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tv   Worldwide Exchange  CNBC  June 17, 2019 5:00am-6:00am EDT

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a contrarian call topping your five at 5:00 this morning goldman sachs pouring cold water on the fact the fed will cut rates any time soon. could be there a fix in? boeing's doubled 737 max jet reportedly ready for a test flight again, as its ceo, dennis muilenburg, speaks out first on cnbc that's coming up on the show. target reeling from not one but two major outages over the weekend. we'll get wall street's reaction to those move fast. take responsibility. tim cook's new warning for
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silicon valley we will explain. 9,000 and beyond bitcoin hitting that number. we'll find out what's next "worldwide exchange" starts right now. ♪ it is a long way to the top i you want to rock n roll ♪ ♪ it's a long way to the top >> welcome to "worldwide exchan exchange." i'm dominic chu in for brian sullivan woodland sinks a final putt on the 18th hole at pebble beach, leading to his first career major championship at yesterday's u.s. open. we'll have much more on that coming up on the show. big day for mr. woodland congratulations on your championship. futures coming in at least -- dow is coming off one of the longest weekly win streaks in two months despite closing lower friday futures indicating a higher open dow up by 44 points. s&p by 6 the nasdaq up by 15.
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on the treasury side of things, interest rates very much a focus. ten-year treasury note yield ticking ever so slightly higher, a notch below 1. -- 2.1% bitcoin is climbing above the 9,000 mark for the first time since may. turning overseas in the asian session, a little mixed but generally positive japan's nikkei, pretty flat. shanghai up by a quarter of 1%, as well. european trading, the same story playing out there. general positivity german dax about flat. the cac in france, about flat. monthly home builder survey today, followed by housing starts tomorrow, and existing
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home sales on friday there is a theme there we also get the nphilly fed survey on thursday the big event, the main one, will be the federal reserve, a two-day policy meeting kicking off tomorrow we get a fed decision at 2:00 p.m. eastern time on wednesday following up by a news conference from fed chair jay powell all of that happening, so plenty of catalysts on the economic front this week. let's dive into all of that now. michael, thank you for joining us this morning. let's talk about how investors are set up with this big week of c catalysts. what is going to be the main focus for you? >> when we think about the idea of investors and how they're thinking about what's going on right now, really, investors are focused on all the uncertainty out there. what we try to do is create a situation where we reduce uncertainty for the human beings we're working with, dom. we want to make sure that they have in their minds the things that are in their control,
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rather than what is out of their control. >> all right what exactly is in control and out of control right now it seems as though there are so many things that investors cannot deal with on their own, mainly trade, tariff policy, everything else that's happening. what exactly can you do in that kind of environment? >> so what you can do in that environment is really think about what you're trying to accomplish with your money, dom. the key here is, what risk is actually required for you to reach your goals, what you're trying to accomplish, and what ability do you have to take that risk, given that we don't know exactly what's going to go on with the fed, and we don't know exactly what's going to go on with the trade wars. there's not a lot of certainty out there. what ability do you have to take risk, to get to where you want to go? >> let's talk about that risk factor >> sure. >> i mean, we know the conventional wisdom, age, younger, take more risks, older, you ratchet it back a bit. in this environment, where you're dealing with the fed, we don't know about interest rates or trade policy, all of those things, how exactly do you advise clients then on what kinds of risks are appropriate
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to take in this situation? >> we talk about three types of risks. the key risks though hang on to your time horizon. how long can you actually expose yourself to market risk? dom, if you have really a short time horizon, and we know market timing can be risky, it's probably not a good idea to really expose yourself to risk during a period like this if you don't have a lot of time to expose yourgs tese yourself to s the other two are around spending how much do you need to consume of the money the third one is, how important is it to you >> so, michael, i mean, goldman sachs is out they're economieconomists they have a note this ek wweeke. they are spectacle of using cuts as insurance against a possible slowdown with trade intentions writing, quote, we think the hurdle for such cuts is likely to be higher than widely believed if that is the case, do you agree with them? is the market maybe a little bit
