i put a very good man in the fed, i don't necessarily agree with it because he's raising interest rates. that's president trump blasting the fed during an exclusive sitdown with cnbc. we'll bring you more of the president's comments straight ahead. search and rescue operations are under way right now on a missouri lake after a passenger boat capsized. we have that story. on wall street, shares of microsoft are shooting higher after the tech giant posted bett better-than-expected results and upped i outlook. you have skechers shares

which are deep in the red after the shoemaker reported an earnings miss. and the nfl halting its new anthem policy. we have the full details coming up it's friday, july 20th "worldwide exchange" begins right now. good morning welcome to "worldwide exchange." i'm dominic chu. brian sullivan is off today. futures are pointing to a very, very flat open the s&p would open down by two points if things hold steady the way they are into the opening bell the dow off by 28. the nasdaq up by 28. we will have more on the markets in a moment. first to that interview that has all of wall street talking today. president trump ripping into the fed during an exclusive interview with cnbc. the president saying he is not thrilled with rising interest rates.

here's what mr. trump told joe kernen >> i put a very good man in the fed. i don't necessarily agree with it because he's raising interest rates. i'm not saying i agree with it i must tell you, i don't i'm not thrilled because, you know, we go up, every time you go up they want to raise rates again i am not happy about it. but at the same time i'm letting them do what they feel is best but i don't like all of this work that goes into doing what we're doing. you look at the euro, you look at what's going on with the eu, and they're not doing what we're doing. we already have somewhat of a disadvantage, though i'm turning that into an advantage last year and for years we've been losing $150 billion with the eu nations, with the european union, and they're making money easy, their currency is falling. in china, their currency is dropping like a rock and our currency is going up and i have

to tell you, it puts us at a disadvantage now i'm just saying the same thing that i would have said as a private citizen. so somebody would say, maybe you shouldn't say that as a president, and i couldn't care less what they say because my views haven't changed. i don't like all of this work that we're putting into the economy and then i see rates going up i see china where -- look at what's happening with their currency it's dropping like a rock. >> let's bring in eamon javers live from washington with more the fed is an independent body from the executive branch, it doesn't appear as though president trump wants to maybe keep it that way are his comments considered maybe interference or is this just something where he's speaking more off the cuff >> look, the fed is an independent body, but its chair is appointed by the president of the united states. so to that extent the president has an enormous amount of power over who runs the fed. in this case you listen to that

sound bite, what you hear is the president saying he's not happy with them raising rates. he's frustrated because he feels like he's putting in effort to the economy and that effort will be diluted by the fact that the fed will continue to raise rates throughout the year. listen to what he said, he said i'm letting them do what they feel is best the president in his mind, by saying i'm letting them, you get the sense that this is a president who feels he has the fed on a leash to some extent and he's allowing that leash to be relatively long now, but he also feels he could tighten that leash if he feels he needed to later on this comment when we released it yesterday on cnbc caused so much intense interest in the financial community as people tried to figure out what the president meant and what this implied for the fed. the white house put out a statement later in the day saying of course the president respects the independence of the fed. they reiterated that quote, i'm letting them do what they feel

is best in the statement that they put out saying the president is repeating here comments he made previously as a private citizen. i think you have to look at that phrase i'm letting them, that gives you a sense of how the president views the fed. >> it's not just the fed comments that are getting reaction within wall street or elsewhere in america it's this idea that we could see russian president vladimir putin in the white house perhaps at some point later on this year. how is that u.s./russia relationship playing out since helsinki and it caught a couple of folks in the administration by surprise. >> absolutely. let's play the section of the interview yesterday with joe kernen the president talked specifically about russia. let's hear what he had to say. >> i have been far tougher on russia than any president in many, many years

even the big fight i have with germany over the fact that they're taking natural gas, they're taking energy from russia, paying them billions of dollars. i said wait a minute, we're supposed to be protecting you from russia and you're paying them billions of dollars what's that all about? now, do you think that's a positive for russia? i'm talking them out of things where they're giving billions of dollars. it's ridiculous, by the way, that's happening and on top of that germany pays a fraction of what they should be paying for defense. so they're paying russia and we're supposed to defend them from russia? so just look at that point but look at the sanctions i've put on look at the diplomats i threw out. look at all of the things i've done nobody else did what i've done obama didn't do it obama was a patsy for russia he was a total patsy look at the statement he made when he thought the mics were

