it is 5:00 a.m keep spending money this summer, because the stock market rally rolls on more records may be hit today. constructive conversations that's what canadian officials are saying about trade talks with america fast forward to the november elections. we have the results of key primaries in florida and arizona. and a smoking hot stock. the first ever nasdaq-listed company hitting sky levels. and a license to ipo, aston martin gearing up for more than a $6 billion listing it's august 29th "worldwide exchange" begins right now.

♪ good morning welcome from wherever in the world you may be watching. i'm brian sullivan so glad you're starting your day with us or ending it if you want record highs for stocks again today, you will probably get them. dow futures are up again one thing we've seen every day is that the markets start cool and then tend to gain steam throughout the day thinly traded fur fut futures r at this hour any high is a new high for the index in the united states we're on pace for eight up weeks in the past nine the bond markets are staying low. coming up in a few minutes a guest will explain why bonds are

caught in a tug of war between the united states and what's happening around the world. overnight in asia, asian markets were mixed japan up china down similar story in europe. moves small across the continent. you think we go on vacation in august, the europeans effectively nonexistent the last couple of weeks. these moves are fractional speaking of europe, the one number that you need to be watching today, and maybe every day going forward in the near-term. that's the italian ten-year government bond, yielding 3.15%. italy's banking system continues to draw concern. nobody now is saying this is a greece-like issue. however the fact that their bonds are trading like this -- keep in mind that most sovereign debt in europe is trading under 1% italy above 3% this is just something else to put on your global macro radar

your one number today. let's talk about that, about trade, and this market run with us is ken cayman. you have an interesting view on google and others. start with this are you or your clients surprised by the strength of this market run lately we could be on pace for eight weeks out of nine. >> what people read about how the world will come to an end because the market is at the longest bull one they've ever had, as if there's a magic signal that said you broke the record, now go down. people are thrilled when they see profits. the market is clawing back from the downturn we saw in february, and the break outis to tout is upside, not the down side. that's a bullish sign. with corporate earnings going the way they are, the economy, now trade talks, you know, those

looking like they'll amount to something, i think it's a friendly market environment, certainly through here to the end of the year. >> do you find your clients are waiting for that -- for years it was like you guys at cnbc, you are just cheerleaders. now it's like why you are do doomsayers are your clients believing in the market >> when you sit and try to make prognostications about the forward, there's a tendency to say what's happening now may not continue when it comes down to it, the service your show provides and networks like this, it gives perspective that we all tend to think whatever environment we're in at the moment is the one that will continue. real good financial planning requires that you think for other environments that you're in >> we have the three "t"s, trump, trade and turkey.

i know you're working on a book right now. you are covering this i believe. yesterday the president went after google he has gone after amazon we talk about the f.a.n.g. stocks the president has now gone after two of the most important five stocks in the united states if not the world. is that a red flag for the overall markets? >> that's a broad topic. first off, i think that the whole market being led by these handful of securities is starting to be -- the securities are being viewed differently we saw that with facebook, the privacy thing. the technology that was always the best of the best, the world is getting better, we're starting to see the underbelly of that. i'm not sure he went after it, he went after it from a political sense. the thing we have to be concerned about is we're all getting curated news and information on anything we're searching. the whole industry is search optimization we're all being fed somewhat the

same type of information whether you're looking to find what kind of snow shovel to buy or who to vote for in an election. that's where the danger is the whole market is price discovery. you do your homework, i do my homework what happens if we all get the information from the same source, we're not coming to different conclusions, with the growth of etfs and the herd mentality of trading we're buying the same things that's where the danger comes in if we get an about-face, the stocks zooming will be the ones hurt >> if the market or retail investors decide they don't want to buy google anymore because they made a lot of money on it now the president is going after it they make the same call on facebook or amazon, can the markets rise if the f.a.n.g. stocks do not? >> i don't know if the five stocks that haven s thas that rh market will continue to rise,

