he is allianz's global portfolio manager.tion is are the markets as sensitive to these ups and downs of trade as we make them out to be? burns: stock markets definitely are. i think there has been a diversion's between how is this going to impact the economy versus how does this impact the markets. a case could be made that unless you have a significant tit-for-tat escalation of trade tensions, the effect on the and notwill be muted large enough to offset a lot of the benefit that we got from the tax cuts and deregulation. if you flip that to how does this impact the stock market, you can see the fact that those stocks have given back some of the recent gains that they are impacted and the question being why, when the tax cuts are clearly bigger. the primary reason is initially, the equity markets, they priced in the good trump but not the bad trump. they acted like they could get trump a la cart. they never really priced in the fact that he did run the most protectionist campaign we have seen in a long time and now they are

at allianz who had already made up their own minds saw that sentence despite the outcomes of the referendum as an insult it also infringed upon an e.u. article demanding neutrality. that. says it. so yes it up with dummies you know scott just give this. and then who are not mixes. going to do your. group i mean is that funny that we're going to prevent. the exact city. you know locomotives you'll do up it don't go do do do men these are peaceful says it. always up in. large scale privatizations of a key demand in every memorandum that the troika has imposed on every greek government the water companies of athens and thessaloniki always on the list. goes. on the good. mr make a law case as a journalist and was new democracy spokesperson. the later became interior minister for the right wing government formed by antonius a modest and twenty twelve. that was the year in which a minimum percentage state holding in the two largest water companies was abolished by law paving the way for complete privatization. thought if you tickle bees in the couple. of them one of your. i left she would have ma

alix: also still with us is neil dwane of allianz global investors. quickly will the fed have to react? neil: the economy is running hot. it is going to run a little hotter. i think you have to assume that the fed will look through anything and assume that the phillips curve is eventually going to work and we will see the rates. definitely two more coming. despite the concern around the yield curve, it has become a redundant indicator. we all know that the inversion is not necessarily going to be the precursor to the recession that everyone is worried about. of -- isnt schutte still with us. ken: i think they have carved out room to let it run as hot as they want. janet yellen one said she is going to let the economy run hot. i think jerome powell essentially said inflation is going to go around the 2% target in a medium-term and it only becomes an issue if it is persistently above 2%. i think they have plenty of room to let it go hot because they fed does not want to cause the next recession. alix: it also comes in terms of trade and there was a note

lucy macdonald, cio of global equities at allianz is still with us.here does this fit into your portfolio? exposure toany mining companies? are you interested in the sector? for the reasons we've just been talking about, a lot of cyclical,n, highly and the difficulty of forecasting supply, experts can't do it. it is not a favorite area. somewhererefer to be where the companies have more control. anna: you set me up with a nice segue. the metals space is somewhere that the macro themes we talk about on the program really can be seen to have an impact. you find other sectors more attractive, i suppose. they are insulated, like the tech sector. techere are areas within which are more cyclical, but certainly at the moment there are some good structural forces which should prevail. whatever happens with trump, currencies, and commodity prices , the move to the cloud, that is what we think very clearly. anna: microsoft saying the cloud margins will keep improving. is it the cloud margins you look to? >> the top line is growing 89%. margins are starting to r

lucy mcdonald is chief investment officer at global equities at allianz global investors.as far as gdp numbers, this is the rise before the fall? the underlying number is free, even four. four is very strong but there is an impact from trade and building and that looks like it could reverse in the next quarter. even so, three is strong. you have got the impact of tax reform. that is helping the consumption. final demand is still robust in the us so there is something to be pleased about, but the headline number is not as strong. is it because people are making purchases, sorting out business before the tariffs come in and before there is a real change to tax, for example? bringing it forward rather than waiting till next year? it looks like the infa ntry next year? it looks like the infantry build could be associated with that but we do not know yet. looking at the european markets, they are in positive territory. there is a story in the news about brexit talks and yet again not getting any further forward. why are we not seeing the markets respond in a negative way? it ha

he is the chief economicer adv at allianz.elcome, nice to see you as always, muhammu,. >> thank sue. >> it's hard to know where to start because there was so much news today between the earnings and also the late developments on trade, so let me start there. you have penned several pieces about the different scenarios forrade and one of which you call a positive risk scenario andomething thatoes beyond a still free fairer trade system w and didstart to see the seeds of that this afternoon? >> we did. it's still early day, but we did because we heard about zero tariffs. we heard about reforming t wto ich anchors the rules-based system andre tas a positive risk scenario out there which is that at the end of all of t tit for tat on the tariff side you end up with a trade system that is structurally stronger. it is not the baseline. i think the baseline is still the free trade that we ow, but a little bit with a few tweaks and it's important to recognize that there is a left tail a bad risk of ite with trade war and the markets ar

