welcome to "street signs." these are your headlines this morning from london. >> european equities regained some of the week's losses after u.s. stocks closed sharply lower, but peter navarro says markets are misinterpreted president trump's trade talk >> certainly we will defend ours against any threats to our technology, but as a practical matter, we have a great relationship with much of the rest of the world. so that is not something that the market should be worried about. chinese stocks into bear

market territory as shanghai composite closes half a percent lower bringing total losses since january to more than 20% and telefonica shares rise after they score the right to televise spanish football matches. and uber a waits its fate in a london courtroom with a decision about its operating license in the capital due later today. we saw an extremely weak trading session yesterday. first time in a while, we had the nasdaq getting hit down to the tune of about 2% and dow and s&p respectively down more than 1&. they recovered some of the

losses as peter in a vnavarro 's comments helped boost the session. but this is the worst since the selloff in february. so sharp losses seen in u.s. equities but overnight the mood has been a little better after navarro's comme comments and this morning we're seeing the broader euro 600 is trading up about 2.2%. again, european and indices individually also were trading down as low as 2% or so in yesterday's trading. but today it looks as though the mood is a bit more positive. you can see the indices are tipping into the green nothing major. still really hasn't recuperated the losses from yesterday's session. xetra dax in the past week alone is off 5 percentage points so yes, we've recovered a little bit this morning up 40 points, but still 5% down on the year.

so really struggling there relative to ftse, we talk about selloff in italian assets, but german equities are the least performing indices of the year let's take a look at sectors it is no surprise that the sectors that got hit the most yesterday are the ones that are recovering this morning. basic resources up 1%. also technology up half a percentage point bucking some of the trend we saw. and as i mentioned at the beginning of this, nasdaq was down 2% in u.s. equities trading overnight. and what we're seeing this morning is that he can it knowledge has actually rebounded some what. nancy can give us some color in the asian trading session.

>> you talk brokenabout improvi risk, we did see some of that in the late afternoon session, but it wasn't quite enough to turn around the greater china markets. we did see the nikkei 225 turn pots in the close just barely, but there was an improvement from the rolows of the session. but as mentioned, the greater china markets in focus here given all the attention around the trade tit for tat, somewhat of a mixed message overnight on investments coming from china. on so the han so the shanghai cs into bear market territory off more than 20% since the january two year highs so on there you have it. we've been keeping an eye on the shares today a guest earlier said that

looking at these valuations, there are some opportunities even perhaps in the tech sector that has been so vulnerable to these trade tensions other strategists have commented about concerns over debt defaults to keep an eye on too so yes r, somewhat of an improvement, but still bear market territory for the shanghai composite >> and the u.s. selloff yesterday ended a rather contradictory day in washington. see if you can follow this as i try to explain it. it began with the report that chinese firms would face new restrictions on investments in u.s. tech companies. and then treasury secretary steve mnuchin took to twitter to say it would apply to all countries, quote, trying to steal u.s. technology. that tweet sent the market to its lowest part of the day and then the trade adviser sought to calm markets later in the day in which he said market

moves had been an overreaction he explained the u.s. treasury had carried out an examination of potentially potentially disc practices, but there were no plans to impose restrictions on countries interfering in any way with the united states >> what we have done with the 301 investigation is to investigate what china was doing with our particular country with respect to technology. and all the president has done is to direct the secretary treasury to come back with an assessment of that due at the end of this month. and that assessment does not include any other countries. with respect to other countries, certainly we will defend ourselves against any threats to our technology, but as a practical matter, we have a great relationship with the rest of the world so not something that the market should be worried about. >> and then sarah sanders later

seemed to back up secretary mnuchin's tweeted threat >> as the second said, a statement would go out in a targets all countries that are trying to steal our technology we'll keep you posted. >> so that is all very clear let's see how u.s. futures are looking to open up in a few hours time and the picture is slightly more positive, but not a lot if i'm honest it seems like no one is really understanding how to interpret some of the messages that are coming out of various members of the white house. and of course markets are beginning to react yesterday was the worst session for the dow since we have seen since the big vix selloff back in february. so markets are definitely beginning to bite a little bit we have a strategist from commerce bank with us. max, i noticed something from our team in new york, they put out some stats saying more than half of the s&p names are in correction levels, so that is