turned off, okay the stupid statement he made nobody made a big deal about that getting along with president putin, getting along with russia is a positive, not a negative. with that being said, if that doesn't work out i'll be the worst enemy he's ever had. the worst he's ever had. >> so the president reiterating his point here, his approach to russia is getting along with russia, getting along with vladimir putin is a positive that said, the fallout from the helsinki summit this week caused this president an enormous number of problems he had to walk back a number of statements including going back to say he accepts the intelligence community's findings that it was russia that interfered in the 2016 presidential election. the white house had to walk back a comment that the president made in which he said no to a reporter's question when asked if russia was still interfering in american elections. the white house then said no, the president was not responding to that question he was saying no to something else this caused the president an

enormous amount of political difficulty at the end of that difficulty we get an amounnouncement from sarh huckabee sanders that the president asked john bolton to invite vladimir putin to the white house in the fall. so the president doubling, tripling down on this. the question is will that meeting happen before the midterm elections or after the midterm elections. the concern among the intelligence community is that putin will try to interfere in those midterm elections. the concern among republicans on capitol hill is the spectacle of another putin meeting right before an election all of that comes at a time when the director of national intelligence, dan coates, was on stage yesterday at the aspen institute security forum and was asked by andrea mitchell about this invite to vladimir putin.

coates seemed flabbergasted on stage, seemed like he had not heard this invitation had been offered. he was stunned it was an astonishing thing to double down on this and invite vladimir putin to the white house in the fall and also astonishing that the director of national intelligence didn't know anything about it >> concerns abound right now around wall street and washington let's bring in ben white from politico, he's a cnbc contributor. ben, eamon brought up a couple of huge points in the news flow today. let's start with the fed it is our bailiwick here the comments that he made, the independence of the fed, is president trump doing the right thing by weighing in so to speak on fed policy about how the american economy should work

from a monetary standpoint >> absolutely not doing the right thing. we have fed independence for a reason it operates separate from the executive branch for a reason, that's because the fed and chair powell are supposed to act in the best interest of the u.s. economy. that sometimes requires rate increases that sitting presidents don't like, members of congress don't like he's nominated by the president and then approved by congress. once in the office the fed chier is supposed to act outside of political influence. the fear here is eventually powell fears the pressure and then says i can't raise rates like i would like to trump should not be doing this it's not unprecedented other presidents have weighed in on the fed richard nixon done it, in the '60s, but it's generally viewed as not a good thing.

>> jay powell is an experienced professional when it comes to markets. let's talk about the russia situation. it is pretty interesting when members of your senior staff are not aware of policy initiatives that you have going on, especially when it comes to invitations to sitting heads of state at over countries thy of a be interfering in parts of our democratic process how do you as an administration move forward as a staff given the dynamic you have with coates not even aware of what's going on >> it's a nightmare for them, it's a nightmare for the staff it's driving everyone in the white house crazy that president trump shoots from the hip with things like this, making invitations that other members of the staff are not aware of.

this is an intelligence community that demonstrated that russia and putin meddled in the 2016 election, tried to undermine our dempsey. you had a nightmare press conference with him in helsinki, all of a sudden you're bringing him to washington possibly in the heart of the midterms. that's a nightmare for republicans on capitol hill, with putin in the middle of this it's terrible for the staff. under undermining morale in the white dissatisfied with how trump is handling this >> i would jump in and go further. i think it's humiliating for dan coates to not know about the invitation to vladimir putin he's the director of national intelligence it's his job to know what's going on in the world. he doesn't even know what his own president is doing, and he's on stage at the moment he minds out about it this is a president who does not mind humiliating even his own

people sessions has been able to survive it other people inside the administration have not. those comments yesterday from coates on stage set off a tick tock here of speculation in washington, will he be able to survive this will he stay in this role? will he resign he was asked by andrea mitchell yesterday if he had considered resigning, he said i won't go there publicly so he seemed to acknowledge something privately. the question is because of the candor of his comments yesterday, will trump want to fire him that sets off another round of speculation about a high ranking trump administration official. will he or won't he be fired that began yesterday afternoon >> great point just a couple moments left, ben what is next for director of national intelligence dan coates >> the question is does he stick around can he stomach this kind of public hue mill yamiliationhumin that's true for other people this is what you end up with, people getting humiliated, people not liking the policy and thinking about quitting.

