it is 5:00 a.m. on wall street here is the top five at 5:00 stocks coming off the best day in two years where do we go from here president biden at the g7. a live report from the meeting ahead. sticking with russia, moscow defaulting on foreign currency debt for the first time in 100 years. the financial fallout on deck. another summer weekend and headache at the airport. more delays and cancellations. not just passengers bracing for

turbulence at the terminal. oil is heading for the first down month of the year will oil stocks go with it it is all happening on monday, june 27th. this is "worldwide exchange. well good morning, good afternoon or good evening. welcome from wherever in the world you may be watching. i'm brian sullivan thank you for joining us let's get to it and kickoff the hour with the check of the markets and your money it is looking good futures are higher across the board. a nice pop for stocks last week. the s&p seeing the best day since may of 2020. is that a good sign? maybe. we should add most of the research we read over the weekend indicates many see this as a bear market rally of course, time will ultimately tell a quiet morning in bonds

yields are moving up back to 3.16%. we have been in the range for the better part of two months after the sharp move at the beginning of the year. crude is rising slightly still well off the recent highs. 106.90 g7 in germany right now and president biden and other leaders are imposing a discussion on price cap on oil and shipping insurance restrictions we showed you last week russian oil is still being sold more than before the sanctions. it is possible vladimir putin is making more money now than before the war we will have more later on bitcoin and ethereum are higher less than 1% bitcoin up to 21,400 one more thing to check on

monday morning commodities. there are some hopeful signs out there that inflation is receding just a bit dbc tracking etf has rolled over not by a lot everything has to start somewhere. we are trying to find a little bright spot. maybe inflation on the commodities side is getting better let's find out what is happening around the world julianna tatelbaum is in london with that. good morning >> brian, good morning european equities are off to a decent start green for the most part. we have come off the highs of the morning. momentum is slowing a bit. the italian market crossed into the negative territory in the last 20 minutes. we are seeing out sized gains for dak. we did see under performance in the dak last week. a catch up trade there concerns of the cut of gas

supply into germany as they move into stage two of the emergency plan the swiss market is about the same as cac 40 this is what the split look like strong gains for basic resources. we were up 3% and now up 2.6% on the back of the session in china and relatively positive headlines out ofproduction not as down as feared. some potentially positive headlines with the covid situation in shanghai. we are closely watching gas. the eu energy commissioner says the imports are half from a year ago and could decrease further this as the french ceos have urged businesses to cut back on power consumptions to prepare for a looming crisis brian, certainly a developing story that we are continuing to watch closely.

you will have strength in edf and engie. a pull back in utilities brian. >> they are talking of rationing gas in the winter in parts of europe i saw an energy official in germany this weekend saying gas prices and heating bills could triple for germans this we know af winter julianna tatelbaum, thank you. also, another developing story this morning this is big for the history books. russia defaulting on the foreign currency debt for the first time since 1918 pippa stevens is here with that. >> good morning, brian this is big. russia defaulting on the foreign sovereign debt for the first time in a century. this is seen as western sanctions that halted the moscow ability to pay overseas creditors. the country has been able to

skirt some sanctions, but yesterday marked the end of the 30-day grace period on $100 million of interest payments that were originally due may 27th a formal declaration would come from ratings agency. they dropped all russian assets and debt they are seeing this as a symbolic event for the russian economy which is dealing with double digit inflation and worst contraction in years russia is pushing back against the default status saying it has the funds to cover payments, but western nations forced the nonpayment russia has been attempting to service the $40 billion of out standing sovereign debt in rubles brian, broad em r implications. >> we have talked about the credit swaps rising. if you can't pay the bills --

first time in 100 years big deal pippa stevens, thank you. let's talk about the markets which is trying to claw back from the worst first half. s&p down 19% nasdaq lost 25% of the value this year. that, of course, is in the past. the key is where we go from here let's bring in anneka treon. anneka, i want the market macro view i want to talk to you as a resident of the netherlands. you are in europe. we are talking about the gas rationing and petrol at $10 a gallon what's the future both short term and longer term for europe and european economy? it seems impossible to consider that some steep downturn if not steep recession is on the way?

