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tv   Worldwide Exchange  CNBC  June 22, 2018 5:00am-6:00am EDT

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eem seema mody it's 5:00 a.m. here's your five at 5:00 >> oil ministers meeting now behind closed doors in vienna. wall street pointing to a higher open after the dow tries to snap eight straight days of losses big banks clearing a major hurdle as they pass the fed's annual stress test. china calling out the u.s. again today as the threat of a trade war heats up. and a big deal could be brewing in the food space as conagra and pinnacle foods looks to team up
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it's friday, june 22, 2018, "worldwide exchange" begins right now. ♪ good morning tgif welcome to "worldwide exchange." i'm dominic which you. let's check on the futures we are seeing a nice move higher in the equity side of things if the dow opens up the way it is now with the futures picture, we could be up by 125 points the nasdaq up by 25. the s&p by 13. oil is the big focus today ahead of the big opec decision right now both brent and wti crude are trading higher wt i-i $66.22 ice brent crude, $73.92. so, as we talk about that big opec meeting, let's get out to brian sullivan live in vienna at that opec meeting. brian, what do we know
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what's the latest? i see a lot of bodies behind you. >> okay. i've been in a lot of strange places and done a lot of strange live bits. we're in the basement of opec. these are all energy, oil, opec reporters. we're stuck in a stairwell can we get stuck in a stairwell trending on twitter? we're waiting to go upstairs to talk to the ministers. the opec meeting, there is news because of this. the opec meeting was supposed to have begun an hour ago it's been delayed. there are numerous reports that saudi arabia and iran are still trying to hammer out a deal. saudi arabia would like to raise production, iran is not necessarily against it but there's certain things they would like there's a lot of things out there maybe they want. everyone is waiting here so we're stuck in this stairwell waiting for an hour-delayed opec meeting to begin they'll let one group up, then
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another group. some of these folks here have been waiting for a couple hours. if anyone is watching from opec. we're still down here. again, we are waiting on this time to go upstairs, talk to some of the ministers. the way this works, they will put out their decision later on today, and hopefully we'll get a chance to speak with them again. the big question is are we going to get an output agreement can russia, saudi arabia and iran come together to craft some kind of statement. even though russia is not a member of opec, they are a big force here so much so that we and others have been calling it ropec because of the russian influence which looms large. right now we are in a stairwell at the bottom of a random office building in vienna waiting to go upstairs i'll do my reporting from here as long as we need to. hopefully we can get you more on how the ministers feel and if we'll get a decision on whether
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oil output is going up for now, tell mom and dad we love them and send cookies >> stay hydrated and stay cool we will check in with brian throughout the course of the hour as you heard brian say, there's been a delay as reportedly saudi arabia and iran are trying to work towards bridging a gap that they have in terms of production levels seem m seema, a huge deal developing there. 35 of america's biggest banks got a clean bill of health they all passed the fed's annual stress test. the fed saying these banks have enough capital to withstand a major economic downturn. this is just part one of the test next week the fed will decide whether or not to approve plans for buybacks and dividends in trade news, china's state media slamming the u.s. today.
