breaking news topping your 5 at 5:00, fiat chrysler slamming the brakes on a merger with renault. we'll find out if carlos ghosn was right. president trump threatening even more tariffs on china we'll tell you what he said overnight. no deal, mexican officials say an agreement not yet reached to fight off the potential tariffs. the talks continue in d.c. we'll take you there. oil alert. crude oil prices taking the nosedive we'll find out what is behind the sell-off. and president trump in normandy, france, as america and the world remember the heroism,

the valor and the lives lost on this d-day, 75 years ago today you're live on hallowed ground on this thursday, june 6, as "worldwide exchange" begins right now. all right. good morning good afternoon or good evening and welcome from wherever in the world that you may be watching good thursday morning. i'm brian sullivan thank you for joining us 75 years ago today, 160,000 allied troops stormed the beaches near the spot you're look at right now and to commemorate d-day president trump is there along with a host of other world leaders we'll have much more on this historic moment coming up. but right now, we have got to get to some cnbc breaking style news and that is this. fiat chrysler pulling the plug on the merger with french car maker renault. fiat blaming politics for the meltdown saying quote it's become clear that the political conditions in france do not

currently exist for such a combination to proceed successfully remember the government of france is renault's largest stakeholder. it owns 15% of the company both stocks are down, fiat mildly so, but renault is down more than 7% joining us now from hong kong is the deals editor at "the financial times" and he first broke the original merger story. arash, thank you for joining us. what went wrong in this planned merger >> well, i mean, this is an unbelievable turn of events. this thing was done and dusted it was a story about a smooth, crisscrossing negotiation led by john elle kin, the fiat family scion who had masterminded this merger, consolidation that was too difficult for his predecessor to pull off, for any of the titans of the industry.

this quiet, young italian aristocrat had put everything to bed with the french government, french car company, japanese, calmed everyone down and put this deal together all that was left was the sign-off and that should have been it. and boy, in the last 24 hours things just blew up spectacularly. >> well, what are your sources saying was behind the blowup >> on tuesday when the renault -- well, so on tuesday, it began with the board meeting which looked like a formality. but as people who do deals in france know, any time the french government is involved things can get more complicated and you never know how it will go. so this board meeting on tuesday went in to wednesday went in to wednesday night at some point last night, the french -- the renault asked for an extension for about a week at the request of the french government so that i that could potentially -- they could potentially vote in favor of the deal and fiat thought they had negotiated what they needed to secure the headquarters in

paris, to add things to the deal to sweeten it so that they could sell the deal. then it seems as though the goalposts started to move again. and fiat basically called time on the whole thing the board quickly pulled the offer basically in the middle of the night and here we are. shares of renault are the most heavily down because frankly if you're a shareholder in renault now you have to wonder if the french government with the 15% stake and 30% voting rights can torpedo any future of your company. now the french are -- the french government is saying they were looking to secure some comfort from japan's nissan. and that they were waiting to basically spend more time in japan. and secure the relationship with nissan that has been a complicated relationship and they're 40% owned by renault and they own a 15% stake in renault. so the french are saying we were trying to buy nissan time. people close to nissan said

we're totally cool with this, so we have no idea what you're talking about. so really it seems like the french government just torpedoed what would have been a very, very interesting example of european consolidation at a time when europe is really trying to come together. >> arash, i read last night though that nissan was ticked off by the fact that the new ceo of renault apparently did not let nissan in on the talks they knew nothing about it only emailed the ceo of nissan a couple of hours or maybe one day before the announcement of a possible deal merger came out of that -- and that nissan's two board members on renault basically walked out or would not vote on a possible deal. >> yeah, and if you remember the tick tock story on "the financial times" website, we said that the whole key to the negotiations between the two chairmen, nissan couldn't find out, so there was a bit of shock.

