kayla? >> reporter: well, we have been walking around, joe, but we started our morning dark and early here today so people are just now trickling in a lot of people come here from wash, up late last night watching the game. >> oh, good. >> reporter: so admittedly, groggy fans who are going to be turning up a little later this morning. >> okay. all right, kayla thank you. >>> in other global market news, the imf agreeing to a $50 billion deal to help argentina's economy. the terms of the deal include cutting the government's deficit by 2020 and bringing down inflation to 17% by the year 2019 and then 9% by the year 2021 the peso under extreme pressure, as we saw earlier. >>> get to our guest host this morning. tom fang southern company president and ceo and he's also on the board of the atlanta fed my favorite fed organization, because they're always hyping numbers -- anyway, i mention them very volatile. the numbers the atlanta fed comes up with. >> remember what that number is, right? it ta

kayla, k—a—y—l—a. and meet kayla mckeon, the washington lobbyist breaking

kayla tausche in washington. thanks for bringing us up to date on that joining us now to talk about the market implications is the global market strategist at jpmorgan nadini, tell us, we were talking about the summit in singapore between the president and the north korean leader. we were talking about the after shocks of the g7 meeting and of course emerging markets are kind of wobbling right now as we talk about the fed tightening talk about exactly how markets are positioned to absorb all of this >> yes, it's a very big week we have a lot of market-moving events the key thing is remembering what we do know and what we're able to charge out that's things like the fed rate hiking path. we know they're raising rates at a decent clip with expected three to four interest rate hikes. that is going to have some detriment to emerging markets. emerging markets have been a lot more strong or strengthened over the pa several years so there are some that can handle this a bit better some don't have high current debt defic

but we're keeping a close eye on the g-7 summit kayla tausche is in quebec city.ngton how is the schedule shaping up this morning >> there has been, carl, a postponement of the bilateral meeting between president trump and french president emanuel macron president trump was slightly late leaving washington and slightly late arriving here in quebec city, so that has been moved, but the expectation is that it will still take place. of course, tariffs and trade were expected to be at the top of the agenda in the meeting in the meantime, one of the most influential business groups from back in the united states, the business roundtable, has issued a statement calling on the u.s. to drop the tariffs on steel and aluminum on allies and instead engage with allies against china, that they could put up a better and united front if they were to not kwaubal with allies and instead present a more united front against china so certainly, some interesting comments from the business community back in the u.s. even as the president tries to defend the hard line on those tariffs t

great discussion thank you all for being here kayla, jar, jimmy. coming up on the "closing bell," council of economic advisors chairman kevin hassett at 3:00 p.m. don't miss that interview. i'm sure trade will be thedomment theme as well and what that's going to do to our ecomhurchry. >> in new york city bob pisani is at a conference. lking about where all the es business is going. you were listening to larry kudlow react to that. he was saying president trump's policies are a key driver of economic growth. we are seeing 25% increase of earnings in the first quarter. how much do you think is attributable to the lower taxes the regulatory rollback that larry was just talking about >> you take a 37, 35 to 37% corporatdrop t 21, you give 14 points to ev y making money in america. they are all going to roll they are all going toearn more money. they are going to invest in plant and equipment. it's really -- that tax cut, people do not understand how strong that is for corporate america. and that creates jobs. creates growth you double that down with th

kayla, thanks so much. we'll come back to you as necessary throughout the day >> it is a big week coming up. we have said it, we'll show you a calendar of what's at stake. not only the north korean leader, today, the g-7, the ecb, economic data, fed size it up, jimmy. >> the big prize here is china and getting some sort of settlement these are all important things but when you want to figure out what's going to release the market to new highs, some settlement with china, yes, i'm calling it a settlement. i don't think that trump would have saved zte if he really wanted to get into a trade war so all of this is negotiations for a settlement that's what will unlock the market >> you have a thought, doc >> no, i agree with jim 100% don't need to echo it. >> we'll step away for a moment. here's what's coming up on "the halftime report. >> straight ahead, the call of the day comes from the tech sector it's up more than 50% in a year. but the analyst says there's still a lot of upside. >> before the break, the bi

kayla mckewan there on capitol hill.aur, and you've a spare $2 million, you're too late i'm afraid. it's the price this dinosaur skeleton fetched at auction in paris just a few hours ago. it dates from 150 million years ago and it was found in wyoming in the united states. it could be a new species of therapod, related to tyrannosaurus rex. but there has also been criticism of the auction. many palaeontologists feel sales to private buyers mean valuable fossils are being lost to science. while there are many fossil specimens that are coming out of private lands like this, and this specimen, as far as we can tell, was legally collected, it was exported from the us to france for the sale. our problem lies here in the fact that these specimen was auctioned in a very public manner, and in a way that was geared particularly to engage a lot of people in the sale and ultimately to raise up the price of the specimen itself. some people have looked at the specimen and there have been some suggestions that it contains some new fea

