. this is "nightly business aport" with bill griffe sue herera. techs a target? sharesell hard on reports the government may be looking at mo antitrust investigations. time to cut? more and more on wall street are convinced an interest rate cut needs to happen soon, and o fed president seems to agree. but more ominous, the street so thinks we might be headed for a recession. and the pla truth. another problem for boeing's 737 includin the max, but the company stands by its word that it is making progress fixing the plane. all of that and more tonight on "nightly business report" for monday, june 3rd. and we do bid youoo a evening, everybody. well come.

it was aack and forth kind of day on wall street. a tug of war between the outlook for interest rates and the prospects for technology. the nasdaq was especially hit hard today on reports trn gont is looking at possibly targeting some big tech names with antitrust investigations. it started with a wall street journal report saying thee justpartment is getting ready to take on google. facebook then got hit when the journal said the fcc would look into how the social media giant affects digital competition. she washington post then jumped in and said the ftc might look sto amazon and not to be outdone, reutersd the justice got the jurisdiction to investigate apple a their practices. late in the day a house committee said that it was going to launch a bipartisan inveigation into competitiveness in the digital markets. it's too early to say whether any of these stories are gng to panout, but the stocks were hit and they were hit hard in today's trade.

>> so let's bring in john freeman to discuss what regulation could mean for some of these big companies. he's an equity analyst at cfra research. nice to have you here. >> thank you for having me. >> it's a diverse group of companies. they're all in the tech space, of course, but they all do very different things. how would regulation apply? >> well, you know, looking at historical perspective the wayed it app to microsoft, there are certain remedies, you know? the fines andh. so fo those are really immaterial, but for microsoft the big one was of course debundling the browser from the operatingsystem, windows, which actually didn't really affect, you know, that much in my opinion, but the reas one keeping microsoft in a box in terms of m&a. couldn't use all of its profit and market caps here to acquire companies tooxpand i adjacent markets. fast forward to now, i think that kind o similar but with google, for example, it's very strange.

i mean, how do you, you know, debundle a searchal rithm? you would have very strange unintended consequences. i don't think it's really even possible. facebook as well. i kind of scratch my head. obviously you can bt up into instagram and facebook. >> right. >> the big things thatll of hese companies will be in an m&a box. they won't be able to use their market cap and their cash to buy companies to get into adjacent markets. >> apple, there are those who feel that ale hasad a strangle hold on the app market with its app storeuc and how it charges and how much it does not allow some companies in witr thdevelopments, but just today with their announcement it seems like ty're starting to change the way they're going to deal with that. >> yeah, it's very interesting. apple is definitely getting ahead of this regulation i think in a smarter way than the others, however, the app store, you know, at this point i don't think that the app store, you know, is a huge -- that the

bundling of the a store -- if they opened up the app store to don't arty providers, i think at this point it would really affect, you know, sales of iphones or tablets. matter of fact, m itht even enhance it at this point. for apple i don't think it's going to be as big of a deal. the thing really intriguing about the house judiciary press lease or announcement was the third point that they made, that they were going to look at the regulations themselves, the anti-trust regulations themselves to seef there are changes that could, you know, impact -- that would basically keep the monopolies stick power of google in check. i think that's the dark horse and a scari thin >> john freeman with cfra research, thank you. >> thank you. now to interest rates. james bullard said today that

rate cut may be warranted soon. that's a quote. bullard cited global trade tensions and weak inflation, and manyn wall street seemed to think the interest rate futures market may have already priced in several cuts this year. sm steve lie tells us, the looking at so something far worse. >> reporter: several forecasters are now convinced the u.s.ea economy isd for recession as a result of existing and 24re9end tariffs from the trump administration. citing rising trade protectionism,forecasters responding to a new survey fro the national association of business economics. it's up from 15% this year morgan stanley wrote in a report, quote, if trade tsions contin to escalate, we believe the global cycle will be in recession in three arters. kevin hassett indirectly said the new tariffs would hurt the u.s. economy. >> i can say if folks are tuning

