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tv   Worldwide Exchange  CNBC  August 27, 2019 5:00am-6:00am EDT

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recession risks front and center top global money managers sounding the alarm over possible global recession, but one major u.s. consumer ceo isn't panicking just yet a landmark decision, an oklahoma judge finding johnson & johnson liable in that state's opioid's crisis it's ordered to pay $570 million
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in fines but the stock is up find out why in a moment and trouble in the skies boeing facing it's first customer lawsuit over it's grounded 737 max jet fleet and income clear deal 2.0. president trump signaling a willingness to sit down with iran to possibly hammer out a new deal it's tuesday august 22nd and worldwide exchange begins right now. good morning i'm courtney reagan in for brian sullivan this morning. we're keeping an eye on shares of johnson & johnson up just about 2% in early trading as an oklahoma judge finds the company liable in that state's widespread opioid crisis we'll update you on the story in a moment it might be surprising shares being up when they are
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indeed found liable. we'll set the tone for where we're starting the morning here in the united states dow jones features are indicated lower by 26 points after we had a nice day yesterday so all three major averages indicated to open slightly lower take a quick check on what's going on in the treasury markets with the yields. and right now the 10 year yield is at 1.51 look at this though, two year, 1.526. let's go worldwide now let's check on what's going on in asia. we had a mostly higher session the shanghai composite higher by 1.3% and then in europe at least in early trading things are looking largely red here you can see that the ftse 100 is down by .5% here germany is just about flat though spain higher by .1% and italy higher by .7 now president trump is back at the white house following a
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turbulent g-7 summit at france following everything nbc's craig boswell joins us now from washington with more. good morning, craig. >> good morning. good morning, everyone the g-7 summit was ending and president trump signaling a possible beginning to talks with iran saying he is open to possible nuclear talks with iran coming back to the table the president saying tensions have really flaired with iran a and tehran over the nuclear program. iran responded after the president arrived in washington. iran responded saying any talks between the u.s. and iran would only take place after the u.s. lifts sanctions on iran. now on other positive notes that the president struck during this g-7 meeting, this g-7 economic summit in recent days. saying china wants to make a
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deal very badly saying chinese officials have contacted their counter parts here in washington denying the calls have taken place. even though both countries have threatened tariffs to begin as early as next week so it remains to be seen whether or not these talks will ramp up even though there are previously scheduled talks earlier, coming up in september. the president signaling he might want to host next year's summit, he might want to host that at raising some eyebrowside of certainly his critics saying they would want to push back against that and might see even more lawsuits against any potential payments to trump properties. >> i could see that being a bit
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controversial. thank you for joining us here this morning. >> despite optimism yesterday of a cooling u.s. china trade tension front wall street remains on edge warning clienlts abo -- clients about elevated risks. the global economy will fall into recession if the u.s. raises tariffs on all imports to china to 25% and beijing follows suit trade tensions combined with reactive monetary and fiscal policy mean that the risk of nonlinear tightening and financial conditions triggering a global recession is high-ri ad rising at the same time, the world manager ubs that oversees some $2 trillion in asset is now recommending customers move to aunds weig a underneath position. investors brace for higher
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volatility we're reducing risk in our portfolios by moving to an underweight in equities. and at rbc they're pinning their equity outlook not just on macro tensions but earnings growth adds well. while the base case has been for a pull back around 10% in the months ahead we do believe a growth scare taking hold of the u.s. equity market is rising rapidly but it's not all doom and gloom. kevin johnson, the company with huge exposure to not just china but around the world isn't worried about a recession just yet speaking with jim cramer on mad money last night >> we have not seen signs of the u.s. related to a slow down. and consumers seem to be doing well >> it's the one thing that seems to be opening up this economy now. a major court ruling against
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johnson & johnson and contessa brewer. >> judges ordered johnson & johnson to pay $572 million contributing to the opioid epidemic they filed this under the public nuisance law the company sold opioid drugs. j and j and it's subsidiary down played the risk of addictions and targeted doctors that subscribe lots of opioids as key customers. the $572 million judgment covers what the state says it will spend to tackle the prices including treatment and n what the state would be seeking though. analyst expected j and j to be fined as much as $5 billion. the stock is up about 2% this morning in part probably because this was priced in already the danger of a $5 billion
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judgment shares of other makers of opioids are also higher this morning. johnson & johnson plans to appeal saying the decision is flawed and that the state failed to present evidence that it's products or actions caused the crisis the trial had been closely watched by plaintiffs in nearly 2,000 cases against j and j and other opioid manufacturers those had been consolidated into one case pending before a judge in ohio and settled in pursuits against purdue far ma and teva. >> it's far from over. >> when we come back, why renewed hopes of u.s. china trade talks may not be enough to reduce the markets this morning and facing it's first customer lawsuit over it's grounded 737 max jet fleet. later why wall street is eating up kfc's new tie up.
