breaking news at the 5:00 a.m. hour, stock futures plunge as president trump wraps up the trade war with china the president threatened to raise current tariffs and slapping on a new round of tariffs. china responding saying that it may pull out of this week's trade talks. stocks in china falling overnight. we have full team coverage of this major developing story as "worldwide exchange" begins right now. good morning good afternoon and good evening.

welcome to "worldwide exchange." you are looking live at beijing, china, where we are getting new reaction to president trump's trade threats. stocks in china falling more than 5%. we will take you there live in moments. right now we've got a major selloff underway in the markets and your money dow futures are down more than 500 points right now we are seeing, look at this, futures down 501 s&p and nasdaq futures down large as well. bonds though as stocks fall are being bought the yield on the ten year note is at 2.52%. we are seeing bonds up as the yield comes down to 252. now as we talk about china stocks there overnight are falling in a big way we are seeing the shanghai composite down 5.5% right now. the hang seng down not as much almost 3%. south korea off .3 of 1% japan remains closed a lot of red on the screen as well the u.k. market is closed today. look at this

germany, france, italy all down more than 2% now as for the broader markets, we are seeing oil actually move down there's news on iran as well we'll get to that in a moment. you wonder why is crude down think about this if there is concern about an increased trade war, maybe the global economy slowdown as well, that would reduce demand for oil. that's why crude oil is down 1.8% the dollar index rising higher gold getting a small bid this morning. let's get to eunice yoon from beijing. it was an ugly day for the stock market in shanghai. >> reporter: it was an absolutely ugly day in the chinese markets. now sources have told cnbc that it looks as though the chinese are considering backing out of the negotiations in washington set for this week.

it's because of president trump's tweets saying the 10% tariff will go up to 25% on friday and $325 billion worth of goods sent to us by china remain untaxed but will be shortly at a rate of 25%. now officially the chinese government is taking a neutral stance the foreign ministry said the chinese delegation is preparing to go to the united states but there was no mention that china would cancel the talks however, a source familiar with the discussions on the chinese side told me that some of the working level officials were told to postpone their flights and they still might get on those flights to make it to washington by may 8th, but it's still not a done deal. now that same source also may shed a little bit of light as to perhaps why president trump tweeted in the first place and he said that the chinese side felt that there were certain points that had been discussed previously which were in his

words hard to implement. so they went back to the u.s. in the beijing round to reopen some of the issues which currently didn't go over very well now talking about those tweets, twitter is banned in china. the access is blocked today. the chinese went one step further and have been scrubbing the images, so screen shots of president trump's tweets on chinese social media also almost the entire day the chinese state media made no mention of president trump's tariff threat and in addition to that, we spoke to some unofficial media who said that they were instructed not to report on president trump's tweets officially we don't really know the reason why, but the speculation is, brian, kind of what you had talked about in the beginning of all of this, that the government might want to control what they saw as a falling stock market because the stock market, both shanghai and shenzhen, dropped by 6%.

there were more than 1,000 stocks that went limit down and a lot of the financial pressure is in the area of tech, 5g, stock pressure and chinese tips. >> the shenzhen composite down more than 7% right now the biggest drop in years. eunice, what is the business community's take so far on this news >> reporter: well, the u.s. business community has been largely frustrated by president trump's tweets because as one person told me, they -- you know, they feel that the president has in some ways forced the u.s. into a corner to raise tariffs on friday so now what people are talking about is that they might need to re-examine some of their plans to relocate the supply chain that they have shelved because they are worried about what's going to happen on friday. >> eunice yoon live in beijing thank you very much. joining us now is gordon

chang, author of "the coming collapse of china. thank you for joining us on short notice what do you believe is going to be the ultimate outcome here and also give us your reaction to this news which is obviously scared the market. >> the reaction is that there should have been -- should not have been a reaction you know, there have been obvious political considerations on both sides of the pacific pushing against a deal markets have ignored them. perhaps they've been listening too much to treasury secretary mnuchin with his cheerleading but it was clear that xi jienin ping was told not to make a deal ultimately there could be a deal but it will be well down the road china censoring this shows that they want to keep things on track. if they agree to anything, it looks like they've caved into u.s. pressure. politically that's impossible. >> do you believe trump has

