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tv   Worldwide Exchange  CNBC  July 16, 2018 5:00am-6:00am EDT

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woel come worldwide exchange a live look at helsinki where president trump is about to have a face-to-face meeting with russian president vladimir putin. we're live on the ground in helsinki with full coverage. worldwide exchange begins right now. good morning welcome to worldwide exchange. i'm contessa brewer. i'm seema mody here's a quick check on markets
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ahead of the meeting futures right now pointing to a higher open. up by 50 the s&p 500 is up around 4 points our big story this morning president trump is about to kick off the face-to-face meeting with russian president vladimir putin. let's go live to helsinki ahead of that meeting. what's at stake for the united states and what's at stake for russia >> good morning, contessa. enormous stakes for both sides as it meeting is about to begin in a couple of hours' time the events have started here the president this morning meeting with the president of finland for a breakfast session here the president of the united states talking about his meeting with nato calling it a great success last week even the president suggested that the nato leaders agreed to up their spending the nato leaders disputing that. the president coming off controversy there.
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this morning, the president has been tweeting and said our relationship with russia has never been worse thanks to many years of u.s. foolishness and stupidity. now the rigged witch hunt. that's a reference to the mueller investigation where we saw late friday night the deputy attorney general of the united states dropped indictments for 12 russians for their involvement in a scheme to interfere with the u.s. presidential election in 2016. those are the shadows that loom over this summit today we saw the president over the weekend giving an interview to cbs news in which it was asked who america's greatest foe is. here's what the president had to say. >> well, i think we have a lot of foes. i think the european union is a foe what they do to us in trade. you wouldn't think of the european union russia is a foe in certain respects, china is a foe economically, certainly. they're a foe. that doesn't mean they're bad or anything it means that they're
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competitors. >> so now contessa, what's likely to come out of this at the end of the day is really anybody's guess. no real official agenda in terms of items that will be officially discussed today. there could be discussion of crimea, missile defense and missile treaty in the cards here all the speculation will be on the one-on-one session with vladimir putin in which we're told could extend up to about 90 minutes between the two world leaders one-on-one they're going to have a press conference later on this afternoon here in helsinki we'll see if we get a read-out about what was discussed and agreed to. a lot of drama heading into a big day in helsinki. >> seema here, eamon there does seem to be mounting anxiety that the two will cozy up and brush away any disagreements and how that could give vladimir putin the upper hand today in the meeting.
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how would that affect trump's base if that goes like that? >> his base politically. i think his base will support him almost no matter what he does there's a stance among the president's base that he's doing the right thing by meeting with putin and dealing face to face with a world leader. they trust his negotiating skills when we were at the nato summit, we talked to folks there their biggest worry, worst case scenario for the summit is appeasement. that the president of the united states would giveaway too much to putin and not get anything in return there's a lot of anxiety within nato, within the european union that the president is going to kbif something to vladimir putin. particularly with the rhetoric that we saw over the weekend suggesting that the eu is the first on the list of foes of the united states of america. >> in the meantime, it seems like expectations have been intentionally lowered for what would be concrete out comes from this meeting face to face. we saw secretary of state pompeo tweeting out that he's heading
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in for talks with the finnish counter parts and russian counterparts will there be diplomatic action outside of what's happening with vladimir putin and donald trump? >> sure. on a staff level, there will be a flurry of meetings between the two sides and they might put out announcements. we don't know if there will be a joint communique released or what deliverables might be at wul. from the president's perspective, we views this as a win simply to have this moment of stage craft, that he's negotiating face to face with putin. deeply skeptical of the russia investigation in the united states calls it a witch hunt. suggests that he's being unfairly prosecuted or investigated by u.s. law enforcement. there's real frustration there gives him opportunity to show that he's doing what people he-elected him to do. >> looks like a beautiful day
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there in helsinki. >> fabulous here yes. let's talk to the economic policy analyst at the american enterprise institute and cnbc contributor. what does it look like, jim, if the president comes out of this successfully what does the u.s. get what does russia get >> i'm not -- i'm not sure what this actually means because there's absolutely no agenda going into this. so we're sort of a do no harm situation. listen, something will come of this by no other means than you have two leaders sitting down who will take the measure of each other maybe that will go well for the united states. maybe it won't i think in the 1961 summit between president kennedy and crews chief, ended up not going well he saw kennedy as a weak leader. following that, you have the cuban missile crisis and the berlin wall. sometimes the meetings can go very badly, especially if