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china's foreign ministry out with a new statement this morning. news of two phone calls between the president and china. eunice joins us now from
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beijing. eunice, help clear up the confusion. >> well, i don't know if this is going to add to the confusion but the foreign ministry today declined to confirm for a second day that there were any high level phone conversations between the u.s. and china this comes after president trump said that china called the u.s. to restart the talks now the foreign ministry said that the two teams are in contact and it also added that the trade dispute should be resolved through dialogue, the u.s. needs to, quote, stop all wrongful actions and that the u.s. should create conditions for talks based on mutual respect and equality there's two ways to interpret the ministry's remarks from the beginning the chinese have been trying to slow case themselves as the ones that are reacting that the trump administration is the instigator in this trade war. because of that we could be seeing beijing trying to play down the idea that perhaps it initiated a y to interpret it is
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in the language of the it's the same language that we have seen in some iteration since they stalemated since may. so the signal that beijing is sending from a statement is that their position, at least officially has not changed that would suggest then that any optimism or excitement over a possible trade deal could be a bit premature. courtney. >> wow, so still a lot of things to clear up there and to understand what about what's going on in hong kong right now, eunice? it looks like these protests have taken a decidedly violent turnover the last 24 hours or so. >> that's right. what interesting is that the public security ministry which of course is like the top level police dog of the country put out a statement saying their minister has been touring around
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the province that borders hong kong and in that statement the ministry said that china would rigorously crack down on all terrorism activities to ensure the stability of the country so what is interesting here is that the government has been trying to paint the protestors as terrorists and these protests are becoming much more violent demonstrators said they're going to continue their protests in the coming days and weeks ahead. what we could be seeing here is just another reminder of the governments might here and what could happen if the protests get even more out of hand. courtney. >> thank you very much for following all of that for us that story is also falled from over. >> for more on trade tensions and the markets joining me now is the global macro strategist, peter, good morning, thank you for being here with us today. >> good morning. >> good morning. >> so we had quite an
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interesting several days, right? friday was quite a head turner they move the markets in that direction. shifted from powell to the u.s.-china trade tensions. things seem to calm down during the g-7 at least for the markets. where are we today and if you're an investor should you be as reactionary and we have been? >> well, first of all, where are we that's a very good question. i think nobody is really sure anymore. it came from your president threatening further tariffs to having second thoughts and now appare apparently reopening negotiations which the chinese don't know about it's entirely unclear. should the investors be that reactionary. i'm not sure that it's the investors driving this there's a lot of other
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participants in the market that react much quicker to headlines. one of the things that i could definitely see when you see it particularly in the bond market. not so much in the equity market but particularly the bond market is the anticipation of these frictions to not go away that quickly and ultimately having an impact on the economy, they're very clearly visible. >> the two year yield is yielding more than the ten year at this very moment at 1.52% so there is a fear in the bond market and of course we talk a lot about this yield curve inversion often preceding a recession. are you fearful that the recession is in the near term in the united states or other global economies >> first of all i think we should be separating the u.s. and probably the entire north american continent from the rest of the world because there are very different features here and
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when you say are we fearing a recession? i think fearful is probably too strong of a word we're certainly mindful of these risks. it's not imminent at all and growth rates are much, much lower to begin with. and now flirting with at least recession nary tendencies. the labor market is weakening to some degree and we have the domestic event of brexit to contend with there's a much larger risk of at least a pronounced down swing in the economy. >> we're talking a lot about risks, uncertainty worries, if you put it all together for an investor, what should you be doing? ubs is recommending that investors trim positions and go underweight equities >> well, i mean, going underweight equities is a risky bet at this stage because when
