♪d-down, down? are you♪ drivers who switched saved over $700. ♪ allstate. here, better protection costs a whole lot less. you're in good hands. click or call for a lower rate today. it is 5 a.m. in new york and here is your top five at 5 the impasse at opec sending oil prices on a wild ride. near six-year highs. gasoline prices likely going up as well and they can they get a deal china keeps cracking down on big tech shares getting hammered. we speak with an investor in one product. national security priority president biden facing the growing risk of cyber threats on

american companies as yet another key institution says it was hacked fire up the jet. the media moguls descend on sun valley will the post covid conference be another big deal maker this year do you think real estate is hot in your town we've got a lest of the ten hottest markets in america some, they may surprise you. it is wednesday, july 7th. this is "worldwide exchange. good morning, good afternoon or good evening and welcome from wherever in the world you may be watching i'm brian sullivan thanks for watching us on "worldwide exchange. your money and market futures are mixed just like the trend we had yesterday. stocks, the s&p anyway, snapped

a big streak the dow is down 5. nasdaq futures are up 53 the nasdaq and the nasdaq 100 posting all-time record highs at the close. by the way, we are watching tech again. now technology may be up as bond yields come down remember gouggguggenheim's scott miner's call very contrarian that yields on the 10-year would drop nobody agreed. that call looks like it is holding true right now as the 10-year ticking to its lowest level since late february. we were at that. oil with all of that going on, oil is a little bit higher in the mid to $73 a barrel range. tuesday morning the highest price in six years the world markets are goating

that we have a by interview coming up in a few minutes you will hear from salmon and where opec stands right now. there is news and headlines outside of oil including media moguls jetting into sun valley idaho for the annual allen and company conference let's get more on that with seema mody is here what have you got? good morning. >> reporter: brian, good morning. as media moguls gather once again in sun valley, idaho, discovery ceo david sass zaslav said he intends to be a catalyst he spoke with julia boorstin yesterday.

>> i think the talk of the week is the industry. i built a great company. jeff's doing a great job at univ universal. we're not done yet we're looking to get this deal done. >> speaking of deals, hello sunshine founded by actress reese witherspoon is reportedly exploring a sale according to the wall street journal. the company is behind productions like apple tv's morning show began exploring a sale the sources telling the journal the company could be valued at as much as $1 billion. samsung expects a 53% rise in operating profits thanks to small demand from memory chips that offset weaker device sales.

they are offering profit of about $11 billion a quarter that ended june 30th. samsung projecting revenue up 19% from the prior year. brian? >> seema mody, we'll see you in a few minutes. thank you very much. the other hot topic is crypto and why it has been so weak over the last few weeks we're joined by mark fusco, ceo and chief investment officer at morgan creed capital we try to take a long view on this show because if you go day to day, number one, you're going to drive yourself insane and, number two, you will miss macro and long term friends. i can say the market for bitcoin is down $30,000 from the april high or i can say, mark, we're still up 10,000 from where they were in the middle of december what do you see as the longer term trend for bitcoin

>> it is all about perspective and zooming out. if you think about the long-term trend which is the right place to look, we're still in a very positive set of circumstances. you have fundamentals improving. the use cases for crypto dropping and bitcoin specifically rising. you've seen a country make bitcoin a legal tend er, actual currency i think that trend will continue this idea of a global borderless, talking to the world, good morning, good afternoon, good evening. it really is not just about the united states, it's about global global activity in bitcoin broadly is continuing to rise, although there are pockets of concern in china on miners that pop up in other places around the world. this idea of a borderless asset i think is really powerful for

the world. >> yeah. in fact, our next guest in the next segment, mark, is going to talk about china's crackdown on big companies as well. it's not just been crypto. they have liquidity issues all of this shaping up tore the perfect storm. laser eyes, paper hands. if i was going to use them, i would say is right now where the paper hands, the weak holders by the way, are they the ones being shaken down? do you see that getting flushed out of the system or a better fall and winter? >> yeah, again, a really important point. great insights there on exactly what happened over the last couple months as we had a global ebbing of this just huge tidal wave of liquidity.

