it's 5:00 a.m. at cnbc global headquarters and here's your 5 at 5678 we look at stocks doing something for the first time in a month as attention shifts back in two days with testimony of fed chair jerome powell andy jassy prepares for his first face-to-face with the bloc's piece we speak with her. modi has big tech on his radar as he prepares to launch an

all-alarm launch effect. and shares of fedex continues to disappoint. later in the show, a possible breakthrough in the "titanic" area sub search. it's wednesday, june 21st, 2023. you're watching "worldwide exchange" right here on cnbc ♪ good morning and welcome to "worldwide exchange. i'm frank holland. let's kick off the half hour with a check on u.s. futures after stocks closed lower for a second straight session in a row yesterday. taking a look at futures right now, you can see it's actually green, very slightly green right now. just a minute ago it was fraction aulie lower now you see all three indices fractionally higher, but we basically call it flat the oil sector, we saw a whipsaw effect wti up a quarter of a percent.

brent crude up frangally and natural gas. wti and brent are off their highs from yesterday morning at the same time. we're seeing a bit of a bitcoin bounceback, this morning up 3% ether up over 1.5% turning now to a developing story and fresh comments from china after president biden late yesterday called that country's leader a, quote, dictator, those comments possibly negating any good will during antony blinken's face-to-face with xi jinping last weekend our eunice yoon joins us with more over to you. >> thanks, frank it's unclear if president biden's remarks will undermined blinken's visit to china when asked speckly about president biden's reference to president xi as a dictator, the

foreign ministry as you would expect was very critical saying that this violated china's political dignity, amounted to public political provocation, and also called the rye mark absurd and irresponsible bear in mind china has made similar remarks when president biden has called out president zi, zi xi during the state of the union address when he advised that xi was not in a good positional that time the chinese president called president biden irresponsible with those remarks oochltz another interesting situation is the state media has not been covering president biden's remarks about the word "dictator. "so it's suggests that perhapsed a they're seeing, they're looking to push forward with the relationship especially with the economy in

such dire straits. >> eunice, while we have you, we want to ask you about something. chinese regulators are looking into two major u.s. companies. what do we know about this >> i think this is a perfect example, frank, of one of the big complaints of the business community here and that's all the uncertainty of doing business here. what you're talking about is the shanghai regulators are looking into the way starbucks and shake shack are collecting their data. it's the kind of thing that unnerves the business community here. >> eunice yoon live in beijing thank you very much. speaking of china, a quick programming alert. a new cnbc documentary is looking at how chinese spies are affecting corporate america including an illicit campaign by china to dominate activities

"china's corporate spy war" airs here tonight at 10:00 p.m. the markets are coming off their first back-to-back loss since the beginning of may overall it's been a good movement this as attention shifts back to to the fed where jay powell gets set for two days of testimony joining me now, craig johnson, chief technician at piper sandler. great to see you. >> great to see you. >> we've had a week since the hawkish pause. powell on capitol hill expected to face a lot of question about the future of rate hikes how does this move the markets and what can he say to keep the rally going? >> i think the what powell can

come back and ultimately say is perhaps this is paw at this point in time, but as we gough through and look at history, frank, and when we've seen a pit stop and pause and you look at the market performance from a sort of hike perspective to a first cut, we've seen equity markets move higher. i think you're going to continue to see equity markets move higher the markets have moved over 12% higher. >> you're expecting them to lead the markets. maybe not say it explicitly, but lead the market, not two more hikes. >> no. to beclear, frank, that could be months away before you actually get some sort of cut. the dot plot is suggesting you've got two potential rate increases coming, potentially one in july. probabilities are pretty low the reason i highlighted this in our most recent publication, frank, is to put the idea in the

people's mind when you get the last hike, markets have historically moved higher. >> craig, i want to go to your wheelhouse, the technicals the s&p, what does that signal for the rest of the year does that change the price target of $46.25 >> it means stocks in motion had to stay in motion is kind of what we've seen. when we go back and look at historical periods from january to june and you've got better than an 8% return, you typically see positive returns for the full year. they've been in the mid-20s. is there's more room go. we did establish a 46.35 price objective in december of last year and from our perspective, we think that's going to be an achievable objective i do think over the summer months, frank, we're going to

get some console date. again, ultimately at year end, post september you've got a strong push. >> i think you were the yore inl nadir of the hop, the pop, and the drop i'm going to credit you. great to see you. >> thanks, frank. a lot to come on "worldwide exchange." one word investors have to note. two can't-miss interviews starting with a "worldwide exchange" exclusive with margrethe vestager and later a cnbc interview with anthony wood, the roku ceo, streaming wars and much more it's all here when "worldwide exchange" returns. lad we did th. i'm so glad we did this. i'm so glad we did this. i'm so...