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they're not structured, which this one isn't. >> you have trump going in, feeling very confidentof his own negotiating skills his ability to make a deal he's been on the job for 1 months putin o -- 18 months, putin on the job for 18 years >> putin probably feels pretty confident. it's been the goal of the russians for decades to disrupt the western alliance right now, i wouldn't say it's disrupted. but it doesn't look great. putin is looking for sort of validation of his world view or his world goal, which is really for russia to be regarded even though their economy and population don't really merit it anymore. they regard it as a world power and to have a sphere of influence and that the president is coming there, especially after what's happened with the election meddling. it's a validation of the russian goals. >> jimmy, don't forget, he's a trained kgb intelligence
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officer. his ability to outsmart president trump was one of the main reasons vice chairman urged president trump to call off this one-on-one meeting it's still happening is that a concern for washington >> of course it's a kefrconcern. not only to have an inexperienced president, like president kennedy was. you have someoneinexperienced, doesn't brief particularly well and has a high opinion of his hone abilities going into this summit i would think that vladimir putin from his perspective is almost in an ideal situation >> what do you think at this point, jim, is on the line as europe sits back after a rather rocky nato summit and meetings in the uk, what will they be watching for in terms of an outcome? >> i think we'll be watching for the tone of this that the president took a really combative tone with what are supposed to be his allies and if -- if we don't see a
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combative tone with putin, especially after you have the indictment of these 12 russian officers, if even that does not prompt the president, really, a harsh tone with putin, then they begin to think that the president sort of acquiescing to this russian view that what matters is these great powers of russia, china and america with europe really off to the side. >> james, from the american enterprise institute good to see you today. >> thanks. following a big corporate story. "the new york times" reports goldman sachs expected to make david solomon the next ceo that announcement could come as early as today solomon is currently gold man's president would take over for lloyd blankfein. shares of goldman sachs are little changed in free market trade. we're glg to hear from a pair of
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gold man peers, michael corebat. will sit down at 3:00 p.m. eastern on closing bell. that will be followed by an exclusive interview with bank of america ceo brian moynihan at 6:00 p.m. on mad money, seema. deutsche bank forecasting better than expected preliminary second quarter results the bank is expecting second quarter revenue to come in at $7.7 billion that stops expectations of $7.4 billion. shares are moving higher nearly by 7% lets bring in allen this morning. >> thanks for having me. >> there was a note from bank of america who said that. there are some playbooks that won't work and she thinks financials are a good sector to look at. not only undervalued but less susceptible to the trade fears your thoughts? >> i definitely think that's the
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case the real benefit you see as the financials have come back from the 2008, 2009, profitability is better, balance sheets in a better position. despite the rhetoric going on and all the noise in the markets, there's really great opportunity for the financial to be more profitable and better serve their clients. >> where are the growth opportunities? >> we look at it on a regional basis in the united states and a global basis on a global basis, when you look at the emerging markets, there may be more volatility but you see 5% gdp in the emerging world if you can target that or within the united states when you start to think about california, the southeast, those are really the opportunities set for most regional banks. >> speaking of emerging markets, you talk about the growth targets increasing for the second half of this year there's a lot of political uncertainty, especially in india. reelection of mode i coming up in 2019 and then in brazil, i mean, it's a big cabinet
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reshuffle ongoing. does that scare you as an investor >> it gives us pause we think about what could that mean for the overall economic outlook for those countries. when you look at their pmis and they're trending higher. you think about where are we going to grow over the next 10 to 15 years. short-term, it could be problematic. over the longer term, population growth, we look at what they're able to generate via per capita income, we see it as an opportunity despite the short-term volatility as trade rhetoric heats up, concerns about the political climate. that's always in the background. we think you have to look past that right now. >> that seems to be what the market is doing. we should point out last week, the s&p 500 gave 1.5% despite everything happening from nato, the etpic meeting between president trump and be prime minister may is it right for markets to be so disconnected from the international headlines? >> we think that the market are
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take tg in stride and looking at what earnings are going to be. you look at the united states and earnings will be $160 a share, the s&p 500 17 times earnings, doesn't look cheap but doesn't look overvalued on a global basis, developed economies trading about 12 times, emerging markets about 11 times. we think that the markets certainly are going to be more volatile fundamentally, the earnings look good when you hear the comments and the rhetoric, we think there's more noise to it, more fluff to it the market is pivoting back to what's happening on the earnings front and are they able to grow. >> do your projects affecting so much on the street level, i don't mean ball street, main street -- wall street, main street as well soybean farmers, when you have the big trade issues, it affects what people can spend at the mom and pop shop level how do you factor that into where you see growth in the future and how you plan for volatility. >> and on sentiment too.
