it is 5:00 a.m. in new york. here are your five big he headlines. stocks may rise, turkey tensions thawing a bit. china announcing plans overnight to jump start trade talks with america we'll have more on that developing story. uber out with numbers. the loss widened, but the company is growing and it is growing fast twitter's ceo saying his platform has been "weaponized. more of his comments to nbc. and retail on deck what to watch as big names like walmart, jcpenney and nordstrom get ready to report results.

it's thursday, august 16th "worldwide exchange" begins now. ♪ good morning, america. welcome from wherever in the world you may be watching. i'm brian sullivan here's the good news, the u.s. and china reportedly ready to sit down and talk trade in a new round of talks that news is helping drive stock futures higher a solid open for the dow futures, up 134 points as we say every morning, it is early, things can change, but we're not down 134 points after yesterday's 137-point decline. stock futures up across the board. that china news along with hope of cooling tensions with turkey also helping the european markets. the major indexes are higher as well with the exception of italy. italy, we have not talked a lot about italy. italy a turkey-like story.

political problems there debt issues there as well. do not be surprised if italy continues to be on the market's radar like it is today they also had a holiday in italy. so no trading. but a story to watch i think it's ae sscension day i italy. your number to watch today is china the shanghai index down again today. closing down 0.6%. hong kong down as well consider this, the shanghai index composed of the biggest companies in domestic china is at a four-year low four years of gains have been wiped out. let's get more on the asia trade as well as big news from china that is helping the u.s. market look good at this hour let's get now to our own nancy hungerford live in our singapore newsroom with more >> hi, brian i wish i could bring you better news it was still a down day for asian markets. i will say it could have been

worse. the news you've been talking about, that beijing is ready to send a trade delegation to washington, the fact their vice commerce minister is headed to washington did improve risk appetite here. we saw an improvement pairing back losses on the session the likes of the nikkei 225 at one point turned positive. couldn't hold for the close but it did close on the flat line. when it comes to the greater china markets, still in the red. some of this was down to improvement earlier in the session. that was helped by improvement in the chinese currency as well. keep an eye on the yuan. when it comes to the negative performance for the likes of the hang seng index, this, too, is a story about tencent. the big tech heavyweight has been a drag on hong kong and now spreading concerns for other gamers across asia other tech names today down 3%. once again, it's on a three-day basis, we're talking about a 12% loss after earnings overnight

disappointed brian? >> nancy hungerford. thank you very much. a deep tease, coming up at the end of the show, the morning rbi has to do with tencent's loss, and those numbers will get your eyes open. let's bring in dan verue, he says that the u.s. stock market is not only attractive, it's more attractive than a couple months ago and he has a chart to prove it >> yes >> it's early for charts, but i like this chart. your chart shows if you compare the s&p 500 with earnings expectations we're more attractive tell us why. >> everybody was concerned that the multiple on the s&p 500 was too high coming into the year. that there were better values in europe and emerging markets. that's what everybody was saying in january we just were entering the phase where you would see rapid revenue and earnings growth.

yes, part of the story was you could have the multiple on the s&p drop, but that didn't matter because earnings are growing so quickly now it doesn't matter. that's why the s&p is going higher >> if we can bring that chart back up. the chart shows the s&p 500 continues to rise. you know that. but the pe ratio has come down because earnings have gotten so big that the market has not grown as fast as earnings. i guess the question, people say the market grew nine months ago because the smart money bought into the earnings then that we're seeing now >> but if you think about it, that phase was actually multiple expansion on the s&p 500 in anticipation of policy changes and accelerated growth in the united states. what is missing is the global coordinated growth story that we thought we might have that asia

