What caused bitcoin to plunge 1,000 bucks in minutes and the surprise winners and losers of the first democratic debate and what big topic surprisingly was missing its thursday, june 27th Worldwide Exchange begins right now. Afternoon, good evening and welcome from wherever in the world you may be watching. Im Brian Sullivan futures are higher on the dow. Your chart of the day already on this thursday has got to be bitcoin. If you have not been following it, its been a crazy 24 hours for the crypto all right. This is an intraday chart. 24hour chart of bitcoin yeah bitcoin right now is down 991 all right. We surged past 13,000 here almost touched or basically did hit 14,000 then news that the biggest bitcoin exchange, coinbase, had crashed. Nobody was able to trade on coinbase look at that in minutes, bitcoin fell to about 12,000 14,000 to 12,000 in minutes. Kind of tried to come back now weve been sliding throughout the Early Morning bitcoin down 7 or 1,000 a coin to 11,921. More on this minus a lot of these yellow lines coming up lets get to the macro market. Something youre probably more invested in, the stock market. Equity futures now are higher. Not a lot. Dow futures up 66. Those trade headlines about a possible truce are boosting markets now. Not a huge amount. The nasdaq and s p are up. The s p 500 now down for four straight days. But most major indexes are on pace for their best month since january. Unless we see a major drop in the next couple of days, the nasdaq is on pace for its 11th positive quarter in the past 12. Around the world, green arrows across the board in asia those trade truce talks boosting markets overseas japan and hong kong are up more than 1 . Europe again, similar story. A lot of green on the screen a lot of optimism going into the g20 meeting where the World Leaders landing. Our president expected to land within the hour. We are following a pair of big trade headlines today. First off, the South China Morning Post is reporting that the United States and china have tentatively agreed to a trade war truce ahead of this weekends g20 summit the details still sketchy. Sources say the deal would halt another round of tariffs on chinese goods. President trump expected to meet with chinas president this saturday at the g20. Separately, President Trump now blasting india after that country slapped higher tariffs on 28 u. S. Goods earlier this month. President trump calling those tariffs unacceptable busy day so lets get to it your first guest today says that the markets, the fed, the economy, they have something in common with gwyneth paltrow. Patrick armstrong is cio of plurmini Investment Managers if you can combine all of that and chris martin of coldplay and the gdp, its a win what are yo saying look back over the last two, three years, the fed fund futures and the consensus growth for the United States have moved in lock step with each other until the last six months, then they consciously decoupled, or uncoupled as were Gwyneth Paltrows words were one of those has to give i think this weekend well either have lower gdp estimates or well have to see some of these three or four fed cuts that the market is pricing in. I think well probably have to take some of those off the table if we see progress on trade. Well see a recoupling of gdp and fed fund futures, not so much with gwyneth. There you go. I like what you did there who will be right . Do you think the bond market may have it wrong . The bond market on tenyear is probably we think theyll stay around 2 i think fed fund futures are pricing in a too negative situation for growth or too dovish for the fed even if you look at bullard, up with of the most dovish members of the fed, hes talking down 50 basis points a lot of Market Participants were looking at 50 basis points for july markets are pricing in three cuts this year i dont see it i think if we move into a vegs, y recession, we get three cuts we expect the trade truce is enough to keep a sub trend growth do you think theres a relationship between trade and the Federal Reserve . The irony might be if we get a deal, that would be good for the equity markets in the shortterm, but it might take the fed cut story off the table. Yeah. I think the longterm driver of equities cant just be the fed though shortterm definitely everything is rallying. When the alternative is zero interest rates, you have to put your money to work somewhere things that are pro growth eventually will be translate nothing higher equity prices i think its a win for equities if we do get the trade deal. I guess one could have argued a couple years ago that this cant be a fed driven market five years ago, yet here we are still a fed driven market maybe even more than a couple years ago. Does the fed ever really step aside . Im not sure. It was looking like they were going to in 2018 the weak q4 pulled them back in to stabilized markets. Now its what markets are hanging on to. This week, we started to buy some Internet Companies out of china again. The premise is that we get a deal if we dont, powell comes to the rescue so i think everyone is pricing in this powell put. The fed indicated they are there. If theres tensions on trade a market selloff, its probably got people too complacent, but it is the fed driving markets now. All of the Central Banks have to compete with that. Draghi just before