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tv   Worldwide Exchange  CNBC  July 18, 2018 5:00am-6:00am EDT

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it is 5:00 a.m. at cnbc global headquarters. here are the five big things you need to know. trump and putin be darned, why it could be another record day for your high-tech dollars european regulators set to fine google $5 billion over its android operating system more on this developing story in moments. the ceo of one of america's biggest technology companies is out after sixweeks on the job. jay powell heads back to capitol hill and united airlines may have given investors the all clear to buy airline stocks again it's wednesday, july 18th.
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"worldwide exchange" begins right now. ♪ another great band defined by its worst song. welcome. i'm brian sullivan it's great to be back with you it's a big day on cnbc it's the delivering alpha conference big names like larry kudlow, mark lasry, we'll have much more on the delivering annual conference in a few moments. and it may be a good day for you and your money stock futures are slightly in the green. all eyes are on the nasdaq, not the dow. it's all about the base, ns, noe treble tech stocks keep pushing higher. yesterday a number of big-time stocks made for highs. amazon, facebook, google, microsoft hitting new records.
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amazon shrugging off prime datek woes we'll get more on that in a bit. buyers are still coming into bonds. the ten-year ticking a bit lower to 2.86% we'll have more on the broader markets and your money in a second. first we have some big breaking news on big tech, specifically google european union regulators set to fine the company a record $5 billion. let's get to willem marx with the breaking details on alphabet >> thank you very much the last few moments we've been hearing from sources at both major news agencies that we are going to expect 4.34 billion euros worth of fins leveles levd against google we will hear about this publicly in a few hours time. this is about abuse of google
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using android to dominate search this follows on from the $2 billion penalty last year leveled by the commission against google again that was relating to it forcing consumers across europe into its own shopping services when searching for specific items so another large fine leveled today against the tech giant >> that's a breaking story on an important stock. willem marx, thank you very much alphabet is one of the top five holdings in more than 100 big market etfs. the other big headline, jay powell back on capitol hill. he will be grilled this time in the house financial services committee. also more on technology, european union a lot to discuss let's kick it all off with taltal talley legere. i know you're not primed on the google story since it just
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broke. alphabet is such a major stock, a top stock, at all-time record highs. now the european union is fining it $5 billion is there any way to connect that to the macro markets >> look, this sounds like a big number i'm not a company specific analyst. >> it's probably a day of net income for alphabet to be fair, but it's the action, which europe, which we know you like, europe going after oneof the biggest american technology companies. i think this is a negative but perhaps hopefully temporary set back i think major offsets come in the form of leading indicators of business activity that continue to look stable to strong here. that's the back drop that technology does well in. >> yeah. in general, are you shocked, surprised, in awe of this unstoppable tech juggernaut?
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microsoft, amazon, google, new all-time highs yesterday >> so what does sprayed me urpr investors continue to flock to technology given elevated evaluations, but there's a good reason for that. it's because of the top line revenue and bottom line earnings growth these companies continue to spin off. does it worry you that so many people are piling into the same four, five stocks? >> that's a lot of people in a small boat >> ultimately there will be a day of reckoning i don't think it's here right now. in the u.s. we're still growing at or slightly below our long-term average back to the second world war >> that's underappreciated by the marketplace. technology helps us get past that barrier >> it's important what you're bringing up. this day of reckoning concept
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may never happen but yet you have the stocks, which basically control 30% to 40% of the overall market in terms of their weight. four or five companies control one-third to one half of the overall markets move based on their market cap weight. what happens if they roll over >> you make a good point breadth is narrow here, it's not as strong as we would like it to see. participation in other words, is pretty thin. i think if you're worried about risks here in the u.s. markets, after nine years of expansion and a bull run in u.s. equities, look elsewhere around the world for better opportunities where you have better value, markets that are in earlier stages of their cycle. >> such as where give us an opportunity people say i like what talley said i will sell tech and buy what? >> i think given the pull back in oil prices here, energy is an