backed china into a corner, and that is a corner, gordon, they do not want to be backed into? >> yeah, he certainly has backed them into the corner with the tweet. this is reporting that xiening ping has been taking proposals from his trade delegation and detailing them on his side a few days ago it's clear that this is a situation that's not going in the direction that most people want i think it's a good thing. i think we need to disengage from the chinese economy, but nonetheless, the majority view wants a trade deal i don't think they're going to get one. >> who has the leverage here >> we certainly do we had 3.2% growth in q1 china his growing at 1% but they're piling on dent 5.5% faster than they're creating nominal gdp. that's completely unstable that's up from 1.5 times from a year ago

they're not producing very much growth but they are creating a lot of debt. >> we're showing video of president trump with president xi jing peng and president trump will say i've got a good relationship with president xi and we're friends. do you believe -- >> yes. >> -- that's the case? >> no. you can't have friendship with the chinese leader i mean, you can have smiles. you can have president trump trying to promote his relationship and he's doing that for political considerations in the u.s., but i don't think for a moment that the chinese are swayed by what trump says. i don't think trump is swayed by that either because they both know they've got irreconcilable differences including china's theft of hundreds of billions of dollars of u.s. intelligence every year that is something even if they get to a trade deal, brian, that is going to create relations in the long term. >> let's say we don't get a deal let's say china does walk. nothing happens. how long can china hold out? how long can we hold out,

gordon >> we can hold out forever last year though china showed how much is dependent. their trade surplus accounted for 129.6% of their overall merchandise trade surplus. that's overwhelming dependence on the u.s they really need a deal. they have an economy in trouble. you know, we're in a much better position >> you know, it's a little bit off topic not related to trade, but there's something else big that happened in that region two u.s. warships sailed through disputed waters in the south china sea today. china has their own aspirations. do you believe this is a harbinger of something bigger or is this a show of the united states >> we do this to defend freedom of navigation because china is taking positions that are going to make them chinese territorial

water. that's completely unacceptable we're not going to have an open trade architecture if countries like china are able to take peripheral seas and close them out to foreign vessels this is something the u.s. has done for hundreds of years it's our only consistent american foreign policy since the birth of our republic. we will continue to do this. china is insisting on things which are completely unacceptable, not just to us but nations in the region. >> is there a way to win this trade fight or is it literally both sides lose? >> i think we're going to win in the long time, brian, if we disengage, if we get the supply chains to move got to remember chinese governments and admirals have been threatening to kill americans. they've been doing that in public we should not be feeding their military with commerce we do win if the factory moves to vietnam, bangladesh or back to the u.s.

>> gordon chang, thank you for joining us very much. >> thank you, brian. trade certainly as you can tell by the futures down 500 points is the driver this week markets getting spooked on that news that a deal may be further off than we thought if there is a deal at all. let's welcome back in dan brew of palisade capital management you have said this market is priced to perfection and that's what we get now. we're seeing dow futures down 500 points what's your reaction to the possibility of no deal >> i think that whether we had a deal or we didn't have a deal, the market was set up for a correction but i believe, brian, this is going to be a correction you're going to want to buy. we have a combination of slowdowns and i thought that

guidance for the second quarter would be more tepid. that didn't happen and as you can see from the gdp numbers that we put out, our economy is far more resilient than perhaps even we thought it would be from what's going on. but the setup, investors have been too reliant on a trade deal if we did have a trade deal with china, now no deal, but, you know, again, i've been looking for 5 to 7% type of pull back in the s&p anyway >> sounds like you're saying we were set up for the fall in some ways. >> that's exactly right. >> where do we go from here? >> i think you have to wait and see. this could be the start of the pull back that quite frankly is taking a little bit longer than i would have thought to play out. that could also be a stealthy pull back, too, because some sectors are looking much better,