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off on the way it is pricing what the fed will do with regard to interest rates by the time this year is over? >> i'm a behavioral scientist. i would encourage people not to focus on what the markets may or may not do in reaction to what the fed may or may not do. this is a dangerous approach with respect to your own financial life those people investing their own capital, trying to achieve basically outcomes with their own wealth, it's really critical for them to focus on what the time horizons are that they're focused on, what dollar amounts they need for their own goals, and ultimately, how important that is to achieve it. so if the goals aren't that important, then making predictions possibly on what the fed may or may not do and when, that might be something to look at but if the goals need to be accomplished, really taking a look elsewhere is probably pretty important. >> ten seconds. >> yup. >> what's the opportunity you're most focused on in the markets right now? >> we're focused on broad asset
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allocation exposing yourself to a lot of risk assets so you don't try to market time and take risks that are inappropriate for your goals. >> all right michael, thank you so much for those market thoughts this morning. we appreciate it. >> thank you, dom. when when he come back, boeing ceo, dennis muhlenberg, on the record. new comments on the 737 max jets we go live to the paris air show with phil lebeau. call it the longest weekend. target is reeling from two tech glitches that left thousands stranded in checkout lines across the country later on in the show, why tim cook is telling silicon valley innovators to take responsibility for what he calls chaos factories. a busy hour ahead, coming up on meorldwide exchange" when we co back after this break [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge
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♪ i want to fly like an eagle daylight coming earlier in new york these days. you have to love it. we're approaching the longest day of the year coming up next week new this morning, boeing ceo dennis muhlenberg responding to reports that the faa could start test flights for the grounded 737 max planes as early as this week fi phil lebeau spoke with the ceo at the paris air show and joins us with the details. phil, are we going to see this flying any time soon >> reporter: well, we aren't going to see the test flights this week.
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i wouldn't expect it, dom. keep in mind, the faa is only one part of determining if there are certification flights. boeing also has to be ready. dennis muilenburg told us we're in the simulator, not expecting the flights to be this week. do i think it'll happen the next two, three weeks probably i wouldn't expect it this week in terms of where boeing is with the 737 max and returning it to commercial service, a lot of reports about, look, it may not fly until the end of this year that's when airlines will get it we talked to dennis about that here's what he had to say. >> certainly, we expect to have that happen before the end of the year, as we said i can't give you a specific timetable. it'll be governed by the regulators we're keeping our airline customers in the loop, so they know exactly what's going on it is important for us to focus on safety. we'll get it back up in the air when it is safe. that is the most important thing here >> reporter: one of the other news-making interviews we did this morning here in paris was
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with marilyn houston, ceo of lockheed martin. we talked about their deal with the department of defense. $34 billion agreement. still needs to be finalized. the importance of this is knocking down the price for operating and delivering each of those f-35s down to the $80 million mark here's what marilyn houston had to say >> we made a commitment well over five years ago we'd drive the price of the aircraft down to $80 million on the conventional a-variant we drove it below one year earlier, earlier lot that is due to a lot of work across the supply chain, working directly with the u.s. government on the things we need to do to bring the best produceabiliproduc produceability and better volume cost. >> reporter: we also post with wilbur ross, commerce secretary, here in paris, and we talked about the speculation we might be seeing a potential deal
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between the united states and china on the ongoing trade tensions basically, wilbur ross said, don't expect anything any time soon >> very hard to put timetable on things i think that we will eventually probably make a deal, but if we don't, the president is perfectly happy with continuing the tariff of movements that we've already announced, as well as imposing the new ones that is temporarily suspended. >> reporter: and even though we're at an air show, we asked wilbur ross about the possibility of tariffs on european autos, as well as auto parts. he said, look, if things don't change in terms of the trade imbalance, that is a definite possibility. the president would not be afraid to put those tariffs in place. guys, back to you. >> phil, interesting point on the auto side of things. did secretary ross mention at all anything with regard to possible negotiations on the tariff or trade front with european autos infocus
