. it's 5:00 a.m. here's your top five at 5:00 tech stocks continue on a tear the nasdaq on its longest winning street since march monster mentality, that's what china is calling the trump's plan to implement new tariffs. the inferno out west grows the biggest fire in california's history continues to burn. another major earthquake rocking indonesia overnight. and a big blow to uber and lyft as new york city looks to cap the ridesharing industry how will that work out we'll bring you history on this

thursday, august 9th as "worldwide exchange" begins now. ♪ good morning good afternoon, good evening, welcome from wherever in the world you are watching i'm brian sullivan also coming up, the new ceo of janice henderson will join us about his firm, the markets, brexit and a whole host of topics here's how your money and the global markets are setting up. the dow and nasdaq futures are flat tech is really what you want to watch. unless you're coming off vacation or getting out from a seven-day nap, the nasdaq is on a seven-day winning streak that's nearly the longest this year over the past month there are now eight nasdaq 100 stocks that are up more than 10% the rumors of f.a.n.g.'s demise have been greatly exaggerated. overnight in asia, china

making another move higher despite continued trade threats. the shanghai jumping another 2% nearly, call it 1.85%. south korea up slightly. the hang seng rising just under 1% the european markets are largely lower. let's get an eye on europe mostly in the red. spain up fractionally. here are two markets that we normally don't talk about that you need to have on your radar right now. they are russia and turkey both of them nearly in freefall lately we'll show you the etfs. the russian rsx down nearly 8% in the last month and watch turkey i know you heard about their economy. turkey's currency is nearly on the verge of collapse. so are stocks. the tur etf is down more than 40%. it's down 71% from its post-financial crisis high

this is yesterday's trade, that's a brutal chart. outside of stocks, here's a look at commodities and currencies oil is back below 67 despite new concerns about violence and upheaval in iran halema croft will join us on set in a few minutes with more on what's going on there. and the bitcoin pain continues bitcoin up fractionally on coin base just above 6300 for bitcoin. let's talk more about the global markets with a man who has more than 3$370 billion in assets under management. joining us now is dick whyle, named ceo of janice handerson. appreciate you joining us. >> it's a pleasure great to be with you good morning >> okay. here's the question, you are running a big firm

now you're the ceo, you're looking at brexit on the horizon. you're a london-based company. how do you plan for that kind of unknown? what kind of strategic changes and evolution do you have to make given that brexit is a cloud hanging over the nation? >> right from london the news is the fall in the currency, in the sterling i think it's about 129 to the dollar last i looked so we had a major repricing of the pound based on fears that we'll have a real dislocation in the short-term around brexit the process was always going to be messy it was set up this way that the negotiations would be largely in the public brinksmanship would be the order of the day in a way none of us should be surprised to see it play out in this path. it's a hard path so i think it's still a majority

likelihood that they'll find a way to kick the can down the road and delay but all of us are worried about policy errors. as you see in the price of sterling, there are an awful lot of people worried about that to us that looks like a buying opportunity because we believe rationality will prevail and you'll get a delay and a more reasonable progress at the end of the day but it will look ugly for a while with brinksmanship so there will be volatiliity associated with that >> as a business do you look to frankfurt, germany real estate will you physically move people? >> we'll move a small number of people to luxembourg in response to the needs of brexit we'll have to move a small number of people to dublin in response to regulators needs there. those two bases which be adequate for us. it won't be a huge move.

it won't involve denver, but some of the work that's currently being done in london will have to migrate to luxembourg and dublin. >> you're looking at a world right now that for the first time in multi decades is looking at the real let of an all-out trade war. in your markets experience how do you help the firm navigate through this uncertainty >> i think the firm is well positioned to navigate through this we have great experts tracking the progress of the trade flows. this morning the estimate was it takes a tenth or two off the growth in the u.s., maybe a half point off growth in china. that affects how we think about the investment opportunities in stocks and bonds but at the moment we think it's something to have an eye on, but not yet a crisis i guess the report you gave this