>> hi, brian absolutely it is a very odd situation i think we are all baffling through. on the one hand, there are enough reasons to be concerned and bearish. in that and that is why consumer confidence has fallen below the cliff. it doesn't feel like we are in a recession environment. restaurants are booked flights are full holidays are book. it is an odd state of affairs. estimates are going higher instead of going lower for company earnings >> so where is the disconnect? by the way, i agree with everything you are saying. if i went to the airport, it is bac packed with lines. same in the united states. somebody is getting it wrong >> somebody is getting it wrong.

let's get back to consumer confidence that is shockingly low the fact that the confidence is below crisis level is amazing. that is a moment where hundreds of thousands of jobs are removed from the economy what you are seeing is very simply consumers using their savings to bridge the gap. we all know this is not sustainable. that is the scary moment we are all anticipating at the moment >> do you see either our federal reserve or the european central bank or bank of england having to flip? i know it sounds ridiculous. i'm looking out longer one wonders when we talk about the ecb and central banks pull back a little bit and ease the economy because if european natural gas prices stay where they are over winter and it is

cold and i mean this with respect, you as a macro economy are in big trouble >> absolutely. it is funny you mention this it is equally viable to consider the macro environment we're in now to see rates going up as rates are going down how odd is that? i think the scary thing is the central banks or ecb is talking about core inflation not headline inflation the big difference is food and energy that is where the shocks are coming from. i.e., central banks don't have the tools to combat food and energy price growth. that is essentially the scary thing. the only way to combat price growth and energy is to have massive demands destruction which is the scenario for the recession. >> let's leave it on a positive

note european equities trade at a discount to those in the u.s most of the european markets, major ones are at 10% or lower and well known companies in the mid to high single digits on price to earnings. are european equities getting to the point they are cheap enough to look at regardless of what we talked about >> brian, you are right. there are genems in from that is what we are going. we are going fundamental you can't just look at pe and trust the multiple in many cases, it is a nonsense story. look at the cash flow and to your point, there are plenty of european listed businesses that are global in nature absolutely yes >> trying to found a little bit of silver lining somewhere in

everything else that is going on is hard. anneka treon, thank you very much see you soon take care. so much to do on this busy monday when we come back on wex, good news gasoline prices backing down from recent record highs will the plan by g7 to cap the price of oil back fire and it is a blame game between airlines and regulators and no sign of easing ahead of the fourth of july holiday and another housing crisis may be building under the radar. it could be trouble for millions of americans trying to pay the rent numbers you have to hear in the rbi coming up. we're back after this. in any business, you ride the line between numbers and people. what's right for the business and what's best for everyone who depends on it. solving today's challenges while creating future opportunities.

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welcome back let's talk oil and energy prices right now. holding steady oil down to $107 investors embracing for moves against russian oil and gas that may emerge from the g7 in germany. leaders are expected to discuss sanctions on moscow and a price cap on russian oil with likely a limit on shipping insurance. many in the market are doubtful that would work. let's bring in bart melek at td securities bart, last week on the program, we walked through how russia is probably selling as much or more

than before the sanctions because buying from india is up 650% you heard the news and what would happen at g7 would that work? >> i'm not sure so it would persuade major clients right now from purchasing more they established links that they were getting preference pricing. i'm not sure what form that would take perhaps more persuasion would be in order >> really, unless china and india get on board, this is talk by the west and asia and the east buys up all of the cheap russian crude they can is there any shock that india --

china won't -- any concern that india would come on board? >> if there is a deal with india, it would probably be in limited scope because at the end of the day, it is hard to imagine without significant increases from opec sources and others to supply them and they do need the crude. at this stage, it is difficult to ask india to make fundamental sacrifices for this. they would have to have some alternative for the product they are getting from russia right now. >> you got over 1 billion people trying to heat and eat and cool and heat homes the politicians will not face backlash from the population because they lack fossil fuels scott sheffield, head of

pioneer, one of the pwidely respected voices said he thought oil would stay above those prices for years do you agree >> we expect opec to deliver more in august nigeria is on record saying they could increase production by 500 million barrels or so. opec committed to increase supply over the next few months of 648 to 1,000 barrels a day. while they say that, i acknowledge that opec ability to deliver, particularly to the few nations with a robust quota, they were unable to. it remains to be seen if opec and saudi arabia can deliver more crude to these world oil