up theirodels to wor on it today, i think one of the things you see especially in the near term, the impacts are much larger on mexico than the u.s. i think the intent of this is to solve a very, very important problem that the president iscu d on. >> reporter: the consensus has quickly changed from nonterest te cuts to general agreement to multiple cuts as bond yields have fallen sharply. >> you look at the tenyear, 2.10 in round numbers. you look at the obvious versal, those are all bear signs. >> altman's company said in a report, we now see a base case in which the fed will reluctantly cut ties three times in november. market prices priced in a rate cut as sn as july and agree with evercore that multiple cuts are ony. the the question is whether they're ready to cut interest rates sos soon saying it's on hold. they have to wonder if rate cut

are the height economic answer to tariff hikes. adding to those concerns, trade tensions. steve mentioned the tariffs and mexico and over the weekend china issued a so-called whi paper outlining its positions in its dispute with the u.s.ni yoon is in beijing with more. >> reporter: china release the its white paper,d its sec policy paper on the trade conflict with the united states, and it list the tsee thi that it wants to s before beijing will come to the negotiating table. remove he u.s. needs to all tariffs imposed since last year on cnese goods. e realistic about the size o chinese purchases of u.s. products and ensure there is balance in th tech of the deal. otherwise, the white paper was highly critical of the u.s.'s tactics and put all of the blame for the failed talks on washington. in the meantime bjing says i will fight the trade war to the end. trade wars kicked in and beijing

outlined the trade criteria for the black list aor firms individuals and state media said federal express is under investigation from mishandling packages from huawei. fedex is under b attack state and local media. they ran a commentary saying, if he haddestx, fe no one can help you if you break the law. they posted aeport guessing which two met the criteria to be on the black list.mp ies that cut ties with huawei and violate market rules for non-commercial purposes. it's suggesting intel, qualcomm, broad com and goog. for "nightly business report" i'm eunice yoon in beijing. s our trade texts and weak global growth setting us up for possible weak growth or worse? mark avalon is with us. thank you for joining us.

>> good to be here. >> the bond market's job iso anticipate. right now it anticipates a slowdown. interest rates have gone down. the for waits a sign. is it possible the fed will cut tes because the bond market is anticipating a slowdown? >> it's something they're looking at. first quarter gdp was over 3% in th u.s. the fed in the fourth quarter last year, just a few months ago, was raising rates. i think for them to cut in june is just a little much. i think the only thing we mht see in direction of accommodation is a tone or a changectn the pron of what they're letting the markets get a hint of and get an idea, but i don't see a rate cut in june. >> all right. now the backdrop is also slowing global growth. the fed has to look at that asw , does it not? european banks are having issues and their economies are not doing well. ah well, we've had slowing europeanincials and tough

sledding over there for some time. with the tariff talk and the trade skirmishes that we're having around the globe, it's bringing down growth further. that is a concern especially when theerman bund is yielding negative 20 compared to our rate. the fed is going to be pressured to look at a global slowdown a they are looking at that and will process that. >> again,hat you seem to be saying is you think it's premature for the fed funds fu,re mark the interest rate market, to anticipate maybe a 50% posbility of a cut in september and a 97% possibility of cut in december. you think that's premature? >> well, i think that's premature because that's september and december. i'm concerned about the talk of june rate cuts. june is not going to happen. that's way too soon. i think they're going to look aa what the talk progress is. remember, if we get even a little trade deal, some positive news and those tariffs go away, even if the deal is w down, the markets are going to like that. if we can get some normalcy,

think that helps growth here as well as in china. i think tt keeps theed away from raising rates. i think it's a wait and see game for china f the most part right now. >> if you're a long-term investor, what do you do in this ever changing environment? >> well, you can tweak with the low rates and to dividend stocks but really those are minor adjustments. people shoulinnot be rea to headlines. you should have your plan in place before the n because these ups and downs are inevitable. >> mark, thank you for joining us tonight. >> good to be here. >> as concerns of a slowdown contin h, interest ratese fallen sharply and that means adrtgage rates have fallen as well. to that the possibility of rate cuts and things are looking up forome buyers, but as diana olick tells us anotherroup to benefit from the rate drop are people looking to refinancor >> reporter:age rates have come down more than 1/4 of a percentage point in just two eks. now tha may not sound like a