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>> the greatest concern as it relates to inflation, to your point about if you're in main street, what are you paying for gas, the next box of cereal. where are we going to make up that extra supply. we heard the comments from iran over the weekend the comments as relates to this summit and with russia, where is the oil going to come from there's only so much we can do as a domestic producer we're seeing shale pick up fundamentally, will it cost more at the grocery store, at the pump that is disconcerting from a consumer sentiment standpoint. haven't seen it yet. that's what we're watching over the next six to 12 months. do you see that pivot and inflation picking up can earnings not catch up with that as relates to costs >> alan mcknight, regions wealth manage: thank you for joining us. the corporate stories. landon dowdy joins us with those. >> the individual stock stories
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include zte. shares jump ing 16%. lifted a ban on -- violating u.s. sanctions as part of that deal, they replaced the top executives and paid a one billion dollar fine. shares of invidia are up u.s. court granted a preliminary injunction on friday blocking the doctors ready labs from sell a generic version of its top selling opioid addiction treatment. that drug a account for 80% of the company's revenue. renault says sales rose 10% to record high in the first half of the year. results from helped by a rebound in russia and south america as well as solid demand at home and europe back to you. >> landon, thank you we are just getting started here on worldwide exchange still ahead, the high stakes meeting between president trump and russian president vladimir
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putin. full team coverage from helsinki straight ahead. first, deal making goes sky high one of the biggest air shows is under way in the uk. phil la bow is there live. what's on tap, phil? >> we're at the farnborough air show there have been big deals announced and more on the way. when we come back, we'll talk to the ceo of air lease corp. in the past he said maybe it's time for the industry to take a pause. guess what he's not saying that anymore we'll talk about that when worldwide exchange returns so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life. with tough food, your dentures may slip and fall.
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dow is up 45 nasdaq indicated higher by 17 points this after the market pushed higher last week remarkable given all the noise from nato. all closing at record highs last week treasury yields are also in favor last week. the ten-year note yielding 2.84%. brexit, trade wars and deal making all front and center at this year's farnborough international air show phil lebeau is there live with the first cnbc interview with the ceo of air lease corp. phil >> reporter: thank you very much let me bring in john pflueger, the ceo of air lease
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you have more than 300 aircraft being flown around the world we talk about this every year. >> yeah. >> there seems to be no slowdown in demand for quarters traditionally, it's a cyclical business you've always said we're due for a slowdown. >> i have said that for the last couple of years. the passenger growth continues unabated 6.8% rbk growth. as long as the passengers keep coming and that growth rate is still there, the demand for aircraft remains constant. although i've said it's going to taper off and i've expected it, still expect it, the truth of the matter is, the demand is there, people are coming to us for more aircraft. airlines need more aircraft. >> is there a cans that the trade tensions, we've heard this from some of the airline ceos. it starts to worry people.
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are you worried about that >> we're watching it i don't foreso -- i see temporary slowdowns in the trait talks between various countries. whether or not it's boeing or airbus certainly remains to be seen in the bigger picture, i don't think it impacts the growth in international global travel. >> you've got more than 300 aircraft already flying. another 350 that you've ordered. >> yes. >> you'll probably make more orders the next couple of days what are you hearing from the airlines in terms of we need them now, we can't wait? >> that's our challenge. the airlines do need them now. we're placed out for 2019 almost for 2020 and well into 2021. our ask for the manufacturers is accelerate forward if you possibly can
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they're also overquoted. that demand and that timing of demand remains consistent throughout the world. >> one last question you see these stories about smaller seats, more seats packed in planes. smaller lavatories in planes do the airlines hear this from customers, that they don't like the smaller seats and these packed planes? >> the airlines very much do the customer pays the ticket price. low ticket prices sells airline seats and what fuels is demand ticket price is the most important. to get the lowest ticket price, you got to cram in the most amount of people on the airplane. >> john pflueger, ceo of air lease. i asked him if they have an order for today. he said i can't talk now check in later >> that's a good tease thank you, phil. still ahead on worldwide exchange, the big world cup win.