the fed meeting last week indicated hes ready to cut to make sure the euro doesnt appreciate against the backdrop of a dovish fed patrick armstrong, conscious uncoupling, the phrase of the day. Thank you very much. When we come back, no quick fix. New problems for boeings troubled 737 max and new york apparently so last year the one surprising city that has become a new hot spot for fintech. Later, why bitcoin invest verse got to break out the dramamine the latest trade if you own bitcoin, maybe go rba aerhid. Wee ckft ts. Moving is hard. No kidding. But moving your internet and tv . Thats easy. Easy . easy . Easy. Because now xfinity lets you transfer your Service Online in just about a minute with a few simple steps. Really . Really. That was easy. Yup. Plus, with twohour appointment windows, its all on your schedule. Awesome. Now all you have to do is move. That thing. [ sigh ] introducing an easier way to move with xfinity. Its just another way were working to make your life simple, easy, awesome. Go to xfinity. Com moving to get started. Welcome back in. Good morning we are following a developing story on boeing. The company and the faa discovering a new Software Glitch on the 737 max that could keep that plane grounded for longer lets get more details now this new issue was found during simulator tests last week reports say it involved a Software Glitch that is separate from boeings faulty Flight Control system this new flaw is related to a procedure that pilots can use in the event of an emergency. Nbc news saying boeing traced the issue to a microchip boeing believes it can fix the problem with the Software Upgrade but theres a chance that boeing would have to replace that chip in all 500 max planes that have already been built or delivered that could further delay the aircrafts return to service the 737 has been pulled from schedules through labor day. Look at the stock premarket. Its down slightly more than 1 . Perhaps not as much as you would expect given the news. Investors may be looking out way in the distance and hoping for resolution but not the news that boeing or investors had hoped for. On deck, the one major city that is becoming the muststop destination for fintech startups. And ishgs can cahn on the aa hes doing to shake up or shakedown an Energy Powerhouse the first survivor of alzheimers disease is out there. And the Alzheimers Association is going to make it happen. But we wont get there without you. Visit alz. Org to join the fight. Theres a live look at osaka, japan weve had a number of World Leaders already arrive for the g20. Within the next hour we could see President Trump arriving at that airport not the best of weather days welcome back the hottest part of Venture Investing now is in fintech, Financial Technology new york had been seen as the forefront of that multibillion dollar movement. But there may be another major city, london, that takes the title out from under us. Joining us now is eileen burbridge. She joins us now from london great to have you on Worldwide Exchange. All we hear about here is how miserable things are, brexit, the economy is on the verge of collapse you guys are finding lots of places to invest how and why . Absolutely. I was going to take issue with your intro, i think london has been the leader for fintech for five, six years. I dont think its ever been new york im sorry, youll probably never have me on again london has been one of the two largest Financial Centers of the world with new york. Then we actually have a much larger Software Culture here we have larger Head Quarters for the engineering teams of google, facebook, amazon on top of that we have a progressive regulato based in london. We always had a combination of san francisco, the bay area, new york, and d. C. , almost as if its all in the same city. Thats why i think london has been leading in fintech. Youre welcome back any time because that was the most polite disagreement ive ever had ive been in england ill knock that area, and i will include my ancient peoples ireland in that as well. Separate nation, but i normally thought of that region more i dont mean this insultingly as the back office, particularly the dublin area. Theyre not creating the technology, theyre servicing. Im clearly wrong about that as well, correct . Im not going to disrespect your ann zesters eancestors atl but i think the uk with leeds, manchester and london where 50 of the fintech output is coming from, we have a huge Financial Services sector and fintech pulling in 5 billion in recenvr funding. We have really great output here because of how progressive regulators have been and how great its been to passport across europe. Thats twice you mentioned progressive regulators i dont need to tell you whats going on here. D. C. Is going after big tech over there you are loosening up . Its not loosening up, but its true, the regulator here is the most progressive regulator in the world its the only regime where you have a Financial Services regulator that includes innovation in its mandate. We know the reason why that is they werent happy after the 2007 2008 financial crisis they wanted resilience back in banking, they didnt want to have to bail out the four largest banks again, they said how will we increase innovation and competition. Thats what is really supporting the startups because we had a