u.s. equities have tended to be outperforming global equities, as a civil translation of currency effects.ely that correlation has complete leave vanished, so the dollar's role has gone much more towards is u.s. tech performing. when it doesn't, the dollar has had very little to do with that. vonnie: how much is the rest of the world watching wednesday? clearly we have other central bank moves that might impact economies more, like the boj, but wednesday is the meeting of the central bankers of the world, in some ways. luke: definitely. i think why wednesday and the fed will be closely watched and emerging markets will have to a -- to care, a lot of the markets that are most exposed to china wouldn't be helped by a fed cut, and a lot of those economies don't necessarily have the room to ease monetary policy on their own without having a deleterious effect on their currencies. if you think of the fed back in the classic central banker of the world scenario, a lot of beleaguered economies could get a bit of a lift and room to ease monetary policy themselves if the fed does continue to open t

u.s. equities and a sixth day. looked at several days of gains for global equities overall, seven at the moment. we are seeing this risk on an equity markets despite the fact trade tensions continue. perhaps there is speculation the fed might step in and save the day. manus: yes, and to a certain extent, our last guest, charles-henry monchau -- they are presuming you will see rate hate -- hikes at the back end of 2020. there is your bond market down seconds.le of 30 the fed may want to surprise the market to the upside in the -- and a quarter of a point in july. that will not do. keep an eye on your jgb's, we should have them -- a little bit of italy in their. the market has seen volatility rise in these bond markets. all the central banks are heroes certainly in the mliv blogs. let's get to your asian markets. with juliette saly. we have seen a third session of gains, pretty broad-based buying but particularly in china, the csi 300 up by 2.6%, gain coming through in construction players on hopes of a further policy

u.s. equities and global equities. china mentioning stimulus measures overnight, and that had companies metals rallying today. we are still up about 1/4 of 1%. a couple of stocks to mention, beyond meat down 20% today. not exactly the worst day for beyond meat, the underwriter saying on a valuation viewpoint, beyond meat is really full at this point. sprint down 6%, t-mobile down with the state attorneys general filing an antitrust lawsuit against the merger. we will have to see how that plays out. guy: we will certainly see how that one plays out. basically we are in a situation waiting for the cpi data tomorrow. will that or will that not confirm whether the fed is going to be delivering a rate -- a rate cut? the trade tension story certainly there as well. we are trying to figure out what the earnings story is going to look like. my big question, why would you sell bonds right now. uncertainty, i and there's a lot going on. bloomberg opinion's marcus ashworth is here. why would you sell? reporter: they are massively

the big rally in the u.s. equity markets.is on encouraging remarks from to achieve jay powell. i'm paul allen at the australia summit in sydney. shery: i'm shery ahn in new york. you are watching "daybreak australia." jessica: fed chairman jay powell is signaling a willingness to -- keeping, cleaving an eye on the fallout of the trade war. powell's comments gave stocks a boost. the fed is also under pressure from the white house with president trump calling for lower borrowing costs. do not know how or when these issues will be resolved. we are closely monitoring the implications of these developments for the u.s. economic outlook. and, as always, we will act as appropriate to sustain the expansion with a strong labor market and inflation near the 2% objective. jessica: bank of america boss brian moynihan is raising the alarm for a potential trouble spot of the u.s. economy. he says things are solid but leveraged loans could be a major issue if the economy slows. investors are steadily weakening and the loan market looks like

compare that to u.s. equityase will this trend continue into the second half of the year? joining me to discuss this ben johnson of morning star and todd rosenbluth there seems to be confusion. people seem to be positioned for a slowdown to a certain extent no money into equities a lot of money into bonds. is that the right way to read the flows so far this year >> we're seeing a flight to quality. investors have pushed down yields they are using etf to take on additional risk. we have seen hyg and tlt, a long-term treasury product we have seen strategies that are more hot under the mattress. short products remain popular for investors that are more conservative we have seen steady flow throughout the year. it isn't just may. it's picked up in june. >> let me pick up on what todd was saying, ben. that's why i don't particularly believe in the global slowdown hypothesis if you look at the high yield market, the hyg, for example, fund flows have been really positive there as well the prices have been positive. thi