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french fans taking to the streets to celebrate the win over croatia we'll bring you that and the other top trending stories. plus, heading back to helsinki as president trump gets ready to go face to face with russian president putin. stick around to find the best flight for me. so i'm more than confident. how's your family? kayak. search one and done. man: are unpredictable crohn's symptoms following you everywhere? it's time to take back control with stelara®. for adults with moderately to severely active crohn's disease, stelara® works differently. studies showed relief and remission
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the s&p 500 futures up by 2.50 46 points higher on the dow jones and the nasdaq up by 15.25. frances rivera has more news for us. a deadly wildfire is raging near yosemite national park. that exploded in size to 4300 acres forcing authorities to evacuate nearby neighborhoods. heavy fire equipment operator died on saturday battling the flames. a new island formed out of vot volcanic eruption on the big island officials are talking about the creation of viewing locations surfacing offshore it's about 20 to 30 feet wide right now. the island was first discovered which field crew during a routine flight the fairfax county police is sending a strong message on how speeding can cost you. look at this the department shared this photo
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of a mclaren wrapped around. it was totaled that was one day after it was purchased. it had a price tag of over $300,000 the car was going too fast down the street contessa, seema, back to you >> ouch. >> you know who is really upset about that the insurance agent. >> exactly. >> thank you, frances. still ahead here on worldwide exchange, a high stakes sitdown the world is awaiting president trump's meeting with russian president vladimir putin we'll be live in helsinki with the latest monday market rundown. wall street kicking off a new week we break down ureeyo wk ahead when worldwide exchange comes right back a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom?
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what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley
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the countdown is on. president trump about to go face to face with russian president vladimir putin full coverage from helsinki straight ahead. goldman sachs ready to nam its next ceo the announcement could come as soon as today. we have full details ahead deal making goes sky high as one of the world's biggest air shows gets under way in the uk we're live with all of the money headlines. it's monday, july 16th, 2018 worldwide exchange on cnbc begins right now ♪
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>> half past the hour. welcome back i'm contessa brewer. >> definitely your favorite song. >> i like it. >> i'm seema mody, guys. brian saul sul van ullivan is oy president trump is about to kick off a face-to-face meeting with russian president vladimir putin. first, let's get to landon dowdy with a check on this morning's top headlines. landon >> seema, among the stories leading, deutsche bank better than preliminary q2 results. they're expecting second quarters revenues at $7.7 billion. that tops $7.4 billion shares are moving higher in german trade this morning. china posting the second quarter gdp. growth at 6.7% meeting expectations this is slightly lower than the 6.8% in the first quarter. the big day is here. amazon prime day the highly anticipated shopping day officially kicking off this
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afternoon at 3:00 eastern time it will continue until tomorrow night. making it the longest and most globally accessible prime day so far. contessa, no shopping during the commercial break. >> others will try to give amazon a run for its money. >> exactly landon, thank you. president trump about to kick off a face-to-face meeting with russian president vladimir putin. it is loaded with speculation, anticipation we're live in helsinki finland where it takes place we're expecting to see the president leaving for the presidential palace in less than half an hour eamon what's on the line here? >> yeah, that's right contessa the events of the day have fully begun in helsinki. the president began with a breakfast meeting with the president of finland it's a traditional gesture to thank the host country he talked about nato among other topics at that breakfast here's the tweet dominating the
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morning today on all the news coverage the president tweeting out this. he said our relationship with russia has never been worse. thanks to many years of u.s. foolishness and stupidity. and now the rigged witch hunt. so the president of the united states blaming previous u.s. leaders for the terrible relations as he calls them between the united states and russia not blaming the russians and not overtly criticizing the russians in the indictment of the gru in in washington. a lot of speculation on what message the president is sending to putin a lot of people reading between the lines. the russian foreign ministry has liked the tweet in which the president blamed previous american presidents for the bad relations. both sides here hoping for something of a clean start the two men have met before in person this will be their first formal sitdown face to face with no other items on the agenda.
