Earnings report. Were digging into the numbers on that and much more. Its primetime for lady gaga the pop superstar teaming up with the Worlds Largest online retailer its wednesday, july 10th. Worldwide exchange begins right now. Good morning and welcome to worWorldwide Exchange. Im Courtney Ragan in for Brian Sullivan stock points to another loss for the dow. This would be four straight losses if we tack on to this session. The dow more than half a percent off of its record high the s p 500 and the nasdaq also indicating a lower open. We know we have a number of hours still to go. Lets get a check on whats going on in the bond market. You can see the yield on the ten year, 2. 108. Its actually quite a move from what we saw on july 3rd when we were at 2 1 2 year lows there at 1. 9 and change that jobs report really changed a lot. Lets go worldwide and check and see what happened around the world while perhapsyou were sleeping overnight in asia you can see we had a mixed picture. The japanese nikkei down slightly the shanghai composite down shy of half a percent. They did tack on some gains. As the world waits for jay powell take a look at europe. At least right now its a sea of red except for italy stronger by 3 4 of a point again, also european markets really hinging on whats going to happen today on capitol hill with the fed chairman. Thats the big focus he heads to capitol hill today later this morning hes going to be testifying before the House Financial Services committee this is the first day of two days of testimony so what do investors want to hear joining me now is dan beru, chief Investment Officer at palisade capital management. Dan, it seems like everyone is expecting that we are going to get a quarter of a point drop in Interest Rates when the Federal Reserve meets at the end of the month. Is there anything that jay powell can say today to sort of change Investor Sentiment . I think that if he well, hes got to do a quarter point because its so, so much expected i actually think hes got a good indication that theres a further quarter of a point drop in rates on a Going Forward basis as more of an insurance measure against whats likely a continuing weakening backdrop on a global basis and i think thats what hes got to contend with. You have german bunds now with a negative 30 basis point yield. I think everything is relative from an Interest Rate standpoint the United States looks like a deal. Slowing Economic Growth tends to be something not only our markets are focused on but so is the Federal Reserve. Theyre paying attention to the Global Market which seems worst off than what were dealing with in the United States i think its very significant. We also have to look at the dollar relative to other currencies around the world, too. Thats also going to be something that investors should be focused on as well. I think theres going to be an attempt on the feds part to somewhat cool the dollar down a little bit relative to other currencies because that will be very important to stimulating and keeping Growth Prospects looking positive in the United States thats important, of course, for whats going on with trade as well . Thats right. Thats exactly right because were in this period right now where the trade uncertainties are just weighing so heavily on global economies so far the United States has escaped some of that weakness but were coming into the period of the earnings confessional right now. We havent really started it yesterd yet. Were seeing the preannouncements. Thats going to be critical, not just what earnings are but what ceos say about the future. While were in the Holding Pattern for holdings and we dont know exactly what the fed chairman is going to say today, we have a pretty good idea what we think the market expects, what would you be advising your clients to do with the Market Positioning . You cant let the short term cloud a longer term strategy were going to get through this period of time i do believe there is a trade deal down the road its taken longer than what i would have expected and what most people would expect, but so far the u. S. Has remained a beacon of strength in an otherwise worsening Global Growth standpoint. From the stand point of strategies visavis trade, we still seem to be and still have somewhat the upper hand. If there is a trade deal, i would assume the market in general overall will go higher, but there could be certain sectors that would benefit more than others . Yes. Any suggestions there for how investors should be looking at that we still see a lot of value in areas fliek nansales. I mean, you think that that would if we do get a brightening picture on a Global Growth standpoint, financials should have a pretty good ride we should see a steepening yield curve. Clearly industrials, those stocks, the economic sensitive names should also do quite well in that kind of an environment, particularly if you lift the a haze over the growth. Interesting