china blasting president trump this morning trade tensions heating up again. one of the world's biggest banks making a big time come back. the death toll continues to rise in indonesia nearly 100 are taed. one of app aelle's biggest supps hit with a massive computer virus. we'll tell you more about the monster quarter on this monday august 6th as worldwide exchange begins right now

>> more on krour tyour top stor the moment somebody or a group tried to assassinate president maduro with a drone here's more on your markets and money and how they're setting up their day. see if this solid mini-run can continue domestic small cap stocks have done well lately the benchmark ten year bond yield can't get out of that 3% zone as well that yield at 2.94%. the real big market story globally continues to be china or trade war fears continue to hit investors in china the shanghai index, down again

is now down more than 18% this year and that's not even the worst of it. we'll show you the worst market hit in china coming up in your morning rbi at the end of this hour in europe we're seeing mostly red. slight losses there. not a lot here down about .2% for the major markets. the big percentage mover anywhere in the world right now aside from china is oil. oil is up about .7%. back near $69 a bbarrel iraq protestors blocking the roads. they want jobs and more government help with the economy. we'll be watching that situation closely and also a check on bitcoin. i'm sorry. i understand, a lot of positive talk that's not evident this morning. bitcoin down another .9% back below 7,000 6,970 per coin. >> china state media is lashing

out at president trump let's get to eunice with more. >> thanks. if the trump administration is waiting for china to blink first, beijing's message is keep waiting. china is going to impose tariffs of its own in response to the u.s.'s promised and proposed $200 billion worth of tariffs. now china's tariffs will cover an additional $60 billion. he described it as weak and president trump tweeted that the u.s. is in a better position economically than china. the chinese state media is countering that the white house shouldn't underestimate china's firm will to win a protracted

trade war and also it launched an unusually personal attack on the president for what it called his street fighter style deceitful drama of extortion and intimidation so a lot of harsh words right now for the president as this trade war spat continues. >> i wonder how they would define winning, as it were but i want to ask you more about the markets. the stock market has been hit pretty hard. >> the stock market has been hit hard but the biggest impact is on it. there's been a lot of speculation that the chinese government was purposefully devaluing the currency in order to try to support some of the chinese exporters but now we're seeing the chinese at a 14 month low and just today they

reimposed requirements that make it that much more expensive to bet that the yuan is going to continue to fall and we're seeing authorities very sensitive about a depreciating yuan nervous about a repeat of 2015 when it continued to depreciate so much that it triggered capital flight and there was a big outflow of capital the chinese government doesn't want to see that again and also they could be wanting to send a message to the trump administration because there have been so much speculation that china was using the currency as a weapon this could be a message that the chinese are saying to the trump administration we're not using this as a weapon in this trade fight. >> well, we're going to find out. currency is another major story as well. we'll see you soon. >> well, china obviously dominating the headlines in many ways including a continued wealth destruction we have seen in their stock market. what might this mean to you and your must be here? let's find out and also what else is key for your business week and bring in our friend and

he equity strategist one of the best guys to start your morning week with thank you for joining us how much are you and your team watching the chinese stock market if at all. >> we're definitely watching it. i mean, it's now down 80% year to date but down more than 20% and that's a big concern this is the second largest economy in the world and not just the stock markets falling it's economy is starting to weaken so it will -- when you see the second largest economy in the world see those kind of moves at some point it has to ripple through to the rest of the world. so not to say that obviously the stock market in the u.s. continues that very well in the face of the trade wars the only thing that acts better now is the boston red sox but i know that what they're doing right now doesn't mean it's going to continue. it's something we have to look for. the chinese can talk about this

and they certainly don't want their currency to fall out of bed like it did in 2015 but it does seem like they are using it as a tool because they can't play tit for tat on the tariff issue in terms of raising tariffs so they have to use something. >> looks like the american stock market is sweeping the chinese stock market like your sox swept the yankees over the last three game set. >> four games. >> four games. there's two ways to look at it the chinese market is slowing because their economy is slowing. that's bad for the world or people are pulling their money out of china and perhaps going to put it back or into the united states market in other words, is their decline good or bad ultimately for our equity markets >> if you look at the correlation of the u.s. stock market overtime it's not a perfect correlation but they do

