21st century fox upping the bid for sky. president trump blasting our allies as he meets nato members in brussels. pfizer rolling back planned drug price hikes after being called out by the president and a true call where until you hear where one energy executive says where oil

is headed. it's wednesday, july 11th, 2018. good morning, welcome to "worldwide exchange. i'm courtney ragan brian sullivan is off today. it could be a tough day for your money. futures down pretty big after the trump administration upped the ante they indicated lower by more than 187 points at this hour the white house slapping plans on 10% of tariffs on chinese goods. the announcement comes from president trump meeting with nato leaders in belgium. eamon javers is live good morning, eamon. >> reporter: yeah, good morning, guys it's been very fiery here for the beginning of the nato sum 34i9 you're talking about the new

chinese tariffs. take a look. 10% tariffs on $200 billion worth of chinese goods and that means it's going to undergo a two-month review on august 20th to the 23rd. the united states here striking directly at that aggressive economic expansion initiative by the chinese. we'll see what the chinese reaction is here that's bound to have some impact on the markets as you've been talking about this morning meanwhile, here in brussels the president of the united states coming out very aggressively with some harsh words for germany in its opening salvo at nato here's what the president said. >> if you look at it, germany is a captive of russia because they supply it. they got rid of their call, they got rid of their nuclear

getting so much of the oil and gas from russia. i think it's something they have to look at i think it's very inappropriate. >> the president very critical of germany coming out swinging no reaction publicly from the german side to the comments but you can imagine they will provoke some angst here. his stated goal is to get the nato allies spending more on their spending not all countries have hit that guideline. the president wants them to step it up but seeming very willing to criticize some key u.s. allows to disrupt it >> for that guys, you can expect this throughout the day. he has a long day of meetings and ceremonies. >> there was a hope that the trade discussion would take a breather because of u.s.

president trump in brussels. what do you think inspire the administration to unveil these $200 billion of tariffs? is it the ongoing concerns over intellectual property theft or something else. >> i think it's the concerns about the international coffee they want the chinese to bring a kpliet and total stop to it's this deal back and forth taking on its own momentum you get a situation where if the chinese responds, the united states will feel it needs to respond. when the united states responds, the chinese need to step it up both sides say enough is enough. maybe they have enough in mind that is a stopping point in their mind we'll wait and see for that. i think if you look at those comments from the president here, guys, against germany, the

political significance is that the president of the united states is criticizing germany for the very thing that the nato allies have criticized him for, being too close to russia. the president signaling to the nato allies, you know what, if you krit size me, i know where your weak points are and i'm going to come back and criticize you. they have been at pains to suggest that the message is of strength and unity we're not seeing a whole lot of unity in the opening hours. >> no kidding. i was thinking about how many were wondering if trump would come guns blazing as he has been on twitter it looks like he has does anybody think this will work >> it's not clear what the president wants with germany what he's criticizing them about

is doing a deal with them for a pipeline that's inappropriate, the germans are enriching the russians and then asking the united states to defend germany against russia the perhaps wants an unwinding of that gas deal on the issue of defense spending, the president feels that his words have already had some effect. the defense spending in europe is increasing. the nato allies agree somewhat >> does the prime minister, justin trudeau of canada reaching brussels making his way to the summit. any talk of whether nafta will join the discussion in brussels? eamon, there's always so much on

the table and now the canadian tariffs. the canadian prime minister there can add to the discussion. >> yeah, absolutely. we haven't seen nato on any of the agendas here the g-7 is looming over this that signaled that the president is willing to go to the sessions with american allies, rhetorically anyway and punch them in the nose, here's what the united states needs, i'm out of here. that was viewed widely as a failure. they don't want to repeat that here today nonetheless, the president signaling he's going to deliver a very stern message and also signaling that he is willing to conflate defense spending and economic trade deals the presidents saying we are losing money paying for the german and european defense and we are losing money on trade

that's bad for american consumers. the president very much sees himself sticking up for american consumers and taxpayers. >> eamon javers in brussels. let's see how the stocks around the world are reacting. the chinese stock market closing down as well as the hong kong stock market important to point out that the u.s. unveiling those $200 billion of tariffs on chinese goods. china is responding saying it has no choice but to take necessary counts and measures. it hasn't really elaborated. it's down by .6 of a percent the dax is closing lower by 1% europe, stocks slightly in the red as well. germany, france, u.k., italy and spain down 1 to 1.5% let's dive further into the market reaction with art hogan art, good morning to you i guess we can now call it a trade war.