let's get to kayla tausche for that. >> peter navarro just wrapped up a call with reporters where he called the president's response and furthering of the administration's tariffs visionary and courageous he affirmed the white house's view that china has more to lose than the u.s. in a trade war the council of economic advisers will work together to choose a product list within that $200 billion or $400 billion response that will be the most effective in fighting back against china i asked how they plan to limit the impact on consumers because the previous list of tariffs had sought to eliminate televisions or pharmaceutical products to limit the impact on consumers. he said the fact that this tariffs set would be 10% versus 25% tariffs is a move to try to limit the consumer impact there. perhaps most interesting, though, was his commentary on where talks go with china from here he said there's nothing planned, that the u.s. has two priorities in talks with china. number one, to cut the trade deficit and, number two, to protect the intellectual property that he continually called the

kayla tausche.>> moving to the broader markets, this week the fed announced a rate hike of a quarter percentage point on wednesday with two more likely later. in europe the ecb declared it would end its buyback scheme to walk us through the events, we have brett ryan from deutsche bank and jack cafferty from jpmorgan private bank. what is the joke >> caffry. >> as i was saying it, i know jack it's not that i don't know jack. >> it's in the ballpark. >> maybe i don't know jack, by the way. >> it's in the ballpark. >> you're not the first person to call me jack cafferty >> okay. so, help us with where you think the market is right now relative to what the fed has now done relative to the idea that we're still growing. europe seems to potentially be slowing at this point, now we will throw tariffs on top of this >> okay. so let's start with the fed. the fed gave us more hawkish outcome this week, dialing back the forward guidance as expected, raising the 2018 dot that was a toss-up between this meeting

kayla tausche in d.c >>> fifth largest trucking company u.s.press going public at a time when the trade policies are in flux, could have a huge impact on this industry eric fuller, ceo of us xpress enterprises. >> thanks for having me. >> $16 listed last night you've been public before. >> uh-huh. >> why go public again now >> well, you know, one -- for a long time we've had a pretty large debt load. when we went private in 2007, we did that with a leverage buyout. we've been highly levered ever since. so that's -- a, it's a big opportunity to pay down debt but, b, we think we're well positioned us xpress has gone through a big transformation, driving earnings improvement from a transition of more growth-oriented company to one more professionally managed that folks on metropolitan rick's, data. >> your pulse on trade we heard this latest report from kayla. tariffs on chinese goods as soon as tomorrow. we obviously just came off that g7 meeting over the weekend. more angst with allies on steel and aluminum uncertainty around nafta i think those

kayla, k—a—y—l—a.kayla mckeon, the washington lobbyist breaking new ground in political circles. get in touch with us using the hashtag #beyond1000ays. hello and welcome — i'm katty kay in washington and christian fraser is in london. if you follow donald trump on twitter, you'll know that today the president is marking 500 days in office. no other presidency has been this divisive. so it may surprise you to learn that only one other american president since world war ii has had a greater approval rating within his own party at this stage in office. "we have accomplished a lot," mr trump tweeted today. "massive tax & regulation cuts, military & vets, lower crime & illegal immigration, stronger borders, judgeships, best economy &jobs ever, and much more..." his supporters definitely agree. in 500 days, he has redefined america's relationship with the rest of the world. he's withdrawn the united states from the iran nuclear deal, tpp, the paris climate deal — he has just levied tariffs on america's close

kayla tausche reports from washington. >> reporter: president trump met with trade advisers to finalize the list of chinese product the u.s. could hit with n tariffs as soon as tomorrow. the list is expect 20d itwlude ben 800 to 900 products, a d action of the 1300 products originally targete april. secretary of state mike pompeo is in china to discuss next steps onnoic, but w fh aday deadline looming, trade is on the agenda, too. >> we discussed trade today. or deficit with china is still too high. i stress how important under the circumstances for president trump to rectify that situation. so the trade becomes more balanced, more riprocal and more fair. >> reporter: china's foreign nister says he sauce two outcomes. one is cooperatio the other is confrontation and lose/lose. of course, we are well prepared in case ameca chooses the second option. ime plans to retaliate. gary cohn said that would hurt the economy. >> if you end up with a tariff t , you will end up with price or inflation. >> those are all historic engreed cents for an k34i slowdown. i would not lik to see that happen.

