it is 5:00 a.m. in d.c here is your top five at 5:00. the fed kicking off what one legend calls the most important meeting of jay powell's career. and joe biden in a face-to-face with vladimir putin. we are live in switzerland with a report. bitcoin up above $40,000 for the first time in weeks. the new survey shows the light of the exposure for the crypto world. and the shipping container shortage taking center stage

after home depot took things into its own hands. is it too late to say so timberrrrrr! the price of one key commodity it is tuesday, june 15th, 2021 this is "worldwide exchange" here on cnbc good morning, good afternoon or good evening. welcome from wherever in the world you may be watching. i'm brian sullivan great to be back with you. thanks for joining us. here is how your money and global markets are setting up on tuesday. futures are higher not by a lot, but across the board, in the green. dow futures up 39. s&p 500 and the nasdaq hitting new record highs once again. don't tell anyone, but the nasdaq 100 is quietly having a big run. it is now up seven days in a row. the first time that has happened

in the year 2021 big tech, something to watch outside of stocks, a big debate lately around the fate of bonds and inflation. a huge fed meeting kicks off today. trillions, literally, riding on the fed. interest rates and bond yields have been stagnate lately. that could all change if the fed changes its language the 10-year yield has come down a bit. 1.48%. also, by the way, oil and the major cryptos are both higher this morning as well we'll get to more on that in a bit. let's start at the start here is our top story. the federal reserve kicking off the two-day policy meeting today. the key focus is on the bond buying tapering as well as the central bank's take on combating rising

prices and inflation that is something we are watching very closely. >> if they treat it with non that lance and say we're on path and things are good, then i would go all-in on the inflation trades i would probably back commodity and gold and crypto. >> when is transitory not transitory you will never figure out on the way in by definition you are saying it is temporary and in the middle. we have to be careful. >> the question is when does the fed move it has to move at some point i think the advice is earlier rather than later. i have no special wisdom on it my gut tells me the economy is moving faster and may not be as transitory as we think

>> joining us now to kickoff the show is ceo and cnbc contributor tiffany mcghee good morning >> hi, brian >> the fed reserve kicks off today. the rate decision tomorrow what are you watching most closely? >> so, you know, by the way, kudos for getting all of the important sound bites in like most people, i'm not expecting the fed to say much this week. they have been very clear they are watching two things. number one, inflation and number two, employment. we have not been meeting the fed's smell test, if you will, on the employment. we have the disconnect with the available jobs and people who are unemployed we are not meeting the requirement there or threshold to be able to act. i'm not expecting much you know, one of the sound bites

was right. i was listening. you don't know if inflation isn't transitory until we're through it in it and through it i think we have to consider we are bouncing back from a low point of growth. when you bounce, you are really having this surge of growth and prices you know, the current inflation really reflects that upward momentum i think we are in the bounce back for a while now investors should be thinking about how they are positioning portfolios the best positioning to weather any scenario is a diversified portfolio. thinking of size and style and slightly overweight growth is at hedge for inflation. value is clearly having a moment

small cap opportunities. it can be a hedge to domestic inflation. for those people who are maybe closer to retirement or just really income investors and more conservative and adding tifs as well >> you look at 10-year yields, tiffany, i thought it would end under 1.5% nobody cares what i think. they care what you think we are below 1.5% in the 10-year. does that give the all clear to big tech stocks? i know from watching halftime report on microsoft or netflix >> as you mentioned at the top of the show, the nasdaq is really having a moment it really is in the seventh

straight positive day. we did have that rotation into value. i think we will have the ro rotation into growth we are seeing that right now i like microsoft for a number of reasons, including them announcing the streaming offering they are uniquely positioned to dominate in the gaming streaming space. i do think that it opens the way for tech to do its thing and reclaim its spot, if you will. >> low rates is a key to that as well when you say around the world, quickly, do you think european markets -- to coin a phrase, are having a moment? european markets having a better bet than u.s. equities

