for "nightly business report" i'm eunice yoon in beijing. >> some economists are concerned about the impact on the economy and the potential for this trade fight to leave economic scars. v liesman looks further into this. >> reporter: as the old saying goes a few billion here and there and pretty sn it starts be real money. president trump escaling trade disputes to a place where all the tariff threats can have meurable impacts on u.s. and global growth. if you were to have 400 billion of tariffs executed and not just discussed you are probably talking about off of global gdp. >> after that potential negative effects and added uncertainty which are weighing on stock now. does it resolve itself by way of a negotiated tcome that allows both parties to walk away claiming some level of victory or is this something to continue to have to deal with on a day over day basis that allows equity investors from getting enthused about the underlying strong fundamentals. >> with potential for new tariffs and retaliatory up to $400 billion the impact will depend on the u.s. economy. >> if the uerly

forbu "nightly siness report," i'm eunice yoon in beijing. >> some of the upgrades and atwngrades. we begin with , their rate was cut to sell with nathanson, a day after that deal that required time warner to be approved. the at&t dead load postmerger. $28. the stock dropped 6% to $32.22. square shares dograded to neutral with buckingham research and cited t stock valuation after an 80% gain since the bef nninge year. price target, $65. that fell 1% to 62.5. >> hershey shares downgrade to underperform from neutral at credit sleek. the shift with online purchasing reduced the number of impulse ys of hershey products. price target $80. shares of hershey fell to 91.22. netflix pri target raised to $490 by goldman sachs making it the highest t pricedget on the street. the analyst said netflix content offerings rult in better than suspected subscriber growth. maintains the rating and gained 4% to $379.93. >>> why the tight labor market may cput a cap on your health care cost. >>> germany fined volmowagen than a billion dollars over that diesel emission rigging scandal. it is one of the

eight days ahead of president trump's planned ground breaking summit in north korea let's get to eunice yoon who has inn china. eunice >> reporter: thanks so much, brian. the talks ended a stalemate with beijing warning if the u.s. imposes tariffs, china won't buy more american stuff. the commerce secretary was here over the weekend with the 50 person plus delegation they're here to follow up on the trade talks in washington and according to t u.s./china business council, the talks centered on technical issues that would help to increase purchases by the chinese of u.s. agriculture as well as energy goods. however, some of the other issues that are important to the business community, such as china's trading practices as well as other factors such as the zte case, those are taking lower priority the secretary also is expected to meet with president trump on monday so for that reason the u.s. did not issue a statement, however, the chinese did sayg that the two made concrete progress on agricultural and energy issues, but beijing added that if the u.s. introduces trade sanctions including tar

eunice yoon joins us live from beijing with that story. nice >> reporter: hi, jon even before joint statement was released the foreign minister weighed in, saying that china wanted to see denuclearization, dialogue, as well as a stable peace mechanism out of the summit. beijing got all three. and also the summit reads like a that the timeframe forsuggests denuclearization is going to be much longet ththp administration had originally thought. that falls more in line with what the chinese had wanted, a more phased approach from beijing's perspective, they see that as much more stable for the region and also it allows beijing to continue to play a dominant role with engagement in north korea. now there are also interesting comments that came out of the foreign ministry today that suggested international sanctions could be lifted on north korea. the ministry said adjustment to the u.n. sanctions has to be made in accordance with the situation on how north korea has implemented the agreement, including suspending or removing relevant sanctions

let's get right now to eunice yoon live in beijing with more on this round. ce >> reporter: thanks so much, brian. well, tariffs are no longer enough president trump is piling on the pressure to get beijing to change what washington believes are unfair trade practices, especially when it comes to beijing's tech ambitions the wall street journal was reporting this morning that the trump administration plans to announce two new measures by the end of the week, one is barring certain chinese companies from investing in u.s. tech firms and a second one is block beinging additional tech firms. these could be state owned or private owned companies. the trump administration apparently doesn't distinguish between the two because it believes that private companies in china come under great scrutiny and influence of the chinese government secondly, the u.s. companies that are offer limits to chinese investments would be firms with industrially significant technology separately, to make sure that the chinese don't get these technologies through trade, the u.s. would impo