kayla tausche is in quebec city for us tonight. i> blue skies and -- after promptmposed tariffs, citing national security risk. uk prime minister theresa may called for an immediate rollback. europeans pushed by have been in place forver 20 years, as world leaders met, companies pushed for actiontoo. in the u.s. the business roundtable urgedengagement, not friction. in canada. pete assignmentens, the ceo of the oldest lyfaun business, worry leaders are missing the opportunity to move forward. my greatest fears we don't have historic at perspectives, obd we connue to apply ideas past ideas that arlete to modern-day problems. >> reporter: failing to keep the u.s. in the iran d nucleareal and the paris climate accord. beforeg, leavinresident trump added a new curveball for the one-time group of eight, bringing russia back into the fold. e>> russia should be in meeting, it should be a part of it. you know, whether you like it or not, and it mayot be accomplicically corree politically correct, but we have a world to run. the g7, they th

kayla tausche's there. >> reporter: hey, melissa. a sunny day with blue skies in this town just north of quebec city. there's expected to be a family photo of this family that is currently quarreling in the next few minutes' time. they just wrapped up a working lunch. later in the day, there's going to be a working session, followed by some bilateral meetings sprinkled there in between. the schedule is running a little bit late and the president himself was late in arriving and for that reason, a bilateral meeting with french president emmanuel macron had been shelved but the wires are reporting that a french official says that the two did discuss north korea briefly, perhaps on the sidelines of that lunch that just wrapped and we will see what additional details we can get about that conversation that was had. it's been all handshakes and pleasantries so far from the outset but we know that these are going to be contentious discussions behind the scenes. at least one ally, uk prime minister theresa may plans to press the president t

and kayla alluded to this. want to go he doesn't like that other world leaders are on the same level as him. >> when it was like montenegro excuse me. i'm coming through >> he doesn't like these type of gatherings he wanted to prepare for north korea. go straight to singapore and do that in this instance, he talked about skipping it and sending vice president pence larry kudlow said, you have to go you have to. he's doing it as short, as quick as possible because he doesn't think anything will come of it he's not entirely wrong. at the end tharks say, we love each other free trade >> you do great job of bridging the gap between politics, rhetoric, and money. do you think the market is learning, for the last year, we would have been appalled at the tweets the market may have been down 300, 400 oh, my god, trade fight. do you think the market is becoming innured to it >> i think so. markets say, okay. >> speaking of caps, odd capitalization if the tweets random words are capitalized >> in trump's or caps tweets h

kayla tausche has detailed for us from washington. >> reporter: for theirst time since donald trump waslected president, quart reading of confidence among ceos has fallen. the survey showed that expectations for the next six monthsor hiring, capital investment, sales, and u.s. gdp all declined. one major reason, trade. 95% of executives citing white use trade policy as a moderate or serious risk. business round table ceo josh bolton and chair jpmorgan's jeremy diamond told reporters they'd advise the white house against tarif and protectionist policies to no avail. 132 ceos responded to the survey during the middle two weeks of may when the white house was negotiating trade deals on nafta and with china. two fronts where friction has only increased in the weekssi e. nec director larry kudlow says the u.s. may pursue separate deals with canada and mexico to replacehe currenttrilateral deal, and a white house team in beijing reportedly rebuffed an offer from china to buy $70 billion in u.s energy and crops. here's white house press secretary sarah sanders. >> our focus is on making sure w

well, kayla mckewan is breaking that mould.by in washington. we caught up with her on capitol hill. doctors say the liverpool goalkeeper loris karius sustained a concussion during last month's champions league final defeat by real madrid. he was blamed for two of the goals in the 3—1 defeat. medical experts can't say for sure when the injury was sustained, but believe it would have had an immediate effect on his performance. an early landscape by vincent van gogh has sold for more than $8 million at auction in paris. painted in 1882, the picture shows women working on the land, inspired by the countryside around the hague. it's the first van gogh auctioned in france for more than 20 years, and was bought by a buyer in the us. the us special counsel, robert mueller, has accused president trump's former campaign manager, paul manafort, of trying to tamper with potential witnesses in his investigation mr mueller is looking in to allegations of collusion between russia and mr trump's presidential campaign but the alleged witness ta

kayla tausche in washington. >>> when we come back, opec reaching that output deal this morning.live to vienna. hear from the former exxon arabian gulf president market close to session high dow up 182 >>> we're watching tesla today after bernstein's analyst puts out a note saying the gross margins of the company may be overstated phil lebeau joins us with more on this note making the rounds today. >> i'm looking at the note from tony saganagi. gross margins is an important metric because the company said we'll be over 20%. but in a note put out this morning, he says i'm having trouble squaring the numbers with what i've seen. he says tesla services margins are plummeting does this mean auto motive gross margins could be overstated? here's what he's talking about the services margin, take a look in the third quarter of 2016 it was plus 5% in the first quarter of this year, it was negative 45%. part of that is because of an increase in the cost of goods and services within that services division. and again, auto motive gross margins is what so many people, investors in particular