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you see particularly in north america that interest rates could come further down if the economy takes a hit, the interest rates could come further down and what we do know is that in the early stages typically of these economic down swings when interest rates come down, the equity market does reasonably well because of course the discount function goes down and therefore the multipliers can still remain relatively elevated and i think that's what we're seeing currently. so i think my recommendation currently is to at the very least have a proportion in still relatively low yielding bond markets i'm afraid. >> okay. we'll take that under advisement thank you for joining us this morning. >> thank you for having me. >> well, still on deck, the ingredients may be fresh but the financials not so much details behind papa johns shake upcoming up next. >> booking your next flight via text message is not as crazy as
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it sounds at least for one budget airline it's trending and it's coming up when worldwide exchange returns. ♪ along the byway ♪ much more ♪ much more than this ♪ i did it my way (announcer) verizon is america's most awarded network and the only one with the galaxy note10 5g. right now, when you buy one, you get a galaxy note10 free. that's verizon.
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let's get a check of stocks on the move this morning
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it wants it's $35 million deposit back plus $75 million in lost profit. more than $100 million in damages and several times that amount impunative damage. >> p >>papa johns is set to name ar bi's president as the new ceo. the move also comes after activist investor starboard value pushed for change. shares of papa johns are unchanged on this news at this point. up again today after the stock surged more than 5% yesterday. shares beyond 2%. >> still to come, stock futures pointing to a lower open on wall
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street, we're higher our next guest says it's not the time to get negative on stocks but first a wild weather warning as hurricane season heats up worldwide exchange is back after this you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. ♪ think you need to pay prestige prices for better skin results? try olay regenerist. the rich, hydrating cream is formulated with vitamin b3 and peptides to plump skin cells, brighten, and visibly smooth wrinkles.
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welcome back to worldwide exchange i am courtney reagan let's get a quick check on futures here
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we have now turned slightly positive the dow jones indicated higher by 29 points flat to slightly higher. the nasdaq indicated higher by only 2 points. we have a long way to go let's get a quick check on what's going on in the energy market you can see the price of wti crude is higher by about a percent. brent crude higher by .6%. wti sitting at just over $54 barrel let's get a quick check this morning on the other headlines phillip is in new york with the latest good morning, phillip. >> good morning. as tropical storm dorian approaches puerto rico declared a state of emergency overnight it passed nearby the island of barbados and if it continues as predicted it's expected to hit puerto rico tomorrow the island is still recovering from hurricane maria that made landfall nearly two years ago. it was the deadliest natural disaster in u.s. history killing 3,000 people and destroying the
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island's power grid. people there are stocking up on water, food and back up generators supreme court justice ruth bader ginsberg isn't letting a cancer scare keep her down she accepted an honorary law degree from the university of buffalo school of law and cracking a few jokes along the way. >> it was beyond my wildest imagination that i would one day become the notorious rbg i am now 86 years old yet people of all ages want to take their picture with me. amazing. >> she also said she hopes democrats and republicans could come together to serve the people and saturday night live has announced this president's first host and it looks like a killer line-up. it all starts with woody harrelson but fans are
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especially excited to see eddie murphy coming back to host for the first time in 35 years hopefully he'll bring back gumby or mr. robinson's neighborhood or any of his famous characters. it's been awhile. >> he is slated to do the christmas show too which is extra xciting. >> thank you we go back to france where the g-7 summit has wrapped but questions about what exactly was accomplished still remain. we're breaking down the headlines and what they mean for your meyon that's coming up next on worldwide exchange is out there. and the alzheimer's association is going to make it happen. but we won't get there without you. join the fight with the alzheimer's association. beauty editors have tried everything in search of a whiter smile. their choice? crest 3d whitestrips. our exclusive formulation whitens safely for a 100% noticeably whiter smile. guaranteed. trust america's #1 whitening brand,
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♪ ♪ applebee's handcrafted burgers now starting at $7.99. now that's eatin' good in the neighborhood