long time, but bloomberg broke the news that you are now working with amazon, facebook, microsoft, allianzoking.com, lyft. how does a startup that is growing, but still a startup like stripe serve such huge companies? >> i think our success with these larger companies and the companies you named is not despite the fact that we started with startups, but because we are working with startups. when you start out as a startup and especially when you are serving startups, you can't bamboozle them with fancy sale materials and this big marketing campaign or whatever, they are just not going to be deceived by it. they will assess you precisely on the product merits, what helps them innovate fastest and fulfill their ambitions and goals and all the rest as rapidly as possible. it is punishing we are forced to build a product that helped them execute as quickly as possible. emily: stripe makes money by charging a small fee on every transaction. you are now processing billions of dollars a year for hundreds of thousands of companies. taking payments worldwide. you are reportedly valued at $9.2 billi

. >>> when we come back, mouhamma el-erian of allianz. stay tuned you're watching "squawk box. ♪ each day, brings new possibilities. that's why you need a partner dedicated to helping your company reach its goals. u.s. bank -- the power of possible. who would have guessed? an energy company helping cars emit less. making cars lighter, it's a good place to start, advanced oils for those hard-working parts. fuels that go further so drivers pump less. improving efficiency is what we do best. energy lives here. >>> the number that has wall street buzzing we count you down to today's big gdp number, the markets with el-erian of allianz. >>> will amazon hit the trillion dollar mark? we'll talk about the quarter and get an outlook >>> and a shakeup in the real estate industry. how one company is looking to disrupt the home buying experience starting with your front lawn as the second hour of "squawk box" begins right now. >>> live from the beating heart of business, new york, this is "squawk box. >> good morning. welcome back to "squawk box" rig

the chief advisor at allianz says rising costs will be a common concern for corporate america. >> i thinkhear people talk about higher input prices. what you're not going to hear yet is people say that final demand has been hit, and that's key. >> and if trade tensions keep escalating, demand could slow as prices rise, and that's what wall street is really concerned about. in new york, i'm alison kosik. >>> good sunday evening in america. of course it is now early in the morning in helsinki. we want to welcome our viewers in the united states and around the world. i'm ana cabrera in new york. this is cnn's special coverage of the upcoming summit between president trump and russian president vladimir putin. my colleague, wolf blitzer, is live in helsinki, finland for us. president trump arrived there just a short time ago. wolf, take it away. >> ana, thank you very much. i'm here and behind me you can see finland's presidential palace. that is the site of the big meeting with the president and russia. they will come face to face just days after a grand jury back in washington indicted 12 h

allianz beating estimates as its petrochemicals business and the weekend rupiah boosted earnings. to $1.3 billion, sales jumping 36%. separately, the upstart telecom business jio reported a third straight quarter of profits. its gas production, a project of the coast of western australia, the government expecting to begin shipments toward the end of december. they say it is the world's most expensive energy project. -- fell the most in more than two years on friday, but lower electricity rates led to power sales dropping by $231 million. quarterly operating profit fell 19% from a year earlier. they cut rates for customers last august and again this month as it restarted its nuclear plants. the utility says it is continuing to lose low-voltage customers. @tictoc, theunched first global news network design for social media, offering live coverage provided by bloomberg. job on twitter and follow us. ♪ ♪ >> it is time for battle of the charts. they're going to do their best and bring their best charts. they vie for this prize. you can see these charts by going to the gtv number on the

this by that coming through was not a huge surprise to the market. 1.3% higher is where we trade on allianze worst-performing stock on the stoxx 600 at the moment and has hit its lowest since april of 2017. guy: a bit of a move in the ankish lira, so keep eye on that. let's talk about what has been going on in china overnight. let me get my charts ready. the governor of the pboc says china is to keep the yuan stable at an equilibrium level. -- somewe saw china's of china's major banks were said to have sold the greenback to break a key psychological level 6.7. let's talk about what this means from a technical point of view. the pboc is firing a warning shot that make it more dramatic as things progress. this is a key area that we are now watching. david sneddon, head of technical analysis at credit suisse securities is still with us. this is a big point. walk us through what we see on this chart. david: what we have clearly had in terms of -- and that is not been just in the currency -- it has not been only in the currency, we see the chinese equity market coming under severe pressure. the