but now is a great time to look at the future. growth stocks have been the place to be for the last couple of years now is the time for investors to look at value. >> define value. >> companies, whether they're in transportation, industrials. a high dividend play solid companies that got your grandparents excited broaden out your portfolio and stop chasing growth right now. you may give up some return, but i think you'll be thrilled to dhet y death you broadened out your exposure >> when you get that book finished, let us know. >> absolutely. let's turn to what may be the most exciting ipo in a long time for a number of reasons the maker of 007s favorite car is revving up for a big ipo. steve sedgwick joins us now with more on aston martin >> i'm more of a bond villain,

but i agree with you i think it's fascinating i know you have your db11, forget about jay leno's garage what about your garage with an aston martin in it the luxury carmaker will list at least 25% of the company the value looks to be around 6.4 billion u.s. dollars what did they make in terms of the money in terms of the first half of the year 42 million pounds. the reason why these companies attract such a big price tag is people get excited they stop valuing them as oems, like ford, volkswagen, chrysler, they trade at five to seven times forward and they look at them as luxury goods why do we do this? it's like the ferrari ipo. that came about 20 times forward. it's trading now at 33 times

forward that was from fiat chrysler in 2015 so it could be a big price tag >> in my garage is a db11, it's a match box car, but some day, i hope aston martin, what have you heard? it's a sexy company. ferrari was a sexy company that doesn't always mean the stock is going to do well because you and i and a thousand other people would love to have one. >> look at this. this is fascinating. volkswagen trades at 5.7 times forward. it owns beugatti, ma'alamborghi, porsche. if ferrari can trade at 33 times forward, you can see what aston martin wants do, but they also want to get ahead of the pack. as we know internal combustion engines are under pressure from

the ev engines the biggest producer is tesla. look at that company's valuation, above that of ferrari. if aston martin can cap into a bit of that, if they can double, triple the level of the oems, the volkswagens, the fords, they will have a tasty valuation. >> named after one of the founders and a road in herfordshire thank you. appreciate it. shares of tilray shooting sky high this morning. seema mody joins us with more on this big story >> good morning. tilray reporting its first set of results since listing on the nasdaq last month. the second quarter revenue nearly doubled as the total kilogram of cannabis also doubled. the average selling price rose driven by sales of more potent

products and extracts. tilray, which is based in british columbia distributes and produces medical marijuana the company's ceo discussed the potential for growth in an interview on "closing bell." >> we are extending capacity from 15 times from where we started the year to where we will end the year. we are increasing capacity to deliver products around the world. i think you're seeing this interest from outside the industry because so many companies in so many other industries are in desperate need of growth. this is a high-growth industry that's emerging rapidly not only in canada but around the world >> tilray is majority owned by

priva privateer holdings, shares are up 250% since it listed on july 19th tilray is on track to be the second best ipo performer in the u.s. in 2018 other pot-related stocks, cronos, canny growth, and etfmg is also up >> we'll see new just a couple of minutes we're excited about it >> thank you we are just getting started on "worldwide exchange." nafta negotiations are on deck trade talks dominate the headlines from washington to wall street. what you need to watch coming up. and rising risks in real estate we're digging in on miami's housing market and the big factors that can weigh it wndo from an environmental perspective. "worldwide exchange" rolls on after this

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he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. good wednesday morning thanks for being with us your big individual stocks include the cloud, computers and booze. the cloud and box. the cloud source provider seconds quarter topping estimates despite a jump in costs. box is projecting revenues this quarter will miss forecasts. shares are down about 7% hewlett-packard enterprises reporting earnings and revenue that topped forecast

results helped bay strong py a g performance. shares of hp up fractionally. and pernod ricard is trading down this morning despite posting better than expected full-year results. they say growth was driven by strong demand in china and india and robust sales in the u.s. which is its top market. the stock down a quarter of a percent. here's your big elon musk update elon musk is calling out the "new york times. this after the times wrote a piece on musk last week stating he broke down in tears several times during an interview with the paper over the phone the tesla ceo tweeting for the record my voice cracked once during the "new york times" article. that's it. there were no tears. this comes days after musk hastily abandoned his plan to take the company private sparking widespread buzz about his future with the company.