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attractive late cycle play outside the u.s., look, i still think that chaos creates opportunity. and europe is looking good right here economic surprises have been improving. >> europe, if you just read the headlines, you would think they're on the brink of something bad, but they're underlying the deep economic numbers which are so boring but pretty good. >> that's the point. in the u.s., the hurdle has been getting higher and higher in the u.s. and abroad in general, the hurdle is low. by definition that sets us up for positive surprises >> all right maybe look to europe, possible day of reckoning coming. a lot of people in the same stocks important discussion have a good day. topping your headlines in technology, the ceo of one of america's biggest tech firms is out after less than two months on the job following reports of
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misconduct landon dowdy has more on this. >> good morning. brian crutcher stepped down late yesterday over what texas instruments said were violations of the code of conduct he also resigned from the board. he had taken the helm in june after 22 years at the xhacompan, most eventually as coo texas instruments said the violations were related to personal behavior and not strategy or financial reporting. crutcher is being replaced by rich templeton templeton will return indefinitely and the board is not seeking a replacement. in an e-mail to employees, templeton reaffirmed the company's behavior to behaving professionally crutcher is the third high
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profile ceo so resign over conduct violations in the past two months in june intel's ceo stepped down over what the company said was a past consensual relationship with a subordinate earlier this month barnes and noble fined its ceo. shares of ti are down in early trading. >> that's a big story, see you in a bit csx, second quarter profits beating forecast they boosted their forecast as well csx was helped by cost cuts and higher shipping rates and by higher coal shipping rates. united airlines second quarter results topping forecast, despite a surge in jet fuel costs the airline also raising its guidance for the year. stock up nearly 4% don't miss oscar munoz today at 8:00 a.m. and boeing received a 3$3.9 billion deal to build two jet there's a will be used as the
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new air force ones in the future president trump heavily criticized the price tag last year the jets will be delivered by the end of 2024 and they will be painted red, white and blue. that will replace the light blue color scheme that's been used since jfk was in the white house. the president said the planes should look more american. we are just getting started here on "worldwide exchange" on a busy wednesday on deck, was there deal day drama? amazon wrapping up its biggest sale day of the year we'll talk about that. and we're getting a check on tech the nasdaq hit new highs yesterday. is there still opportunity when the eu is fining google $5 billion? more on that breaking story and your big money hdleseain olay ultra moisture body wash
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and lets you control your network with the xfi app. it's the ultimate wifi experience. xfinity xfi, simple, easy, awesome. welcome back good morning stock futures are in the green today. the dow futures indicated up 25. all eyes on the nasdaq yet another all-time high for the nasdaq amazon -- have you heard about these names? amazon has a future. facebook, microsoft, all new highs yesterday. the aforementioned amazon's goal of creating a new national shopping holiday continues to inch towards reality the company wrapping up what they call prime day, but not without hiccups. courtney reagan has more investors care because this stock is kind of important >> very important. it's huge. it gets huger all the time
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>> or bigley >> prime day did just wrap up around 3:00 a.m. on the east coast. even though it got off to a rocky start. most indications point to a record breaking day. the last update that amazon gave us was less than a third of the way in, at that point they said the first ten hours prime day grew faster than the first ten hours last year. unclear if that's sales, orders or traffic, but something was faster at that point they just fixed issues that caused widespread outages lasting for about the first zeseven hours. amazon made jokes about a rough start that was no walk in the dog park, as you see the dogs that popped up so far best serls llers include echo dot, fire 7 tablet, the
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life straw personal water filters for hikers 26 hours into the 36-hour event, amazon said small and medium sized businesses worldwide exceeded more than $1 billion i sales. before you wi other retailers came to play. they don't want to be outdoon. retail me not said there were 30% more retailers offering competing deals this year compared to last year. it will be interesting to see if they tell us about a sales spike in july that they don't actually attach to any other competitors holiday. >> is no company that generates more buzz for itself other than perhaps apple than amazon, despite being almost impossible to talk to >> it's difficult. >> they give no interviews, say nothing. they generate the buzz >> it's tough. we wanted to understand more about what happened with the outage, but did not get more clarity. >> how many alexas did you sell?