u.s. equities are still attractive but there are other areas of the world that are attractive.markets is an asset class that's been left for dead. on a relative basis, it's back to where we were over 20 years ago versus the u.s so you see no out performance on that i think investors could look overseas the dollar is strong if we see the dollar weaken here, that will be good for emerging markets >> do you think it will weaken, the dollar >> we have seen some strength, but if we see easing on trade that will be negative for the dollar >> it's been on the run. the president doesn't like it. we'll see if king dollar becomes the court gesture. thank you very much. >> thank you >> dow futures are off about 65 despite the fact that there are two reports of ships attacked or on fire in the gulf of ohman "squawk box" will have more on that "squawk box" begins now. >>> good morning breaking news. two tankers reportedly attacked in the gulf of oman south of iran the u.s. navy is assisting >>> retail ers surging. we'll tell you what's driving premarket gains for lululemon. >>> and the comp

ally more on a fed put equities are u.s. credit? ve not seen much responsiveness from credit spreads. people are very cautious about equities. bet we are seeing is that u.s. equities do really strongly on this. i had a look at two indices. the philly fed is the second worst reading since 2010. maybe there is something more malevolent in the economy than we are seeing in the headline. agree or disagree? aaun: i would agree there is strong weakness in global trade and the trading goods sector. we are seeing this across many areas. if it is the service sector, unemployment growingte strongly, consumer confidence at an all-time high, on the expenditure side, the u.s. economy is looking quite strong. the dollar continue to we can from here? shaun: yes, but not much. nejra: thank you. nutmeg, wonderful answers on all fronts. the third profit warning from daimler in a year. straight to get oliver. he joins us now from munich. a row fore third in this new ceo. >> the new ceo just came in on may. we had two warnings before that. these three a

u.s. equities. paul: that's it for "daybreak australia."omberg. ♪ the latest innovation from xfinity isn't just a store. it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. paul: i'm paul allen in sydney. we are under an hour away from the australian open. kathleen: good evening. i'm kathleen hays. sophie: i'm sophie kamaruddin in hong kong. welcome to "daybreak: asia." paul: our top stories this tuesday, a muted start for asia as trade awaits the fed. chinawall street managed calls on u.s. treasuries since holdings hel

u.s. equities faded out, but still we had a very, very strong week for u.s. ties last week s&p making record highs for the week indexes up about 3%. very strong week for chinese equiti equities it was a very strong week for equity performance as well as fixed income and a multitude of other asset classes as well. commodities very much in focus with energy jumping anything from 5 to 6% today, the mood is a little more cautious we have the stocks 600 trading little flatter on the session about .1% point weaker slightly more red on the board than there is green but all eyes are on the upcoming g20 summit and whether or not there will be progress on the u.s./china trade discussions when the meeting does occur between president trump and president xi that's it for the macro. let's look at the individual markets and look at how the breakdown is all of the majors are actually trading in the reds. ftse 100 just trading around that flat line slightly in the green but treading on water. a lot of scrutiny on autos daimler is right at the bottom that stock is down more th

we saw some losses in u.s. equity indices across the board. dow ended down about 0.7% weaker it's about the fed, disappointment there and geopolitical tensions and how can we forget the upcoming g20 meeting. asian equities traded more muted. the picture for europe today is more negative. 70% of the heat map is trading in the red 30% in the green stoxx 600 is down 0.3% today as well a lot of this, the sentiment surrounding the upcoming g20 summit has been priced in. switching to individual markets, every single one of them is trading in the red ftse 100, we're back above the 7,400 level. we've been toy iing around that level. a little bit weaker, down about a tenth of a spent taj point. xetra dax moderately weaker. kaing cac 40 weaker as well. we have real estate, defensive down about 1 percentage point. healthcare lagging, down 1 percentage point utilities. many of the defensive sectors are actually underperforming on a day when the broader index is not doing so well. that's quite interesting turning your attention to technology here. i did men

