a potential mega merger topping your five. they want to create the third biggest carmakers. the full details ahead on what would be an end-changing deal. speaking of deals, president trump says we're not ready to make one with china over trade just yet we'll take you live to beijing and washington live with reaction. alibaba looking to make billions some good news for your wallet at the pump as we kick off the summer and maybe it is prime real estate after all

amazon reportedly on the hunt for more new office space and the location might surprise you. it is tuesday, may 28th as "worldwide exchange" begins right now. ♪ good morning, good afternoon, or good evening, and welcome from wherever in the world you may be watching. i'm brian sullivan i hope everyone had a nice memorial day the u.s. market s were closed yesterday. big news yesterday news on the carmakers aring looking to team up in what could only be called a mega merger if done, if completed, it would create the world's third biggest company and without come with job cuts as part of savls. approvals in italy and france are still needed we'll get you the story ahead. shares of fiat and ray nault ene

higher right now there had been worrying signs of late the dow is cog off its first five-week losing streak in eight years the other major averages coming off their first three-week losing streak of this year and look at this buyers continue to come into bonds. the yield on the treasury note, 2.28%. this's the lowest yield since october of 2017. it does mean also that mortgage rates should continue to tick down crude oil is ticking up just a bit this morning, but coming off its worst week of the year a lot of concerns about global demand out there brent crude briefly topping $70 a barrel around the world we saw both japan and chinese markets rise a bit. a lot of green on the screen gains, about a half a percent

across the board the uk is effectively flat. speaking of trade, there are new developments this morning, president trump saying the united states is, quote, not ready to make a trade deal with china. the president making those comments as he wraps up his official visit to japan. tracie potts is live this morning. tracie. >> good morning, brian he doesn't want to be part of the tttp. the president headed back from japan but talking about trade with china, of course, those economies are linked, so we evek will affect japan, but the president says he's just not there yet. listen. >> as far as the chinese are concerned, they would make a deal i think they probably wish they would have made the deal they

had on the table before trying to renegotiate it. they would like to make a deal we're not ready to take a deal and we're taking in tens of billions of dollars of tariffs and that number could go up substantially very easy. i think sometime in the future china and the united states will have an absolute great trade deal. >> at some point we don't know when the president seems to be putting the brakes on things as for japan, it looks like they're not going to get serious about talking a trade deal up till their parliamentary elections in july. although the president highlighted we've got that upsidedown trade imbalance. >> tracie potts. thank you. we'll see you soon. eunice yoon has more

anything playing over there, eunice >> yes, there are. one is called "hero tankman. the other is called "star of the battleground." that one is how a chinese student was able to broadcast to the american enemy and wear them down so the anti-american movies are still in force, and beyond that, of course, the chinese government as well as the state media have said that the u.s. needs to clarify its approach. that was literally the headline in the global times newspaper, the communist party paper after president trump made the comment about china, saying the u.s. is not ready for a deal officially china's argument has been that they want a trade deal, but at the same time, they, too, have their red lines. foreign ministry says they want the negotiation to be conducted

with equals and mutual respect the u.s. as you know, brian, has been playing hard ball with china, and the chinese reaction has been to only harden its stance we saw the anti-u.s. american movies, but also i wanted to show you a book that has been gaining more and more popularity this one is by a chairman and it's called "unprotracted war. it's about guerilla tactics against a much larger better equipped enemy that book has been getting popularity in the past couple of days finally over the weekend state media took a turn for the worse saying the u.s.'s demands are arrogant and they say the proposed changes, all of the hard stuff like tech transfers, state subsidies, all of that according to a someoxinhua repor

imperative they now believe all of this stuff affects china's economic system in the past we've heard these complaints privately, but this is the first time we've seen it eng into the public domain officially at least in the state media, the chinese believe that these areas, state subsidies and tech transfers are a no-go area. >> yeah. i mean it's interesting. this mao book is getting attention. did they ever mention the fact there was a story over the weekend that a company in china had lifted, stolen, if you will, their intellectual property in the just the past year do we hear those types of stats or comments in any frame of the chinese state media? >> no, not in those terms. so i read that story too i thought it was really interesting. but in terms of i.p. theft, they don't really acknowledge that