like financials. health care has been beaten down within technology there's pockets of excess return and excess valuation we'll look to go elsewhere i don't think we have any inflation and we do have strong growth despite what's going on. >> if we get a deal, right now both sides are posturing, right? >> right. >> take my ball and go home. >> that's right. >> if we get a deal, does the market bounce back >> maybe very temporarily but i think you're vulnerable to a sell on the news type of deal. as your previous guest stated, i think it's going to be a pretty weak deal. when you really get under the hood and examine it, no one is going to understand the scope of it for quite a while to know

what's in it what president trump threatened was going to 10 to 25% on 200 billion in goods do the math on that. it's another 30 billion. sounds like a big number but ultimately the u.s. economy is 17 to 18 trillion. >> that's right. >> dollars >> yeah. >> is that material if that occurs or is it more of a psychological effect of, wow, we're going to really be engaged in this fight with china for a long time? >> i think it's very asymmetrical it hurts the chinese far more than it hurts the united states. >> they sell us a lot more than we sell them >> that's exactly right. what we sell them they, you know, try to copy anyway >> so do you look to u.s. focused stocks, the small caps companies that don't sell to china, they don't sell to europe not the mom and pops but the 5 and $10 billion market cap companies that do almost all their revenue from u.s. sources? >> yes, but i have to say that

what really impressed us with the first quarter earnings is industrials, for example, which should be more impacted. they're doing an excellent job on cost control and they're still keeping their margins higher there's a lot of parts of the economy. intuitively the small caps should fare better. >> are you selling into this market decline today, dan? >> no, but we've been coming in a little bit more defensive into this and, again, you're only one tweet away from up 500 points, too. it's very difficult to know what's going to happen i don't think this is actually the news that is going to determine whether we have a deal or not because as i said early on, this is posturing. a deal has to look like it's going to collapse for any deal to get done. >> as a president who knows what he's doing, he knows the markets and he watches the markets -- he knew what he was doing with this tweet? >> there's no doubt about that. >> trying to shake the tree.

>> that's right. >> we appreciate it. see you soon. it is not all about china this morning there is also a major developing story out of the middle east u.s. deploying a carrier strike group to the region in a show of force against iran let's get right now to rah rahil solomon. >> reporter: good morning. the pentagon is sending "the u. sm u. u.s.s. they say they are possibly going to attack u.s. forces. abraham lincoln has been operating in the mediterranean currently they have no carrier group in the persian gulf. in a statement national security advisor john bolton says the united states is not seeking war with the iranian regime, but we are fully prepared to respond to any attack the move comes as the white house is escalating pressure on tehran

last week they ended sanctions waiver from countries importing tehranian oil. it called them a terrorist organization it's sparked a collapse pushing the country into a deeper recession and lifting inflation towards 40%. brian, i'll send it back to you. >> rahel, see you in a few minutes. up next, warren buffet going on the record. he sat down with cnbc over the weekend talking everything from the markets to his firm's big bet on amazon. plus, upping the ante. a major update on the big battle brewing in the permian basin we are all over the monday morning futures selloff 500 as atn inanthtrump turns up the he ocha d e trade war. a full impact on your money when "worldwide exchange" returns

welcome back to cnbc if you are just waking up. at 5:20 this morning we have a major selloff underway in the futures. dow futures are down 510 points. s&p and nasdaq are off a similar percent. stocks tumbling in china as well with the shenzhen composite, effectively the chinese nasdaq down over 7% as president trump threatens to raise tariffs on current tariffs and implement new tariffs on $300 billion worth of chinese good in china

they threaten to walk away from talks. much more on that all day long on cnbc. that is not the only news today. also potentially pressuring dow futures. boeing shares are down 3% in the free market. that's on reports that the aircraft maker did not tell u.s. regulators about a disabled safety alert on the 737 max for more than a year boeing in a statement saying that the alert was inadvertently made optional instead of standard but added it was not critical safety data as we know, boeing shares down nearly 3%. at 365 a share, if boeing moves down, that will pressure the dow which is a price weighted index. also happening this morning, the battle for anadarka petroleum just took another leg higher occidental petroleum raising the cash portion by 28%. that cash portion goes now to 78% from 50%