>> you wouldn't get me to say better i would say, you know, again going back to the idea of the diversified portfolio, including european equities is definitely a good idea. also in particular italian equities countries like italy and australia, their inflation doesn't seem to be in lock-step with the u.s. inflation. that is a good idea, too >> italy and australia tiffany mcghee, a pleasure to have you on "worldwide exchange." see you soon. >> thanks. >> you're very welcome now, to geopolitics and europe president biden is still in brussels this morning as he prepares for tomorrow's face-to-face with vladimir putin. biden is out with strong rhetoric ahead of the geneva summit let's go to eamon javers in switzerland this morning

eamon. >> reporter: good morning, brian. take a live look at brussels we expect to see president biden any moment now meeting with king philipe and the prime minister of brussels. in the room where you see the u.s. and belgium flags this is a diplomatic bilateral session following up from the nato session where the nato leaders gathered and addressed two big threats to the world as they saw it. one is the threat of the rise of china which is concerning for the first time and the aggressiveness of russia which represents a threat to the nato alliance the president was asked to preview in his press conference his meeting with vladimir putin on wednesday the president said he is not looking for conflict there here's what he said. >> i'm going to make clear to president putin that there are areas we can cooperate, if he

chooses and if he chooses not to cooperate, then we will respond. we will respond in-kind. >> reporter: he was asked about some of the criticism he is meeting with putin too early in his first term he said, though, he has the support of the nato leaders for the meeting tomorrow >> every single one that spoke i think there were probably about 10 or 12 that spoke to it saying they were happy that i did that that i was going to do that. they thought it was thoroughly appropriate that i do. >> reporter: so we expect the president to wrap up in brussels later today and head to geneva, switzerland. i can tell you the footprint on the ground is slowly gathering steam in the days we have been here in switzerland. here on the lake side here they will meet on wednesday, brian.

>> yeah, certainly is. despite the beautiful looks there, eamon, criticism of the trip maybe suggesting it is too early to meet vladimir putin or the issues are not laid out on the table. what are the criticisms and responses of the white house >> reporter: you heard some of what biden said there defending his trip with the views of the other nato leaders i talked to john bolton, of course, was donald trump's national security adviser. he laid out the trip as it is being too early. the argument is biden has not thought through what he wants from the meeting, but putin has thought through what he wants from biden the question is is this too early in the term? this is the live picture of the president with the prime minister of belgium and king

philipe there as they put on the masks and take the photo op. this is what you do day in and day out on the trip. leader after leader after leader we saw president biden meeting with a group of the baltic state leaders yesterday. now meeting with the belgians in brussels here today. we expect to see this continue into today to extend american warmth in the relationship to europe biden views this as a moment, brian, where the united states is reemerging on the world scene from the america first policies of his predecessor this personal diplomacy. you see the hand pat on the back all of that designed to show the european allies that the united states is back that criticism of the trip is it is too early in the term for the president to do this

vladimir putin will get more out of it than joe biden will. biden shrugging that criticism off, brian >> let's talk about your area of expertise. one of many, eamon cyber. we talked about the hack of the colonial pipeline. we talked about the hack of jbs meats. no sign this is slowing down at all. how front and center will that be for the president with vladimir putin maybe to say whether these are state sponsored criminals or not, figure it out they are coming from your country with all of the resources and sources. get this stopped do something about this. is that going to be top of mind? is vladimir putin going to be receptive to that kind of message? >> reporter: it could be top of the agenda from the u.s. persp perspective. these are strategic assets of the united states. these are the ways you run a society.

food, fuel and the rest of it. you heard brian moynihan saying they are spending billions on cybersecurity. you can think about the drain on capital resources that can be used instead of going to growing the business vladimir putin has simply denied responsibility for it. brian. >> certainly, $1 billion a year. you wonder go back to checkbooks and turning pipelines on by you hand eamon javers, in switzerland even turned the fountain on for you, eamon eamon javers, thank you. >> it's beautiful here >> big meeting there we are just getting started on the very busy tuesday when we come back, online meet offline. amazon going deep near the grocery biz to launch the first

full-size store with one twist. and the latest on lords town as the fate of the start-up carmaker taking another turn. and raymond james calling the cyber attacks on united states a reopening tdera the dow futures opening higher we're back after this. mmm, licorice records. wonka, digital workflows for it tell us this machine needs updating... kids don't really have records anymore...