things to chew on thank you for joining us here. Yes. Early off in the day here when we come back, tech in the cross hairs as trade tensions continue to linger. Well go live to one of the Worlds LargestTechnology Conferences in hong kong to see what investors are saying. Then levi strauss ceo tries to soothe investors following a rough earnings report. Well tell you whats driving that stock lower. Later, its the one where netflixs pain could be at ts gain a very busy hour still ahead when Worldwide Exchange returns. Causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. Healthier brain. Better life. Rainy, cloudy deal in hong kong a possible step forward in the u. S. chinese talk negotiations they continue to work out a trade deal people close to the conversation say both sides will continue talks but existing tariffs could be the, quote, new normal. Sticking with trade, it continues to be a huge focus on a major tech conference underway currently in hong kong thats where we find our very own argen carpal whats the talk of the town at the tech conference . Well, cloudy day here in hong kong the big cloud hanging over this tech conference is, of course, this trade story between the u. S. And china ive had a chance to catch up with some really Big Technology players that are concerned with whats going on with this trade ongoing trade dispute between the u. S. And china one of them is cisco that has operations in china. I had a chance to catch up with the cio. Lets listen in to what he had to say trade wars dont benefit anybody, and we have to acknowledge that because when you deal with a program like i run called Country Digital acceleration where youre dealing with governments that have fixed budgets for 5g deployment and a number of other areas, if you have a trade war, then those prices just increase and it unnecessarily con strains their ability to do things like put in 5g networks so clearly theyre guided there by cisco saying this could impact the rollout of 5g ive been looking at other areas where it has been affecting areas on both sides between the u. S. And china we saw a huge plunge in vc investment in Tech Companies over there in the Second Quarter. A lot of the vcs i spoke to attributed this to the ground. You see a lot of pain from the semiconductor firms particularly after huawei was put on the u. S. Black list some of the companies were not allowed to sell to that company. Of course, theres been a sense of reprieve now. The u. S. And china have gotten back to the negotiating table. You heard the umpt s. Administration saying it would relax some of the restrictions on huawei. Thats certainly welcome even as the u. S. China trade talks resume, even after they relax on huawei, trade top of mind courtney, back to you. Arjun, huawei really caught in the cross hairs of this trade dispute. You mentioned those reports about relaxing perhaps certain bans on huawei, at least this is what were hearing out of the Trump Administration can you tell us a little bit more of those details . You suggested this is the case but do we know why or what kind of relaxations may be in place, the implications, anything more you can tell us there . Reporter well, the administration is able to suggest that they would allow u. S. Companies to sell to huawei as long as their components that theyre selling did not present any kind of National Security risk to the u. S. I think thats where a lot of questions are going to arise now. What actually counts as a National Security threat, it wasnt very clearly defined. Its also important that huawei is still on this entity list which essentially means that companies will keep requiring licenses to be able to sell to it so its not seems like a huge relaxation but there does seem to be positive signs that the u. S. Is going to let at least some of those companies sell, potentially qualcomm, intel. Still a lot of questions over that the other big black cloudy guess hanging over the discussions as well is how long this sense of relaxation might last. If the trade talks end up going south over the coming weeks, that could then see the u. S. Put pressure back on huawei. A lot of questions that investors and the companies are going to be asking the u. S. Administration. Interesting stuff i also think its good that we are actually hearing executives talk about their thoughts on trade. I think in the beginning there was so much apprehension on the point of executives to really say anything about trade for fear of also getting kind of caught in the cross hairs. But im glad cisco and others are speaking with you. Thank you very much, arjun. Still on deck, why tivo shares are catching a bid this morning. The Company Behind run, vicks,ur ht are about to hit a huge milestone well explain that next. Stick with us. Did you know you can save money by using dish soap to clean grease on more than dishes . Using multiple cleaners on grease can be expensive, and sometimes ineffective. For better