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not at the g-20, not in singapore, not in the other places around the world. this will be april fascinating session. we're told, guys, putin is running about 45 minutes late. so we should expect things to be pushed back perhaps a little bit. the schedule here a little fluid through the rest of the morning. >> president trump gets a lot of flack for warming up to russia in some respects, the trump administration has taken steps to respond to russia, close the russian consulate in san francisco. expelling russian diplomats. selling weapons to ukraine against russian-backed forces. that was a move the obama administration was against what else could be on the table in today's meeting >> well, that's right. particularly, those weapons to ukraine are a flash point for vladimir putin he didn't like that. the trump administration went ahead with this anyway the trump white house will argue they've been tough on russia in terms of the concrete actions
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they've taken, even though his rhetoric says he wants friendly relations. there's no formal set agenda here for this meeting which some are calling a meeting, some a summit president trump refers to it as a summit we do expect probably ukraine, probably crimea, possibly syria to be on the agenda. also, nuclear weapons, whether or not there's any kind of a new start treaty or other treaty that could be discussed between the two leaders. we have no sense of what the deliverables are going to be when we see that press conference this afternoon, you can be sure -- they're expected to spend an hour and a half behind closed doors. that's the total amount of time they have allotted >> thanks for reporting live for us from helsinki. we're following a big corporate story. goldman sachs is expected to name david solomon as the next ceo. that announcement could come as early as today solomon is currently gold man's
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president. he would take over for lloyd flank fine blankfein would probably stay on for an interim period. joining us on the line is wilfred frost. what are you learning? >> contessa, yes interesting story and congrats to kate kelly for the scoop. i think we had expected this transition happened at some point this year. but probably late this year. so this midsummer transition sends them a bit of a surprise when i interviewed log back in april, he said there were a few things to learn before taking over interestingly, sources close to david solomon said to me that wasn't so much about learning the different parts of the business, him having been an investment banker, but more about learning the pipes of the business don't forget, harvey schwartz was cfo. that financial control of the
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business hasn't been something david as done. this timing means that lloyd and the board thinks that david has done that and he's totally ready to take over it's not clear what prompted gold man to formalize things this particular moment but that would be my take perhaps on why it would be hang now. what does it mean for the future of the bank? of course, it's thought already that david is heavily involved in all of the -- the last couple of years, including the bank doing more lending that would be one of the top questions to david once he fully has control, if he intends to continue that relatively new strategy for goldman sachs it will be interesting if they make other promotions at the same time, who will fill david's shoes. an investment banker like he is or a trader or someone like steven cher who spearheaded a lot of consumer lending.
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that will give a hint to the priorities he would want to focus on moving forward. guys >> wilfred, thank you so much. by the way, we're going to hear from a pair of gold man's peers later today on cnbc. micha michael corbat will sit down with us. and followed by brian moynihan interview tonight. it's a busy week ahead for the u.s. market with several economic reports and earnings on the economic front june's retail sales are out today. tomorrow, industrial production and later this week, housing starts chief u.s. can economist at morgan joins us now. >> good morning. >> the treasury market was in favor last week despite the equity market moving higher. treasury did a bit as well it's now flattened the most since august of 2007
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what does that mean to you and investors? >> matt horn back our global head of rate strategy thinks there's more flattening to come. it will be very, very flat by the time there's a third rate hike as economists, i take that to heart. because we look at what is the yield curve, what does an inverted yield curve mean? the fed has been talking a good game around the consensus where it doesn't point to an economic slowdown or signal recession i believe that when push comes to shove later this year, they're going into that december meeting and trade continues to pose risk and the yield curve is flat to inverted by then, that they are going to take a pass on hiking rates at that meeting i do think that they won't want to invert the field curve. >> do you think when fed chairman powell sits down on capitol hill tomorrow, this is likely to be one of the big innings that lawmakers want to hear from him about, about the
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risk of inflation and the flattening yield curve what's in store. not for the end of 2018 but for 2019 >> yes, i think he will get asked about the shape of the yield curve. i think more on their minds will be trade remember these -- q and a after his prepared remarks, where he really gets into the meat of the things a lot of the questions are for political posturing. they don't necessarily get.particular questions as economists or investors. there would be a lot of talk about how much is harming economy. there will be talk about the shape of the yield banking will be chewing on the ear of the senators to ask questions about that i think he'll get a host of questions. but if i look at the monetary report that was released on friday, i wouldn't expect many surprises. also, because he spoke recently going into this meeting. we sort of know his views on