10% below their 52 week high, 20% are in the bear market or worse. so the picture isn't looking very healthy if you dig beneath the surface. and what was interesting, we saw consumer staples and utilities the only positive sectors which is telling me perhaps that people are beginning to switch away fromsick cyclicals into defenses is that right? >> you've asked me to try to follow it and i certainly can't follow this. hopefully i'm not the only one but if we take a step back, actually we do have only two options. we can either engage in looking at twitter and follow the day to day or even hour to hour moves and try to play the moves. frankly i think it is impossible and if we take a step back and say what does this actually mean, what has driven the selloff, where are we in the correction move, what is actually happening, i think what is happening is until a couple

weeks ago, the market and trades were on as sort of a tail risk people say yes, we know there are concerns about italy, we know there are other concerns that really we have to take from a strate perspective as tail risks. and it is moving more into a base case scenario i think that is what is driving it not the hour to hour by the tweets i don't think that iwhere the market is heading. but i think it is moving slow throw a base case scenario and you noted it, how i think you you who you play it is going out of cyclicals and go into defenses not only because of trade war concerns, but also because of what you have seen since the start of the year, that global momentum is getting loss and you had cyclicals outperforming. so you see much more rotation into defenses now. >> so if you look at implied

volatility levels, you stay a step back and you look at those levels right now, do you think that investors are no longer complacent about things like trade war? do you think they are in longer concerned -- they are no longer complacent about stability >> even though it is not a lot of help, i'd say probably not complacent anymore, but i don't think they are concerned enough yet to go into equities. so sort of in between. when you look at sentiment, we've moved away from bullish levels, but we're not quite at these levels where it is utterly bearish where you say this is screaming to get in to equities right now. so even if you have a technically induced a little bit of a bounce, i would still say we have a few difficult weeks ahead of us i think. >> and i want to come back to what we were saying about where the growth is in the world and actually to counter that, a lot of people are saying that the reports say that the only sweet spot right now in the

world is the united states we have growth possibly 4% you have feds who are clearly intent on hiking a couple more times because the economy is looking so strong. you finally have wage pressures. so actually the picture for the u.s. is pretty healthy right now. and the risk is that you out of panic or fear switched out of cyclicals in to defenses and then you end up missing out on the subsequent rally that could happen the second half of the year once some of these trade concerns if this does happen gets put aside >> i think there is really too much concern about -- or too much focus on the trade war concerns because if you think about it, the first half of the year probably was pretty spectacular for the u.s. because you what you have seen, there was basically a double push from the very, very strong depreciation of the dollar, year over year depreciation particularly in q1 and the push from tax reform actually particularly in q4 this will be the opposite case. we'll see that already

happening. so then the delta won't be that supportive >> so the other thing that i look at is flows and i thought last week was very interesting as well. because the only market in the world that has influence going into it is u.s. stock markets. you had huge outflows out of equity markets as well and so investors looking at all of the different markets that they could deploy cash into are only comfortable pouring money into the u.s >> i think that is one of the main reasons why you have the dollar appreciating and where you've had the really big push i still think this can continue, but bear in mind again, you have the market, you have the forwards, futures pricing about 3 1/2 hikes. even though we might see even 4% look, if i think about again if we take a step back and i think is it going to be three hikes or five is this if i thi five if i think about the skew, what could possibly go wrong?

five probably not if you think like you said when you think when the flow picture, emerging markets feels like doom and gloom right now. if we have to price it another hike in the second half of the year, it will be pretty tough. so probably the could you you is more towards three and again if you think about year over year, and you look at the year over year fact in oil prices and spilling into lower break evens, longer makes more sense. ten year treasury towards 3.5% i'd refrain from that. a little bit of loss of momentum also in the u.s., then being in cyclical stocks, it is not really the right call i think. i'd rather stick to the defenses >> all right thanks very much for staying with us. if you have any views on trade yourself you'd like to share,

get in touch on twitter. you can also tweet us directly and coming up on the show, moody's warns of a widespread negative impact from president trump's potential auto tariffs more on that when we come back

welcome back to the show some nonworld cup football news for you. telefonica has captured the television rights for spain's league and will pay 980 million euros per season for the next three years. it could help telefonica build up its paid tv subscriber rights media pro got the international rights and elsewhere, eutelsat does not intends to make a bid for inmarsat the press release was only issued to comply with regulator

concerns warm weather has hurt sales at carpetrht it recently raised 65 million pounds through an equity issue and the firm fell to a full year loss they plan to close 81 shops by the end of september and moody's says president trump's auto tear rivers will have a widespread negative impact on the global manufacturing sector the firm says higher tariffs will disrupt the globe at supply chain and that a proposed 25% levy on imported vehicles and parts will be bad for nearly every egg ssegment of the auto industry both gm and ford import large numbers of their u.s. sold vehicles from mexico and canada. i had a look at that report. gm 30% of its unit sales in the u.s. come from vehicles built in canada or mexico for ford, that number is 20% and that is particularly true with the high margin trucks and

