it is 5:00 a.m. where tens of thousands or more protesters taking to the streets. the police firing tear gas opposition of proposed ext extradition bill with the mainland we're live on the ground no lucky seven for stocks. they snap the biggest and futures are down right now the big, beautiful defense deal under fire new calls for united technologies to scrap its mega merger with raytheon kinning our week-long series on

falling interest rates call it a license to dream elon musk channeling 007 at annual shareholder meeting why musk is setting his sights on the deep blue sea wednesday, june 12th as "worldwide exchange" begins right now. all right. good morning, good afternoon, or good evening in asia and welcome from wherever in the world you're watching. i'm brian sullivan live pictures in hong kong mass demonstrations there. the chinese delayed a debate on a new extradition agreement with the mainland the citizens are not happy with that delay the police getting more aggressive moments ago firing tear gas on protesters we'll take you live to hong kong in a moment with more. first more with the set up with the markets and more yesterday breaking a six-day

streak and seven days in a row for the tech heavy index all the major indexes are, indeed, higher stock futures go down, yields go back down, again, as well. the benchmark ten-year note falling down a little bit to 2.16%. inventories are high and concern over global demand weighing on prices look at that wti crude now down 3% right now $1.65 a barrel keep in mind, opec is scheduled to meet two weeks from today will they keep up with that 1.2 million barrel a day agreement signs point to yes but we'll see that certainly could influence their thinking we showed you the protests in hong kong and see how the markets in asia are reacting and as you might imagine, they're not reacting well. the hong kong down 1.73% right now and we are seeing losses

across the board and all across the asia markets a similar story in the european markets. down across the board 0.5% and 0.75%. a lot of red on the screen on this wednesday morning the best of times and possibly not the best of times for your money. on one hand, it has been a pretty good year for the stock market the dow up 11% in 2019 that would make it if we ended the year today, the fourth best year in the last eight but on the other hand, the economy here and abroad could start to be showing some cracks. global manufacturing data showing some signs of slowing. so, the question is, which of these markets, equities or the economy are really telling the right story right now? chief economist based in london, excuse me, we're happy to have him here on a busy wednesday before we get to the markets, i know you used to work in the foreign office of the uk government, as well. you have geopolitical

background, as well. is there a way to gauge the economic impact of what we're seeing in hong kong growing protests there obviously, the protests over brexit maybe in the past but the anger is still there, as well. is there a way to gauge this, quantify this mathematically or economically >> thanks, brian pretty early day to be doing that but, yes, i guess the big issue here is ultimately whether or not the legacy that bush left in 1997 which is if one country but two systems remains in tact going forward. of course, that could, you know, if it could affect relationships between particularly the u.s., britain and china and, of course, that is another issue if you like that we could add to the whole list of growing issues between those. >> two ways this is going to go. the protesters will protest today, maybe tomorrow, the next couple weeks and the chinese government will suppress them and they will go away. or they will continue to grow

into something bigger because hong kong, they like their autono autonomy mainland is obviously running hong kong and in some ways they speak a different language they are a different people in many ways. if this were to grow, what would that say to you economically >> if it were to grow, it could cause all sorts of tension within hong kong itself. the biggest issue, i guess, in the longer term is what happens to the hong kong which has pin a beacon of stability in asia. >> does it fall? >> it could come under pressure but i think you would have to have certain combination of events for that to happen and that is still a long way down the road what we have to see is how exactly this works out because at the end of the day one country, two systems >> i'm asking you to go off script and i appreciate you. tear gas being fired and the police said they had to use a

weapon to suppress one protester, we don't know what that might be. all this is occurring as the united states is trying to negotiate a major trade deal with china i hate to call this a distraction, but you know what i mean if you're xi jinping you're dealing with trump and now you're dealing with this >> in some ways the pressure is building on china and you could see, for instance, this becoming another tool and another element of leverage, if you like, the west could use against china going forward asking it to respect, if you like, the existing system within hong kong but how the chinese react, of course, is, you know we have yet to see >> the reason you were here is to talk about the way the global economy is shaking up. we've got this shaping up, although shaking up might be appropriate, as well you have all this manufacturing data which is not weak, but good