morning about china's stock market being up suggests they don't think it's a terrible crisis either. it has the potential to get much worse. we're well positioned as deep researchers to follow the progress of this thing and even on occasion get in front of it certainly the path of international trade is a key feature we think about when we price our investments. in the end it gives us an opportunity to be great, active investors. that's all we can ask for. >> you are also an operating entity on your earnings call you said performance of the firm is not where you want it to be. how do you improve performance for your shareholders? >> that's fair it's not where we want it to be. it's only been a year since the merger we said it would take three to get the full benefit of what

we're trying to accomplish we're ahead of schedule but also not where we want to be. in terms of how do we deliver in the future, the basic package is well known we have to deliver excellent risk adjusted returns, wrap that in knowledge shared, which is a relationship which transmits knowledge to clients and allows them to better manage in their own jobs, and to be feeling empowered as a partner with us that's the plan. >> i want to shift the discussion if we can to bill gross. obviously a friend of this network. somebody that we have done stuff together with. his performance according to numerous reports has not been very good this year. there's been talk of outflows as well what's the status of bill gross? are you sticking by him? >> yeah. i am sticking by him bill is one of the great investors of our lifetime. if you look across his 40-year career, there's been moments

when he experienced under-performan under-performance. those moments are the anomalies. he's going through one of those moments now. nobody is less happy about his i investment performance than he is but he's still one of the great investors of our lifetime. >> what has he said about what he's looking to do and his strategy going forward >> he and i talked about it a number of times. he's said he's made some bad bets he believes still in his basic presumption that inflation is not going to get out of control and you'll have convergence of bond rates between europe and the u.s., and so he has not lost faith in his fundamental view. but he's been wrong and wrong badly in the short-term. he's accountable and we're accountable for that you know, he's still a great investor, and i'm sure he'll come through it. thank you for joining us live from london.

you haven't gotten the british accent yet when will that happen? >> i think if i tried to fake that, i would be in more trouble. it's wonderful being here. i've learned a lot of stuff, just not the accent. >> all right thank you very much. appreciate it. see you soon let's switch gears now back to trade china accusing the trump administration of a "mobster mentality" as the u.s. plans more tariffs eunice yoon is live in beijing with more. >> thank you very much that same state media editorial said if the u.s. wants to play hard ball beijing will, too. already beijing has matched the u.s.'s 25% tariffs on $16 billion worth of goods this time u.s. goods those tariffs will go into effect around the same time that the u.s. implements theirs so 12:01 on august 23rd. the new list has been expanded

from 114 originally, these items, to 333. the new items include trucks, vehicle engines, bikes, as well as farm equipment. china's commerce ministry criticized the u.s. calling the move unreasonable and said that the u.s. is showing that it puts domestic law above international law. china's critics would find that comment ironic given that beijing's trading partners, many of them, and foreign firms have long been arguing that china protects its markets and also that it doesn't apply its rules and regulations in an even-handed way. instead it favors chinese firms. so, when we look at the state media in the past couple of days, what was also interesting is that it appears that the state media is trying to prepare the public for a long haul fight. all the state papers were running a 4,000 word commentary called the declaration, where they said that the chinese people have endured crises in

the past but are resilient, and their effort to pursue prosperity is unstoppable. brian? >> how is this playing out in chinese state television >> well, it's interesting. state tv today was arguing that china has many means to counter u.s. tariffs it did not detail what those means are. we've been getting hints in the state press as to what china's next steps might be. for example, china's state paper had said china prepared fully for a soybean standoff, saying china has enough soybeans in storage and also will not seek u.s. imports, but will buy from other sources and curb demand. there's been talk about china finding a new way and different technologies for a low-protein technology for animal feed

it also said that u.s. tourism will likely take a hit in the next couple of months, there's a huge holiday here in october, it's a week-long holiday. chinese spend a lot of money the press has been quoting the chinese consulate in san francisco which has been issuing travel warnings for san francisco, las vegas, as well as seattle. brian? >> eunice yoon, thank you very much by the way, some of those chinese tariffs now reportedly could be extended to liquefied natural gas. lng is expect ed ed to be one oh greatest growths for this country. there are six under construction, five more in project phase, 11 more being studied. those are hundreds of thousands of construction jobs going forward. cheniere energy is lng, the