in that story we quoted someone close to renault saying that the trigger for the whole thing was the fact that renault's own discussions with nissan had collapsed and that the japanese were paving at the next level of irrationality and they're just done with them that pretty much prompted john elle kin to say, hey, let's do this deal, but his vision was really broader he wanted to bring the japanese into tent and it was attractive to the japanese to have this italian american company that isn't entangled in the french state stay in the company which gets rid of the french state's double voting rights in renault. it was somewhat attractive to get this kind of bigger pie created. and then figure it out from there where the french have less of a say. >> sorry to jump in on you like this carlos ghosn has suggested that his arrest was part of a conspiracy by nissan because he wanted this deal the japanese did not want his deal and the charges that were filed against him were part of -- now

he said this before we knew about a possible fiat-renault tie-up does this news and the drama around this give a little credibility to carlos ghosn's story? >> wow, it's hard to speculate on that. there's two sides to that story, right? the japanese line, crimes were done here and we're following the rules of our nation. so there are very specific reasons for why they're doing it and they're following the law in japan. now, that kind of conspiracy theory line if you will has been prominent since the day after his arrest which suggested that he was pushing for this merger. that definitely appears to be true he was going to consolidate the alliance, renault had the upper hand in that and nissan and the executive teams which many of the underlings were loyal to him throughout that 20 year run where he resuscitated nissan from the grave they were going to lose out in that.

there's a line from the ghosn camp that this was a massive conspiracy to undermine that and to basically get him in trouble for things that everyone inside the company knew were taking place. that was one side of this. but boy, if you look at this, you have an italian american company trying to merge with a french company, potentially trying to draw in the japanese company over time. the french and the japanese companies are at each other's throats and now you have the italian company basically walking away and saying the french are completely out of line and impossible to work from a shareholder perspective. the people who look bad today are the french government. >> yeah. we have to leave it there. really, i see a book in your future, because there's a lot to dissect here the story continues. the other big story this morning is trade president trump now threatening even more tariffs on china the president is saying that they could be raised by another $300 billion mr. trump though did not say what goods could be targeted china responded to this latest threat saying it is ready to take countermeasures

if necessary now separately, the united states and mexico failing to reach a deal to ward off the president's threatened 5% tariffs on all mexican imports there. those tariffs are set to kick in on monday and rise every month through october. president trump though says the talks will continue today. by the way, the big mexico eww is down another 2% right now the mexican peso taking a dive against the dollar as well remember, that's an inverted chart. that goes up, that's the dollar against the peso here's how your money and investments look the stock futures are mildly higher up about 61 on the dow. the yield on the ten year note not moving a lot we're starting to see a pause perhaps as we await word on the fed, the federal reserve meeting coming up in a couple of weeks also, watch oil. wow. oil up a little bit right now. just under 1% but falling yesterday. the u.s. government said that

inventories simply surged last week it was one of the biggest combined builds of oil and gas inventories in a long time now turning overseas, just moments ago we got some growth data out of europe 0.01% quarter over quarter and that's unchanged from previous estimates the euro, by the way, the ecb has a rate decision later on this morning no big policy changes are expected there all right. let's talk more about the state of europe's economy and how the u.s./china trade fight is not only impacting us and china, but europe as well david, i know you've been mildly optimistic, but any thought that it's having a negative impact on the 19 trillion or so trade

economy. >> obviously not look at the gdp breakdown, actually they're revised up the q4 consumer spending very strong data and then we had another strong quarter for investments in q1. to put it in context investments rose 4%. 6% now annualized in q4 and consumer spending is annualizing at 2%. yesterday, there was confirmation that it's running at the highest level in germany and we have some regions in germany where the unemployment rate on a u.s. style definition is now below 2%. so you know this is not the narrative that you're hearing from a lot of the other commentators that, you know, again highlights -- we're living in a parallel universe to a lot of people. we think that europe at the moment is doing okay it could do better but the eurozone is doing better than people expect.