g beginning to weaken. germany seems on the rise. is one of those telling an incorrect story? >> so, look, i think this year it has been puzzling for economists yes, there is a slow down in train. yes, the manufacturing slow down has maybe been a bit bigger than we expected. on the other hand, we don't see a recession ahead. a lot of economists don't and given that is the case, the behavior of the bond market in particular looks a little bit odd to some of us. >> odd or wrong? >> being an economist you always hesitate to say the market is wrong. on balance i would say wrong in, look, the risks are rising and the possibility of an insurance rate cut is definitely going up. on the other hand, you know, the basic situation of the u.s. economy is still reasonably robust 3.5% strong consumer and household and the bond market is

priced on a recessionary situation. >> we do appreciate your insight. perfect kct day to have you on. thank you. >> thank you. new this morning tesla ceo making what else, some bold calls at the shareholder meeting last night including a car that doesn't need a road, apparently. >> more on that in a moment. actually a little bit in the hour brian, elon musk taking the stage for production and demand that have plagued the company and the stock for months musk says flat out no demand problem. take a listen. >> the sales have far exceeded production and production has been pretty good so, we are actually doing well and we have a decent shot at a record quarter on every level. if not, it's going to be very close. but we've got a shot at a record

quarter. >> so, musk also says it won't be long before tesla has a car with a 400-mile range. the next vehicle the compact suv will reach production next year and the company is making progress in building its new giga factory in shanghai and actively searching for another site in europe >> it makes sense to have a car factory at least on each continent. this is a wise move. we'll continue to expand, i think, our activity in the u.s., but having to not pay tariffs and have the really long delivery chain and high transport costs will make the cars a lot more affordable to people in europe and in china. >> and finally he says that it won't be long before tesla launches the insurance product remember he teased that in april. last night he said they need to

make one small acquisition before that happens. the move to insurance has been panned from analysts and even warren buffett tesla shares are up less than 2% but still down, brian, more than 30% this year. i'll send it back to you >> we'll look forward to that car story. that submarine car storypen thank you. your top corporate story united technologies to scrap its proposed mega merger with raytheon front and center major united ceo bill acman he sent a letter to greg heys saying the deal makes, quote, no sense. we cannot comremend the strategic logic behind such a transaction. if the company goes forward, we will oppose it publicly, if necessary. not just him, fellow ceo holder

also opposes the deal. shares not reacting. they are both higher in the market utx up 1%. in the meantime the ipo rush continues. this time it is crowd strike getting ready for its public market debut they are a cybersecurity company and they priced their shares last night at $34 apiece above the expected ange. giving crowdstrike valuation of $6.8 billion trading under the ticker more live reports from hong kong where tens of thousands of protesters are now getting hit with tear gas from police who have apparently used some kind of a weapon on at least one protester, as well the protests there continue to grow plus, no fun and games here. a rough morning on tap for two entertainment powerhouses. the premarket actionhe wn "worldwide exchange" returns ♪

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continue to look for their freedom. get you more on this big and developing story throughout the day. it is not just about hong kong, as well, as always some big stocks you need to watch today. let's walk you through a few of them shares of dave & busters down 20% after the restaurant and arcade sales m s missed forecas. bar sales off 4% ceo says the company is simplifying its menu and making other quality improvements in the meantime french technology firm is buying medidata solutions it makes software for medical trials that is a slight discount to where the stock closed yesterday. medidata despite getting bought is down 4% nintendo falling more than 3% in japan. delay the launch of a popular

key game for its switch console until next year. nintendo did not provide any details at the e3 game expo in l.a. about a newer and cheaper version of the switch. nintendo down 3% still on deck, more of the dramatic pictures from the streets of hong kong mass demonstrations continue to take place we're getting reports of more clashes between the protesters and police we'll take you there live when "worldwide exchange" returns voi! voi! here in sales. even here! i'm talking about ai we can build to work... here, predicting trends. and here, wherever our data lives! and here, working with all our other ai! i think we're done here. expect more from ai. ibm watson. for adults with moderately to severely active crohn's disease,