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three big stock stories of the morning. first up, a two-fer. boeing and airbus. the financial times reporting that the u.s. and eu are set to resolve a 17 year fight over aircraft subsidies it could be resolved today with the president's summit in brussels that we talked about would lift the billions of dollars in tariffs and boost trans atlantic relations. amazon will open the first full-sized grocery store in washington state on thursday the new amazon fresh store will feature just walk-out technology where you don't have to go through any checkout line to pay for items. just scan your phone because it knows what you picked up it will have an alexa kiosk to pick up the return amazon packages stock three. lordstown motors shares falling 20% yesterday

after the ceo and cfo have resigned byrns is the largest shareholder. there have been interim executives who stated the pickup trucks will resume in september. that stock down 20% on monday. still on deck on "worldwide exchange." an inside look at the global shipping container shortage. why home depot iloins okg to take matters in its own hands. you got your new customers — they get our best deals. you got your existing customers they also get our best deals. everyone. gets. the deals. questions? got it. but, why did you use a permanent marker? because i want to make sure you remember. i am going to get a new whiteboard. it's not complicated. only at&t gives everyone our best deals on every smartphone.

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you can't beat turkey hill memories. welcome we will bring you the story we talked about at the start of the year the shortage of shipping containers a hearing will be held on the issue. all of this as the problem takes another turn that is a new covid outbreak at the port in china. the container shipments have gone from 12 hours to 16 days. all of this as home depot looks to take control. contracting its container ship to shorten its supply chain. joining us is phillip edge his company is on the frontlines

of the issue phillip, it is good to chat with you again. have you in your career seen a retailer like home depot basically rent its own ship? >> no, no, never it doesn't surprise me the crisis is that bad now and the prices that high to be honest, home depot with the volume they move, it does make sense for them to do it it is a real crisis. this is not a short-term crisis. this is an issue where i cannot make home improvements at least until the next year. >> you think we can have another year of what we see now, philip? >> i do. i think the mess is that big the demand is still extraordinarily high the backlog built up in warehouses in china and all over asia i don't see a short-term solution for it.

it is a major problem. and when we last discussed this with the lack of containers and vessels. it is still there. if anything, it is getting worse. it is going up and up and up. >> for viewers and i don't know if you caught this we were at the port of charleston in february, philip we highlighted it in mid-february christmas items were still just coming in to the port. months late. that's the kind of backlog we're seeing from around the world it is also screwing up the u.s. trade deficit because we're sending empty containers from the u.s. back to asia rather than filling up with u.s. goods to sell to asia. is there anything you see that can be done to resolve this problem or do we just literally have to wait it out? >> you see small changes

people have other carriers getting involved the smaller and regional carriers on the trans pacific and euro asia areas. w we have seen carriers coming to europe from the u.s. and asia. on the scheme of things, this is a small impact i just think that you just will have to battle it out. ultimately, that pricing has to go somewhere it can't always go to the retailer all of the imported products, the inflation is going to move to consumer and the amount of money they pay to take something off the shelf. >> you think other companies will do what home depot did and say i'll not try to charter a ship or go through somebody else i'll rent my owners ship. do you think more will follow that

that is a unique move. >> it is i think one or two will follow that certainly what we have seen is clubbing together and chartering their own ship and putting two or three each on those vessels we may see more of that. it was so high on the big trade lanes and now the crisis is where it is and it lowered the barrier. more people can try to deploy the vessels and still make money. what home depot is doing is unique i would not be surprised if more do not that many people can probably afford it or have the volume to build the ships. >> they got the ship i guess now they have to find the actual metal box containers. philip edge, thank you very much good to chat with you. >> thank you you're welcome ahead, rich folks, payup democrats behind the idea of the

big one-time billionaire tax. and the evolve global summit tomorrow leaders from around the world looking at the new era of business you can register now at cnbcevents.com/evolve. we're back in a moment