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specifically >> reporter: right well, that's what we were talking about. specifically with regard to european automakers. remember, there is this period that they're in right now. they get 180-day extension i think we're talking to the middle of october, is when the president next has to decide whether or not to say, look, we believe there's cause here, and we should put these tariffs in place. essentially, wilbur ross said and, look, dominic, he was in the auto industry, worked with a number of suppliers for a number of years he basically said, look, it is an imbalance there is a definite trade imbalance with europe when it comes to autos and auto parts. something has to change. one of the key areas is going to be with engines as well as drive trains even though those vehicles may be built in south carolina or alabama, the engines are coming from europe. that's a big part of the trade imbalance. >> phil at the paris air show, thank you for that wide-ranging set of interviews you've got good luck with the rest of the day there, phil. on deck for the show,
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preparing for the worst. new comments this morning from huawei ceo on the big u.s. blacklisting we'll tell you what he's saying today. plus, higher for longer. what one key opec official says he hopes to accomplish at the upcomi ongpec meeting. we'll explain when "worldwide exchange" comes back
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♪ promise i'll always be there all right. target's tech troubles, huawei's
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bleak outlook, and possible bad news for your summer road trip frank holland joins us with some of this morning's other top stories. >> good morning, dom target says its payment processing software is back to normal after two outages over the weekend. sunday, it stopped customers from paying with cards for 90 minutes. it was caused from an issue at a data center. the company had an internal issue that stopped customers in the u.s. from making purchases it says it was not due to security issues. huawei forecasting a decline in revenues this year and next year because of u.s. sanctions 4% each year, from $104 billion to $100 billion, according to guidance from its ceo. in 2018, sales increased by almost 20% year-over-year. the saudi oil minister is suggesting the opec meeting
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scheduled for this month in vienna could be moved to early july at the meeting, he believes a deal to cut production will be extended in january. oil producing countries cut production by 1.2 million barrels a day to give the market a boost, in the midst of declining prices. >> thank you for the headlines. we go live to the world's largest advertising and marketing festival the cannes lions kicking off today in france with a lineup of guests you cannot afford to miss plus, messing with the winning formula. sony takes a fresh look at its "men in black" franchise without will smith to less than stellar box office results we'll show you tse wn hohewe come back after this your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish,
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welcome back to "worldwide exchange." let's get a check of markets futures pointing to a decently higher open. dow opens 50 points to the upside if the futures gains hold to the opening bell. s&p up by 6 points nasdaq up by about 15. on the oil side of things, we're keeping a close eye on that, as well crude about $52.26, off by 1/2 of 1%. brent, the worldwide gauge, is off, $63.80, the last trade there. president trump kicks off officially his re-election campaign this week and a new interview is giving us a hint on
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how he'll try to stay in the white house. nbc's tracie potts joins us now from washington d.c. with the latest >> reporter: good morning. in the wide-ranging interview with abc, president trump was defiant on how he's handled the russia investigation, the muehl mueller report, and robert mueller himself. he was disblooufi disbelieving reportedly internal polls showing him not doing well on the eve of his re-election kick-off before announcing his presidential bid tomorrow, president trump is hinting at his re-election message. >> safety, security, great economy. >> reporter: and denying internal polls show him trailing former vice president joe biden. >> i don't believe those polls there's no way he beats me in texas. my polls show i'm winning everywhere >> reporter: a fox news poll shows him behind five democrats, and our own nbc/"wall street journal" poll shows nearly half the public saying no to impeachment hearings.