u.s. equities business. we want to bring in our reporter.hough reconstruction has been going on for a while. clearly this time, it made investors -- it is making them nervous. what are they doing now that they did not do a year ago? >> year ago, there were some cuts. 25%. now they are saying let's get rid of equities entirely. this is not a sure thing. this is something they are considering and it is not so clear-cut because i getting rid of it, do you spoil some of your interactivity with the global clients that need a footprint on the ground? equity is about half as much in revenue as the fixed income business. it is a smaller business. there is nothing to say it cannot be a fixed income powerhouse potentially. around ratesas that may get cut in a deeper way than last year. paul: how are investors reacting to this so far? sonali: we are seeing a lot of analysts saying that this may not be deep enough to really turn the bank around. the question here is ok, you are making cuts, but how do you return the bank to profitability? is it somethin

u.s. equities. previously, you have been quite. emerging markets, but they had a really bad time in may. with all the selloffs we saw across markets, where are you seeing the best opportunity to add now? luca: i think if you look at the equity markets, year to date, they have been in switzerland mass uprising, they are very defensive. and other market that is very defensive that much, much cheaper for obvious reasons, the u.k. 5%, everyoned of seems to be worried about brexit, the currency is cheap, very defensive. if i have to mention one park and river see the potential, is in the u.k. can ask about europe? we are debating the u.s. policy response, but the european markets are pricing a 70% probability of a rate cut next year from the ecb. would you agree with that? how do you look at europe as a consequence of that? markets mightthe be wrong. 70% is too high. the european economy is better than what people assume. credit growth of 4%, 10 year high. i really believe the markets, if you look at where bund yields are, think they ar

u.s. equities dropped on friday led by shares in chip makers hit by the u.s. china trade war sector heavyweight broadcom for one has cut its revenue forecast by 2000000000 dollars chip makers of both source and sell heavily in china but they're not the only ones complaining more than $600.00 companies have sent a letter to president donald trump calling for him to end the tariff saying they hurt american businesses and consumers. joins us now from wall street there you are young it's good to see you yan's how we had any reaction from the white house to this letter. well i have not seen the no official response from the white house but there has been a group from the business roundtable led by jamie diamond the head of the biggest u.s. bank j.p. morgan meeting with the president on friday but the topic was partly about not so much china a bit more what happens to the free trade agreement with canada and mexico and so the businessmen they were pushing hard at the president or dragging to make a case how dangerous it would be to impose tariffs for example mexico

u.s. equities business.omberg learning that is all part of a broader overhaul to be announced next month. the bank could hold up to $56 billion of risk-weighted assets. ubs still feeling the aftershocks from its chief economist's use of the phrase "chinese big." the chinese railway construction deciding against bond sale.or a alix: i find that story to be totally fascinating in that, regardless of the motivation behind paul donovan's move, it really highlights the lack of cohesiveness between china and western countries in terms of how they even talk and talk to each other. david: is it just the absolutely wrong time and place right now because of tensions, or just an --stration of the law of the lost in translation between cultures and like witches? -- and languages? alix: a bloomberg opinion columnist wrote a really creepy on this. you could say that the response -- a really great piece on this. you could say that the response is heavy-handed, but a couple other banks got kicked out of different countries

u.s. equities have thand worse in asian hours asian equities have traded in u.s. hours. matt: we also see asian stocks not doing as well. sengn site and -- the hang thanhe nikkei are up less u.s. benchmarks year to date. we heard last night from paul -- is the fedat more important markets than a trade deal? mark: i think short-term, yes. even the optimists don't think we will get a trade deal before the g20 at the end of the month. a trade deal is a much bigger story overall, bigger negative story. it is something that plays out slowly over months. it is never dominant in one day, is constant in the background. the fed will be a more relevant story as to how markets will. if you go to the fed meeting next week, people will be keen to see what they say. no one is inspecting a cut next week but much of the market is expecting a cut in july. how that communication comes around will be very relevant. in the short term, that is relevant. overall, the trade war is a bigger story. anna: what about what is going on over in hong kong? the tensions are quite shocking yesterday and