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all right. welcome back your top story right now is one that continues to develop on the streets of hong kong multiple scenes there in hong kong of protests there were protesters are clashing with law enforcement. the commissioner of police called this a, quote, riot earlier. we have not heard from the hong kong administrative region remember, hong kong is a government, but a special administrative region where they have a chief executive, not necessarily a governor or a politician well, in the middle of that is where we find our own sherry >> that's right. the police security presence has been really growing and they have been trying to close in on to the protesters presence to

clear out the streets. as we are going in to 20 hours into this protest. some of the initial protesters camped out in front of the legislative council building here in hong kong. so, yes, i did detect tear gas and batons being used and some of the protesters being injured, but i'm sure it could be the same for police officers, as well so, what's happening here is really this public here in hong kong showing their growing discomfort over this amendment to extradition law to add mainland china to its extradition list and we've been seeing something like this, of course, you know, over the last few days what we saw on sunday is really the epitome of that. this is really the largest, biggest civil action by the people of hong kong since 2014 you will remember the umbrella

movement, as well. and, you know, at this point, we are not really seeing the government of hong kong backing down at this point as of yesterday, chief executive of hong kong government saying she's not backing away from this bill and she happens to have full support from the mainland chinese government, as well. we saw foreign affairs ministry of china actually had a statement out saying it fully supports this bill but let me talk about really quickly why you should care in the united states. first, it will concern not only hong kong residents, but also foreign passport holders residing here, doing business here or passing through here so, something that, of course, we need to remember. and, also, i think this really, this development goes to show how there is such lack of trust in the mainland chinese system the lack of rule of law is what the protesters are saying. and what they're saying is to

retract the bill and, of course, you know, some of the comments that we saw from the u.s. state department, as well, as saying china has capricious you additional system and i think that is the reason why we're seeing this kind of unusual movement of course here in hong kong but not just the people of hong kong really the business organizations, the human rights groups, lawyers and judicial professional including foreign governments including the united states brian, back to you >> chery, what exactly is it the protesters want? what would they be satisfied with >> they want the hong kong government to retract this bill because they feel it doesn't really, this amendment or the revised version of this bill really considers the human rights aspect and the judicial independence of hong kong. and, in fact, last week i spoke to the hong kong bar

association, the chairman and what he said was that not enough review is being done in terms of what happens after the ext extradition. so, a lot of concerns over the mainland chinese rule of law and judicial system on the other side brian. >> yeah, moments ago we saw a picture, chery, of protesters being hit with tear gas from the police i noted that the police commissioner has, indeed, called this a riot. we can see some of the protesters coming over barricades and swinging hammers at doors, et cetera. any indication this will end organically or will it go on until it's fully suppressed or the protesters get what they want could this take place tomorrow and friday and into the weekend? >> well, i'm personally anticipating for this story to drag on clearing my other schedules, as well

it's a fluid situation i don't know that. i don't have an answer for you i will tell you, though. when the hong kong police chief actually had that statement out calling what happened today a riot, just moments after the hong kong police really tried to use their stronger presence, using their tear gas, using batons and to really close in to protesters area and to clear them out so, it was quite effective in a matter of 20 minutes or so, that spot that we were basically reporting live all day we saw hundreds of protesters in our eye sight, but they were gone 20 minutes after. >> chery congress, stay safe in hong kong. it is interesting, folks we talked about china. if you go to the paper that comes out of hong kong, they talk about the protests. numerous stories that, indeed, they talk about potentially a

million plus protesters. if you go to the website of the peoples daily the leading newspaper based in beijing, the protests are no where to be found. go check all right, let's get a check on this morning's other top headlines. philip is in new york with those. >> after a braising attack big papi is taking his first steps after a second surgery david ortiz is being treated at massachusetts general hospital he will remain in the icu where his wife says he is resting comfortably. gary suhas been charged with attempted homicide donald trump jr. will be on the hot seat grill the president's eldest son behind closed doors. much of the hearing will focus on the infamous trump tower meeting and the tower project in mouse cow. a man is facing charges after leading police on a wild chase in a stolen mail truck it happened near daytona beach