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>> we need to at least open an inquiry so we can look at what is going on. >> reporter: president trump denies the mueller report finding that he tried to fire the special counsel. >> he wasn't fired okay number one, very importantly more importantly, article 2 allows me to do whatever i want. >> reporter: meantime, republicans are both defending and explaining what the president said about taking information from foreign governments before reporting it to the fbi. >> this was a mistake to say this i mean, clearly. >> the president said he'd report that to the fbi. >> splitting republicans one day before trying to unify them for the next election. now, the poll, our poll, shows the president's approval rating right now, dominic, 44%, down a couple points from last month but still within the marginov o error. >> what do polls say about president trump's chances at the actual re-election what are we handicapping at this stage? we know it's early. >> reporter: very early. what our polls showed was that there are about 37% of people
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who are either enthusiastic or willing to support the president. 52% against him at this point, or very uncomfortable with the idea of voting for president trump. >> all right tracie potts live in washington d.c. with the latest on the poll numbers, thank you so much we appreciate it. let's get a check on the other headlines, as well frances rivera is live in the nbc new york newsroom with the latest >> good morning to you we start with another weekend of historic protests in hong kong according to organizers, as many as 2 million demonstrators flooded the streets to oppose legislation that would allow extradition to mainland china. the city's leader said she would postpone the bill for now, but protesters want it scrapped all together. 44 million people have been left in the dark after a massive power outage hits south america. argentina, paraguay, and uruguay are without power. brazil experienced outages, as well authorities trying to determine what caused the interconnected
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grid to collapse. energy officials may not know the cause for another 10 to 15 days. power is being restored to some areas. nike fans are steaming over the company's latest release, with users on twitter criticizing the air max ff-720, saying look at it, the women's foot, it looks like an iron. it is a cross between a sneaker and sandal with a clear plastic sole and cutouts some say resemble the household applia e appliance. they are set to be released on thursday you know, the newest and latest and greatest thing there if it looks like an iron, people will wait in line for it, i'm sure, dom. >> i didn't think of an iron the first time i looked at it. now that you mention it, isee it one question, would you wear one? >> if they were gifted to me, yup. but nothing thing to buy a pair. >> thank you for the headlines and the nike shoes. >> you got it. we're breaking out your low
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rate playbook. the one stock our next guest says you should own as interest rates continue to tumble plus, why tim cook is calling silicon valley a chaos factory. we'll bring you his mmtscoen when "worldwide exchange" comes back after this. ♪ lower calories. ♪ higher expectations. the light beer you've been waiting for has arrived. corona premier.
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the fed front and center, as wall street gears up for a new week how you should position yourself ahead of wednesday's big policy meeting and decision taking flight.
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the biggest names in aviation are gathered right now at the paris air show we'll take you there live. and apple ceo tim cook blasting big tech for creating what he calls a chaos factory. we'll bring you more of his comments that's coming up straight ahead. it is monday, june 17th. "worldwide exchange" begins right now. ♪ i think you're crazy ♪ i think you're crazy welcome to "worldwide exchan exchange." i'm dominic chu. brian sullivan is off today. futures pointing to what could be a higher open for the dow just up by 40/45 points at this stage. s&p would be up by 6 points, and the nasdaq up by 16. we've seen a bit of an acceleration the dow would open by 50 points at this stage if futures gains hold at the opening bell treasury side of things, slight uptick across parts of the yield
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curve. 2-year, 1.875% the 10-year, a hair above 2.11%. turning now overseas, the asian trade generally positive the nikkei was about flat. shanghai composite up by 1/4 of 1% for the trade in europe, that generally flat to positive move playing out somewhat there, as well german dax up 1/4 of 1%. the ftse 100 up by 0.2%. the dollar against the major currencies, the dollar index about flat on the day, as well wti crude, $55.25, off by 0.5% $13.37, the last trade there for gold comex joining me is david now. the markets are at about record