elon musk saying "new york times," you're not telling the truth. wow. still ahead, results are in from arizona and florida's high stakes primaries, they will have everybody in d.c. and across the country buzzing. pln y give you the winners and exaiwhit matters when "worldwide exchange" returns we're the most isolated population on the planet. ♪ hawaii is the first state in the u.s. to have 100% renewable energy goal. we're a very small electric utility. but, if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪ verizon provided us a solution using smart sensors on their network that lets us collect near real time data on our power grid. (colton) this technology is helping us integrate rooftop solar, which is a very important element of getting us to our renewable energy goals.

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. a live shot of washington, d.c. nafta negotiations are taking place right there. still dominating your headlines

around the world, the united states and mexico striking a bit of a deal. canada is still on the table and chrystia freeland spoke yesterday about meeting canadia and american interests >> people know what's most important to canada we will stand up to our national interests. that's what we always do this is a week where we'll work hard to find some win-win compromise let's bring in spepeter spie from "the financial times. here's the idea. right now the trade talks are the united states, mexico, and canada neither of those is england or on the continent of europe, yet this trade story continues to dominate the ft's headlines and i assume your reader interest. how come

>> the story now is in north america, i never thought i would spend this much time discussing canadian politics. because trump declared trade war against europe, there is this open question about whether trump genuinely means any of this or is doing everything for effect, for negotiations we saw the same thing happen with europe. he's threatened car tariffs, which everyone is freaked out about. we had jean-claude juncker who flew to washington, they did a deal so everyone is watching the dynamic of how trump is treating this does he see this as a way to impose tariffs and make america great again or is this what he did in the private sector, you make the extremist point, roll back as you negotiate. the only one he's still at war with now is the chinese. for the allies, is he rolling back from those on the hill, from steve mnuchin it's hugely watched in europe because of that. whether trump means what he says

or he's beginning to roll back many of these attacks. >> if anyone is still surprised by the president's tactics, they must have crawled out of a rock or laned fr elanded from mars this has been happening since the election nearly two years ago. he throws a firecracker in the room, runs out, then he goes back in and tries to work it out. this is no longer strange. >> remember, he has followed through on many threats. there are the steel and aluminum tariffs that the europeans are upset about. originally we thought this was about china, but china doesn't export much steel to the u.s those are still in place this nafta thing was real. the mexicans did come to the table on this. the resulting agreement, though it only tweaks parts of the old nafta deal, many republicans think this is worse than before. there are some consequences here

it's not just rhetoric that's why a lot of people who thought this was a negotiating tactic have been taken aback the chinese the biggest example of this where he has followed through and escalated things china has now 25% tariffs on a lot of items >> i meant to say in some ways it does work it has seemed to work. i know it's hard sometimes for people to accept that. there's the strong feelings around the president either way that nobody can admit that maybe it's working i love reading the ft, you get the whole global and european view and people admit that it seems to be working. you don't get a lot of that in the united states. there is an element of this which for now seems to be workin working. >> it's true in the sense he brought people back to the table who said they would never deal with him. mexico the european commission,

they have said before we will not negotiate with a gun to our head, but they did now trudeau and freeland are in this horrible position he has insulted the prime minister of canada in front of the g7 he has gone after canada the way no u.s. president has done since the war of 1812, now trudeau has to decide whether he will come has the in hand, he already sent chrystia to washington to negotiate. it's damaging politically to him at home. the leaders across the world are having to decide whether they negotiate with a gun to their head or whether they suffer the damage at home politically >> is it really a gun to canada's head? maybe a slingshot to their head. it's just let's redo the deal.