and europe would do better overall on a coordinated basis that has not happened. >> the shanghai market is at a four-year low. the stock market is not the economy here nor in china what kind of message is the chinese stock market sending >> there's a lot more pressure, more political pressure on the administration in china to do something. i think some of the news flow we're starting to hear today might be a residual of that. >> that's an excellent point we talk about trade and all these other issues which masks a bigger story, that the chinese economy, while still growing rapidly is slowing down. >> that's correct. >> their debt levels continue to go up. their currency is falling. we're talking about trade. but they have some structural issues >> turkey is a side show for what's really happening. >> usually turkey is the main course >> exactly that's an idiosyncratic -- they're a victim of their own

device devices. >> interest rates are going up in the united states it's just a matter of time before they go around the world that will coinside with better tax policy in other countries around the world to stimulate. that's a missing ingredient to get growth then you'll get that global coordinated growth story that we've been looking for i think there's a whole other lever to pull going out into 2019 >> do you believe in the u.s. market continuing to rise even if china continues to slow >> yes >> are we all connected or can we decouple? >> i don't think you need decoupling i think china has no choice. you take a worker from the farm and bring them to the city, you employ them there, you don't send them back to the farm because you don't have a job for

them they have to they have no choice. they cannot afford political instability. they cannot afford unhappy people because they have a lot of them over there >> dan, pleasure thanks to the top corporate story uber rolling out new numbers on the health of its business contessa brewer has more on uber's big numbers both ways >> right uber reporting a wider second quarter loss as it ramped up spending on food delivery, bike sharing, expansion in the middle east and india adjusted net losses grew to 6$69 million from 577 million in the first quarter. that figure doesn't include items like employee stock options and legal costs. net revenue or the amount uber keeps after paying drivers and taxes rose 51% to 2.27 billion gross bookings were up 41% that's a slight slowdown from growth in the first quarter. uber also had 7.3 billion in

cash on hand, up $1 billion fro the previous quarter because uber is private, these numbers are not reported in a government filing but uber provides them to investors on a regular basis. the ceo has been focusing on improving uber's finances and stemming losses ahead of an ipo he hopes to complete next year, but he has said he doesn't think uber needs to be profitable before going public. the company will spend more on faster growing businesses and that includes uber eats, which is growing at 200% per year. it's on track for $6 billion in annual revenues. then there's jump, the electric bike sharing service it bought earlier this year and is expanding to europe. look for broader growth in both of the those businesses. >> the thing about uber, every time you get into an uber -- not every time, but the majority of times you're effectively taking a private equity subsidized taxi ride they're losing money on all these rides.

they're losing billions. somebody is footing that bill. it's not the brewer family >> no. look at the brand image that they have been growing if they think they can make the money on uber eats or bike sharing -- >> when you get a bill from uber, the company is getting more than that that's just what you pay somebody is filling that hole to the tune of a few billion dollars a year >> interesting >> thank you >> okay. let's turn to another internet company twitter, jack dorsey talking everything from alex jones to election security in an interview with nbc nightly news. he said the way people use twitter today changed dramatically from when the platform first launched. >> we started with, you know, a real focus on one core fundamental human right of freedom of expression. but over time we have realized that that right has been weaponized

>> dorsey's comments coming after twitter suspended alex jones for urging followers to ready their battle rifles against the media. dorsey says he stands by that decision today's show brought to you by the number six. one stock up 6%, another down 6% a third taking a 6% stake in another. we'll break it down. and a retail check is on deck we'll bag you some deals not just in clothes but maybe in stocks incredible numbers around retail yave to hear to believe.

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good morning your stock futures and your money are looking good at this hour dow futures up 130 points. hope of a cooling and thawing in tensions with turkey and that the u.s. and china will sit down soon and have trade talks helping futures get up this morning. we lost about the same amount yesterday. maybe we'll get it back today. cisco systems reporting its third straight quarter of revenue growth it is on continued strong software sales earnings beating forecasts current quarter guidance also above analyst estimates. shares are up 6% in the premarket. chuck robbins will be on "squawk

on the street" today at 9:00 a.m. shares of netapp are down more than 6% the cloud services company reporting better than expected results on demand for flash story. they did give cautious guidance. starboard has taken a 6% stake in symantec. the "wall street journal" reports that that company is seeking a board seat and says symantec needs operational changes to improve margins let's turn to retail if you have not been paying attention in class, you have missed this ridiculous retail rally for some of wall street's best known retail names. i know all the attention is on the f.a.n.g. stocks, but look at this we have seen signet jewelers up 57%. the container store, up 55%. tillys up 50%. five below up 41%.