global m2 growth has grown over the last months. you have in all speculative phases of market, after just the massive liquidity. that money flowed into a lot of assets, including crypto coins and others unfor two nately they bought not just the asset, up to 100 times leverage it's very, very healthy for those accounts to get shut down. over a couple million accounts got closed in april and may. i think that's very healthy. last time you and i were together on this show at this time in the morning we were talking about doge, right? it was one of the problems with the markets broadly. it was everything that was wrong with the market and it's down about twice as much percentage

terms as bitcoin not twice, about 1 point be point 5 times as much as bitcoin. i think that's a good example of getting back to healthy and getting assets allocated back to the healthier projects >> and there's so much going on under the hood i don't want to get too much into the weeds at 5:09 ethereum, energy usage in miners everybody wants to trade these cryptos the same way they are extremely different and eos and an ether and a tether and a bitcoin, they're similar in some ways but they're very different in others. are there any others you're watching more specifically, watching as an investor. >> again, really important if you think about what these

are, they are protocols. they are protocols building out the internet of value or web 3.0. just like the internet where we started with 80 and now we have 5, tcip, http, smtp, ftp and we have www dot, this ties things together in the crypto stack we have bitcoin at the base layer. i think we'll probably have file point to replace ftp maybe we get polka dot or cosmos as the other layerer the www dot is the thing that ties everything together in the web. all the other coins that people look at are utility tokens they're not really cryptocurrencies they don't have a claim on cash, for example, equity and they are speculative venture capital products the vast majority of them go to

zero the 1 or 2% that survive will be amazing projects you have to be strong technically to understand them and you have to really dive into them to get their venture capital trends and not speculative day trading. >> wow stick around the most technically in depth discussion about cryptos at 5:10 eastern time that allows people to stay awake that's ever been had. thank you for your time. >> thanks for being with us. >> mark stayed awake i can assure you i did not. china's government cracking down on big tech shares of money getting absolutely crushed

china tech crackdown and the tropical storm elsa as it barrels up the state. we'll get a live track ahead later, our one-on-one with prince abdul a zez bins salman. whether a deal will get done very busy hour still ahead on "worldwide exchange. it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7

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from newly listed didi to ten tencent to alibaba didi got crushed yesterday they are concerned that some of them are getting too big maybe, thus, too dangerous for privacy reasons. china's continued focus on the u.s. listed companies prompting new comments from florida senator marco rubio, a known policy hawk when it comes to china. rubio telling "the financial times," quote, it was reckless and irresponsible to allow an unaccountable chinese company to sell shares on the new york stock exchange even if the stock rebounds, american investors have no insight into the company's

financial strength that puts the investments of american retirees at risk. joining us now is msa capital managing partner ben harbor who is an early investor in didi and others ben, obviously senator rubio is a policy hawk. he has taken shots at china before so maybe you can tamp down some of the lines, but i think his point is clear, which is companies, not just recently but five years ago, ten years ago, have been wiped out along with shareholders. what is your take on the state right now in investing in a china based company listing in the united states? >> i think it's pretty convenient and oftentimes we see the pundits on both sides of the aisle and media and asset advantage space taking advantage of an opportunity like this to seize upon it for their own purposes this was a convenient headline

that many like senator rubio jumped on to point out the lack of predictability of companies listed on u.s. exchanges the reality is the reactions of companies like didi are in an effort to better regulate them and protect privacy and root out some of the very items that american regulators had complained about for years obviously the actions taken by the chinese state over the last few days didn't happen overnight. they were actually probably years in the making and coincided with the hundredth anniversary. those actions are taken and through the statements in an effort to better regulate financial markets, better provide for transparency and they didn't feel the companies were meeting they felt data privacy wasn't being taken to the level they were raising it to