the deal still valued at the same, $76 per share but the new offer is meant to do two things. number one, overcome any objections anadarko shares may have to taking so much occidental stock and two force chevron to come in at or equally higher than $76 a share. it is believed on the street that since chevron was seen as more attractive, it could bid somewhat lower and still win the bid. occidental made another big move they sold the african assets for $8.8 billion a couple of days it secured a $10 billion sale of the chevron stock. whether or not they come in and bid for anadarko is a big

question once they view this as a superior proposal, chevron will then have four days to make a counter bid. if chevron does not bid, remember, it still walks away with a $1 billion breakup fee. shares of anadarko, occidental and chevron are all in the red this morning as the market sells off. on deck, horror on the runway a passenger jet bursting into flames after making an emergency landing in moscow. plus, we are all over the monday morning selloff stock futures down 500 as president trump turns up the heat on a trade alitde wh china. we're back right after this. ne t opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing. because your investments deserve the full story.

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don't get mad. get e*trade and start trading today. welcome back good morning 5:25 on the east coast if you are just tuning in, buckle up because we have got a big selloff underway dow futures are down 506 points right now. president trump threatened to up the ante in the trade war with china. stock futures down big but oil is down as well despite the fact there's another story out today about a u.s. carrier group going to the middle east because of tensions with iran oil is down over concerns about a slowing global economy the price of crude oil down 1.5% right now. as always, we'll continue to keep a very close eye on the markets. right now, let's get you up to speed on this morning's other top headlines including a sad and dramatic story out of

moscow, russia >> goodmonday morning to you at least 41 people are dead after a passenger plane made a fiery emergency landing in moscow they're trying to piece together what caused the plane to burst into flames. the plane's two black boxes have been located. after a deadly weekend of violence, israeli and gaza forces have declared a cease-fire this is after rockets were fired over 24 hours. the palestinian health ministry announcing overnight that at least 23 palestinians have been killed and the deaths of 4 israelis have been confirmed. avengers end game pulled in $2.2 billion domestically. end game hats reached $2.2 billion globally it's the second highest grossing

film avitar remains the all time champ. those are your headlines. >> frances, thank you very much. we appreciate that dow futures down more than 500%. bonds are up oil is down as well. there's a t loto get to and we are back with it right after the short break. i think there are some ways to help keep you on track. and closer to home. edward jones grew to a trillion dollars in assets under care, by thinking about your goals as much as you do.

breaking news on this busy monday, dow futures are down 500 points president trump threatening to put another 30 billion in tariffs on chinese goods and add

tariffs to 300 billion of new chinese imports. china responding threatening to pull out of this week's trade talks. chinese stocks tanking overnight with their tech index down more than 7%. tensions with iran also on the rise as missiles fly in israel "worldwide exchange" has all of this and more right now. all right. good morning and welcome back to "worldwide exchange. i am brian sullivan. thank you very much for joining us on a very busy morning. stocks in selloff mode this morning. president trump threatening to ramp up the pressure on china. dow futures are down big is he threatening to raise tariffs from 10% to 25% on 200 billion worth of goods issuing new tariffs on another 300 billion in chinese made products dow futures off 507, s&p and nasdaq futures down as well. this, of course, coming off a very big friday for the markets where the dow and nasdaq 100,

anyway, posting one of the best days in weeks. bonds getting a bit of news. yield down 2.52% stocks in china plunging overnight. as you can see the shang heng index down 5%. effectively the nasdaq of china down more than 7%. now in europe overseas we are seeing the u.k. market close germany, france, the other major markets like us are down as well now in the broader markets the price of oil is actually down. why would you say that we are sending a carrier group to the east. tensions are rising. we should see the price of oil up that's not the case. if this is enacted it will slow the entire global economy. crude owl is $60.94 a barrel president trump threatening