>> it is for canada existential. it is not only canada's biggest partner, the u.s.'s biggest trading partner is canada. >> mostly because of oil >> it has a huge deal at home. dairy subsidies. there's a bizarre subsidy program in canada that subsid e subsidizes a lot of the dairy industry which is anti-competitive but it is existential for any canadian prime minister so there is a way he could step up to the plate, negotiate it, but there's certain things that trump is demanding that the ka yad th canadians cannot deliver canada is an ally. he has put an ally in an awkward position at a time when he's vulnerable at home politically it's a tactic that worked but it has worked against the u.s.'s closest allies you have to think of the long-term consequences here as

well >> peter spiegel, thank you very much results from the arizona and florida primaries are in and they are setting up a fierce fall showdown. tracie potts joins us now with more >> a couple of races that stuck out overnight. we have results for farizona th republican senate primary, this was the race to replace jeff flake, the junior senator from arizona who is retiring. in a three-way race, martha mcsally came out on top. representative mcsally a former fighter pilot. president trump tweeting congratulations to her interesting race after some long lines and polling problems in arizona. she now goes against a democrat who won 81% of the vote. questions about how it will work with her trending more conservative going against a democrat who is strong in that race to florida, a very interesting governor's race with a surprise on the democratic side

the democrat running in florida will be andrew gillum, with 34% of the vote. he's the tallahassee may wloer was a bit of a surprise win here he was backed by bernie sanders. the republican winning his primary, ron desantis was backed by president trump so this could be a trump/sanders type race in florida. >> will be very interesting. we could have the first african-american governor of the state of florida as well big fight there in november. still to come on "worldwide exchange," the five big myths about trade. our next guest breaks down some common theories he says are just plain wrong. we'll schoolou y when "worldwide exchange" returns.

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the s&p sitting another high trade fears easing up. rising risks in real estate, why miami's housing market could be in trouble long-term. and a magnificent feeling. that's what one u.s. superstar is calling his unconventional solution to yesterday's blist blistering heat in new york. it's august 29, and "worldwide exchange" tees off right now ♪ welcome back.

i'm brian sullivan we have a lot to get to. first a check of your top headlines. seema mody is back with those. let's check on what's leading cnbc.com right now the u.s. senate vote to confirm richard clarida as vice chair of the federal reserve. clarida has worked as a managing director at pimco. he was nominated by president trump back in april. aston mart season geariin ip for a public offering that would value the company at more than 6 $6 billion the sports car brand is planning to list on the london stock exchange. and a late surge in summer travel is lifting u.s. airlines and their stocks airlines forecasting a record 16.5 million people will fly between today and tuesday. trying to get in the last summer trip >> you travel all the time have you been on any plane anywhere lately that's not pretty much 100% full and people are arguing over the baggage space? >> never

especially during the summer people are spending money on travel >> thank goodness you're always in 1a. >> phillip mena now with the headlines. the nation is celebrating the legacy of john mccain this morning on what would have been his 82nd birthday. he will lie in state at the arizona state capitol today. the week of tributes continues with a memorial service at north phoenix baptist church tomorrow, then he will lie in state at u.s. capitol rotunda on friday on sunday he will be buried at the u.s. naval cemetery. watch this this driver of the tractor trailer unable to pass the slowing suv, rams into the median, flipping the trailer on its side both driver's accused the other of reckless behavior

and in new york's times square, a swarm of over 20,000 honeybees taking up residents on the umbrella of a hot dog cart officials had to shut down the intersection while an officer known as nypd's bee guy had to be brought in to remove those bees just another day down in times square >> another day on a new jersey highway by the way don't do that in any kind of a car. terrifying video thank you. here's how the money and investments look now the markets have no indication they'll fall over today. dow futures today, up 33 points. every time we go up it's going to be a record for the majority of u.s. indices. if we say here, more record highs for the stock market let's talk about trade and things driving this optimism, we have the chief international economist from deutsche bank securities joining us. you put out a great piece where