kayla tausche has more on the latest white house position on trade. >> reporter: president trump decided to a expand existing tool to review foreign deals in the u.s. instead of writing n rules just for china. >> we're working with china now and i think hopully that will get straightened out. >> reporter: the move marks a signifant deescalation in a trade fight with beijing. it gives the treasury more power to review inbound investment that's might pose a risk to national secuty. commerce is now studying outbound transactions steven mnuchin says china will not be singled out. >> we're going to treat china the way we're going to tre other people and to the extent that we were worried about transactions, we will block them but we are not goi to on a wholesale basis discriminate against china as part of a negotiation. >> reporter: it's a hard right turn from the white house's recent approach t china announcing tariffs on up to $450 billion in goods jt two weeks ago as trade tensions heated up. the president's economic adviser larry kudlow told reporters today there is communication detween

for "nightly business report," i'm kayla tausche in washington. companies of u.s. with global operations responded to those tariffs. among them boeing said today it is assessing their possible impact on its supply chain. fedex said the tariffs ones ch goods will raise prices for american businesses and consumers. and generalt electric said concerned that these tariffs will make it harder for u.s.nu cturers to compete in the global economy. >>> rising trade h tensionse kept investors on guard in recent months, and today it was no different. after falling as much a 280 points, by the close the dow jones industrial aveas do 84 points to 25,09 the s&p 500 slipped three. for the week the major averages were mixed. bob pisanias more on the down day on wall street. >> simmering trade tensions once again took the stock market for a ride, snapping a three week win streak for the s&p 500. stocks first sold off on presidentar donald trump'sfs announcements, but managed to end well off session ows. the news didn't exactly come as a surprise to investors. the bigger question, h

kayla breaks it down for us. >> reporter: tariffs on steel and aluminum went into effect three weeks ago, but today europe is striking back slapping stair every tear ofs on bourbon, peanut butter, motorcycles and play tg cards. thal is just $3.2 billion in u.s. exports, but it comes fr politically sensitive states like kentucky, wisconsin, and florida. the e.u. commissioner for trade cecilia mounstrom said we did not want to be in this position. however, thend unilateral unjustified decision of the u.s. to impose steel and alum pneumonia tariffs on the e.u. means we are left with no other choice. needless to say, if the u.s. removes the tariffed, our measures will ao be removed. the measures from europe are just one arrow aimed at the u.s. in respoe to its ste and alum pneumonia strategy. china in may stood down onn tariffswine, nuts, and fruit as it struck a truce with the u.s., but that's over now. can't takesnch from effect july 1st, and mexico said it would i retalia early july after its elections. president trump has said in this tit for tat trade dispute, any country that fight

but kayla mcewen is definitely breaking that mould. right to lobby in washington. we caught up with her on capitol hill. here is her story. the amazing story of kayla mcewen. you have been watching newsday. coming up, asia business report, including: with us trade tensions an ongoing issue, how does the head of hong kong's national carrier think this will affect business? and before we go, let's take a look at these pictures, which show the devastation caused by the fuego volcano in guatemala. more than 60 people are known to have been killed, but many more are still missing. ash, hot toxic gases and other volcanic material swept over entire villages, without warning, and so rapidly that it would have been almost impossible to escape. good morning. the best of the sunshine on monday was out to the west, particular south—west wales. for most of us it was a pretty clay, grey, cloudy start to a new working week, wasn't it? in fact, this weather watcher's picture sums quite nicely. the cloud thickener for the odd spot or two of drizzle. we

sides already met we're waiting word on whether a longer expanded sit-down is going to happen. >> kayla, thank you. covering the g-7 summit for us this fits perfectly into our conversation because, steve, you mentioned the markets were going into this not expecting anything could the risk be to the upside because something could actually come out of it, which was completely unexpected when all the headlines were crossing. >> i think the markets had sold off, worried about what was going to take place. now when you see softer lines. with nafta, trump was worried about sunset clause. that's what we heard from prime minister trudeau where he said that the sunset clause was what was the sticking point. very close to having an agreement on nafta market sold off on that. steel stocks moved on that and now everyone plays nicely in the sand box on this weekend, i do think that you'll probably get this lift to your point, lift sort of sideways to higher. so i agree the expectations aren't high. i just look at market positioning. outside of a couple of sectors what does this mean? steel prices le

. >> kayla >> stocks are off the worse level of the session let's check in with bob pisani >> melissa i thought we may have a shot of going positive but when tech and financials both drooped. tech was doing well. we had some of the big names and adobe and facebook and microsoft all going positive but about an hour ago, they started rolling a little bit and banks have been doing nothing for weeks on end they were rallying nicely in the early morning and a lot of green names there and they too rolled over market head winds we got a lot of them. we are near 2800 that's a head wind, another list of tariffs could be going on there. >> they were down again today. a lot of them were closing of the emerging markets >> thailand was at the lowest of the year and vietnam was down and malaysia is down as well all of those are down so far here maybe it is quadruple witching, i don't think so we had that quadruple on friday and the week after down 24 the last 28 years. this is the june one and average decline of 1%. there maybe some seasonal factors as well. >> guys, back to you >> bob pisani, let'