more tariffs on china. let's get back to eunice yoon live in beijing with all the details. eunice. >> reporter: thanks so much, brian. sources told cnbc that the chinese are consideringbacking out of the trade talks in washington that are scheduled for this week. this is after president trump had tweeted over the weekend saying that the 10% tariff would go up to 25% on friday and that $325 billion of additional goods sent to us by china remain untaxed but will be shortly at a rate of 25%. now officially the foreign ministry said that the chinese are still going to be sending a delegation to the united states. there was no mention though that china would cancel the talks, however, i was speaking to a source who's familiar with the chinese side of the negotiations who said that some of the lower level, working level folks were told to postpone their flights but they could still get on the flights to land in washington on may 8th, the day when the talks

are supposed to begin. that same source shed some light as to perhaps what triggered president trump to tweet he had told me that the chinese side felt there were certain points that were previously agreed to. now speaking of the tweets of president trump, it was interesting here was that, of course, twitter is blocked in china but that the chinese government had been censoring and scrubbing the chinese government of any images of president trump's tweets also for most of the day today the chinese state media hadn't referred to president trump's terror threat. unofficial media told us that they were instructed not to report on president trump's tariff threat.

another reason why the chinese were there was the selling in the stock market the government was watching as there was a fallout. the shanghai market, shenzhen market, both of them fell dramatically today there was quite a bit of joking around today because people were so upset that they had lost so much money that people were tweeting that president trump is able to scuff the markets with one tweet. one of the most popular tweets was the chinese equivalent to president trump saying to the chinese people saying who's your daddy which in chinese is -- essentially that's what people are joking about in a dark way because they're very upset about

what's happening. >> so are images of trump's tweets banned in china or are trump's tweets banned in china >> reporter: just the tweets just the tweets. so this morning we saw the tweets being reposted. people were screen grabbing them and putting them on to social media. so it's just another indication that the government is really sensitive about it and wants to control the narrative because likely we're going to see what washington sees when they wake up and when they find out what's going on with president trump, is this a negotiating tactic or is he really ready to kill this

trade deal once they figure that out, then maybe we'll see what the chinese reaction really is. >> incredible to think they can scrub the web with 1.3 billion people the chinese government is -- >> there are a lot of people in china. there are a lot of people. >> there's a lot of people in china. >> a lot of people in china who are apparently as the shenzhen falls 7% eunice yoon, you're not angry. thank you very much. >> i'm not. stocks are down 500 points on the dow s&p and nasdaq down as well. joining us with insight and analysis, david kats, chief investment officer it's kind of grim. we asked you your thaufts and we sent you a picture of lucy and charlie brown and he was trying to kick the football look at that lucy pulls it away who's lucy, who's charlie brown and who's the football in this

picture? >> we're charlie brown and the president is lucy. for less than a month we thought the negotiations were going well over the weekend president trump took the football. we might not do a deal market is down 500 points. he was talking about china getting hurt worse than the u.s. >> gordon chang. >> they might be hurt less but rest assured the u.s. will get hurt the fourth quarter was the worst quarter. that was on fears of tariffs if the trade war heats up, rest assured we will not have a good year in our market >> the question is how much of the first quarter's big rally for stocks has been on on tow mission about a good, good for both parties, good follow up to the trade war versus solid earnings what do you think? >> it's been a combination

companies in the fourth quarter talked about the economy slowing and concerns about china and concerns about paris that went away in this quarter and as a result businesses have been able to do well the fed has changed course all of those things were pretty bullish. if we were to have an escalation in trade, the global economy would slow down. it would be negative for the overall economy and u.s. economy. >> so do we buy on this selloff, assuming we get one. the futures could turn around but it doesn't look like it. would you be a buyer on the selloff or is this the beginning of more market to come given that many believe we are priced to perfection? everything has to go well? >> we don't think we're priced to perfect spekt iioperfection this is ugly negotiating

if a deal gets done in a week, two weeks, three weeks, we are expecting the best advice today, if you like individual companies, everything is going to get marked down today use the selloffs to buy individual stocks. >> what would you be buying? >> well, look at the market what's going down. google will be down a lot with technology we like ups here cvsl down. everything will be marked down you're getting things at 5% sale if you liked stocks before, cheri pick today we like sales of stores but we don't like sales in the stock market. >> exactly. >> david kats. thank you very much. we are also following another developing story in the middle east. the u.s. deploying an aircraft carrier strike group and bomber task force to the region from the mediterranean sea. this comes as the u.s. defense official says there were, quote,