large Financial Services sector you had people fed up with inefficiencies and saying i can apply tech to what ive been trying to do daytoday and make a much more valuable company you are in the capital of england, but this little thing called brexit, has it been more difficult to access Investor Capital given that or are people still putting money to work and saying whatever happens, technology will roll on no. Id be lying if i were saying it didnt bring up difficult conversations. Brexit has been a distraction. It gives people pause. It means we have to talk about whether or not uk companies, if they need a Regulatory Approval will passport into the European Union after we leave but it still hasnt dampened investor enthusiasm. Thats why i pointed out 5 billion coming in the first half of this year into fintech is great. It surpasses that of last year and the year before. Last year it was about 3 billion for the entire year. While it does cause people to have longer conversations about what the future might hold, it hasnt dampened enthusiasm i think well come out of brexit as strong on the fintech side. Eileen, a wonderful debate. Just so polite we appreciate it youre welcome back any time i promise. Thanks, brian still to come, is there an inhehe investing dla in the hooe house . Look at this chart do you think you know who it is . And one stock set to pop at the enop and who invests have to thank. Well reveal both names when Worldwide Exchange returns welcome back the big money headlines involve oil, Home Building and drugstores carl icahn stepping up his fight against occidental petroleums board. He will call a special meeting to replace nearly half of the directors. Icahn sued occidental last month over their deal with anadarko. Shares of kb home on the move theyre higher the home builder reporting better than expected Second Quarter profit and revenue driven by double digit growth in orders however the average selling price of one of kb homeshome ho fell by 8 this is the disaster of the year riteaid shares sinking again. It follows disappointeding resuthe drugstore chain has been crushed over the past year with that stock down 80 in 12 months. Used to be a multibillion dollar company. That stock down 11 right now. It signed a partnership with amazon to maybe help people pick up packages at the stores. But not helping. That is a tough looking stock on a rainy thursday morning. When we come back, the surprise winners and losers from last nights debate and the one big topic that nobody seemed to want to talk about how come then the incredible, insane bitcoin ride over the past 24 hours. Well show is to you tick by tick and the big slide that may send you back to bed. And later on, a possible u. S. china trade truce juicing markets this morning as the president gets set to land in osaka, japan eas a busy 30 minutes still ahd when Worldwide Exchange returns. Unpredictable crohns symptoms following you . For adults with moderately to severely active crohns disease, stelara® works differently. Studies showed relief and remission, with dosing every 8 weeks. Stelara® may lower your ability to fight infections and may increase your risk of infections and cancer. Some serious infections require hospitalization. Before treatment, get tested for tb. Tell your doctor if you have an infection or flulike symptoms or sores, have had cancer, or develop new skin growths, or if anyone in your house needs or recently had a vaccine. Alert your doctor of new or worsening problems, including headaches, seizures, confusion and vision problems. These may be signs of a rare, potentially fatal brain condition. Some serious allergic reactions and lung inflammation can occur. Talk to your doctor today, and learn how janssen can help you explore cost support options. Remission can start with stelara®. A trade truce . The u. S. And china putting the trade fight on hold ahead of the g20 meeting. President trump is about to land in japan for that big summit the moment he does you will see it. The first debate in the books. Who were the surprise winners and losers and what big topic that we talk about every day was all but ignored. And bitcoin all over the place the last 24 hours. Well show you whats happening now and it is ugly its thursday, june 27th youre watching Worldwide Exchange on cnbc. Welcome back people not crazy in love with bitcoin right now. Well show that you in a second. Hi, everybody. Welcome back to Worldwide Exchange. Im Brian Sullivan heres how your money and investments look theres been reports out there that possibly china and the u. S. Are willing to have some kind of a trade detente or a trade truce for a couple days at g20 while they try to work out their differences here we are seeing dow futures up 82 points they have gained a bit over the last 10, 15 minutes. We are green across the screen in asia, that report also moving the markets. Japan and hong kong the big winners. The hang seng up 1. 4 . Green in europe. Any talk, anyhint of a trade truce sending markets up you have the fed, the ecb and the Chinese Central Bank all stimulating and easing as well the perfect storm. Maybe thats why we have these record highs benchmark yields, nothing changed. Still a hair above 2 . Oil slightly lower now still hovering around 60 bucks a barrel crude up more than 4 in the week theres a big opec meeting monday and tuesday tuesday it involves russia likely to be contentious you have the 1 1. 