. >> making big news is google investing $550 million in jd.com eunice yoon has more on what that meansor google's presence in china hi, eunice. >> reporter: hi, carl. the facility here in beijing, the company is using automation as well as technology to sort through 600,000 packages every single day is isn't aescially busy time for jd because it's a major shopping festival. jd generated 17.6 billion in sales during this period in an hour's time or so, we'll find out if jd broke its recor again for google especially it's been largely out of this market so google could gain access to china and come s at a time when google is trying to build up its shopping serviceho to rival amazon for jd, this will be potentially interesting. this is coming at a time when trade tensions are high. the founder of jd told me because of those trade tensions he hasn't been interested in going alone into the u.s. market this is what he told me earlier. >> i think it will impact our confidence we are bound to invest a lot and on companies in u.s. but today we want to wait for a while. last year we planned to g

let's get the reaction with china from eunice yoon >> thank you very much china does not see this as softer approach. the chinese xhecommerce ministr today criticized president trump saying we do not support tightening foreign investmen investment requirements on the grounds of national security in the first five months of the year, chinese direct net investment was negative by 7$7.8 billion after the u.s. used to be one of the biggest recipients of chinese investment. in washington, president trump's decision to go with cfius is being seen as an olive branch to the chinese. but that's not necessarily the way it's being viewed here because cfius is seen as an entity here as one with teeth. beijing has not been a fan because cfius has in the past blocked many major acquisitions by chinese companies beijing long complained that cfius is opaque and that it unfairly targets chinese investments. now the chinese see themselves in a situation with cfius that will be empowered, so that just means the obstacle for them will be that much bigger. >> is there anything in the papers or local medi

eunice yoon has more on this story. >> thank you very much the negative list is basically a list thatists out all of the areas that are off limits to foreign investors. this list which goes into effect next month has narrowed the sectors from 63 to 48. that includes lifting restrictions on serving and mapping, ship building, power grids and some crops it has changes in finances and autos. in finance, china will raise the limit for certain firms from 49% to 51% for wrought tautos, companies cy own their businesses as early as july there are some sectors that are restricted, such as cloud computing, rare earth mining, oil and gas and legal services there are plenty of people here who are not entirely convinced, including the u.s. ambassador to china that this is opening up things the ambassador was speaking at a financial forum in beijing, he said there's a lot of skepticism because china made so many promises in the past the u.s./china business council said the true pace of reform will be determined by the licensing, approvals as well as regulations which have mired and bogged down mar

eunice yoon reports from beijing. >> reporter: like many companies they are hoping they will build more bridges as they rely on international trade more and more. facilities like this one, j.d..com is delivering more imported goods including from the united states to chinese consumers and that's very important for a day like today today is june 18th this is the end of an important shopping festival for j.d..com an 18-day period full ever discounts. it's special to jd because it marks the founding of a company. it helped generate $17.6 billion worth of sales last year i spoke with jd's founder earlier and he said he believed the sales this year are going to break records. he isn't as concerned, he said, about the u.s. tariffs and the impact on jd itself though he is concerned about the potential for a protracted trade war this is what he had to say >> it will hurt the brand because obviously china's consumer, i'm sure in the larger cities almost half are there it will hurt a lot of american brands. >> reporter: now the reason that jd's founder isn't concerned about the impact of u.s. tar

you very much from seoul where the stakes are high. >> let's get over to china, too, where cnbc's eunice yoon is live in beijing for us. how much of chinese influence is riding on this summit? what's it like for them, eunice, to be sort of not on the center stage where they've been the primary influence on north korea in the past? >> reporter: well, they aren't on the center stage, as you said, but at the same time beijing's presence is very much there at the summit. i think the biggest symbol of this is really the image of kim jong-un arriving in singapore on an air china mean on loan from beijing. china has been the economic life linediplomatic ally in many, many decades in the run up to the summit president xi jinping met with the leader four times in a 20-day period. first of all, they have said repeatedly on an official level that they want to see denuclearization, they want to see dialogue in the past couple of hours they're saying they're hoping for a positive result. china and the u.s. have had so many issues on the table, like trade, like taiwan and the south china sea, so pulling no