i mean, $200 billion in tariffs. this really does up the ante. >> it certainly does unfortunately we've just gone through a period of time coming into the official enactment of $35 billion was met in the market with actually a pretty positive target. it was up thursday coming into yesterday's close. i'd like to refer to it as stockholm syndrome clearly the market is held captive by trade and trade policy we get to a point and say if this is as bad as it's going to get, perhaps we're okay. this takes us back it's unfortunate we could focus on some positive earnings coming in for the second quarter here. i think that's going to get way layed here to how bad this gets

and how economic this can be that's the important part. it's not as if they look at it and say there's an end game here, eamon javers says they're offering it. you don't know where that is corporations will delay spending decisions while we're in the middle of the negotiation process. that's where things get very tricky. >> that's interesting, art for the last couple of days we've seen the market jump higher four days in a row. earnings were going to be out. now you can see the potential could be changing with the $200 billion of tariffs that mr. trump was talking about instituting against china? >> courtney, that's a good point. this market has a tendency to want to be higher than this. it got to the point where we said, okay, now we can move further down the line of what trade looks like it's who we are and without escalation, the market has

strong fundamentals. the bnfib came in very strong yesterday and looked at 250% earnings for the s&p 500 in the percent range, third quarter double digit earnings growth a lot of positive things we can focus on this is a market that's going to ship back to the focus on trade. how much gets delayed. >> quick look at the bond market, art. this talk about the inverted yield curve flashing signs of a recession. is that too premature of a sign for investors to worry about >> yeah, well, nine out of the last nine recessions were proceeded by an inverted yield curve. obviously it has a very good

batting average in terms of a predictor. it probably causes a recession the tricky part of that, if you look at the last three examples, 20 months later for the recession to start and in that time frame the s&p was up some 30% on average all three times it's not immediate, but it's certainly something we have to keep an eye on unfortunately, it's hard to know that's modestly different. we've had ten years of fed intervention in the bond market. it's hard to know if this has a different dynamic to it. in a 28 point basis points, too close for comfort. we'll keep an eye on that. >> the perspective, art hogan. thank you. we have some breaking deal news as if we didn't have enough to talk about here this morning. 21st century fox upping its bid for british sky up to 18.50 a

share. that tops cnbc's comcast bid offer of $16.60. let's bring in rash masudi here we go it continues give us the latest what's going on here in the latest bid for sky >> huge news here in brittain. a 14 pound share bid trumping a 12.50 pound bid. they want to buy sky and it is a clear sign that disney is looking to spend around $100 billion in total to take on netflix and basically become one of the traditional media companies that takes a foothold

in the new digital era and competing against netflix. >> the next question is does comcast come back with a competing bid? what's everyone say? what do your sources indicate? >> it's too early to tell. everybody in the sun valley, bob iger of disney, rupert mourdock and brian cox, i can't imagine what breakfast is but it will be interesting. the question that the hedge fund wants to know is whether or not comcast will come back the answer to that question depends on your view of how critical these assets, both fox and sky are to the future of the media industry if you think comcast can find another way to make itself more relevant to consumers, then they might walk away at this point and they have to compete for fox from disney -- >> that's right. >> that's why sky is here.

>> what about the idea of regulators >> we'll know by friday. they have told the market they will provide a judgment on rupert mourdock's ability to acquire sky. most people think that he will get the clearance but the offer today is conditional on that clearance. the next 48 hours, that's the last protocol to the 14 pound share bid. ultimately because of what's going on the previous secretary matt hancock was promoted in a cabinet reshuffle. there's a new gentleman, jeremy wright, running it we will know very soon what the u.s. government's thought of the takeover by sky is here. >> really appreciate you joining

us arash running us through the latest details appreciate it. we're just getting started here on "worldwide exchange. on deck, pfizer backing down the drug company rolling back price hikes after president trump called them out. we have the details ahead. later, the last straw. american airlines announcing a big change to how you drink on your fghlits the details when "worldwide exchange" returns. of work... of work... a husband who snores with gusto... and marvin... are going to need a bigger bed. ♪ ♪ ambitions live everywhere. synchrony helps make them happen with financing and partner offers at over 350,000 locations. ♪ ♪ synchrony. what are you working forward to? ♪ ♪ this is a story about mail and packages.