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highs but it feels like a stalling out area. how exactly do you read this kind of a market activity or action ahead of a big fed rate decision >> wouldn't read too much going into the fed the markets can be volatile for the balance of the year. we'd not chase the rallies rather, we'd buy into the sell-off you just had a pretty good start to the month, significant rally. we would not be putting new money in having said that, there are stocks that are pretty attractive. >> let's think about the stocks that are attractive. this is your shopping list what exactly goes into that kind of a shopping list if you are not chasing rallies but waiting for pullbacks to happen? >> well, basically, we're looking for companies that are selling at reasonable valuations, typically under a market multiple, and are paying a pretty good yield. right now, treasury is at 2.1% on a 10-year bond. if you're buying stocks with a three, four year dividend, there is volatility, but it's holding
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up well. >> we know they are typically consumer staples, utilities, real estate. some of the sectors are stretched in terms of valuation. >> exactly so those sectors have had great runs we're saying the high dividend stocks you want to focus on now are more diversifdiversified. companies like cvs, in the health care group. one that we mentioned earlier is home depot home depot pays about a 2.7%, 2.8% yield they're a direct beneficiary of lower interest rates of home refinancing. they're expecting business to pick up well you're getting them at a good price. >> take us through this. as interest rates drop, the idea is, people have the ability to borrow more money, then fix their bathrooms, fix their kitchens, work around the yard home depot is the best play. what about lowe's. >> lowe's is pretty good, too. we like home depot better because they pay a higher dividend yield you're getting both the valuation and the dividend kicker. >> all right let's talk about whether or not the fed factors in you say don't figure out the
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chasing rallies part of things is there anything that the fed can say this week that would make you feel any worse or better about what's happening with the markets right now >> we don't think so what is clear, the fed is dovish, whether they lower rates this week or next month. the fed will be lowering rates this year, and we don't think they'll be particularly aggressive in 2020 it is a positive for the market. the biggest wild card for the market now is trade and china. if there is no resolution, if there is an escalation, we definitely worry about the market on a pullback if there is any resolution, good or bad, just put it behind us. we're bullish on the market. >> does it seem though, over the course of the last six to nine months, we've seen umpteen trade headlines indicating incremental progress or regression it seems the market has become a little more impumune to the tra headlines. they don't move as much as they used to. the it uncertainty at this stage? we know an overarching trade
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deal, and commerce secretary ross said it, don't expect a big deal when president trump and president xi meet, if it happens. >> we think it has an significant impact on the economy and the stock market you heard in the fourth quarter companies say business was slowing. they were worried about tariffs. you had the worst fourth quarter in ten years as it looked like trade was getting better, good first quarter. as it looked like the trade deal was falling apart, you had a significant sell-off in may. the market is hopeful for a deal if trump digs his heels in and they don't figure something out, we think it is bad for the global economy and will hurt our stock. >> where are places you stay away from because of the uncertainty? >> we think that the reality is if there is a no deal and the market sells off, a lot of things will be hurt. if you have equities, you'll be hurt stick to your long-term asset allocation we wouldn't be spooked if it looks like there is not going to be a deal. ultimately, there has to be a deal if trump wants to try to get re-elected. >> david catz, thank you for the
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market thoughts. appreciate it. >> thanks. boeing's grounded 737 max airplanes, a big focus at this year's paris air show. let's get to phil lebeau, live with the ceo of of air lease corporation. >> reporter: let me bring in the ceo of air lease corp. i want to ask about the news coming out in the last hour. airbus launches the a-321xlr who is placing an order for 27 of those but air lease tell me why you're optimistic about this plane. >> this is going to be a great compliment to the airbus a 321 family this aircraft, xlr, adds further range to the aircraft type full cockpit we're getting extreme interest in the aircraft from customers globally it is an easy and natural thing for us to do we believe it'll be a blockbuster. >> reporter: which is connecting
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city players further apart maybe smaller cities than people would expect. >> yes. >> reporter: there is demand, right? >> huge demand there the great advantage of the 321xlr is not flying a wide body on the city players that don't demand it. listen, your profitability, and, in fact, i would add your vie environmental sustainability is optimized when you have the right size aircraft for the mission. this is the right size aircraft for those segment lengths up to 4,700 miles, just about what the 757 was. this is, in our view, a true 757 replacement but on a much more fuel efficient basis. >> reporter: we'll talk about the rest of the order in a bit i have to ask you about the 737 max. >> yes. >> reporter: you have a number of these, and your clients, the airlines you're leasing the planes out to, they're parked. clients are saying, i'm getting a little bit to that point where i have to start thinking about the holiday busy rush. >> right.