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welcome back our joumanna bercetche is standing by in the newsroom with your global briefing good morning >> things got off to a soggy start tfrmt hang seng pulling back significantly the japanese bucked the trend. on the inflation report which came through a few hours ago shows inflation continues to run hotter than expected, so creating a very difficult backdrop for the bank of england which meets tomorrow

now traders are saying there's nearly a 50% chance that the bang of england goes for a 50 basis point or half a percent higher a lot of focus on the uk inflation picture, and as a result from a sector perspective, we're seeing significant lonss for the uk homebuilders a lot of concerns on what that will mean for the european markets. let's stick with europe and turn our attention to brussels today amazon ceo andy jassy will discuss the future of how his company does business in the region under the still new digital markets act. jassy, however, is not the only big tech ceo getting face time with the watchdog. on monday mark zuckerberg sat down with vet gestager and her on the draft rules likely to be

adopted in the coming months monday's meeting also had other implications the eu is investigating meta on possible violations of antitrust laws they're looking reportedly to block adobe's billion-dollar deal last week she charged google with antitrust practices. joining me for all this u competition commissioner and executive vice president mar mar grethe vestager. >> thank you it sounds impressive, i must say. >> i want to start off with the news today you're meeting up with andy ja jassy. what are you expecting from this

meeting? what do you think the big takeaway will be >> one thing was obviously important. we've had an antitrust case with amazon that we have settled in order to have a data silo so the amazon retail will not use the data of the smaller retailers on the marketplace, but also that a second buy box will come live to give consumers what they have already. a push on the conduct of in particular general tish ai in order for us to safely embrace all the benefits that can come with using these new generations of artificial intelligence. >> so i want to ask you about ai you met with meta platform ceo mark zuckerberg to discuss possible roles and usage safeguards you've seemingly been ahead of u.s. regulators so far and looking at how this is being

used give us a sense of what direction you're going in. there's a thought that the u.s. will follow in some form or fashion. >> i think the most strategic choice is not to regulate technology as such but to regulate the use of technology and only to regulate when something fundamental is at stake so there's a risk of customers being discriminated when they want the mortgage or for patients not being seen as who they are in the health sector all of that will happen in a couple of years. a couple of years is like a century. what we're pushing with the u.s. and with other global partners is a voluntary code of conduct when it comes to generative ai because the potential is so enormous, and it would be great if businesses could use it.

we try to bridge between now and the legislation kicking in by voluntary commitments with the u.s. if possible with india, of course with a number of european countries, with japan, in order for people to see, well, we can safely use also this new very powerful ai that we literally now have at our fingertips. >> let me ask you. what's been the sur praise of the voluntary code of conduct? what kind of feedback have you gotten not only in the u.s. but also in the eu >> i think the feedback is pretty good i think there is a sense there is a need, and in particular lar there's a need for an international step forward instead of different jurisdictions competing about who can do this or who can do

more because one of the things here is, of course, that in the development of these large language models, this is very costly it ee also important that you have large market access and that you have a severance of a level playing field. and i think a voluntary code of conduct would be part of the answer in providing for this. >> as part of that voluntary code of conduct, how do you address data privacy a lot of concern about the molds and where it comes from. i was speaking to a german ai company and they're concerned that it may be trained with a california sensibility rather than a heidelberg sensibility. >> that's indeed something for developers to consider because there are huge differenceness between us, between norwegians, italians, between americans. so it is really important to thank that thing into