eunice yoon has what to expect from beijing >> first on the trade and the tariff decision, china blastedhe trump administration's decision on the tariffs. the foreign ministry said today a responsible country should carry out responsible policies and take responsible actions many countries are worried about the practice of unilateralism and protectionism. papers are calling for the eu to stand up together with china against the united states. the global times ran an editorial which says time for the eu to rise up against the u.s. tariff. china and the eu should take a firm stance when confronting the united states. china has been trying to present itself as the adult in the room when it comes to the united states and the defender of opener, freer trade. just this week china announced they would cut imports, on more imports. in addition to that it said it would provide foreign investors with the long-awaited negatives list which is the area where foreign investors would not be able to invest by june 30th. this is coming as secretary ross is expected to come to town. the advance team is al

so this is probably going to rain on his parade >> eunice yoon, thank you. >>> let's stick with newsut of china. chinese regulators are reportedly close to approving qualcomm's proposed $44 billion deal for nxp semiconductors. reuters says the deal has not received the final green light despite other media reports. shares of qualcomm and nxp are higher on that news. >>> at&t completing its $85 billion deal for time warner this came shortly after the justice department said it would not seek an injunction to stop the massive deal that deal gives at&t a wide ranging media and entertainment portfolio including hbo and cnn and rights to major sports leagues and film franchises. we'll hear more about this mega deal coming up later when randall stephenson will sit down with "squawk box" today, 8:30 a.m. eastern time. do not miss that >>> let's turn back now to the markets. futures pointing to a lower open the nasdaq sticking around an all-time high. big technology stocks continue to climb let's dig in more with eric ross from casend securities i believe it was the last time or one of the l

publishes its list of goods. $50 billion worth that could face tariffs >> eunice yoon, thank you veryuch >>> still to come, the north korea factor what is next after the president's historic summit overseas >>> and trendi today, do you have trouble sleeping? there's an app for that, and a crucial update of the minneapolis raccoon that has captured america's attention we're back after this. ♪ ♪ my ambition is to show my kids the world. ♪ ♪ the one in three dimensions. so they can look up and see the placey live. ♪ ♪ and prove that the real world beats a post. ♪ ♪ ambitions live everywhere. synchrony helps make them happen with customized rewards and financing available at over 350,000 locations. synchrony. what are you wor forward to? jimmy's gotten used to his whole yup, he's gone noseblind. ors. he thinks it smells fine, but his mom smells this... luckily for all your hard-to-wash fabrics... ...there's febreze fabric refresher. febreze doesn't just mask, it eliminates odors you've... ...gone noseblind to. and try febreze unstopables for fabric. with up to twice the fresh scent power,

>> eunice yoon, we'll see you again all day on cnbc. thank you very much. >>> joining us on set is jim o'neill from chatham house, the man who coined the term brick nations. perfect day to have you on >> good day. >> it is a good day in some ways, not for stock investors, the dow futures are down nearly 400 points are you surprised president trump has upped the ante in the way he has >> the only surprise with this guy is that, you know, the next surprise really. i don't really understand where he and his advisers are coming from it's sort of seeming like a policy that may have had some relevance 25, 30 years ago but he's doing it at a time where the chinese have dropped from 10% of gdp a decade ago to barely 1%. china shifted its economic policy priorities post the '08 crash. so he's playing to the gallery of course in that sense you can see what he's doing more and more here with his core voters >> eunice hit on it at the end this is key. he's gone to a number, 200 billion, just talk, but he's gone to a number the chinese can't match.

