surging coronavirus cases over the holiday weekend as states struggle to get the upper hand on the outbreaks and the oracle of omaha makes a very big deal as berkshire hathaway buys dominion energies in a multibillion dollar deal it is monday, july 6th and you are watching worldwide exchange right here on cnbc

good morning and welcome to the show i'm dominic chu in today for brian sullivan let's get to the money and markets how they're setting the day up solid gains. you can see here dow futures indicated higher by around 400 points a nice move there. the s&p 500 up by 44 points and the nasdaq up by 150 turning now to what's happening with the bond market the yields moving higher currently at 69 basis points or 0.69%. the two year note about.16% and the 30 yearlong bond 1.45% as

well >> very strong from the starting position and you can see that now that translates to gains of less than 1.8% on the ftse and typically it's been one of the underperformers but you can see out in front today the u.k. stock market not the 2% but also getting back some of the territory has been the german dax, 1.5% you can see it suggesting a broadening out of this rally

around coronavirus it's up 6.9% we had the resignation of the chairman and the ceo activists want job cuts. the unions had success against the management team and now the management team left a stunning report over the weekend. they failed to turn a profit from at least 2016 but that's fine because the asian business but the asian business is where the 1.9 million euros have been missing through. thank you very much. now to the on going coronavirus outbreak here in this country becoming worse over the 4th of july weekend

several states reporting record number of cases amid surging outbreaks but the trump administration continues to push forward with it's bid to reopen the american economy alice joins us now from washington good morning good morning, in the hardest hit areas leaders are warning that the virus is moving faster than they can to contain it. in miami the mayor saying that they are having exponential growth there while in houston. that city's mayor warning that hospitals could reach capacity in two weeks >> this morning concerns over how a holiday weekend of partying could add to a record breaking surge in coronavirus cases. while others shut them down and banned large gatherings. a mixed response to mixed messages president trump down playing the seriousness and blaming increased testing. >> by so doing, we show cases,

99% of which are totally harmless. >> not backing up that unfounded claim. >> i'm not going to get into who is right and who is wrong. those data show us that this is a serious problem. houston is among the hardest hit. a month ago 1 in 10 people were testing positive and now it's 1 in 4. >> the mayor of phoenix says the state reopened too early. >> we were one of the last states to go to stay at home and one of the first to reimmerse. >> the trump administration insists the city can continue to reopen safely. we are far better prepared to

deal with those now than months ago. >> officials urging personal responsibility to control the spread while many medical experts call for a national strategy >> president trump is also saying a vaccine will likely be ready long before the end of the year he would not back that up promising no vaccine will be released until it's proven safe and ffective that's berkshire hathaway announcing it's buying dominion. spending 4 billion including the assumption of debt the deal totals almost $10

billion and marks the first major purchase from berkshire since the coronavirus pandemic and subsequent market collapse in march amid that deal, dominion is pulling the plug on its atlantic coast pipeline project with duke energy and uber reached a deal to buy post mates the 2.65 billion dollars deal will be announced as soon as today. reports of the potential union first surfaced last week after uber failed in a bid earlier this year to acquire rival food delivery company grub hub. back to you. >> everybody trying to catch door dash there. let's turn back to the markets as wall street looks to build on last week's momentum despite the concerns surrounding the

coronavirus. do you feel comfortable right now given what you have seen >> i haven't been comfortable in 25 years there's nothing to be comfortable about. you have to be aware that at any point you could have a pull back in the marketplace.

so one of the things that i have been talking to investors about is convertible securities which is the midway point we inquirity exposure and not taking as much risk in the underlying equity. >> so i want to stop there because we're talking about convertible bonds. convertible bonds just for those -- we know many viewers know what they are but for those that don't they're like hybrid bonds. bonds with a conversion factor that lets you get stock at certain points in the bonds life it's a hybrid. if that's the case, does that mean you're taking a very hedged approach to the market if you miss perhaps some of the rally here and you want to get involved, this is perhaps a good way to get involved because you had more down side protection in the event that you have a pull

back in the market because you typically have about 50% of the down side participation of the underlying equity while still preserving 70 or 75% of the upside so you're taking a view on the market plus the convertibles universe today is over 50% in technology and health care. which is the part of the market that you want to stay weighted too. that use of technology because of all the different ways that we're living and talked about that before and within health care, clearly a cure to this pandemic resides in our health care system

what would you say could take this market down thanks to the fed or bank of japan and everybody else out there >> look, we had an extraordinary decline in the first quarter. at any point in time it could impact stocks and of course we're in an election year

how far down could equity prices go. >> it could be the put that everybody is looking for right now. thank you very much. always great to hear your thoughts. >> thanks. >> when we come back on the show, the united kingdom set to make a major policy u-turnover huawei's 5-g high speed wireless network in that country. we'll go overseas for the latest on that story. plus boeing looking to take the next step in it's bid to bring the boeing 737 max jet back to the skies. the next hurdle the company now faces and pressure mounting on washington's football team to change it's name with minority owners now apparently looking to sell their stake in the team, a very busy hour still ahead when worldwide exchange returns right after this save hundreds on your wireless bill