tausche has details on that kayla?we got a tweet from the treasury secretary tweeting on behalf of the president saying some of those reports on investment restrkss are false because they're not specific to china, but to all countries that are trying to steal our technology here is what we know about the trade deadline on saturday trade principals will be meeting to try to refine this proposal, result of a china-focused investigation. we know that they are going to be targeting investments in sensitive u.s. technology. there have been voices within the administration divided on the scope of these restrictions, level of ownership to be reviewed and whether outbound investments by u.s. companies should be included that was one thing left out of legislation that congress has been pursuing down pennsylvania avenue but these restrictions are going to come as the u.s. fight with china and other trading partners have been escalating china says that on july 5th, right before new u.s. tariffs go into effect, they'll free up $10

house announcing a pivot in its approach to restricting chinese investments in the united states our kaylasche is in washington with all the details. hey, kayla. >> hey, carl the administration decided to forgo investment restrictions targeted specifically at c, which the president directed treasury to study in march but instead it will lean on an expansion of treasuries existing authority to review foreign transactions that may pose a national security risk there is bipartisan legislation moving to do just that and a version passed the house yesterday 400-2. the decision removes a tool the president and hardline advisors sought out in dealing with china and the treasure secretary argued on cnbc that unlike investment restrictions which would have taken time to craft and implement this approach creates more clarity. >> this doesn't create more uncertainty. again, we will publish regulations, we will provide clarity. we're clear that the united states is open for business and we'll be c on what type of business we're going to look at carefully and what type we're not. i think everybody unde

tausche joins us now from washington with the latest kayla?n, the hearing was called by republican lawmakers who are angry about the administration's use of national security as a reason to pursue tariffs but even though that was the topic of today's hearings, the questioning spanned from zte, talks with china, this investigation into auto tariffs, and a whole host of other issues i want to run through some of the highlights right now first on the steel and aluminum tariffs that have now been in place in some cases for several months he said the supply issues that many companies are experiencing should go away by the end of the year as new production comes on-line he said price spikes in testeel and aluminum in the commodity space were exaggerated by market speculators, storing, stockpiling and warehousing the metals and congress will be investigating what he called illegal proof tearing in light of the tariffs on trade with china he said the price of soybeans declining is not justified. he said farmers told him that the price has been droppin

kayla tausche joins us now from washington with more on that kayla?good morning, becky the president has asked the trade representative to study up to $400 billion in new tariffs a two-part plan that would hit back against china if it chose to continue retaliating as china said it would when they unveiled a tariff list worth about $50 billion in chinese imports on friday the white house statement says of china's retaliation, quote, china clearly indicates its determination to keep the u.s. at a permanent and unfair disadvantage further action must be taken to encourage china to change its unfair practices now, policy slapping tariffs on $250 billion or $450 billion in chinese exports would touch a large portion of all goods coming to the u.s. from china and would go outside the mandate of the u.s. trade representative which has sought to limit the impact on consumers of these tariffs if the number got that big. now, were china to retaliate in kind as it has so far, some would encapsulate all u.s. exports to china which is why investors fear that china

we'll see. >> thank you, kayla.sche on washington, d.c., on immigration, but you know, she normally covers trade for us which is what we were talking about. how is that affecting your asset allocation, if at all? >> well, it certainly has. it's just given more of a catalyst for small and mid cap because they were getting inflows first because they are the best beneficiaries for the tax cuts it comes directly to their bottom line. and we always like the financials in small and mid cap because they are the ones that are the beneficiaries of deregulation so that is a big space in small and mid cap, and then as the u.s. dollar started to rise, along with better economic data, the fed, small and mid cap became a beneficiary then, add the trade, then that is the trade everyone seems to be in. money goes to where it has always best treated until it isn't. >> sandy, should you chase that trade? >> yeah, i think you will. i mean, basically f y, the peum always swings too far in both directions i think the gap gets even bigge

kayla tausche is following the sheriff story. 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 new

>> kayla, thank you very much. kayla tausche. >>> joining us now is asia society policy institute president kevin rudd, also the former prime minister of australia. our guest host this morning, fred kempe of the atlantic council. mr. prime mister, s talk what this means for the region how significant is this? what do we need to see next? >> everyone is going to moan about the lack of detail in the text of the actual agreement between the two leaders, but i don't buy that i think we should give the president some credit for what's been achieved. it's only his kind of unique style which has enabled us to get to this point in the process. and we need to give a time to see what detail shakes out of the tree from here on in the bottom line is six months ago we're talking about the possibility of conflict and war. now we have an extended period of diplomacy that will be good for regional stability, in terms of perception of country risk and regional risk for investors across east asia, it's good news the final bid is you

kayla tausche in washington. other headlines say freeland also said imposing tariffs, canada is swurking closely with the european union and mexico. we will not escalate and we will not back down. i want to bring in the canadian kevin o'leary. is this the right move >> a very interesting development. to understand why it's occurring you have to go to the specifics of canadian politics, understanding that a while back, president trump asked that dairy subsidies be removed for example, milk powder from wisconsin can't go into ontario or quebec. 78 seats out of the 338 seats determine most elections in canada those are the quebec seats are heavily subsidized in the dara industry. trudeau is doing the right thing. his government is doing the right thing to defend this because this is getting pure politics internally. it's a really interesting problem because if you look at the gdp of each province in canada versus its neighbors in the u.s., the most friendly border on the world, you have up to 49% of ontario's econom