as a result those actions were taken. >> but, you know, there have been issues -- by the way, ben, there's been issues around the world. fraudulent companies in europe, i mean, in is not a country specific problem this is probably a greed specific problem but how much of what's happening right now whether didi or some others comes back to luck and coffee the scam company that grew they're adding hundreds of stores or whatever a week. everybody was rah-rahing them. suddenly you realize everything was a house of cards does this come back to an embarrassment of the nation overlooking? >> i think it certainly was one of the drivers i think there was a loss of face there and i think there's an intent to avoid future results going to be overly cautious and root out equity market fraud the majority of the points were

around that issue. data privacy, cross border data flows were very much secondary to that. that is the root of this and these are preventive measures to avoid the exact types of problems senator rubio was preventing from occurring in the future. >> how do you and your team figure this out? my venture capital friends and contacts, they'll invest in ten companies, one, maybe two if you're lucky hit it big. what are some of the ways you guys filter out the names? how do you make sure -- there is some limited exposure for the companies. how do you figure out you're getting what you think you're getting? >> so i think first we work very hard to avoid the regulatory gray zone. we intentionally avoided the education space, which is one where we still believe the policy has not been fully for

mentioned. we like more clarity, not where there's more consumer facing the businesses operate on a b2b basis. we encourage our entrepreneurs to engage in regular dialogue. these do not happen overnight. these winds were happening from long ago they can get a sense of where they need to take actions. didi specifically is a company that flaunted regulations and didn't make course corrections when they were advised to do so. other companies were much quicker to react and didn't see similar regulatory interference. >> very important topic and a good discussion. ben, we appreciate your time a lot of didi stockholders on deck, good-bye gasoline,

an luxuries with oneas l h hoorah we're back in just a minute. so he used his american express business card, which offers spending power built for his business needs, to furnish a new exam room. the doctor will see you now. get the card built for business. by american express.

at cdw, we get that even as we return to the office, collaboration is still evolving. it's time to make collaboration better, seamless, secure. with cisco webex orchestrated by cdw, get ai enabled automatic transcription and translation, and easily share documents, notes and even whiteboards from anywhere. so even if you're not in the same room, you can still say, "go, team!" for evolved collaboration, trust cisco and it orchestration by cdw, people who get it. welcome back let's get a check on tropical storm elsa which is hammering parts of florida phillip mena is in new york with

that and more. good morning, phillip. >> brian, good morning elsa may have been downgraded to a tropical storm, but it's still packing a punch. earlier in the night the storm regained category 1 strength before losing intensity as it turned off shore that system is moving near tampa bay and it has been hammering cities along the gulf. flooding and tornado watches in place. despite winning the 100 meter dash at the olympic trials, sha'carri richardson won't be running in tokyo. after testing positive for marijuana, she was left off team u.s.a.'s olympic track and field roster in a statement u.s.a. track and field said it supports re-evaluating rules. richardson has vowed to come back to the sport stronger. bucs fans are welcoming cameron kinley he will be allowed to pursue a

career in the nfl. defense secretary lloyd austin granted the rookie cornerback permission that came after his initial request is denied. he will be welcome back into the ranks as a naval officer kind of like david robinson if you remember all those years back >> yeah. i was just going to say we've had this in other sports the captain david robinson leading the great spurs teams in the '80s and '90s. flipping the script. give the kid a chance while he is young and ready to go very cool. let's see how he does. phillip mena, thank you. >> all right. ahead, our one on one with saudi energy minister prince abdulazeez bin salman. we ask him, are negotiations ongoing? his answer ahead endly. in other words, we want a hybrid.

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is gas going to hit $5 a gallon opec stalls on getting a deal done to add more oil to the market our one-on-one conversation with saudi arabia's minister ahead. cyber attacks on the rise. now president biden set to act, but what can really be done against russia and get that banker on the phone. because everybody wants to go public right now the latest company trying to get in on the ipo boom

this is wednesday, july 7th and this is "worldwide exchange. welcome back, everybody. good wednesday morning 5:28 on the east coast a lot to do but let's get right to it. here's how your money and the global markets are looking right now. we're at the 5 a.m. hour futures? they are just about halfway mixed, i guess, or actually now a little bit stronger. remember, futures at this hour and hold on, i'm not discounting looking at the futures right now. not trying to blow up our entire show coverage, but do remember that volumes tend to getmuch heavier, much more active as the morning goes on. sometimes what you see at 5 a.m. may not be what you get at 8 a.m. either way, we are seeing now futures coming up a bit. dow futures, nasdaq futures are