>> all right ben white, thank you very much also eamon javers, thank you a lot of stuff to cover today. you can see president trump's full interview with joe kernen coming up at 6:00 a.m. on "squawk box. don't miss any of those comments let's turn back to the markets. futures indicating what could be a more stable open after a down day yesterday. we snapped a winning streak for the dow. the s&p off by 1 point the dow jones off by 16. the nasdaq up by 32 on the treasury side of things, we are seeing a more muted reaction no crazy moves the ten-year, 2.86%. joining me now is jeff hirsch from probableableleabilid management there were a lot of markets dynamics going on now for sure >> midterm election year >> seasonality, there's trump,

tariffs, trade, all kinds of things happening what would you say in your mind is the biggest risk for the market given everything going on >> it's the fed. not just the rate increases, but also the balance sheet reduction. it's having an effect on the market we saw the gap between the 2 and the 10 a quarter point. that puts a pinch on financials and the economy. the tariffs have an issue, but it's the fed they have to try to continue to normalize as much as possible. if i was trump, i wouldn't be happy either, it will put a pinch in the economy, it will go up during a midterm election year there's a perfect storm going on here >> this is not because we're being cheerleaders, even with the market declines yesterday, the s&p 500 is still a couple percent away from record highs this is a market that some would

say is very resilient despite whatever is going on given the fact that we have trade and tariffs, is there a case to be made that the market can still go higher from here? >> i think after a pause, i think we're set for a summer slump that we usually get. the resiliency is coming from some of the sentiment that continues to be dampered by a lot of the rhetoric and activities coming out of the administration that was back in june. bullish sentiment came down. it's climbing that wall of worry. i do see a pause here. the worst part of the four-year cycle heading into august. people are already taking off. we will see the drop in volume >> so, my point, we can't let you leave without giving us the view there's no crystal ball. we know you can't predict the

future history has a place in this. given what you know about history and trading, how could we see a midterm election year, last six months of the year play out? >> from my point of view you have seasonals negative. volumes going up, technical resistance fundamentals firm, geopolitical, monetary policy. the fed a big concern for the market in my view. as well as what's going on in the midterm election q2 and q3 are generally weak i see it flat throughout september, october we get volatility picking up. end of the third quarter, that's where the october phobia comes into play. then we hit the sweet spot, the fourth quarter of a midterm year and the first two quarters of a pre-election year. i expect a return to the rally in q2, but then the potential for the bear comes more into play after we had such a strong post election year and midterm

year >> so yellow flags, not red flags just yet >> not just yet. >> thank you very much for that. we're just getting started on "worldwide exchange." up next, sky is the limit for microsoft. the tech giant's big bet on the cloud and it's paying off. we're drilling down on mr. softy's big quarter. that's coming up. and we're about 45 minutes away from cnbc's exclusive interview with president trump we're talking trade, jobs, china, the economy everything, all of it is on the table. teiewhteeing you up for that big inrvw en "worldwide exchange" returns. are you ready to take your wifi to the next level?

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welcome back shares of microsoft are spiking this morning the company reporting better-than-expected fourth quarter results as more businesses signed up for its azure cloud platform and office 365 products microsoft is offering upbeat guidance for the current quarter. the stock is up 40% in the past year pushing its market cap above 8$800 billion let's bring in tim lesko microsoft is one of his firm's top holdings was it a surprise? microsoft is a mega cap technology stock it's always interesting to see how they can grow. in this case microsoft did grow in the right areas, right?

>> certainly the growth in azure and hybrid cloud services, where they're delivering traditional microsoft office via the cloud, the growth continues to be strong microsoft is benefiting from two things one, they moved their product suite to where the market is and the increase in economic activity brought up all areas of the business, even windows oem services was up 7% almost every number in this report was better than people expecte expected >> the preearnings options trade suggested up 4%. it's hard to move a company this big in that kind of way. what will power microsoft shares in this current quarter beyond the guidance we got? >> i think that's probably the biggest question facing

microsoft. over the past five years it's moved from a high single digit to low double digit multiple of earnings into a growth multiple. i would consider -- we're value investors and buying them when they're cheap and selling them when they get to fair valuation. but microsoft has not given us the impetus to sell it because it continues to grow earnings now fast enough to keep up with that high valuation. it is that rare value unicorn where you buy it based on valuation, and the valuation continues to remain relatively cheap as earnings continue to accelerate very few big companies can move from being a flat revenue company to this kind of accelerated growth it's a credit to satya nadella and his team >> 29 times earnings tim, thank you very much for that view on microsoft one of the biggest movers in the market so far this morning speaking of earnings, other names to watch include skechers. that stock falling 25% in premarket trading.