biggest publicly traded exporter of lng on a stand-alone basis. watch that stock landon dowdy has the other big stories. >> adidas shares are soaring after it reported strong earnings sales were boosted by increases in north america and china adidas is backing its 2018 guidance and the ceo says the company remains on track to meet its long-term targets until 2020 also watch yelp. its latest earnings boat forecast thanks to a 21% rise in ad revenue they are raising their profit outlook for the year >> and roku swung to a slight profit in the second quarter as revenue rose 57% roku added 22 million active accounts, and viewers spent more time watching content. back over to you >> thank you very much we are just getting started

on a thursday. up next, two of the biggest oil producers locked in a fight. what the rift between canada and saudi arabia means for you and the market and later on, uber's big blow to the big apple. new york city cracking down on ride hail iing activities more "worldwide exchange" rolls on my digestive system used to make me feel sluggish

but now, i take metamucil every day. it traps and removes the waste that weighs me down, so i feel lighter. try metamucil, and begin to feel what lighter feels like.

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.

. welcome back here's a check on oil. oil is not moving a lot right now. despite everything else, oil has not been able to get out of its own way. wti traded crude at 67 brent crude at 772.50 have you been following this bizarre battle between canada and saudi arabia that is escalated over the last couple of days? if not, you should be. let's bring in helima croft. this is a weird story. canada demanded the release of an activist who is also a canadian citizen saudi arabia said don't meddle in our affairs, expelled the ambassador and told their investment found to sell all canadian assets no matter the price. >> i think it shows saudi arabia does not want external criticism of how they manage internal

affairs. a number of activists have been detained over the summer, but this comes at a particularly sensitive moment what were the triggers words were when the canadian foreign minister demanded her immediate release and said she was bravely concerned. i think the saudi reaction has been swift, ferocious. not only sell the assets, but thousands of saudi students in canada ordered home. you had the ambassador expelled. trade ties severed so we're watching this. >> saudi arabia, if they decide to go through with this, this could be talk, they wouldn't be the only sellers u.s. firms -- shell getting out of canada, u.s. terms getting out of canada. they're a major exporter to the united states. >> i think from the standpoint of saudi/canada trade ties, it's not huge saudi can make an example of canada because it's not an important trading partner.

>> my point is maybe like tesla, the canadian oil producers could use a little saudi money it's expensive to produce oil there. >> from the standpoint of canada, i think they can weather this storm the interesting question, if you flip it, they're seeking to court foreign investment this would make foreign invests more jittery about saudi at a critical juncture. both saudi and canada should have a diplomatic offer in this dispute. >> in iran, death to the dictator is being chanted. is it fake news to say the threat of real upheaval in iran is the greatest in a decade? >> we're seeing protests breaking out all over iran we had protests in 2009 after the elections as well where hundreds of thousands of people were in the streets. the key question is whether the security forces remain loyal to the regime, do they continue to

crush demonstrators? do you see momentum building for a more serious challenge i think this will come to a head in november when the oil sanctions kick in and iran's revenue starts to dry up >> is iran going to be like an iraq situation in that no matter what happens -- what iraq was able to do surprisingly is no matter what else was going on, they kept increasing oil it protected those fields at all costs. is iran going to keep production up even with all this? >> there's no indication that the oil workers are going on strike in iran if they can sell the barrels anywhere is the key question the trump administration has been clear they want to take iran out of the market >> do you think they'll sell those barrels? will china ignore president trump's wishes >> i think china will ignore tru trump's wishes, but if europe

complies, japan complies, south korea complies, india cuts, that's a significant number of barrels off the market >> china is threatening tariffs on lng, which is odd, it would be a tariff -- they need the natural gas more than we need them as a market that's a huge offshoot of the shale boom so now you have the chinese effectively trying to go after the greatest economic story in the united states right now. >> of course you think that's by coincidence? >> is it a random accident they threw a dart and hit shale? >> no. it's one of the big success stories for the u.s. economy >> wow i feel like -- not to belittle any of this i feel like it's the world cup of tariffs saudi versus canada. china versus the united states iran versus everybody. >> this is really -- that's what the iranians are saying. this is a tariff on iran >> helima croft, we appreciate

you getting up so early for us thank you. >> thank you still ahead, two major developing stories california remains in crisis up north. wildfires there continue to spread. and another earthquake rocking indonesia overnight. the latest on both of these natural disaster stories coming up as we head out, let's look at some of the dow winners and losers in the premarket this morning. you're watching "worldwide exchange."