lot, but it can make a big difference for homeowners and home buyers. the average rate on the-y r fixed is now solidly in the 3% range, around 3.9%, but it was up over5% in the last fall and in the mid 4s through the much all important spring housing market. there are 5.9 mlion borrowers who could drop their rates by at least 75 basisou points t a refinance. this is an increase of 2 million people in jus the past month according to black knight, a mortgage software company. that's the largest population of elsible candida in nearly three years and represents an aggregate of $1.6illion in potential monthly savings. per borrower, it's about $271 a month. for home buyers,nny savings that monthly payment is crucial given today's high home prices. also, lower rates help more buyers not just afford the loan but qualify for the loan. for "nightly business report," i'm diana olick in washington. to the markets now.

as we mentioned earlier, it was a tug of war between rate talks, tech worries. the nasdaq was the big draw. the dow eked out a 4 point gain but the tech names took the nasdaq down by m e than1.5% or 120 points. the s&p wasutown a 7. manufacturing activity in may fell to its lowest level in 22 years. the closely watched institute for supply management's reading fell to 52.1, its lowest since october of 2016. and while anyth0g above shows expansion, the ism chairman said the may number shows manufacturing is earuggling in the face of global demand. on the flip side, new vehicle sales in the u.s. for major automakers, at least those that still report monthly sales, th ticked higher in may thanks to a stronger economy and an optimistic fueling demand. it's the first positive month, by the way, of 2019. up nexboeing's ceo weighs

in on his company's latest issue with i 737 aircraft. shares of boeing were under pressure again today after the a said that there is a new problem with 737 jets. 'sand boei ceo was out there again today reiterating that the company isaking progress fixing the grounded 737 max. phil lebeau has more. >> reporter: it's another problem fboeing's 737. this time it involves faulty

parts with the slas on the front of wings of certain 737s,e including s ng models and the 737 max. the issue will be fixed while the max is grounded, but it's yet another black eye for the company'sgu beled airplane. >> this particular issue around the slide tracks is a well understood one and one that we'll work our way through quickly. it's one that we're going to stay o coordinated withur customers. we know it'smportant and we want to minimize the to our customers. >> reporter: boeing is not sure when thelane will take off again. he says the plane's flight control system is being tested in a simulator and an application for recertification could come soon. some question if he should stay on the job given the controversy, muilenburg said he's the right manafort job. many travelers refuse to fly it again. >> i've heard those comments. >> what's your reaction when you hear people saying, i'm not

getting on it? >> first of all, we deeply regret the impact. we're sorry for the lives that were lost. this will always be with this an company, i tell you that. it weighs heavily on us every day. when i hear that he is comments from the traveling public, as you might guess, i spend a lot of time in airports. i've heard these comments. they'retough. they wear on us deeply as a company. >> reporter: weighing on the minds of investors is when boeing will resume production of the max and restore the production rate from its level of 42 per month to its previous level of 52 per month. >> reporter: the production level for the max is crucial,iss he backlog of orders for the plane. while this have been no cancellations since it was grouped in mid march, over that same time frame there has not been a single new order for a 737 x. phil lebeau, "nightly business report," chicago. humana squashes any deal talks with centene.