tend to move together. but eventually we, you know, one plays catch up with the other. it tends to be china for the last decade or so has been the leader in the market as i said in the past, whenever the fed starts it's tightening cycle it usually doesn't have an immediate impact but it eventually does and we're starting to see that now with fixed income investors we're seeing last week with bill gross not doing well aig which insurance companies and big investors in the fixed income market. their earnings were hurt by poor investments so we're starting to see that move into the markets so at some point a lot of these other issues will come to play with what's going on in the stock market. >> what's the most important sector of the stock? you do a lot of technical work

as well. what's the most important thing that our viewers and listeners should be watching for right now? is it still the f.a.n.g. stocks or semi-conductor stocks, what are you watching >> the tech stocks in general have been the key leader for the stock market ever since the election of 2016 the one thing though is that the f.a.n.g. stocks have been a key leader within that group however so have the semi-conductor stocks. we saw the semi-conductors go down in the spring but the f.a.n.g.s. held up recently. they started to get pressure before apple computer held up with the earnings. so if you watch the combination of those as they both start to rollover, we have a problem. but one of the things that really stands out to me is some of the defensive groups, whether it be utilities, consumer staples and now health care, they have been acting well since may they have been outper forming the s&p. if you want to move out of the tech stocks and the high flyers

into some of these more defensive names you'll not get hurt by the performance and number two they'll help you weather the storm if we do indeed see the stock rollover a little bit. >> a lot to watch for and you laid it out nicely here. a boston dodger series would be a good series. i have a feeling matt, thank you very much. see you soon. >> thank you let's get a check on top stories. landon is back and here with those. >> your big individual stock stories include hsbc europe's biggest bank posting a small rise in first half pretax profit as it's renewed focus on developing and emerging markets has paid off however it's also setting aside $765 million as part of a civil settlement with the justice department over the sale of toxic mortgages before the financial crisis first quarter operating profit rose as the company cashed in on several investments and they include the sale and majority of

the chinese operations and berkshire hathaway second quarter profits surged rose five fold higher demand for shipping and car dealership unit financed more purchases. >> we'll see you in a couple of minutes. in other corporate news the next ceo of goldman sachs starting to put his team together. he will be tasked with helping goldman turn around the trading business sources say the announcement could happen as early as today. >> all right well we are just getting started at 5:11 on a monday morning. up next, one of apple's piggest suppliers just getting hit with a major virus. details ahead. and bullish bullard. an upbeat tone on the economy? he sat down exclusively with cnbc we'll bring you those comments and rather surprising ones about

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this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. >> 4% in the last month or so. we had a nice little mini run for the stock market no indication that's going to continue today maybe a little bit in the red. it's early we have a long way to do in corporate news one of apple's biggest suppliers was just hit

with a major computer virus. >> that's right. taiwan's semi-conductor shutdown several factories friday night after it's systems were hit by a virus. tsmc is the largest contract chip maker supplying products from apple and nvidia and qualcomm it expects a full recovery by today. they blame it on a mistake on the installation of new software and not on hackers they expect the incident to cause delays and shipments and will cut revenue by 3% and this could delay the new iphone model which is expected to be unveiled next month analysts say the impact to apple will be limited. as suppliers usually prepare during the initial ramp up stage. take a look at this. shares fell as much as 1.2% today but closed down about .6%. >> big story thank you very much landon

st. louis fed president james bullard gave a big green light for your money he sat down with our colleagues this morning let's bring in one of our colleagues on this big interview. jeff, it was a green light in some ways to say okay things are pretty good in the united states. >> yeah, absolutely. in spite of the headline on the non-farm payrolls number on friday he told us that was a solid number, a solid report and it reflected strong growth in the u.s. economy we talked to him about the state of the trade negotiations globally and whether we're in trade wars he said the best case scenario we could hope for is that ultimately everybody accepts we need to move to a world where there are no trade barriers and he'd like to see tariffs come down globally. he also warned if it doesn't two that way we should be alert to