(vo) ovewhelming air fresheners can send you running. so try febreze one. with no aerosols and no heavy perfumes. so you can spray and stay.

febreze one. welcome back let's check your other top headlines outside the world of money and business phillip mena has those >> good morning. another powerful earthquake in indonesia is threatening an area already devastated by a massive quake from earlier this week early this morning a 6.2 magnitude quake rattled the area collapsing several buildings that area is still recovering from last sunday's tremor that killed 227 people. and a man is in custody for sparking a wide fire in california forest gordon clark is charged with arson police believe he started the massive holy fire that is raging

through the cleveland national forest an incredible sight in switzerland. local media reporting that strong rain storms triggered that mudslide. the river of mud flowed from the swiss alps before striking villages the mud is seen overtaking streets. it hit some homes and vehicles, too. thankfully no injuries to tell you about. >> yeah. incredible video the woman just standing there. i guess a stoic swiss, calm as the mud went by. >> impressive. all right. still to come, risks to the rally. wall street within a stone's throw of all-time highs on nearly every major index so what are the biggest risks out there now? are there risks out there now? we'll talk more about at athnd more as "worldwide exchange" rolls on

it is 5:30 at cnbc global headquarters score one for adidas that stock is soaring following an earnings beat we'll run through those numbers. the big apple dealing a big blow to uber and bliflyft. and mcgriddles for life. the dream that could be your reality. we'll explain as "worldwide exchange" rolls on

all right. wouldn't be a good morning unless we had some black keys at some point during the day. there's a lot to get to today. let's check the top headlines. landon dowdy is back with the summary. >> here's what's leading cnbc.com a new development in the chinese trade war. chinese state media accusing the u.s. of a mobster mentality in its move to implement new tariffs on chinese goods and it says beijing has the means to fight back. tesla will most likely face s.e.c. investigation this after elon musk's tweet about taking the company private. and shares of adidas are soaring after reporting strong second quarter earnings. sales were boosted in north america and china. they're backing their 2018

guidance and the ceo says they're on track to meet long-term targets until 2020 >> how do you manage risk in the market now with the trade fights. you're seeing what's going on in iran you might be thinking i made money. how can i de-risk my portfolio let's find out with jeff kilburg. you got to sleep in an extra hour >> i did >> how does that feel? >> it feels like noon now. >> let's go for a run. let's talk about this. here's what i don't understand, all this stuff going on and the vix is 11.5? >> under 11 now. 10.8 today >> why is the vix signaling there's no risk? >> i think it's the option premium. that's what the vix measures we're seeing complacency, but at the end of the day, the seven-day move in the nasdaq is getting investors lulled into a view that everything will be

okay it's a stark contrast, the next thing is an eye-opening component. it's time to assess your portfolio and understand where risk mitigation needs to be implemented. >> i don't know if the vix is a great reflection of fear how much do you think the vix is getting it right or wrong? >> the vix doesn't get it right or wrong, it measures the amount -- >> i knew you would say that >> it measures the amount people are willing to pay we will see volatility in volatility, but right now the fact that people are not concerned about the trade tariffs. we talked about it >> how about this, the vix is at or near a ten-year low is market risk at or near a ten-year low >> no. i think it's a stark contrast. why that is, it's suppression in the vix or the suppression in option premiums due to the fact

that central bankers are in the cycle that, yes, we're moving towards kuwaquantitative tighte. >> look at that chart. it keeps going down. let's talk about the markets we have some viewers who may have bought some f.a.n.g. names. they made money. they're holding on they want to manage that risk. we've seen what happened with facebook and netflix how can you continue to own stocks but also maybe protect yourself on the down side? >> we use a lot of option overlays so mitigate risk. if that's a more sophisticated strategy, the simplistic approach is to rebalance what does that mean? that means amazon, up over 60% this year, microsoft, these double digit winners, bring them back to the equal weight >> how do we do that >> we are able to trim that by selling to the appropriate weight