in anc filing, humana said it will not make an offer to merget with h insurer centene. huna was making an exception to the policy of not commenting onmo . they tumbled to 51.82. cypress semiconductor will be sellingo itselfe german ship making company infineon. it will make the combined mpany the world's largest chip maker. they jumped nearly24% to 22.07. apparel company pvh has signed a licen deal to distribute the calvin klein jeansal. they will support the strategy to build a successful women's jeans wear business. pb 8 shares were up to 87.73. g 3 shares rose to

advanced micro devices announced a multi-year deal to samsung. they will license to samsung for use in mobile devices and smart phones. also, samsung will pay amd royalties and licensing fees. amtrak shares 27.58. apple kicked off its annual developer's conference today with morehan 5,000 people from nearly 100 countries expected te , and the company has a lot riding on it. josh lipton is live with why it matters. >> welcome to wwdc 2019. >> reporter: apple's ceo tim cook's mission today wasimple bu critical, convince millions of developers all around the world tha they should keep spending their time and money creating apps for his products not the competition. inpart, he made that case by noting that consumer adoption

rates are his operating syste is much higher than the competition, meaning goog's droid operating system. >> 85% of i0s customers are on the latest release, and in fact, i0s 12 has been installed on more systems than any version of i0s ever. now that's in stark contrast to the lat offering from those other guys, which was released by i0s 2, o theyy had 10% adoption. >> reporter: to win over they introduced new fee turgs, apps tools. they inveiled new technoly th lets developers more easily bring apps they create for the ipad to the max. that makes theirives a lot simpler and means a lot more apps could be t comingthe mac platform. this all matters a lot for apple

investors because they pin so much hope on apple's faster growing, higher margin serces business. a big, important part of that business? the app store representing an estimated 35% of that services keep t, so cook needs to these developers happy and loyal and creating compelling experiences fis users if that broader services segment it going keep humming. llthere are cenges for the app store, however. the u.s.re supme court recently ppened app a legal set bac allowing antitrust suits against th app store. they argue that apple m monopolizes it. reuters says the u.s. department of justice was given juriiction to include apple as part of a broader antitrust probe. the bottom line fors investors

this. where can they make money? they know consumers spend a of money on the app store. an estimated $47 billion last year alone, nearly double what was spent on apps from rival service google play. i'm josh lipton, san jose, california. ag> up next, the $150 billion market in the fighnst cancer. finally tonight, the world's biggest cancer research meeting chicago.ay in the american society of clinical oncology, better known as asco, brings together more than 40,000 doctors, researchers anded mical executives to discuss everythinh new ie fight to beat cancer.

meg tirrelis there in chicago. >> reporter: stacy's mother was diagnosed with breast cancer six years ago. as her m started treatment, stacy got some news of her own. >> 4 months later i had my very own mammogram and i had been diagnosed. >> reporter: a mother of two, she had just turned 40. what she f learned inr months taught her how to advocate for herself. >> i am a six year breast cancer survivor. >> reporter: she's become an advocate for others as well. she attends american society of clinical oncology meetings. it's where thousandsf cancer doctors converge each year to discts the lat advancements in treating cancer. >> a lot of these newest therapies are directed towards who's going to benefit the most. they fulfill an unmet medal need. some have had marginal therapies and this provides some needed therapeutic resources to

patients, especially those that doeat havey other therapies. >> reporter: updates at the conference move stock at pharmaceutical companies. biotech company iovan saw its stock rise on enthusiasm for a personalizedreatment f melanoma when other drugs had stopped working. >> you're very pleased to see the pill technology is able to offer them a 38% response rate in this extremely late line patient population that doesn't alternative. they have run through ketruda. sometimes the checkpoints have exploded on them. mutation.a bras these are all available care for metastatic melanoma. >> reporter: for tinanna, this is an opportunity to talk to people working in cancer. >> i'm able to have a hard

conversation that says for as much hand clapping and pat on the backing that's goingon, when we make a discovery we still have 117 people dyng evay from metastatic breast cancer. >> reporter: and she said it gis her a chanco say thank you for the progress that's been made. for "ghtly business report," i'm meg tirrell in chicago. and that is "nightly business rort" tonight. i'm sue herera. thanks for watching. we'd like to remind you this is the time of year your public television station seeks your support. >> i'm bill we do thank you very much for that support. see you tomorrow.

woman: this is "bbc world ns america." the freeman foundation; by judy and peterblum-kovl, pursuing solutions for amer and by contributions to this pbs station from viewers like you. thank you. jane: this is "bbc world news america." reporting from washington, i am ne o'brien.