markets. i think that is a big risk if that were to happen, we could see prices start coming off. we expect to see prices to spike more through the worst of the driving season and come off. we expect that very robust monetary policy tightening to have an impact on demand as well as speculative interest. >> this didn't get a lot of attention. el salvador. energy minister saying they could cut off all oil production in 48 hours because of lack of labor and protests el salvador is not a big produpro pro producer in this market, if you have a couple hundred barrels out of el

salvador, this has to be made up somewhere. el salvador may actually matter. >> yes any production -- 100,000 barrels a day would make a difference certainly psychological difference to the market it could mean whether or not a speculative interest wants to go long or not long or cover shorts or not ultimately, the market is fairly tight. we have a problem coming up with natural gas as well. that means we would probably see more than normal seasonally distal demanded. any meaningful disruption could matter conversely, any surprise to the upside would matter as well. let's say nigeria's ability to deliver 500,000 barrels.

>> massive under investment in africa the last couple years by western countries. bart melek, i appreciate it. thank you very much. still on deck here on "worldwide exchange. atlanta council ceo fred tempe kemp is here on how leaders are threadinthg e noteedle with the domestic and international tensions stick around

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welcome back let's get a check of the key headlines outside of money and business with frances rivera in new york good morning, frances. >> good morning, brian outrage over the reversal of roe fueled protesters across the country. demonstrators took to the streets and the supreme court ruling after the constitutional right to the abortion. activist on the other side of the issue were out in force celebrating the decision three people are dead and two more in the hospital after an amtrak train crashed outside of san francisco. no one on the train was hurt the crash is still under investigation. a russian barrage of missiles hit kyiv and president biden and others gathered in the alps for the g7.

ukrainian officials say these strikes are a direct message to the leaders of the summit. sports news this morning avalanche is the 2022 stanley cup winners. >> and a goal. makes it 2-1 colorado five seconds to go coming to the sign colorado has won the stanley cup. >> colorado took game six with a 2-1 victory over tampa bay they raised lord stanley's cup this is the first title since 2001 you are up to date, brian, with the headlines. >> they are still rocking in denver frances rivera, thank you very much coming up, we'll get random but interesting on real estate and scary stats around trying to

make the rent. you want to hear that. as we head to break, if you haven't already, follow our podcast. if you missed the show, we get it it's early check it outn e dc othpoast networks we're back after this.

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continue to get the tools they need to build a future of unlimited possibilities. real turn for stocks or just another bear market pop? futures are up as stocks do something for the first time since the jackson 5 were topping the charts president biden at the g7

and trying to squeeze putin as he defaults on debt for the first time in a century. the travel blame game and the brutal fourth of july flying weekend is ahead it is monday, june 27th. this is "worldwide exchange. welcome or welcome back. hope you are having a good monday morning 5:30 on the east coast jump in after the big diffay on friday stock futures right now seeing a bit momentum carry through dow futures not up a lot up 139 nasdaq futures are also higher as we noted, all averages are up 3% last week good week for the equity

markets. with the gains, it is one of the worst first halves to the year ever down 18% on the s&p and some of the momentum should continue in the short term and turn become down evercore expects a short-term rally in the s&p 500 back toward 4,000 before falling again in the third quarterback below 3,500. julian emanual says prices will remain week. a pop and drop let's move on and get the latest from the g7 meeting in germany. the new move coming as europe looks for the energy crisis. we have kayla tausche on the ground in germany with latest. kayla, good morning. >> reporter: brian, good

morning. g7 leaders trying to maintain unity as the war in ukraine drags on and challenges the west resolve to punish vladimir putin amid a darkening economic back drop today, earlier this morning, you are looking at the meeting right there where the ukraine president zelenskyy addressed g7 leaders as they try to figure out how to keep that pressure on russia we're expecting in the next day or so four of the seven countries to announce a ban on imports of russian gold. the purpose of that would be essentially to keep oligarchs and the kremlin from being able to sell gold to finance the war and other purchases and skirt sanctions put on gold is the second biggest export by russia by revenue coming after oil oil is also figuring prominently in the discussions here as well.