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the official china daily newspaper publishing an editorial saying the u.s. is suffering from paranoid delugses when it comes to trade the paper also calling u.s.'s productionism stan productionism -- protectionism self-defeating >> on that note, let's look at markets. futures are pointing to a higher open recouping losses from yesterday. joining us now is peter boockvar, cnbc contributor good morning to you. it's been hard for investors to quauch quantify this trade risk but the rhetoric between the u.s. and china is heating up. what do you do as an investor? >> i think the daimler news yesterday, as we hear, will be
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an issue whether it's an issue like a retailer blames weather on earnings, or whether it's something else, but it's an issue. the possibility of tariffs being implemented could change decisionmaking, could change guidance >> one way investors have been trying to trade the trade headlines is sell companies with high revenue exposure to china, but that does not capture the complexity of manufacturing in the global supply chains is that the best strategy to use? >> it is complex and not really clear. even some other auto companies yesterday, bshgmw said we're no changing our forecast. here you have two german companies competing tightly against each other, one blaming and one saying we don't know it's difficult to predict until we hear what they have to say. >> i like to talk about hard mick data ve economic data verst
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economic data. this is soft right now as you look from an economic standpoint, as you look from a data standpoint, where will you start to worry what do you have to see before you worry that that sentiment activity translates into bottom line impacts >> right it's a great question. i think the trade deficit data, the export data is really going to be the place that will reflect it particularly in germany where 40% of their business is exports. in the u.s., in china. so, that's the place i would actually first start to look but it also gets into the production data. if german cars made in the u.s., if they're starting to get worried that china will buy less, it will cost more, in u.s. auto industrial production numbers. the unfortunate thing is this
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gets affected immediately. it's not a multi-month process to see how this plays out. companies are responding now we don't have to wait long to see the impact what are your thoughts on italy, back in the news two euro skeptic lawmakers heading up the parliamentary committee in charge of making some decisions, policy decisions. should we get worried again about italy and its political future >> i'm less worried about the politics in italy because it always seems to be a drama and an ongoing soap opera. i do think more importantly that what we've seen in the italian bond market is a dress rehearsal of what will happen broadly speaking in european bonds as the ecb gets closer to ending qe when you look at the yields, you still have to scratch your head. german ten-year yields at 40 basis points and the large amount of negative yielding bonds as we get closer to the end of the year, because qe is essentially ending in september.
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i think this is just a canary for what we're about to see in the european bond market we talk about the yield gaps all the time does that mean if you look at the swiss national bank, the bank of england, the bank of japan, european central bank and the fed, does it mean the interest rate and economic environment in the u.s. despite all of this trade rhetoric, does it mean the u.s. is still the safe haven, the choice for people to go to? >> it will be on a relative basis, but that doesn't mean we're immune to what goes on we know how the world is so intertwined. we know what goes on in china will affect us in europe and everything so we're all in this together, particularly getting back to the bond markets where the german ten-year yield is highly influential on where u.s. yields go if the german ten-year yield goes from 40 basis points to 1%, i'm confident the u.s. ten-year
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will be above 3% >> also influential the move in the currency market. what's your year-end target for the euro >> the euro, i think, rallies to the end of the year as the ecb gets closer to ending their policy i'm calling 1.25 by the end of the year >> wow peter, thank you for joining us. >> thank you in corporate news, mdz mrs. butterworth and chef boyardee are teaming up will this deal happen? >> we'll see pinnacle foods has reportedly restarted talks to sell itself to larger rival conagra. sources say discussions between pinnacle and conagra fell apart last summer over price pinnacle has since come under pressure to pursue a possible
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sale in april janna partners disclosed a 9% stake in the company. packaging food companies have been facing stagnant sales as consumers switch from processed foods to healthier items look at the stock. shares of pinnacle rose 3% yesterday on news that conagra had approached the company today shares are off just slightly in early morning trading. back over to you >> thank you very much your big individual stock stories now include red has the. the company's second quarter outlook missed analyst estimates as it cited the strengthening u.s. dollar. it's happening companies citing a stronger currency reuters reporting that tesla plans to close a dozendozen sol installation plansin nine
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states the cuts affect facilities of the former solarcity which merged with tesla in 2016. disney says it is willing to divest more assets from 21st century fox in order to win regulatory approval for its proposed deal. in a regulatory filing late yesterday disney said those assets potentially include fox's regional sports networks disney raised its bid to $71 billion topping comcast's $65 billion offer. still ahead on the show, we're going global the best bets for your money overseas. first, it's decision day for opec oil ministers meeting now in vienna we're headed back live to opec's headquarters when orwi"wldde exchange" returns. charmin ultra soft!
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they're a perfect match. the new ipad and xfinity stream app. hey guys, i'm home! surprise! i got a puppy. add an ipad to select packages for just $5 a month for 24 months. upgrade online now. welcome back to "worldwide exchange." we are higher by triple digits on the dow 126 point gain s&p up by 12 perhaps today we will move to the upside oil, we are higher ahead of the opec decision. ice brent crude, $74.11. up 1.4%. wti crude up 1.25% >> it's decision day for opec. oil ministers are about to make a major announcement with regard to output.