conn's, francesca's, tiffany and american eagle up about 20%. those stocks have made investors more money than many of the big cap technology stocks that we talk about so much here's the question, will that retail rally continue as more companies start to report their numbers? let's bring in dana telsey from telsey advisory group. i guess, dana, macy's stock. yesterday it was a horrible day for macy's stock it is still a stock that's nearly doubled over the past year should we worry that macy's was the canary in the retail coal mine >> i think macy's had its own unique situation the numbers reported for the quarter were solid the comparisons in the third and fourth quarter become more difficult. the key will be for all of these retail stocks we need to see the

continuation of good sales as we get to the fourth quarter. we are going into a solid back to school season now it feels better. there's trends that consumers are buying, particularly in apparel. i don't think the weakness in macy's that you had could be exposed to the whole group >> you know, the overall retail market is up 12% doubling the s&p this year. if we can bring our chart up again. some of these stocks are up 40%, 50%, 60% in 90 days. have they gotten ahead of themselves some of these were heavily shorted and had big losses last year >> exactly it's a case by case basis on these names. yes, they could have been heavily shorted. look where they're coming from they're depressed evaluations before so perhaps even though the past year they have shown some nice improvement, there could be more to go for some of them if they have growth initiatives it place. others, if numbers are not better than expected, if the guidance is not better than

expected, by the fourth quarter you will see a pull back in names. the strength of the consumer is there. you will need to see companies deliver not just as expected but better than expected guidance. >> yeah. not to toot as soon cnbc's own t last year we showed many of these were pricing at 0.1 times sales. did the market just overestimate the death of retail or has it gotten overly optimistic this year because the pricing difference and the valuation difference in a 12-month period is stunning. >> exactly that differential is stunning. overall the market overestimated that retail is dead. contrary to rumor, retail is not dead there's traffic. also omni channel and the combination of online and physical stores is what drives

sales. let's not forget the strength of the consumer there's wage increases we've been having wage increases, some of that is going into whether it's apparel, experiential retailing, whether it's the discounters consumers that are lower to moderate income have more money to spend this year than in the past >> okay. a bunch of retail earnings coming out which one do you think is the most telling >> i think one thing we'll watch for, watch nordstrom tonight after the close. that anniversary sale, people will want to gauge what the pulse was. walmart this morning is going to be telling in terms of what the same-store sales were, how traffic was. did they continue to see that pick up? those are some of the numbers that we'll want to see especially we'll want to see them this week >> all right dana telsey, appreciate you joining us live from new york city see you soon >> thank you still ahead, a big backlash. president trump revoking the security clearance of a former

top cia official we're live with those breaking details. listen up baseball fans out in los angeles, elon musk has a plan in mind for one of america's most famous stadiums we'll tell you what that is when "worldwide exchange" bores on after this

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president trump revoking the su security clearance of a former top cia official susan mcginness has more on this story. >> good morning. this is about former cia director john brennan. the white house says it is about protecting classified information. many believe it is payback. >> reporter: on wednesday president trump revoked the security clearance of former cia director john brennan, pointing to erratic behavior and criticism of the president >> mr. brennan has a history that calls into question i had objectivity and credibility. to make a series of unfounded and outrageous allegations, wild outbursts on the internet and television about this administration. >> reporter: others are warned that they are under review and their clearance could be yanked as well. a brennan fired back on twitter suggesting this is an effort by the president to suppress free speech and that americans should