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a cool down. the dow, s&p and nasdaq pointing to a mixed open after a positive day on wall street monday but has the rally already run it's course we'll tell you how to hedge the uncertainty. johnson & johnson ordered to take $572 million in key opioid trial. and the three biggest names in the world are using the same strategy getting the same result and in this case it's actually not a good thing we'll tell you why they're not worried. it's tuesday, august 27th and you're watching worldwide exchange on cnbc ♪ >> welcome back to worldwide
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exchange i'm courtney reagan in for brian sullivan this morning. let's get a quick check on how things are shaping up to set up your market day. futures right now are pointing to a slightly positive mixed open as you can see the nasdaq going back and forth between positive and negative. the dow ever so slightly positive here. take a quick look at what's going on in the treasury market as we watch this bond inversion for the two year yield sitting slightly above the yield on the ten year note. let's go worldwide and get a check on what happened overseas in asia. the shanghai composite up 1.43% and in europe in early trading we had a mixed picture about half an hour ago and so far i believe that's still the case as we're looking right now and the german dax is just barely positive and the ftse mib is higher but the ftse 100 is lower. >> president trump is back at
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the white house after a headline grabbing g-7 summit in france, to say the least aman joins us live from the scene. bonjour eamon. >> good morning. the diplomats have gone. the world leaders have gone. the tourists and beach goer are still here today let's look at what we learned here a very dramatic g-7 as we saw all the world leaders meeting. last year's g-7 ended in frustration. the president tweeting insults at the hosts flying away in air force one in a funk. this time the president said thank you, france. a much more upbeat tone overall through the g-7 here a couple of points to watch. all the diplomacy was subtle here no major agreement no pens to paper but on china trade we saw a president of the united states yesterday that was much more engaged in deal making mode than he had been on friday. earlier in the week the president very frustrated
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calling the leader of china an enemy. on monday, though, calling him a great leader seemingly willing to work it out with the chinese we'll see whether the chinese are also willing, a bit of a thaw here. emanuel macron going out of its way to bring the foreign minister of iran here to talk to world leaders. the president of the united states offering loans to iran secured by oil if they can get to an agreement suggesting he would be willing to sit down if the timing was right ultimately and then finally, vladimir putin a big subject, not present but a big subject of discussion here as all the world leaders discussed and debated the president's proposal to make the g-7 the g-8 again and bring russia back in you remember russia was expelled from the g-8 the president suggested that was
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because vladimir putin out smarted barrack obama. he would like to bring vladimir putin back in and make the g-7 the g-8 again and other world leaders are not so keen on that. trying to present a bit of a reset there. a lot going on no major deals but positive signs from various fronts. >> it was enough to keep you busy, i think. also new comments on china from the trade talks. what do we know now? >> what we know is that the chinese have never said over the past 24 hours whether or not there were these telephone calls at a high level that president trump talked about yesterday he rocked the markets and the futures early monday by suggesting that there had been two phone calls with the chinese side and the chinese indicated they were ready to come back to the table. the chinese government never endorsed that. stop so-called wrong actions and
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get back to the negotiating table. at one point yesterday the president dropped that and suggested it was a headline from the chinese leadership that he was referring to and then went back to the idea that there's been numerous phone calls. we never got to the bottom of that courtney and nobody offered any details of the calls, timing who they are with or anything like that. the chinese say we don't have any record of that >> thank you for following up on thatfor us we're here to discuss. he's also a former white house secretary. thank you for joining us today john i'll start with you since we just ended with eamon talking about what we know or what we don't between the conversations with the u.s. and china. as you look at china, what do you think they are looking at the united states negotiating position and do you think that they think we're weak, strong? where are they playing their
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hand. >> this is a place that's been around for 4,000 years so they think of american presidents as temporary occupants of the white house the same way douglas mcarthur did but in china, as much as -- as early as a year, even two years ago the people on the ground were really thinking this is more of a long-term conflict arising between china and the u.s. but also foreign policy and other things that's why supply trains started moving as early as a year ago. but they're not hopeful there's going to be immediate resolution the confusing remarks that come out of the white house in these tweet storms make it much more difficult inside china for them to figure out what's going on.