term arrangements dragging down the bank's performance the group will also shrink or shut down its u.s. equity and trading businesses over was part of an effort from c.e.o. concerns are having to shift the bank away from risky investment banking focus on transaction banking and private wealth management. so let's also look at that what is a bad bank quite simply it's a way to isolate a bank from assets that could affect its financial else that's divides divide assets into 2 groups one is for things like risky securities and non-performing loans the other is for the balance good assets its core business the bank or the government can set up an institution to take over the 1st group so-called bad bank the new institution has management that is specialized in dealing with these problem assets the main bank and then go back to focusing on lending money while the concept is straightforward a whole lot of variables to account for sometimes bad banks have outperformed the good banks and many critics see bad banks as a way of rewarding bad for risky behavior. now let's bring in our financial correspon

poorly performing assets valued at up to 50000000000 euros and may also shrink or shut down its u.s. equity and trading businesses. iran has warned world powers it will exceed the limit of uranium stockpiles are agreed to in the 2015 nuclear deal within the next 10 days tehran also said it could enrich the uranium beyond prohibit it levels the deal has been facing collapse since the united states for drew one year ago and we imposed economic sanctions. electricity is back on again in several countries in south america which were hit by a massive power outage on sunday the blackout left more than 40000000 people in argentina uruguay and paraguay without electricity officials are still investigating what caused the power failure. next to hong kong where protesters have again turned out in large numbers to demand the resignation of the territory's leader carrie lam over a controversial extradition law demonstrators are gathering outside government headquarters in other cities the protests come a day after one of the largest rallies in hong kong's history with nearly 2000000 people taking part.

u.s. equities? >> that is roughly fair value.hat is roughly where if you look in terms of neutral rate about zero to 50 and inflation is fair value. i would not say we have to go all the way to 150. if we look at some of the fixed income spaces, there are good opportunities. if you look on the treasury curve, you can still play that. that should steepen a little bit more. you look at emerging-market external, even if you say the rally in duration has gone too far, iteration of two and a half between 5% and 4%, i'm happy to take that. euro high yields, again, i'm happy to take them. for the disconnect between the net -- between the data and what markets have been doing, relative to the sort of risk off assets, that got reinstated with the rebound we have seen in equity markets and risk assets more generally over the last two weeks. that got reinstated again. from an allocation perspective, it still seems improbable to be even if on -- improbable to beat. i would rather cut risk. fed rate we get the cuts, it does not necessarily gi

let's check out the u.s. equity futures.see a slight pullback after a huge rally we've seen. dow futures this morning indicated down by 23 the s&p pulling back after setting a record high. the highest level since april 30th this morning indicated down by 4 1/2 points all of the losses for may for the dow and s&p 500 were erased. stocks are up 7% for the month of june. we have come roaring back from

u.s. equities higher on renewed helps elsewhere for a potential u.s./china trade deal. that confidence fails to spark european market. >>> president trump takes aim at jerome powell ahead of today's policy meeting saying he could consider demoting the central bank head. >>> and trump also blasts ecb president mario draghi and his stimulus plans that sent the euro lower against the dollar. >> there are risks mainly because of brexit, also because of the trade conflict. even the persistence of these risks are a risk in itself >>> president trump has increased pressure on the federal reserve to cut interest rates. bloomberg reported the white house in february examined the possibility that the administration could demote jerome powell from his role as fed chair. the news agency reported that the white house legal review had made a case to replace powell as fed chair but said the move would be open to a legal challenge. trump also hit out at the ecb after mario draghi hinted at further stimulus for the eurozone draghi's comments prompted the euro to slide against the dollar

u.s. equities are a candidate for that. the rates business as well.ion is to what degree do european clients still want to maintain access to the u.s. capital markets? does deutsche bank have to maintain some way of offering their european clients access to u.s. equities. anna: deutsche bank is considering a senior job shakeup. this comes as the ceo is purging executives under his predecessor. he is considering replacing his finance chief and investment banking head. this must make uncomfortable reading for senior executives over at deutsche bank, but will it come as a surprise? steven: it does come as a bit of a surprise. there has been a lot of speculation about the investment banking head. he was on his way out last year and then instead got off on a -- offered a promotion. he has stayed on since. the cfo speculation is really new. it is a big surprise and , definitely they are considering a big shakeup and we will have to see if it turns up as big as he's considering. guy: deutsche bank reportedly facing criminal investigation in the united states