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eh, we don't know. a lot. >> at least we know how many global prime members they will as of april. >> that took years to get one number from this company jeff bezos 50 billion now richer than the next richest billionaire in the world or something like this. >> i guess being secretive pays off. >> it does >> it has so far for them. >> you're a history wrapped in an enigma. let's talk more about amazon joining us is megan worley from cantar consulting digital team you heard courtney and i talking. you talk about amazon all the time you dig into the company what do you make of their rather secretive methods? >> you know, that's in true amazon fashion not to release too much about prime day results or anything. i think they keep it close to the vest just because of how unique of a company they are they are that tech company first, and a retailer second
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so i imagine for primeday this year we'll see, you know, thousands and millions of alexas sold this year but very vague numbers nothing specific >> is the whole thing, prime day, it's like cybermonday i can't get on board is the whole thing just to get us talking about amazon because it's working is the whole thing to get the six americans who are not prime members to cave in and sign up is that what this is about, come to us, we're amazon. >> sure. sure there's a lot of hype around the event. probably more so this year than in the years past. we should be looking at the event as not just a recruitment tool for amazon given that they already reached half of the u.s. households according to our shopperscape data, but it's more of a recruitment tool for their ecosystem. looking at how they're deepening relationships with existing
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prime minister members and driving them across the various different services and platforms. so i think it's evolved beyond that recruitment tactic it was originally >> megan, i'm curious about your thoughts on grabbing folks into the ecosystem when it comes to the echo alexa devices do you have any research or any estimation on how well that's working? is that really making repeat ordering much easier if you're standing in the kitchen and you run out of flour to ask alexa there? >> sure. we already know that amazon's echo has pretty incredible reach with prime members, despite its relative newness you would have noticed yesterday and on monday that alexa and the connected devices that amazon have were all over the site. they dominated prime day when it comes to shopping, while that's lower on the list of activities that people use their echo for, it's rising.
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and not just for reordering. there's evidence that people are using these for first time orders as well >> because we get so little hard data from the company outside of their numbers, for investors out there, and there are millions that own the stock, what are one or two important things they need to pay attention to going forward? >> yeah. i think the most important thing to pay attention to is how amazon reinforcing prime's added value given they just raised the annual price to $119 a year. that was the approach they took this year with prime day to assert that added value beyond just price cuts. that was definitely evident on prime day and we should see that theme continue going forward in order to retain shoppers into the ecosystem and, you know, embed in their daily and weekly routines as they move into grocery. >> it's amazing. despite these glitches or whatever, the stock continues to
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go up. megan, thank you maybe in the home of amazon's second headquarters in boston. we'll find out soon. still ahead on "worldwide exchange," more big news on that google breaking news eu regulators set to fine google $5 billion more on this breaking story ahead. and you can call this a pug shot a dog arrested real story stick around this is a tomato you can track from farm, to pot, to jar, to table. and serve with confidence that it's safe. this is a diamond you can follow from mine to finger, and trust it never fell into the wrong hands. ♪ ♪ this is a shipment transferred two hundred times, transparently tracked from port to port. this is the ibm blockchain, built for smarter business.
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president trump will meet with his cabinet today to do damage control after meeting with vladimir putin. tracie potts has more. >> reporter: the president is cleaning up what he said in finland and according to a source telling nbc it was the vice president and the secretary of state who sat the president down privately and convinced him that he had to go back and change what he said. here's president trump's take two on whether russia meddled in the 2016 elections >> i don't see any reason why it would be >> the sentence should have been i don't see any reason why it wouldn't be russia >> reporter: the do-over not sitting well with critics. >> it's 24 hours too late and in the wrong place.