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>> president trump seems to be moving the markets swiftly it seems to be a dangerous position for investors what do you make of putting these together and how investors should be reacting to all the news and headlines? >> it must be be wildwildering them you had some reporting at the top of the hour about some of the banks and what they're telling their clients about taking risk off and being a little bit more cautionary i think that's probably the right stance and we tell our clients who are asking what they should make of it, focus much more on what is actually happening and less on it and not
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just in the past few weeks but few days going into the weekend. it sounded like things were really rocky and then who knows, but what we do know is that tariffs are still in place new tariffs are coming on and new tariffs are coming on into december and they're going to sit down and talk and see what comes out of the discussions. >> china came out and retaliated against the united states action with tariffs of its own on u.s. products how damaging is that action and what other measures should we be prepared for in terms of retaliation from china
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china has less to work with on that score and the growing middle class in china. it's the policies the chinese government has toward them on the ground in china. they can cause tremendous damage to u.s. companies and we should be careful about that but the other damage of course is that as a director of companies, i think i'm on six or seven boards at the moment, i cannot approve a major capital spending project with this level of uncertainty capital spending takes years and years. just imagine how long it takes you if you believe the president that okay, get out of china, it would take a company years to do
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that he said this is not likely to get results until the next election he said this is too delicious a political asset to let go before november 2020. >> that's what i was kind of thinking as i start to think about the president's messaging. is this possibly all done together to try to get jay powell to cut rates? drive things lower and get his rate cuts that he wants and then he ultimately solves the deal with china and says i have rates lower. i solved the deal with china going into the election? doesn't that look good >> he has essentially told them that trade uncertainty is going to factor into his decisions on rate cutting by both in terms of speed and magnitude. i think on trade, the president has had this view on trade
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he's been relatively, you know, protectionist and feeling that the united states has been treated unfairly and his words with our training partner for decades. it's not a new thing so i don't think it would have made any difference he's still going to be very confrontational on trade it's having an economic impact and john just described the kind of decisions that firms are making long-term investment decisions that they have to put on hold now and have to go through costly changes and supply lines they're very difficult and challenging and expensive to do. so there's an economic impact. so the fed does need to be thinking about it and, you know, but he wants to ceelo rates for a lot of reasons i think he would like to see a juiced up economy going into his election but i think some of his
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motivations for things like the trade fight are, you know, long standing with him. >> it seems to all make sense to me thank you for joining us here today. >> thank you, courtney. >> pleasure. >> well, developing story, an oklahoma judge ruling against johnson & johnson in the state's opioid case forcing the company to pay $572 million. meg joins us on the cnbc newsline if folks just look at the headlines they think this was a victory for the courts but others say this was a victory for johnson & johnson. $572 million was not as bad as it could have been. >> hey, if you look at the stock reaction, wall street considers it a victory for johnson & johnson. it depends on who you're talking to you know, the attorney general called it a victory for the state. the judge was pretty clear in his decision saying that johnson & johnson was misleading in the way it marketed these opioids. of course it said j and j was not just the marketer of its own
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opioids but cultivated the raw ingredients that it sold to other companies. that's how the state made the case that they were a major contributor to the opioid crisis but wall street was looking at 1 to 2 billion and as much as $5 billion here the state asked for 17 billion and got what aamoumounted to one year to try to remedy the crisis it was looking for 17 billion over 30 but still declaring some victory at least in what was the first case of many to go to trial starting this fall what precedent is set for the remainder of the cases coming to court here >> johnson & johnson says no precedent of course. they say the legal issues at play here were unique to oklahoma oklahoma is arguing they caused a publish nuisance and the judge