2 million barre a day Production Cut and you have this little issue of iran them and the saudis have been at odds for a long time could be a contentious meeting in vienna next week. We will be there the move, maybe the chart over the last 24 hours has to be bitcoin. This is a 24hour chart of bitcoin here folks, this is not a misprint. Bitcoin right now is down 1,500 a coin a 12 drop heres what happened we saw bitcoin start to rise yesterday morning. This is noon we briefly hit about 14,000 on bitcoin. Then news that Crypto Currency Exchange coinbase had crashed. As coinbase went down, so did bitcoin. Thats about the 12,000 mark it went from 14,000 to 12,000 in a matter of minutes. A lot on the screen. Bitcoin tried to rally but guess what invest selliors selling out. We are at 11,385 you can watch well sit here and watch bitcoin go down. Its literally moving as we speak off 1500 bucks to 11,400 well put bitcoins massive run up in maybe an easier way to understand involving the stock market it is your morning rbi i think its a good one. Stick around the economy, taxes, and healthcare, which is the economy, all taking center stage at last nights first democratic president ial debate. Lets get a wrap up from ylan mui. The pundits will argue over who won this debate and tin the and weeks to come but its clear who lost last night. Thats Corporate America almost every candidate took a shot at big business last night saying theyre too powerful, have too much influence, not enough oversight and they promised to change that. Right now we have a system that favors those who can pay for access and outcomes. Thats how you explain an economy that is rigged to corporations and to the wealthiest halliburton or amazon pay nothing in taxes i want to change that. I want to return government to the people and that means calling out the names and saying i have the courage to go after them pharma thinks they own washington they dont own me. All right ylan mui will join us in a few minutes as well as john harwood with his insight and analysis. Who were the surprise winners . Was it castro . Maybe it was bourque we will dive in on that in a couple moments lets bring in a man who has no shortage of opinions, jimmy every day im waiting and waiting, where was the tidialoge about the massive trade fight last night it was almost ignored. Almost the number one issue facing the United States and the Global Economy now almost nothing the only person who talked a bit about it was Elizabeth Warren. She didnt sound different than the president. She was talking about the need to make everything in the United States she wants all the good jobs here does she want all those iphones made in fremont, california . It kind of sounded like she did. Just like trump. Listen, if you talk about trade, you have to talk about politics the election was really won in a few counties in wisconsin and pennsylvania and maybe in michigan particularly in lower wisconsin. They may not care about trade. Youre speaking to somebody who parttime lives in wisconsin for part of the year they may not care about trade but they care about jobs, they care about manufacturing jobs. They care about middle class wages and sending their kids to college. Thats the connection. I was very surprised that was not a hotter topic it really was strange one has to wonder all right so people view the tariffs maybe as a mechanism for getting those jobs back here i have to wonder if a lot of those democrats were thinking, boy, trump beat us to it trump beat us to the tariffs maybe theyre working, maybe theyre not. Maybe theyre going to raise prices they seem to have gotten chinas attention. At least its a plan i dont think the democrats have a plan on that front they were asked if they would go back and join that old pacific trade deal which trump pulled out of a lot of them dont want to do that what do they want to do . Only two of them want to kill private insurance. Medicare for all, would you like to do away with private insurance . Only two of them raised their hand on that healthcare in many ways is the economy. Like it or hate it, its a trillion plus dollar business in the United States. What did you make of that lack of hand raise or the two hands that were raised i think it shows you most candidates understand the risk of telling people who are happy with their Health Insurance, people who have Health Insurance through hatheir company that wel take that away and try something different. Im sure ultimately that is how President Trump is going to respond to the democrats and their plans. Hell say assuming were not in recession, the jobless rate is the lowest in 50 years democrats are proposing a lot of risky schemes that would change that Elizabeth Warren wants structural change in the economy when the Unemployment Rate is like 4 or less . That may seem risky to voters. Heres the other part as well dont know if people like private Health Insurance or not. You get bills and you think what the heck do i pay for with the deductible going up every year i get a 900 bill for stitches outside of insurance two elements are at work people largely im not saying its right, distrust the government to do things well, but also its a jobs story its a trillion dollar industry. Theres hundreds of thousands