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welcome back to the show we're exactly 12 hours ahead of us 5:15 p.m. hong kong local time there. the next big hurdle of bringing back the boeing 737 max jet could come this week the wall street journal reports another government test flight

is set to assess the safety on that aircraft. pilots conducted three days worth of test flights. the faa order that grounded the planes in march of last year could be lifted in september sometime once they're finalized and completed. it could be authorized to carry passengers by the end of the year the shares are focused. the wall street journal reports amazon and facebook and googles parent company alphabet face a slew of alleged anticompetitive behavior they would have to take more taxes and responsibility for illegal content on the platforms. the european unions anti-trust chief has outlined a

comprehensive plan for technology companies instead of applying existing laws they want to work with eu regulators and are concerned with elements of the particular proposals. you can see all of those shares up in the premarket trade. turning to now a developing story involving huawei the united kingdom is preparing plans to phase out equipment from the chinese telecom giant good morning or afternoon to you. >> good morning to you well, what's interesting about this story is that the sunday newspaper is reporting boris johnson's government is looking to tell the nation's carriers to stop b stop buying huawei 5-g and this marks a major u-turn toward huawei given back in january

to be apart of the nations 5-g networks in a limited way. what has changed new u.s. sanctions in may. chips made with u.s. equipment and software seems to be the big change one of the branches of the british intelligence agency. that's now in the hands of government ministers untrusted equipment. if it's not able to get it's hands on equipment and that could create security flaws and huawei has responded and is open to discussion with the u.k. government have oversight over it's technology as well what implications this has for huawei now and other european nations looking over at the u.k. and what moves to make when it comes to their 5-g networks. one thing for certain is a big growth for huawei and what is a

round two decade still back to you. >> so let's take us through the next steps here. is this move significant enough to have ripple effects across other countries. who are also looking to use huawei technology in their 5-g wireless networks as well. >> it certainly could be this is a branch of the u.k. intelligence services and their recommendation is that they feel that huawei equipment is not safe that's something that other nations will be looking at very closely. the u.k. made their decision to allow huawei to have a limited role in it's 5-g network because they were happy that they could mitigate the risk and handle the risk if they're changing their view on that. that could have had an effect in the u.k. and elsewhere you also have the u.s. government continuing to

pressure them. that could have an effect as well thank you for the update on huawei and the u.k still on deck for the show, facebook looking to take new steps to address the growing backlash mark zuckerberg and other executives are set to take part in that's coming up still ahead. hey! lily from at&t here. with some helpful tips. tip #1: you can currently get the amazing iphone 11 for half-off on at&t, america's fastest network for iphones. second tip: you can put googly eyes on your stuff to keep yourself company. uh for example, that's heraldo. he's my best friend.

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now is the time to support the places you love. spend 10 dollars or more at a participating small business and get 5 dollars back, up to 10 times with american express. enroll now at shopsmall.com. what you're seeing right there say live shot at new york city that's times square. always quite this time of the morning but especially so during the covid-19 error things will pick up a bit during the next couple of hours or so let's get a check on this morning's other top headlines. not far from there in the newsroom with the latest. >> good morning. >> there's also a violent holiday weekend here in new york city police say at least 42 people were shot and at least 9 of those victims died nypd says most of the shootings occurred within a 15 hour period

a judge scheduled an arraignment and bail hearing on friday from the long time associate. the 58-year-old was arrested at a state in new hampshire yesterday. helping them recruit and abuse underage girls new hampshire has agreed to be moved to new york. federal prosecutors say they expect her to be transported early this week. she faces four charges in connection with transporting a minor for criminal sexual activity maxwell previously denied any wrong doing. and finally kanye west is running for president. the multiplatinum rapper announced he's making good on his 2015 promise to run. previously he had been vocal about his support for president trump and while it's unclear if he is serious he already has a couple of billionaire backers. elon musk and mark cuban both voiced their support vegas has his odds at 66-1 that's about the same chance

that vice president mike pence has at winning the election. >> i thought maybe that's a little bit expensive but what do i know i'm not the book maker out in vegas right now. >> it wouldn't be the craziest thing to happen in the year 20. >> 2020 is certainly shaping up to be an eventful one for sure thank you very much. we're still on deck for the show let's make a deal. congress preparing to try to reach an agreement on more stimulus amid the coronavirus outbreak he's breaking down what needs to be in the package. that's coming up nt.ex plenty more worldwide exchange is still ahead