clear indications that iran and its forces were preparing to possibly attack u.s. forces in the region u.s. national security advisor john bolton says the move is meant to send a clear message that any attack on the u.s. interests or allies will be met with, quote, unrelenting force tensions have been rising between america and iran last week washington stripped wavers buying iranian oil. it has named iran's revolutionary guard as a terrorist organization we continue to follow the latest developing stories here and bring you more as we get it. a little bit counter intuitively oil is down this morning 1.5% about concerns of a slowing global economy coming up, why tim cook says he is frustrated he sat down with a one-on-one with becky quick setting up for a nasty day

dow futures down 500 as trade tensions roar back to life stick around really?

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welcome back it is 5:45 if you are just waking up joining us on cnbc, there is a major selloff underway dow futures are down 500 points. just under that level. s&p and nasdaq off as well we are seeing the european markets down and the asia markets down 5 and 7%

respectfully in china all on concerns when the trade war is going to take another leg up as president trump threatens to raise tariffs from 10 to 25% on 200 billion worth of chinese goods. would he will continue to keep an eye on the selloff. first, we have fresh comments from two of the biggest names in business warren buffet and tim cook both going on the record with cnbc. becky quick joining us live on what just a couple of minor leave business titans had to say about the markets and the stock market this weekend. i follow this stuff on social media. great work seemed like an amazing weekend out there. what was the big take away from omaha? >> reporter: you know, brian, we've heard from hours and hours of conversations from both warren buffet and charlie munger, even with that there are news items we haven't been able to tackle and dig into

berkshire hathaway has an annual meeting on saturday. it put out the earnings statement an hour before, maybe it was an hour and a half before they both took the stage a lot of heck techness, a lot of things, a lot of running around. there was an interesting surprise in that earnings release from berkshire it said it had not been able to compute the earnings from kraft heinz although the earnings had been reported had not been finalized. it filed the 10k and as a result berkshire was not able to put in any figure on its bottom line for the earnings that it was reporting to show from kraft heinz as well. it put in a zero line. this is pretty unusual we were trying to add some lines. i did get to ask him about it and here's what he had to say. >> i'm not surprised now because i knew in the last few weeks it could be coming. they have not been able to file

their 10k which was due around march 1st and since they haven't filed that, they can't file subsequent 10qs to report the quarterly earnings until their 10k is accepted, we will wait to get the earnings of the quarter. >> how unusual is that >> it's pretty unusual and it means we put in zero for the earnings even though we've received $130 million in dividends. we don't count that in the earnings because it's an equity type investment. normally you put in dividends we receive. we own over 20% craft hainz so we account for it. we account for the earnings, not the did i have department. weet' get them at some point if you read our press release

we'll see we don't have the earnings to put in there. >> now buffet went on to say that the reason they didn't have the earnings is there's a dispute between craft heinz and the long time auditor price waterhouse cooper, pwc that is very unusual we didn't get a chance to talk to him about what else he does or doesn't know. we will ask buffet about that this morning to answer any questions he might have. apple ceo tim cook was here for the first time obviously apple is a major holding for berkshire. it's the largest equity holding. berkshire thath way is the third largest holder of shares in apple. we got a chance to sit down and speak with tim cook and we talked about how he's frustrated with the idea that all of the big tech companies get painted with the same brush when it comes down to things like

regulation and calls for the breakup of these big tech companies. they get pulled in with some of the bad actors like facebook which has been on the line with issues of privacy. here's what he had to say. >> i'm frustrated that tech is painted as monolithic. tech is not monolithic that would be like saying ul revenues -- if you look at apple, we are large and we're geographically in the same locations as a lot of tech companies and that is about the extent of the commonality. market cap may be another one. but put those aside, i don't think anybody would call us a monopoly or anybody that has a very deep trust mind set we have 15% share in the world on smart cloud and 8 or 9 on

social computers, so on and so forth, so the share is clearly not a dominant as the company or dominant market. that's different depending upon which of these companies you look at. >> brian, it's just about ten minutes away from the top of the hour warren buffet just arrived we're going to sit down and talk with him especially what's happening on the market and what that could mean for berkshire companies, what he sees on the ee con mip and much more he'll be sitting down at the top of the hour. then at the top of the 8:00 a.m. eastern time we'll be joined by charlie monger and bill gates. they all have experience in china, they have investments in china and they can give us insight. talking about all of those things coming up in a little bit. >> surprised that they were able to move markets as well.