, do we have kayla in washington right now we don't just yet.orth mentioning is the cfius thing makes it either better or worse because it does bring a whole different level of uncertainty. because you don't really know what's going to be allowed or not. >> i think we already know look at all the chinese deals that have will be been stopped under the old definition of what the committee of foreign investment in the united states used to be right? which is a strict national security definition. and we've had numerous people on over the last year who have come on from previous administrations that said we have to widen that definition we have to say does this represent an economic threat of some sort. right? this was coming. you heard kayla say the vote went 400-2 in favor of doing this i want to know who those two were >> the u.s. treasury recommending cfius best to protect from motivated acquisitions the cfius panel as enhanced by pending legislation is strong and agile tool they say can respond to the u.s. technology issues going forwaarther, t

kayla tausche joins us from washington this morning with that story, and what a story it is kayla. >>orter: good morning, andrew the outward appearance was ami ab amiable. afterwards justin trudeau said all seven signed on to a joint communique he called the comments insulting. that led president trump to withdraw from the pledge tweeting en route to and from the ground in singapore that, quote, we cannot let our friends or enemies take advantage of the u.s. and saying justin acts hurt when he's called out a spokesperson for trudeau tells cnbc the prime minister said nothing he hasn't said before both in public and in private conversation which is the president but on sunday nec director larry kudlow and peter navarro both defended the president at the g7 and slammed prime minister trudeau and saying he slammed president trump in the back. mike pompeo briefing reporters on the kim jong-un summit was asked about the u.s. relationship with alliesnd offered a different view you wouldn't have even know. president trump has led a coalition with the same partners, g7 partners who have helpe

s trade problems kayla tausche, cnbc business news, washington. >>> we'll hear more about those policies later today when wilbur ross joins our u.s. colleagues at 1:00 p.m. central european time >>> global cfos say u.s. trade policy is the biggest risk factor for business. that's one of the key findings of the quarterly survey. some say president trump's tax cuts have helped their businesses, but more than half think the trade policy will have a negative or very negative impact on their company in the next six months. >>> and political uncertainty in italy also occupied their minds. the five star and lega parties formed a government in rome after inconclusive elections in november 21% say they are not concerned by contrast, those chief financial officers say brexit has not weighed on their business 70% say britain's decision to leave the eu had not impacted their company. 30% said the impact had been negative or very negative. not one of the cfos said their company has seen a positive impact from brexit got views on trade or on brexit? get in touch on twitte twitter, @streetsignscnbc, yo

guys, back to you. >> yeah, and, kayla, there's been a lot of different information out of the whiteouse today with secretary mnuchin saying it is not just about china, but everybody i don't know that's reassuring the markets, but thinking, wait, this is broader than we realize. >> reporter: certainly, the mandate of treasury is broader than just looking at china and purview of the current legislation pending on capitol hill looking at foreign investment into the u.s. is broader than just china, but what they are doing this week is intended to look specifically at china i mean, there's ands, ifs, or butts about it that's what the white house said back in march. that's what the white house said back in may. while they take an up bre umbre approach, the intentions are to hit china. >> we'll talk with peter navarrro in a couple minutes time, asking him everything about these trade issues about the market's response to that, president's thinking - >> exactly, how close they are watching the big selloff >> and because of this, tech stocks are leading the market lower today. nasdaq on pace

i'm kayla tausche.ob corker the tennessee republican and chair of e the foreign relations committee formally unveiling legislation that would require congress to approve any on a national security basis the legislation would apply to tariffs under this 232 statute going forward. and any tariffs under that statute brought in the last two years. it is brought by partisan support. and corker unveiled it despite the fact the president asked him to drop the effort many gop senators are here at the white house right now meeting with the president on trade issues there are about a dozen of them who have made this familiar trek over and over trying to talk the white house down from this tariff policy although unsuccessfully up until now. but it appears that congress is going to try to take matters into their own hands an aide to one of the sponsors of this bill is the hope is to fold it into what is seen as a must-pass defense funding bill with the acknowledgment that the president wouldn't sign it if it were a