value, tackle grease with dawn ultra. Dawn is for more than just dishes. It provides 3x more grease cleaning power per drop, which cuts through tough kitchen messes, pretreats laundry stains, and even tackles grease buildup on car rims. Tackle tough greasy messes around your home, and save money with dawn ultra. Brand power. Helping you better. Picture of new york city which states put it altogether for businesses and which ones dont . Cnbcs exclusive study puts all 50 states through the test through more than 60 metrics in 10 categories. The big reveal is today at 8 30 a. M. Eastern time. You really dont want to miss it this is the gift that keeps on giving all year round for cnbc top states revealed at 8 30 a. M. Big moves today in the early going. Levis reported a drop in Second Quarter profit due to the ipo in march. They had higher advertising expenses earnings and revenue did beat forecast shares are down by more than 6 in the early going as the company says sales growth will grow in the second half of the year on weakness in the wholesale business and as it wraps up the fiscal year ahead of black friday. Its a very big day for retail helen of troy, that stock is up more than 8 near its 52week high after it reported better than expected First Quarter sales. Helen of troy owns braun, vicks, pert shampoo it raised the Sales Guidance for the year you can see the bump up in shares in the early going. Shares of tmobile are getting a boost. They will replace red hat in the s p 500 before the start of trading on july 15th ibm completed its 34 billion deal to buy red hat yesterday. Shares of tmobile are up by almost 4 . Still to come here on Worldwide Exchange, a big bet and a bold call on crypto from two pioneers in the space. Plus, straight to voicemail. The one wireless provider that says its happening up on the annoying robo calls. Thank goodness were back in two minutes. When you have nausea, heartburn, indigestion, upset stomach, diarrhea try new pepto liquicaps for fast relief and ultracoating. Nausea, heartburn, indigestion, upset stomach, diarrhea get powerful relief with new pepto bismol liquicaps. Welcome back to Worldwide Exchange. If youre just waking up, you can see futures are pointing to a lower open weve improved in the last 20 minutes or so. Dow jones industrials pointing to a lower open by 23 points s p 500 down by 4 and the nasdaq lower by 11. 5 points at this point we have a number of hours to go until that opening bell sounds. New developments on billionaire Jeffrey Epstein who is facing sex trafficking charges. Nbcs sarah dallof is in washington with the details. Good morning, sarah. Reporter good morning, courtney the president speaking out about his labor secretary who is involved in this case saying he feels badly for him but that he does plan to look and get a closer look at a 2008 plea deal brokered by the labor secretary. This morning labor secretary alex acosta under mounting political pressure. Thank you very much. Reporter the president saying hell be looking very closely at acostas handling of a controversial case involving Jeffrey Epstein. I can only say this from what i know and what i do know is that hes been a great really great secretary of labor the rest of it well have to look at. Reporter epstein is now sitting in a manhattan jail cell after pleading not guilty to sex trafficking charges in new york. In 2008 he cut a widely criticized plea deal with u. S. Attorney alex acosta allowing him to plead guilty for soliciting and procuring a minor for prostitution now democrats are demanding acosta quit or be removed. We should hold this prosecutor accountable he should resign. Republicans not going as far but wanting to know more. If this plea deal doesnt withstand scrutiny, then it would be a job for the Judiciary Committee to find out how it got off the rails. Reporter acosta commenting on the new case saying the crimes committed by epstein are horrific now that new evidence and testimony is available, the new prosecution offers an important opportunity to more fully bring him to justice meanwhile, the president is distancing himself from epstein who he has praised in the past saying the two had a falling out about 15 years ago and have not spoken since courtney sarah, thank you for that update thats a story we will continue to follow. Lets go the a check on this mornings other headlines. Nbcs Frances Rivera is in new york for us. Hi, frances. Reporter good morning. We start with an nbc news exclusive. Disturbing treatment of Migrant Children by border agents. First published on nbcnews. Com, our reporters detail the findings of some government investigators who have been interviewing children held in yuma, arizona. That includes allegations of Sexual Assault against a 15yearold. In addition to unsanitary conditions and over crowding nbc was told the allegation of Sexual Assault is under investigation but did not comment on the other claims. Now to the gulf coast