the company saying its second quarter earnings missed forecasts. this despite record sales. the footwearmaker's third quarter earnings and revenue guidance well short of analyst estimates. also skyworks solutions third quarter results beating forecast the outlook for the current quarter also above wall street estimates. and the company plans to hike its dividend by 19%. shares are up by 2.5%. intuitive surgical expecting better than expected second quarter earnings and revenues. those shares are up by 3% in the premarket trade. still ahead on "worldwide exchange," brewing trouble how starbucks could get roasted in a trade war with china. we're live in beijing with details. and the nfl hitting the pause button on its new national anthem policies. we'll have those details straight ahead plaque psoriasis can be relentless.

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♪ i'll help you carry on ♪ ♪ lean on me ♪ mmm... ♪ lean on me... ♪ mmm... ♪ lean on me. 5:27 on the east coast the big focus will be on washington the president talking everything from the fed to trade to russia in an exclusive sitdown with joe kernen catch that coming up in less than 32 minutes. more "worldwide exchange" returns after this break

the countdown is on. we're less than 30 minutes away from our exclusive sitdown with president trump. the fed, trade, russia, the economy, you name it all of it is in focus. we'll tee you up for that big interview. and powering higher. shares of microsoft jumping on an earnings beat and the nfl is halting its new anthem policy. we have full details coming up it's friday, july 20, 2018, you're watching "worldwide

exchange" on cnbc. welcome back thanks for joining us on cnbc. i'm dominic which yochu. brian sullivan is off today. landon dowdy has the top headlines. >> good morning. here's what's leading cnbc.com president trump inviting russian president vladimir putin to visit the white house this fall. sarah sanders confirming the invite in a tweet. russia's envoy to the u.s. says putin is open to a visit. shares of microsoft spiking in the premarket the company reporting better than expected fourth quarter results thanks to its cloud business microsoft upping its guidance for the current quarter. and skechers plunging after reporting a big earnings miss. the company also taking down guidance for the third quarter shares of skechers are down about 25%. back over to you >> thank you, landon dowdy now to that big interview that has all of wall street talking

today. president trump ripping into the fed during an exclusive sitdown interview with cnbc. the president saying he's not thrilled with rising interest rates. here's what mr. trump, the president of the united states, told our own joe kernen. >> i put a very good man in the fed. and i don't necessarily agree with it because he's raising interest rates i'm not saying i agree with it i must tell you, i don't i'm not thrilled because, you know, we go up and every time you go up they want to raise rates again and i don't really -- i am not happy about it, but at the same time i'm letting them do what they feel is best. but i don't like all of this work that's going into what they're doing and you look at what's going on with the eu and they're not doing what we're doing and we already have somewhat of a disadvantage, although i'm turning that into an advantage last year and for years we've been losing $150 billion with

the eu nations, with the european union, and they're making money easy, their currency is falling. in china, their currency is dropping like a rock and our currency is going up and i have to tell you, it puts us at a disadvantage now i'm just saying the same thing that i would have said as a private citizen. so somebody would say, maybe you shouldn't say that as a president, and i couldn't care less what they say because my views haven't changed. i don't like all of this work that we're putting into the economy and then i see rates going up i see china where -- look at what's happening with their currency it's dropping like a rock. >> the president also talked russia, china, trade, jobs, the economy. all of it. so be sure to catch that full interview with president trump coming up in less than 30 minutes from now right here on "squawk box" on cnbc a must-see interview the president taking aim at the current fed and its policy

so let's drill down on what the fed is doing with me now is anthony chan from chase. anthony, the president has weighed in on fed policy let's set that aside whether he should have done it or shouldn't have done it is he correct? is rising rates and that environment going to put this economy more at risk >> dominic, you have to consider that the federal reserve's job is to try to make sure it slows the economy enough that you don't overheat the overall economy. when it comes to rising increases in the fed funds rate, you have to realize that historically that's not been the major catalyst behind a slowdown or a recession you go back to 1981, what you saw there is that the federal reserve raised interest rates by more than 10%. yet guess what that was not the major culprit for the recession. we had double digit inflation, we had the trade weighted value of the u.s. dollar from 1978 to 1981 i remember living through that