we have 40 stocks that are 2.5% weighting. so you bring that back in line, you trim the profits, you're selling your winners and buying your losers. you do that now before a pullback that provides downside protection >> do we sell all of our f.a.n.g. holdings or some? >> you trim to the allocation where they started then you also at the same time look at some of those sectors, look at the laggards i like financials. iyg, and iyj, those are the laggards there are some dogs in there the 3m, cat, ge, those names should see a bounce as we normalize. at some point in time this f.a.n.g. stock will become the cash machine of the market you will see more follow through. >> so the killer advice, as you might say for viewers out there, is to rebalance a bit, technology, iyg, iyj are good long buys now. >> yes

a lot of people have been shunning industrials and financials if we see interest rates, we'll see how the fed gets emboldened by the inflation data today and tomorrow if they make that december rate hike, we will see profit centers and banks go up. >> all right jeff, thank you very much. new york city just dealt a big blow to uber and lyft. arjun kharpal has the details. you guys in london have had your own fights with the ride hailing services this move by the city council not taking anybody by surprise you have any thoughts? and what do you think will happen in new york city? >> i remember talking to you about london, i said it would be interesting to see if other cities follow suit i think that's what we're seeing here the new york city council put a cap on the number of for-hire vehicles that can be put on the streets and licensed that's going to hit uber and

lyft because they can't bring many new drivers on to the street that cap is expected to last for a year there's a couple of exceptions they will license new cars if they're wheelchair accessible or serving an area that's underserved by transport those are the exceptions was we're seeing is this global backlash against ride hailing. it's not necessarily saying this is a bad industry, it's saying we don't know how to regulate it yet. the new york city council is arguing that there's too much congestion on the road perhaps drivers are not getting paid enough. uber and lyft are arguing this could make it more difficult to find rides, longer wait times. more expensive rides for people in lower income neighborhoods. there's a general sense that regulators are trying to understand this industry in london, uber worked with the regulators over a number of months i think that's what will happen here in new york over the next year uber and lyft will figure out what's to come next for

regulation in this industry. >> if viewers and listeners are not familiar with the news, the city council voting to cap the number of licenses for uber and lyft some city council people used the term pause it's to prop up the taxi industry any indication you're seeing that the taxi drivers in london, who study for years and invest life savings in learning to be a black cab driver in london, are they benefiting from that? >> the moment no uber has managed to get another license. the taxi industry is still up in arms about this. they argue that uber is not playing by the rules the working conditions for drivers are poor you're seeing a huge technological change when a lot of these drivers trained, there were no google maps or satellite navigation that's allowed uber and lyft to prevail in this market

everybody has a smartphone now and that's what they're taking advantage of they're still up in arms here in london and other areas as well >> it should be noted that the mta of new york city lost revenue. i wonder if money has anything to do with this? nah. all right. time for the other top trending stories. landon dowdy, what is trending >> we've got some major changes coming to the academy awards this year the telecast will be a strict three hours this will also be a new award category, outstanding achievement in popular film. ratings for last year's oscars were down 20%. limit it to three hours? it's nice. it goes on and on and on >> so about 90 minutes too long. it's the millennial generation short attention spans. airbnb's latest marketing

scheme is hitting a wall china is putting the kibosh on airbnb's users to book a stay on the great wall of china. china's cultural commission says it is not in line with cultural plans. airbnb says they are working on a cultural experience there. >> to me, booking a room outside is camping is this the glamping version you know what glamping is? >> i know. glamorous camping. that's about the only camping i do not on the great wall. how would you like free mcdonald's for life? that could be a reality for one lucky person mcdonald's is running a sweepstakes for a gold card, which would entitle you for two

free meals a week for 50 years >> your favorite item now is what >> french fries. >> you went with the easy one. >> the mcmuffin. >> mcgriddle >> thank you very much still ahead, a double dose of deal news to jump start your thursday and to russia without love mr. on what is sending the russian stock market tumbling. [music playing] (vo) progress is in the pursuit. audi will cover your first month's lease payment on select models during summer of audi sales event.