the other thing i would highlight is unless president trump turns much more of his attention to europe, the euro can benefit from trade diversion from china and the u.s. to more trade with the eu and china and also from the eu and into the u.s. itself. the eu is the biggest trading block globally it's running a big trade surplus with china and exports pretty much the same products into china that the u.s. does so actually, depending on what happens to global trade, the eu may benefit to some degree from trade diversion. everything going on with president trump and with china in particular. >> i wonder if the number is a bit misleading like our states here, some are big, some are small, the 28 eu nations some are big, some are small. when you dive into the numbers, you look at the strongest economies. of bulgaria, latvia and poland which has the strongest economies in the eu. is that enough to help the combined economy or is this all about germany and france >> no.

i mean, germany is still doing pretty well. if you have wage inflation running at over 3% in germany how can that economy be in recession? you have unemployment in germany at 3.2%. i haven't had a chance obviously i'm sitting in your studios to look at the breakdown of the german gdp any more clarity on that but basically, we know from what was released a few days ago that german households' disposable income was punchy in the first quarter. it's not about the smaller countries outside the eurozone, but point here is in the core, things are doing better. this is a domestic recovery. not a large cap quoted sector recovery but a domestic recovery based around service sector. so a lot of equity investors i think are missing it because they're looking at large cap german companies in some cases but the action is small cap level and within the service arena that we see the action. >> david owen, jefferies

international, thank you for your insight today. happening right now as well, all day long, folks, the world commemorating the 75th anniversary of d-day there's a live shot of normandy, france and president trump is there and he's about to speak of course. we'll monitor the remarks and bring you more ahead. all right, when we come back, more on the crude oil chance the price is taking a nosedive on the big build and inventories. hear from the shell ceo coming up in a moment. plus, more on this morning's merger meltdown between fiat chrysler and renault phil lebeau will break down what is next. is big tech unchecked? more on the big fight brewing pil lleyndlicon vall a catohi air traffic control. it's gotta let new data integrate with data from our existing 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 -

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all: sausages! mmm, mmmm. bon appetite. make time for what matters. pause your wifi with xfinity xfi and see the secret life of pets 2 in theaters. all right. welcome back 5:17 on a thursday morning dow futures are up about 70 points despite no immigration and trade deal with mexico yesterday though talks should continue today in d.c. the dow rising 207 yesterday oil is up just under a percent, but it's been a rough month for oil and oil and gas investors because oil builds the inventory numbers were absolutely huge yesterday. we saw oil take a big tumble on that well, staying with oil, royal dutch shell yesterday pledging to return $125 billion to investors over the next five

years. we sat down with shell ceo ben van beurden to talk about that and how the company is aggressively trying to placate investors who want more done on climate. so we began by asking him about the interest in renewables here's what he told us >> well, you can, but let me just go back to pressures and maybe the difference between the different companies. you know, we get a lot of -- i wouldn't say pressure but a lot of encouragement from our own staff as well to do the right thing as an energy company so what we are doing today is to say, not only will we sustain our upstream business which is cool for us. >> that's pulling oil -- a fancy word for pulling oil out of the ground >> that's right. we'll sustain that business, well through the 30s but on top of it, we will make sure that our more market facing businesses so integrated gas and

power, these businesses are very well positioned for the energy position we have a leadership position in most of them and we're going to extend that and going to disproportionately invest more in those businesses and that's how we position for the future. >> do you need the hydrocarbons to pay for the other stuff >> no, because if you look at it, the other stuff, integrated gas business it's a fantastic gas generator. it's a fantastic cash generator. power is the -- at this point in time so power is very much in the growing up phase and at this stage it will probably be cash negative for few years >> do you want -- i know you produce energy, but do you want to be a power producer one of your lieutenants suggested to me when i read it, does shell want to become a utility? >> well, we don't want to become a utility of the past. >> that's a bad word, slow growth, right?