perfect advice on a day where the dow is down 500 points to the futures. what better to have on than warren buffet, bill gates and william monger looking forward to it. >> thanks, brian. dew futures trying to keep it from iran lot rea mo to do dow futures off 500. we're back right after this. to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. thank you. there is reward. beyond the classroom... there is inspiration. ♪ ♪ beyond work and life... who else could he be? that's what i say. there is the moment. (laughing) beyond despair... there is hope. ♪ ♪ stay safe. i love you mom. i love you too, sweetheart. ♪ ♪

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- learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. welcome back good morning stock futures are in big time selloff mode indicating a drop of 476 points at the open. joining us now, chris campbell chief strategist at duff and fell he's a d.c. insider recently relocated to new york. perfect day for you. thank you very much. >> good to be here, brian. >> you worked in and around d.c. at the highest levels for years.

what do you believe is going to happen with this trade fight/trade negotiation? >> i'll tell you, someone who's been involved in talks with china for a really long time, china is expert at drawing things out if they think things are going too fast, they're going to do everything they can to slow it down they've tried for many times to come to some type of agreement and have been unsuccessful president trump has been imposing tariffs and i believe the president and mnuchin and bob light houser are not going to tolerate slowing down talks they're going to reopen negotiations that they thought were closed, this president is not going to have that i believe will impose new tariffs. >> everybody said the way china negotiates is not like trump trump wants this, an outcome --

>> fast. >> china is in the long game. >> sure. >> constant negotiation. >> that's right. >> do the two sides ever come to a quote unquote deal people know that very well he has a lot of leverage. >> do we have more leverage to them >> i believe we do. >> we're already moving manufacturing. >> south of the border that is migrating. china is seeing that we have a significant challenge. they're going to move to the president. he doesn't have to move to them as much as we have to move. >> orrin hatch, you work with the highest level of senators

making the decisions what do you think they're thinking >> in washington right now this is in the long view i think they're going to take a collective deep breath as i express to the markets this morning as well and suggest that we're going to get to a deal i believe it will be enforceable. it will not be a big step forward. we're going to see this happen as the relationship resets. >> does the senate want a deal >> they do absolutely a deal. i think there's a lot of skepticism anywhere in washington, d.c. the white house and rightfully so i think at the end of the day this administration and other people are getting well on services they're geared to come up with a deal so i believe that's where we're going to go.

everyone take a deep breath. we'll get there. >> chris, great advice thank you very much. deep breath. we're going to need t. dow futures off nearly 500 points. "squawk box" picking up the coverage we will see you tomorrow a big day on cnbc.

becky quick is reporting live from the berkshire hathaway annual shareholder meeting in omaha, nebraska. we're bringing you three hours with warren buffet answering your questions about berkshire's amazon investment, the new funding deal with okay si dental and all his biggest holdings then at 8:00 a.m. he'll be joined for a billionaire summit with berkshire vice chair charlie monger and microsoft founder bill gates this special edition of "squawk box" starts right now.

♪ ♪ live from new york where business never sleeps, this is "squawk box. >> good morning and welcome to "squawk box" here on cnbc. live from the nasdaq market site in times square. i'm joe kernen along with andrew ross sorkin but just let me get to this quickly. i'm here but becky's in omaha with warren buffet we're going to get out there i'm he going to do this quickly, becky. >> big news. >> trump's been tweeting. >> big news. >> you know what i think, guys he's back to house money we're near new highs he's like, you know what -- >> push it. >> house money, here's -- here's the time to do it. first though, here is some breaking -- there's the news we're talking about. u.s. equity futures tumbling to start the week yesterday the president looked