eunice yoon joining us live from beijing with more on this story. ce >> reporter: thanks so much, brian. well, it looks as though zt senk close to a rescue. according to some of the preliminary terms, zte would agree to a rescue deal up to $1.7 billion in financial penalties, a management change in 30 days, unrestricted u.s. representative visits to verify u.s. components are being used, a new compliance contractor, post calculations of.s. parts on their websites as well. and as you guys know, the company had effectively been shut down after the u.s. commerce department had imposed this ban because they found that the company had violated sanctions, illegally selling some goods to an as well as north korea, and also then later breaching the terms of the settlement now, zte isn't commenting so far, but the medeen reporting that zte has already started taking steps in this direction to meet some of those requirements and also to meet some of the requirements of its previous settlement. so, in the media, just in the past week, zte has been reported as f

guys >> thank you very much eunice yoon in beijing. not lost on people that kim jong-un made a surprise visit to beijing meeting with xi. there's additional leverage there. >> yeah and i think they're a dictatorship that's why they have staying power. they do not have to respond to anything they don't have a lot -- they have to -- >> no but keeping social order and keeping people more or less content and employed is a key. >> right. >> you're saying that the -- >> the chinese. >> yeah. the weakness is revolution which is what they worry about every day. >> right you don't want to have massive unemployment or a huge economic shock. it becomes more difficult to manage. >> yeah. >> by the way, in 3 k shanghai 3 k is seen as a line where they start to dip their toe. >> yeah. >> we saw how immature that market is. we saw how material and manipulative the government is to try to get those back they wanted that line in the sand for 3,000 they propped up for a long time. but, you know, they play with the house's money. we do forget they are a

and eunice yoon staying up late for us on china's reaction so eamon, were you part of the scrum? >> i was just a little bit late getting to the whoutite house, they locked down the entire complex while the president was out here a bunch of us who arrived after 8:30 a.m. were stuck out on pennsylvania avenue unable to get in so we weren't able to hear the president's unusual to be out here at all on the north lawn, i can't remember a president ever doing that at all. so dramatic stuff. and also at the federal courthouse this morning, a federal judge sent paul manafort to prison today. of course the former trump damage pain cha campaign chairman, the judge saying she couldn't overlook allegations that he tried to tamper with witnesses. that means that manafort will be in prison between now and his two trials coming up on separate sets of issues later this year in july and september. that is some significant jail time for a former presidential campaign chairman. the president at that news conference out here this morning tried to distance himself from paul manafort. here's what he s

kayla tausche is monitoring the response, eunice yoon is in beijing and brian sullivan is monitoring the reaction to all of this. >> to think two months ago these two were trading insults, and here is a quick compilation of what happened. >> a tremendous success. >> getting a good picture, everybody, so weook nice and >> better than anybody could have expected. top of the line. >> we had a historic meeting and decided to leave the past behind >> both sides will be impressed with the result. i k the whole relationship with north korea and the korean peninsula is going to be a much different situation. we have developed a special bond >> these are working negotiations talented man i also learned he loves his country very much. >> one key observation, the singaporeans worked hard to establish the two leaders at i have to tell you, the body language, trump seemed very much in charge. he put his arm on the back of kim jong-un, moved him to certain places, began when they walked out in front of the cameras began speaking first i don't know if it is his age, his comfort in front of the came

from in president trump's words, quote, my touch, my feel eunice yoon is in beijing. akiko fujita is in seoul and michelle caruso-cabrera. >> reporter: good morning. mike pompeo reiterated that the united states is committed to full denuclearization of north korea. there's been questions about just what the u.s. is willing to give and take when it comes to negotiations this caps off what has been a very busy 24 hours amidst heavy security, highly choreographed security kim jong-un arrived for what is one of the most highly anticipated summits in decades air force one touched down last night just after 8:00 p.m. at an air force base right nearby. this lo throng of reporters there to capture his arrival. kim jong-un's arrival still shaded in a bit of curiosity equally curious he arrived in an air china boeing 747 400 with the famous hump on the back which is used for first class. he did not arrive in his personal plane a soviet era aircraft from the 1960s that has been become so well known it can't fly very far. it seemed to limit the locations. this loaner aircraft, ch