>> if you look at the utility business of the past, it was boring very predictable a very stable type of centrally planned almost - >> highly regulated. >> highly regulated generating base to a customer, which in a way was also boring. you could predict what customers were going to do, et cetera, et cetera if you look at the energy provider of the future, the utility of the future it will be much more dynamic. supply is interruptible, but more renewables in there customers are going to be their own thing. they will be influencing the whole value chain much more. the whole trading piece is much more dynamic now you have a business that actually starts to not only be disrupted, but actually playing to our strengths that's why we said if this is going to be the fastest part, the fastest growing part of the energy system in the future, i mean, we have to understand how we're going to win in that part as well. >> we are "worldwide exchange," you are worldwide. end it on this, where in the world, u.s., europe, australia

australia, africa, wherever, where's the best place in the world to invest right now? >> in general, i think the u.s. is a very, very good place we invest more than 40% of our capital here in the u.s. $10 billion a year, year in, year out i would say another very good place to invest at this point in time is brazil it's one of the key opportunity areas for us going forward and i would say a very important place for us where we have placed a lot of bets is also going to be australia. where are the most growth prospects, it's probably in places like china. we see a lot of growth prospects still in the middle east and of course africa is going to be a very important area as well but right at this point in time, the u.s. is number one. >> all right u.s. number one. but if you need somebody to go down reporting on the beaches of brazil i'm happy to do that. ben van beurden, thank you very

much. of course we did more yesterday. you can see the full interview with our shell ceo on the website, cnbc.com. still on deck, the stock of the day. why stitch fix shares are set to pop as much as 30% when trading begins. and president trump's two hthats enorinr heating up aga ase reenev me tariffs on china truecar can help. it's great for finding a new car, but you already knew that. it's also great for finding the perfect used car. you'll see what a fair price is and you can connect with a truecar certified dealer. so no matter what you're looking for, there it is. this is how buying a used car should be. this is truecar. (upbeat music) ♪

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there's a live picture of president trump and the french president, emmanuel macron, walking in normandy, france. because 75 years ago today, 160,000 troops stormed five different beaches in france. it was the beginning of the end of world war ii. thousands lost their lives and today world leaders like trump, macron and others are there to commemorate the 75th anniversary of d-day if the president does stop and make some comments of note, we will of course bring those to you. hadley gamble is joining us with more on this historic day hadley. >> good morning, brian right indeed, it is in fact a momentous and historic day this is about honoring the past and also spinning it forward, about securing the future. that walk between u.s. president trump and the french president as well. they're expected to have a bilateral meeting later on today. i want to walk you through what we're seeing on the ground as many as 30,000 people are

going to be filing through this american cemetery here in normandy over the next couple of days they'll be commemorating as you say the allied expeditionary forces that stormed the beaches of normandy on d-day, 75 years ago today. when i talk about right here in the american cemetery there are some 9,000 and more americans laid to rest here. many of them perished on d-day that first day they know as many as 4,400 americans were killed in action. that was just the first day alone. as you probably know, we're not just talking about d-day but trying to gain a foothold in europe that took months and it's important to point out when we talk about this great crusade this 160,000 folks storming the beaches many were under the impression including dwight d. eisenhower himself that this might not be something that the allies were going to be able to pull off but they did as you know we are all living the way we do as a result of that. so an exciting day to be here.

certainly surrounded by not just many, many americans who participated in the fight, but so many folks from europe as well brian? >> you know, we're able to see some the veterans on stage right now, greeting president trump. there's not many left. i mean, many of these gentlemen are in their mid to late 90s i think i read last night there's a few hundred soldiers on either side 12 nations that participated in the operation, who are still alive. there are some of those incredibly brave folks what is the time line today, hadley it's 11:30 roughly there in the morning. some things have been done so what is to come >> absolutely, there's going to be a wreath laying ceremony. we know as i mentioned that the french president and the u.s. president trump are meeting in a sideline bilateral meeting one of the conversations we have been having certainly with the veterans and the folks that have brought them here to the services today is that their need to really get a grasp of the situation. they want to go down to the beaches, they want to walk amongst their fellow warriors

here in the cemetery frankly, i think one of the main takeaways as well, when we spin this forward a bit, brian. because one of the conversations that we have been speaking to, whether they're coming from europe, coming from the united states, is that they want to see this as a unifying ceremony and something that kind of lays a better groundwork for the conversation, not just with nato allies but be the european allies as well so a really good feeling that at least -- we have been here since 6:00 a.m., so we have several more hours to go. >> hadley gamble, thank you. we'll be right back on "worldwide exchange" right after this the first survivor of alzheimer's disease