you said there's a five myths of trade. we don't have time to get into all of them, but what's the single biggest thing that we, viewers, that the market gets wrong about trade right now? >> one very important thing is that -- trade balances are not driven by tariffs. they are drien by some countries are better at producing some things, and other countries would like to import those things we get cheap goods, they get a lot of production. it's not the case that someone is taking advantage of each other. one important myth is that this is the way the world works some people are better at some things, some countries are better at things, therefore this is just the outcome of a very efficient result globalization has, allocating resources around the world to where production is done most efficiently and cheaply. >> are we overworried about trade then it's dominating the headlines

every day, or are we underworried about trade >> the issue here is the second narrative that we hear from clients when we have discussions about markets, is these countries that are exploitin other countries, is that because they have a higher or lower tariffs, or what is the situation relative to china and the u.s. it is true that both on tariffs, china has higher tariffs than the u.s., they also have more non-tariff barriers to trade, so trade protection which is not directly associated with tariffs, but all other kinds of rules and regulations, restrictions on competition and movement of labor. another myth is that it's not the case that you have -- that these countries are doing things sort of good or bad. it's just the case that they do,

in particular china and emerging markets, they protect themselves through tariffs and against tariff barriers. if you look at u.s., europe, canada, they actually have tariffs and non-tariff barriers that are similar so there's very little difference in the trade systems between the europeans and what's going on in the u.s. and canada. >> if i read you right, something that should be considered good news could be skewed to look bad that's the current account deficit. not the trade deficit. the ten-year bond is yielding whatever it is, not yielding hardly anything at all can't get to 3% because people want to own it because we are a safe harbor for so much foreign capital, it screws with the current account deficit numbers. is this a good thing or bad thing? >> absolutely. this is at the center of the radar screen for markets

namely if you look at the u.s. economy, it's overheating. there are signs of wages going up you have a treasury supply issue, treasuries have to be issued to finance the fiscal tax cut. at the same time you have these issues in turkey, issues with trade. so rates should be going down because as you say, the u.s. is a safe haven the rest of the world wants to have u.s. rates. it's a tug of war between the old school macro arguments, versus the arguments that the u.s. is the safest asset in the world. >> thank you interesting stuff. we wouldn't expect anything less have a great day . >> time for the top trending stories. >> is there a sector amazon is not trying to disrupt? >> live puppy sales. >> amazon is launching a new ad-supported video streaming service. the service is seen as a

challenge to other ad supported services like roku which airs old movies and tv shows. amazon's version will be free to users with amazon fire tv device devices. >> see if the man in the high castle does well >> exactly >> if you like to cross-post tweets to facebook, you got a shock yesterday. facebook announced back in january they would be not all allowing to kcross post so if you want to share thoughts, you have to use an old copy and paste >> why because they probably hate each other. >> we don't really have control over our data. >> i love it the company built on sharing just basically said don't share. don't share with anybody else. >> or just share on our site

>> wow seema mody, see you in a bit it was hot yesterday in new york how hot was it the u.s. open was so intense officials allowed a ten-minute heat break in the middle of djokov djokovic's first round match when asked what he did, djokovic did not disappoint >> you really want to snknow martin and i were in an ice bath one next to the other. we were naked in the ice baths it was a wonderful feeling battling with a guy for 2 1/2 hours, you get into the locker room, you have not finished the match, you're naked in the ice baths. it was quite a magnificent feeling, i must say. >> djokovic defeated his opponent 3-1 he also won on the tennis court. still to come, rising risks in real estate we're driving in on a controversial new theory that something may be happening to

miami's housing market a report from diana olick next

happy anniversary dinner, darlin'. can this much love be cleaned by a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dawn and grease is gone. as we move into the high-risk season for hurricanes, who can forget the toll irma took on florida last season. diana olick has her continued series "rising risks: the increasing impact of climate on real estate.