allies are discussing price caps for russian oil to stay on the market according to the u.s. official there is no agreement yet. the u.s. announcing tariffs on $2.3 billion of russian goods and people familiar with the matter tell me the u.s. could keep bans on tech exports to russia and asset freezes on vladimir putin and inner circle. those could be in place permanently. and without china and india on board, any of the measures may lack efficacy. that is the challenge with any of the regimes how do you get more people on board? as long as russia can sell energy, that can generate a tremendous amount of income at a dis discount with russia on the brink of debt dpe fa default and the squeezes, u.s. officials are hoping for settlement brian, what does the world and

global economy look like after that >> i have so many questions here because they are talking about hundreds of billions of dollars for renewable energy which is grit there wasn't a lot of commentary around the potential ban kayla, i don't want to put you on the spot. i'm hearing talk about price caps if you are talking about capping prices, that says you are still planning on buying russian oil they are shutting it off january 1st. is this the remainder of the year or a sneaky way out to keep buying russian oil and claim putin will not make a lot of money on it. it is confusing. >> reporter: brian, those are details that allies have not agreed on. they have in place is agreement to keep talking about and developing some plan

you are right. the devil is in the details. the details matter with china and india still buying russian oil and russia able to benefit from the price spikes we have seen on the market, they are getting same revenue or close to it than if they were selling same amount of oil than before the invasion there is this feeling that the west is really being punished by its own decisions. if there is a way to keep the russian oil on the market and limit the price the kremlin is getting for it, maybe in the end the revenue that russia gets is the same, but the west doesn't have to suffer so much >> that's the reality. we can feel good and say we are not funding or helping fund this war. putivladimir putin is likely ta as much or more money than sanctions because of india and china and others kayla tausche, thank you very much >> joining us now is the

atlantic council ceo fred kempe. he is talking about the rewiring plan and i'll get to that in a second, fred you get my point as i read these stories about the potential price cap, as of january 1st, you will no longer buy russian oil. why are we talking about price caps which will take months to implement? it felt to me like a sneaky way for them to keep buying russian fossil fuels and then claim moral victory over pricing what is your take and your understanding? >> i think the meetings and i'm in madrid now for the nato meeting tomorrow there's a little more symbolism to the meetings because so much is already done. the finance ministers will sort out the price cap. they don't know how it will work yet. you are asking the right

questions. in a way, a new non aligned movement it is not just china and india and africa and others that have not signed on to the sanctions the symbolism is important it shows the west is holding together don't forget the g7 for the first time in history sanctioned, actually froze assets of the g20 which froze $350 billion of assets we saw default yesterday in russia for the first time since 1918 this is important >> do you think europe itself will hold, fred? they are in for what could be a long, cold winter. the possible shutting down of parts of the economy and industrial properduction and

carmaking? that is enough to fracture the closest group of political friends. >> that's what my cnbc op-ed was about. the rewiring of europe was after february 4th, europe came together more than ever before around sanctions with the u.s. and spending more on defense and supporting ukraine although the germans are accused of slow in getting weapons to ukraine now you have natural gas prices rising and inflation at 3.1% in may in eu. putin is counting on the u.s. not staying the course i think what this is all about is who can stay longer he thinks the democracies by and large have attention deficit disorder they will have more political

troubles than macron not winning parliament after his election. this is a war of attrition against the staying power of the west >> we talk more about germany. the biggest economy in europe and one of the biggest in the world. in 2010, they started the energy transition they spent hundreds of millions if not trillions on it carbon emissions are slightly lower. you haven't gotten a lot of environmental benefit yet from it now talking about rationing and weaning off completely russian natural gas. can you undo 20 years of policy and addiction to russian natural gas in six months, fred? is this going to work or is this politicians that have to flip and say we go back to coal and keep nuclear plants on or do you think germany can pull this off?