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breaking news, fiat slamming the brakes on a proposed deal with renault what went wrong? phil lebeau will join us live. could new tariffs against china be on the way? president trump threatening just that overnight. oil alert. we are drilling down on crude oil's recent slide and where it's going from here it is thursday, june 6th and you're watching "worldwide exchange" on cnbc. ♪ a good song for today. thank you for being with us here on cnbc. good thursday morning. i'm brian sullivan stock futures are up 74 points right now, despite no deal with mexico and talks yesterday, the markets are optimistic

or reliant on the federal reserve to potentially cut rates coming up in june. oil by the way is paring some of the losses oil is higher by 0.8% but it had a big slide in the last 30 days. more on that coming. but first, some big breaking news and the big breaking story right now is fiat chrysler saying au revoir to a potential deal with renault. they're frustrated with france renault shares taking a steep dive down 7% right now phil lebeau is in mexico for a different story, but phil, i'm glad you're there and thanks for coming on. because this is a big story and your excellent reporting on this, where do you think the breakdown is with the french government or fiat's frustration >> french government as you take a look at shares of fiat chrysler, keep in mind when they put this proposed merger together the beauty of it in their eyes was that you'd have this automaker that would address different markets around the world and in the process

while the french government would have a stake in renault, the ownership of the fiat chrysler renault would have been reduced and ultimately looks like the french government said no, we want a greater stake in terms of the say of what happens with the future of renault announcing the fact they're dropping the bid of fiat chrysler it's become clear that the political conditions in france do not exist for a combination to proceed successfully not surprisingly john elkann,s the fiat chrysler said, you know what, we have other options on the table. we're not sure when we'll pursue the other options but at this point it's not with renault. those talks could be rekindled at some point in the future but don't expect it any time soon. as you look at shares of gm, ford and fiat chrysler, the reason we're here in mexico, they're all under pressure the big reason -- starting next monday the trump administration says that there will be a 5% tariff on all goods coming in

from mexico. as you know, one of the most valuable and most important goods coming from mexico into the united states, automobiles and brian that's why we here here today we'll be at the bmw plant later on this morning. we'll get their thoughts about what might happen. >> what a perfect day to be there, phil. listen, you're smack dab in the middle of mexico, halfway between mexico city and monterrey. but what a day because you have a german automaker opening up a plant in mexico to export cars, largely to the united states if that is not the perfect time to be in the middle of a trade fight i'm not sure what is. >> yeah. for bmw, they're caught in the cross winds here regardless of which way they go, they're in the target sights for automobile tariffs if they import to the u.s., the 3 series here, the potential of a tariff is one that could hit

the bottom line or ultimately hit the cost in the show rooms and then people say import the 3 series from germany. we know what the trump administration thinks of potential tariffs so to a certain extent bmw is stuck. not good options there. >> phil lebeau, thank you very much we appreciate it all right. also happening now, new developments in the two front fight with china and mexico. no deal on one for now and new threats of more tariffs on the other kayla tausche has more on this. >> good morning, brian start with mexico because that situation is live and ongoing. talks continue today after the u.s. and mexico failed to reach a deal yesterday on migration and border security. that would avert tariffs to go in to place on monday. officials from each country will hold smaller breakout sessions today. diplomats at the state department, attorneys at the white house, and other breakouts as well and this is all in hopes that progress can be made.

a senior administration official says to reach a deal, the white house wants mexico to accept asylum seekers otherwise bound for the u.s. and mexico said that's a red line. the white house wants mexico to accept the u.s. migration protocol that calls for potential migrants to remain in mexico until a judge hears their case this official said the president would like to see this situation wrapped up soon, but that soon will likely be after those 5% tariffs are put in place on monday mexico for its part said the discussion focused on the central america situation, not the tariffs. and that morning president trump speaking from europe said that the talks made progress, but not enough >> as you know, mexico was in yesterday, they're coming back this morning in washington they'll be meeting at the white house. i think a lot of progress was made yesterday, but we have to make a lot of progress they have to step up and they have to step up to the plate and perhaps they will. we'll see. they can solve the problem