poorly performing assets valued at up to 50000000000 euros and may also shrink or shut down its u.s. equity and trading business. germany had finished top of their group at the world cup with an impressive 4 nail victory against south africa and mumford yet many a low profile opened the scoring early in the 1st half with this from header germany went on to score 2 more before half time lena magro sealed the win in the 2nd half as germany advanced to the last 16 south africa meanwhile head home pointless. and to discuss the game i'm now joined by kareena sophie elena a former elite footballer here in germany and now a sports historian and a writer whose beat is women's for vos so good to have you here with this what did you make of the game oh look game was very very lovely the germans had a wonderful start they make it up to the 1st goal already in the 14th minute so it was a good point that leipold made this goal and yeah and the 2nd goal as well when the goalkeeper had a little bit of a mistake of the south african and there it was. brits who pushed the 2nd ball inside so all in total it

u.s. equities. this is the first trading day of june and as people who are bulls going to be happy to put the month of may behind us it was a rough one we are looking at the dow being down the last six weeks in a row. that's the first time that has happened in eight years. the s&p 500 and nasdaq have been down the last four weeks last week alone the dow was down by another 3%. this morning we are looking at red arrows these aren't severe declines but the dow futures are down by 83 points nasdaq off by 33 should point out that the nasdaq is up more than 12% for the year however, it is moving closer to correction territory it has a 9% decline from the may 3rd closing high let's take a look at what's been happening this morning in other markets. >> ten year? >> oh, my goodness 2.095%. >> the dow was down 200 when i woke up. if you were going to put bets on this, would you say 1.9? >> morgan stanley cut from 245 based on the tariffs. >> 30 year fixed rate mortgage is looking good. >> yeah. if you hadn't

u.s. equities.g at is the extra yield that buffers our earnings to own a basket of s&p 500 stocks are over three month treasury yields. that it is near the lowest level going back since before the crisis. just to give you some kind of sense of how much less people are earning, earning about three percentage points more on an earnings yield basis to go to the s&p 500 than risk-free, three-month rates. here is the wife. .oth of the -- here is the why both of these measures, earning yields have been cutting down, and we have been seeing a slowdown in the expansion of the united states. people have already priced in some kind of fed rate cuts. even if the fed comes through on market expectations, there is a question from the sort of various alternative trade how much support it can actually equities.s. investors are currently pricing in three rate cuts through december, seasonal rates starting to price that in. again, once the fed starts to make these moves, there are a lot of questions and concerns tha

they're looking for yield and some of it is found in the u.s. equityin this premium. the risk is if there is above all, it only pops if rate start to rise rapidly and that creates a flood out of the equity market. out --bably need a pair a policy or at this point. anna: good morning. more aggressive slowdown in the economy and the fed behind the curve and that can pop the stocks as well. we welcome you to the show and carry the theme forward. gina talks about a reach for yield. this is the negative yielding bond spectrum but it is also the gold laid on top of it as well. as you look at this spectrum of negative yielding debt and this reach into gold, do you think the two are correlated? my last guest corrected me and said no. yields,you find is low gold tends to do well. there is another couple of factors in there. leading to the gold price we are seeing. around physical shortages in the gold market which may be contributing to that. and geopolitical tensions, we will talk about a few of them today. we have more overnight with what we see in iran and t

there is capacity for them to stimulate growth and that would help equities, which are teetering on all-time highs. with u.s year at 2.11 is near an all-time low. it carries so much better in brazil local assets. it is worth taking a look. david: let's talk equities for a minute. i will put up a chart that compares brazil, which is the white line, with the purple, which is peru, yellow, which is chile, blue is mexico. does that tell us anything about those countries as investment opportunities? oscar: i think there is an issue with regards to brazil that we have a lot of local money. that allows movement in the market. foreigners oring international funds pouring money into brazil. we are seeing the brazilian locals buying it. that is driving the prices. either social security reform comes in and you start having a bigger flow from international investors, but from the fundamental standpoint, i think the valuations in certain sectors are higher. alix: thanks so much. as we are staying in the region, i will talk about commodities in my "commodities edge" show, a lot about tankers and oils but a lot about inv