china is stealing i.t. or i.p. from the united states in this way. i mean there's always this acknowledgement that, yes, maybe occasionally it happens, but it's not acknowledged or recognized in any meaningful way as though it's a whole hearted effort for example, there was another interesting story i wanted to bring up, and that's the nationalism looks like it's starting to affect certain companies because federal express has been getting a lot of online criticism a over the past couple of days over a report that huawei has said that they believe fedex has been diverting some of the packages that need to be delivered within china to the united states so there's been all this suspicion right now that federal express is somehow in cahoots with the u.s. government, and the hashtag online was viewed 140 million times, and there

have already been some calls of boycotts for federal express, but nothing so seriously now, but it's definitely something to monitor. >> hard to see how fedex would be diverts packages to the united states. any sign you're seeing fewer iphones around that's one of the fears. they're saying, we're not going to buy u.s. products anymore i would imagine there's still plenty of iphones to be found. >> there are plenty of iphones and there are is still a debate how apple could or would be affected there are people who have been cy sizing apple or calling for boycotts or being more pro huawei what's interesting to note is huawei's founder himself has been speaking to chinese state mediand a he's been trying to damp down some of the nationalism saying people somehown't jut go out and only buy huawei phones as opposedto buying iphones

so he's been trying to bring down the temperature. >> interesting stuff there "hero tank man." interesting stuff. thank you, eunice. it is not just the stockmarkets some key transport data considering a leading indicator edging down. joining us is the founder of north band trader. you've been posting shipping indices, rail freight volumes, job losses what have you been seeing from a macroglobal perspective? >> hi, brian, as you just said, there's a broad number of indices that are pointing to a slowdown that's extending what was a temporary slowdown in q1

at the end of a business cycle we see cycles. 99.99% of all employment history is really higher, and that has to be kind of generally a concern because things always look great at the end of a cycle, right economic data is still good and confidence is still high but it's the underlying change in growth that has to be concerning, often indicative that a cycle may be about to turn of course, we're seeing that right now. one of which is housing sales, right? the housing prices are dropping significantly year over year and that's one of those classic correlated economic indicators that suggests that we may be risking a recession coming it's not an immediate indicator, but certainly right now if you look at the screen in front of you, that's the third deepest decline in home price sales since 1970, and the other two

were coinciding with a recession. >> you just wonder how much of that is transitory wchl the global trade war going on because it's not just the united states and china, there's more stuff in the headlines let's take a step back and see how this plays out and then if it works out, they get back in i do wonder if this is a short-term thing or to your point maybe more of a longer term macro negative signal. >> this is the battle for price, you're right you hold back investments and so forth. you see that in the u.s. as well there's no increase in capital investments. all the spare cash, if you will, from the company side is put into buybacks. these things obviously con to have a bid under the mark.

now we're with this price of 2800 and 2900 on the s&p, and we've got to watch out for it. as long as the trade war drags on as you said at the top of your segment, it's not coming to a close any time soon, there's going to be further pressure on the economic indicators, and maybe it's possible one can trade war oneself into recession. what about the equity markets. the dow, the first five-week losing streak in eight years, the nasdaq, s&p, first three-week losing streaks of the year, however, those indecks are still higher in 2019 sometimes we've got to remind ourselves of this fact what do you see going forward? >> to your point, we've been four weeks down on the dow here, and you're seeing some short-term oversold readings we're getting into the may, june time period.