against alibaba and google facing off against amazon just how all of this plays itself out guys >> eunice yoon >>> netflix and twitter continue to trade near record levels. facebook all-time high today goldman with a bullish note on netflix with the target highest on the street. to discuss those trends, we're joined by heath terry at post 9, goldman sachs internet analyst is money funneling in to some of these faang names because they're less concerned about banks or industrials >> you look at the way these companies are growing relative to everything else and it's hard not to put money into them especially talking about larger cap names like facebook, alphabet we're not talking about demanding valuations this is not what we've seen with frothy internet before where valuations kind of got out of hand i don't think anybody would argue that that's the case with the largest cap names. in the mid cap names we're starting to see valuations that are causing some investors to wonder whether we've hit a moment, but i don't think that's the case >> you're referring to the squeeze we've seen in social m

eunice yoon is in beijing. kayla tausche is iwashington akiko can tell us what the south korean reaction is to all of this >> good morning to you we have gotten a statement from moon jae-in's ruling party calling the summit a declaration to the world, the era of peace has arrived. president moon jae-in and his party putting a positive spin on what happened and transpired over in singapore. but i want to get back to a critical point that trump raised, which is the issue of stopping those war games, those joint u.s./south korean military exercises that happen on the ground annually. here in south korea that's likely to be seen as a huge concession on the part of the u.s. a bit of background here these are exercises that happen annually something the u.s. says are defensive in nature. north korea sees these as provocations earlier this year north korea canceled that second sumt with south korea after those exercises began, and also threatened to pull out of what eventually came out of the singapore summit as a res

eunice yoon, good morning. >> reporter: i agree with you guys it's exhausting having to cover this every single day. with beijing they were warning the u.s. saying if the u.s. were to impose tariffs, then china just wouldn't bias much american stuff. secretary ross here over the weekend following up on the recent trade talks in washington the conversations here were centered largely on chinese purchases of agriculture as well as energy products the other issues that the business community has wanted to see on the table such as industrial policies or that the chinese had want the to discuss, zte. however, they were not a priority the u.s. also didn't issue a statement. that was largely because secretary ross is going to be meeting with president trump on monday the chinese though did saying there was plenty of concrete progress made on the areas of agriculture and energy however, they also did add this. if the u.s. introduces trade sanctions, including tariffs, the negotiations will noetd t go into effect. president trump said he will have a 25% tariffs on 50 of phoenix, there's a negotia

. >>> in global news, shares of zte are deep in the red after resuming trading in hong koongkg eunice yoonas more >> zte shares dropped 40% today in hong kong wiping $3 billion off the company's market cap investors were punishing the stock because they're worried about the hefty financial penalties that the company will have to pay as part of a deal to get the u.s. commerce department to lift a ban blocking the company from buying american components zte has been penalized for violating american law, but the trump administration worked out a deal so the company could stay in business. i spoke to an analyst who said the fines for zte are huge the current anus fines add up to 2$2.3 billion, the equivalent of three years of profits. so investors are worried n about how and if the company can survive. the senior management needs to be overhauled within 30 days, and the deal might fall apart altogether because congress is ngement.to block the commerce secretary wilbur ross is trying to sell the deal to some skeptical lawkers, but here the fund managers that i spoke to say they are not very opt

right >>> chinese officials meantime responding to president trump's $200 billion tariff threat eunice yoonoreign ministry doubled down on its tough stance against president trump today. saying if someone brings on a trade war, we will fight it to the end. now, the white house appears confident in fighting a trade war with china because president trump and his team seem to believe that they have the upper hand because china exports more to the united states than the u.s. exports to china. and though that may be true that china is much more dependent on exports than the united states is, that dependence is declining. total exports overall as a percentage of gdp have come down from nearly 40% a decade ago to less than 20% in 2016. and that's why some economists believe that the tariffs will be painful for certain sectors in china. overall, the impact on the economy will be small. and research firm capital economics recently calculated even if president trump's tariffs were placed on $150 billion of exports, that it would only decrease chinese total output by half a percentage point so capital