consideration. is one thing the other is issues like copyrights, trade secrets, how to make sure you can actually protect your trade secrets and what you have are copy writes and other rights, that they're yours. >> we have to talk a little antitrust. a big focus for you. last week the european commission charged google with using its position in dwron line advertising to minimize "i" rivals you're also looking at the adobe deal how should you view your broader view >> well, i think the positive for investors is, of course, what we're strieshing for is a level playing field and open marketplace where market power is contestable and others can stand up and find their commerce for the kboolg case, this is a preliminary view, but there is an inherent conflict of interest

because google is at the sale side, they're at the buy side, they're at the markets when it comes to the stack, and it's difficult to see if our case is proven how that can be solved without actually selling out -- selling off either one part of the conflict of interest or the other parts of the sale side and the buy side. >> as that case continues to move forward, i know you said you're about fairness and balancing out the playing field, but can you see companies forced to sell parts of their businesses is that the direction you believe you'll continue to go in >> it's an extraordinary move on our side we, of course, have the on gage to enforce the less intrucish remedy that would solve the competition concern. this also shows why we're saying this might be the way to go, that we're talking about sort of deep ingrained conflicts of interest in a very complex

market where this idea of behavioral commitments seems to be quite far-fetched it can all be monitored by anyone who's not controlling the algorithms that are put to work here it's an extraordinary situation, but, of course, it shows ourlesness to use our tools where this is the only solution that might work. >> commissioner, before we let you go, one personal note, you're up for possibly leaving the euro investment bank any statement you want to make about that >> no, not at all. it's the very early days day ts. >> commissioner vet gar, we appreciate your time we appreciate your insight on all these matters. >> it was my pleasure to be with you. have a very nice day. coming up on "worldwide exchange," a possible breakthrough in the ongoing

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local life and cultural treasures. because when you experience europe on a viking longship, you'll spend less time getting there and more time being there. viking. exploring the world in comfort. welcome back to "worldwide exchange." a developing story a missing submersible below the sea level. this morning a possible

breakthrough in that search. nbc's jay gray joins me with much more on that. jay, good morning. >> reporter: hey, good morning, frank. you know, teams from the air have heard noises beneath the surface. cnn reporting that government documents show a banking but neath the surface of the water every 30 minutes that's giving hope to those teams working on this massive search-and-rescue mission which is being run out of the coast guard office here in boston. additional plains, ships, specialized equipment and rescue teams from around the world right now rushing in to a 7600-square-mile search zone in the atlantic, an area larger than the state of connecticut. >> all i can tell you is there's a full court press effort to get a crew on the scene as quickly as can be. >> reporter: pushing into deep water using sonar and an

underwater drone so far there's no sign of the missing ocean h gate submersible after going missing sunday morning with five men inside a pilot and oceangate founder stock on the rush and businessman shaz ha dawood and his son as well as ph nargeolet and businessman hamish harding. >> i would assume they're stuck in mud or tangled in the "titanic." it's a search & rescue effort that continues round the clock estimate this morning, frank, that about 24 hours of oxygen remains inside that sub. >> jay, everyone certainly remains hopeful.

we're hearing the u.s. navy is rushing in specialized equipment right now. what can you tell us about that? >> reporter: yeah that is correct are trying to get some salvage equipment inside that search zone so if the sub is located, they can help to pull it up and out of the water remember, they've got to fine it and get it to the surface. as we've been saying, they're really up against it as far as the clock is concerned. >> our jay gray live in boston everybody is keeping their fingers crossed. a lot of prayers for those people trapped down there. straight ahead, shares of roku up, beating returns of rival net flick. we speak with ceo anthony wood his take on the stellastk r oc performance, the streaming wars and much more when we come back.

it's around 5:30 a.m. in the new york city area we're just getting started on "worldwide exchange. still on deck, heading for the house. fed chair jay powell set to teff before lawmakers as they look at the policy path forward. we're also watching shares of fedex taking a look at the hit ahead of open as the giant signals a rocky road ahead, but our next guest not chairching his bullish tune. and india's prime minister is set to meet with some of tech's biggest leaders as the