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futures pointing to a strong start to the week as investors look to build on wall street's winning ways warren buffet's berkshire hathaway buying dominion energy's natural gas assets we'll tell you why this is noteable plus the washington redskins look closer to changing their name after years after controversy and a major company could be the deciding factor in that it's monday, july 6th, 2020. you are watching worldwide exchange right here on cnbc. welcome back to the show i'm in for brian sullivan today.

these gains hold into the opening bell the s&p by about 42. and now that positivity is also translating into treasuries as well people are selling the safety of u.s. government bonds pushing yields higher. the benchmark 10 year note yield around 69 basis points or .69% the 2 year note yield arou around .16%. as for the global markets, europe, again following asia's lead seeing plenty of green across the board as you can see there. shares in mainland china are surging with the shanghai composite soaring 6% you can see the european trade following suit as well leslie is back with some of those. let's start with facebook this morning.

this social media giant grapples amid calls for the company to do more so crack down on hate speech targets higher starting minimum wage is now officially in effect as of saturday the company will pay workers at least $15 per hour the retailer first announced plans in september 2017 to raise it's minimum wage to that amount by the end of this year. >> new york city will enter phase three of the reopening but without indoor dining. this includes resuming personal nail services including tanning salons and massage parlors >> thank you very much for that. >> lawmakers in congress are gearing up to hash out around round of aid to help americans and the u.s. economy amid the continued coronavirus outbreak

lawmakers are stuck on what exactly the next aid package will look like and how quickly it may arrive. this as morgan stanley warns that the biggest risk it sees for the markets is if that package, that package of aid falls short saying that it may take a quote market wobble this month to get the package over the goal line. for more now i'm joined by american enterprise institute, economic policy analyst and he is of course also a cnbc contributor. so we heard so much about the fed being the driving force behind the markets and arguably the economy right now but we are turning a very watchful eye to the fiscal side of things. is it that key to the economic recovery >> yeah. i think that it is important you're speaking about the fed. clearly chairman powell thinks it's important he was very, very strong at least for our fed chairman

i don't know if you saw late last evening, wall street standards are very sarcastic goldman sachs report about the u.s. economic response to this crisis if we're having the same conversation a month from now, what's going to be in the package. how big it's going to be a market reaction is certainly -- i think that's possible we all think about the days of the great financial crisis when we would watch on cspan intently and votes yay or nay from the congressional chambers and the dow dipping with every particular move. how much more do you need. >> we already spent a lot. >> i think they'd be personally

happy spending maybe a third of that, a trillion dollars as you saw that good jobs report they're already raising red flags about spending a lot of of money. there's a lot of concern and they're very confident and at this point given the nature of the recovery and hurting job growth and they'd like to cut that back and phase it down a little bit and maybe provide it back to work but they think what democrats want is too much they don't want to spend money on state and local governments and they think the jobless benefits at this point are too rich. >> so those are the contentious points here. if you are crafting this legislation and you're obviously talking to people around the beltway about it, what exactly then needs to go into any potential stimulus package on the fiscal side of things to get things going what are the most important parts if you really had to say

we could only deal with these particular points. >> right especially given sort of resurgence of this virus in a way that hurt q-3 or q-4 growth. you might want to have a back to work bonus and cut that $600 down to 400. you'll need at some point more for small business republicans hate this idea but you're going to have to help states and cities which are really getting crushed you're going to see more lay offs that's going to hurt their response to this virus. so those three pieces in particular need to be done before you start thinking about the longer term supply side aids like tax cuts. >> so here's the big question that's facing a lot of folks because we do know that we need more aid we know that the american economy is still in a cast and needs to get itself healed again. do debt and deficits matter.