of jobs involved in private Health Insurance. Many of which are back office jobs in states like wisconsin like michigan. Like pennsylvania and ohio the states that matter great point i thought it was interesting that those kinds of tradeoffs, those second and Third Order Effects of putting in like big plans, whether its healthcare or something else, those were not generally considered by the candidates the one person i heard address that was john delaney there maryland, who was talking about the impact of medicare for all on hospitals that kind of thinking through the problem beyond the obvious, i rarely heard that. Delaney talked about it then they quit calling on him hes the only former ceo. He was involved in healthcare finance. We interviewed him many times. I dont know what chances mr. Delaney has, but i wonder will those largely long thought through answers, will they play with the electorate . I dont know. Its not a sound bite, but he sounded like a guy who had the receipts well said im not sure well do this again tomorrow morning, jimmy pet, thank you very muc pethokoukis, thank you very much new reports that china and the United States may be hitting the pause button a little detente, smiling around the trade fight. Thats all ahead of this weekends g20 summit. And a pump alert if youre hitting the roads this fourth of july, well break down how much it might cost you to fill it up and the impact of that philadelphia refinery going offline forever. My mom washes the dishes. Before she puts them in the dishwasher. So what does the dishwasher do . Cascade platinum does the work for you, prewashing and removing stuckon foods, the first time. Wow, thats clean cascade platinum. Theres a live shot of a rainy osaka, japan thats the scene of the g20 summit the timing is friday and saturday much of the summit will take place over the weekend by the way, that is the saudi delegation plane there are reports that the Energy Minister for saudi arabia, we know he will be in japan. I dont know if he came with the official delegation. But he is scheduled to meet with the russian oil minister, Alexander Novak at g20 all of this ahead of the opec meeting which begins on monday you have a saudi russia meeting ahead of the meeting where they meet again on tuesday its the meeting before the meeting before the meeting staying with oil now lets talk about where we will stand and what is likely to happen next week at opec and the unlikely and fragile alliances joining us is kevin berry from captrust its great to have you on. Well be at opec next week when we speak to the ministers, there is a viewpoint im not speaking for all of them but theres a viewpoint that they believe the Permian Oil Boom will be temporary, well drain the oil faster than we think and theyll go back to being in charge, if you will. What do you think of that argument i think they tell it to themselves so they feel better about whats happening the reality is we have a much lower cost we make money at 40 oil they make money at 85 oil that cost advantage is fantastic. We were talking in february. We mentioned that one of the constraints on increased production was the pipeline. No way to get the oil out cant pump more if theres no way to put it. Three pipelines opening this year three more next year its looking worse theyll have to repeat that several times to themselves to make themselves feeling better one of the reasons that my sources say oil has not moved much higher on the iran tensions is that you have 12. 5, 13 Million Barrels a day of u. S. Oil that is largely geopolitically riskfree and the pipelines bring it to the ports. The ports are ready to go with it you have the advantage of cost, cheaper capital, better logistics. I think the United States is in a much better position the Permian Basin has had plenty of oil for years and years the constraint now might be its hard to raise money for these firms. So you read my mind or my notes. The Permian Basin has a lot of oil, it also has a lot of debt is debt the biggest threat to the u. S. Oil boom . Debt and the Oil Companies themselves so Oil Companies as a whole remind me of airlines. Airlines for years and years didnt make money. Every four or five years they would go bankrupt. Airlines would enter, prices would come down. Feels like this to me. The oil theres been a lack of discipline and capital. Were starting to see the banks pull back. The fed is getting tighter with regulations on bank lending. These guys have taken in 200 billion in capital and lost 250. The fact that theyre able to raise money for wall street, the fact that the banks are coming down more. Its better for the longer term. Arent we aligned with opec the saudis would like higher prices they want mid 80s to fund their government and social programs ironically we might want higher prices as well im sure everyone makes a little money at 70. 70 would be terrific. Gas prices would be below 3. 