>> hurricanes have been a part of miami's history but rising seas are its future. water is starting to change the future of home values in and out of the danger zone ♪ >> reporter: this $25 million waterfront home is the epitome of miami beach paradise. but it is paradise at a price. because rising tides and increasingly extreme storms may already be lowering its value. in fact this home just five miles inland in little haiti could actually be a better investment according to a controversial new study. >> what we see here is a theory of climate >> jesse keenan tracked the values of more than 100,000 single family homes across miami going back 45 years. in a published study coined the term climate gentrification. >> so you're saying home prices

are already falling 10% because of climate change? >> 10% had there not been climate change. >> reporter: he says climate change is altering values on the coast and inland >> we found the higher elevation properties are worth more now, increasing, and will be worth more in the future. >> reporter: because multiple predictions like this one are dire the ocean overtaking vast swaths of miami in just the next few decades the precisely why climate gentrification, that is wealthier investors displacing low-income residents in high-elevation neighborhoods is already happening in little haiti. fabiola is a real estate investor and community activist in the area. >> all the community sees is new people buying up properties, raising property values and property taxes, pricing them out. >> reporter: on this street most of the homes are valued around

$1100,000, but this home is listed for sale at $559,000. it's value has almost doubled in just the last three years. the neighborhood around it is upgrading as well. >> you have long-time commercial tenants who have been here 10, 15, 20 years, new investors and developers no longer want their rent checks. now they're redeveloping it. >> reporter: part of what's behind the gentrification is the current trend towards urbanism but it is also scenes like this from last year, miami narrowly missing a direct hit from hurricane irma valuable new properties in the heart of its growing downtown were under water >> i would say water for a firm like ours is becoming a decisionmaker as it relates to strategies for investment. >> reporter: david martin is president of terra group, a commercial and residential developer. he just finished a luxury waterfront condo and is building more next door

he claims these towers will help protect miami from water >> we look at areas that are on the beach and along the coast we say how can we fortify these buildings? how can we create incremental tax revenues from these areas along the beach or along the coast and start reinvesting that incremental tax dollar into the infrastructure to make those neighborhoods more resilient >> reporter: miami is investing nearly 2$200 million into resilience, installing pump stations and upgrading its infrastructure miami beach is on track to spend twice that, raising sidewalks and seawalls the money is coming from new bonds. voters raising their own property taxes to protect their property but martin is also starting a new project here on much higher ground a 1$162 million residential and commercial development on five acres adjoining a metro rail station. >> are you hedging your bets >> i think there's opportunities

in both areas. >> reporter: while values are rising up here, demand is still high on the coast. real esta this real estate agent doesn't buy the climate gentrification thesis but says clients are more wary of water. >> people are more focused on modern construction, modern homes because they have newer code and higher elevation. i don't think people will give up the beauty of living on the water. >> another study from the universities of colorado and pennsylvania found homes exposed to sea levelrise nationwide sell for approximately 7% less than unexposed properties that are the same distance from the beach. the discount has grown over time, driven by sophisticated buyers worried about global warning. >> an important piece. you focussed on miami. we like to live near the water could this happen anywhere >> you can extrapolate this out anywhere on the coast anywhere

in the world in danger of sea level rise and areas in danger of fire, mud slides. it all impacts housing >> climate gentrification. the "squawk" team has head their coffee or tea. joe kernen has what's on deck. what's on deck >> i guess i'll be a buyer of that property. how are you? you good i just read a martin feldstein piece on why rates will go up. i'll share it with my anchors later. what was the gist? >> i will tell you now we had another session where the s&p did not hit a record, but the nasdaq did >> the s&p hit a record.