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>> if the president were willing to dismiss american concerns in public what did he say in private? >> reporter: democrats want to hear from the interpreter in his meeting with vladimir putin. >> we need those translator notes and the translator herself to come brief us about what was said privately >> reporter: the president no longer publicly doubting the intelligence community >> i accept our intelligence community's conclusions. >> doesn't undo the harm completely, but it will help. >> reporter: despite the correction, some republicans are not thrilled with his performance. >> i don't even think the president should have had a press conference with vladimir putin. >> reporter: president obama's cia director, john brennan, called it treasonous >> do you agree with brennan that trump's actions before freewere treasonous >> i do not. >> reporter: brand-new this morning in a new survey, 68% of
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americans consider russia an unfriendly country, brian. >> tracie potts live in washington, thank you very much. president trump's former top aide, steve bannon, praising the president for his meeting with putin. we'll hear more from bannon at today's delivering alpha conference. right now let's check on the other top headlines outside of the world of money and business. frances rivera has those good morning >> good morning to you the owner of the mandalay bay is suing victims of the shooting that happened there. mgm said they hired a security vendor for that festival, the company says that limits its liability. the 12 boys and their soccer
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coach who were rescued from a flooded thailand cave last week will be discharged from the hospital in the next hour. they will also speak out publicly for the first time in a press conference. and one man's watermelon slicing challenge earned him a new world record that's a long-time record setting contender. he sliced 26 water millions in half on his own stomach in 60 seconds. it's the first time the stunt has been attempted solo. i don't know what he has under that shirt, a cutting board or some major abs >> i'm guessing the former i don't know why is that a thing? why is that a record >> something he apparently does. >> i will juggle grapefruits thank you. >> sure. on deck, forget prime day. delivering alpha is the big day. that's here on cnbc. by the way, it's also national hot dog day. let's be frank, all the deal
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news you need to know about is coming up on a big day for cc.nb ?
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breaking news this morning europe set to fine google $5 billion over antitrust concerns. the details on this breaking story ahead. and mr. piggy goes to
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washington why pork is on the minds of those in washington, d.c it's your rbi this wednesday, july 18, 2018. ♪ welcome back good webs modnesday morning. a lot to get to. first a check of the headlines landon dowdy is back with those. >> that's right. among the stories leading now, european regulators are set to fine google $5 billion over its android operating system the eu's competition chief will hold a news conference this morning at 7:00 a.m. eastern. and texas instruments ceo brian crutcher is out after two months on the job. brian crutcher stepped down late yesterday over what texas instruments said were violations of the code of conduct texas instruments said the violations were related to personal behavior and not strategy or financial reporting.
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united airlines second quarter results topping forecast, despite a surge in jet fuel costs the airline also raising its guidance for the year. stock up nearly 4% don't miss oscar munoz today at 8:00 a.m. back over to you >> see you in a bit. thank you. today is the big day it's cnbc's eighth annual delivering alpha conference in new york leslie picker is getting ready and with a look at what attendees can expect leslie >> in about three hours delivering alpha kicks off right here in new york in a world rife with political divide, trade uncertainty and signs that a recession is near, this event brings together some of the smartest minds in business and politics to help make sense of it all ken griffin is here his hedge fund is outperforming the industry and the market. the flagship multi strategy fund is up 8.8% in the first six
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months, compared with a 1.23% gain for an asset weighted index of hedge funds the s&p 500 was up a little more than 5% over the same period. and ed wakenheim will also share his thoughts on the markets at delivering alpha. the equity markets have raked in 7$750 billion last year as investors hunt for alpha today's events has three of the biggest names from that world. john gray of blackstone, david rubenstein of carlyle and howard marks of oaktree >> which of those are you the most interested in hearing from? >> which of the private markets people >> griffin >> well, john gray has a new role within blackstone he was promoted to president i'm interested to hear how he
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plans to navigate blackstone he has a real estate background. how will he use that as blackstone's president the guy operating the company and obviously it's a very interesting time to take the helm of the biggest privatity equie -- private equity guy in the world. he's now the guy, not the guy behind the guy he's the guy >> he's the guy. he has some people to report to, but he's the one keeping the trains on the tracks >> there we go big day. get ready. >> big day could be a good day for your money and markets. futures are not soaring, but they are higher now. dow futures indicated up 28 points nasdaq is what everybody is watching yet another new high nasdaq stocks up a couple percent in a couple weeks. let's bring in chad morganlander from washington crossing advisers their firm eventually advising clients to go underweight u.s.