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welcome back to "worldwide exchange." stock futures with the dow down 200 points corporate news, pfizer says it will postpone price increases after a conversation with president trump. landon dowdy joins us with more on that. >> goo pfizer reversing course. president trump criticized the company. o the president said they should be, quote, ashamed for taking advantage of the poor. now he's praising them pfizer raised prices on more than 40 drugs. the company says prices will return to their pre-july 1st levels until the end of the year or president trump's plan to curb high drug prices is implemented, whichever comes first. pfizer ceo ian read had an

extensive conversation with president trump. in a statement read said the company shares the goal to provide fair prices. >> that stock down 1.4%. thank you. stock stories right now include aar. the aircraft parts and services company lowered fourth quarter profit as it struggles with several contracts. the firm is sticking with the guidance for fiscal 2019 shares down more than 5.5% wd 30,that beat forecasts. the company is lowering its full year guidance. higher commodity costs have pressured the markets. shares of wd-40 down 2%.

jetblue has ordered 60 series e planes from airbus the order is worth about $5 billion, at least at those list prices jetblue is already a big airbus customer it had considered upgrading the fleets of small jets shares of jetblue are just slightly a higher in free market trade. courtney, still ahead on "worldwide exchange," a bold call on oil. why one energy exec says crude oil prices could soon hit triple digits later, we're talking tech. why facebook, goleog, lyft and uber are being talked about.

welcome back to "worldwide exchange." let's get another look at futures. the dow down 199 points. the dow and nasdaq is off. take a look at oil prices which have been on the move to the up side we're lower there as well. ice brent crude down at 77 point be point $13 we'll stick with the energy market the ceo of core laboratories making a bold call on where it's headed here's what he told jim cramer. >> we've had a 1.5% growth in oil demand over the last three

years right now we are seeing a big uptick and my fear, jim, when we go later this year and next year in 2020, we see $100 plus crude oil again. >> $100 plus crude oil again we have a long way to go right now wti sitting at $73.50. we have seen a big runup in crude oil prices crude is up 21% this year alone. >> it was interesting. we had a record 47 million people travel on the july 4th weekend despite the run up on gas prices you have to wonder when that will have an effect. >> that's a good point we have these potential inflation influences from what was going on you're seeing higher prices at the pump, higher prices when you go to the store. all of this could certainly play

a part in what you're going to see coming forward. let's now get a check on this morning's other headlines nbc's philipp mena in new york. >> reporter: the 12 thai youth soccer players are out of the cave and on the road to the recovery the 12 kids and coach are in quarantine families have spoken to the boys but through a window several people in the hospital after a massive gas explosion. that's where i went. they said two firefighters and one police officer were taken to the hospital they believe a contractor hit a gas line. france is moving onto the final round of the world cup the french team beat belgium,

1-0. they will play the winner of england and croatia. back to you. >> really appreciate that. speaking of the world cup, we have a winner, but it's not what you think, actually. the one brand bagging big bucks as we head into the final. >> plus trade turmoil. stocks under pressure on the trade war with china we're headed live to beijing with fresh reaction. "worldwide exchange" will be back in two. for your heart... your joints...

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trade war. futures deep in the red after the u.s. prepares to unleash $200 billion worth of new tariffs against china. we're live in beijing with reaction straight ahead. blasting our allies. president trump takes aim at germany as the nato summit gets away. it is wednesday, july 11th, 2018, you're watching "worldwide exchange" on cnbc. >> 21st century fox ups its bid for sky. you're watching "worldwide exchange," i'm seema mody. >> i'm courtney ragan. brian sullivan is off today. it is a busy morning to take care of. let's get over to landon dowdy with the top headlines. >> hey, court. here's what's leading cnbc.com president trump blasting germany at the nato summit in brussels calling out germany for its ties to russia. here's what he has to say.