they wanted to elevate an arab leader to be kayla -- to be kayla to replace the ottoman sultan. the idea of a european leader elevating them -- the british believed that because the arabs were unhappy with the turks, they would be happy with anyone, meaning british, who replaced the turks as overlords. even within the governments in london, there were various differences of opinion between the foreign office, the colonial office, and the navy. just as a reminder of where we -- fighting has stalled on the western front and the trench lines extended family out to the sea. the russians started to suffer serious losses all personnel and land. --y needed resources assistance to access shipping lanes. no assistance came. in 1917 there was a revolution sixussia that lasted nearly years, destroying that empire in bringing about the soviet union. the americans entered the war in 1918, but resources did not arrive for months. the most significant decision of the empire in 1917 was the transfer of general edmund allenby from the western front to egypt and command of the expeditionary force

set to impose tariffs on 50 billion of chinese imports, that announcement expected to happen today kaylaausche has more on this >> reporter: it's been in the making for a while, but yesterday the president green lighted the decision to put 25% tariffs on an array of chinese products that list of products, i'm told, is about two-thirds of the products originally included on a tariff list published in april. that's according to three sources familiar with the matter some items were removed after u.s. companies raised concerns during a comment period. another set of products will replace them that will restore the tally of total exportstargeted by the white house to $50 billion. here's the catch only items that were included on the original list could be taxed immediately. talking points were circulated and products were uploaded to a government database on wednesday, that was seen as a precursor to implement take before trade principals met yesterday to finalize the decision the white house has not commented specifically about our reporting. here's what the press secretary, sarah sanders,

cnbc's kayla tausche joins me.sident trump's adviser, peter navarro, and he says china has much more to lose. is he right? >> well, steph, i'm told by sources that it was actually peter navarro who made this proposal to the president in a meeting of principals at the white house on monday. and peter navarro reiterated yesterday to reporters, because the u.s. buys more goods from klein, than china buys of u.s. goods, by definition, there is more that the u.s. can put a tariff on. that is factually true. but at the same time, china has said it's ready, willing and able to do things more than tariffs. and companies over in china are worried about essentially regulatory blackmail. about getting licenses held up. or potentially something that would cause a more drastic impact on the market were china to stop buying u.s. treasuries or were they to devalue their currency. so china still has a lot of tools even if by definition there are fewer goods to put a tariff on. >>> and xi jinping, he's in office forever. do were kn

melissa. >> kayla, thank you. all of those names should be familiar to cnbc i think it's -- >> all these guys. >> probably a good thing >> i think so. these are big picture minds that may fit the posture of this administration but these are folks thinking about the big picture as it relates to foreign trade. >> very free trade oriented. but i'm wondering if that free trade -- is that the policy? i don't know maybe it appears not at the moment ultimately maybe we'll see something different. i assume we will but at the moment it feels like the less free traders -- >> it feels like when kudlow had a heart attack and he was sidelined for a time that navarro and lighthizer gained some say and sway within the administration. >> i sense a conspiracy theorist in you coming out. >> no, that's just my thought. >> it doesn't help that the trade rhetoric has been amped up so you get people in there that are more free traders. >> market friendly. >> i'm just thinking maybe the former soviet union in my head and people doing ne

back to you. >> thank you kayla tausche in washington, d.c. for us. >>> nike set to report next week analysts at buckingham are downgrading them to neutral. we've made it our call of the day. what do you think of this? they raise the price target as we said from $80 to $75. they say it's time to tap the brakes the stock could rise more from here the valuation the company has reflects the fundamentals that are in place >> it just broke out, though i don't understand why you would sell a stock that, like, is just starting to get going after such a long period. >> it's up 15%. >> i know he's looking at something different. >> they could get to 80 but downgrade here so they aren't saying sell it. they're saying hold it you got a little more upside there's nothing wrong when you've had good numbers. and portfolio management is when you had a price target don't keep raising your price target even though they did it here find something else to go into so i get that. so look. but nike, i agree with you >> if you like a stock and you're saying we like

kayla tausche, cnbc business news, washington. >>> a fly in the ointment that could end the recovery that's what jpmorgan's jamie dimon thinks about trump's trade policies head to cnbcor more on what ceos think about current trade tensions and growth prospects in the u.s >>> and i'd also like to draw your attention to, of course, we were talking about weidmann comments and trade comments earlier, suggesting that as soon as next week we could hear an announcement on ecb winding down its asset purchase program, and what we've seen is a reaction in front-end money markets. now they're fully pricing in a rate hike by july 2019 after these comments and june of 2019 is pricing in a 70% chance of a hike versus 50% earlier this week so, markets bringing forward the timing of rate hike expectations ahead ofhat all-important ecb meeting next week. >>> now, howard schultz has ripped into democrats for veering too far to the left. the outgoing starbucks chairman told cnbc democrats are proposing too many expensive policies but refuse to be drawn on whether or not he would launch a 2020 bid himse