25 and we would get more capex. Kevin, good stuff appreciate it. See you soon. We have live pictures, air force one has just landed at Osaka International airport. President trump there for the start of the g20 summit. Now the president will travel directly from here to a bir bilateral dinner with the australian delegation. The rain has lifted somewhat Kayla Tausche is there for you for cnbc we will hear from her all day long President Trump landing safely at Osaka International airport. On deck, from boom to bust to boom again to bust this morning. The wild stat about bitcoins breakout that compares bitcoin to the stock market and may put the whole thing into a perspective that you will say hey Worldwide Exchange, that was really rdoanm but interesting. Were back after this. Welcome back President Trump just landing at Osaka International airport. Air force one. It is parked you see the jetway being rolled out, the staircase it was pouring rain there. At least it was. Kayla tausche is traveling to osaka, japan for the g20 she joins us now brian, theres a Tropical Cyclone condition here in japan as President Trump touches down in osaka for his third g20 as president. Officially the Themes Center on Economic Growth and trade. Unofficially all of these World Leaders want face time with President Trump to talk about Foreign Policy and their own trade issues with the United States and to ask what his plan is with regard to iran and north korea. Even the papers here say that. World leaders bilateral talks will overshadow the g20 as a whole is one headline. There are 24 hours of official meetings that kick off there will be four meetings with all 20 leaders in them President Trump alone has eight bilateral meetings the one with president xi that people are most interested in to see if there is a truce announced with trade President Trump shortly after that meeting will be holding a press conference on saturday then well see who he signs on to this joint communique the white house tells us that it intends to have President Trump sign off on that depending on the language reached they did reach a consensus in december that resulted in that trade truce with china back then the language that was included in the joint communique talked about the value in multilateral trading organizations. But it removed language that was against protectionism. So that will certainly be something to watch, if that language gets added back in and how specifically countries talk about trade. Because there is so much divergence between how the majority of the g20 views trade globally and the benefits of free trade versus how President Trump pursued his own trade agenda hes just coming off a 12hour trip with a refueling stop in alaska he talked about the democratic debate there he is traveling with many of his economic advisers who will have his ear as he goes into the meetings President Trump talking a few minutes to tweet about the democratic debates boring with a bunch of exclamation points i would imagine the g20 will not be boring. Theres a lot of story lines out there. Where do you think well see the most fireworks i dont think you will see a ton of fire works this time around for a few key reasons number one, japan is hosting this summit. Prime minister abe has traveled around the world hes specifically asked Prime Minister trudeau of canada and chancellor merkel in germany to not distance President Trump from the multilateral organizations. To try to prove the value of them and the value of some of these group summits which President Trump so far has not seen the value of. Abe has done this outreach to keep President Trump at the table. Then theres the fact that President Trump generally is more popular here in japan than in europe. The fact that you wont see protests because thats not really in line with Japanese Culture here Kayla Tausche in osaka, appreciate it. Thank you very much. I know youre not in front of a computer, we have headlines just crossing from china. Dow jones moments ago with a few headlines of importance. Dow jones reporting that president xi will present President Trump with specific terms that would settle the trade fight. Among those conditions according to dow jones one of them, it would be lifting the ban on huawei. China also wants us to remove punitive tariffs according to dow jones, the terms will be discussed on saturday dow jones coming out and saying president xi jinping will present President Trump with a specialist of terms that could end this trade fight one of which is mroefi inremovi blacklist and the backing of huawei we go live to london for our linda, i know youre following trade keenly do you think this is sort of an olive branch or are these terms unlikely to be met and could provide more of a schism i think its possible if President Trumps trump and xi meet they will end up with a truce. Thats what happened at the last g20. I think china is setting out first saying what they dont want is 25 tariffs on chinese imports into the United States certainly not on all chinese imports. The huawei thing is a direct reminder of argentina and the last g20 summit. The chinese and americans thought they were getting somewhere and the chinese returned home and found the cfo of huawei, who was in canada, was detained under house arrest. In other words, they know this set of trade talk s is broader than trade its about huawei and investment theyre saying these are what we want if you agree, we can make some progress im sure the u. S. Will have things they want before they go back to the negotiating table. Im sure theyll smile in front of the camera. What do you think will happen behind the scenes . Can the two sides come to any kind of agreement . I think theres a good chance there will be a truce. The reason is both