higher i think what's interesting about that number, if you are on the radio, i'll tell you nasdaq futures up 61 dow futures up 30. so nasdaq futures are up twice as much as dow futures despite, of course, being a much smaller number now stocks coming off a mixed session that saw the dow and the s&p snap their respective win streaks on tuesday technology remains strong. the nasdaq, nasdaq 100 posting yet another record high at the close. it looks like, at least in an early indication, we could get the same thing today all of this, by the way, as bond yields continue to fall. remember, on this very show just a couple of months ago guggenheim's scott miner said i think bond yields are going to fall they could end below 1%. pretty much everybody said what's that miner guy been drinking nobody was calling for lower yields maybe except for him. guess what since that appears -- by the way, also called bitcoin losing

50% of its value in april, and that's exactly what happened benchmark 10-year note has come down significantly now at 1.35%. i guess if you want to find an up side, it helps technology stocks low yields make valuations more attractive if you want to buy a home or refinance, mortgage rates are likely to tick back down based on that move all right. a lot more in the markets and your money coming up now to this morning's other top stories including the latest on the u.s.'s response to that massive ransomware attack. seema mody is back with details on that. seema? >> reporter: brian, we will start right there. president biden set to meet with federal officials today to discuss how to combat the growing threat of cyber attacks like the one this weekend on kasyea he's calling it a national security priority. another meeting is expected to

take place next week between the u.s. and russia. that group known as cozy bear breech, in a statement the rn dr says in part that none of its data was accessed. authentic brands is going public a aeropostale and forever 21, the firm is targeting a valuation of $10 billion. they're going public. disputes over mask mandates proving to be one of the biggest issues facing airlines as more people return to flying. the faa says that since the beginning of this year it has received more than 3200 reports of unruly behavior by passengers, roughly 75% of those cases involve people refusing to comply with federal mask mandates continues to be an issue

brian, back to you >> okay. seema, hold on i think you and i have flown as much or more than pretty much anybody that we know in the last nine months. i've seen some of these mask fights mostly what they are, tell me what you think, is number one, a lot of little kids, 2 and 3 yerlds where if you want to keep it down. pull it down, shove food in your mouth and pull it up i've seen passengers knit pink have you seen straight up arguing? >> reporter: i personally have not seen these sort of mask outrage moments on air or when i've traveled. there are different rules when you enter a grocery store, enter

a store where you buy clothes, or get on a plane, there are different rules. that's confusing passengers and customers in general that's why you're seeing some people get a little mad at it. if it's a rule, you've got to follow it. >> the place not to argue. just put the mask on >> exactly. >> get where you're going and have a cocktail. seema mody, thank you very much. meantime, it is day six of the opec impasse the group unable to come together and they are trying to put new barrels of oil on the market if a new production deal is not done. there are questions about what happens to the current agreement and whether it still holds or becomes more of an oil free for all and prices tumble. tuesday we had the privilege of speaking with prince abdulaziz bin salman i began by asking if there were any current ongoing opec negotiations

>> not that i know of but, you know, we have monthly meetings it is very important, crucially important that when we close the meeting yesterday, i don't see anybody on friday who did not men maintain straightforward their agreement. many, i've seen interpretations here and there yesterday and probably today that are talking about i don't know what would be the ultimate reason, but i don't recall anybody in a discussion

like that. we have an agreement and we'll continue until that happen and more important, i think it will be advantage of everybody that we stretch it more for the rest of '22 to make sure we can download these volumes in a meticulous way to ensure that we will not disturb the market. >> so is it fair to say, your royal highness, that the next time you might address adding barrels to the market will be at a meeting in august? >> it could be let's remember and i keep reminding those who are listening to us here in saudi arabia that it was saudi arabia who brought up this proposal yes, we worked through the details with our colleagues in

