margin, you know, exposure of u.s. investors and u.s. credit in particular. i think that will be a story the other big story in 2019 and 2020 is increasing divergencey n the u.s. the french has never been higher. >> you know the dooms sayers in there. they were saying when the federal reserve in the united states ended quantitative easing that the punch bowl was over get out of stocks. if you listened to them you left a lot of money on the table. can the european and global markets do well when the ecb

pulls that punch bowl away >> if the eurozone recovery goes up and also japan continues recovering and we have a reasonable transition through the whole growth, brexit, it's ongoing, although i think the markets can also go higher. >> a lot of this. >> but at the end of the day so much comes back to growth. you have relatively strong growth in the european economy, thatill support particularly european equities. the same story in the u.s. we want to get interest rates back to a normal level the u.s. is heading out there first. europe is trying to follow. >> support european equities wall street is street speak for you can still make money buying european stocks? >> yes, you can. >> jeffries has a world view, we know that. >> absolutely. i think one can still be very optimistic about the outlook of some markets depends on growth in the growth economy. particularly focusing on europe.

if we have european growth on the up side going forward. that obviously would be a big supporter of markets more generally. at the moment, ware traveling and the ecb is dovish i'd sa st week. the market remains supported in general. you know, we still have very low bond yields and people want to still put their money to work. >> walking around london, the amount of construction is shocking. >> yeah. >> even coming from the states. >> yeah. >> when i look at $1 million plus for a 1 broom small apartment in london, you can't help but wonder, have things gotten too -- is it easy money policy in the past gotten too exuberant? are we a little bit irrational in europe as we were in the states >> well. >> it seems incredible what's happening outside the windows. >> at the end of the day the european central bank are looking at it and trying to head off where they see problems emergin emerging certainly housesiing is expensie

in the u.k. and pockets of london they're trying to head that off. >> all of this construction and spending ahead of brexit doesn't make you nervous at all? >> yes, absolutely we are not great thoughts on where the u.k. economy is going over the next 24 months. at the end of the day the stock market in the u.k. is very different, very international. in a hard brexit story it supports the u.k. markets, but at the end of the day you have to be optimistic around the u.k. economy. that will remain a slow growth economy. >> david owens, it was a pleasure to have you on set. >> thank you all right. back to corporate news state side tesla making progress towards its goal of producing 5,000 model s cars per week by the end of this month. elon musk showing off the new production line in a tweet it is the third line of the factory in fremont, california it was built in three weeks.

it's rolling out the high anunced recentlyl 3s that they musk congratulated the workers but says, quote, radical improvements are still needed to reach tesla's production goal. sticking with tesla, another troubling story around that company which is now looking into what caused one of its model s vehicles to catch fire in california. landon dowdy back at cnbc hq with more. landon >> that's right. mary mccormick posting this video of her husband's tesla on fire it happened over the weekend her husband was forced to pull over to the side of santa monica boulevard and evacuate the vehicle. it was not in auto pilot mode or involved in an accident. she posted this video saying, thank god my three little girls weren't in the car

tesla saying we are glad our client is safe and we're investigating to find out what happened >> brian, back to you. we're going to see you in a bit. on deck, we continue our special coverage from london with so much economic good in ama, are the markets ignoring a big bunch of red flags. plus m&a mania, retail detail and your fulllobal market runwn we have a lot more to do with all-star guests on set all hour. this scientist doesn't believe in luck. she believes in research. it can t than 10 years to develop a single medication. and only 1 in 10,000 ever make it to market. but what if ai could find connections faster. to help this researcher discover new treatments. that's why she's working with watson. it's a smart way to find new hope, which really can't wait. ♪ ♪

back to the national markets and your monday morning markets. futures down more than 100 points oil sliding just a bit more on markets in just a moment right now, some of your biggest single stock stories on this

monday they include google, a huge deal there and maybe a blow to amazon.com google investing $550 million in chinese giant jd.com part of the deal google will promote jd products on the shopping service it will not involve nany new initiatives. also in the news, oil services halliburton and baker hughes have been awarded 7 billion in services contracts from norwegian oil and gas producer equidor. the contract is for a few years. we'll watch them. virgin money has agreed to be bought by cybg for $2.26 billion. it will create the biggest bank, a guy you may have heard of, richard branson, owns 35% of virgin money now to your money.