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agreed with them in this case. and those were moving huge last night and up double digit for some of them this morning they're up but not nearly as much it seems like analysts were saying that was less than we expected for j and j but nobody is out of the woods. this is going to be a long legal battle maybe everybody shouldn't breathe such a sigh of relief. >> i'm from ohio and that's the epi center of a lot of the opioid crisis and i have to say, i was in a way glad there was some responsibility for the horrible tragedy that's happening but i'm just astounded by $572 million.
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that's one year worth of the damage assessed in the state of oklahoma at least. what's to come in states like oh ohio. >> thousands of lawsuits from cities and counts have been consolidated in federal court in the northern district there. so the first trial where they're going to go to trial is set for october 21st if no major settlements are released now this would be huge and there's a lot of different companies that are defended in these cases. dozens more than a dozen companies. so drug companies distributors and pharmacies are all named here so it would be very big for them to come and reach a settlement together. johnson & johnson said yesterday after the decision that all
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options are on the table including a potential settlement in that case which is interesting because in oklahoma they said when you're right, you fight. but this is a whole other story in ohio because it's thousands of cases on the federal level. >> i know you're going to continue to cover this story for us thank you for calling in early this morning. >> thank you. >> well, coming up, why tech plus real estate equals a recipe for investing success. we break down the two hot sectors and the names to watch, that's coming up next.
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let's find out what else you'll be talking about today. it's time for the morning's top trending stories con te contessa is here >> what defines trending spirit airlines wants to make it easier to book your flight they'll begin allowing customers to reserve their seats on
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whatsapp next month. it will be available in english and spanish with customers interacting with a chat bot to get basic information and book their flight the spirit agents will be involved but we're turning to automation, digital, so pretty soon the best friend in your life is going to be the robot that you interact with. >> i fly united and i get the text messages that tells me my gate is changed. it seems so much easier to me than trying to call on the phone or find the place in the website if you could just text an agent. >> it could be i just want to make sure that there's room for error because i'm going to screw that up. >> they're testing it out. so we'll see, this could be the trend of the future. barbie is rolling out new dolls and it's the inspiring women's civil. rosa parks and the first american female astronaut sally ride immortalized here by
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barbie the dolls come with educational information about the achievements i find it interesting that when matel put out -- we're selling these dolls, one they advertised as being at target, sally ride and rosa parks was at walmart but each store were getting their own version. >> although i think rosa parks is back ordered already. >> it's amazing. >> it's really fascinating i wish they would do the same thing for boys. >> like the ken version. >> right >> exactly let's see the ken version of fdr. >> that would be cool. good idea. look at that maybe you should work in business. >> occasionally i have them. it's the whole mom thing going for me here. >> i like that i like that very much. >> thank you the two best performing sectors in the s&p 500 technology and real estate by pretty wide margins. dominic is here with a deeper
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dive. >> all right so how big of a gap is it? if you take a look at the s&p 500 so far this year and then you look at the two best performing sectors, the s&p 500 is up about 15% and meanwhile technology and real estate up 25 and 26% each and what happens when you actually take those sectors and put them together what you have is company that deal in real estate and technology wireless technology and server farms and data centers as well, those companies do better in this kind of environment now if you take a look at those names, some of the ones that we're talking about are names like sba communications and also amt, american tower and others as well. so if you take a look at all the names real estate plus technology issue the names that do well in this kind of