who do they matter more to at this point it unfolded in washington d.c. >> people are going to be skeptical of this. there's a surprising number of republicans that still matter. more stimulus, more checks i think democrats, they don't matt matter and i think an important slice of the republican party, they don't much matter today. they don't much matter today we'll see if the markets care about it the day after tomorrow. >> what's your thought then. markets aside. the economy does what in terms of growth for the second half of this year in the first half of 2021 >> clearly the third quarter is going to be a huge crazy number

about this pick up after that you have to wonder both and it would give you a much better answer this is an economy stuck on the macro side in a low growth trajectory at some point it's going to return to that after it returns to kind of a bump from stimulus or before it really matters what we do right now on the spending side but also on the health care response side. they need to do it >> it sounds like there's a lot that needs to be hashed out still. that debate rages on in washington d.c thank you for joining us this morning. >> have a good day. >> coming up on the show, warren buffet's berkshire hathaway just made it's first major purchase since the coronavirus pandemic we'll tell you all about

dominion energy's natural gas sass sets. some of this morning's other top headlines. uber agreed to buy post mates in a $2.7 billion all stock take over deal. that deal expected to be announced later on today microsoft, amazon, alphabet and facebook donated almost $15 million to democratic political candidates and less than $3 million to republicans that means 84% of the money has gone to democrats so far that's up from 68% back in 2016. the united kingdom reportedly plans to phase out huawei gear from its 5-g networks. now this would be a policy change for the british government and comes after the u.s. introduced new sanctions in an attempt to cut the chinese company off from key chip suppliers. big deal there stay tuned you're watching worldwide exchange rig he cc.hteronnb

>> welcome back. we turn to a story at the intersection of sports, corporate america, politics and culture. after years of controversy, the washington redskins look closer to changing their name officially this has been years in the making right now how close are we now to an actual action on that front.

we are getting much closer they worked on several and that there were a couple in particular and given details on the names but he said it would be awesome if they could do it by the start of the new year that's just a couple of months ago. when we talked to league sources yesterday, they said that look, there's nothing stopping them from getting this approval and it would just be a matter of finding the proper trademark is this going to be confusing with another team out there. another sports team. so generally speaking things take a long time because of money. companies like nike or adidas or whatever they are usually they're the ones that can put the brakes on. and you might see an actual change happen very, very soon.

>> this particular move here with the redskins is obviously a big deal >> we're showing the valuations now. what does this mean development wise for other teams in professional sports leagues that also have names tied to native american tribes and or affiliations i think of the cleveland indians. i think of the atlanta braves and the chicago blackhawks, the florida state seminoles. there's a lot of these names out there. what does this do for that conversation or those conversations in particular. >> there's so many of these names out there. the redskins are the most prominent because of what the name is. what the ownership structure is like in terms of dan snyder and his relationship with the community and his stubbornness to stick with the name but a lot of college teams have

names that like you mentioned many colleges have already changed their names in the years and decades past more and more of that has been changed as ell you'll probably start to see more of these. the redskins are probably the most prominent one they are the most valuable nfl franchise, right so that's. and the washington redskins and that's not the case anymore. it's how they're dealing with their names. >> let's take this conversation go to another level higher the washington redskins issue is obviously big. open up sports for later this summer or fall with regard to

the social injustice movement happening across the country what exactly will be the impact anticipated. we don't know yet. fans given all of this talk with regard to the contexts around the social issues as opposed to focussing on their favorite sports team. >> i think an example that we'll get here is the sponsors that's where the money is. that's who is writing the checks and we're ready for this to get changed now. and you have to look at the factors. and how these leagues had to respond. >> thank you very much very big developing story within the sports world and corporate

world as well. now to today's top corporate story warren buffet's berkshire hathaway is buying the natural gas transmission and storage assets of dominion energy. becky quick joins us with a look at what's most notable about this news. out of all the deals i could have thought of, fossil fuels not exactly the top of my list but it's not out of the ordinary >> especially if you consider it from the perspective of this being an infrastructure play this is not a bet on natural gas itself or where the price of natural gas is going, it's a bet on the idea of if people will be needing natural gas and one way we get our energy brought to us and this is a huge infrastructure play but this is a big deal on a lot of different issues let's start with the berkshire ha hathaway angle

this is the first time they made a major purchase like this and then we saw the subsequent market route a lot of people immediately thought when the market dropped in march that berkshire hathaway would be out there making a lot of deals we found out in may they have $137 billion cash and at that point during the annual meeting, in early may, they were willing and ready to do deals. they haven't seen anything that they particularly like or cared for at that point. this is the first one that they're doing. this is a deal where they are spending $4 billion in cash to buy these assets and $4 billion in cash and another $5.7 billion in debt it makes it a $10 billion deal we talked about what the company