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let's get back out to brian sullivan live at the opec meeting in vienna. you're still in a stairwell. >> yeah, but we've gone up we're up one flight. above us are the ministers here. the print side has gone up the broadcast side is waiting. we have steve sedgwick, our colleague here how long have you been here? >> all my life it feels like >> literally today >> 6:00 a.m. >> 6:00 a.m. it's after 11:00 a.m he's been in the stairwell since that time. people are backed up behind us this is the kind of global attention you have on this opec meeting. steve has been to many of these meetings here. he probably has a better color on how this compares to meetings of the past. a lot of global interest the meeting has been delayed what's the deal between saudi arabia and iran. will they be able to make a deal brent crude and wti moving higher the longer we don't get upstairs, the longer the market may get nervous that no deal will be reached. there's a lot of talk.
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some posturing from iran on whether or not they could just walk out of the meeting because according to opec they need everybody in that room to make the deal no iran, no deal we have patty here, doing some awesome reporting. hopefully in a few minutes we'll go up and get some time with the ministers. steve, you're going live on cnbc, are you not? >> you and i will tag team in there. i think you made the key point, this meeting has been delayed because of another meeting between iran and saudi arabia. what possibly could they have discussed this morning they had so many opportunities to discuss things. it will go to the wire >> how many meetings have you been to? >> 30? >> how does this compare >> this has been one of the longest waits in the morning for the preamble they have not even started about the communique yet, and what they say sometimes we wait hours and people have waited days for the decision out of opec
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in recent times this is one of the longest waits. >> steve makes an excellent point. i want to set the table here i know it's 5:00 in new york, here's the thing we're not going up for the decision we're going up to hopefully get some time with the ministers to see what they'll say and see if we can get clues, if anybody talks. some of these ministers may not say anything you will fire questions at them, and they'll sit there stone-faced. they may say nothing this is not the decision we'll go up, get some time, go back down, and then wait and wait and wait and hope a decision and a communique and announcement comes today still live in a stairwell. let's get that trending on twitter. >> one of the key things here as well, it's saudi and iran who have the bilaterals, saudi has to tell everyone else what they decided. if they have given ground to iran, what will the rest of the opec ministers say some people have been worried that saudi has taken over this
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meeting. are they making decisions on their own or with other opec members. try to get 14 people in a room with opposing ideas and get them to decide on anything, that's what they're trying to do. iran has a big beef with the united states and president trump walking away from that nuclear deal a lot of talk about what they want in that communique, maybe a rebuff of trump or the united states i'll get ready here, hopefully we'll be live inside that room for you soon back to you. >> brian sullivan, anticipation building ahead of that formal announcement from opec still ahead on "worldwide exchange," immigration front and center in washington today we're headed live to the nation's capital straight ahead. and dramatic footage and images out of texas as heavy rains trigger flash floods we have the latest on this story when "worldwide exchange" return me. today, we produce nearly 20 million cases a year. chubb has helped us grow
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you're looking at a live shot of our nation's capitol as the sun starts to rise of course the focus here in washington and the political side of things, immigration. it remains front and center. let's get to susan mcginness live in d.c. with the latest developments there >> lawmakers here are struggling to pass immigration reform one bill overwhelmingly failed
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yesterday. president trump blames democrats. >> reporter: the protests go on against president trump's immigration policy that is keeping families apart while the president reversed his policy and won't separate migrant children from parents crossing illegally into the u.s., he did not address the thousands of children already separated. on capitol hill republican lawmakers failed to pass immigration legislation. >> the bill is not passed. >> reporter: one bill overwhelmingly voted down, another moved to next week >> the president will even like the new bill better than this bill. >> reporter: but the president is already blaming democrats >> loopholes in our immigration laws all ported by extremist open-border democrats. it's a whole big con job in the meantime people are suffering. >> reporter: democrats say they want tighter borders, but not