and in sports history is made at the open championship in scotland allianz wins a golf major right. now the syrian regime and its ally russia have stepped up their offensive against eisel controlled areas in the southwestern part of the country people in northern israel have reported hearing sirens go live now stephanie decker she is in these radio occupied golan heights sirens puffs of smoke what's going on now there there is sirens earlier all in the israeli army telling us that this was because they feared incoming but basically they said that rockets landed inside syria what we've been watching throughout the day you're seeing it now sam is the intensive campaign by the syrian government of course backed by the russians to take what is this last pulkit of opposition control that the group in charge here is affiliated with i still there is no negotiation no deal on the table for them we've seen a lot of airstrikes tank shelling from this part in front of us and also from the other side so it looks like they're advancing on two fronts also just where we are we've been here in an h

allianz global investors among them. chinese -- korean suppliers of chinese products.y are sending nearly a quarter of exports. they could see a hit to gdp from tariffs. korean chemical and steel players will be among the hardest hit sectors. terminal,see on the the korea index, since the end of february, materials said index comprised of steel and chemicals is down over 16% to be the worst performer but the tech sector is down less than 1%, showing some resilience. some a connectors may see a small impact than taiwanese peers. ramy: a lot of analysts have said they keep technology in their portfolios. thank you very much, sophie. now to one of the biggest after the bell stories in the u.s. likely to impact trading. the u.s. justice department onealing a judge's decision the at&t time warner takeover. this reopens the government battle to halt the $85 billion megamerger. vulnerable merger is as the review this with the lower court. the lowerto see if court made any mistakes in giving the green light to at&t. extended down 1.25% in hours. friday's trade will be an indic

the chief economic advisor's of allianz thinks the u.s.hape then china and will not blink first if the trade war escalates. happening inat is europe, or where are the other discussions going on about the possibilities of tariffs in the auto trade, and two, this could well be what i call the reagan moment, where simply china cannot keep up with the u.s., and you have serious discussions on intellectual property, technology transfers, and nontariff barriers. taylor: and hudson bay confirms it is holding talks with austrian real estate company cigna holdings. sigma holding. shares are up by 30% since may 1. and tiger woods and phil mickelson could tee off in a winner take all $10 million exhibition match. that is according to golf.com, which says the match could have happened on tuesday, but negotiations cannot be worked out in time. there is a new date planned, but no comment yet from tiger. scarlet: apparently they are open to wearing microphones during the competition as well, so you can get candid comments. taylor: that would be great. sc

yes, very sunny here at the allianz stadium this morning.this morning. it was very busy here yesterday. over 200 journalists from across the world turned up to welcome ronaldo to his new club. there was a sembrant lightning storm with torrential rain and there were fans outside, waiting to get a glimpse of their new star man. they got absolutely soaked. even his mum turned up to hear what he had to say, so it was a warm welcome that has been on the front pages of every italian newspaper this morning, with pictures of ronaldo holding up hisjuventus shirt. he said it was the only club he wanted to come to. yesterday he answered 20 minutes worth of questions in portuguese, italian and even a bit of spanish. but he was asked in english, at the age of 33, what can he still bring to a club like juventus? i will be ready. juve is ready and we will be there. as i said before, the age is not important. i feel good. said before, the age is not important. ifeel good. i said before, the age is not important. i feel good. i feel motivated, exciting. so i

investor from allianz. good to have you both here richard, you're concerned about inflation.happen to be sitting here, we got gm, we got fcau, we've got coke all talking about the increased costs they face because of tariffs. >> absolutely. absolutely well, first of all, melissa, remember the economy's strong. that puts -- that taxes it that's normal stuff. the thing most investors are missing right now is that public policy is also very pro-inflation. i'm not saying it's right or wrong, it's just the policy is pro-inflation. tariffs by definition always raise prices so we've got a situation where we had normal inflation. i think that's the biggest issue out there right now. you think about what do most investors especially individual investors look for, they want income it's the worst thing to happen when you're an income investor >> where do you stand on this? >> i think inflation is certainly a worry right now. but we haven't yet seen it come through in a lot of the numbers. we have a core pc at 2% in line with the target. but things as average earnings are yet to show sig