officers say jesse est, peep swerving into a guard rail and the truck veered off the highway and rolled over. he wasn't hurt reportedly telling officers he was on meth, brian, when he was arrested. >> you have to be on something if you're going to steal a postal truck and hope to get away top speed is, what, 45. >> that's about right. some sad news in the economic to report martin feldstein died yesterday at the age of 79 simultaneously serving as white house of the council adviser under president reagan, later serving as an economic adviser under presidents george w. bush and barack obama he also served as the president

of the national bureau of economic research from 1977 to '82 and, again, later on he is survived by his wife and two daughters and our thoughts are to the martin feldstein family dead at the age of 79.

coming up here at 5:30 a.m. on the east coast. good morning, here are the five things you need to know. big breaking news out of hong

kong for a second day police clashing with demonstrators on the day and tear gas has been fired. we'll have the very latest on this developing story straight ahead. two, wall street, the dow anyway, breaking its longest winning streak of the year but tech staying hot three, bill ackman playing defense on a defense deal. why he says raytheon need to scrap their merger top man just issuing a big warning to big tech. and, five, elon musk taking a page right out of james bond why he is setting his sights on the ocean. details on all these stories coming up and futures are lower right now and you're watching "worldwide exchange" right here on cnbc. all right. so, good morning and welcome or welcome back from wherever in the world you are watching i am brian sullivan. this right now are live pictures

out of hong kong because all morning and all evening there, police have been clashing with demonstrators there. there are mass protests. the estimates of the number of people range anywhere from tens of thousands to 100,000 and the south china morning post saying it could have been as many as a million plus they are protesting a bill that is proposed by the mainland chinese government and the hong kong special administrative region that would extradite people in hong kong to the mainland for the hong kong protesters do not want this. remember, the idea behind hong kong is really one government, but two systems. now, as these protests continue to rage on, hong kong's market tumbling overnight falling 1.73%. down right now for the week down a bit, but hong kong certainly is a market to watch and, obviously, we'll continue to monitor this developing situation and bring you more as we get it. chery kang live on the streets

there. there is news out of hong kong including a big warning for big technology the anti-trust chief says he is ready to act to protect competition in a digital marketplace comparing to the standard oil monopoly of john rockefeller. the latest in a string of warning shots being fired across the battle of big tech is anything going to come of it? economic policy analyst at the american enterprise institute and a contributor, as well jimmy, okay. so, yesterday, i don't know. i'm looking for headlines. was it all heat and no light did anything really come out of these hearings on capitol hill yesterday? >> i think what came out the newspapers are very unhappy with their business situation would love to get some help. whether it's these cash flush tech companies giving them money or something else. but they sort of ignore the reality that ultimately the

internet that has disrupted their companies and perhaps, you know, wikipedia should be cutting checks to the encyclopedia companies they were disrupted and some have survived and some have not. what you have seen happening is congress is trying to set up a situation where they see these companies as a problem and something must be done whether it's regulation or anti-trust. >> something must be done. is that something, jimmy, maybe just showing the constituents, the voters, that they're angry and doing something and they're having hearings but any real anti-trust action. doj, ftc, whatever itacronym anything really going to happen? >> i think it's more likely congress does something because overlap among democrats and republicans that big tech is a problem. in fact, you notice republicans -- the argument used

to be the companies are bias that's not really something you're going to legislate, but they began to adopt the democratic arguments bout privacy and concentrated corporate power and done particularly in privacy. i think you could very well see that to be the case. some of the companies like facebook are pushing for legislation on privacy and prevent some more of the severe action from taking place i think that's more likely than anti-trust because despite what we heard yesterday, i still think it's very hard to break these companies up given current u.s. anti-trust doctrine >> i find this interesting that you have these hearings on capitol hill and across the news media, including this network. you have some of the participants coming out and saying they're upset about this or upset about that, but don't tell anybody jimmy but these stocks are higher this week. the market doesn't think anything is going to happen and doesn't appear to care >> the stocks are higher if you look at the popularity rankings talk about the politics of it. if you look at the rankings of