saw back in may. at that time, again, buffet said he wasn't seeing opportunistic deals. and it's operating earnings provide energy to almost 7 million customers in virginia, and ohio and utah and dominion is announcing it's cancelling the pipeline project with duke energy that's a huge deal too this was an $8 billion project that faced increasing regulatory scrutiny and displays that balloon projected cost and raise doubts about the economic fe feasibility of the project too as a result of the sale, dominion warning it expects operating earnings for 2020 to

be $3.37 to $3.63 a share. that's previous guidance down and they're selling these operations so less revenue and less operating profit. they're planning to cut it's dividend in the fourth quarter to 63 cents a share from the 64 cents. each of the first two quarters of the year and paying out for the third quarter. post transaction and an operating earning of 65% it's more in line with it's peers and under this transition, acquiring is 100% of transmission carolina gas transmission and 50% of the system. they're going to get 25% of lng. that's an export, import and that's one of six export terminals in the united states

dominion says it's going to take $3 billion of the after tax proceeds and plow it into buying back shares toward the end of this year. they do have other plans they have announced a big deal on a lot of different l levels. >> it seems like it's certainly infrastructure project it's not like he's betting on the price of natural gas this is not exploration and production he has a decades long outlook. so this is a bet that we will be in some ways doing natural gas a lot for the coming decades, right? >> that's probably a safe bet. people may not like fossil fuels. coal is the one that's been

dropped by as many utility plants as possible and it's getting phased out that's the dirtiest fossil fuels on these issues. and if you want a constant supply of energy i don't know how you're going to move off over the next decade. >> massive amounts of reserves that we have and thanks to hydraulic fracturing we can get those as well. >> we look forward to more of your reporting coming up on squawk box as well >> a solid start to the new trading week north man trader explains why he says we're seeing a historic asset bubble worldwide exchange is back in just a moment. so many people.ovid-19 is stillg if you've survived it, then you're the heroes we need. the plasma that's in your blood can literally save lives. but we have to act fast.

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>> futures right now pointing to solid gains at the opening bell.

futures into cash trading. a big stand out has been for weeks now up about roughly 150 points implied as they move into the opening bell our next guest says it's folly to pretend the markets are anything the best way to navigate these waters buy the dips and sell the rips and watch your back as we're witnessing what he calls a historic asset bubble. let's welcome in the founder and lead market strategist you can see him on twitter there as well. he's active there. it's hyperboyle but not at the same time. what do you mean bubble and will it burst. >> good to be with you look, we have been on this run for awhile now it was in 2018 when the fed last tried to reduce it's balance sheet.

2019 was all about multiple expansion and markets rally 30% and continued into the first quarter of this year now obviously with the covid crisis the fed went in complete overboard mode not only the fed but obviously central banks across the globe we added $3 trillion in liquidity on the fed side in three months that's an annualized pace of $12 trillion there's absolutely no historic relationship to anything on that point so what we're seeing is obviously indices like the nasdaq making highs and s&p flat on the year with negative earnings growth so there's complete disconnect with anything that's got traditional valuation that you have seen and one should be buying stocks and of course at the same time we're running into valuation and here we are.

and how this will play out in context of growth recovery and month over month number. and job losses and mounting. companies keep and making announcements of permanent lay offs and overnight gaps in markets that never get filled and we see that again today there's technical concerns as well >> let's put up a chart here it's been the big nasdaq stocks. this is a key chart to watch

it's been a pretty decent one and it hasn't been nearly as positive here for the equal weight what does that tell you? >> there's truth and if you look at the equal numbers in detail the s&p is actually the december 2018 lows. it was trading at 2350 if you compare the largest indices it's the stocks now almost at $7 trillion in market cap. yields are still not confirming this move. the nasdaq to the banking index. the nasdaq is up 18% on the year where the banking index is down 36% on the year. so it's a massive gap in the market and that highlights that there is a -- that the real economy is looking a lot weaker than what the s&p and the nasdaq are indicating. >> of course a lot of gaps for sure.

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good morning major indies look to extend that almost 4% gain for some averages asian markets getting a big boost overnight. warren buffet taking money off the sidelines making a multimillion dollar energy play and we have reports of the deal that we talked about last week we have more details now uber looking tobuy post mates. details straight ahead it's monday, july 6th, 2020 and squawk box begins right now.

good morning, everybody welcome to squawk box here on cnbc i'm becky quick with joe kernan and andrew ross sorkin the dow and the best i can figure out because it's monday and no other real reason but the markets were up in asia, they're up in europe and up sharply here s&p 500 by 45 points the nasdaq up by 150 and the long holiday weekend and there's optimism out there it's what's going to happen with the reopening at this point. the nikkei is up by 1.8% and then the