you know the macro setup in the state. unemployment is just 3.8%. earnings growth up more than 20%. gdp could come in at more than 4% oh, yeah, small cap and tech stocks domestically, all they do is keep making new highs things, in other words, are good joining us now, founder and lead market strategist at north man trader sven, thank you for joining us warren buffet selling part of usb. the drywall manufacturer in the united states. buffet loves to buy low and he loves to sell high when you see warren selling, does it make you think maybe now's the time >> well, look, when we looked at the recent rally that we've seen, like a month ago we talked about s&p maybe reaching and filling the gap at 127.50. the question is do we now see an

improvement in participation what we've seen is a divergence in favor of a few stocks making these gains. you just mentioned all the back drop of e good news. >> so much good news. >> so much good news you know, ironically the larger market is not participating at all. >> why not that's the mystery. >> maybe it is a mystery, maybe it's in the a mystery. on the surface we have this accumulation in a few stocks with all of the hype, the fangs and even boeing. the ones that control a large portion of the ecf allocations the nyse, the composite ip be decks with all of the 2,000 stocks in it is down on the year 42% of the components are below the 200 day moving average and at the same time we're seeing volatility so there's something going on at the surface. the question that we're all facing here is obviously gdp may be peeking here in 2018 as well

as earnings growth 2019 is going to be a different year we still have some of the positive effects but then things are -- >> let's go back to the previous story. this is a very important one i know it's early in the states. everyone take another sip of coffee and listen up everybody is buying 10 or 15 stocks. >> yes. >> i'm being a little facetious but you get my point >> right. >> there are two very different ways to look at this story number one is good news. they sell those stocks and buy all the other stocks lifting the tide number two, they sell those stocks, take their money and go buy something else unrelated to equities that's bad news. which one do you think will play out? >> well, for the very short term we're fairly over bought on the market so i expect a test here in the next few weeks in terms of the recent rally. and as long as -- i'm looking at a few of the technicals. as long as we can hold about 2700 i think markets are relatively fine. until we drop below 2750

the risk for everyone here is that so much of the market value is now concentrated in the few stocks if they turn, so far they have not shoni signs of turning. >> they have not >> no. they keep on going they keep extending very much beyond technical norms and so what happens is if you get a turn in these stocks, they obviously will have a disproportionate impact to the down side. >> can you quantify disproportionate impact? what happens if amazon or netflix or google starts to get sold off en masse? what happens >> at this point some of these stocks now have -- i think the top four fangs actually control more market cap than germany's entire gdp >> about 40% of the qqq nasdaq 100 etf. not diversified. >> it's not. if you are on qqq then etf, 10 stocks at 55%.

it's that narrow much of the a scent is attributed to this few. >> we've talked about ecb, oil, currency, bond yields. is the fate of those couple of stocks to you then the most important thing for the macro markets right now? >> i'll tell you what. this bifurcation that we're seeing in the market it unusual in the sense we've seen this before. in 2015, for example, for months the market was in a tight range. the internals kept deteriorating. then there was a trigger boom, we had a quick down side same thing kept happening in 2007 we've closely watched for the divergence as long as they don't matter, they don't matter. when they do matter, then the impact and the weight is very significant. >> sven, do me a favor and do us a favor. when you see anything technically that makes you think those are going to turn, can you let us know? >> absolutely. >> we'll get you back on >> sure. still to come on the london

calling, scores and more brooks koepka's historic big win. in case you missed it, don't worry. we have highlights coming up we are back on wex right after this let's begin.

yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. top stories this morning nbc's frances rivera in new york with more. frances? >> reporter: hi there, brian, good morning three people have died and dozens more injured after a

powerful earthquake hit osaka. they're calling it a 6.1 magnitude quake. one of the strongest of its kind on japan's scale from 0 to 7 there were rep of structural damage from building collapses, damaged pipes, scattered fires no tsunami warnings have been issued. a mandatory evacuation is underway for a community in southern indiana after a train derailed and burst into flames residents within one mile of the crash are being asked to leave a release from a rail car containing propane they say there are no reported injuries two locomotives, 89 loaded rail cars and 9 empty cars. after missing the masters bee injury, brooks koepka was the first repeat winner. after a four-way tie going into the final round, koepka found himself down burger finished sixth place at 6

over a double bogey and a par four dropped him out of the top three but koepka cruised over to the finish line tapping in a bogey to finish at plus 1 and win this year's title brian? >> yeah. i know, frances, here in london a lot of people were watching the screens. they soccer on one and the u.k.'s tommy fleetwood. >> it was father's day you have to man the grill, too, sure, brian. >> man the grill i like it. frances, thank you. still to come, the drop in oil prices today and the biggest drivers of the oil market ahead of this week's big opec meeting in vienna, austria we're going to set you up with what you need to know and how it ties into the global money and the economy. stick around jimmy's gotten used to his whole room smelling like sweaty odors.

yup, he's gone noseblind. he thinks it smells fine, but his mom smells this... luckily for all your hard-to-wash fabrics... ...there's febreze fabric refresher. febreze doesn't just mask, it eliminates odors you've... and s for fa ...gone noseblind to.ab with up to twice the fresh scent power, you'll want to try it... ...again and again and maybe just one more time. indulge in irresistible freshness. febreze unstopables. breathe happy.

market alert wall street pointing to a triple digit drop for stocks at the open trade fears and oil weighing on investors. crude realities. oil under pressure ahead of this week's big opec meeting. we're going to find out what is weighingn oil right now. mall madness what's hot, what's not and how to make money from both. it is monday, june 18th, 2018. you're watching "worldwide exchange" on cnbc. ♪ ♪ >>welcome back thank you for being with us here on cnbc. i am brian sullivan.

we are live from london today and tomorrow let's get a check on what is leading cnbc or as landon dowdy calls it what's hot on the dot. >> hot on the dot. developing story on audi rupert sadler has been taken into custody in germany. this is in connection with the diesel emission scandal. audi parent volkswagen has already pleaded guilty shares of volkswagen are lower this morning. google investing $550 million in chinese giant jd.com. google will promote jd products on its service and "incredibles two" taking the top spot earning an estimated $180 million the film smashing the record for the biggest domestic movie for an animated movie.

topping "finding dori. big weekend there. here's how your money and investments look as we are halfway through the 10:00 a.m. hour in london, 5:00 a.m. in the states stock futures coming back and they are indicating a drop of 146 poents on the dow. again, solly in the red. the s&p 500 and dowand nasdaq, the same weakness reflected. asia first, as you can see we are downcross the board on the major markets. the nikkei down 3/4 of 1%. in europe, maybe the volkswagen news weighing in on the german dax. france losing steam in the past half an hour just under 1% the ftse 100, the big u.k. index here holding up the best by that we mean down the least. let's get more now on the markets, your money and the macro setup and bring in mike bell global market strategist at jpmorgan asset management.

mike, welcome. we have talked so much about how strong everything seems to be globally you've maybe pardoned the sort of over worry, but are we supposed to buy low and sell high in other words, if the markets and things are so good right now, is it looking like a time to maybe take some profit of f e the table or continue to invest? >> the equity markets never peak more than 13 months before a recession. if you're comfortable that there's no recession through the summer of next year, which we are, then it still makes sense to be over weight equities at this stage. >> riding it out >> yeah. i agree with theroad principle that your best returns come when the economies are at at worst point when you're buying on cheap multiples. i would expect lower returns in the late stage of the cycle. we think we have a little bit further to go. i think the risks start to grow as the fed hikes rates this year and next year. that starts to put some risks back to 2020 in play

it's a bit too early to be pricing that the market tends not to price that far ahead. >> if you're under 35 years old in the united states or europe, you've never managed money in a rising interest rate environment. we haven't really had one since 2004 14 yea ago so how do we know that the men and women out there that are going to be allocating capital are going to be able to do it in an interest rate environment that they've never seen if they're under 35 years old >> yeah, i guess the key thing is if you look at rising interest rates, historically rising interest rates are a problem for equities interest rates went up it's only when interest rates get to where it started to cause some problems in the housing cycle, corporate sector. our view is that the housing sector looks fine this time around the concerns are more on the corporate side you look at leverage particularly within u.s. investment grade credit. >> record amounts of corporate debt globally on the books in