period where the trade weighted value of the dollar increased over that period by 25%. that was a huge drag on the trade front in terms of slowing the economy down the last three recessions, the federal reserve over the three years before recession has actually increased interest rates by an average of less than 3% so the fed funds rate increase is just one of the factors out there. there are many other factors out there that go into determining whether recession is coming. right now the fundamentals are good the federal reserve is doing the right thing in terms of doing their best to slow the economy without an overheating >> there's been a lot of talk about the yield curve. the difference between short-term interest rates and long-term interest rates when that gap starts to shrink, it's not exactly a good sign there's a debate whether that yield curve dynamic given central bank intervention is as indicative of the health of the economy and a predictor of recessions

where do you stand is the yield curve something we should be watching as it flatten the as a predictor of a recession? >> historically it has told you bad things happen when the yield curve reverts, but it's not as accurate as it used to be. when the yield curve flattens and when the index of economic indicators drops for three consecutive months or more, and if you go back as far back as the recession periods will take you using that data, it's never had a false alarm. so i would prefer to look at fundamentals plus the yield curve because the fraederal reserve's balance sheet is such that now it's not as indicative what do we see with the index of leading economic indicators, it just jumped. so those two indicators are still not telling us a recession. the yield curve still has not flattened. it's almost flat like a pancake but not inverted yet >> you spoke about a lot of

indicators we can't let you leave, we want you to weigh in now. the economic back drop in the u.s., most say it's fairly constructive what is the most optimistic thing about the u.s. economy from a data point and what do you think is the biggest risk? what should we be watching in case things go wrong >> the most exciting thing is labor markets are tight. we have 4% in the unemployment rate we have a good chance of lowering that further. that makes consumers comfortable. what are the things that make me worry? if you look at corporate nonfinancial debt as a percentage of gdp, it's starting to show a slight flashing yellow light. in the next two years, because corporations borrowed so much money, that could be high enough that it could lead to the next recession in 2020 or 2021. i'm watching that closely. >> as i'm sure many traders on wall street are as well. anthony chan, thank you for joining us on "worldwide exchange." time for the top trending stories. for that we turn to landon dowdy.

she has all of those there are some fun ones today. >> sometimes the prey becomes the predator a showdown between a shark and a grouper, you may be surprised who won. >> look. >> oh. >> look how big that fish is >> whoa! >> in florida a grouper ate a reef shark in one bite >> come on >> was all caught on video the shark was hooked on a fishing line belly up in the water off the coast of the everglades. a shadow appeared, then all of a sudden a 500-pound grouper devoured the shark in a single chomp. i didn't know groupers could get that big >> groupers are like the trash compactors of the ocean. they eat just about anything i have never seen a a500-pound grouper myself >> one bite. >> here's the story of a lovely

listing. the brady bunch house is up for sale the house was used to shoot exteriors for the sitcom all the interior scenes were shot in a studio it is listed for 1$1.9 million the original owners bought it for $61,000 in 1973. realtors say they are bracing for high interest. the house will be shown by appointment only the actual house is only three bedrooms and two baths six kids >> but the studio shots made it look so much bigger. it's the magic of television it also tells you about one of the biggest wealth creators in u.s. history, real estate. the nfl suspending its new national anthem policy the league and the players association agreeing to halt enforcement of the new rules while the two sides work on a resolution the move follows reports that the miami dolphins were considering fines or suspensions for fans who protested during the national anthem. the nfl passed a rule back in

may that forbids players from sitting or taking a knee if they're on the field or on the sidelines for the anthem >> the guy you're looking at now, colin kaepernick, was the guy who became -- >> led the charge. >> the poster person for that move with that, there is always this fine line between expressing your non-violent free speech rights in the united states versus the idea of respecting our flag and anthem. i will always stand for the anthem, but it's hard to say whether or not it's tough for these players who want to protest something in a non-violent way to do so without -- >> if we're talking suspension -- >> that's the reason why the union and the owners are getting together thank you for all of that. it is also day two of golf's oldest major championship with tiger woods just starting his round this morning at carnoustie in scotland. let's get out to adam reed live at the course which is playing

very different to the sunshine of yesterday adam, i got to say, one of the things we want to look at when it comes to the british open or the open championship is just this idea that course conditions can be so fast and so brutal, but it could be a situation where weather could also do something pretty good. we are know adam and the weather out there are having issues with the satellite window we'll come back to him but you should know that carnoustie is showing signs of rain umbrellas are up all over the place at the open championship. coming up, how starbucks could get roasted in a brewing trade war with china we're live in beijing with those details. and we're less than 20 minutes away from joe kernen's can't miss interview with president trump. keep it right here "worldwide exchange" will be back after this break. e. like internet that's up to the challenge. the gig-speed network from comcast business gives you more. with speeds up to 20 times faster than the average.