the prospect of an inflationary shock to the global supply chain. let's have a listen to what he had to say they're very sensitive so it could create a cost shock for u.s. businesses. because they have to move a factory. that's going to be costly and take some time. >> that's about as down beat as it got the headline really from our conversation was james bullard refuting suggestions that after a long period of expansion, it is inevitable that we see recession, although he is alert to the idea that we get an inversion in the yield curve which he would be concerned about, he said you know what, just because we get flatness in the curve, it doesn't mean

necessarily we have to see a recession in the united states and ultimately, we could see this period of growth run for longer than many in the market currently think it will. back to you. >> yeah, jeff, listen there's a wide ranging interview as well and i guess what caught my ear and eye i suppose and what's leading cnbc.com right now is that he basically admitted what trump has said which is that a lot of countries by themselves are, indeed, protectionist. >> yeah, absolutely. you know, we sat down with him here in london and there's a different perspective outside of the united states, i would say, on what donald trump is doing with regard to demanding movement on trade with germany, with china, with the eu as a whole and we put that point several times to him that from this side of the world sometimes people see his actions as being about protecting jobs in the steal industry at home and in the car industry at home, not necessarily about reducing trade

tariffs. bullard pushed back and said no ultimately, if trump leads us down a path where we end up with no tariffs, that would be better for global trade that would be better for the world. and it would also put al lie to some of the suggestions that what trump is about is protecting workers in jobs that at the moment don't appear to be competitive in wage and cost terms at an international level. >> all right a big interview with jim bullard. appreciate you thank you very much. on deck, new he vak withdrew wagss ordered in california the massive wildfires continue to burn unchecked plus >> full details on the story coming up. why did i want a crest 3d white smile?

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kayak searches hundreds of travel and airline sites to find the best flight for me. so i'm more than confident. how's your family? kayak. search one and done. >> things should be fairly quite and maybe some what sane there this week. why do we say that congress is on recess. but there is still news out of washington d.c. for the trump administration reimposing sanctions on iran today.

these are some of the same sanctions lifted under the 2015 nuclear deal they include automobiles, aircraft and metals. mike pompeo saying the sanctions are going back in place because iran is the world's largest state sponsor of terrorism in other news out of washington, president trump taking to what else, twitter to defend his son donald jr. over the weekend. tracy potts is live with more on that story. >> hey, good morning, everyone so that tweet is interesting because for the first time now the president is changing his story about that meeting between donald trump jr. and the russian lawyer. >> donald trump jr.'s trump tower meeting with a russian lawyer during the campaign was, quote, to get information on an opponent totally legal. president trump admits for the first time on twitter. that's in line with his son's e-mails but not the statement he reportedly dictated that the meeting was about russian adoption. >> he knew that this meeting was not about adoption as he

publicly had stated. as he publicly told us so he knows different now. when did that happen >> the president adds it went nowhere. i did not know about it. now that's significant because the fbi special counsel is looking into ties between russia and his campaign. >> the question is, what law statue or rule or regulation has been violated? nobody has pointed to one white house is explaining why president trump calls the investigation a hoax. >> a hoax is the idea that somehow the russians directed an controlled his campaign or directed and controlled his administration. >> mr. trump doubling down on his claim that the media are the enemy of the people. >> i will say this is a moment of increased vitrial by the president at the media. >> even though his aids say they don't believe it. >> so while on vacation the president is also tweeting about politics, predicting a red wave of republican victories in the fall. >> blue wave, it is the red wave according to the president

tracie potts thank you very must have now to that rather piz czbizarrr out of venezuela over the weekend. there was an aapparent assassination attempt on maduro from a drone watch this now keep in mind that all unfolded on live venezuelan state television maduro was speaking at a military ceremony. you can see his body guards rush forward to cover him explosives allegedly dropped from trodrones madura said u. s. based opponents helped finance the attacks. maduro is deeply unpopular and rocked by violent protests that nation struggling with a collapsed economy and inflation. could be another reason oil is up this morning. >> let's get another check on your morning headlines including the massive and deadly earthquake in indonesia.