that same rising rate environment. i'm not trying to be chicken little and say the sky's falling, but when you've got raising rates and record amounts of debt, it's not to put together that scenario where bad things can happen. >> yeah, i think that is the medium term sk so as interest rates go up, i think eventually it starts to potentially cause a little bit of a squze the up side risk to that is if you get a productivity pickup, business investment is looking good a near record amount of businesses are saying it's time to expand. if business investment picks up productivity growth can offset that on corporate margins. i do think now is the time to be moreautious on investment grade credit but not yet getting cautious on equities still a little bit of room. >> are you in the recession maybe likely in 2020 we're starting to hear a few people like skype, guggenheim,

not next year but the next year and a half to your point, you've got maybe another year left in the equity markets. >> those medium term risks are certainly building with the fiscal stimulus from the u.s. it looks hard certainly in the sort of first part of next year to get a recession because you're still going to be getting it coming through in the fiscal stimulus. as they go off in response to that strong growth i think it poses some risks beyond next year the market tends not to price more than a year in advance. i think you have another six months through the end of this year to do well and then you have to become maybe a bit more. >> doesn't the u.s. market have a bit of a secret weapon in stock buy backs? stock buy backs right now, record highs. >> yeah. >> when we talk about, oh, can you get earningsroh? a t easier to match targets on earnings when you buy back a bunch of your stock in. >> that's very key it's important for investors to look at the buy back yield

they look at the s&p 500 yield and say it's not that attractive globally add in those buy backs and it really is. particularly with some of the financials when we look at some of the financials you're getting very healthy returns even if they're staying where it is. we like u.s. financials. >> likes u.s. financials within the context. probably a year left in this market mike bell, jpmorgan. i tried to shake the worry out of you, but you stayed calm and carried on mike, we appreciate that, thank you. switch gears now to energy there is no short of drivers in oil and the oil market stocks these days, but which ones are going to be the most important to watch dominic chu, cnbc hq with more on this important story, dom >> brian, as we talk about the multitude of drivers, we know all of that is come to go a head when opec meets in vienna. we reached out to our regulars to find out their thoughts of what they're watching in the

coming days and weeks with regard to the oil market that could really move things we'll bring a few of them because we can't go through every single one of them here's a sampling of what we found. first of all you have jpmorgan they're saying the resynchronization of developed market growth and trading of the recent u.s. dollar strength expected in the quarters ahead should generally support commodity prices but there is still, of course, ample risk that can spoil the party watch the commodity things we know that let's move on to another aspect of it. we're talking to lima croft. she says with the u.s. shale producers facing infrastructure bottlenecks, it's ing to be saudi arabia once again back in the driver's seat exerting significant influence in the market in 2018

all eyes on what kind of action they call for. as we talk about the meeting, saudi arabia the most important thing to watch we'll finish it off with price action, chart watching, technical analysis however you want to call it. this is tamar esner. she's the senior energy analyst. she says if oil prices come down ahead of this meeting, which they have, there is less need for them to increase production as much. the idea is they would increase output because oil prices were getting too heated you're taking off some of that pressure and eased the pressure, brian. as we watch opec, maybe they won't go through as much of a production cut or cuts in production like you pointed out later on because prices have moderated. we are, of course, brian, $20 higher a year ago on wti crude prices it's a little bit fun to watch what's going to happen with

these guys. >> did you watch the world cup he was sitting next to vladimir putin. i'm sure oil was a big part of that as thrussians and saudis have come together a little bit in agreement against iran. >> yeah, we talked about opec plus we have the oil producing countries and you add in guys like russia, others out there. there is this notion that it's not just opec plus you put together saudi arabia and russia, two of the top producers and the united states as well and all of a sudden you have opec plus is driven around