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the fed kicking off what some call the most important decision of jay powell's career. what does the fed need to do to

keep stocks running higher we will find out. president biden set to go one-on-one with vladimir putin with the cyber attacks on america's infrastructure at the top of the agenda. and nba start james harden making the move from the court to the boardroom today is tuesday, june 15th, 2021 this is "worldwide exchange. welcome or welcome back. good tuesday morning 5:30 on the nose thank you very much for joining us it could be another good day for your money we say that because stock futures are higher not a lot, but up. dow futures implied up 25. nasdaq also in the green speaking of the nasdaq, why don't we look at the nvx it is coming off the all-time

high of its own. if you are keeping score at home, nasdaq 100 is up seven sessions in a row. the first time this year bio-tech is hot. all powering it higher all up 11% in the past two weeks. a lot of bad stuff look past covid and focusing on other things that we may need to cure in the years ahead. bio-tech is red hot. bond yields are falling. we have the kickoff of the fed meeting. trillions riding on the bond buying decisions and future of interest rates like we said, bond yields have been low heer a bit 10-year at 1.49. something to watch that meeting and decision will

culminate tomorrow at 2:00 p.m. eastern time in the crypto world, we didn't forget that. bitcoin up above $40,000 on monday and up over $40,000 now ethereum is up as well as litecoin. let's stick with the headlines with bertha coombs good morning >> reporter: good morning, brian. hedge funds increasing exposure to crypto in the next five years. a survey of 100 chief financial officers from funds around the world. they expect crypto to be 7% of the assets by 2026 the ft says if that is replicated across the sector, it equals holdings of $312 billion. marking a large increase of

hedge funds. one democrat to lead the state and local tax deduction is weighing a plan for a one-time wealth tax on the richest americans. bloomberg reports that tom suozzi of new york would present a 5% tax on assets over $100 million. the report adds the tax could be paid over five years and could raise billions to help offset the cost of the proposal to lift the limitation on s.a.l.t. deductions james harden is taking a stake in saks. he will become the member of the board after taking that minority position the terms have not been made available. harden is expected to advise them on growing high consumer

brands and help expand the ecommerce platform i imagine, brian, there is a lot to do with grooming of facial hair he is i conic for that beard >> razors. we could see that. skin care? i have gotten the pleasure to know james harden a little bit >> reporter: yeah? >> we'll just stand here and stare at each other, bertha. ladies, please you go, no, you go >> reporter: i do not know james harden i met draymond green a lot of these guys are more savvy about what to do with their money. >> and also, by the way, millions of social media

followers, the direct messaging. influences in their own way. a lot there. we are watching. saks bertha, thank you. let's switch gears and get more on the overseas trip of the president. the meeting switches to the high profile meeting tomorrow with vladimir putin biden is issuing a warning over alexei navalny this as the leaders is stress the threat posed by moscow along with challenges the group faces from china for more, we are joined by ed mills. washington analyst from raymond james and must read from d.c. to new york pleasure to have you back on, ed what do you want to see come from the meetings and summit what does the street need to see from the summit? >> brian, i think the market

wwe will look at the cyber attacks and ransomware attacks things that hit gas and meat and travel if there is a better than expected meeting, there may be hope with we can get relief there. if it is worse than expected, i think people will be concerned that we will see more of this. i think one area of potential agreement is on nuclear, not proliferation. that is a positive we are also looking at how the meeting play ns into the role of biden playing the autocracies and how russia and china is linked as two areas of significant concern in a more hawkish stance than people anticipated at the beginning of the term >> let me ask it bluntly, ed

what leverage, if anything, do we have over russia? >> the u.s. dollar the fact that almost all financial transactions in this world go through the swiss financial system that is a significant advantage that the united states has and we are at a point where we have more leverage there than any point in history leadership we just finished the nato summit if there is one thing putin and russia are always fearful of is a stronger nato. so, it is a very well c choreographed trip where we start with the g7. he is not invited there. he used to be. going to nato. showing a stronger nato. then having a meeting with putin and not giving him a press conference these are a series of events that shows a pretty forceful position and strong position by the united states. >> trying to marginalize putin

by bit by not giving him that p platform putin knows he has the ground between the western ground and china. it feels like the u.s. and western europe and china on the other side russia is literally and figuratively in the middle how much will china factor into the discussions? >> i think it will be huge it is interesting to go back even 40 or 50 years ago where there was a battle between russia and china and china decided to pivot toward the west and part of the reopening of china for more than a generation is the desire to engage in the west it seems as if that rise was fueled by that now there is real concerns about human rights abuses in china autocracy and the issues by xi