country looks to woo business away from china. it's wednesday, june 21st. you're watching "worldwide exchange" right here on cnbc ♪ welcome back to "worldwide exchange." i'm frank holland. thank you for starting your day with us. let's pick up the half hour with a u.s. check on stock futures with the indices coming off a second straight session of losses taking a look at a big picture, mostly flat. the nasdaq fractionally low, the s&p and dow jones fractionally higher for a check of this morning's top corporate stories, our silvana henao with more. good morning to you. >> good morning. fed chair jay powell will head off to the capital he'll go before the house financial services committee today and the senate banking committee tomorrow as part of a mandated semiannual report on monetary policy. the fed chairman is expected to face tough questions on the

central bank's plans for bringing inflation under control and how much further it will raise its key interest rate moving forward. india's prime minister is set to continue his visit to the u.s. as he prepares for a sitdown with a number of american executives. sources tell cnbc tim cook and other ceos will be among those attending a white house day dinner with modi tomorrow. those sources at a separate meeting with tech leaders is also in the works for this friday with plans to focus on diversifying business away if there chinaer and this after tesla ceo elon musk met with musk calling the meeting, quote, excellent, adding that tesla will be in india as soon as humanly possible. the korean barbecue chain

gen restaurant green will set their price ipo today. it came after a massive session last week. shares are up 6%. >> best performer. are you a huge cava fan? huge cava fan. >> i'll have to try it. they issued some soft guidance for the year ahead. let's talk more about this with ken huckster ken, good morning and thank you for being here. >> thanks for having me. >> give me a sense how you view the quarter. we saw investors not taking a fancy turn to it a revenue miss, but it was a beat on eps and the guidance was soft to mix.

what's your price target any changes? >> they actually did okay in the quarter. they beat out operating income they're really starting to make this move toward reducing their structural cost. it's about the future. it's about really stripping out the cost we did price our own jeck active coming down a couple of percentage points. when we think about the future, this is about the struct y'all cost they're pulling out of the business to really change how they look at the future. >> your price target was 295, now 290. stock trading at about 233 right now. so you do see quite a bit of upside so ithink you are one of many analysts who say we're going to lock at the number, of course, but really it's about the transformation plan, console days all the businesses that's expressed ground and freight into one company integrated together and also the cost-cutting plan, multi-billions of dollars over the next few years what would be the grade on that plan >> you're talking about taking

$4 billion out over the next few years. another $2 billion between 25 and 27 so you're looking at creating about $18 of earnings potential for a company that's only earning $15 today. this is huge upside potential when you think about things like retiring plains really changing the cost sector. you nailed it on the head, combining ground and express that's the future of the i organization you're going to have one consolidated equity. they've done it in alaska and indianapolis and now they're going to do it across canada you're starting to see them getting bigger and bigger stps in terms of cross-curting. >> it's hard to look at. this really a big sea change for this company and i want to talk about their

rival u.p.s. how does this position them against u.p.s. this year stocks up over u.p.s but historically it's been a laggard. >> historically you look at the margin u.p.s. has got a teamster contract going on, amazon pulling out revenues, so they've got their own issues, but they're performing well. fedex, it ees the thin margins no cash flow the fact that they're looking to pull out $7 billion in costs, they could become cash generative that's when you talk about the future >> with fedex, i have to talk to you about china. in recent days we've seen banks reduce their gdp how does this continue time path fedex? does it make for a concern if china continues to be soft >> i think what you're seeing is

still the belly space is coming back online. fedex is parking more planes, so they're taking more of the large-body jets out of commission they're using that belly space to get freight growing they're looking for very thin revenue growth and their outlook has got from 1% to 3% revenue growth over the next year, so it's really about this cost-cutting program it really create as the earnings trajectory for fedex to create value. >> they'll have to continue to try to consolidate and cut thank you very much for being here. coming up here on cnbc, a first on cnbc sitdown with roku ceo anthony wood live from the cam lions advertising convention his outlook for the consuming

awards more "worldwide exchange." back in just a moment. dad, we got this. we got this. we got this. we got this. we got this. yay! we got this.