be worried >> i've seen this type of behavior and actions on the part of foreign tyrants and despites and autocrats for many, many years during my cia and national security career. i never thought that i would see it here in the united states >> reporter: on capitol hill mixed reaction >> i think i called him a butthead and i meant it. i think he's given the national intelligence community a bad name >> this had an eerie memory of an enemy's list. >> reporter: the president provided no evidence that brennan improperly used his security clearance the director of national intelligence was not informed of this decision. brian? >> susan mcginness, thank you very much. >> all right let's check on the other

headlines including the latest on that absolutely devastating bridge collapse in genoa, italy. phillip? >> good morning. the search for survivors continues following that dramatic bridge collapse in genoa, italy at least 38 people were left dead there the interior minister declined to say how many people may still be trapped underneath that debris the investigation into the cause is now focusing on possible design flaws in the 51-year-old bridge as well as past maintenance. in raleigh, north carolina a frontier airlines flight made an emergency landing due to an unknown odor in the cabin. the flight from orlando to philadelphia was diverted after several passengers reported feeling ill. five were treated on the scene three were taken to the hospital the cause of that odor remains unknown. a frightening scene in connecticut where city officials say at least 76 people have fallen ill from suspected drug overdoses. first responders arrived at a park near yale university to

find dozens of people there screaming and dropping to the ground so far no one has died, but authorities believe this is linked to k 2 synthetic marijuana. they have made an arrest >> 70 people overdosing in the middle of a public park during the day near yale university >> yeah. weird, right >> very weird. scary, too thank you very much. all right. on deck, more on china's tech tumble stocks overseas feeling the heat, but could there be an upside and don't look now, we're 130 days away from christmas roll out the music one grocery chain is rolling out a new gift that will get shoppers feeling jolly and buzzed we'll be the first ones to talk rimas coming up next ow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up!

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wall street pointing to a higher open as turkey takes a back seat to trade. betting big in the permian, why yesterday's $9 billion deal may be a sign of things to come. and forget tweets or musk or saudi buyouts. one market pro is here to tell you what the real risk may be to tesla. it's one that not a lot of other people are talking about what it is as "worldwide exchange" rolls on

♪ contessa brewer got flashbacks from her wedding so badly right now with that song welcome back i'm brian sullivan we have an electric morning this morning. we have a lot to get to. first the top headlines. contessa brewer is back with those. >> sliding no thursday here's what's leading cnbc.com china says new trade talks with the u.s. will take place the chinese commerce ministry announced a delegation will travel to the united states later this month. uber reported a wider second quarter loss as it ramped up spending on food delivery, bike sharing and expansion in the middle east and india. dara khosrowshahi has been focusing on improving uber's finances ahead of an ipo he hopes to complete next year. he said he doesn't think uber needs to be profitable before going public. cisco reported its third

straight quarter of revenue growth on strong software sales. and don't miss chuck robbins on "squawk on the street" later this morning >> 9:00 eastern time hour, which is like 7:30 mountain time. we're halfway through the 5:00 a.m. hour, it's going to be a good morning, at least this looks that way now there's talk that china and the u.s. will sit down and engage in real substantive trade talks that has dow futures up nicely up 142 we could get back a little bit maybe more of what we lost yesterday. let's talk more about china. china's tech stocks have seen a massive tumble this week the question is this, is there upside still in the sector i don't know dom chu does >> there is upside but always down side as well. that's the reason why traders are focused closely on what's happening with the chinese

internet sector. it has been in a big decline from the highs of the year the reason why it's important is for a lot of people out there there's one stock in particular they want to focus on. that's alibaba it's considered the blue chip of the chinese internet by many and when it starts to fall and get into the area of what some call bear market territory, down 20% or more, it catches peoples attention. at one point it was in bear market territory alibaba, that blue chip of chinese internet, it's now down about 18% from the recent highs. those highs we saw earlier this year on the smartphone side of things, xiaomi down 22%. tencent, we talked about the idea that drove a lot of the action yesterday sales growth slowing also this idea that the government may be cracking down on games on the platform and then huya, which is a live