there is further decoupling with the united states and china and the more likely there will be greater ties between china and russia that is a policy decision that has to be played out ultimately the united states has strong allies. russia and china don't have any true allies that go back as long as the united states does. >> somehow they keep getting it done obviously the world's consumer producer is china. russia is one of, if not the second or third most powerful oil producer in the world, as well a lot of talk about cyber attacks and biden is expected to say to putin, knock it off do you think that putin will be rece receptive? something that is costing american corporations and consumers tens of billions of dollars a year if not more >> i don't think he is necessarily going to be receptive. he engages in a lot of what

if-isms. my favorite quote is if you're ugly, don't blame the mayor. i think this is asymmetric warfare from putin in russia, they don't have to spend a lot of money to get a real impact on impacting consumer confidence in this country. he might say a couple of things, but not something he will follow through. >> fair enough by the way, you talked about dollars, ed. the russian stock market is the hottest stock market in the world this year in terms of u.s. dollars. up the most of any major market. ed mills of raymond james. appreciate you coming on >> thanks, brian. you're welcome on deck, your morning rbi will see the forest through the trees. maybe some good news if you are trying to build a deck or buy a home we're back in a moment you look a little lost. i can't find my hotel. oh.

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blowout earnings the malls are absolutely mobbed and a little or a lot of lockdown snacking as people go out to buy new clothes let's talk about the roaring '20s in retail which has arrived. let's bring in janu no one will care, jan, i went to the mall yesterday and the apple store had a two and a half hour

wait to get waited on. absolutely jammed at 2:00 on a monday afternoon what is going on in retail >> brian, i guess i'm not surprised. things are back and the consumer is strong. think about it you can't hire help. you can't get a shipping container. inventory has never been in better shape or cleaner. consumers never have been stronger so, it is a good news/bad news joke for retail. we will have a blowout holiday season higher shipping costs which will have impacts on gross margins, but not any unplanned markdowns. things are strong and it is across the board it is not just online. it is not just in store. it is not just discretionary it is everything you can see we are supposed to see a rotation from home goods to accessories

it is not happening. everything is selling well some are not growing as fast as they were. the apparel category is back even cosmetics we are seeing very strong -- >> jan, it goes back to the labor issue that you just talked about. we left the store. we said we'll buy it online. we will not literally stand there for two and a half hours and walking out through a major department scortore to get to te car, i noticed lines at the check-out counter and people wandering around and looked frustrated that they could not find someone to help them check-out. as strong as the consumer may be, is the lack of labor hold back the return of retail? people love going shopping, but

don't love standing in lines. >> i talked to three store managers in the last week of three organizations. all mentioned not getting enough help as a problem in their store. one manager said he had an associate on commission who made $100,000 a year and said she wasn't coming back because she was doing well enough and wouldn't have to drive didn't need child care she was getting enough not being on the job to get by and she wasn't coming back before september. we are seeing a lot of that kind of resistance to coming back in the work force that will go away. we will get that sorted out over time the containers will get sorted out. it will take a while to sort that out in the meantime, inventories have never been cleaner. gross margins are great. they will be great through holiday. you should buy it now because it won't be there or there won't be

anybody to wait on you >> i think what you are saying don't expect the discounts that we used to see because they bought too much stuff. no one bought it they had to mark it down they used covid and lockdowns to clean out inventory. jan, i try to be diplomatic about it on the way that i wrote the intro about people going out to buy new clothes it is no secret a lot of americans have unfortunately added to their waistlines over the past year. study after study shows it the point i'm trying to get at is how big is the apparel market going to be? if you are going back to the office, millions or tens of millions of americans are probably going to have to buy new clothes. >> i read a study that the average consumer gained 29

pounds during covid. we will see a big run in apparel. it will look more like grown up clothes rather than athleisure clothes. we are seeing that come into the marketplace right now. unconstructed jackets with t-shirts people are buying new stuff to go back to work or go out to play that will be very, very good for the traditional retail marketplace and apparel. >> yeah. we did a study on it a couple of months ago the average millennial that gained weight, gained 40 pounds. 4-0. it is not just apparel it is about a lot of other things jan, pleasure to have you back on see you soon thank you. >> thank you >> you're very welcome a lot of fallout from that on many levels. if you haven't already, a

nudge. a reminder to follow our podcast on all platforms futures are higher your rbi in time for selling coming up next but even i'm not as memorable as eating turkey hill chocolate peanut butter cup ice cream with real cocoa. well, that's the way the sandcastle crumbles. you can't beat turkey hill memories.