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♪ these are the people, who help you stay well. ♪ ♪ searching lower prices, ♪ ♪ and brands you love on the shelves. ♪ behind the counter, or in the aisles, healthier's better when it happens together. cvs pharmacy. healthier happens together. welcome back to "worldwide exchange." let's get an early check on europe our joumanna bercetche is standing by in our london newsroom with your global briefing joumanna. >> good morning, frank european markets after starting off in slightly negative territory have turned around in the last half hour more green on the board with the exception of the ftse 100.

broadly speaking we're seeing a bit of a bounce with some of the cyclicals. there is a lot of focus on the uk focus you can see the index is slipping slightly. this is because we've got red-hot cpi numbers come out this morning uk inflation stuck at 8.7% and made the fine expectations for 30 basis points. core cpi is very telling also increased the monthly jump coming in this puts a lot of pressure on the bank of england. their policy decision is going to take place tomorrow on the back of that we see a huge reprice on the uk the market is now pricing in at 36 basis points. tomorrow there's a 50% chance of a basis rate hike. interest rates are moving a lot higher

tomorrow's meeting is going to be crucial but i want to take you to one stock we're looking at from the overnight session and that is softbank you can see here it's up 3.7%. topping the top of the nikkei after bullish comments, son tried to draw a line underneath the chinese/japanese conglomerates, more than $6.5 billion loss he instead talked up the prospects of artificial intelligence and the plan going forward is to shift from defense mode to offensive mode investors seem too like it joumanna, great to see you joumanna bercetche live in our newsroom. we'll have upgrades and downgrades in firms you like and stocks you know. tesla from overweight to equal weight barclay says the jump in tesla

shars so far this year, just a bit too sharp and that questions remain on margins and demand elasticity shares up. it sees potential for topline acceleration driven by price increases and healthy net ads. shares of spotify up 2.5%. jefferies raising its price target on netflix. it says positive sentment for ai will help with the next set of stocks >> turning our attention to the biggest global tieszing convention currently in full swing in france, industry leaders grappling not only with a potential pullback but more on ai julia boorstin with a special

guest. over to you. >> reporter: thank you so much i'm joined right now by roku ceo anthony wood you're here in cannes talking about your stock up 62%, but still down 82% over the past two years rchl you concerned about economic uncertainty impacting the advertising side of your business as well as the consumer side >> if you look at roku's business from a big picture pinl of view, we're the leading streaming platform in the united states streaming is extremely important. we're in cannes talking about traditional advertising to streaming. we had 10 million newtive accounts last year half of the broadband households in the united states start their tv experience with the roku home screen our ad business is great for us.

it's cyclical and the ad business is in a bit of a downturn, but we always turn it around, growing futures. last quarter was the most engagement ever per user, almost four hours per active account. there's a lot going on in the streaming business right now. >> what we're hearing is the ad market could be down by as much as 15%. >> we don't break out our business, but we're not seeing that, i think probably because -- i mean obviously our ad business is down compared to what the growth rate -- the growth rate is down compared to where it used to be. we're seeing some signs of a rebund, but most of that is just cyclical move if there linear to streaming. it has the biggest impact on our

business we're focused on innovation. so cool things we recently announced mcdonald's has built roku city. when i walk around at night and i see purple glows coming out of people's windows, that's the roku purple screen saver that comes on by default. it's one in every 11 minutes now. it's got a lot of easter eggs in it people like to watch it and look for different things and mcdonald's is now available in roku city, which we're cited about. >> mcdonald's is one thing but you have a deal. this year you announced updates with how the partnership is going. you have a deal with instacart how important is commerce to the advertising of roku? >> we're pushing on innovation on all areas of our plalt fofrmt if you think what is roku's

advantage in the industry? they're the leading streamer television used to show up on your tv. now you have a computer in your tv it allows a lot of features that weren't available before we're looking at all of these things for example, last year we did announce the commerce partnership with walmart that's going well. we're seeing a lot of usage of that when our viewers see the ad, 50% of them are pausing and shopping on that ad so we're seeing engagement with those ads as well. there are ooh a lot like that. >> there are also a lot of innovators from tiktok all the way down the line. i'm curious in terms of the competitive space your perspective on the new

partnership taking on roku with some of the players they're selling at walmart what do you think about that as a new rival and how will it impact your business >> if you look at the streaming platform business, our main competitors are amazon and google we bill a platform bill for streaming whereas our competitors took a mobile platform and built it up to streaming. we added 10 million accounts last year. it's a competitive boggsusiness. >> you're looking for ad dollars as well as being partnerers for you. we're out of time but thanks so much for joining us at the