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equities you're going underweight u.s. equities at a time when everybody continues to buy stocks, or at least buying the same four or five stocks >> we've been overweight for the last 24 months we decided -- >> good call >> and a good call we decided to go underweight equities and overweight bonds, but on the bond side hug the yield curve. >> what does that mean go to the short end of the yield curve, buy the one to five-year bond and stay close to that duration so that if you do get in an environment where you get a rising rate environment on the long end, that you won't have a severe impact. if you're on the east coast of america, 5:34, it's a little early to talk about hugging the yield curve. sounds like you're making a safety bet >> we are just moving up the quality spectrum we want to be more safe and balanced within the portfolio. we are also advising investors
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to migrate more to value that doesn't mean you have to take all your chips off the table, but you want to perhaps start shifting >> but safe from what? what are you protecting yourself or your clients from >> you have valuation issues, the rise of the federal reserve rates going higher, the liquidity moving out, regarding reduction of the balance sheet so you're starting to see the yield curve actually invert. that's risk you have there we believe the fed will raise rates two more times therefore you could see a des l deceleration of u.s. growth, perhaps not in the next six months but looking out 12 months, we think the overall market will step back. >> i must have been asked on vacation every day by somebody about the yield curve this is what you do on vacation, i'm sure you get the same thing. whether or not the yield curve will invert, we will get shorter
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term yields above longer term yields, which is rare. and whether that will mean a recession is imminent or likely next year or in 2020 >> couple things to consider one, the federal reserve, we believe, will raise rates like i mentioned. the long-ended yield curve is not tethered to the federal reserve's call it's tethered to global growth you can see deceleration of global growth which will drive that inverpgsion you have banks that are actually funded by short end of the yield curve. if they are funded by the short end of the yield curve and lending long, it disincentive viz disincentives banks to lend. that's why you have this cycle -- >> because the inverted yield curve sort of tamps off credit they tighten the credit tap a bit. >> exactly right >> so you have higher rates, possibly inverted yield curve. all things that may tighten credit which means business
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investment gets put forward. that's why we care >> it decelerates business investment and lending we want to make money. everyone likes to make money say you own amazon, took, you say i want to buy something interesting, boring, why do you like jelly and beer? >> consumer staples have underperformed this year now you have this opportunity where they have come down quite a bit. so you want to turn around and look at values both of those companies are rising dividend stocks anheuser bush and smuckers are rising dividend stocks, well capitalized with consistent growth also look at hormel. you can look at pepsi as well as procter & gamble on the consumer st staple side. we are recommending moving up the quality spectrum >> thank you very much, chad morganlander getting a little safe there on the yield curve and some of
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these consumer stocks. let's get more on the top trending stories landon dowdy is back with those. >> you may talk about the yield curve on vacation, but tourists in florida are talking about something different. there's an invasion on florida's beaches, it's an overabundance of seaweed it could be the worst bloom in history. in small amounts seaweed is beneficial to beaches, but too much can smother sea turtle nests and smother fish the seaweed invasion could get worse. it's bad in north carolina it smells bad. causing a lot of sea lice >> is that a thing >> yes, it's -- >> seaweed is good, because it prevents beach erosion >> it is, but too much is a bad thing. a new jersey police department posting a mugshot on
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their facebook page, it's gone viral. look at this because it's more like a pugshot. the pug is named beans and was picked up running through private property and taken into custody. officers posted the dog's booking photo on facebook in hopes of finding its owner and it worked. beans was reunited with her family guess what her bail was? >> what? >> cookies >> that's nice i guess she wasn't wearing a dog tag. speaking of dogs, it's a national hot dog day, in honor of the holiday restaurants across the country are rolling out promos sonic wienerschnitzel hot dog on a stick and even 7-eleven. hot dog wednesday. >> they should coincide that day with the nathans hot dog i know it's july 4th >> barely missed it.
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>> but they should roll it in. >> it's the national hot dog council and sausage council. i didn't know there was a council. they decide this day >> national pet an eagle day now to the world of sports the american league defeated the national league in the all-star game the final score was 8-6. took ten innings the theme of the all-star game was home runs. players hit a record of ten blasts out of the ballpark all right. still ahead on "worldwide exchange." more on the big breaking news on google european regulators set to hit alphabet with a $5 billion antitrust fine is this the trade war that no one is talking about we'll talk about it coming up on "wex."
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prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life. welcome back glad to have you back with us. futures indicating a slightly higher jump at the open. not a big move up, but it's green. not red. the nasdaq could hit another record high today. amazon, facebook, microsoft, alphabet, these stocks continue to be the donkey pulling the entire market cart speaking of, let's look at the crypto commodity markets bitcoin making a big move yesterday. we're seeing it up again today nearly 1%. bitcoin not only back above 7,000, back above 7,300.