>> your individual stock stories now include rite-aid shares are lower after albertson's terminated their merger deal. last month proxy advisory firm iss recommended that rite-aid shareholders vote against the merger as it wouldn't give them fair ownership of the combined company. dun & bradstreet struck a deal to go private the firm will be bought for 5 8 $5.38 billion in cash. if you own dun & bradstreet, that's about an 18% premium to wednesday's closing price. you will make some money today and tronc is considering selling it's newspaper business to an unnamed equity firm. the offer would value the business at up to 7$700 million

or $19 to $20 a share. tronc shares off about 0.8%. 20 bucks a share probably sounds good at tronc shareholders the united states set to impose new sanctions on russia this comes as the united states accused russia of violating international law. those sanctions are expected to go into effect around august 22nd most other sanctions have already kicked in against iran with oil set to go into place in november let's bring in daniel tannenbaum from pwc, a man extremely busy now. not only do we have the tariff fight with china and europe, we have iran sanctions, russia sanctions, more iran sanctions set to go in place when you throw that into the blender, how does that come out looking? >> i think multinational

companies are tired of what's going on also last week sanctions were levied against two turkish government ministers >> that stock market down 40%. >> so you have different sanctions regimes that are enforced, being levied the russian announcement yesterday was different. they didn't actually say what they would do. they talked about a reduction sending sensitive technology equipment to russia, which was largely eliminated during the obama administration then after 90 days they'll implement other sanctions. the iran one is different because we went back to a unilateral package, which have never been sushg social securcc forcing companies to choose between u.s. laws or eu laws >> ceos are up early, their companies do business around the world. how do they figure out which

legal regime to listen to? >> historically you picked where you would get hurt the most. the laws around the world that prevented compliance with u.s. sanctions for years but have never been enforced. over the last year the u.s. had one enforcement action at federal level, historically there would be 10, 15. these could be billion dollar enforcement actions. the eu rhetoric is significant about what they'll do. so it's almost a race to see who can levee an action for violation. >> it's early in the united states it's complicated, but this is important. there are new rules to your point coming into effect in the eu which, as i understand them, effectively make it illegal to comply with both u.s. and european sanctions, but what if they conflict with each other? if you're running a business in

america and europe, you're going to be doing something effectively illegal on one side or the other almost automatically now. >> it's impossible to comply >> heads i win, tails you lose >> it's impossible to comply with both. the eu had that complexity if you're a global company, you cannot be on the right side. >> what do you do? if i have a viewer, a ceo of a company who does business in europe and the united states, you're effectively breaking the law no matter what you do come october. >> you have to go off historical precedent. there's been laws in different countries that have been enforced and laws that haven't you need to focus on where you can feel the most pain the u.s. levied $20 billion of sanctions enforcement actions in the last ten years

the e ushgu levied a handful but enforcement in the u.s. is extremely low lately that's universal right now so this does make it more complicated because the eu member statements are talking about enforcement. >> between tariffs and sanctions, i imagine you guys are busy appreciate you taking time out of your schedule for us. let's find out what's coming up on "squawk box. joe kernen, never sanctioned joining us now joe? >> we'll have a guy on talking about china. kle china is getting interesting we have not seen reflection in the averages yet there's pain that we're seeing it's interesting how they will respond. they can't match us dollar for dollar, yuan for yuan on exports and imports, because we import more than we export to them. it will be interesting

they can try other stuff, but there's pain that emboldens trump, god knows what that means. what i do think larry is telling him at this point? >> free markets, capitalism is the best path to prosper pi. something to that effect >> the guy yesterday said we may have just started the trade war with china but they've been having a trade war with us for the last 25 years. this is just our first response. did we ever figure out the dogs, dog days of august we're there i think, right it was the star -- >> yeah. >> how do the dogs of the dow perform during the dog days of august have you thought about that? >> no but i think their bark is worse than their bite. >> we'll do a lot of these >> i think stocks have been

going through the "woof. >> you know how i was talking about how the s&p would perform today? the s&p is muted because as trade war fears -- every day it's the same thing. i don't know what to say i'm not sure it was today's. could have been last week. the pga starts today you're a horrible golfer >> it's true >> that's what i heard from dom. >> good anchor we're back after this. can be relentless.