gaming streaming platform in china, that's off about half of its value. looking at these, it is important because with the fx side, this is one of the big large cap etfs for the chinese stocks traded in hong kong, you can see off by 4.3% for one year, it's lost about a third of its value in that span of time look at the kraneshares, that's off about a third. jd.com reports earnings this morning. will that be the catalyst that drives this value trade for these chinese internet stocks higher or does that solidify this down trend? i spoke yesterday on "trading nation" to dan niles i asked about these chinese internet stocks. he said the words falling knives

cutting fingers a lot during that segment it's something traders are probably grappling with now, if this is a safe point to step in. jd.com will be a big one, the next tea leaf for that whole picture on chinese internet. >> those numbers could cross at any time appreciate that. your morning rbi has to do with what dom talked about. those anybodies ary numbers ar diamondback energy yesterday making a bet on the permian. the company made two acquisitions in the permian in the past week. let's bring in mike kelly from seaport global securities. we know it's early if you're joining us this early from central time diamondback, here's what i understand, they're buying a lot of acreage, barrels a day going to 220,000 from 157,000. we already saw energen stock up

50% this year before the deal took place did they still get a good price for energen? >> they did. we think they were conservative with how they dialed in the synergies. we had diamondback trading at 6.6 times, energen they bought at 6.4 the combined company is 6.2 times it works on valuation. it's a huge boost to diamondbacks inventory we see them with 16 years of really tier one great drilling post this deal if there's any weaknesses in diamondbacks game prior to this deal, it was depth of inventory that solves this problem makes a ton of sense this will be the premiere group.

they will run circles around others othersment -- others so we like it. >> for years production was going up everybody's goal was to try to get organic production costs down we dues the break even point to 30, 40, 50, $60 per barrel they're saying we can't get the costs down like that, i need to get bigger, get scale and cut costs that way >> we're hearing more of that, too i think there's more upside associated with just pushing costs down industry has been magnificent on that front a deal reich thlike this the pea almost been a victim of its own success. it's a knife fight for services, for space, pipeline. you can consolidate out here and work costs down from that angle.

draw from the benefits of scale. >> more deals coming still good rock out there? >> yeah. it's interesting we all called for more m&a, the big deal before this was rsp and concho what we've been hearing is a lot of these private equity-backed guys are crying uncle as well. because the price they're getting for their crude is substantially lower. that's hurting their economics if they can pair up with a diamondback and say we'll take your stock now, we won't be greedy on the price, let's make something happen, we think there will be more on that front first. >> why do you have your eye on resolute energy? >> this is the obvious read through post this energen deal yesterday. they had the activists in there, icahn, corvex, the strategic

review from the board. the conclusion was let's hand the keys over to travis stice at diamondback. and this company has cheap valuation, so you could see the exact same playbook that you saw yesterday after this deal hit. >> we're watching everything in the space. mike kelly, appreciate you getting up early for us. time for the top trending stories. what will you be talking about today? contessa brewer knows. >> a breakfast alert a new report found traces of a weed killing chemical in some breakfast cereals. it's the same chemical that is found in round up. 45 products were tested. 31 of them had traces of this chemical at levels some

scientists consider too high for kids you give your kids cheerios, they get a side of roundup >> it's there, we're not denying it's there, it's just it's in such small doses, the government says it is okay. >> yeah. >> this is the same material that a government awarded 2$290 million to a man >> elon musk has what he thinks is a home run idea musk's boring company announced a deal to dig a tunnel to dodgers stadium from east hollywood. the traffic around the stadium is bad >> bad all the time. >> the 3.6-mile tunnel would take fansin passenger pods to

the ballpark that trip would take four minutes. the proposal has the early support from the dodgers, the l.a. mayor they called the idea exciting, innovative he also proposed a tram. >> that's cool that whole area from dodgers stadium. i grew up in los angeles dodgers stadium to hollywood is the hipster zone you have silver lake we'll see how the hipsters feel about this. >> going underground here's another idea. supermarket aldi is planning to add a little extra holiday cheer. >> cue the christmas music, please >> the chain will sell two special kinds of advent calendars. one will include 24 imported mini cheeses the other will have a new bottle of wine foreach day of the holiday season including reds, whites, rose and bubbly options. you can drink rose around the