these companies. people like youtube love google and they love amazon prime they like going on facebook. these are companies which are in our lives still remain wildly popular. and i still think if you look at polls, the average voter, the biggest problems facing america is not that amazon is delivering their packages too quickly >> yeah, in fact, yesterday the story is that amazon has the number one brand, especially, you know, recognition or otherwise brand value, if you will, among everybody. they apple and google. amazon which is being raked over, i don't want to say the coals, but maybe a hot stove, if you will meantime, the public loves it. >> right so, this issue is very super, super popular among activists really on both sides and people who are sort of losing the battle to these companies. but, remember, anti-trust law is not there to protect competitors or protect business models which no longer work

that is not the purpose. and that speech yesterday on anti-trust, i interpreted that as really saying that current anti-trust doctrine can handle these companies and we don't need some crazy new doctrine based on these companies are addicting us or they're suppressing innovation which i think its arer very difficult to prove. >> jimmy, thank you very much joining us live from d.c. in trade news huawei is pulling the plug on a new laptop the chinese telecom company will no longer be making the matebook because of america's blacklist on huawei. t the u.s. blacklist effectively bans intel and microsoft from selling their products to huawei the consumer division calls the move, quote, unfortunate all right. switching gears. what do james bond and elon musk

have in common aside from being, you know, suave and debonair fellows time for top trending stories. >> as are you. any time elon musk speaks, we pay attention. taking a page right out of james bond's playbook. listen to what he announced at last night's shareholder meeting. >> i think the market for this will be small. small but enthusiastic so, but we actually do have a design for a submarine car >> so, what he is describing there is the car is similar to this one from the 1977 james bond movie "the spy who loves me." no word if the aquatic car would come with any of james bond signature gadgets. brian, one question for you. do you swim? >> do i know how to swim i do know how to swim.

>> you're suave, debonair and know how to swim you have it all. >> i can swim and also like to have that lotus. >> you would like to have that apparently, a small but enthusiastic market for it >> somebody gives me one i can't afford it. major sign of the times for your kids because the big study of tweens finds fortnite is especially the case among tweens who named it platform. according to the study, fortnite's 200 million players spend 21% of their free time playing the game >> kids, i have a teenager she's not into fortnite and i know parents need to remove the video game system. i find it ironic that the social platform is the game where your whole goal is to kill everybody else and be the last one standing and ironic and troubling and do it again. in sports, brian

a lot of people talking about this one the u.s. national soccer team dominated and crushed their first match of the 2019 world cup. they outscored thailand 13-0 that is a new record for goals scored and margin of victory in a world cup game for men or women. the u.s. will now face off against chile. sunday at noon lloyd spoke to the goalie and said, keep your head up. you did a great job. you should be proud. a lot of people can relate you feel awful when you lose like that. >> it is but i like they kept the foot on the gas pedal. they want to win this thing and nice to have a team in the world cup. >> touche and good sportsmanship. all of those things. >> thank you coming up, more on the major developing story out of hong kong police clashing with demonstrators on the streets we will take you back live where tear gas has been fired. "worldwide exchange" and dow future down 67 and we're back after this heart...

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lt we're back good morning we are continuing right now our week-long special series on the rate shock today we're looking at the big drop in interest rates could be a big deal for the banks >> reporter: banks and rates here's why, typically banks

borrow more without necessarily having to pay savers more. boosting their net interest income-on the flip side, lower rates means banks can't charge borrowers as much. as well as the level of rates the shape of the curve is also important. banks typically borrow short and lend long so their net interest margin is bigger when the yield curve is steeper given that the short end of the curve is currently already inverted an interest rate cut will improve the shape of the curve for banks but still hurt the level of rates the net effect lower net interest income and maybe not as much as feared because of the shape. also, we need to consider fee income that's generated from things like trading, mna and wealth management if a rate cut boosts the economy, fear income might rise. the bottom line, low rates are not specifically welcomed by banks, but there's lots at play