suvs in other news, phillip hammond spoke to our colleagues where he insisted the uk would remain an advocate for free trade. >> we live in uncertain times because the old certainty for many decades has been that the united states was completely wedded to open markets and free trade. and nows united states is questioning the value, the fairness of some of our arrangements i very much hope that we can avoid a full scale trade war that would be a disaster for everyone, not least for the united states. but what i can say is this, whatever happens, the uk will remain an outspoken proponent of open markets and free trade, low tariff barriers and low

nontariff barriers and i would urge india also to think when opening its markets further to encourage trade and stimulate competition. >> no one believes that a trade were is a good thing >> the dollar has been on an upward trend, but the last 24 hours or so, has come off a little bit what is interesting typically when there is such a big riskoff move, you see a bid for safe havens so dollar-yen a tad stronger today. nothing major. and the dollar, but no major

moves as far as the crosses are concerned. let's turn our attention to energy let's not forget that we had the major opec meeting last week where there was a decision taken to increase output of up to around a million barrels a day and since then, we've seen a bit of fluctuation in the oil price. initially the reaction was quite bear require, but we're he s bearish. but we're seeing a rebound plenty is trading about 7% stronger on the day. mar max, let's taulk about the energy complex a lot of noise going into the opec meeting it seems like they reached some form of an agreement the expectation is that there will be an increase in production to the tune of about a million barrels a day. what do you think that does to the price of oil from here

>> generally i think we're still quite bearish on oil prices. i think we canasily go toward 60 in wti. because when you look at what has been happening over the last few weeks and months, there has been solely a focus on the supply side. again when we talk about opec, obviously it depends on how much the interest will be and then we can make a bearish or you bullish case out of this but when you look at the demand side, also the side of speculati speculation, that is more untouched. you can see the increase of the oil price is due to hopes for higher demand, hopes for higher global growth. and it is also due to record high speculation you look at some of the speculative investor, they have run until recently long positions in wti and brent again, that comes off right now.

and i think the big risk is that when curves flatten, that sort of oil trade that a lot of speculative investors were running, is ththat gets lost and those investors get out. and when you have a continuation of a little bit of worse economic data in the coming weeks, hopes for higher demand will be disappointed and then obviously the reaction of world prices will be a little lower. >> and just broadening this out into currencies as well, clearly your view is that the price of wti will trend lower so that should benefit the likes of turkey, some oil importing companies. so i'm curious how you think that will manifest itself there. >> i think the turkish lira is a different case because it is more of a picture after the

election what is will happen to the independence of the central bank but let's say that could be the case for the coming weeks and months, i'd be spectacle about the commodity currencies i think there is still room to go i think we're still not cheap enough both in the currency space and also the equity and bond space to actually go into em right now i think we still need to have a decent selloff that is what we so far haven't seen we've seen pockets of e.m. selling really big time, but other pockets, other current cit, relatively benign. we neted a general washout i'd say that probably will come at some point in the second half of the year when we reach the peak in treasuries and the dollar as well >> that election in turkey still fresh in the mind of a lot of

currency traders and if you look into a crystal ball, when does the lira become a buying opportunity >> the buying opportunity for the lira is not because of the lira, it is only because of the dollar if you have an environment where people are saying we've overdone the dollar story, yields won't go anywhere on the year end and the short he saend will move hir and let's go long e.m. then you can buy the lira. i would however stress that is a tack cal b tactical buying tur ining oppor. >> and i want to ask you about came m commodities. do you think the threats to the business models are real at the moment >> i don't think so. from a tactical perspective, we are still quite bullish on energy stocks, so we still see a buy there.

again, i think that will be different second half of the year because the year over year effects in energy prices will be much more favorable. when you look at the first half of the year and the earnings revisions for some fof the energ secretary, sector, they have been spectacular. that is due to the change of energy prices. as it becomes unfavorable, i think second half of the year, not that it will threaten the business model, but i think that sector probably won't be a buy anymore. >> and we've seen some lagging because of the trade concerns. very quickly, china recently cut the reserve requirement by 50 basis points are you expecting more to come out of china in the latter half of this year >> they have room to cut, yes, but again if we take a step

back, what you do see and what you have seen over the last 12 months is fiscal conditions are tightening they have not grown as much as 2015 and 2016. and money growth is tightening there could be further trouble ahead, yes >> max, thanks so much for joining us uk grosses have lost market share to audi and little over the past few months. more analysis on that after the break.