however, having said that, history also shows if markets turn into the may/june time frame, it may be more sig canal. one concern i've had with marks so far this year is basically two-fold one is that on an equal weight basis, if you look at just the indices, which are market cap-weight-based, they're still high, still in the 2850 range if you will if you look at it from an equal weight perspective, then all of a sudden you see in 2019 there was a lot of less participation by the broader market. that's one of those big concerns in terms of ending cycles, right? you have the low unemployment, high markets, but you have weakening participation. this year when we made new highs on the s&p and ndx, that's exactly what happened. now when you look at markets today, you've got to recognize between the highs of january 2018 and now, which is 15 months ago, a lot of the indices are

actually lower the russell is down 5% nyse is down 17% banking is down. you have gains from nasdaq and s&p basically burke it's very much flat in an overall perspective. markets haven't gone anywhere and they need to break out of this range higher. if you can get above 2900, then maybe you can keep filling the gaps we're left with in early may. drop below 2800, and specifically below 2776. then you run the risk of going down there's a tech nick -- technical one we're watching. >> sven henrich, thank you very much. a very busy morning. when we come back, a merger with

fiat chrysler and renault. the reporter who broke the story next. and allibabaalibaba and could it be a paypal killer. two stalwarts looking to close a deal worth $40 billion it's not a merger monday it's a merger tuesday. but we'll return to both stories after this systems. systems. ♪ ♪ be able to pull from reservation platforms built 20 years ago. and also be able to use apps to book super-personalized trips on shiny new phones from the future. plus, i need freedom to move my workloads wherever, whenever - but manage it all from right here. and that's the cloud i want. simple, right? expect more from your cloud. ibm cloud. my mom washes the dishes... ...before she puts them in the dishwasher. so what does the dishwasher do? cascade platinum does the work for you, prewashing and removing stuck-on foods, the first time. wow, that's clean!

cascade platinum.

be go[ laughing ] gone. woo hoo. ♪ welcome to my house mmm, mmm, mmmmm. ball. ball. ball. awww, who's a good boy? it's me. me, me, me. yuck, that's gross. you got to get that under control. [ dogs howling ] seriously? embrace the mischief. say "get pets tickets" into your x1 voice remote to see it in theaters. welcome back there's a shot of the hong kong

harbor early evening in hong kong speaking of hong kong, new this morning, alibaba is debeating whether to offer new public shares in a secondary listing in hong kong. the company could reportedly raise up to 20 billion more dollars. they're working with advisers to offer the listing as early as this year. shares of alibaba have done well, even in the face of a trade war. they're up 15% switching stories, we're following stories. fiat chrysler and renault are working on a merger that could make them the biggest auto company. he broke the story thank you very much for joining us on cnbc

there are proposals. there still have to be approvals. where are they in the process? >> in some ways we're at the beginning of the end the hard part is done where we get to the point where both sides are in favor of something. we don't see any signs that there's going to be difficulty this deal was stitched up in short order through a series of private meetings between john elk, the chairman of fiat chrysler and john dominic who parachuted in to fiat and stabilized the company after carlos ghosn was arrested and under house arrest in tokyo. so this deal was stitched up between these two men in the final few weeks leading up to our story on saturday which i

broke with my colleagues around the world. and then they got the announcement out but all the hard parts on getting deal across the line, which has befuddled the deal for years -- you may recall there was a deal that was tried to be had between gm and there was a deal with carlos ghosn which didn't go anywhere now the others have got something on paper, which is palatable to both sides and now they must go and sell that to the various constituencies you know there's a lot of rivalry. now others will try to stick a fork in it to see if there's a hole. >> it's not at like hee. if gm and ford wanted to link up, they could do that the governments are involved i think france owns 17% of renaul so there's a governmental approval aspect to any kind of deal, is there not

>> and the government -- yes, the french government owned 15% of renault it's a 50-50 deal. so they'll own 75% of the new company. they've signaled they're open to the deal we signaled john elkin went and met with macron to give him reassurance that everything would be okay in the weeks leading up to this announcement, so the boxes have been ticked. now the various politicians will stick their nose into the wind and see if they can effect it. but it seems like they have the state's support to do this. >> does this push them further away from nissan would nissan still be a part of this framework because the carlos ghosn aspect, i understand he's being charged with financial crimes or alleged financial crime, but there's this school of thought, arash,