>> good morning to you at least 91 people are dead after a magnitude 7 earthquake hit indonesia's resort island leveling thousands of homes and buildings. hundreds more people were injured and the death toll is expected to arise. thousands have been evacuated. firefighters continue to battle what has now become the fifth largest wildfire in the state's history. the complex fire is actually a pair of fires that scorched over 266,000 acres of lake county the infernos destroyed 68 homes and threatened more than 50,000 more structures. it's also spawning a powerful vortex with winds. it's one of the most powerful the state has ever seen. >> shootings in chicago leave multiple people dead and wounded this weekend 34 people were shot and killed in a period of 7 hours from

saturday to sunday morning most shootings targeted large crowds on the city's south and west side. brian back to you. >> in a sad state there in chicago. thank you very much. on deck, trump, tariffs and trade. the three tees that never to be on every investors radar this week and lights out maybe for daylight savings time. there's a big push somewhere that has everybody talking this morning. we'll tell you where iist when worldwide exchange rolls on right after this we're drowning in information. where in all of this is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you partner with a firm that combines trusted, personal advice with the cutting edge tools and insights to help you not only see your potential, but live it too. morgan stanley. jimmy's gotten used to his whole yup, he's gone noseblind. odors.

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china tumbling overnight again. trade fears heating up we'll show you how much a big chinese market is now down and is europe about to pull the shades on daylight savings time? it's a big story it's getting a lot of sunlight today. we'll exchange as worldwide exchange rolls on. all right. welcome back and thank you for being with us here on cnbc if you think we should end daylight savings time, raise your hand. no two hands on the wheel. got a lot to get to today. let's kick off a second hour of the show with landon. >> it's back in full production after systems were hit by a virus. it's the world's largest contract chip maker supplying

parts for companies raging from apple to a and d and qualcomm. >> it's renewed focus on developing and he meshemerging s paid off the next ceo of goldman sachs is starting to put his team together david so mtsoloman is expected o name jim we'll keep you updated. >> we certainly will landon, hi, good morning. good to see you. >> we're halfway through the 5:00 a.m. hour in new york and elsewhere in the eastern time zone by the way. dow futures off 31 points right now. the bond market yielding 2.94% your big stock story continues to be in what used to be the second biggest stock market in the world. that's china not anymore. china now the third biggest because the market decline has been so dramatic that japan has

now reascended the second largest stock market but shanghai composite in china down another 1.25%. down 18% this year but that's not the worst of it. coming up in your morning rbi we'll show you the market in asia that's been hit the most. you'll look very smart at the office today sea of red in europe but not a very deep sea. 2 to 3% declines across the board. so very very fractional declines outside of stocks global look at commodities. oil a lot of stories here. iranian sanctions going back into place today and protests in iraq on roads. peel blo people blocking roads because they want jobs bitcoin also disappointing the bulls down .6 on coin base back below 7,000 bitcoin 69 by the way, probably no doubt more on bitcoin on fast money at 5:00 p.m. tonight and you should tune in because i'll there b

ther - be there we're seeing china get all the headlines today and recently because of the trade war talk increased rhetoric against the president. the iranian sanctions going back in place today at $1.15 and a half on euro dollar. what are you watching most closely. >> not much has changed. earnings are booming and peeking at around 23%. we wrapped up the second quarter earnings season. the fed is on track to raise rates gradually whether it's three more times or six more times. nobody including the fed probably really knows here and we're still a ways away from a possible yield curve inversion at least measured by the three months to ten years so we're still in this twilight zone between mid cycle and late cycle but certainly china is important

here because the chinese economy has been slowing tends to follow this cycle and crisis response and we're in the middle of that cycle and so policy makers need to ease policy but they're doing it while they're raising rates. that's putting pressure on the r and d and china needs to do more and you're seeing it in the stock market there obviously trade a very big part of that story as well. so, you know, emerging markets in general but china in particular, i think are really the thing that is moving the needing he needle here and two years ago the fed had to pull back and say sorry we're not going to do anymore for now because china became a systemic issue and there's not signs that the u.s. fed is about to go there.