welcome back to "street signs. these are your headlines this morning. >> european equities regained some of the week's losses after u.s. stocks closed sharply lower, but peter navarro says markets are misinterpreting president trump's trade talk >> certainly we will defend ourselves against threats to our technology, but as a practical matter, we have great relationship with much of the rest of the world. so that is not something the market should be worried about >> chinese stocks enter bear

market territory total losses since january to more than 20%. >> ride hailing giant uber awaits its fate in a london courtroom with the decision about its operating license in the british capital due later today. and sainz buries slips while rivals make begins. there was a weak day across the board yesterday. weakest since the big february selloff. and today looks slightly more positive but u.s. futures are pointing to a slightly stronger open dow seen opening about 50 points higher, s&p around 4 nothing major, but at least

sentiment is buoyed by some of the comments from mr. navarro yesterday, pairing down concerns of an imminent retaliation from china. but the picture a little bit more positive. dow closed below the 200 moving day average for the first time since june 2016 in yesterday's session. so all eyes will be on the direction from here. let's switch and take a look at foreign exchange here again the theme is one of today is dollar weakness and that bucks the trend that we saw in the last couple sessions where the dollar of course has been gaining ground. what we're seeing is there are little moves, but one of the biggest movers today has been that of euro-dollar coming off a tad to the tune ever when a quarter of a percentage point. that is the picture.of when a quarter of a percentage point. that is the picture.

you can see that momentum has picked up a little bit foot is i mib trading almost 200 points higher. xetra dax, all eyes on that as well already up hoalf a percentage point, but a tricky week for european markets >> and here in the uk, supermarket stocks are rather mixed after new numbers from kantar show major u.s. firms have lost to foreign rivals. sales at sainsbury's fell while all its british rivals actually increased. we're joined now by a senior analyst of food retail aldi, little, they have changed the figurative landscape for retail in the uk, but the physical landscape one of the drivers for growth has been more floor space.

does that have to stop at some point point? >> yes, you're right they are adding new space. and the interesting thing is we can only do that as long as you are making returns on capital. the profitability of the discount has been rapidly declining for more than 5% a few years ago to probably 2% today and you can see the first signs. if you look at the property pipelines, store openings this year are about a third down. and the earliest sign of the property pipeline down about 70%. so the discounters have changed the landscape, but it feels like the pressure on the profits, super markets have done their work to sort of fend off and it looks like they are settling for a new market share, new reality. but the end looks very good. they slow rate for about ten years. >> that is interesting

of course they have balangalvana lot of deal making in the industry and i see that you have done a little bit of work on this because if this deal does go ahead, you have tesco with 30% market share between the two of them, they have about 60% of the uk retail grocer markets >> that's correct. and duopolies are by far the most attractive retail markets that means each of the retailers can negotiate better with the big suppliers. they are also less likely to go down for the tit for tat pricing. it is easier for them to keep disciplined. doesn't mean they are doing anything illegally, but all the different trading plans and different -- >> we saw tesco drop the pledge to price match yesterday >> rationality is very rapidly returning. they were supposed to be dead a few years ago.

and they are all growing and rebuilding profits, all paying back down debt uk is starting to look like the boring bit storm starting in the u.s., france is falling apart. but uk is back to normality almt >> so you can turn around to shareholders and say this will be good news based on our reseah so what did you say to consumer advocates looking at this deal >> right now it is weak versus suppliers. suppliers are making huge returns. so it is a rebalancing so that is a good thing. there is a the lo os is a lot oy so it is a rebalancing in terms of the consumer landscape, there is still so much competition out there

we talked with the discounters they will always keep the pricing lid on how far prices can go in the uk >> i want to pick up on something you you just sau you . you said the retail sector is almost becoming boring versus france and the u.s why is that? what is it about the uk specifically that is differentiating itself from fanfans europe >> if you look globally, the biggest three threats, one is consumers want healthier and fresher food second one, consumers want more and more good value for money private label. good stuff that is good quality at reasonable prices. and consumers want e-commerce. the uk is ahead on all three of them so the big pain in the transition, it is all there. we have one of the bigger discounts sectors.