tremfya® is for adults with moderate to severe plaque psoriasis. i'm ready. with tremfya®, you can get clearer. and stay clearer. in fact, most patients who saw 90% clearer skin at 28 weeks stayed clearer through 48 weeks. tremfya® works better than humira®

at providing clearer skin, and more patients were symptom free with tremfya®. tremfya® may lower your ability to fight infections and may increase your risk of infections. before treatment, your doctor should check you for infections and tuberculosis. tell your doctor if you have an infection or have symptoms such as: fever, sweats, chills, muscle aches or cough. before starting tremfya® tell your doctor if you plan to or have recently received a vaccine. ask your doctor about tremfya®. tremfya®. because you deserve to stay clearer. janssen wants to help you explore cost support options. the markets are largely brushing off rising trade tensions and are focused on the positive earnings season but for how long can this really last let's bring in the chief economist at steifel you tweeted out or put in notes, it said earnings are greater

than tariffs or trade. why do you say that? >> at least for right now. it does seem like the market is focusing on this positive stream of earnings. pushing to the side some of the concerns or the concerns that we should be seeing in the marketplace regarding this ongoing trade war. right now i think the market is very much cherry picking, looking for positive indications that this recovery will be maintained but i think the market is very much ignoring these risks that we do face, downside risks for the economy if we continue down this pathway to an outrite trgh trade war. >> what are the odds that we go to an all-out trade war? >> i don't know if we'll get to that point but i think we'll continue to see this administration engage in back and forth retaliatory penalties, which will add up and have a cumulative impact for the u.s. economy thus fort penalties imposed are

likely to shave off a couple tenths of a percentage point, but we don't want to continue down this pathway. we have an economy bouncing around 2.5% growth yes, we did see an above-trend activity level in the second quarter, but we are still at that pace, so we can't be giving away tenths of a percentage points >> are we in peak earnings >> i think we are. from here on i think we'll see a slowdown in momentum i think the u.s. economy has been reliant on temporary factors, particularly looking at the consumer sector, looking at drawing down savings, ramping up credit we have not seen the meaningful gains in income that are needed. as a consumer based economy, if we don't have a happy, healthy consumer it will be difficult to maintain even this 2% growth, which will translate into maybe less optimistic outlooks

>> are we at peak markets? >> i think that's not the same thing. for risk assets we could continue to see a bit of a run up as we see companies buying back stock, reducing debt, but longer term, if we don't see fundamentals improve to justify the levels we are seeing in the market, i would expect a sizable correction >> lindsay, have a good time in nashville. >> thank you very much your morning rbi focused on electric cars and taxis. did you know the first manhattan taxis were electric? in the early 1900s there were electric cars roaming new york, the company that ran them collapsed a few years later. so to get around, new yorkers turned back to horses. now we have the restriction on uber and lyft in new york city if the taxi industry cannot pick up that extra slack, get your

shovels ready. random but hopefully interesting. "squawk box" is next your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.

the s.e.c. raising the red flag regulators probing elon musk's tweets as the tesla ceo floats the idea of taking his company public. rite-aid and albertson's calling off their merger ahmed investor opposition. and new york is one step closer to becoming the first u.s. city to cap ride hailing services like uber and lyft. it's thursday, august the, 2018. "squawk box" begins right now. ♪

>> live from new york where business never sleeps, this is "squawk box." good morning welcome to "squawk box." i'm andrew ross sorkin along with joe kernen. michelle caruso-cabrera is here with us today hanging out. becky is off look at u.s. equity futures this morning. let's try to show you what's going on dow jones looks like it would open off 7 points. the nasdaq up 0.21 points. yields are hovering under 3% 2.959. also show you what's happening overnight in asia. shanghai composite up 1.85%. hang seng up nearly 1% nikkei off marginally. european equities right no