>> and the president reiterated he thinks mexico wants a deal and that china wants a deal. he said if a deal isn't reached, brian, those last tariffs on the remaining $300 billion of imports will go into place. >> it may not be up to the president entirely of course as you know a lot of rumblings out there where congress may come into this what's the status of the gop does it look like they might put up a fight with the president on this matter? >> well, the official line until yesterday, brian, was that they wanted to wait and see how talks played out yesterday they wanted to see if their opposition was even needed now the white house is moving the goalpost they're saying talks will continue the senior official told me that talks could go beyond the end of the week and beyond today. so the deadline is being moved and that makes it really hard for republicans to say, we're going to wait until then and see what happens they have to figure out one way or the other. >> kayla tausche, thank you. well, joining us now is

brian gardner, head of washington, a big research firm and trading firm here's the thing everything you read says one thing which is this. mexico appears to not even know what the trump administration is looking for. is it possible to make a deal when you don't necessarily know what you're supposed to be offering >> it certainly complicates things, brian. you know, the proposal that the administration put out seemed to be rather haphazard, spontaneous if you want to use that word but it kind of came out of nowhere. and as cnbc and others have reported, you know, there were senior administration officials that opposed the proposal. so on -- for a number of reasons. so but it does complicate things for our negotiating partner because it's not quite clear what the u.s. wants. what we're going to want, how the goalposts are changing

it's tough on mexico. >> are we learning that president trump will do what he says i mean, there's always been this market view, brian, that well, he's not going to do that. because that could bring down the equity markets he loves looking at the equity markets. are we learning otherwise? >> you know, i think you have to go -- when you analyze trying to figure out what the trump administration is going to do and how they're going to be consistent with the 2016 campaign platform, i think you kind of go issue by issue. certainly on trade it was one of the signature areas for the administration they made a big deal about it. they kind of went against republican orthodoxy on trade. in many ways the president ran to the left of hillary clinton on trade and it's something that he feels that he has to follow through on trade and immigration. and with the mexico situation they kind of come and are joined

together so yeah, i think on trade you -- you know, we used to -- you know, ask do you take him literally or do you take him seriously. i would say on trade, you take him literally. and especially as we're going in to the 2020 election, he's going to have to show that he made progress on his 2016 campaign proposals. >> is it dangerous to be a united states company doing a lot of business in china right now? >> well, i think the ford news of the other day suggests that yes. there's been some speculation and chatter that we have the upper hand in china because we import more and there's only so much that we export and that china can't retaliate on tariffs. what we have seen with the ford story the other day is that there are nontariff retaliatory measures so yeah, i think it's a difficult time, a challenging time for u.s. multinational companies to be operating in

china. >> brian gardner, a pleasure. >> thank you meantime, washington's crackdown on silicon valley also beginning to heat up if you're wondering how it may play out here, the playbook may have already been written in europe elizabeth schulze has more on this >> yeah, good morning, brian europe is already playing the role of tough cop when it comes to tech regulation legal experts are telling me there are three key antitrust cases across europe that can offer clues about how doj and into big tech in the u.s. might play out let's start with the february ruling against facebook. this is following a three year investigation. the regulator ruling that facebook can no longer combine data from the separate apps like instagram and whatsapp without voluntary user consent this can set a precedent with the ftc in the u.s. because it