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this way >> we don't think that we have to put children in cages to do it there is a better way. and the president is either not knowing, not caring, delusional and in denial about his own policies. >> reporter: as lawmakers debate and families wait, a new "time" magazine cover puts the family separation practice at the president's feet the president will deliver remarks on immigration this afternoon. he will be joined by angel families, they're people who lost loved ones to undocumented immigrants >> susan, thank you very much for that update. we'll follow that story closely. let's check on the other headlines. frances rivera has the latest. >> good morning. parts of the southwest and texas are recovering from massive flooding several people have been rescued from submerged vehicles and
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homes. texas governor greg abbott issuing a disaster declaration for six counties devastated by the storms almost a foot of rain has drenched the texas coast since tuesday. it's the worst flooding since hurricane harvey. outrage is building over the shooting of antwon rose in pittsburgh this week police were forced should e. to shut down an interstate for hours after demonstrators backed up traffic for miles. and tributes are pouring in for the late charles krauthammer. he touched readers and viewers while delivering some of the best political commentary. it earned him a pulitzer in the '80s it was his battle with intestinal cancer that he could not overcome he was 68 years old. >> frances, thank you. up next on "worldwide exchange," another roseanne reboot, but without roseanne the top trending stories are
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straight ahead. we're headed back to vienna as we await a big decision brian sullivan has gotten inside the room what to expect. what the disn eciois is coming up happy anniversary dinner, darlin'. can this much love be cleaned by a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dawn and grease is gone.
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decision day for opec. oil ministers about to make a major announcement, we're headed to vienna straight ahead. futures point to a higher open as the dow tries to break an eight-session losing streak.
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do you remember this >> the uk votes out of the european union, an historic day in great britain >> that was two years ago. we'll find out what's next for the uk and all of the european union. it's friday, june 22, 2018 you're watching "worldwide exchange" on cnbc. welcome back to "worldwide exchang exchange". i'm seema mody >> i'm dominic chu brian sullivan is in vienna. we'll hear from him in a moment. first let's check out what's happening on cnbc.com. landon dowdedy h edy has your mg headlines, or we'll do it ourselves. >> one story involves
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financials 35 of america's biggest banks got a clean bill of health and all passed the stress test next week the fed will decide whether to approve plans for buybacks and dividends somewhat of a surprise given the pressures financials have been put under. >> banks are so much healthier today than nine years ago. >> the official china daily newspaper publishing an editorial saying the u.s. is suffering from paranoid delusions when it comes to trade. the paper also calling u.s. protectionism self-defeating heightened rhetoric from both sides continues. >> editorial from the chinese government >> we also have some m&a, conagra reportedly approached pinnacle foods about a potential deal shares of both companies are flat in pre-market trade we have seen a lot of consolidation already in the
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sector >> all right you can see the premarket action, pinnacle foods just about flat same with conagra. let's get back out to brian sullivan there's been some movement i see a different setting for brian now. you have moved locations >> dom, we're up in the minister's room. khalid al falih is right there steve sedgwick is speaking with him. moments ago the iranian oil minister confirmed to cnbc that they are looking for some kind of statement about the united states' removal from the nuclear deal as part of any output agreement. iran has been opposed to increasing output because about 500,000 iranian barrels will be unavailable as of november because of new sanctions the iranian minister did confirm they are looking for some kind of communique that would rebuff president trump and/or the
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united states on that deal this is the energy minister for the uae, sitting next to mohamed barkindo, the secretary-general of opec. we'll get a question here in one second give us one second we'll see where they are on a deal this is the president of opec. mr. barkindo is the secretary-general of opec. we'll get a question in here.