>> it is the reason i wrote about this as a european rewiring, particularly german rewiring you can't stop in the middle of it if you go in the direction and whether they can pull this off in six months, the answer is probably not what we're seeing is the outcome of a shameful energy policy in germany where they became much more dependent on russia than necessary. they gave up the nuclear power and they have to rethink that now. they are going to fire up a coal power plant. whoever thought that would happen in germany? you are right to think it may not be as fast as forecast, but the direction, the germans say, is permanent they will not roll this back they don't have a way to receive lng properly yet other countries in europe have done it is really a huge overhaul they are going in the right direction. they will continue to do it

just how fast? who knows. the inflation in the meantime will be high >> german political leaders like our leaders, they forgot they work for us they are our employees they are hired by us to do a job. we will see, fred, if the german population allows that to continue by the way, fred, i am a hokie i tweeted out the other day. if germany reconsidering shutting off the power plants, i will wear a uva hat on the air >> i have been talking to green party politician ws who are rethinking this. you may end up wearing that hat. >> if they say they will fire them back up, i don't have to. if i'm wrong, i'll wear it >> i see. >> fred kempe of atlantic

council. check out the op-ed on cnbc.com. fred, thank you. coming up, morning rbi the scary stats on how many people may face eviction from the rentals. the numbers you have to hear coming up. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want —your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with comcast business. powering possibilities.™

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which nbc universal is the partner. you can hear about that all week on cnbc. pretty cool. time for the monday rbi. let's get random but interesting on rents there is troubling new data out that may have gotten lost in the other headlines the last few days that is more than 8 million americans are late in paying their rent or struggling to pay. the federal government found 8 million americans or 15% of all ren renters are late in maconthly rent that number is loek ikely to get worse. rents have gone up 1$250 per month. that number will be higher in new york the demand for rentals is off the charts look at this

the government found that nearly 3.5 million americans are very or somewhat likely to have to leave their homes in the next two months it's a huge number millions of people could be pushed out of homes because they simply cannot afford to pay the rent the census found the impact of the hikes is i mpacting people f color and 50 to 54-year-old age group. it could get worse this summer as rents reset higher for millions of people who got better deals because of covid. now consider the impact on this overall inflation. we showed you earlier in the show that there are signs c commodity inflation is showing prices coming down if rents keep rising, wouldn't that negate any benefit of falling commodity costs? one measure of higher prices is coming down, another far more

important one, having a place to live, is going up. we'll stay on this story random but interesting and random and scary as well if you have flown lately, especially in the northeast or atlanta or chicago, you know the travel is a mess right now it is partly because travel is booming. tsa screening 2.5 million passengers on friday the highest number since before the pandemic that is still with international travel to china nowhere near it used to be airlines are now calling for a meeting with the biden administration to talk about solutions like staffing for the summer let's bring in helane becker helane, having flown a lot lately, the irony is this. terminal c at newark is mobbed.

i have never seen it more crowded in 15 years. terminal b which i had to go through for global entry was empty. that is the international. i know the overall numbers are not higher, but i got to imagine the domestic flights and number of passengers are the highest they've ever been, no? >> absolutely, brian you are right. we forecast that domestic u.s. travel up 40% from where it was in 2019. the reason you don't see that showing up in the tsa numbers is because of what you pointed out. international is still down 50%. business is down 40% if those two groups were back to 2019 levels, the tsa would regularly be screening 3 million passengers a day

the system could not handle that it can barely handle what it is doing now. the overall numbers, as you pointed out, are still down 10% from where they were four years ago. >> in terms inals that are domestic at hartsfield at atlanta and o'hare why don't they shift the gates to the international buildings which are down and they feel spac spacious we are seeing tsa agents and lack of tower personnel and lack of pilots. >> all of that is true the u.s. government did not train air traffic controllers for two years. it is not their fault. airports don't have enough space. laguardia is the exception and newark where we have

construction there is not enough space at the airports why can't we shift over? as i understand it, it has to do with gate leases and the fact that airline a has leases on x, y, z gates and they have to do deals among themselves with airport personnel. i don't know if you noticed pets i have seen not only people squished together, but third bringing their pets on board the aircraft, too. i think it is all adding to the nature of air travel frustration. >> they are doing the best they can. you and i fly all the time the people who fly all the time never get upset. we're like, okay another delay. people who fly once every five years are the ones screaming helane, you cover airline