tackles data privacy and monopoly concerns in one case. facebook is appealing in germany. now let's look at a complain launched with the european commission this was in march. spotify said it's unfair that apple takes a 30% cut of most purchases made through the app store. spotify says it puts competitors at a disadvantage and apple said they're reasonable we are seeing lawsuits in the u.s. from app developers on this same issue finally, look at antitrust action against amazon here in april italy launched a probe into amazon. this is for possible abuse into the logistical services. that's an top of antitrust probes in germany and austria, as well as the european commission so one key point here is that regulators generally have taken the approach of fines and mandates to change business models versus ordering big tech to be broken up. that could set up a debate in washington where many lawmakers

are pushing for the breakup approach brian, back to you. >> thank you very much let's dig into the trillion dollar technology fight. the ceo of the patriot organization specializing in tech and media i'm going to say it this way all i can think about, eric, is that samuel l. jackson line in pulp fiction i will strike down upon thee with vengeance that who seeks to destroy my brothers and i wonder if facebook, google, whatever are underestimating the furious anger of capitol hill? >> i don't think they're underestimating because there's a road map for this. i mean, microsoft was dazed, they were crushed both from a leadership standpoint, but most importantly, what it did in terms of the focus of that organization and it really weakened the focus and put it into a position where i think a lot of players moved

in to areas strategically that microsoft could have probably dominated had they not been under such extreme assault so these kind of situations are intense. you have humans still at the top of the these organizations so the pressure of the power of the u.s. government is immense especially when they focus in and that's a concern and it's a concern for investors. >> well, you know, i loved your microsoft analogy because here's the risk is the risk greater that these companies are going to be broken up or is the risk greater that like microsoft, it's going to be so distracted and entangled with lawyers that it just loses its focus? could that happen to a amazon, to a google or a facebook? >> i think it will happen to some extent. i mean, you have great leaders at top of the organizations. so they'll attempt to do it but they're dealing with such challenges because the problems tend to go in these situations is -- it's wide open because you

start having the government look at every email every communication. and you don't know what else could open up and sometimes the potential liability that you think you're going to face could be 10 x based upon what internal communications you have. and how that then leads to further taxes on your leadership and the time that you have you only have so much time in a day and if it's a large portion of it is sucked up into dealing with depositions or how you're going to prepare, it's a problem. that's a risk for investors and it leaves you vulnerable to markets that you would normally dominate with the size and scale of these organizations >> definitely headline risks out there. maybe a couple of months ago eric schiffer, we appreciate it. see you again. thank you. >> thank you. still to come here on "worldwide exchange," cloudy skies and a fashion fix.

two stocks set to move in very opposition directions today. which side of the trade are you on we're back in fro minutes.

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welcome back the s.e.c. just passing new rules requiring stockbrokers to act in the best interest of investors. you'll hear live from s.e.c. chairman jay clayton on that 7:45 eastern well, it's a tale of two stocks this morning. so what the dickens is going on with the two companies

let's find out cloudera investors set to lose 30% of their money today news that the ceo will retire next month and also had light guidance could be a long day. the stock is down 34% right now. investors in stitch fix should have more money to buy clothes today. that stock is soaring 30%. the company raised the outlooks and stitch fix ceo katrina lake will be on cnbc today at 11:00 a.m. eastern time. on deck, sticking by the little guy the one part of this market that t essa istl yss il worth all your hard earned cash. stick around

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no group was hit more than the small caps they fell 8% on average. some much more but your next guest has been bullish on the small guys and remains so joining us once again is joel schulman founder and managing director of entrepreneur shares. welcome. good to see you again. small caps are great until they weren't but you're sticking by them. >> right. >> why is it worth our viewers' money still? >> there's a trillion dollars year to date, compared to last year it was at this time, $240 billion so we're running four times ahead if you look at proposed deals it's around 500 plus billion compared to about $130 billion last year. so m&a is showing investors get about 2% adjusted alpha based on the m&a transactions alone so i think based on the pull back there's opportunity interest rates are still low people are looking for opportunity. the stock prices right now - >> so we talked about the powell put. the idea that maybe the fed has the back of the equity investors out there. you believe that there may be a