so that is one element second thing is the mismanagement of the uk, the financial crisis led to the discounters. but even that handling of mismarkets is out of the global industry >> and you talk about the painful pressures that the countries have to face and i wonder, does that mean that you expect to see more partnerships, more deals, or potentially more of these partnerships we've seen likely sensing, consulting with the technology >> if you think about the three trends, fresh food, e-commerce and private label, not only with amazon in the short of shadows, the need for speed is huge and i think actually the only straightforward solution any have is mergers, bigger scale. why? scale was always important for buying scale

second, the bigger you are, the more efficient you are in distribution so again therefore scale better. so scale is the only solution. you will see accelerated deal making to really speed up the transition so it is a way of transitioning way faster speed and scale. >> and to explain to our viewers, we're watching live pictures here of the pope and emmanuel macron meeting. clearly mr. macron enjoying himself there in rome. and the news media being kicked out of what will become a private meeting. i want to follow up -- >> definitely not talking about retail >> no, i suspect there is a threat of amazon is most people, but perhaps not the pope let's talk about pricing out side the discounterdiscounters. that forces them to rethink the pricing models how key is that to the changes in market share, what role are

we seeing in inflationary pleasure pressures as well? >> when discounters were small, retailers could ignore the top 300, 400 items out of the total range. that is really what matters fo the core basic food. and tesco had to invent different ranges farm brands is a copy of the little ranges. and the same quality or a touch higher tesco would claim, same price, same merchandising. so retailers had to realize the economic reality that there is a new price and new quality set by the discounters. if you don't have that, you can't really play. good news is they have to start making the money and the higher quality products, the services of delivery. so that new reality will force

gradual costs to afford the lower price points but that is largely done i would argue to the weaker market share right now. >> all right thank you very much for joining us elsewhere in the uk, there is a 16 billion pound about expansion after years of delays over the construction of a third runway cbi says it favored the plan because it will improve britain's trading relationships. but ieg the owner of british airways criticized heathrow's expansion and warned that it won't accept higher prices for consumers and airlines and they promise legal action to stop the construction of the new runway but stopped short of

declaring that he would lie in front of a bulldozer and we have flashes on this topic. announcement come out saying that heathrow within the next 12 months will sign contracts with british businesses creating 900 new jobs and 200 new apprenticeships. they will now prepare an application for developing consent which will see construction of the third runway begin in 2021. >> not wasting anytime, are they all right. some koorncorporate news bmw is not planning to move production out of the uk over brexit the german firm is committed to its factories, workforce and employees in britain the comments contradicts an interview in which bmw customs manager said the carmaker could force to close production plants after brexit bmw produces around 60% at the

factory in oxford and currently employs 6300 workers across its three plants in the uk elsewhere today uber will find out the fate of its london license as the uk court looks set to make its ruling on its operations and it is a big day for uber how likely are they to succeed at repealing the ban and have they implemented any changes since the discussion came up i believe it was last september? >> reporter: yesterday on the first day of the court case, uber was very accepting of the tfl decision from september in which they said uber was not fit and proper to operate, they accused uber of having a lack of corporate responsibility and raised concerns around public safety and security of its passengers as well to address that, uber has come out with a number of changes including reporting serious incidents directly to the police rather than leaving that with the drivers and riders

also they put in maximum hour policy, and opened up a 24/7 phone line to give support and essentially the message from uber yesterday wase' changed. we're a new company. we've listened to the regulators we're working with the regulators in order to address some of the concerns that tfl brought up last year and i think that was one of the big things that put uber in the front foot here. of course the final decision will rest with the judge in this case and tfl's lawyers will take to the floor today to present their argument around why they suspended uber's licenses. a few outcomes here of course. the judge could rule uber should not get a license. second one is uber gets a shorter license than it initially applied for. it wanted a five year license, but said that it would be happy to take a shorter license perhaps in the refugee often gi8 months to show that it is a

sustainable company now in the kap capital. and of course the judge could grant that today we're expecting toed to hear so sort of a decision but alone done is a critical european market. they have around 45,000 drivers. so it is very crucial particularly as the ceo took over last year from the founder looking to clean up the company and also pledged to take the company public in 2019 so these are crucial rulings if they don't get a ruling in their favor, other cities could start to think twice about the way it regulates uber as well which could cause problems in other markets. so it is a very important day for this plus $60 billion company. >> thanks to explaining the implications there we're expecting that decision later on today last month our colleague spoke