i think you disagree and i'm not saying that at all my understanding is and this is hard to prove just because of how we look at history but my sense is that when the fed has gone too much in previous cycles and has inverted the curve in the process by raising short rates to too far, two conditions have been met when that has happened one is obviously the yield curve inverts and i measure three months to ten years a lot of people measure two years to ten years but i think that's a less pure indicator because it already reflects expectations for the fed. so you have the curve inversion

historically but you also have the fed putting it's policy rate well over what is theso-called natural rate 2 to 300 basis points so if you think about the current cycle, the three month to ten year curve is about 100 basis points give or take ten basis points. that could require four more hikes at least. >> do we get those do we get four more hikes in the next six to nine months? >> i think not over the 6 to 9 months but over the next two years it is possible the fed is down 7. the market is expecting three more over the next two years the fed is suggesting six more so it could happen but in 1994 the fed did a massive hiking cycle. it completely flattened a curve. then the fed backed away and the market was up 35%. so even a flat curve doesn't do anything and if the fed goes four more times the curve flattens to zero at that point the policy rate will be maybe 50 to 100 basis

points it's not enough in my opinion. so my sense is that if and when the curve inverts it will be at least a premature signal let alone maybe a false positive. >> you are hat and cattle and we appreciate it. thank you very much. all right. what else is trending this morning? something apparently having to do with daylight savings time which nobody except for like six people like. landon is back with the trending headlines. >> do you like changing your clocks back and forth? >> i don't like it being dark at 4:30 at night. >> we'll get to that but this is what's trending right now. mission impossible fallout taking home the top spot for the second week in a row paramount's latest action film took in $35 million in it's second weekend easily edging out the second place film disney's christopher robin. >> is this the 6th mission impossible >> yeah. he's an up and comer got a big career coming up. >> we'll see what happens. >> you're going to love this one, brian, how do you take ride

sharing back to the 20th century or earlier if you're in michigan you can flag down an amish uber. he has added horse pow topower sharing. the ride is affordable only $5 but you'll have to flag him down the old fashioned way without a cell phone i know you don't use uber. >> i use uber all the time the guy is like uber is great. i'm thinking how do you know >> he doesn't actually work for uber but you could say he gets good gas mileage >> clean up on aisle two >> daylight savings time might be coming to an end in europe permanently. it started with a movement in finland. parts of which are so far north that they spend part of the day in never ending night. european countries are required

to serve it with the goal of making travel and work across the globe seamless so now the proposal is before the eu it could take awhile to get a final decision >> they don't say a lot but when they do you have to listen every 30 years they speak up end daylight savings and then they go away. >> is that your activiticent >> i don't know. am i doing this one? now to the world of sport where is the boston red sox finished off the weekend in dramatic fashion against the hated new york yankees red sox left fielder andrew -- some guy nailed andrew, smacked a single up the middle with two on and two out that allowed the pinch runner to score. the sox win completing a four game sweep of the yankees. the hated yankees. coming up, the big global threats, iran sanctions trying

to trade tensions. an apparent assassination attempt in venezuela how can you protect your money for all the big global risks we'll find out later on. the big tech tumble in china the one stat not getting enough attention but don't worry, we're paying attention and we'll bring 'su.o yo it your morning rbi coming up. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

>> it's more like the squawk box team is getting ready. 18 minutes squawk box is on just to your left right behind that yellow thing with the things usb wealth management is cutting it's overweight position on global equities relative to high rate bonds that's a key from citing the worsening trade conflict arguing that tensions appear to have hit what they call a tipping point there's a 0% chance the conflict worsens further that note new this morning to ubs clients. joining us now is the economic policy analyst at the american enterprise institute a cnbc contributor things get worse, 60%. is that how you would frame it there's a 60% chance that the trade conflict/trade tussle or whatever it is gets worse? >> yeah. that's not an unreasonable forecast the president tweeting continually his great love of tariffs, which i think has undercut -- i don't know, there's like a secret theory