let's listen. >> if you look at it, germany is a captive of russia. they got rid of their coal plants and nuclear they're getting so much of the oil and gas from russia. i think it's something that nato has to look at i think it's very inappropriate. >> the president is about to meet with fellow nato members. we'll bring you any news headlines we get some deal breaking news, 24th century fox is increasing the bid for u.k. box officer sky pfizer says it will postpone price increases after discussions with president trump. shares of pfizer are down slightly in early morning trading. back over to you. >> thank you more on the top story trade. the u.s. is set to impose tariffs on an additional $200 billion of chinese imports eunice yoon live in beijing. eunice, here we go again

>> reporter: exactly you know, seema, a senior administration official has said that president trump feels that trade with china is still unfair and unbalanced and that negotiations have been unsuccessful so instead he's going to slap 10% tariff on $200 billion worth of goods some of these products are included in the made in china 2025 list. there are a lot of other products that are consumer oriented the administration official did point out that the administration was trying to be very careful when they were looking and curating this list not to have so much impact on the u.s. consumer. there's going to be a two-month public comment period so companies can weigh in it's difficult to tell how american consumers are not going to be affected as one businessman said to me, everything and the kitchen sink is on this list. you have everything from fruits, vegetables, things that you'd

find in a typical american refrigerator as well as hand goods, suitcases, even toilet paper is on this list. now china has said it's shocked by this latest trade move. it's also -- it's kind of been a reaction of shock and anger because just a couple of moments ago they said this tariff threat is american trade bullying also the commerce ministry had said china has no choice but to respond to the u.s. action, that they would immediately file a complaint to the wto however, beyond that we don't have any clarity as to what the chinese are actually going to do that's been making a lot of american companies quite nervous. we don't know if that means chinese retribution. they laid out a plan to try to protect chinese companies from a trade war. they said this is a four point plan where the first two are meant to help the chinese companies directly

one is he assessed the impact of tariffs on chinese companies also use the income raise by counter tariffs as relief for chinese firms. the other two points are more of a longer term play but really show that the chinese are in this for the long haul >> you know, as this trade dispute escalates, china will run out of u.s. goods to put tariffs on the concern is that china could then use other ways to retaliate or respond to u.s. tariffs perhaps a boycott of american goods. is that something that you're fearing could be potentially on the list of concerns, a way that china will respond >> that is what a lot of people are worried about. this is 200 million dollars worth of stuff that they could slap stuff on. the math doesn't work in china's favor. it means that china would have to take other types of action. so there are a lot of ideas

being thrown around. one, as you said, that people who are worried that the chinese government can fan nationalism so that would get people to boycott certain products, american products or could potentially threaten american brands however, there are a lot of other companies who are more kir concerned about the regulatory hurdles that they face this is something big for american companies they find it as a huge challenge in the past three years and they think they're going to get squeezed more and more licensing a profls random inspections they said more difficulties when they try to bring in stuff and it's the nontariff challenge. >> challenge is a light word thank you so much. appreciate you keeping us honest it's so interesting, the lee

advice ceo, private company, very big maker of jeans. remember, the e.u. slapped a tariff on jeans as a retaliatory measure. >> right. >> you reported three really strong quarters of growth and earnings, but are you worried exactly about what you just asked eunice, about a boycott of american brands, the idea that this trade tariff could sort of give this angst against americana. he said that is something we needed to pay. >> sure. >> he mentions that that could be a concern down the road he said, look, we haven't decided what we're going to do with consumer prices once these tariffs really truly go into effect in the e.u. interesting all of these retailers are going to have to consider sort of these branding effects, too, the ripple effects. >> sure. so interesting it is a strategy boycott >>. >> it is

it's a strategy china has used before in the past with south korea, japan, norway over different internal disputes. see if they take aim at retail goods. clearly the retail industry is looking at that. retail eventually will end up in the cross hairs. let's see how the markets are reacting earlier in the show we told you futures are down and we have fallen a little bit further. the dow jones industrial lower than $219 and the s&p and nasdaq indicating a lower open. this is after it was compartmentalized. take a look at what's going on with the ten year yield on that treasury note, especially with the spread narrowing between the 10 year, 2 year, 30.