president s xi and trump have economic reasons for wanting this america has a 2020 election coming up. We saw that with the first democratic debates thats heating up. Next year is president xi promised modest prosperity for his people so the shortterm economic damage will mean both sides will want to come to a truce or an agreement so they can resolve this phase of the trade talks. But the sticking points will be the same ones weve had when the trade talks didnt progress. For instance, they want to have the americans want legal changes in china to ensure that chinese promises are kept. China is seeing themselves being forced to open up more of their market they dont see an equivalent opening from the United States now of course thats because america is already more open than china politically thats hard for the chinese leadership to stomach. I would say those are the two things, if they can politically stomach getting that across the line, then i think theres a lot of economic reasons to do a deal linda, not a lot of time left if we do get a deal, hey, we have a deal, we worked it out, do we immediately raise our global gdp estimates yeah. The uncertainty would lift the best we could hope for is we come to an agreement theres a truce, they have 90 days to talk maybe at the end of the 90 days they come to an agreement that they can move forward on whether or not that really gets results, but the markets will be leaved that some uncertainty is lifted we are look at live picture now of President Trump departing air force one in osaka, japan. You heard Kayla Tausche say there is a Tropical Cyclone moving through landing in Stormy Weather. We will see if this meeting will be Stormy Weather or well see sunshine break through in those trade negotiations those dow jones headlines saying the chinese will present trump with a specialist of terms to end that trade fight well see if the two sides can come together. What if they do . What happens to the equity markets . Lets bring in mark tepper we talk about record highs, earnings estimates i want to ask you, trade matters. It matters to a lot of companies no doubt that you own. As a fund manager, if we get great break through from the weekend meeting, is that the all clear to buy more stock . Absolutely. Right now without a trade deal theres no Way Companies will hit their earnings expectations on the back half of this year. The street still expecting double digit Earnings Growth in the second half of 2019. Quite frankly theres no way that happens if were engaged in a trade war and theres tariffs in place ceos have no visibility to execute on plans if theres a trade deal, that would certainly help without the trade deal, earnings estimates will come down thats going to exert downward pressure on stocks we want to see some progress on the trade front. However i think trump also wants to make sure he gets both a rate cut and a trade deal so he has to be strategic about it that, to me, is the really fascinating story line this market is so beholden to our fed. We hear it every day on cnbc if we get a trade deal, does that make it less likely that the fed cuts rates yes so we lose by winning right absolutely thats the concern thats why trump has to be strategic about how he goes about this if theres a fed meeting, theres a chance he doesnt cut. He will have to slow play the trade deal until after they cut so he can get the fed to cut by maybe 25 basis points, we can also get a trade deal. As it stands now with no trade deal in place, the markets are expecting basically three cuts this year. If we get the trade deal done before the fed cuts, maybe thats off the table all of the benefits from us actually agreeing to a trade deal could be offset by the fed taking themselves out of the running to actually move this market mark tepper, the president may have to be strategic and you were, mark thank you very much. All right. As we noted, President Trump landing in osaka, japan. Dow futures are up 27. Bitcoin, another big story last check, bitcoin was down 1500 trade, trump, the g20, everything in between coming up on squawk box. Have a great day good morning President Trump arriving in osaka, japan just moments ago for the g20 meeting. And oneonone with president xi on saturday. A new report says that china will present the u. S. With terms to settle the trade war. Details are straight ahead and forget the quick fix the faa is identifying a new potential problem with boeing 737 max jets well tell you how it could change the timeline for the planes return to the skies. And highlights from last nights democratic president ial debate well show you what the candidates said about healthcare, the economy and big business its thursday, june 27, 2019 squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning welcome to squawk box on cnbc. We are live from the Nasdaq Market site in times square. Im becky quick along with joe kernen and andrew ross sorkin. Lets check out the u. S. Equity futures. The picture for the markets was mixed yesterday. We have been looking at green arrows this morning. Weve seen moderation of those advances as we hear the news that well be talking about about president xi planning to present terms to President Trump in osaka for what it would take to bring them back to talks. Futures have given back some gains. Dow futures indicated up by 16 points