just what saudi arabia and russia have to offer like croft said, this meeting friday is going to be important including what saudi arabia is pushing for. you pair them with russia, they become a formidable opponent or partner in this case. >> yes, we know unfortunately our boys, the u.s. did not make it into the world cup. opec versus the shale oil boom we have become the swing producers. allies and unlikely mergers are happening in the oil world because of what's happened in the united states. >> absolutely, brian you know this better than many other people out there because you've covered it so extensively like balkans and elsewhere this idea that the u.s. has become the most important pivotal swing producer because of hydraulic fracturing and fracking, it is now the u.s.'s role there. we have the ability as an oil producer in this country to

basically turn on and off those spigots fairly rapidly we can become the influencer over prices much more son a lot of other producers out there. >> we'll have more on all of these story lines tomorrow and the days leading up to the meeting. dom chu, thanks. we'll see you soon. >> you've got it. still to come on "worldwide exchange," megamerger mayhem could more m&a kick off over last week's deals. we'll discuss after the break. if you own disney, listen up something happened this morning you're going to want to hear 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

in drug stores nationwide. prevagen. the name to remember. all right. welcome back if you own shares of disney, listen up this morning because there's a big downgrade there. pivotal downgrading from hold to sell brine weisner says the recent sellup fails to show the higher price pay for fox's assets will reduce the value of disney to the shareholders something to watch if you own disney down 1.7%. let's talk about that big deal comcast, fox, disney coming back in joining us on set is the corporate finance and deals editor with the f.t. aroush, great to see you in person do you think we're going to see a bidding war for fox or does our parent company, comcast,

have it in the bag >> definitely not done yet this looks like there's some new plays to go. this week will be pivotal. >> part of the problem is under disney's offers, rupert mourdock and his family could have a multi-billion dollar tax bill. if you get a tax bill for $10 billion. they could have a $4 billion. >> under comcast >> under disney. >> comcast but that's covered by cash the comcast would cover that bill in a sense. ey, there could be a non-covered tax obligation, could there not? >> i need to check on that this question of tax is an important one. >> the comcast bid covers that obligation basically the comcast would cover that bill. let's get out of that. neither of us are tax attorneys.

do you see disney stepping back up do you think our company comcast would leap frog that how valuable are the assets they're going for? >> it's the rise of netflix and these competitors. both comcast and disney feel like it's very important to bolster their offerings to consumers. the way you do that if you're comcast is you add more valuable content to your pipes and if you're disney you own so much content that the consumer has to use your offering. these are critical where netflix is a $350 billion market cap company. >> has that changed everything >> that's changed everything. >> arosh, i apologize for getting in the tax weeds we'll get you on trld wide exchange in the future thank you very much. becky quick joining us now with a preview of what's coming up on "squawk box. bec becky, what's coming up.

>> all i have to tell you is great minds think alike. we have a guest coming up on "squawk box" who will delve into jim stewart from "the new york times" will be joining us. he's the columnist covering deals, acquisitions, media, including writing books about disney, the house of mouse we'll talk to him about what he thinks about the downgrade pivotal of disney shares. also, we have a very interesting guy, mark beginsberg w -- ginsburg a counter extreme project. they've been working for a long time we've talked to him in the past about how concerned he is about the massive amounts of things that go online how to get involved with isis and build pipe bombs they've come up with a new software program that goes and finds any kind of cyber terrorism postings and removes them automatically they are being fought by big tech, google, alphabet, all of

them pushing back saying don't put this software on we will do a better job of monitoring ourselves his point is, no, they will not. this is the way to go. we'll talk about the bipartisan support he's getting. also we have sergio armadi and kevin hassett from the white house, the council of economic advisors, talking about the economy and what he sees all coming up in a little bit, brian. >> we'll look forward to that. becky, sounds like a great show. >> enjoy london. >> up next, how you can make money -- thank you we'll do how you can make money by watching what the kid do. plus, a stock stat that may get us run out of london it's your mornin stick around

we had long deployments in iraq. i'm really grateful that usaa was able to take care of my family while i was overseas serving. it was my very first car accident. we were hit from behind. i called usaa and the first thing they asked was 'are you ok?' they always thank you for your service, which is nice because as a spouse you serve too. we're the hayles and we're usaa members for life. see how much you could save with usaa by bundling your auto and home insurance. get a quote today. theseare heading back home.y oil thanks to dawn, rescue workers only trust dawn, because it's tough on grease yet gentle. i am home, i am home, i am home