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just a minute here we'll get a question in. >> united states, we are live on television do you believe we will get an output increase agreement today? >> i look forward to that. i think we've been through more difficult times when we made agreements back in the end of 2016 i think we are in an easier position to agree. we realize as a result of the meeting yesterday that there is an extra conformity of compliance over a million barrels. it was not done by choice. it was done by different forces for those producing countries, vn venezue venezuela and others, angola and others, and how we have to deal with this 1 million. we're not targeting a price, we're targeting a market
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stability. what we'll discuss today is collectively what is our response to that i think the spirit of opec is to keep the original agreement, the 1.8 agreement and we'll try our best to deal with this 1 million. >> so right now the deal is 1.2 million being taken off the market with extra 150 compliance, so 1.8 is being taken off the market are you looking to reduce the cut, if that makes sense by 1 million barrels per day? >> i think the issue is that 1.2 or 1.8 for the overall group is -- some of the countries are overcomplying because of reduction. if you ask some countries to bring back their production, they cannot. so some countries can't. some countries can that's what we'll discuss. it needs to be fair. it needs to be unanimous
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decision and that's what we are hoping for in the closed session. >> the iranian minister said they are looking for a statement regarding the united states and the removal from the nuclear sanctions deal is opec -- have you agreed to put a statement in the statement or the communique denouncing the united states' removal from the iranian nuclear deal >> i think opec being a nonpolitical organization, that is always going to be the case we are not intending to politicize the organization. and we will continue doing that. we are not going to get into the positioning of the political position for the organization. >> mr. kind do barkindo you agr? it's a bit difficult the deal is a 1.2 million a barrel a day cut that was struck in 2016.
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some members have overdone it. so currently 1.8 million barrels are currently off the market so it sounds like what the uae's energy minister and the president of opec is saying, they're shuffling us out of here, as opposed to calling this an output increase they'll reduce the cut, guys f that makes sense. if you're cutting and you cut less, that's a de facto increase you heard him mention 1 million barrels a day. effectively that would add a net 500,000 barrels a day to the market by the end of the year. 500,000 barrel also come off from iran. it's a fluid circumstance. i'll put together more on "squawk box. i will get out of the room before they frog march me out of here more live in a bit >> brian sullivan, thanks for that report.
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>> some interesting comments there, saying opec is not a political organization, they mae not look to make a statement about the united states and the iran nuclear deal. >> that's it from the opec side of things. let's check in on the market action elsewhere this hour the futures picture for this stock market in the u.s. is positive for now the dow jones would open up by 125 points the s&p up by 13 the nasdaq up by 27 points let's talk about the currency side of things it could be driving action in the oil market now we see some dollar weakness versus the euro. 1.1667 for the dollar/euro 110.12 for the dollar/yen. >> joining us is simon, and you focus on currencies, was we're seeing out of opec, the decision making getting the oil output
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increase, how does that affect things in your world >> assuming there is going to be a deal of some kind, which is still an issue because we have to talk about that statement, we still got to say okay, from a direct perspective, from the negotiate sieve side it will hit those oil producers. it will be negative for the ruble, canadian dollar the flip side is you can make a strong argument that it will be positive for high oil importers. turkey actually. those are places where currency has been under consistent pressure kun k one key issue is the higher oil imporlt imports. it is also important for turkey because it takes inflationary pressures out of the system globally, that takes pressure off u.s. yields. that's a slightly weaker dollar. >> a lot of people have been talking about how the correlation between the dollar and oil has been breaking down
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why do you think that is >> i always felt over the course of the last 15 years, it was almost anti-dollar going back to 2007, 2008, that's the way it played out. why it's changed is largely due to what the saudis have been doing. since 2015 they have been the far more active player in the game i think right now they will continue to be that. >> we talk about the commodity currencies, the canadian dollar, norwegian krona, russian ruble, those particular currencies, mostly they are developed, some are emerging market currencies, does that play into the overall theme that emerging markets should see a trend of weakness versus the u.s. dollar we've seen that dollar strength play out does that continue over the course of this year and into the next >> i'm not convinced one of the stories that's driven the idea that em will be under
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pressure is the idea of higher u.s. yields. okay we talk about the short trend, that's happening but when we talk about five-year, ten-year yields, there's barely movement taking place. so if you actually believe that we probably are getting into the upper end of the cycle, at least on longer term yields, they allow the dollar to weaken a bit. >> you mentioned turkey. the turkish lira the worst global performing currency >> for good reason >> but this election coming up this sunday, would you be a buyer or seller of the currency ahead of it? >> i think i would be a buyer of volatility in that market. >> if erdogan wins re-election, what happens >> whatever happens erdogan is likely to come out of this being the winner he might have to go to a second round of presidential elections, but he will come out of that it's a question of how strong his position is. i think i would be a buyer
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simply because i do think you will end up with some kind of pullback in the dollar the oil story will help them out. >> can we talk about -- let's put a fine point on this looking at your coverage world, where is the most profound opportunity now in the currency space? >> okay. there are many things that are easy to pick on. easy to be rude about europe and rude about the uk, but who doesn't know those stories already? who doesn't know about the politics in italy and the politics in the uk right now the most consensus trade out there is the dollar is going higher the reality is that we've thrown so many things at some other currencies, the dollar has not made ground. we're still here at 116.5 against the euro despite the fact we have a crisis brewing in italy at some point later. despite the fact we have arrests taking place in germany.