no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. >>> welcome back uawk alley. representatives from google and facebook and twitter testifying as u.s. officials are gearing up to prepare an antitrust probe of alp alphabet joining us to discuss is victor anthony and kevin rippy, co-head of internet research at evercore isi. just let's start here. handicap this. we're all having this conversation every single day. gibber jabber, about what's going to happen to alphabet or any of these companies are they going to get broken up? realistically, do you think this is really going to happen in any kind of time frame >> i'd put it at low that real impactful legislation is rolled out. the political will to actually move forward with something like a breakup of the big tech companies just really isn't there. that's a multiyear process whoever would start such an investigation or process wouldn't be able to finish it. so that's really where the rubber would hit the road and you probably don't have the political will >> what about financial will i bring that up be

no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. ith iran escalating, a report that the trump administration made preparations for strikes on iran last night in retaliation for the downing of a u.s. drone but called off the operation. we bring in gil berndale and phil flynn, a fox business contributor. gil, why the about-face? >> i think the president has been pretty consistent the last few days and has seemed to have real reticence about a full-blown war with iran, about launching into real military action, absent a greater provocation than what we've seen so far. lauren: we saw an about-face a little bit on the price of oil, on that report. >> we really did. i think that what we're seeing from that is the market is concerned about what's going to happen in this part of the world and this is a very important choke point for oil. it could have a major impact on the global economy. and i think president trump, even though he pulled back from a military strike, doesn't mean that the united states isn't going to act somehow. he might ju

u.s. equities drop yesterday for a third day. european equities as well.e see declines in global equities today. concerns about trade playing into that story as well. s&p futures flat at the moment. we got to a six-year high with gold. we are pulling back a little bit today as this volatility is the highest since 2016 on the yellow metal. juliette saly in singapore has more. good to have you with us. a bit of a down day in asia following what we saw on wall street. >> absolutely. all those concerns weighing on asian sentiment. the msci index lower for a second session. you mention that movement in the yen. you are seeing the nikkei under pressure as well. stocks similarp to what you saw in the united states. the hang seng index is flat. weakness coming from china. goldman sachs has been busy with raising on markets here in asia. they are downgrading australia's equity market to underweight, saying the 18% rally seen in the asx 200 is too far. the asx six 200 down. we are awaiting a rate decision coming through from the bank of thailand today. they are like

no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.e company has become too big that it should be more closely regulated, has google become another tech monopoly >> mike, if we are going to focus on some really hard computer science information problems, like being part of the google really helps us because we're able to use dish signals and technology that they have to be able to figure out what's the right way to do our recommendations. >> you need to be this big to solve the scale of the problem because you're so big? >> well, having -- having -- having enough scale does help us build systems that are world class, to be able to address this >> and that was youtube's ceo put on the spot on the issue of google's size, a big theme from the code conference this week. and as calls to break up big tech have grown louder, sully c c silicon valley has stepped up its defense. is a potential breakup better for stock prices that's the thesis of our next guest who joins us with mark mahaney. yusef, you have this note arguing that a breakup coul

u.s. equities continue to go from strength to strength given the geopolitical events that have happened. let's look at how gold and oil have done. the story for gold, you are getting a flight to quality bid because of geopolitical concerns the bigger macro driver is what the fed decides to do next on wednesday we had that fed meeting. they signaled a rate cut as soon as july. that spurred activity and inflows into gold. wti and brent on the back of yesterday's developments we saw a spike of more than 5%. a lot of geopolitical risk premium priced in there. no doubt the positioning was light given how much oil has dropped over the last couple of months on demand concerns. >>> president trump reportedly approved military strikes against iran but then backed down according to the "new york times" and the "washington post." the report says trump approved the moves in retaliation for iran shooting down a u.s. drone over the strait of hormuz. the reason for calling off the strike is unclear according to both papers. white house and pentagon officials have so far declined to comment on the repor