that ghosn needed to be gone to get this deal done. >> that's deafnyly our impression the tick-tock of our story really charts a course where ghosn's departure makes this a lot more palatable and possible. john picked it up from marchionne elkin tried to peck it up and get a deal made. and then john dominic sinard was brought in with ghosn gone, they were able to hash things out in private and quiet quietly. we have several quotes in our story that say his departure made the consolidation which something all these gentlemen in the industry have been calling

impossible with recollect to nissan, renaul owns a portion of fiat and fiat owns a portion of ray nault. renault has failed to bring the two to the table once that was made clear to elkin, that's when elkin seized the opportunity to say, hey, let's do it between us and the japanese are going to have to wait we have a quote in our story from someone close to renaul that the behavior of the japanese in the past few months has been completely irrational >> you have the u.s. and chinese trading barbs and now the japanese we'll see how this plays out that ing you very much. well, in other deal news, sources tell cnbc's david faber that global payments and total

system services have agreed on a stock merger of equals jeff sloane who is the chief ceo of global payments will run the combined company, which will have a value of about $40 billion. it's a being deal. shareholders of total system will receive 48% no official comment. they look to better compete with new tech players like square and paypal and everything else in fintech. all right, still on deck, an important day in the courts. today marks day one of the country's first civil trial against opioid manufacturers, distributors, and sellers. on the stand, johnson & johnson. we'll have much more coming up ♪

♪ ♪ ♪ ♪ ♪ ♪ applebee's new loaded fajitas. now that's eatin' good in the neighborhood.

in't easy. applebee's new loaded fajitas. 12 hours? 20 dogs? where's your belly rubs? after a day of chasing dogs you shouldn't have to chase down payments. (vo) send invoices and accept payments to get paid twice as fast. (danny) it's time to get yours! (vo) quickbooks. backing you. get it. get it. get it! get it! crowd chanting: get it! get it! get it! (crowd groaning)

(crowd cheering) narrator: give your town a reason to celebrate because every goodwill item you bring home, brings job training and more to your community. goodwill. bring good home. high with the dow coming off its first five-year losing streak in eight years. coming up, could gas prices be primed to pop plus will smith casting a little magic for disney at the weekend box office. and later one of america's most iconic magazines sold again. but does "sports illustrated" really have a future at $110 milln?io much more as "worldwide exchange" rolls on right now servicenow put our workflows in the cloud.

this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you.

a potential mega auto merger on your tuesday headlines. good news, america gasoline prices are falling, but your next guest says you'd better watch ow. it may not last. call it prime real estate, amazon now on the hunt for more office space and the location they're looking at might have you scratching your head ♪ take me down to the paradise

city to where the girls are pretty ♪ >> someone says what's the perfect band to play at 5:31 on a tuesday morning after a three-day weekend? the answer's going to be guns n' ros roses. welcome back to cnbc i'm brian sullivan let's kick off the show. frank collin is here with a recap. >> fiat chrysler and renault are working on a merger to create the third biggest automaker. they would create savings over $5.6 million annually. this morning shares of fiat chrysler and renault increasing. this morning johnson & johnson and several in the hot seat j & j denies liability. and alibaba is considering a blockbuster secondary offering

the company is looking to race $20 billion in a second hong kong listing shares of alibaba are up 13% year to date that's the news. over to you. >> let's get a check of headlines outside the world of business including tough scenes from dayton, ohio, where a tornado struck last night. phillip has more on that >> good morning. millions are still at risk today after storms wreaked havoc overnight in tornado a tornado described as large and dangerous was confirmed near dayton video capturing the moment the lights when out in that area more than 80,000 homes lost power throughout the state and now the city of dayton is asking its customers to conserve water. the ohio department of transportation is telling drivers to avoid i-75 north of dayton and give emergency crews room to work. a traffic jack at the

highest peak is increasing deaths chris kiril passed away after he passed away. experts say because of the long line climbers are spenling too much time in the death zone where oxygen is very limited. and the annual cheese rolling event. thousands gathering on monday for a race that dates back to the 1800s. participants running down the hill it was a very steep hill after a wheel of cheese has been rolled before then brian, cheese rolling, a young man's game. >> i guess there was not much to do what should we do, chester let's run down a hill with cheese. >> exactly i domino what their excuse is these day. i guess they like it it's tradition it's tradition. >> whatever get themselves happy. it's a young man's game. i don't think there's anybody over 40 doing that. >> do that in switzerland.