to consumers shopping and spending is a big deal on both sides of the atlantic. data out last week shows that both american and british retail

sales rose more than expected in may. you don't care about that. what you care about is how to make money off of that joining us now on set, stacy whittlet is a cnbc contributor nice to have you on set, stacy thank you. >> good to see you in london >> it is great to be here. let's talk about how to make money by what the kids do. what i mean by that, 14-year-olds that are out there, the trends that they do tend to be the ones that can make us money. how do we both profit by that? >> this is when you profit by having a teenager. >> the only time. >> the only time it costs you money the rest of it year over year in london, the trends start here. what's cool? what are the kids wearing? vans. >> vfc. >> so that has been a trend in europe that's been going on for nine months plus that tends to happen later in the state. you look at champion a brand like champion when i was a kid, we wore that. it's back. >> champion like the old sweatshirts? >> the old sweatshirts.

>> kind of the lower priced hockey type? >> like the stuff you saw in models 15 years ago is cool again. >> champion is owned by hanes brands. >> hbi there's another one. you take a look at the old dra di traditional brands and they're going out. the old retrobrands are back and that's how you can make money. i would also say that while we have been historically pretty negative on nike it iskiller in the market. it looks like cay. >> killer, not being killed? >> killer. not being killed. >> you were taking -- you punch pullman in the face. you were making fun of some pink shoes they had is nike now -- because nike was struggling is niko now back in the game have they gotten smarter >> nike set us back up for a second half story.

it was like let's see, let's see. the product is now hitting and it looks so differentiated by the way, adidas, which was cool. >> or adidas. >> adidas in the u.s. >> as we call it. >> adidas, that was the original retroplay. >> stan smiths. >> yes they've fallen out of coolness they've fallen back. now you have to look at who's back i would say it's nike. >> really? is it fair to say the nike of today is not the same nike of even 12 or 24 months ago >> very fair. >> because that seems quick that they would be able to flip it that fast, stacy. >> it is the last coolness is when fly net was the cool color. >> that's way back come on. >> now you look at what they're coming back with the air max, vapor max and it's color all about newness and color. if you look at the shelves, wow,

i want that on my feet. >> nike is back, vfc for the vans champion sweatshirts. >> we're cool again technically. >> i love it thank you very much. stacy. we'll see you soon. we've got another day here in london and take a look at what tomorrow's worldwide exchange is going to bring you all-star london lineup we have billionaire investor jim melon. some call him the warren buffet of england hear from former goldman sachs chairman jim o'neill as well as chris mawalalla. we have a huge guest lineup. let's wrap it up with your monday morning rbi since we are across the atlantic we wanted to ask, have you been able to make more money investing here in the u.k. over the long term or in the states i'm sorry, beloved u.k. viewers, it's not even close. the return on the ftse 100 since january 1984 when its moderation came to be is 641%

pretty good, but in the dow same time, 1900%. we didn't make the world cup but it's u.s. 1, england zero. thanks for watching. "squawk box" starts right now. ♪ that's confident. but it's not kayak confident. kayak searches hundreds of travel and airline sites to find the best flight for me. so i'm more than confident. how's your family? kayak. search one and done.

good morning dow 25,000 might be at risk today on the down side as u.s. equity futures are pointing to triple digit loss on wall street. we will see. the big bet on china google investing $550 million in jd.com plus, is there more trouble brewing for tesla. an actress posting video of her husband's model s bursting into flames it's monday, june 18th, 2018 and "squawk box" begins right now.

good morning, everybody. welcome to "squawk cnb i'm becky quick along with joe kernen and andrew ross sorkin. the u.s. equity futures as joe mentioned we are looking at red arrows dow futures down by 130 points if we were to open the dow would open below 25,000. that was a decline of 0.9% on the week the s&p up and the nasdaq up pretty sharply at least relative to the other indexes it was up by 1.3%. you can see this morning the nasdaq looks like it would open down by 40 points and s&p by 12. the dow is on track for the biggest monthl