ru russia we have spent the last five weeks when i was with him in st. petersburg, it was there we start looking at the details of proposals and we look at colleagues, too, in terms of principles yes, we have every interest to bring balance, the sooner the better yes, we need to do it in a very diligent way, careful way and we worked hard in developing our mechanism. you are commenting about it. the adjustment mechanism is a good safety valve for the market we did exercise it, remember

originally the 2 million should have come in one day and then we stretched it for four months and then we even accelerated growth in the fall, more voluntary cut. which is trying to facilitate it, putting it in from trenches instead of one goal. doing all of it, bringing it as low as they are today, we need to have volume now to go with the current season and we have to mitigate this quarter and yet we have to be careful. not doing it is not being careful. overdoing it is also being not careful because we still have

these things going and we have no certainty about it especially around covid and we have to have it built so trying to equalize all of these and balancing your pack to ensure that we do it and we do it properly, this way we attend to the consumer. >> your royal highness. >> it's a concern that the current agreement will be broken it's a splintering

every producer for himself mentality that you brought under control. in this one, we have a nine-month period and, st therefore, i have no problems in my mind.

i don't recall any not repeatedly stressing the commitment to this what is the story now, i don't think there is any type of similarity >> sorecap, the prince saying if no deal is reached, the current deal should be in force. meaning more barrels of oil are unlikely to come to the market or more. something that could put upward pressure on oil prices that was part of our long and wide ranging conversation with his royal highness you can see more on cnbc.com later on today one thing that is important but came at the very end of the interviews we wrapped up, he said, brian, trust us. we will deliver. that is a big message from the biggest name in the oil world. let's stay now on this topic

and welcome in martin ratzi. the head of european oil and gas. martin, that was part of the interview. there was a lot there. what was your take away from his royal highnesses comments? >> i think what i took away from that is that this is a situation where ultimately i think cooler heads will prevail there's quite a bit of time before this really becomes an issue. i've actually been a little surprised at the issue that the extension in april is already on the table. we have another nine months or so before this issue needs to be sourced out. a lot can happen in nine months. opec's been around for 60 years. this is not the first time a country has asked for its quote to to be revised also, you have to ask the question, does this type of tension really reach the level of sort of gravity that should allow opec to let this snowball into a full sort of free for all

marked share competition because at the other end of a free-for-all market share competition lies another deal. we all know that so there's going to be a deal of some sort anyway i think all the main parties sort of know this. there is time to sort this out >> yeah. >> i think in the end the solution will be reached >> there are three possible outcomes, martin i'm going to ask you to play a game with us this is no game. global prices and gasoline prices are the outcome here are the three outcomes i think. number one, opec does come together they ratify this 400,000 or more barrels a day. maybe they put the extension, deadline, baseline on the side that deal gets done to add more barrels. option two, nothing gets done. as you heard abdulaziz bin salman, or the third option which is unlikely but that opec

splinters. uae leaves opec or decides to do what it wants anyway other countries do the same. free for all every country for itself mentality takes hold how would you handicap each of those three possible scenarios >> yeah. good one this is quite sort of interesting thought process. look, i think it's worth sort of mentioning again that the deal of plus 2 million barrels a day between august and december, the deal between now and year end had pretty much as far as i can see had pretty unanimous support including the uae. that seems like over that time frame that will ultimately be the outcome. it's a fine amount of oil. it will keep the markets reasonably tight oil prices supported everybody seems to be agreeing and supporting it. seems to be very little reason why that should not be ratified.

the other scenario, there is no agreement and people might stick to it, that might hold but ultimately that is a problematic scenario it will tighten and tighten and tighten as time goes by. we think based on the inventory data we can see over the last couple of months we've been around 2.2 million barrels we put demand growth between now and year end as another plus 3 or so. you're opening up a big gap if there is no opec oil oil prices will go higher and higher at some point i think it would be reasonable to expect compliance will deteriorate. that will then be quite a small item >> we've got to go >> how it ends in the end, that will end up with a deal anyway so i don't think that has a great deal of likelihood either. i think that first scenario is much more possible >> okay. good news maybe for the oil market because as you know, martin, there is no cue for high

prices like high prices, it encourages people to cheat. we will get you back on very soon we appreciate you. thank you very much. coming up, do you think the real estate market in your town is hot you've got nothing we're going to show you the ten tightest markets in america, but as we head to break, some of your other top headlines he heliogen will merge with athena technology valuing the company at $2 billion. nikola shareholders shooting down an executive proposal salary bonus and stock awards. they said no thanks. lotus is unveiling what it calls its last hooray before switching over to evs. it will go on sale next spring and start around 85,000 bucks. good looking car probably a little tight if