it's sitting at 2838. stocks responding for the u.s. invailing shang hang down 2% and in europe stocks lower across the board. germany, france, u.k., italy all down 1 to 1.5% as the nato summit takes place in brussels. let's take a look at the broader market and check in on the price of oil we spoke about it a bit moments ago. look at the action in the overseas market in particular here you're seeing a difference, very big difference in the action for brent crude versus wti brent crude trading down and it took a big leg lower take a look after president trump blasted germany for the ties to the russian energy

market, those two lowered it wti is the west texas intermediate here in the u.s. is a big difference >> let's bring that market perspective in with linda baucheam at federated. linda, good to see you >> thank you. >> the idea that uncertainty has returned to the stock market in 2018 is perhaps the understatement of the year trade dispute, brexit uncertainty, you had headlines coming out what is most important >> volatility in the summer period i think if you look to the underlying fundamental, the economy seems to be strong

earnings are going to be reported in a couple of days the fundamentals and valuations are going to be strong trade war is going to be something that is going to be headline grabbing and creating more volatility. i think that is more of a negotiation tactic that while we get towards the mid-term elections i think there's going to be more negotiations and be more united states and the allies, europe and nafta coming to the negotiation table coming in to settle those trade fears as well. so, you know, i think, you know, the economy and the valuations, which is really the underlying fundamentals for our companies remain strong. >> i know some of these ideas require patience and a longer term perspective and how the headlines and new tariffs being unveiled, the impact it has. it's something we'll watch this earnings season. i'm curious as a portfolio

manager, are you already making some allocations right now based on what you're hearing from the united states and china on this trade topic? >> sure. and, yes i think any prudent portfolio investor is going to take the headlines and look at the volatility and adjust their investments. what we have done is increased our cash positions you know, just really taking profits in companies that we thought, you know, are no longer meeting fundamental requirements you can also change the allocations. >> those are the strategies.

>> what is the option. is there a point the corporations when do you know. >> the stocks deal with that you don't know what investments they're doing. you have confidence and earnings growth uncertainty, tariffs, trade.

they're going to have the trade war. can some of it be given and you have the market with the good valuation. that's strong. jobs are pleasantiful. your analysis. that is important. that is one part of the analysis >> linda, federated, thank you for joining us today >> get us up to speed on the water today. >> american the latest company

to get rid of plastic straws and stirrers they'll get eco friendly biodegradable straws and stirrers it's expanding to flights. american estimates the changes will eliminate more than 71,000 pounds of plastic waste every year other companies like starbucks saying they're eliminating them globally by 2020 we've seen it with alaska airlines, chipotle. >> clearly a trend >> i totally understand the environmental concerns i feel like this sort of opens up an opportunity for innovation nobody likes the paper straws. i'm sorry, they stink. >> they melt >> not good. >> not good. nod got. >> so starbucks has the new cups kind of like an adult sippe cup. that's where we're going i don't want to spill it all over myself. >> the lipstick. >> totally, when i'm trying to avoid getting coffee on my teeth. this is a problem. >> speaking of planes, this one is weird

i don't know if you've ever seen the movie "snakes on a plane." tsa agents in miami were scanning a checked bag when they discovered a ball python inside of a computer hard drive the snake was safely removed and handed over to the u.s. fish and wildlife services. airport officials say the passenger will be fined. the tsa did have some fun with the discovery. they posted on the post -- >> if i knew there was a snake on the same plane i was on, i would lose it. i would be one of those passengers that -- >> i don't understand how a python was in a hard drive >> very small or -- >> this is -- you think we feel tight in those seats i don't know exactly how he feels. >> forget it. >> snakes are very rare in barbados anyway. >> wow wow. >> just bring some new wildlife. >> neither the snake nor the person got on the plane and good

news for seema she wasn't there, she was with us. we have a world cup winner, at least for retail. it's nike. with belgium's loss to france yesterday, all three remaining world cup teams are sporting nike uniforms. belgium was the last team standing wearing rival adidas. the on field success has responded with stock gains nike is up 23% this year versus a 9% gain for adidas and all of the leadership troubles. they still have some cultural issues to work through the stock gains are interesting. >> i believe emerging markets continue to be a source of strength for niko more eke more adidas. still ahead on "worldwide exchange," facebook under fire the social media company could be under serious hot water from a privacy watchdog we'll tell you the hefty fine facebook could be facing coming up next. plus, amazon's undeniable