thank you very much. here's how your money and investments look right now stock futures are mildly higher. dow futures up about 31 points keep in mine, we're coming off our first five-week. the nasdaq, dow, s&p, they're down actually bonds may be a bigger story than equities because the benchmark ten-year note the lowest its been going back to october of 2017 were below 2.3%. 2.28 do you know who likes that realtors like that because mortgage rates should also tick in but that bond move, the stock move means something is going on lot's move on. stocks are still up for the year they are still higher for the year the last few weeks, though, have been shaky bonds are getting bought in a

big way, an you say investors are also moving in to these low volatility products. does all of that stuff to you, alfr alfred, suggest people are getting worried? >> i think it tells us another reminder is fear is the greatest motivator over greed. >> are people fearful now? >> i think people have been fearful for the last few months, absolutely they've all been taking inflows including our own lslt one thing you do notice is people don't want to get away from equities either, so they want to be exposed to equities they just don't want the volatility snow you're looking at the dividend yield on the s&p 500, which is the ten-year bond yield. there was a story this weekend i can't remember who it is my apologies to whoever wrote this story

high-risk municipal bonds are getting bought simply because people don't know what to do with their money to get any kind of a decent return. >> sure, sure. i think the number was around $8 million poured insofar this year, which is something we haven't seen, you know, in a couple of decades. again, what that points to in our view is just in terms of flight of safety, but i still don't want to miss out on equity returns. s&p still up 13% on the year at the halfway point it's a great return i'd like it to continue. >> the hardest thing, if you're winning at blackjack, take your money and leave the table. most people stay and lose their money. that's why casinos look so nice. we made 13% this year. there's a lot of worrying signs. do we want to trim and take some of that profit if we have any, of course, and wait till things cool off

>> what we're telling advisers is just rebalance. if you take others around the globe, whether's asia or european markets, the u.s. is still the most attractive. you have growth profits. despite what atlanta is saying about growth for the second term or quarter, 1.3 versus 3.2, it's still a healthy number i know it's relative if you look at volatility for the past few weeks, it hasn't spiked up despite all the crazy headlines, trade talks deteriorating. it's a safer place to be relative to other parts of the world. so you want exposure. >> good stuff. we'll have you back on soon to talk more about it if this trend continues, alfred. it's a real pleasure. >> good to be back. the european elections are now over growth to the hard right did slow down. but now the hard work begins,

getting a real deal done the leaders meeting today to discuss the results of the region's parliamentary elections plus theresa may's resignation we talk about the field of contenders who may replace miss may. willem. >> there are now ten people who have put their name forward to try and replace theresa may as prime minister four have resigned over brexit issues the remaining six remain in cabinet as she limps toward departure in the third week of june what these kaenls are being forced to do based on the results of the european par la plenty elections with them

coming in fifth place with less than 10% of the national vote is essentially hardening their stances on brexit. you have four of these ministers saying -- and this is where investors are watching very closely -- they're prepared to take them out of the deal because that's what voters want, and even those who decided to remain back in the referendum of 2016 now say they have to deliver brexit because it's mission-critical for their party's survival and that's because this brexit party that really only started six or seven weeks ago formally did so well in the european parliamentary election they're concerned their voters, their base will be lost forever if they don't deliver on this campaign promise to take britain out of europe. >> willem marx thank you very much. when we come back, summer is officially under way, at least

from a driving perspective so will you be feeling wind in your hair or pan in your wallet? we ooher go ing to give you a check on gas prices. plus amazon on the hunt for more new office space and the location they're reportedly icarndg at may surprise you. stk ou if you've got student debt, hi. welcome. our generation has 3 times the student debt our parents did. it's just not right. but you can get your student loans right by refinancing your student loans with sofi. you can get your interest rate right by locking in a fixed low rate today. and you can get your money right ... with sofi. save thousands. fast, easy and all online.

- anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

every day, visionaries are creating the future. ♪ so, every day, we put our latest technology and unrivaled network to work. ♪ the united states postal service makes more e-commerce deliveries to homes than anyone else in the country. ♪ because the future only happens with people who really know how to deliver it. well, the summer driving season is under way. americans are feeling a bit of

relief as it's eased aaa says the average price of unleaded around the country is $2.82 a gallon, down 2 centses from last week and 14 cents from a year ago, but experts say the dae panhandle is heading toward a record this summer joining us now is a senior analyst of gasbuddy.com. the weird thing here, dan, you've got this export ban on iran the u.s. put into place, you have a trade war going on, and yet gasoline prices have come down, but how long can that extra inventory we seem to have really last? >> brian, i think we still have a few more days left, perhaps another week or sew we could see prices continue to move nationally down below the $2.83 it finds out this morning according to the live ticking average at gasbuddy.

but, of course, if you call it a tussle between the two trade giants, the u.s. seems to dog traders and investors, that seems to be the el familiarity in the room. for that reason, it doesn't matter whether it's the equities markets or energy markets, they're really at a point where the fundamentals are sort of put aside in favor of real concerns down the road about the future of trade globally, and so for that reason, i don't see prices firming up any time soon we may very well go into july before we start to see a bit of a rebound, but that really depends on the headline news. >> why is it so hard to predict. gasoline is a commodity, right you have this much, you need this much, and people figure it out. why is it so difficult this time >> epic tug-of-war between the two factors, the geopolitical one, you mentioned it, sanctions on iran, the inability to produce oil, concerns in libya, high demand on the one side, which should see prices move up,

especially this time of year when tradition aaly. and then of course the fear, the panic, the jitters about the real this could be a much longer trade war than anyone had anticipated and that moves to impose tariffs and retaliatory measures are like will i to lead to certainly a down draft in terms of a demand over the long period opec feels the world would be balanced as far as crude oil supplies by the second quarter of 2019 or second half of 2019, i should say and so for that reason i don't think there's a lot of people betting prices are going to go up any time soon or pushing back to $80 or $90 oil. it may be a bit of a sweet spot. very volatile for traders, but great news for consumers. >> dan mcteague, we appreciate

good news on this shortened holiday week dan, thank you very much. time for this morning's top trending stories frank is back. >> let's get down to it. we'll start out with the box office this weekend. it was a ♪ whole new world" i might get in trouble for sicking that. pretty good showing of alladin. one of america's most iconic magazines was just sold for a second time in over a year the rights of "sports illustrated" were sold for $160 million. authentic brands will control the lights to market, develop, and license the brand while meredith will still publish and create the content this is the second time in over a year "sports illustrated" was sold last year meredith was sold.

>> jamie salter, his biggest partner is shaquille o'neal. >> they also have the rights to marilyn monroe and muhammad ali. amazon is reportedly shopping for space on manhattan's west side. sources is telling the "new york post" that amazon is in talks with the owners of two skyscrapers one block from penn station. that's prime real estate of course, this comes after amazon pulled the plug on plans to build its second headquarters in long island city. >> if you've been in new york's penn station lately, you'll notice one thing it's full. i wonder how the city will react if you have a few thousand more workers coming in and out of penn station every day it would be crazy. >> i think the mer chans would be happy, mass transit, and real estate owners on the jersey side would be happy

it wows be easier to live over there. >> mass transit wouldn't be happy. there's no more room on the train snos they would have revenues. >> there's no more rom on the trains come out to jersey sometime. there's no room. game one of the stanley cup final, the boston bruins trailed st. louis, 2-0 in the second period boston has done what it does in every sport, scored back twice more in the third to take the win. 4-2. the blues will look to even out the series wednesday at 8:00 p.m. on nbc sports. all right. as we head to break, a must-read alert. "the wall street journal" with a deep dive into huawei over the weekend alleging the company's year-round ride is littered with accusation of theft and dubious ethics

huawei's accusers describe a wide-ranging bracen and on or tow news tick -- still to come, something has gone terribly wrong in one of china's most other important industries, the number of the day is 2.9 million we'll explain in your morning rbi next ♪