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everything no new data since then i think he'll continue to walk a fine line that trade policy a a greater risk today we don't know how to build it into our numbers. >> that's an interesting point despite the trajectory in the market, it slipped in july bigger than expected drop and a lot of economists are attribu attributing it to the trade tensions. >> a lot have been in the upper income group we slice and dice it when we get the numbers or by voter preference you see that democrats, confidence is not very high. republicans' confidence is very high for the upper income groups it tends to ep and flow or with market volatility. of course, they're the more affluent group that tends to read the news and watch the news and knows that trade can affect their portfolios when we see bumps recently in consumer confidence downward, it tends to be concentrated in the
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upper income group. >> certainly something to watch. ellen vintner of morgan stanley. time for the top trending stories. landon dowdy joins us again with thosement. >> sports, of course, taking center stage france celebrating a 4-2 world cup win over croatia look at these images out of paris. the city of love lit up in blue, white and red. this was a huge thing for them. >> i remember the last time it happened i had a sense of how big football fever was they beat croatia. come on -- >> i think it would have been a sweet erwin if croatia won the first world cup win for years. speaking of showing love, this is a good story it's a love story. she said yes taking to social media with a pre-show meet and greet moment that has gone completely viral
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swift posting these pictures of a fan when they arrived at the meet and greet boyfriend explained to swift that he and his girlfriend first met at her red tour five years ago and got down on one knee and shocking everyone in the room posting these pictures to instagram along with the #third wheel. the picture has over 2 million likes. >> wait a minute do you really think she's surprised or a fantastic actress. how did they get that close to her? >> it's a meet and greet they do it before shows. >> i'm skeptical >> okay. >> just saying. >> don't be skeptical. it's love. at the box office. hotel transylvania topping the competition. according to com score, the franchise checking in with $44.1 million in domestic ticket sales during the opening weekend >> i mean, it's 95 degrees outside.
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who is going to the movie theater? >> everybody. >> families. >> we're done with the pool. we're done with the beach. let's go in. mommy needs a nap for an hour and a half >> there you go. >> thanks, landon. thanks, guys. still to come, taking to the skies. the uk's biggest aviation trade show is officially under way we're live on the ground with this year's money headlines ahead. we're following the latest out of helsinki. president trump preparing to sit down one-on-one, mano y mano with vladimir putin. we'll be right back.
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fixodent and forget it. this is the week do not miss the eighth delivering alpha conference happening on wednesday in new york city. high-profile speakers include larry kudlow billionaire investor mark lazry and more if you'd like more information, head to delivering we're starting to get big headlines out of this year's farnborough air show in the united kingdom let's get to phil lebeau who has been sitting down with some of the big names in the air owe space industry phil >> seema, a lot of deals being announced. boeing announced a $3.5 billion order for 37 -- this on top of other orders announced oregon will be announced today. here's a sense of what we're seeing at the farnborough
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international air show we're expecting stronger demand and more orders than people initially expected a pretty strong order book at the show kicked off potentially by airbus and airasia announcing a mega deal that's not been announced but widely expected. on top of that boeing announcing that it has locked down an order with dhl express for $4.7 billion. that's for a number of triple 7 freighters delivered a few minutes ago. we talked with dennis muilenburg, the chairman and ceo of boeing and asked him if the trade tension, particularly between the u.s. and china and between u.s. and europe, another huge market for boeing is potentially going to be impacting business here's what he had to say. >> we are concerned. it's clear that the aerospace marketplace thrives on free and open trade around the world. we're concerned about some of the talk of tariffs and trade restrictions
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we're hopeful we'll find alternative solutions. we know that aerospace is good for economies around the world >> meanwhile, ge aviation is expecting a large show and for them, and a chance to talk with david joyce, the ceo of ge aviation, i asked them if the reconstituted, general electric, the aviation division is really the key to that new general electric going forward, if it will be hamstrung, if you will, in terms of making deals he said not at all. >> part of their ge 2.0 if you will, is to unlock the capability of a company like ge aviation to make the investments. if i had a good deal, i could call john and talk to the board and do what we need to do to make sure we're competitive. >> just a little bit of what we're hearing from some of the ceos here in farnborough guys, we hate the term super