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>> reporter: when do they have to make that decision? >> depends on the airline, phil. octob most airlines have taken part of the summer lift. for the largest airlines, with their resources, it is easier for them to adapt. if a delay goes to the holiday season, they can sustitute more. smaller airlines have less resources. they need to have planning more efficiently. i can't tell you when. that is an individual decision for each airline certainly, some are looking at that. >> reporter: what does your gut say in terms of when regulators say it is good to go and we see it flying again? >> i wish i could comment. i just don't know. clearly, everyone is looking at the regulators for their endorsement of the boeing fix. we've reviewed the boeing fix, and we have confidence in it it really is up to the regulators and boeing to prove to everyone, to us as buyers, to the airlines who operate the aircraft, and most importantly
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to the traveling public, that the aircraft is, in fact, safe, and they've made it even more safe. >> reporter: does your gut say it happens, let's say, by august 31st, or are we looking at the october time frame >> my gut is poor on this, phil. i'm not trying to avoid the question, but i just don't know. again, it is all at the hand of regulators when it is regulators, far be it from us to second guess the process i think all regulators are working very diligently with safety as the number one thing collaboratively. faa, china, canada, the boeing company. i think if there is anything good that comes out of this, i believe it will introduce a new era of collaboration across the industry and across the regulatory authorities. >> reporter: real quick, got to run here in a second, optimism about the market overall we're going to see fewer orders at the show this year, but what is your general take on the airline market right now >> look, it's probably a little subdued because of the max situation right now. nevertheless, i think overall,
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the airlines are still optimistic long term we wouldn't be making this order if the airlines weren't expressing that to plus and we didn't feel it ourselves environmental sustainability again. the only way the industry can target objectivities and to fly the fuel efficient aircraft and replace the older aircraft that is a huge driver today. this, and many other factor, gives us long-term confidence. >> reporter: john plueger, he came straight here, after placing the order. he said to the ceo of airbus, put me down for 27 of the new xlrs back to you. >> thanks. >> john and phil, thank you for the informative interview. appreciate it at the paris air show. coming up on the show, apple ceo tim cook blasting big tech for creating, quote, a chaos factory. we're digging into his comments. that's coming up ahead. plus, what the saudi oil minister just said that's raising a lot of eyebrows in the oil market we'll explain. first, media titans. mega yachts.
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being able to change lives. welcome back to "worldwide exchan exchange." i'm dominic chu. futures are pointing to a higher ode. dow would open by 56 points if the futures gains hold into the start of regular trading s&p up by 7, and the nasdaq up by 16. big media taking over the french riviera this week for the annual cannes lions festival. our own karen cho drew the short straw and is out there in the south of france on that gold coast. karen, what can you tell us about what we should expect on the south of france this year? >> reporter: dom, away from the sparkling water and the glitzy strip, where cannes puts on a show for the advertising executives, there is a strong undercurrent across the course
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of this week first up, you have the judges debating on the controversial and creative ads, the ones the audience may remember lately it is ads over the super bowl and the nike one with colin kaepernick, creating a media storm. these are the ads judges will debate across the industry, you have advertisers, marketers, brand chiefs, creative content producers, media companies, debating disruption and how they tackle that challenge. last year, there was a tension between the creatives and the technology economies, the likes of amazon, twitter, facebook this year, they worked out how to co-exist. don't forget, technology is saving these companies money, but also giving them opportunities to get closer to the customer it is a slightly easy relationship that's taking place. when i comes to some of the other trends, you have the societal impact. brands must stand for something, whether it is sustainability, the likes of wpp announcing this morning it is trying to reduce
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plastics in its business, but also in diversity. that's diversity inside advertising, companies hiring the right people that produce diverse content, to the brands connecting with more diverse customers to niche marketing what this means for the advertising agencies, the stock market companies, it's meant declining advertising revenues in recent years. they've had to tackle the challenge of how they still make money with the change taking place. you have everybody encroaching on their territory, from the technology companies to the consultants. they're trying to get back in the game publicist made a data acquisition, the largest acquisition in its history you have a real seat change taking place, away from the stunning set behind me back to you in the studio, dom. >> karen, the whole idea of digital advertising being at the forefront, with all these social media platforms, these giants like facebook, like twitter, all of them are in the news so much these days what types of conversations will