u.s. equity markets are fairly flat after five days of gains. trump, as we said, was the one who pressed pause. keep an eye in fx markets. a quick look at the other side. in the mix.things we have ongoing concern about trade tensions. money coming out of oil. inventories data out of the u.s. leading to more concerns about stockpiling, the extent of those inventories. we will watch oil prices as well. into the markets. the managing editor in singapore. >> let me first ask what you think about the trump comments. saying the euro is undervalued. not wrong about that in terms of purchasing price. make of those comments? >> the euro is undervalued on a purchasing power basis. it is generally considered to be undervalued. believe itason to should probably be stronger. the ecb unfairly manipulating it? i don't believe that. there have been dynamics for the dollar. i have shifted bearish. it will be set for a more medium-term depreciation. he is valid on the euro. i think his comments on the fed are unnecessary. fed wantedstand the to normalize policy.

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let's check out the u.s. equity futures.ou will see right now the dow is implied to open up by 1.5 points the s&p down by 2.5. the nasdaq off by 15.5 this comes after a modest day of advances or declines yesterday you saw that the dow was up by 8 points yesterday s&p was down by 5. the nasdaq was down by 26. all of this happening as we still await to see what happens at the g20 meeting that's the big one people are watching, those trade talks or potential talks between president trump and president xi >>> overnight in asia, you'll see that at least right now you're talking about the nikkei, closing down by 0.4% the hang seng was off by 1.1%. then the shanghai was down by almost 0.9%. in europe it looks like, again, a modest decline dax and the cac are relatively flat ftse down by 0.2%. italy and spain down by 0.3% and 0.4% if you check out the treasury market, you will see the ten-year right now looks to be yielding about 2.019%. we do have breaking news on warren buffett he is denying reports of tensions between him and 3g

let's take a look at the u.s. equity futures they are up about 160 points for the dow.nasdaq up by almost 50 points this comes after a day where you once again saw the s&p and naz dick down, i think they have been down 86 the la of the last sessions some pretty major declines over the last six weeks or so the nasdaq at this point is in correction terri

u.s. equity 9.6%. international equities for the year not nearly as good as u.s. and negative. much of which has to do with currency. you buy international stocks in local currency and see the performance translated through the value of the dollar versus local currencies. in periods of economic distress it bids up the price of the dollar. then you look down to see a generally positive environment. skip to the headline page for san francisco on page 19, that top line again to remind everybody is totally fund return. net of all fees you paid on time related basis. if you look at three, five, 10 year periods they are all higher than 7.4%, the assumed rate. in the one, three, five year period while the markets are not extraordinary you have generated more than you need to amortize liabilities through time. relative to peers. this is about 78 public fundings larger than $1 billion you can see the rankings. you are not at all surprised if i asked how you would have ranked in the quarter with the best equity returns you would remember you would rerisk it and what was poor in if fourth

no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. >>> i'm scott wapnere's what's coming up at the "halftime report" at the top of the hour how far can the stock really go with the fed ready to cut rates? plus, former dallas fed president, richard fisher, rick reeder are with us on what is really likely to happen next and a big list of moves from our panel today. we reveal them at noon when we see you on the half. carl, we're about ten or so away we'll send it back to you. >> quite a day, scott. thanks while we wait for slack here at the nyse, over at the nasdaq, grocery outlet makes its debut and surges after its first trade a few moments ago, up 40%. so-called extreme value grocer trades under the symbol go has more than 3 hurricane independently operated stores in six states let's get to santelli exchange morning again, rick. >> good morning, carl. you know, all these ipos, all the unicorn, the way the stock market's pricing, one would never guess that one of the main issues is whether our central bank needs to ease and it's almost not van isseven issu

no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.matter what you trade, at fidelity (gasps ai got in!s) yes! woah! oh yes yes yes yes! to start a college savings plan, find an advisor at massmutual.com ♪ the ai i need? it's gotta scale across my business. starting here, in procurement, helping us find the right suppliers. then here in logistic, to avoid disruptions! here in sales. even here! i'm talking about ai we can build to work... here, predicting trends. and here, wherever our data lives! and here, working with all our other ai! i think we're done here. expect more from ai. ibm watson. run to the long end of the sessio had i big week, the euro versus they hit it hard and 112.08 last week 113 this week. big rebound. backyou. >> i'm going to jump in for a both of them were dovish is it just that they were more dovish he has an abundance of straw you they are responding and that's a joke. how lo lasts and whether not. . they are on the fence about how contes brewer has that story >> morgan, $2.6 billion will buy a lot of glitz and