and if it leads to boosts in the economy, then the banks won't be complaining for long lall right. joining us now a man who invests in banks and has been doing so for 20 years in fact, the 20th anniversary of your big fund and you're up over 20 years 861%. >> that's right. seen a lot over those 20 years >> s&p up 280% in that time. >> that's correct. >> made a lot of money for your shareholders and investmenteors >> been a long run and a good run. >> you have done it by buying the small and not the jpmorgans of the world not the ones we see on the street corners around our town how does this drop in rates affect them? what about the stocks? >> the one thing he did leave off is mortgage fee income pick up from a refi perspective. credit quality continues to remain pretty good because less

pressure on companies to meet interest payments as rates drop. the consumer has more money in their pockets and go out and to save and spend lower rates, the shape of the curve is important, it's important over time. not instantaneous. if you listen to companies at the morgan stanley yesterday, loan growth is good and no big hit to earnings, at least in the near term. >> overly simplistic okay, if interest rates fall that's necessarily bad for mid-size banks >> yeah, i think if interest rates fall it isn't bad for every mid-size bank. it depends on the type of business they have mortgage business very helpful and deposits have been rising very rapidly. and banks have had to pay up, you know, matching what the fed has done and the last couple rate rises most banks didn't get expanded margin. little bit of drop in deposit cost is helpful and we've seen that pressure off and we've seen

markets for some of the big wholesale deposit gatherers start to gather rates and puts less pressure on banks >> do you dive into the balance sheets of these banks and try to figure out who has the heaviest mortgage book? >> that's part of it certainly on a short-term basis you want to know who got that and who is going to benefit and servicing rights and how those affect income statements mortgage business can be robust. >> i know i go back to finance one reason your fund is up 861% over 20 years, not too shabby, you're able to spot banks that get bought >> right well, and this is an industry that is basically, it was 15,000 banks in 1990 and today a little over 5,000 i think this industry gets cut in half again. >> from 15 to 5 to 2,500 >> that's a reasonable assu assumption >> why does a big bank want a smaller bank >> the biggest of the big

doesn't do it any more you look at suntrust and merger of equals where they save $1.6 billion. the ability to reinvest in technology for them is really, really important scale does matter. at the end of the day, you end up with two types of banks jpmorgan and the really big, we can do everything for you and then the community bank that knows every one of its customers. the ceo knows everybody in its town >> you made some money for investors. where are they coming up with these names? >> some consultant somewhere made some money. you think you will make money for your shareholders on these two names. >> chief financial officer is and i recognize, he was at green bank which got bought by veritex. it's in texas, a lot of good immigration of people to texas and lots of good growth. houston and dallas, nice franchise.

a lot of people would like that franchise. so, you know, they have optionality. fundamentally and everybody would probably like that company. ameris are in florida and georgia and a transaction close later this month with a bank called fidelity and they have one of the nicest branch footprints in atlanta. >> just opening the door >> just goeging to be a great market traded 7.5 times earnings. >> i know you like pinnacle financial, as well 25-year and 860% over 20 years not bad. great to see you, anton. >> my pleasure. headed back to hong kong where police continue to clash with demonstrators and turned a little bit violent live with more on the ground with this developing story, next

all right. welcome back 5:50 here in the east. we're following major breaking news out of hong kong where police continue to clash with demonstrators. the police presence very heavy let's get back to chery kang live on the ground in hong kong. >> thank you very much, brian. as you can see behind me, you don't really see protesters, you see heavy police security presence behind me and we've got some fire service ambulances lining up. so, basically, this is what we are seeing as the police is really picking up and they're clearing out effort, you know, just telling from the past protesters that we've seen in hong kong. the police intend to clear out the streets and clear out the