holidays that's like an august drink to me there it is. apparently when they sold it in the uk, sold out >> with all love and affection to our british viewers out there, you know. they like their drink. >> broad s.w.a.t big paint brush. you painted a lot of people with that paint brush >> i painted some with that paint brush, and others i left out. to the sports world. we have some drama on the diamond again. another fight. this time between the braves and marlins. the marlins pitcher ejected because he beaned the braves batter the benches cleared. the guy was ejected. the braves red hot, probably going to be a braves/red sox world series went on to win the game 5-2. coming up, hitting the brakes on tesla. we are breaking down what might

be the biggest real threat to the carmaker it's not musk or twitter or the s.e.c. your guest will tell you what it is

you might have heard tesla has been dominating headlines for the last couple of weeks, now the s.e.c. is reportedly serving the company with a subpoena, it's thanks to elon musk's tweet about taking the company private and funding secured. while everybody is buzzing about musk, could there be another

threat to tesla that nobody is talking about? let's bring in nicholas colas. he has a good way of looking at things from a different angle. we talk about this, that, the balance sheet. is anybody buying electric cars? >> the short answer is they r but it's a small number, roughly 2 million vehicles worldwide a little bit less than half in china where there's mandates to buy them, and about 300,000 in the u.s. the growth has been great, but still a small part of the market overall. >> is it growing -- we know it's small. when you start from zero, the numbers will go up and look sizable. is the number tapering off any are electric cars going to remain a tiny little niche of the overall car market for the next decade? will they make a real impact >> they'll make an impact. you should see 30%, 40% growth

a lot of it is government mandat mandates the reason china is the biggest market, they mandate these things california is the biggest market in the states because of the same regulation and support. it will come down to governments pushing these vehicles through as much as it is consumer adoption >> that's the question now you have jaguar coming in with e-pace volvo coming out saying we're done with gasoline combustible engines. do you see this massive ramp up coming or will electric cars remain third cars for well-off people >> that is the big question. the bottom line on consumer adom shun is solving the range anxiety issue. getting these vehicles to 500 plus miles on a full charge. getting charging rates faster. all of this stuff is on the cusp

evs are a lot like smartphones and broadband and other technology moves that have happened in the past decade where you need more technology to create more volume and bring costs down it's a big virtual circle we know well in tech. it's in a big consumer durable good >> why aren't people talking about this basic fact of people buying a product around tesla? it's all about musk, tweets, saudi, model 3 production. are they selling more cars >> tesla is definitely selling more cars this year than last. but your point is spot on. what is the overall size of this market in five years time, ten years time we assume we know what this curve looks like because we've seen smartphones for the past decade this is a different product. it's more expensive than smartphones. people rely on it to get to work >> entry level electric cars are 50,000 bucks and up. they are a niche market for people who can afford that

nick colas, great stuff. let's find out what's coming up on a busy thursday on "squawk box. what's coming up, becky quick? >> you know we'll talk retail today. you were talking about those walmart earnings they hit at 7:00 a.m. eastern time we'll bring you the numbers and instand market reinstant market reaction we also will be talking about sports betting gary loveman will join us as our guest host for an hour today we will talk about what's happening not only in vegas but the broader issue of sports betting now that it's been legalized. we also will be talking healthcare with gary, he spent some time recently, several years, as a top executive at aetna. he has a lot of ideas about how you can reach out and take some things he learned in the gaming

industry and improve on healthcare results we'll be joined by bernard tyson, the head of kaiser permane permanente he will talk about the future of healthcare, some problems along the way. and we'll talk turkey and the economy with larry kudlow who will join us from the white house lawn to go over all the escalation we've seen and some trade talk not only with turkey but with china all of that coming up. >> if this government thing doesn't work out, that kudlow kid may have a thing on television >> noticed that, too still ahead, the turkey thaw may be in full swing but our next guest is tracking risks around the globe. and the morning rbi and the number from china you have to hear to believe.