cannes advertising sector, back to you. coming up on "worldwide exchange," the one word that every investor needs to know today. tom lee is laying out the day ahead. first june is p.r.i.d.e. month on cnbc. we're sharing all month long and sharing stories of corporate leaders with you as we head to break, here's the poshmark ceo. >> for me as a lgbtq y who went through the process, i'm very thankful me and my partner now have two twins i was shocked by the number of people askinger the process. to me, i welcome to share with them about the struggle, the costs, the emotional journey we went through as partners and how we got there being able to answer those questions really felt like i was creating a bridge for people to be more comfortable to

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welcome back to "worldwide exchange." live shots from around the world this morning including laurng hong kong, new york, and wachl there in dc, fed chair jay powell will head to capitol hill to testify a lot of people will be listening for any clues about the fed's rate hike strategy going forward or if this could be even more than a pause. time now for what we like to call your w.e.x. wrap-up begin with the surveillance aircraft looking for the missing "titanic" submersible. they've detected underwater noises in the area they're looking to determine the origin of those sounds >> china responded to president biden after he compared that country's leader to a dictator in a statement the prime

minister made a statement. and regarding ar official intelligence, no further information has been released. and an attempt to pump the breaks on new legislation that could place limits on financial advisers and requirtirement funs the move comes as softening sales in the world's biggest auto market races concerns over market growth. amazon announcing this year's p.ryear e year's prime day event on july 11 and 12. we're gearing up for the trading day ahead. we're going to get trades from winnebago and home trading then at 10:00 a.m. eastern fed chair jay pow ll appear before

the house finance chair committee and we'll get a speech from the president loretta mester pricing for growth has run far past estimates still goldman's case, the climb, though it sees a possible drop to 3400 if a recession becoming more likely. joining me, the co-founder and managed partner ahead of research, also and a cnbc contributor. good morning. >> thaemg. i know your price target is $47.50 has that chairmged at all, the market coming off of two days of losses >> our plan was that it would

track softer than expected and resilience could be stronger and the fed wouldn't have to be as hawkish. i think those things are coming into play. there is a lot of evidence inflation is cooling we feel pretty confident we're going to close higher by the end of the year. >> we're not going to cover that i know you're feeling very optimistic about the prospects there. i want to talk about other sectors where you see the ipo data you saw there's opportunities in one sector because the pmi sector is coming in lower. can you explain your thesis here >> yes we're starting to ceecee the pmi the is a survey of it. that looks like it's bottoming

at a low level the s&p global pmi is just starting to kurl abong 50. again new orders are improving and prices are actually easing this, believe it or not, is actually a signal for industrial stocks because since 1948, when you have it, industrial stocks outperform 95% of the time and the average gains are over 2%. it's time to buy industrial stock here. >> a lot of upside on industrials. not normally where we turn to. you also have a new note that came out last night. you call them super grannies given us what your faifbt of is from fwrap yitsz you have right now. it comes from our core

these are built on four tactic am treatments and three or for may fa portfolio the top is a system that surprises many people. they're a software company wu they're used by many companies to design chip as you know, semiconductors are soaring. this company is the center of that it's an ai play that's not a chip play. >> i think we were sloiing your sleeper grannies i meant to put up as the cadence design it's kind of the framework when it comes to the big tech before we let you go, what is your w.e.x. word on the day? >> i think over. we think it's cooling inflation. that means the fed can allow

financial prices to ease and stock prices to go up. >> something to watch especially as we see jay powell go to capitol hill that's going to do it for us on "worldwide exchange. "squawk box" is coming up next thanks for watching.

good morning dow futures down slightly. waiting for another dose of fedspeak with chairman powell later today. ceos lining up to meet india's prime minister elon musk gets face time as he tries to crack the indian market we'll have the latest. president biden refers to president xi as a dictator

beijing is firing back i,000 they were get i a along awl together is this the beginning of the shorter days >> stop it not tomorrow today. >> today is the oi official first day of summer. that means winter is right around the corner. "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box." we're live at times square i'm becky quick along with joe kernen andrew is off today. the market's going to hear from jay powell he's expected to testify on his semiannual report on monetary