no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. your but as you get older,hing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. >>> welcome back to "power lunch. i'm mike santoli at the new york stock exchange check out gold rallying this month and touching a six-year high is this a beginning of a breakout for the metal that some consider money mark and michael are your trading nation team today. mark, obviously, gold manages to crack through the upside of this trading range it had been in for years now. what does it say to you at the moment it's maybe running a little hot, but others are looking for momentum to continue >> yeah, a couple things, mike this is a very constructive move in gold. the bulls have been watching for th

u.s. equities for a long time have been outperforming stocks overseas, u about 17% here in 2019 europe hasng place is the central bank easing thee ining theme. it's not just the fed, but the people's bank of china they're playing a role in driving stocks higher overseas and it's really not a rally that's driven by earnings growth because the s&p 500 by the way, the second quarter earnings estimate is 0.3% it's not better in china or europe >> so it's fascinating that china's one of better performers emp sas the economy is weak, but the stock market is doing well how much is because we've talked a lot about their easing measures is it a sign of weakness rather than strength in a way >> i think it's a great poichblt why we have to see what happens in the second half of the year does china stick to their guns and unveil more stimulus options that can help the stock market continue to outperform on the trade front, we're still expegting more details if you pivot in other parts of the world, see russia, one of the other outperformers, about 30% this year. interesting. that seems to be a story t

no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. no matter what you trade, at fidelity hey! i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. >>> hello, folks, i'm jon najarian from the "halftime report," if you'd like to send us a question, we'd love to answer it. send them to cnbc.com/halftime and we'll answer as many as we can at the end of the show thank you. >> announcer: go to cnbc.com/halftime or get us on twitter with #askhalftime. >>> and welcome back, everybody. here's your cnbc news update and what's happening at

check out the u.s. equitying even after the big gains we saw yesterday, you are seeing that momentum continue this morning yesterday we saw the markets up across the board the dow was up 512 points which is a gain of 2%, and it was the least big winner of the three major averages the s&p was up by 2.1% and the nasdaq up by 200 points, a gain of 2.6% dow futures up by about 165 points there were the gains from yesterday up by 2% for the dow industrials. check out also what's been happening in the treasury market because across the board yields really are what we've been watching for quite a while the ten-year yieldin

. >> let's get a look at the u.s. equityures, you're seeing red arrows yesterday, the dow closed up by 100 points and it was this smallest gainer of the three major averages when you look at percentage terms the dow and s&p 500 up by almost .4% the nasdaq up by a little more, i think up by more than half a percentage point right now on track for gains for the week with the red arrows we see this morning dow indicated down by 47 points. overnight in asia, you're going to see the nikkei was actually slightly higher, up by .4% but red arrows in the hang seng and shanghai composite, off by .6% shanghai composite down by 1%. europe, where there is trading taking place now, you'll see there are red arrows across the board. biggest decliner is the dax, down by .6%. united states, treasury market in focus, yields for the ten year are now sitting at 2.06%. so below the 2.1% we have been hoveri ining around for the las couple of days >> iran refuting u.s. claims it was responsible for the attacks on the two oil tankers in the middle e

u.s. equities you remain that way today? >> still very defensive. still underweight. and one of the things you mentioned, the note the bank of america published was interesting because one of the things they mentioned in the note was since trump's may 5th tweets in which he raised tariffs on china, you haven't really season any cone census changes with regard to earnings estimates for the s&p 500. earnings are pretty flat since may 5 ppt you've had increased tariffs on mexico, on china. president trump over the weekend was also toying with increasing tariffs on india so you've had him now become very -- on the offensive with respect to increasing tariffs, and yet consensus estimates haven't increased. specifically, you haven't seen any earnings degradation or consensus degradation in semiconductors or industrials, two of the sectors hardest hit so i don't think that people are appropriately discounting, still, in their estimates, what the actual impact from tariffs can be add on top of that increased headwinds from the global economic trajectory and you're still in an