>> yeah, kayla, thank you.ou know, again, maybe -- this also stood out to me, guys, just according to the draft statement, had agreed to engage with internet service priders and social media platforms the one thing they agree on now is facebook's a problem. >> facebook and the people who use facebook >> yeah. >> yeah. >> yeah. >> fair enough >> their purview is how it's used for political - >> and the president this morning talked about russia joining. what do you think? >> well, it was a little bizarre, but it's weird. trump thrives on chaos i don't know if there's actually an end game here i mean, i hope there's an end game i don't know that there is, but to throw out the thing about the russians in the same breath with the other issues floating around, it's bizarre >> well, i think he was saying, look, this is actually had relations in a low, and said, i think the quote was, i know it's not politically correct, which is, i don't think being politically correct is the issue here, but why they were thrown out

kayla tausche is in washington with the latest.he white house has escalated this trade fight with china. >> and affirming our reporting that it's a list of about two-thirds of the products on the original list. so slightly truncated, representing about $34 billion in exports from china that the u.s. trade representative says will go into effect july 6th that essentially sets up a new set of trade deadlines in these talks between the u.s. and china. treasury department by june 30th may introduce new investment restrictions july 6th you have these new tariffs going into effect. on july 20th you have a year since the last time zte, china's telecom giant made a false statement to u.s. regulators that's a key date because the language in congress right now would allow the president to offer reprieve to zte one year after that date. then this additional set of tariffs on $16 billion in exports. that has a hearing comment period that is going to go into effect that could expire around mid to late july. even so, even though it's going to b

hey, kayla. >> hey, carl the administration decided to forgo investment

kayla tausche joining us as you can see. i think that's washington.g building there. >> it is >> yeah. >>> let's bring in carlos gutierr gutierrez. you heard what we were just talking about. >> yes, of course. >> what are your -- do you have a list of both positives and negatives about the trump administration's approach to trade? or just negative >> well, i think that we have to address and it's not a bad thing to address trade and constantly be addressing trade and looking for imbalances and looking for things to fix. so yes, on thaside, i give them some credit the problem is how we're doing it and the strategy with which we're doing it so you'd think that we would want to get some allies first and then confront certn countries. but we have managed to pick the fight with everyone in the world. just to give you a sense of what's up in the air, we have a 232 invoked on the basis of national security for aluminum and steel. we just started investigation on a new 232 which would also invoke national security to give -- to put tariffs on automobiles. we

kayla is in washington. >> secretary of state mike pompeo said the trump administration's foreign policy including its tough stance on trade is in the u.s.'s interest. do our best to call out unfair economic behavior as well. and break downarriers to market entry so that ur companies have fair reciprocal opportunities to sell and to market all around the world. >> and he minced no words calling out china for producing cess steel and aluminum and sending it to the u.s. at prices low it puts u.s. companies out of business. >> the this is this is predatory economics 101. >> it's not just china. import frs germany, france, u.k., italy, jan and canada very targeted wit tariffs on steel andth aluminumu.s. has investigated auto ports and has lashed out at canada. business leerds are concerned president ump's brinks man ship could backfire. >> i'm worry ied things are goi to get out of control once somebody's going to announce something that you know, then three, more position. >> pompeo still expectss all to stick by the u.s. >> our relationship is not solely dened by trade, so i'm very confide

kayla tausche has the latest am eamon javers with a look at inside the white house and who's ascendant who isn't. kayla, you first. >> reporter: the white house trade hawk told reporters today that this is a trade dispute, nothing more, nothing less he enunciated the administration's confidence in its position, outlining new tariffs by saying this the it's clear that china does have have much more to lose what we have at stake is $130 billion in exports to china. what they have sat at stake is $500 billion coming to us. he addressed the market reaction saying first the value of the trade dispute is small compared to the two economies' gdp and that second, the move is ultimately bullish for north america and not to read too much into the move in oil, the u.s. has become a major exporter and can send the commodity elsewhere. n navaro exuded confidence, calling the president visionary and courageous the announcement last night was navarro's idea he presented it in a meeting yesterday at the white house and as for those talks with china, so far, ty, there are none on the calendar back to y

kayla said we sold off friday. nothing new. today's monday, selling off again, but i could make the case that it started weeks ago, if not months ago, and have not seen anything yet. >> selling off trade headlines, is that a buying opportunity >> the opportunity is more of a drizzle. that's in the small cap verse large cap number the outperformance of the small and large cap is impressive, almost 6%, and it's going to provide you a little bit of protection, and right now, the sort of trade war we're having is a drizzle if we end up in a tight bund and the trade war is full bore, that umbrella will not help you it will affect all aspects of the market, and i think that people should be concerned because the things escalate quickly. it's, you know, little, little, little, and then all the sudden they escalate, and you see the market off 5% or 10% easily very quickly on that type of escalation right now, not a lot of concern, but we are watching for escalation because escalation can be very damaging to the economy as a whole and a