i think this fed meeting could be the most important meeting in jay powell's career certainly the most important fed meeting of the past four or five years. the reason why is because we had so much incoming data that challenges both their mission and their model. so, how they react to that will be extraordinarily important and will be signaling, i think, for investors as to how they should deal with portfolios going forward. >> that was tudor investments paul tudor jones speaking to cnbc yesterday

everybody has big expectations for the fed and jay powell let's get our capital markets economist on and find out what he thinks. a big debate, tom. do you think the fed is going to hint or nudge anything about a willingness to be more aggressive on rates because of inflation or not >> look,you know, good morning brian. it is a conversation they are having out in the open there are four officials talking about taperingnow? on some level, it would be weird if they don't talk about tapering tomorrow. do i have expectation they will take that conversation to the f finish line? i don't think that conversation is for tomorrow. i hope they start the conversation by the end of the year, they will start the tapering process. this is a long standing call of

ours the economic back drop no longer demands that we have the same level of monetary policy an accommodation today that we did a year ago i think it is reasonable in the context of recovery that is, you know, well entrenched at this point. you know, gdp, that basically did what the fed thought it would. and the inflationary pressures i think people are getting caught up in the idea. i don't know how -- i don't think anyone really does what i do know is that inflation expectations are starting the process of becoming untethered it is not like -- >> untethered, tom, with what? what do you mean untethered? >> inflation expectations are becoming untethered. in that context, i don't know if it matters that this is going to

go on for six months or a year or little bit longer i think you are already seeing signs that the inflation expectations are becoming untethered that is enough for the fed to start the conversation that is why i think we are where we are >> does the fed change its language at all? when i hosted the fed show, the word cloud thing analyzing the language they changed the "it" to a "the." do you expect subtle changes >> every meeting is a change whether modest or otherwise. they actually did make a couple of sizable changes to the inflation statement the last go round. is the statement ripe for additional change today? sure i think it is. i think that clip you played of paul tudor jones shows he is

right. the back drop has evolved in a pretty robust way. is it fair to expect significant change yes. are we going to see significant change probably not i don't think that is what the fed is about at the point. i think it is more modest change i think that is what your expectation is at best in terms of the pressor, i think he should be grilled on the idea of tapering. i'm sure steve liesman will do that tomorrow. that's where our head is at. one last thing about the statement. we will get a summary of economic projections with the statement. i would not be surprised if the 23 median for fed funds shifts higher it takes two fed officials in the no camp to shift out

i wouldn't be surprised if you see a median hike show up for '23. >> it is a big deal. you know, in a small way, they started tapering with the corporate bond no one cares about that they have to start some somewhere. tom porcelli, thank you. good to see you. >> thanks. >> it already has begun in a small way. let's end it with the morning rbi. it starts with a riddle. if tree prices fall in the woods and no one around to hear it, do they really fall yes. the answer is yes. here is random, but good news for home buyers and do it yourselfers. lumber prices are cut down to size after soaring, lumber futures have fallen the most ever in one week's time with data going back to nearly 40 years futures prices are now down a stunning 40% from the highs of

just one month ago prices got simply too high sawmills slicing up more trees and consumer demand fell off now, does this mean you will pay less for wood or for a deck on your home or a new home soon probably not right away. retail prices are still high it takes time. there is some hope now that some of the insane prices that you have been seeing may finally start to come down in the next few weeks and months and making sure that the bark doesn't take as much of a bite out of your wallet random, but interesting. it goes to the inflation story as well. that does it for us on "worldwide exchange. we are lefaving you with green o the screen stocks and futures and crypto is all higher we will see you tomorrow

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good morning with the nasdaq and s&p 500 at record highs, the fed is now in focus. jay powell and company meeting today. we have survey data on what to expected the big question for the fed and the markets. is inflation here to stay? jamie dimon says yes president biden preparing to face-off with russia's vladimir putin. leading the eu counterparts this morning. we take you there live it is tuesday, june 15th, 2021 "squawk box" begins right now.