to the head of middle eastern africa about the ban in london and here's what he had to say. >> london is a very important and strategic market for us. i think the situation for us in london is a good example of what has been happening across the company, ie a deep look at our sales, a deep look at how we can actually do much better and be a good partner, be a more responsible company. and move from a growth approach to a responsible growth approach we have been working over the last six to nine months on actually changing a lot of the things that we have in the uk, the governance, bringing in externals, changing our approach to safety, changing how we collaborate with the police. and the next step is to be in court in june. so very quickly from now and we're hoping that that will be the perfect setting for us to explain how we've changed as a

company and why we actually deserve a license to operate in london >> london can't exactly say no to you brexit is right around the corner if they said no to uber, surely that would send a very negative message about technology and how welcome it is in london. >> i hope they don't say no. we will see. we'll see what happens what i can tell you is that i'm very proud of all the changes that we have driven from the inside of the company to actually make uber work for londoners. >> so big day for uber and also for myself given my using pattern. you can follow us on twitter at street sin s krchlt ngns cnbc coming up, a close call for some of the big hitters at the world cup. we'll have highlights from yesterday's dramatic matches after the break.

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spain and portugal are through to the knockout stages at the wourld crld cup, but not without controversy. >> it turned into a bit of a vast last night. >> he is here all week >> i've been working on that one. in both matches, controversial v.a.r. decisions were n. boin b. but in the portugal game, there was flurry of them in the second but only after that stunning effort this 34-year-old is a veteran, and he scored an important goal and gave them the lead but then the real drama started. v.a.r. decision made the penalty

stood. ronaldo didn't add to his four goals already. and could have been a red card for this as well it was only a yellow maybe because it was ronaldo that that happened and this apparently was a deliberate hand ball iran needed to win to get through. they got late hope with this penalty, but as you can see, that is not the celebrations that is distraught iranians going out in the group stage yet again. but it was v.a.r. that dominated and that is even before we get to the spain match where a v.a.r. goal enabled them to top the group. >> so why talk about the vases then >> it changed the game, but it was supposed to eliminate controversy. it was supposed to make it clear and easy for a referee to make a decision because he has this help from a team back in moscow if full referee kit.

but as long as there is a human element, and we hope there is at the end of all this, in football there is going to be controversy. it is just now we have a name for it we could all sit around here and have he very different opinions and look at it from every angle, but pundits are still debating these things but now they are just debating it with a name >> isn't it changing the game for the worst because it is in-vein incentivizing placers to behave in a certain way >> it is supposed to eliminate the idea that wrong decisions are made when it is clear and obvious. >> so is the point you're making, i've seen a lot more push back on the referee decisions. >> they should have three challenges per team which is what they do in tennis you get three challenges per set. so you could do three per game and that is it

>> that is an option that has been discussed now, the fact that it took the referee last night such a long timen every occasion means that it is not clear and obvious and that is the idea behind f a fifa's agenda. they don't want clear and obvious decisions to interfere with the game. but for as long as football is about theater and drama, that will continue to be the case >> and we have the big argentina match today. so is there is a possibility, is there hope that arrest again knee will make it to the next round? >> i know you have a foot in the argentina camp yes, there is a chance but it is a slim chance. they have to rely on other results going their way. they have to hope that iceland don't beat croatia a they have to do thei argentina, there is talks of

in-fighting within the camp. war of words between the players and the coach. and the stress etched on lionel messi's face before the last game as well so the pressure is getting to them whether messi who turned 31 on sunday can turn up, but at the moment croatia through nigeria, iceland and argentina can still qualify. both matches happening tonight assisimultaneously simultaneously >> an evening to watch >> absolutely. something else to watch, the u.s. federal trade commission issues a warning to watch out for world cup scams. head to our website for more, cn cnbc.com harley-davidson shares fell almost 6% after analysts slashed profit forecasts amid worries that it would struggle to adapt to new eu tariffs. harley announced that it would move production for european customers outside the u.s. in an

attempt to avoid the levies. that decision prompted criticism from president trump who accused the company of waving a white flag but again this is another representation of how these trade war discussions are beginning to impact not just indices, but also individual companies as well. you saw harley stocks down as much as 6% yesterday but let's take a quick look at u.s. futures before we led out it looks as though things will be a bit more positive in tone we see dow opening up about 30 points higher. s&p is flat. but a lot could change >> and that is it for us here. "worldwide exchange" is next

it is 5:00 a.m and here is your five at 5:00. u.s. futures looking to rebound after yesterday's massive selloff. investors trying to digest mixed messages from the u.s. over its trade policy tim cook sounding off on data privacy and immigration. we'll bring you his comments and a uk court could rule early as today as the fate of ubner l ubner grewalgreen's officiall