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we have breaking news likely on google european regulators reportedly ready to slap alphabet with a $5 billion antitrust fine over its android operating system shares of alphabet are down just over 1%. the eu's competition chief will hold a news conference this morning at 7:00 eastern time let's bring in the head of investment research at global data we have this big story here. european regulators likely to slap this $5 billion fine. i know 5 billion is not a lot for google is this more symbolic of things to come? >> i think it is in all the tech cycles they're doing well they're going to continue do well they're going to grow into their evaluations, but the one big
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theme that will be very big this year is regulation today we're seeing it from the eu commissioner, putting a potential $5 billion euro fine on google. they fined google 2.4 billion euros just a year ago on search neutrality a separate competitive issue this is on a different issue, which is essentially google forcing suppliers to use its own apps and services. but i think you will see more and more of this to come >> i don't know about over there, but here we are focused on trade war, trade conflict with china talking about tariffs on soybeans and washing machines. we have billions of dollars in fines being levied and likely to be levied on big cap u.s. technology companies is this the quiet trade war that not enough are talking about >> yeah. it reflects a fundamental
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difference between the way the europeans see anti-competitive law and the way the u.s. sees anti-competitive law in the u.s., they recently said they don't see big internet ecosystems as a problem because big internet ecosystems put everything together and give the customer a better service. what the eu is arguing today is let's put aside whether the customer gets a better, cheeper service and look at whether google is prohibiting innovators, european innovators from coming up in browsers, search engines, other apps that google is dominant in. it's a different approach. >> it's not just fines it's also the new privacy regulations that we talked about a couple of times. those will add regulatory cost burdens. that will drive the price of technology the price for a lot of this stuff is zero. but the back end cost may ultimately go up it's a bit of a regulatory
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hidden tariff, is it not >> yeah. i think data regulation is the one regulation that could really -- you know, one year ago everybody said gdpr was a historic regulation in the sense that it was yesterday's story. today everybody is saying that the eu is leading on gdpr because data is important. let's take one step back and see where this is going. when the internet was created, you know, everybody thought that actually there would be no monopolies on the internet because it was free, you would have competition if anybody did well, new entr t entrants would come in and nobody would make super normal profits. one thing was not foreseen that is that people made money on the internet essentially from advertising. leave aside netflix, the subscription model, the way to make money on the internet is advertising. that means you have to collect data on customers. that data, the europeans say that data is the property of the
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customer the consumer many of these tech companies, facebook, amazon, netflix, google, they considered that data the property of themselves. what we foresee at global data is that data will be segregated from software. so it's no longer owned by alphabet or facebook, it is owned by the consumer. and they can switch from one internet ecosystem to another. and if that happens these companies will be in trouble >> it's a big story. cyrus, pleasure to have you on. "squawk box," a bit of a different look today delivering alpha, becky quick. are you excited? >> i am. it's a good look, we're trying it on. welcome back good to see you. all day long we will be here at delivering alpha kicking things off with "squawk box" this morning. we have some great guest hosts marc lasry from avenue capital he likes chaos because chaos
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provides opportunities we'll ask him if he sees chaos approaching or if it's difficult to find deals now. we'll talk to him about the things he's been seeing. power was a big bet for him last year we'll talk about that. and we have oscar munoz, ceo of united continental that company came out with earnings that were better then expected we have an interview with mr. munoz this morning and we will talk to gene munster, an investor in tesla. he put out an open letter overnight to ae lelon musk. he says he has great faith in mr. musk, but in order for tesla to access capital markets, investors need to have great faith in him and his abilities to see things straight he pointed out that outburst at
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analysts back in the march conference call, he talked about some other issues like calling out the saboteur and having a twitter e-mail exchange with him, getting rattled about the short sellers in the media and the latest issue with the gentleman responsible for helping rescue those boys in the caves in thailand. he said maybe he needs to take a twitter sabbatical we will talk more with gene munster, big investor, big believer, but is advising elon musk to zip it >> big day a lot coming up. looking forward to it. see you soon. we are on washington watch we will talk about the president's big trip as well and why it doesn't seem to be impacting the market