there's a secret theory that, in fact, president trump wants no tariffs, no subsidies, some sort of global perfect libertarian dream free trade zone. it doesn't seem like it to me. seems like he thinks tariffs are good and there's people in that administration that are prepared for these tariffs and more tariffs to be on for a long, long time as part of their sort of effort to change chinese economic policy. >> do you think that we'll be successful in changing chinese economic policy through tariffs? >> i don't i think they have a business model and that is using the state and state run enterprises to pick the emerging industries of the future. they have gone the other direction. they are not becoming a more free market economy, but a less free market economy and the u.s. needs a lot more there's things we should be

doing regarding china but very to focus on making ourselves more innovative. not saying we're going to reverse the chinese and globalization. >> we're seeing the chinese stock market drop considerably we're seeing the u.s. stock market go up do you think that's going to add fuel to the president's fire and say look it's working. what we're doing is work they're suffering, we're doing well, they're going to have to capitulate. >> so we decided to have this sort of stimulus program and sort of trying to balance them out at great cost what is the goal here? is the goal to sort of break the chinese economy? is the goal to have a different trading relationship i'm unclear still what that relationship looks like. again you have people in the trump administration who just run a smaller trade deficit. there's others that want to change how chinese does

business all of those things at some point begin to work across currents the president is going to have to decide what an acceptable end game looks like for him. >> the end game should be, according to many of the economic analysis that i have read over the years and you have put out is that the chinese currency needs to rise more so that there's more of a fair trading platform as far as the cost of good goes. the problem is the exact opposite is happening. the chinese currency either directed by the chinese government or the offshore currency is going down in some ways negating the impact of the tariffs do you think this trade fight is going to turn into a currency war? because we won't win that. >> no, we're not going to win that and listen, i mean, some peel are focused on the currency others are focused more on the inner workings of the chinese economy. i'm sure you have had plenty of guests talking about these technology issues. there's the perception

listen, chinese is not as wealthy a country. it's not as good an economy as the united states and if your goal is to keep pushing that economy and see what happens, i dpesz guess we can do that but i don't think that's going to be a good result in the long material. >> china is the kardashians of economic news cycle but at the same tile there's a lot of other stuff going on today the iran sanctions quitely going back into place. somebody or a group of somebody's tried to effectively kill the venezuelan president using a drone strike there are major things that are happening as well but china is sucking the news air out of the room. >> either that or the president tweeting about an athlete. those two things suck a lot of energy out of the room. >> that was the weirdest series of tweets. >> but listen, this iran thing, listen, we're trying to sort of, you know, get the band back together trying to unique, you know, unique with europe's take on china yet these iran sanctions are a huge sticking point because europe would like

to do business with iran and start working across currencies with each other and i'm not sure how that gets resolved in the end. >> we'll find out because the iran sanction story not going away in fact restarting today maybe like the nuclear program if what some of the hard liners there are saying is true thank you for joining us on worldwide exchange let's find out what is coming up on squawk box. i have a feeling iran will come up and venezuela will come up and joe kernan has come on what is happening on squawk box? >> i'm trying to figure out, is it officially the dog days do you know? >> i don't know what that means, my dog is miserable and hot and sweat at t sweaty he stinks. >> it derives apparently from the dog star sirius and it's position in the heavens. >> you cannot be serious. >> don't call me shirley that is what it's from and it's

like mid july through the end of august there's not cat days are there i don't think there's cat -- there's dog but not cat days how are you brian? >> good to see you back. >> it's good to see me back -- it's good for you to see me back that's about all i can -- yeah, it's good to be back tough, it's kind of a culture shock. do you take two weeks off? >> last time i took two weeks off i think was -- never. >> let me just tell you, though, you need it to get -- it took a week to decompress. >> it really does. my wife says that the first three days of vacation is a disaster because i don't know what to do, you finally start to calm down and then you start getting anxious about coming back into the fold. >> i think that's true. >> next week i'm getting two weeks off. >> that a boy. it's where we live geographically i was in a place where i don't know, they're not -- i was in