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you go rochester, new york. random but interesting as we head to break, if you have not already, follow our podcast. if you miss the show any day of the week or you're in the car, on the plane, whatever, check us out on apple spotify we will be right back. flowers are fighters. that's why the alzheimer's association walk to end alzheimer's is full of them. because flowers find a way to break through. just like we will. join the fight at alz.org/walk it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next.

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welcome back if you are looking for stock picks and you need help from one of the best in the business, who isn't, be sure to sign up on cnbc pro today i'll be speaking with t. row price's david giroux his macro picks. still time to sign up on cnbc.com/pro/talks 1 p.m. eastern time although i promise, i said to david, no ties. now to another really smart guy named david who's also made

some amazing calls over the past number of years. for him it's all about value, value, value, david katz from matrix asset advisers. i'll get you on the spot when do we get you on one of these 45-minute pro events rather than four minutes. >> give me a call. i love to do it. >> that's how it works david katz, we're going to give you a call this afternoon. in the meantime, let's talk now. i noticed a theme. they're all financials but they're not the names that people think of all the time, truist, bank of new york. >> the banking group started out very strong this year. they had wonderful capital returns. they raised the dividends across the board. a lot of share buy backs the stock has sold off based on interest rates coming low. we think that's a great opportunity to step in and build

positions. there are a lot of good things going on great prices with great deals. we would be buying into the weakness in a significant way. >> even as 10 year yields have ticked down, even if they stay at 1.4, 1.6, can those companies you mentioned, david, still do well >> even if they stay down here, the companies will do well because they're buying back a great deal of stock. bank of america is buying back 13% of the stock and we think they'll do that at a reasonable clip the other part of the story, we don't think rates are going to stay down here the economy is coming back very strong inflation is definitely kicking in we hope that it's transitory but at a minimum it is kicking in. it should be 3, 3.5% level there is tremendous government spending and deficit all of those things should push rates higher and we think ultimately whether it's one month, six months, nine months,

rates are going up stocks are going to react and bank stocks are going to advance. we think you're getting them at a great price before interest rates move higher and stocks move significantly higher. >> what do you make everybody rushing back into technology stock, david >> we think it will be relatively short lived value has done well since last october. growth and technology has had a great run. we think it's going to be a pause that presses us on the value side we will be buying value stocks we own a lot of technology companies. we own microsoft, apple, google, facebook they've had a great run in the last year. they've had a great run in the last month in terms of our overall portfolio we like them but we don't think they're going to be the greatest contributors or leaders. we think other areas that have not done as well will start to play catchup we like technology but we would

not be jumping all in here. >> maybe kind of a short-term, yields are going down, let's run back into the technology names that david katz says focus long term, stay focused bank of new york, truist and others david katz, we'll give you a call about the cnbc pro event. not kidding. thank you very much. >> i look forward to it. thanks a lot have a good day. >> so do i we'll have one today at 1 p.m. eastern time that does it for us on "worldwide exchange" this morning. "squawk" and the gang picking up your coverage next have a great wednesday we will see you tomorrow

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the limits from the latest fed meeting. takes hours to look at them.

media moguls gathering in sun valley we have a story about reese witherspoon's media company. china's crackdown on tech and cryptocurrencies is ramping up it's wednesday, july 7th, 2021, and "squawk box" begins right now. good morning and welcome to "squawk box" here on cnbc. i'm melissa leah long with joe kernen beck yes and andrew are off. the s&p 500 ended a seven day winning streak the dow pulling back 209 points. the nasdaq did rise to a new high joined by gains i