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they're handing us more than mail they're handing us their business and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service. priority: you ♪ welcome back to "worldwide exchange." we have adam reed back live at course, carnoustie in scotland, which is playing different to the sunshine of yesterday. i was watching earlier this morning, there are umbrellas everywhere on the course >> i've done you guys a favor and put mine down for you as you have come to me now, but just about five or ten minutes ago, there was a stampede of umbrellas up the 1st, which is to my right-hand side. that's because tiger woods teed

off. the gallery following him is three times the size of everyone else around this course. what a draw tiger woods is still to golf. he hasn't won a major for ten years. but he's back playing again. carnoustie, scotland is one of the places he's a massive draw he did make his par on the 1st the umbrellas are still around up the fairway as he heads to the 2nd. as you can tell, it's unbelievable to think i'm in the same place as yesterday because there was bright sunshine, pink faces, sunscreen being splashed on but it's only umbrellas today splashing around in puddles. there are some movers because of the weather early on this morning. rory mcilroy is one of them. and zach johnson is another one. they are to 4 under, but american kevin kisner is still leading the way on 5 under for

his round. but tiger is one of the huge draws today. they expect huge crowds through the door again today about 150,000 over the weekend, despite this rain. that's what you get with links golf wet and wild >> adam, one big thing here, we saw a lot of these pros hitting 270, 300-yard 4 irons, drives that went 400 yards. is there a sign that the rain and wet conditions will slow the course down a bit from what we saw yesterday? >> well, as you quite rightly point out, the balls were just running and running off these big tee shots. rory mcilroy went after everything tiger took irons off his tee, and he was saying earlier in the week about how creative he wanted to be around the course that gave him a chance we've already seen balls sticking to greens you can go at the flags. we are expecting potential low numbers today.

the early starters are making their case to be in contention >> perhaps some scoring conditions for that weekend. we'll watch closely. it will be broadcast on golf channel and nbc sports thank you very much, adam reed from carnoustie. there could be trouble brewing for starbucks in china eunice yoon is live in beijing with those details starbucks getting roasted too much >> the company would like that to be the case i'm at one of the newest competitors to starbucks in china, it's called luck in the name is derived from the chinese name of luck and happiness. what's interesting also is the logo, a deer native to china this competitor is entirely home grown. earlier today i was speaking to one of the co-founders, he said that luck in is different from

starbucks because they believe chinese people will be doing everything on their mobile phones so you cannot use cash in any of their stores everything is paid for via the app. the other thing is many stores are doubling as delivery stations they believe chinese people more and more will want to order their food and drink online. so they have a guarantee, 30 minutes delivery to your house, office, anywhere else, or you get your coffee for free just like other chinese rivals to foreign companies, luckin is competing on price they say most of their drinks are going to be about 20% to 30% cheaper than starbucks it's also been openly criticizing starbucks. recently they published an open letter to starbucks criticizing starbucks business practices they say the company will sue starbucks. he said we believe starbucks behavior undermines fair

competition and prevents chinese customers from having convenient access to high quality coffee at a reasonable price as for the trade war, he doesn't think the company will benefit, but just this week the state media was interviewing people here who say they prefer luckin to starbucks because of the trade war. >> beauty and taste always in the eye of the beholder. eunice yoon, thanks for that update we are just minutes away from "squawk box" and joe kernen's interview with president trump. let's bring in becky quick for a look at what's coming up the interview is front and center >> the interview is just about everything today we'll run through this it's not often that the president sits down and grants 15 minutes of his time to talk through some of these issues and there are so many issues to talk about joe sat down with the president yesterday, again for 15 minutes. they talked about trade, they talked about russia, they talked about the economy, and in one