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need a change of scenery? the kayak price forecast tool tells you whether to wait or book your flight now. so you can be confident you're getting the best price. giddyup! kayak. search one and done. another guest on delivering alpha, larry kudlow, former colleague, current friend, now president of the national economic council
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that's a big interview coming up staying with the white house and political news, the fallout continues today. the president walking back or trying to some remarks he made during a news conference with vladimir putin the president now saying he misspoke and say he did have reason to believe russia meddled in the 2016 election let's bring in ben white of politico the market doesn't seem to care. >> it doesn't. >> why not you have this juggernaut of a stock market, and this juggernaut of a political news cycle, they just live separately >> they do at one point they will crash into each other, i think >> you think so. >> i do. particularly on the trade front. that's more risky to markets than some of the trump/russia problems if you have 200 billion in chinese tariffs, 200 billion from the united states, that's something the market probably can't ignore >> the european union set to fine google $5 billion they're going after the tech
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companies. the point i tried to make is is this another angle or another trade war we're not talking enough about >> certainly the european union is looking to siphon money out of u.s. tech companies, perhaps cover some budgetary issues. yes, that's something the market will care about. on the trump front, the trade war has the potential to dislocate markets, but on russia, this matters to the political world, trump's political fortunes, but not enough to impact the stock market and economic growth >> but you believe that ultimately it will these worlds, these planets will at some point come together. >> worlds will collide >> when, why and how those are the questions. >> those are the questions, and i would be making more money if i knew those answers i will say that as the mueller probe heads towards an end game and gets closer to the president, you see more indictments come down, that will eventually impact the stock market as people try to figure out how much of a threat it is
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to the white house that's a period where you could see market dislocation the other is the escalation of trade wars if there's no way out for this administration and they get into a hot fire war with china, that's something the market has to react to. right now it's puzzling to people on wall street why this doesn't have an impact the news is generally good on jobs, growth, tax cuts, the fed not having to move too quickly on interest rates. it's a perfect scenario mostly for the stock market >> do you believe that the attention, the negative attention in many parts of the media around the president will trickle down to consumer confidence >> i think probably it will have to at some point people are going to do begin to worry about -- you see a president who is standing up next to vladimir putin and tabling basically his side on the hacking of the american electoral system and the 2016 presidential campaign that's unsettling to people. >> can i interrupt you for a second we got a presidential tweet.
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maybe he's watching cnbc here's the tweet so many people at the higher end of intelligence loved by press conference performance in he helsinki many haters wanted to see a boxing match big results will come. what do you make of that. >> i don't know who these people at the highest levels of the intelligence communities are who love that performance. i think they're mostly outraged by it. he rebuked all the work the fbi has done all the work these intelligence agencies have done to investigate what happened in 2016 the russians hacked our elections. no question that happened. he said he basically takes putin's word for it no matter this half-baked walk back which nobody took seriously. i do not think the intelligence community loves what he said >> ben white, we love what you said great analysis thanks for rolling with that breaking news.
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>> the rbi will come tomorrow. liriday for cnbc deveng alpha "worldwide exchange" is done "squawk box" is next are you ready to take your wifi to the next level?
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welcome to a special edition of "squawk box," live from the eighth annual delivers alpha conference in new york city. it's a who's who of the investor community with leading asset managers, institutional investors, and political power players gathering to talk about the biggest issues affecting the markets. it's wednesday, july 18th, 2018. "squawk box" begins right now. ♪ good morning, everybody.
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welcome to "squawk box" here on cnbc we are live from the eighth annual delivering alpha conference which is presented by cnbc and institutional investor. in becky qui i'm becky quick along with joe kernen and andrew ross sorkin. we have a big lineup of speakers at the conference including national economic council director larry kudlow. also mary erdoes, we will also hear from former white house strategist steve bannon. he will wrap things up for us this afternoon and this morning marc lasry will be joining us at 7:00 a.m. eastern time >> markets are still happening, even on -- i thought they would take a pause, they're not. let's check the markets on delivering alpha day now up 28 points on the dow. up two on the s&p. nasdaq


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