stocks are there any that are better than others from the investment persp perspective? what do you makeove over the fi over spirit airlines >> it is crazy i don't know what is going to happen with spirit and jetblue jetblue wants spirit and they have room to raise the price if they want it bad enough. spirit, maybe not so obvious, we think spirit will be part of jetblue or frontier at some point. it will take at least a year nobody is getting this deal done this year. that is one thing to think about. as far as airline stocks go, i watched the volatility and we update the valuations every week we look at the earnings. these guys will have a good second quarter we think they will have a good third quarter. we are concerned over what you pointed out in the early remarks of rents going up and commodity

prices and so on putting pressure on the wallet for people we are concerned about the fourth quarter numbers we have a buy on united. the international market and leisure. notdestinations. the three big international companies should do well domestic obviously they are optimistic because of the reopen and recovery trade. to your earlier point. costs are going up, too. you might have thought united pilots getting a 14% raise >> we will see by the way, united open up the new terminal 1 at newark sooner earn later newark will have the newest terminal helane becker, thank you very much

on deck, the viking is back. sven henrich on why the fed may be taking shape.

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biscuits!! get fast free 1-3 day shipping when they just can't wait. chewy. welcome back futures are higher stocks looking to extend the pop from last week we had the best day on friday since may of 2020. is this another head fake rally? our next guest thinks so sven henrich sven, good to have you back on the program. this is common the nice runs in an overall downtrend? >> absolutely. hi, brian. good to be with you. we had a fairly sizable loan on june 17th. there were a lot of technical arguments for the big bear market valrally. that may still come. we saw the bounce on friday which looks like a lot of the

other bounces we have seen so far. maybe we will see more of this the question for us in the summer is whether we're going to see a larger bear market that reconnects s that come bine wase technicals or if it rolls over we saw the markets reacts to yields and inflation expectation. right now, the 10-year treasury is a key chart to watch. we saw in 2018 markets falling apart with the 10-year treasury at 3.2%. to the extent this rose over and you can have more sizable upside in markets however, if yields go to what the fed fund rate at 3.5%, we will roll over to the big recession. that is the battle to watch in

the summer months. >> that's why markets are going down people are looking at the e in price to earnings and saying the companies are doing fine now in a year, will they have to ratchet down earnings expectations because of the higher rates and rents and slightly lower gas prices, that will rush the american conconsur by the way, uk and european consumer as well. >> it is a disaster all over the place. the fed has admitted that rate hikes will not do anything to deal with inflation or food or rent inflation it is out of the control the risk is that rate hikes actually will slow down the economy so fast that we're going to enter a larger recession. that is why the yield equation is important markets need larger yields

we will have a rollover otherwise. >> once we get the lower yield signal, that means markets may have stopped going down? >> absolutely. part of the bear market rally case was not only technicals, but positioning is extremely negative right now people are not prepared for a larger rally to come that actually creates mechanics that -- disconnect from fundamentals if you will -- with a chase rally. >> sven henrich. always appreciate your views thank you very much. that does it for us on "worldwide exchange. "squawk box" with rebecca quick and brian sulliv iupexans nt.

wanna help kids get their homework done? well, an internet connection's a good start. but kids also need computers. and sometimes the hardest thing about homework is finding a place to do it. so why not hook community centers up with wifi? for kids like us, and all the amazing things we're gonna learn. through projectup, comcast is committing $1 billion so millions more students can continue to get the tools they need to build a future of unlimited possibilities.

good morning welcome to the final trading week of the second quarter futures pointing to a higher open we will show you what's moving right now. travel nightmare at the airport. more than 700 flights canceled yesterday as independence day travel ramps up. it is expected to reach pre-pandemic levels. disney's "lightyear" with a dropoff at theaters. it is monday, june 27th, 2022 and "squawk box" begins

right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm rebecca quick with brian sullivan brian, long time no see. it's been three minutes. >> i know. you might remember me from such shows as "worldwide exchange." say hello to my friend at the coffee cart outside. i miss him >> we will andrew will join us later this morning. he is live at the aspen ideas festival he has special guests like david rubenstein we will be joined by guest ken langone. he will be here on set with us on this monday morning, things are looking