deal -- the deals, that m&a could have the back of the small caps. >> i believe this. last year we had $4 trillion and we're running way ahead of last year if you look at terminated deals which i think is a key statistic, terminated deals are about $60 billion which is nothing compared to everything else i think a lot of investors need to look at the stocks that have great growth opportunities that have pulled back a lot in may and right now they're probably being perceived. >> there's the hard part unless you have somebody breaking the law, whispering in your ear, you don't know who will get bought. how do you whittle out the bigger prospects >> one of the reasons we like the entrepreneurial companies, they have concentrated ownership. they go to one or two parties they can do the deal quickly this is what we found to be true over the years look at companies that pull back strong growth opportunity, good balance sheets that enable companies to come in and take advantage of the borrowing capabilities and concentrated

ownership. moreover, if you're looking at a senior person who has been there a number of years and maybe -- >> getting up there in age fiat chrysler renault, we learned the problem with lots of people getting involved. no one can make a deal so you're saying aside from the normal financial metrics, the warren buffett stuff, look at who owns the company primarily. maybe how old they are you know, you have been there 20 years, maybe time to buy the yacht by selling out. >> well, we have seen this case in the last few years with for example starbucks. the ceos retired and started to spend more you will see that. consumption is going up. we like at the compensation, relative to the stock ownership. they're signaling to the marketplace it's time to start scaling back and doing other things so you will see a variety of the factors, concentrated ownership. selling off the stock. increasing cash compensation bonuses. maybe they're signaling to the marketplace. >> you think the market overreacted on a macro level in

may? >> yes, i do i think this is a buying opportunity right now. generally speaking it's a buy opportunity. >> i like that real world advice, not only look at the financial metrics, look at who owns the stock, the concentrated ownership i wouldn't expect anything less. thank you. all right, it's time for your morning rbi and today how could it not be about d-day, a day in history you know well but there are some very random and interesting things about d-day that you may not know. in 1944, more than 2 million troops from 12 countries were in england training 160,000 allied troops took place on the offensive, an offensive they were, the germans were so surprised by that rommel went home for his wife's birthday the guns of one of the allied battleships was so strong they broke the toilets on the ship just from the vibration. the military brass of england was so nervous that some of the soldiers would spill the beans about the surprise attack that

they sent women to the nearby bars to see if anybody talk and nobody did nearly 4500 allied troops would die in the invasion. many are still there in hallowed ground some of the early landing boats on omaha beach had casualty rates of 90% nine out of every ten men who went off the landing craft were killed or severely wounded in the first wave thank you to all of the veterans certainly out there on this d-day commemoration. not many left. maybe a few hundred in the world that were actually on those beaches that day, many of them are in the crowd that you're seeing where french president emmanuel macron is speaking and president trump may make some remarks in just a bit it's the 75th anniversary perhaps the last one that we'll have this many of those wonderful men that were out there risking their lives. so many gave their lives so world war ii could finally come to a close. all right. we'll wrap it up a bit early here on "worldwide exchange. we have dow futures up 71. a lot more to do with d-day, the

markets, fiat chrysler let's think about the veterans today. nt,sqwkox." 7pgñóo

good morning, again, today's top story, trade and the markets. the u.s. and mexico haven't reached a deal yet but we'll look to the futures. a new warning to beijing president trump says tariffs on china could be raised by at $300 billion if needed and no deal, fiat chrysler pulls the merger deal for renault and it's blaming the french government. it's thursday, june 6th. "squawk box" begins right now. ♪

live from new york where business never sleeps, this is "squawk box. >> and good morning, everybody welcome to "squawk box." we are live from the nasdaq market side in times square. i'm becky quick. our guest host this morning the shark tank's kevin o'leary here with us for three hours and we do have a lot to talk about check out the equities at this hour the u.s. stocks are coming off the biggest two day rally we have seen since january and we're looking at the green arrows again up about 61 point and the s&p is up by 8. the nasdaq up by 30. we have seen the dow up for three days in a row. the first one was a four-point gain still, the best day for the dow in four months of course that depends on what we hear from the job market tomorrow and then the s&p is up by 8 1/2 points from the