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welcome back it might be a good thursday for your stock investments dow futures continue to gain strength on optimism that maybe turkey will thaw and we'll sit down on the negotiating table and start talks with china dow futures up 145 points. joining us is patrick armstrong who tweeted out a few minutes ago that i might ask you about the tease, the turkey, the trade, the tariffs, you have it exactly right. we're starting to see the futures come up a bit here will we see this resolve soon or will this drag on for years? >> turkey will not be resolved soon, but conclusions people are drawing are going overboard in some areas, and reasonable in other areas. turkey is less than 1% of global gdp. it's a small economy it doesn't have big contagion impacts. but it's creating a psyche for

emerging market investors where they realize the carry trades they put on, the growth they look for comes with risks. i would not be looking to add emerging markets now i would be putting risk on in developed markets that are caught up in the turkey trade. european industrials are weaker because of turkey. european banks have exposure to turkey's debt but not as much as the share prices have fallen treasuries in the united states, the economy in the u.s. will be very strong. people have put a bid in on treasuries now is a good time to get out of treasuries turkey is not as important with real contagion, but it still has the psychological impact on emerging market investors for the next few months. >> banks in spain have the greatest exposure to lira. turkey's currency denominated debt and other debt the. they have been sold off, particularly bbva.

has that selloff been overdone it sounds like you think it has. >> we are not buys the sping ba. we like the french banks i think maybe there's a 5% impact, worst case scenario the market is down 10%, the capital ratio of bnp is 11%. so it's a safe bank probably being hit too hard now i wouldn't chase the spanish banks yet. but the french banks are more of a sweet spot >> might have been a case of sell first, think later. i want to focus on one country specifically all the major markets today rose except for one, italy. the country has structural,

political problems, debt problems they continually change administrations. italy falling 1% today while everything else rose are you worried at all about italy? italy unlike turkey is a massive global economy eighth biggest in the world. >> it's a significant european economy. i don't think the tail risks will come to fruition. you have a party that's popular now in place that has got different agendas. the market doesn't like uncertainty. i think they'll come to a deal where they say the deficit will be x the deficit will be bigger than that the european union will let them get away with that for a while we're not buying italy just yet. the tail risk people are worried about probably won't come to fruition >> is it something we need to watch, keep it on the radar?

>> keep it on the radar. you don't need to chase it yet that will be an ongoing issue that will be a bit of a headwind for italy for a number of years. >> patrick armstrong joining us live from london, we are watching turkey and now italy as well thank you very much. >> thank you >> now to your morning rbi it follows the story dom chu brought you earlier in the show. shares of china's biggest internet company, tencent, lost about 1.2 trillion hong kong dollars worth of market value since january. that is equivalent to 175 billion u.s. dollars in market value gone this year put another way, tencent's loss this year would be the eighth biggest company in the nasdaq 100. it's the same size as our parent

company, comcast tencent lost a comcast value since january. i would like a penny for ten cent's investors thoughts. see you tomorrow "squawk box" is next

good morning china announcing plans to jump start trade talks with the united states. articles are becoming more frequent another one in the journal and in the "new york times" about president xi and some criticism. elsewhere, twitter ceo jack dorsey says his platform has been weaponized. more of his exclusive comments to nbc ahead. and big retail reports on the docket today one day after macy's 16% slide in the stock. we'll get you ready for the quarterly numbers from walmart

and jcpenney it's thursday, august 16, 2018 "squawk box" begins 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 andrew ross sorkin. let's look at the u.s. equity futures after a down day in the markets yesterday where the dow closed at its lowest level since july 23rd, you will see some green arrows this morning. dow indicated up by 145 points at this moment nasdaq up by 50. the nasdaq was the biggest loser yesterday, down by