♪ ♪ ♪ ♪ ♪ ♪ applebee's new loaded fajitas. now that's eatin' good in the neighborhood.

they would like to make a deal we're not ready to make a deal we've taken in tens of millions in tariffs and that number could go up. sometime in the future china and the united states will have an absolutely great trade deal. >> we're going the fine out. our next guest says there are three key things to focus on

right now including the trade fight that nobody else is talking about but maybe most important of all joining us now is mark chandler. great to see you rare earth, all these minerals that no one talks about. if you drive an electric car, you're going to need this. china has taken global kroul of this why do you think this is a key fight that really isn't getting a lot of attention >> i think a lot of the american press really focused on the sheer size the u.s. has such a large trade deficit with china that many americans can't help but they that we, the u.s., has more to gain from a trade battle with china.

last year it ontario cost us about $4 million right now i still think that we are at srt of the lower lungsruf large escalation later using them as a weapon is a much higher level in this escalation ladder. >> where does this play out inside the trade war and how does it affect currencies and capital flows that we do talk about? >> yes the dollar has had a good ride so far this year we saw the dollar reverse lower at the end of last week, thursday and friday, but once president trump indicated that he did not think the u.s. was ready to sign an agreement, to have an agrem with china, the dollar strengthened risked coming off we saw the equity trade a little heavier yesterday and we'll see a little struggle as people try to source out, try to look at how long is this tension going

to last. i think i went to the same forecasting school as the president. we're told to give either an objective or time frame, but not both in the same presentation. so saying there will be a trade agreement in the future is one thing. i think that feature is going to be more prolonged than expected. >> we talk about trade and earnings the dollar matters to u.s. companies. you care about where the dollar schl dollar index is near a two-year high. do you see it getting stronger and stronger from here >> i'm still bullish, but we're on the last phase of the big dollar rally that began ten years ago. i think the last phase of the dollar in my work tends to be associated with interest rate differentials moving against the u.s. and for the most part they've been moving against the u.s. most of thee. i see one leg up as the ten-year rally comes to a conclusion. today we're trading at 1112

it's because urine is in such a mess even though we had the eu elections over the weekend, look at country after country struggling to put a company together bejump struggled over the weekend. the greek government is collapsing, austrian, and italy is experiences some problems with the eu. i think we've got a lot of problems with europe and the dollar looks the least ugly in the ugly contest. >> amazing marc chandler of bannonock thank you. >> thank you. chinese tourism to the united states fell last year the national travel and tourism office says travel to america fell nearly 6% to 2.9 million visitors that's the first annual decline since 2003 it may not be the trade war only economic uncertainty in china

has some traveling closer to home it's not all bad chinese spent 600% more between 2008 and 2016. very random and interesting. we hope to see you tomorrow. w?wó

good morning deal news. fiat chrysler teaming up with renault to become the third largest carmaker alibaba, we'll tell you how much the company could be looking to raise. and summer driving we've got good news for the road warriors out there some relief at the pump. it's tuesd it's tuesday, may 28th, 2019

"squawk box" starts right now. >> announcer: live from new york where business nerve sleeps, this is "squawk box." good morning, everybody. welcome to "squawk box" here on cnbc we're live from times square i'm becky quick along with joe kernen and andrew sorkin good morning good to see you. >> it's great to have you here, kevin. we've got a lot to talk about with kevin here today. we have a lot to talk about. the markets have been struggling this month the dow jones industrial average down for the last five straight weeks. that's the longest losinging streak we've seen in eight years. we've only got four trading days left in may, and for that, all three of the major averages are on tract to pose the