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we've thrown that against it and it's still here. that tells me there's something fundamentally flawed in our arguments about the dollar >> don't take it to the bank that dollar strength thank you. >> thank you time for the top trending stories. landon dowdy is back with us good morning >> good morning. after canceling the roseanne revival over racist tweets from the star, abc will air a conner family sitcom this fall without roseanne barr. barr says she agreed to the settlement to save the jobs of more than 200 cast and crew members. >> when i first heard this, i was like wait? >> it was one of their most le y highly rated shows before. >> it's like "full house." >> first lady melania trump is being criticized for a jacket
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she wore yesterday on her way to visit shelters housing immigrant children separated from their parents. the jacket read "i really don't care, do you?" the jacket was a departure from the first lady who typically wears higher priced clothing the first lady's choice was blasted on social media. >> it's still trending on twitter. >> it's the front page of the "new york post." the "new york post" is a fox-owned more conservative daily newspaper in new york. but it is the front page of it. >> she's notoriously private, usually her wardrobe choices are intentional. this is sending a message. fashion has been her leading role >> the timing of that slogan landon, thank you. >> thanks. coming up, we're still on
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opec decision watch. headlines are starting to come out. we're headed back to vienna live straight ahead. first we're firing up the "worldwide exchange" time exchange wilfred frost will be joining us "worldwide exchange" will be right back
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the uk votes out of the european union
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>> a state of shock. the pound plunging stocks slammed, bond yields dropping, gold soares. centr we have the global market reaction covered from start to finis finish >> hard to believe that was nearly two years ago and it played out here on "worldwide exchange." wilfred frost was on the front lines of coverage and joins us now. >> i, too can't believe it was two years ago. tomorrow, as you said, marks two years since the uk voted to leave the european union since the 23rd of june 2016, there's been two stand-out dates. the 29th of march, 2017, when theresa may invoked article 50 that set the departure date for two years later, 29th of march 2019, nine months from now and this past wednesday when theresa may's eu withdrawal bill passed all legislative hurdles in the
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uk afterwards may said it showed people in the uk and the eu that the elected representatives in this country are getting on with the job and delivering the will of the british people. perhaps, but the shape of the deal is not settled, so the long-term effect on the uk and eu's economy remains uncertain what is clear is that the economy slowed but it is still growing and not collapsed. the ftse 100 and ftse 250 stand well above their june 2016 levels and the british pound recovered a large amount of its post brexit falls. the next key events are th summit on the 21st of june still a lot left to do, but just nine months to go. guys >> wilfred, take us through this
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there are so many moving parts, so many votes, hard borders, soft borders, ireland. this eu bill, this withdrawal bill, it passes. does that now mean that they are fully on board with this whole leaving idea does this mean brexit will happen imminently? >> does it mean it definitively happens now? no does it increase the chances yes. and what it really has done is it has made sure theresa may will stay in her post until those divorce agreements, settlements are negotiated probably in october what she's done once again is kick the can down the road and delay the inevitable head off between remainers and brexiteers in her party. and there will be a clash. with customs borders and northern ireland issues that will crystalize whether this deal is appealing enough to remainers and brexiteers
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that will likely happen in october. >> clearly still a developing story. thank you, wilfred frost. still ahead on "worldwide exchange," we're going global. the best bets to make overseas tim seymour is with us this morning live. and later we're headed back to vienna as the world aits waa big opec output decision we'll be right back or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain-health supplement in drug stores nationwide. prevagen. the name to remember. the kayak explore tool shows you the places you can fly on your budget. so you can be confident you're getting the most bang for your buck.