issue that's been making so much news already they talked about the federal reserve. donald trump is someone we talked to for a long time on "squawk box" before he was president. he made his views clear that he was a real estate guy, that he liked lower interest rates you might have anticipated he changed his tune a bit as president, but he says, no, he has the same views he always had. and he made it clear to joe he doesn't like the federal reserve raising rates, particularly when he's doing things he thinks will help the economy you will get all the details, we'll play that full interview when "squawk box" starts at the top. we have a lineup of people to react to it, everyone from senator heidi heitkamp and federal reserve former officials. we'll talk about it all mornin long on "squawk box. >> just the two clich clips we'n so far have gotten me so enamored we'll see what else happens when

we tune in live at 6:00 a.m. eastern. thank you for those details. on deck here on "worldwide exchange," we have geopolitics, earnings, economic data. what are the most important drivers for the maets rkright now? we'll ask tim seymour coming up next man: are unpredictable crohn's symptoms

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welcome back to "worldwide exchange." we're about seven minutes away from joe kernen's big interview with president trump we already heard the president's comments on the fed and russia there's so much more coming your way. a must-see interview let's bring in tim seymour, a "fast money" trader. >> great to be here. good morning >> good morning. president trump covered a lot of ground let's talk about the interest rate side of things. that's what a lot of wall street is focused on. president trump's comments, are they going to have an effect elsewhere in the world given his policy tilt? >> i think the comments yesterday put a halt on the

dollar move. they knocked down interest rates to some extent the ten-year has been struggling to break higher. with or without the president's comments we're in a range on the ten-year the reality is if anything you could see this flattening of the yield curve continuing to push rates down bottom line, if fiscal policy is doing its job, the fed has to continue to do what they're doing. this is good news for the president and his administration the tax cut is the first time we had some fiscal ammunition as opposed to monetary. >> it's balanced there's a move where the fed has to monitor the inflation in growth situations. >> they have a dual mandate. >> what is the ripple effect going to be on other markets president trump mentions other central banks, the european central bank how will that play out from this global ecosystem is there a brewing currency war because of what he said about the u.s. dollar? >> i think ecb meets next week

the euro is probably held hostage by its own politics on some level they, too are beginning an unwind of their own qt the real question is what is their targeting on when the first hike will be across europe i think dollar euro is also range bound. for folks who think the dollar will become an aggressive factor for global markets, i don't think so i think around 95 on the dollar index we run into major resistance central bank differentials favor a slightly stronger euro >> the other central bank is the peoples bank of china. the yuan is deprecating against the dollar that means maybe they're getting a stimulative effect given this trade rhetoric how does that play out for the u.s. is that something that president trump and the fed or anybody else in the u.s. government wants to be conscientious of

>> the call that china been a currency manipulator is one we heard from multiple administrations, whether it's jawboning, this is not a new concept. we're in the middle of a trade war. the devalue ways of a currency s something that happens the dollar on the way down, the yuan was around 660, 665, i think around 690 we break through that people will be worried. the pboc and china are concerned about currency stability and capital outflows i'm of the belief they'll be cautious about playing a manipulation game here >> let's see what else president trump has to say about the economy, everything else and that big interview tim seymour, thank you very much for joining us on "worldwide exchange." that does it for our show this morning "squawk box" interview with president trump is coming up after this break he will be talking about a lot of different things.

you heard about the fed. you heard about the economy, russia we have a lot of other ground to cover. that's coming up after this break. a mu-sstee interview you won't want to miss 6:00 a.m. eastern time keep it tuned here are you ready to take your wifi to the next level?

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. good morning welcome to a special edition of "squawk box. coming up, president trump's one-on-one interview with joe kernen he speaks up about the fed >> i don't necessarily agree with it. >> the trade war with china. >> we are being taken advantage of i don't like it. >> and vladimir putin. >> i'll be the worst enemy he's had. >> it's friday, july 20, 2018. "squawk box" begins right now. >> live from new york where business never sleeps, this is

"squawk box. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and mike santoli. we have that special interview joe did yesterday with the president. very quickly look at the u.s. equity futures at this hour. you will see things are relatively flat. markets were down yesterday. dow was down by a half percentage point this morning the dow looks down, only by 2.5 points s&p is down fractionally and the nasdaq is indicated up by 30 points look at treasury yields. we've been watching that and the ten oversitting at ten-year sitting at 2.85%. rates came up in your interview yesterday, joe >> yes >> and those who control the rates. >> i remember -- there are certain things that are -- i don't know if they're