georgia. they're not following things as closely apparently. >> the golden isle. >> i want to talk about how the dawg is a dawgs are going to do. >> we have been talking about the first trillion dollar company and i'll tell you what is interesting she digit necessarily think it would be apple could have been microsoft or google or amazon, i mean, apple did do it but at the same time would anyone have predicted those other three companies would be within striking distance apple in the last five years hasn't moved as far as those they're all over 800 billion you know that. they're not very far from a trillion either. i don't know if anyone would have thought of that but we'll talk about all of these things

enterprise software. the next big trends in technology because she is smart. like you are. >> thank you good way to start the week welcome back, joe. squawk box coming up in ten minutes and on deck the three things that need to be on your radar as you kick off a new week we're not talking silicon valley your mniorng rbi random but interesting deals in china. stick around can be relentless. tremfya® is for adults with moderate to severe plaque psoriasis. i'm ready. with tremfya®, you can get clearer.

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gives skin the moisture it needs and keeps it there longer with lock-in moisture technology skin is petal smooth after all, a cleanser's just a cleanser unless it's olay. >> you know, all the headlines out there, you'd think sort of the economic and political world was ending and yet the dow jones industrial average is up nicely.

about 4% in the past month do you guys expect the stock market to continue to do well even though there's just craziness in the headlines every day? >> if you look within the markets, if you look within the news, there is a disconnect between what some of the headlines might suggest and at the same time good earnings power and actually fairly good economic data continuing to support that good earnings story and from that we can see markets continue to trundle a little bit higher from here august tends to be bumpier, there's a little less liquidity and trading activity that will amp amplify the news and markets will continue to grind. >> you didn't sound overly otolaryngology mystic. you said move higher does that mean most of the gains for the year are already made. >> you would have probably come up with most people saying high single digits or maybe a low

double digit year and we're on pace for that right now and that said if we're sitting here at the end of january, we had a great year in the first 25 days of the year. and then we gave it basically all back you know, i do have to recognize there's going to be some volatility but the bias is higher and i think that whether it's 5 three days in five, five days in -- we won't get five days in five but move higher and winds up being a goodyear when all is said and done. >> is the market going up despite the trade war or maybe because of it as capital flows from america maybe to china. >> that's an interesting point to unpack. the fact that the u.s. is positioned to be as aggressive in trying to negotiate the trade deals is predicated on the idea that they're strong enough to absorb some dislocation and some friction comes from within evaluations in the united states retreated from what i would say enthusiastic levels to closer to

average levels which again allows you to have a set up that's some what more positive for markets. you don't have sufficient high expectations does incremental capital leave the emerging markets and come looking for safe havens in the united states? certainly a possibility. >> finish this statement for us. the biggest risk to your client's money is -- >> it's probably liquidity the fact that people are going on vacation. that we continue to work through this idea of etf we work through the idea of there's nobody on the other side the down side is when people change their mind they change their mind in mass whether that's positive or negative and that rules in some more along the way but the bias is still higher. >> the old dog days of summer as joe said hope you have a great week thank you for joining us. >> thank you, brian. >> let's wrap it up with your morning rbi. the most random and interesting thing you'll hear all day. we talk about china but the shanghai down 18% year to date but look at that, the tech heavy

shenzen which is china's nasdaq in a rough way down 23% this year it's the worst perrmfoing major market this year random but interesting take care. wednesday august 8th,

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>> one of apple's biggest suppliers hit by a computer virus and venezuela's president surviving a bizarre assassination attempt that i'm sure you have seen the video of, conducted by drones. he's likely to use it to consolidate power. it's monday, august 6th, 2018. 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 live from the nasdaq market site joe is here. he's officially back and morgan brennan is here. this is a first time for you in for becky quick. >> it is. >> welcome. >> first time to the three hour ordeal that is squawk box. >> the ordeal. it's, you know, it's a descriptive word. >> party. >> descriptive word. >> just wait >> party is just starting. >> normally we don't have rootbeer sodas but. >> floats. root beer floats our cliff hanger tease right there. >> are you ready >> so ready. >> love