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the dow pointing to a triple digit pop at the open. let's bring in tim seymour, a cnbc contributor good morning to you. every day has been a different story. really the trade rhetoric has been front and center for investors. >> i don't think it will change. while the unpredictability of the situation is ever fluid, i do think that the reality of the impact now, if you're going to be looking at second and third quarter gdp both here and in china, the impact on growth now is still minimal
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>> the impact has been much more profound internationally asian stocks have been underperforming u.s. stocks in 2018 the shanghai is down 20% from the recent high. is that all due to trade >> looking at the local chinese markets as a read on the chinese economy and the impact of this trade dispute, no, i think we were seeing weakness before that i do think if you look at investor fund flows, the reality is especially for u.s. investors that are playing globally, what you see at a time like this is people become tfs idefensive. >> i will tell you what, back in my trading days, doesn't matter if it was currencies, stocks, we've seen upd days tha s thas ,
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turn into down days. what does it feel like now does this feel like a situation where we want to sell on strength >> it feels like people are shooting first, asking questions later. that's what you tend to get at times like this. one of the worst trades you could have been in over the past several months, i want to be in emerging and head that with small cap u.s., which are highly correlated that's a crushing trade. the reality is the fundamentals around -- you have pmis this morning that were a bit better, middle of the range, not terrible i think the global economy is in a good place but the fundamentals in the u.s. on the macro level are still better emerging markets have fell 13%, 14% since april. that's a big move. may, june, they can be bad months, they've been awful months >> this opec decision, would that change your view on emerging market stocks
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>> opec has done a great job, done a good job in reestablishing credibility and solidarity within opec and non-opec i think they're refinding where they are in terms of compliance. getting back to 125% compliance is fine. the em commodities trade should have had back drop for doing better here. i don't think commodities are a part of the story here >> let's get back out to brian sullivan live at the opec meeting in vienna. what have you learned? >> thank you very much let's wrap it up quickly with that craziness upstairs. two pieces of news coming out of that the president of the uae saying they are getting close to a million barrel per day increase. 1 million barrels per day. not everybody can increase output a lot of countries are at max production already we know what's happening in venezuela, whether or not we get a million is a different story number two, the iranian oil
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minister confirming to cnbc directly to me that he is looking for some kind of an anti-u.s. or statement from opec denouncing our removal from the nuclear deal there's been speculation that iranians -- iran's tough position is not just about the number of barrels of oil, but it's political, they want something in the statement saying they denounce or reject the removal from the united states from that nuclear deal. just proof that there's more here at work than just the number of barrels or money it's also about geopolitics, iran taking a tough stance we are still awaiting that decision it may come in an hour or six hours. back to you guys >> a highly fluid situation. >> we lock forwaok forward to tt continuing coverage. a big day, a lot of stuff happening. that does it for us on
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"worldwide exchange. "squawk box" is coming up next a lot of stuff hpengapni stay tuned all day >> dow up 117.
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good morning decision day for opec. oil ministers meeting right now in vienna. we'll take you there live straight ahead. stocks are on the move futures indicating a higher open as the dow tries to snap an eight-day losing streak. and a deal that could pair chef boyardee with mrs. butterworth. don't get the wrong idea it's pride, june 22, 2018, "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box"
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good morning welcome to "squawk box" on cnbc. we're live from the nasdaq market site in times square. happy friday end of the week is here. i'm becky quick along with joe kernen and andrew ross sorkin. looking at u.s. equity futures, yesterday was another down day for the dow. a decline of about 200 points yesterday. that brings us to eight losing days in a row. if you get to nine days today, that would be the first time in 40 years that that has happened, all the way back to february of 1978 >> yeah. >> you remember. >> no. yesterday we were up sharply >> one day we saw a few green arri arrows >> but it di

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