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environment. back over to you guys. >> appreciate that well, on deck, three legendary bond masters rude awakening when it comes to their bottomines rlidexan iba rht after this
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time for the executive recap, the headlines that you need in 60 seconds the new report out from the wall street journal on carlos gohsn he built a business as an investor in silicon valley using millions of dollars he received from an executive at nissan. he stole the money by arranging to pay a distributor $10 million
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and having $5 million kicked back to him. >> a russian aircraft leasing company is suing boeing for breach of contract in connection with it's grounded 737 max the so-called bond kings have employed the same investing strategy and have fallen short when compared to their peers thanks to the rally in u.s. corporate bonds and strategies but they're not worried saying that they can live with the underperformance because of the greater damage that they see coming for corporate bonds back to the markets and your money. futures are indicating a mixed open or they were at least just a bit ago. we had been negative and then slightly positive. joining me is bill stone he is the chief investment officer. thank you for being here with us today. there is so much headline whiplash with the latest trade headlines between the united states and china is it dangerous to get involved
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in the equity markets right now? would you recommend sitting on the sidelines or taking money out as ubs is telling clients to do >> i wouldn't totally take money out. we have talked to clients about the fact that you have to expect volatility at this point i think, you know, clearly, friday may be clear and even again yesterday that the trade headlines are what is really mattering to the market right now. i was thinking about it and i said it reminds me of this book i read a long time ago, the agony and the ecstasy. it was about michael angelo. i don't know how to twist that into it other than italy is involved in this too with their coalition government in trouble but at the end of the day, i do think that you have to lightning through to the longer run. we are going to continue to have and i think, i don't know how long it will take to get through the volatility but to leave completely on equities, that really comes to making two good decisions, that's really hard to do in terms of the decision to get back in. you get yourself to a place
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where you can make it through the short-term bumps we may have the opportunities are greater in stocks it's the look as far as the dividend on the s&p is higher than the ten year. historically that's been good. it doesn't work right away necessarily but at least since the financial crisis that's been a good signal that things have gotten cheap enough that some money starts going there. >> we just have about a minute left here, bill. do you think that rate cuts are going to be enough to sort of offset any other weakness that we see from trade? it seems like the market is definitely pricing in a 25 basis point rate cut here coming up. could we get more and is it enough >> well, yes, at least depending on the data you might get 50 in september and probably another two cuts add up to a total of another 75 basis points i think that's what the yield curve is telling you is it enough clearly central banks trying to
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offset the trade drag, it may not completely be able to put it will be a help that's why you're seeing central banks across the globe really cutting. it's going to keep the u.s. out of recession at least for the next year anyway. >> keeping us out of recession will be a good thing i hope that comes true for us. that's it for worldwide exchange this morning squawk box begins right now. >> good morning, a landmark ruling about an opioid case. johnson & johnson ordered to pay more than half a billion dollars. we'll tell you why drug maker stocks are pushing higher. what recession the ceo of a major consumer company tells cnbc he sees no signs in a slow down in growth plus the latest response from china. we'll get a live report from beijing. it's tuesday, august 27th, 2019 and squawk box begins right now.
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>> live from new york, where business never sleeps, this is squawk box >> good morning, everybody welcome to squawk box here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernan and mike santoli. andrew is off today. you'll see now that things are in the green we did see gains yesterday dow up 230 points. made progress but didn't make back half of the ground we lost on friday. this morning, green arrows now s&p futures up by 3 and the nasdaq up by 7 overnight in asia, take a look and you're going to see that the nikkei ended the day up by 1%. the hang seng was flat and then in europe where there's early trading takes place you'll see a mixed picture. a little weaker for the ftse down by .4% and the

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