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be happening during the panels and on the sidelines with regard to advertising, marketing, and its role, given social media's huge focus these days? >> reporter: well, there's always been this sense of tension around how much dominance those players have the likes of facebook, twitter, google don't forget, they've been taking advertising money away from some of the mainstream media platforms. at the same time, they are partners to many of the big brands here. i think one of the messages that has come through loud and clear, that we've covered on all the cnbc shows, there are anti-trust cases potentially pending, privacy issues these social media platforms need to target the way they approach customers i think many of the brands are aware even though you want to get up close and personal with the customers, you can't get too personal because it is too creepy you need to execute where you're using the insights to serve up the right content but not stepping over that line, dom >> karen tso in cannes, france
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remember the sunscreen looks like it'll be a sunny day out there. thank you for the update >> i've got some. we have much more coming your way from the cannes lions festival big interviews john legend. jeffrey katzenberg meg whitman. those are a handful of the ones. you can catch all the interviews all week long right here on cnbc must-see for the digital advertising and marketing industry these days. time for this morning's top trending stories frank holland is here with some of those chaos factory. i need to know the context for why tim cook said it. >> well, we'll give it to you right now. we'll start trending with a little graduation ceremony commencement speech. apple ceo tim cook blasting big tech speaking at stanford's commencement ceremony over the weekend. take a listen. >> it feels crazy anyone should have to say this, but if you built a chaos factory, you can't dodge responsibility for the chaos. >> cook didn't mention any tech
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companies by name, but he emphasized the need for privacy, saying that data breaches and privacy violations threaten freedom. again, didn't mention any companies by name, but it is widely believed he was referencing google and facebook. the companiy has jabbed those companies before. >> this is not the first time they've gone after companies like that, like alphabet and google and what not, for privacy, for the idea that they are the ones who safeguard your data more than other companies do it is interesting he'd make it in a public forum, at the stanford commencement address. >> the company, apple, referring to apple, they seem to be making it a focus all the new advertising is about privacy. one of the ads, a woman is giggling, looking at her phone apple's tag line is, we respect your privacy it is a feature they're trying to really feature, for that matter. >> there you go. all right. now to entertainment news. not cannes lions exactly, a little different scene it was a rough weekend at the box office, especially with the debut of twoinstallments in major hollywood franchises sony's "men in black
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international" did manage to take home the top spot but with only $28 million in domestic ticket sales meanwhile, warner brother's sequel flopped in the debut with $8.3 million. >> what does this say now about the summer movie season? it used to be when memorial day kicked off, you could see all the blockbusters and they were making more money than you could possibly believe now, it seems unless you're a marvel -- i shouldn't say this if you are a disney franchise with a marvel tag or a "star wars" requestintag, you're the e making money. >> we know will smith from "men in black." >> this had chris hemsworth. >> from the marvel universe. there is just a lot of competition. this weekend wasn't too hot or too cold i think hot weather brings people to the movie theater. >> for the a/c. babe ruth is still setting records 70 years after his passing. a babe ruth jersey dating from the late '20s sold at auction
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for $5.6 million over the weekend. it is the most expensive piece of sports memorabilia ever sold. ruth's granddaughter said a portion of the proceeds will go to charity. >> anonymous wouldn't you like to know? is it a hedgefund guy? >> who is it >> is it a sports guy? i mean -- >> i think that is the question. is it a speculator or a die-hard fan? >> the feeling i get and, again, i'm not a sports memorabilia expert, but it seems like the feeling you get when you see that money paid for a piece of history in baseball that is so storied, like babe ruth, it'd be somebody who is a true o fi aficiona aficionado, a collector. >> i also think a lot of people speculate about these things imagine, a rare babe ruth jersey comes on the market, how many opportunities will you have to grab it? it'll appreciate baseball is all about the nostalgia. >> my imagination is running amuck. frank holland, thank you for the trending stories we appreciate it. in sports, there is a new name enscribe e inscribed on th
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trophy, gary woodland. the 35-year-old winning his first major golf championship. as you're seeing there, a big, big, big putt on the 18th hole to really seal the deal. he held off two-time defending champion brooks koepka woodland wrapping up the victory with the 30 foot putt for birdie he was three shots clear of koep koepka woodland is the fifth player to break 70 in all four rounds of the u.s. open. he topped the score tiger woods posted during his 15-shot victory at the 2000 u.s. open at pebble beach congratulations, gary woodland. target's tech troubles the retail giant suffering major outages over the past weekend. what went wrong. plus, ready, set, hike what you can expect to happen at this week's big fed meeting. stick with us. "worldwidexcng w ehae"ill be back after this.
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♪ baby when they look up at the sky we'll be shooting stars passing by ♪ 4:53 a.m. central time chicago, illinois. welcome back to the show let's get the top headlines. target says operations are back to normal after the retailer suffered two major outages over the past weekend cash registers were down coast to coast for two hours on saturday some stores reported more issues yesterday. targetunrelated and neither caused by a cyber attack. next week's opec meeting could be moving. the ministers will likely agree to extend production cuts in early july instead of this month. opec was scheduled to meet next tuesday. and bitcoin hitting a big milestone.