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cycle. especially if you talk with jim cramer, he'll say don't use that term in any business but the aviation industry typically boom and buck, it noticing an extended length of growth here. there's not a downturn in the foreseeable future. >> super cycle, got it phil lebeau, more details as they come through at that air show. >> we could change it to big wheel. >> we could. the countdown is on. president trump about to kick off a sitdown with russian president vladimir putin putin is about to arrive in helsinki this is a shot of the airport. we'll tell you what to watch out for whenorwi ehae rerns.dexcng
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vladimir putin touching down at any moment then he will travel to the presidential palace to meet with donald trump a lot on the line in this high stakes meeting nick barnes is a professor at harvard kennedy school the former -- former u.s. ambassador to nato and cnbc contribut contributor. good to see you. when we're talking about what's at stake here, what's on the line for russia, what's on the line for the united states, ambassador >> i think this relationship is at the lowest point in 30 years, no trust, very little communication. go good, i think that they're meeting today. there are lots of issues that divide us. i don't expect major progress on issues barring surprises from president trump and president putin, but a lot on the line. >> the question is what comes out of the summit today. he wants the u.s. to soften or reduce sanctions a move would cause dismay here
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in the united states, especially after the justice department's indictment of 12 russian officials. >> right we have sanctions, the eu and the u.s. over crimea and the nerve agent attack in the united kingdom. and third, of course, the senate voted last summer 98-2 to am impose sanctions over the interference in the election that got more complicated for both leaders with the indictment of 12 russian officials. what to look for today, does president trump raise that issue in a forceful way. because there's no doubt there's been an attack on our country and now you have this legal process under way or do you not do that? >> he said in a tweet this morning, it's the foolishness and stupidity of his predecessor, american presidents not a wise thing to say. >> especially because he has yet to condemn publicly any meddling on behalf of the russians.
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he said on friday in an international news conference with theresa may, i'll ask him about it, but i don't expect any admission here at the same time, ambassador, you're comparing that to the way he's talking about previously our allies and now those alliances, our commitment to nato whether the eu is truly a foe when it comes to trade as opposed to a strong trading partner. how do you balance what has happened with our european allies with what may happen with russia >> i think you're right. the story today that a lot of people will be watching is the optics between the two of them does president trump raise forcefully this criminal conspiracy that the grand jury talked about in his statement on friday of russia attacking our elections. it's one thing to ask the question putin will deny. can you raise it forcefully and defend the american people and our country. the second part of that optic is the president had a rough trip
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in brussels and london he attacked theresa may, he picked a fight with angela merkel yesterday he called the eu our foe, which no american president has done it's not a true statement. is he going to treat putin better than he treats our nato and eu allies. unfortunately, we're looking at that today to see if the president is going to be on point defending the united states against, i think, arguably our strongest adversary in the world today that's vladimir putin. >> keep your friends close and enemies closer that's a strategy president trump has deployed at other international sul its. not to mention that meeting with kim jong-un. thank you ambassador burns we have to leave it there. there's a live shot. >> that's the airport where we're expecting to see putin's plane touching down shortly. "squawk box" picks up the coverage of the meeting after this quick break
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president trump set to arrive for his meeting with vladimir putin in the next hour. we'll take you live to helsinki for full coverage of the high stakes summit. also, bank earnings. more expected today on tap black rock, bank of america, this hour we'll bring you the numbers and reaction on wall street plus, amazon kicking off its prime day holiday. it's expected to generate $3.5 billion in sales we'll tell you why sam zamazon's competitors may be the biggest winners. july 16th, already 2018 half of this month is gone
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"squawk box" begins right now. >> announcer: live from new york where business never sleeps, this is "squawk box. good morning everybody welcome to "squawk box" on cnbc. we're live from times square i'm becky quick with andrew ross sorkin here to cover this historic meeting with president trump, we have nicholas burns, former u.s. ambassador to nato, and fred kemp, the ceo and -- thank you for being here today. >> we'll talk about the summit in a moment. but first, vladimir putin just arriving in helsinki president trump is set to arrive shortly. later this hour, they'll begin a summit that is expected to last 90 minutes we'll bring you more as it


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