protesters off the streets, especially when it comes to central businesses district of hong kong. ahead of the time that people actually get out of their office and go home. and we did see some violence here and there and as i have been tweeting and, of course, posting on my instagram a lot of usage of tear gas and batons and steel bars to really get the protesters out of the streets and, also, we did see some protesters turning violent, as well picking up bricks that you use against the police officers. now, the police chief actually had the statement out calling what happened today a riot and, you know, basically saying that the protesters caused the city inconvenience and, you know, to explain the reason why the police decided to clear out the streets. brian. >> chery kang live in hong kong. stay safe. thank you very much for that from an equity perspect sk, the hong kong market closed

overnight fell 1.7%. two etfs you need to watch stocks and etfs will have some kind of impact ewh u.s. traded follows hong kong stocks. that is down just under 1% and then the big fxi that is probably the largest of the mainland china large cap stock etfs that is a live trade that is down 1.4%. all right, let's talk more not just about this, but about the world generally with a guy that travels the world and invests in it. ceo of london based investment and we appreciate you coming on and talking. >> thank you for having me >> we wanted to talk about the global market, brexit. they might start back up, again. growing unrest on mainland europe now you've got this in hong kong is there a way to price in the costs of unrest at all >> so, to some degree, there is. higher risk.

if you go back 20, 30 years where we're used to political, not unrest, but political destruction and then we got used for a long period in which the world was stable and not withstanding the crash because essentially that was not based on political destruction increasingly, we've seen political destruction and political destruction hits in two ways one, you have protests which gives instability and the other one is that it can change regulation and that can matter >> in a good or bad way? >> it can be both. to some degree the fact that there is some fengz tension bet the executive and the fed is a way of dealing with this political unease on how the growth is being distributed to everybody in the country the same you go to italy the fact there is the unease about immigration. in hong kong, they don't like the fact that they're being brought tighter into mainland china. all it says is that be aware

more destruction likely. it's like any other kind of volatility you price it in. >> you have an investment team in london and majority owned and you're dealing with clients. they call you guys and your team up and say, i'm nervous about this should i sell stock and be invested when the world is angry? >> so, our answer is, it's about time horizons. our clients by and large are very long horizon clients. when we say to them mostly short-term volatility does not affect the long term mostly it doesn't. it's opportunity what we say is don't lose your nerve because the short-term volatility concentrate on what you're doing. but understand if you go into developing markets, it's not the same as investing in the united states or in mainland europe it is more volatile. so, expect the volatility to come more. if you're investing in the united states, it is stable but the growth is not as great understand there is a tradeoff, right? and as long as you know that

you're prepared for it, you could ride the volatility. >> if we get a hard brexit -- >> i think the uk will slow down quite a lot. a lot of people disagrooewith th this i don't say this from a political point of view, it's just the numbers the numbers are the numbers. look, the reality is both sides have become almost religious about it if you look at the maps, a reasonably severe slow down. >> quickly, what is the most important thing on your radar right now. >> the most important thing on my radar is what happens to growth in the united states and whether the united states and china come to a trade deal they're both playing chicken with each other. let's hope one of them blinks. >> let's hope that, as well. if you're xi jinping, you are dealing with this protests and a bit scary. we'll bring it back and we have this big hong kong story,

as well. dow futures down 82 points and "squawk box" will ck upip your coverage on that developing story out of hong kong we will see you tomorrow hey! i'm bill slowsky jr.,

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good morning the streak of winning days was snapped and futures are pointing to a lower opening this morning sold off into the close yesterday. the dow breaking its longest winning run, winning run in more than a year after being up triple digits yesterday morning and a lot of the session tesla takes off. shares trading higher after elon musk reinsures investors about electric car demand. no thank you while wells fargo is having a hard time finding a new ceo. it's wednesday, june 12th, 2019.

"squawk box" begins right now. ♪ >> live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" on cnbc we're live from the nasdaq i'm becky quick and andrew is off today. watching u.s. equity futures at this hour and things are looking like we would open down. dow futures down by about 80 points this comes after yesterday where you had seen the gains give back in the course of the day actually closing yesterday's session near the lows. the s&p indicated down about nine points right now and nasdaq off by 39 and yesterday was the first time in seven days we had seen the dow close lower if you're looking at the gains that had been built up, at this point for the month of june, we already erased about 70% of the losses that we saw b