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the cryptocurrency trading above $9,000 for the first time in over a year. right now, bitcoin prices on the bit stamp index, $9179, the last trade there. it is a big week ahead for the markets and wall street overall. the monthly home builder survey is out today, followed by housing stats tomorrow and existing home sales on friday. we also get the philly fed sur v survey on thursday pmis on friday the main one this week will be the fed. two-day policy meeting kicks off tomorrow, and we get a fed decision on rates 2:00 p.m. eastern time on wednesday, followed up, of course, by a news conference with fed chair jay powell let's talk more about what we may hear from the fed this week joining me, lindsey, chief economist at steeple financial let's talk about whether or not the economy in the u.s. is in a situation where the fed should cut interest rates >> well, that certainly is the big question, whether or not the fed should not if they will we don't expect the fed to
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actually take any policy change this week. when we look at the conditions of the u.s. economy, we do see very clearly that there's weakness bubbling underneath the surface. inflation has been disappointingly low. business investment has slowed, along with business confidence we've seen manufacturing take a hit. this all is compiling on top of expectations that growth is noticeably slowed in the second quarter relative to the start of the year so i do think it is going to be increasingly difficult for members of the committee to continue to ignore the need for further policy accommodation, at least in the coming months. >> lindsey, what has changed i remember over the course of the past maybe nine months or so, this idea we had been seeing some ideas or some data points that might be pointing to a slowdown, not just in the u.s. economy but globally, as well. why is it right now that we are paying so much more attention to it, and why is it right now that the markets are really wanting to have a fed interest rate cut?
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>> well, i think there's a loss of confidence. i think all of a sudden, market participants are beginning to focus not on the expectations things could be better, but they're focusing on the realized data points that were seeing released again, as we look at inflation, when we look at top line gdp, manufacturing, business investment, even spending, even on the consumer side, yes, we saw a stronger than expected retail sales report, but we're still seeing ongoing volatility at the very least in the consumer sector. taken together, this does not bode well for the expectations for perpetuating this recovery indefinitely i think finally, market participants and fed members alike are beginning to wake up and focusing on the actual data, opposed to unfounded data. >> we are seeing the consumer maybe able to pay higher prices. at the same time, prices aren't going that much higher is there really an inflation worry at this stage?
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>> no, i don't think there is an inflation concern at this point. in fact, when you look at some of the comments from fed officials, they're increasingly focused on this idea of a disinflationary or slower pace of positive inflation in the economy. in fact, we've heard from a number of fed members outline the scenarios that would potential warrant a rate cut in the coming months. many point to a slow level of inflation around 1.5%, which is the level of inflation we're currently seeing in the economy. so in an essence, reading between the lines, they're acknowledging that the current condition that is we see in the economy, vis-a-vis inflation, do, in fact, warrant a rate reduction in the near term, sooner rather than later. >> liendsey, we appreciate it. thank you for the thoughts on the economy. >> thank you. that does it for "worldwide exchange let's get a check of the futures. dow opening up 45 points
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nasdaq up by 10, s&p up 6. the ten-year u.s. treasury note yield yielding about 2.11% we'll keep it right here "squawk box" picks up the coverage right now. morning. we have new reports saying a fix could be close for the boeing 737 max. boeing ceo responding. we'll show you what he told phil lebeau at the paris air show bad week end for target, problem with the checkout registers causing a global shutdown bitcoin surging this morning, trading above $9,000. we'll tell you why analysts are crediting facebook for the rally. it's monday, june 17th, 2019 "squawk box" begins right now. ♪ give a little bit, give a little bit of your love to me ♪ >> announcer: live from new york, where business never sleeps, this is "squawk box. ♪ give a little bit of my love to you ♪ >> good morning, everybody welcome to "squawk box" on cnbc.
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we're live from times square i'm becky quick with mike and joe. check out the futures this morning, and you'll see we're in the green at this point at least. dow would open by 45 points here s&p by 5.5 the nasdaq would be up by about 11 points. this comes after the dow, s&p 500, nasdaq were down three of the last four sessions the last two weeks, all major indexes have been higher for that period of time. june is on track to be the best month we've seen for the major averages since january let's take a look at what happened overnight in asia you'll see that the nikkei was actually up barely it was up by 7 points. hang seng up 0.4%. shanghai come pposite up 0.2% in europe, mostly green arrows modest advances with the ftse, up

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