>> i looked at 3:52, it must have closed higher here's what ends this record run. feldstein points out it's not age of bull markets that ended it, it's higher interest rates foreigners are less inclined to be buying now. we're funding a lot of the deficit domestically eventually domestic investors given up where inflatiinflationl no longer be at 2.5% >> did i hear santoli's voice there? >> santoli is here >> i would like his take on whether we need to worry about the markets given that the president has gone after facebook, amazon and now google yesterday. if the president is going after three stocks which are by a market cap basis probably bigger than almost every other stock

combined, do we need to worry? >> yesterday google and facebook were down, amazon up but that's not a good reason to worry. not yet. >> i'm not worried about that, brian. i googled -- >> you didn't bing it? >> no i googled trump, and the first thing coming up is cnn saying it's not true >> seriously >> yeah. cnn says it is not true that this is rigged brian, give me your estimate how much has the sea level risen since president grant? >> i don't know. but i'll ask jeeves. >> 11 inches since grant was president. now they're saying it's going to rise a couple feet per year. i think 2 millimeters a year at this point that's why i said i'm a buyer. if you have oceanfront property,

if i want to sell at a discount, i'll pick it up. >> i'm a renter. still to come, what you need to watch about what's happening in our nation's capital. that's next. happy anniversary dinner, darlin'. can this much love be cleaned by a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dawn and grease is gone.

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febreze air effects doesn't just mask, it cleans away odors. because the things you love the most can stink. and try febreze small spaces to clean away odors for up to 30 days. breathe happy with febreze. let's welcome in tony fratto when you go to the power lunch, is there any reconciliation at all with anybody in a whispered voice that maybe some of the president's harsh trade tactics are work at all in is anybody admitting that in the darkest corners? >> there's a few people at the palm who might want to admit that >> maybe i shouldn't have used the palm >> the jury is still out that's the big point we don't have certain agreements

on this. the u.s./korea amended agreement, the big accomplishment in march is still not done yet these deals are complicated, they take time i do think eventually we will see a trilateral renegotiated nafta 2.0, but we're looking into next year before that sees itself in front of congress. >> because the u.s. versus mexico and canada is a lot different than the u.s. and mexico versus canada >> yeah. i think that's right canada -- you have to remember canada entered the early part of negotiations protecting mexico's interest canada cannot be happy today about where -- mexico kind of jamming it in this the big concessions that have been made so far have been made by mexico, not at canada's

expense. so this content requirement, 75%, it doesn't hurt canada. it hurts american global auto producers from being globally competitive but it doesn't hurt canada the $16 wage issue helps canada. canada has workers making $16, $17, $20 an hour and higher. the question is is that production going to move from mexico to the united states or mexico to canada i think it's an even bet a lot of that could move to canada canada is not in a bad place they will have to find things in other parts of the agreement that are wins for them freeland yesterday already said mexico made some big concessions. they are already squaring this as mexico make concessions, not canada they'll have to find things in the environmental provisions and say canada is also a winner on

this the details of working out that language are hard that's why i think meeting the september 30th deadline will be tough to do. >> we'll count down and have your wise insight many times tony fratto, thank you your rbi is timely it's coffee. what do you pay at store for a decent pound $8 the wholesale price of arabaca coffee beans have collapsed. so wholesale coffee prices are at 12-year lows. the weak brazilian currency is slamming some coffee growers the next time you walk into a starbucks, a dunkin', wherever you get your cup, ask them whether or not they're cutting their price. have another cup coffee prices collapsing

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good morning the record rally rolling on as trade war fears ease canada's foreign minister praising the u.s./mexico deal. we know her, right wasn't she a journalist? >> she used to be a guest host here >> i know. that's really scary. >> larry kudlow. that's different larry before he was a journalist had a real job florida surprise the governor's race there becomes interesting as a 39-year-old bernie sanders-backed democrat faces off against a president-year-39

backed candidate and aston martin going public it's wednesday, august 29, 2018. "squawk box" begins now. ♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. andrew is off this week. let's look at the u.s. equity futures. we did manage to eke out gains yesterday, just barely the major averages are off their high the dow ending up by 14 points yesterday. the s&p up by less than a point. the nasdaq up by 12 points holding on t