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to reveal up to 100% smooth skin. venus let's bring you up to speed on the market action the dow down 208 points. heavy losses in asia and we're lower in europe as well. this on these intensifying trade concerns between the u.s. and china. a lot of news to get through. we want to make sure we tell you about a trio of tech news as

well first, facebook coming under fire overseas. british regulators are set to fine the social media company over data protection breaches. the information commissioner's office says facebook failed to ensure cambridge analytica's deleted users data the intended fine is thought to be $665,000 second, they're going to slap google with a multi-billion dollar antitrust fine. they're illegally using the dominance of the android operating system for mobile fines. the fine could be more than $2.8 billion. third, a former apple employee is being charged with stealing self-driving car trade secrets u.s. shorauthorities say he didi before trying to flee the country for china. he disclosed intentions to work

for a chinese self driving car startup. it reminds me of what happened with tesla and the employee who is accused of doing the same thing. >> concerning stories involving tech still ahead here on "worldwide exchange," the trade worries. the dow is down big this morning as we were showing you what you need to know heading into today's tdirang day stick around, we're back in two minutes. a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

welcome back to "worldwide exchange." dow is down 200 points joining us is julian emmanuel. jewel ye julien, a lot of trade on headlines. nato summit, different views on whether defense spending will be something leaders can find a solution on. in the meantime, the equity

market we are at the point where the market is trying to shrug off the blossoming trade war we're at the point where it does matter our view is that at some point during the summer you're probably going to get to where all sides need to begin talking and negotiating, but clearly the market is telling you that the concern has, in fact, started. >> so it's time to sell stocks >> no, it's not time to sell stocks it's time to be patient with the knowledge and the view that because the earnings and the economy are as strong as they are now, that the psychology will in fact be able to stabilize provided that we have some progress towards breaking this trade log jam. >> but i think what's difficult for investors to understand and work through here is today it

does seem like trade is a worry. it seems like we have the headlines, stocks go lower and the next day we've forgotten about it >> right. >> when does it become more of a permanent trend where you really need to start to be prudent with how your portfolio is shaped >> well, so for us it really depends over the next several weeks. there's a period of comment before, in fact, the latest round of tariffs gets imposed. let's see what happens you know, there's no coincidence that the president is talking to nato, the president will be talking to russia. undoubtedly there will be other conversations going on it's really a time to wait and see. if you're an investor, you don't want to overreact either way right now. if you look at this year, it's an emotional roller coaster. if you react to the wiggles that takes you off your plan. >> in the past when trade has

dominated, technology has many times been seen as a favorable sector, a way to be insulated from the external trade fairs. >> well, we think technology is sort of -- there he is a -- the head wind of rising rates which isn't necessarily a good thing, but on the other hand what technology does have is earnings strength and more importantly cash when you look at corporate america when there's more volatility with headlines, cash is very important. it stabilizes the balance sheet. it's used for buy backs when stocks move lower. it's a definite asset particularly in the environment where two years ago cash was yielding zero and now it's yielding close to 2%. >> it's going to be a big day for the markets. thank you for joining us really appreciate it. your look at markets where the dow is down 208 points on

the trade market on the concerns over trade we'll see how markets open thanks for joining us on "worldwide exchange. >> make sure you stick around because "squawk box" is next d se 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.

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good morning, trade war back on u.s. equities back in the red as the u.s. prepares to unleash $200 billion worth of tariffs. president trump's opening salvo at the nato summit is calling germany a captive of russia. take you live to brussels where there's some sad faces, upside down smiles. breaking news, fox raises its bid for british sky. now we're waiting for a counter.

it's wednesday, july 11th, 2018, and "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box." good morning welcome to "squawk box" here on cnbc we are live at the nasdaq market sites at times square. i'm melissa lee with mike santoli and joe kernen becky and andrew are off this morning. u.s. equities, we're feeling some pressure. threat of tariffs on $200 billion worth of goods on china. the s&p and dow looking to snap a winning streak the dow is down 206 points the nasdaq looking to be lower by about 7