bracing for a possible Tropical Storm that could make landfall this week. Louisiana is at risk and the state is stocking up on sand bags and implementing emergency pumps and the storm could become dangerous. Lady gaga made her debut b also released her new spirit which is part of the album, the lion king, the gift. Courtney, those are your headlines. That is so exciting i cannot wait to see this movie. I went on safari we watched the original lion king in africa. This is perfect for you. Can you see the love tonight . Thank you so much, frances. When we come back, in the hot seat fed chair jay powell heads to capitol hill today. What every investor needs to watch. And later the friendship is over for netflix where ross, rachel, joey and the whole friends gang is heading when Worldwide Exchange returns. It tackles tough grease on a variety of surfaces. Try dawn ultra. The fed front and center as jay powell heads to capitol hill. Sounding off the twinges comments on crypto. And lady gaga teaming up with amazon for a new beauty line will investors greet it with applause or will it turn into a bad romance . Its wednesday, july 10th. Youre watching Worldwide Exchange on cnbc. Welcome back to Worldwide Exchange. Im Courtney Ragan in for Brian Sullivan lets get you up to speed on whats happening in the markets. The fed chair going to capitol hill futures pointing to a mild open. The s p 500 down by 5 and the nasdaq off by about 14 at this point. Lets take a look at the bond market we had the big move last week after the jobs report. Right here the yield on the ten year sitting at 2. 1. It was just about a week ago or less that it was at 1. 9. We had a decent move there lets take a look at what happened overseas while perhaps you were sleeping. If youre joining us in the United States, we had a mixed picture in asia. They both traded lower the hang seng added on some gains. Then in europe waiting to hear from fed chair powell. The italian ftse the only one up by. 8 of a percent as ive suggested that big focus, its on fed chairman jay powell heading to capitol hill hes going to be testifying before the House Financial Services committee that gets underway at 10 00 a. M. Eastern time the first of two days of testimony. Well have full coverage right here on cnbc all morning long. Lets bring in joe travasani hes with fx street. Joe, its so interesting to me that, gosh, less than a week ago we were thinking, hey, it could be a 25basis point cut, could be 50, now it is decidedly 25. After one jobs report i know it was strong, but is that enough is it economically appropriate do you think in your opinion to just now suddenly 100 certainty say 25 basis point cut is what were looking for . Remember, the change in rates and in percentages for what youre going to get a rate cut is done by the markets, the fed futures. The market always goes a little bit more than you would expect they have a little more certainty than they really do. Mr. Powell has a tricky job this morning. I think hell do a very good job. Hes proven to be very, very good at this, i think. The economic case for reducing rates is weak. You can make it. Inflation is a little bit low. Gdp appears to be slowing. Jobs appear good but, again, it was good the reason people were concerned about it was because there were two weak months before it, february and may. Right. You also had the adp report weaker for two months expect you have a bit of a weakening economy, nothing that in the past the fed would have weighed in immediately the fed case has been based on externalities, on stuff from over seas, on the once and future trade deal from china they used to worry about brexit but apparently theyve given it up a little bit. Brexit is still there. It hasnt gone away. The case is relatively weak economically as far as the United States goes politically its probably a little stronger as far as the world goes there is, of course, the issue, this is where the fed has to be really careful about balance, between its own shall we say self image of independence the fed is going to have to try that because that, of course, tends to the other direction of not cutting rates. When all of this is put together and mr. Powell is doing his testimony, theyll end up reducing the rates its built into all of the markets. The fed and Central Banks are not fond of volatility theyre much more fond of certainty. Right. The only way to get that is to deliver this rate cut, then you can pause after that. Thats whats so interesting is the fed has moved into this era of transparency. Because now theyre so transparent, they sort of have to follow through with what theyve messaged have they backed themselves into a corner weve said we have to do this, now you do if youre too transparent, you are stuck with equities and the market they will act on their positions regardless of that so even if all the economists on wall street didnt think that a rate cut is appropriate economically, everybody would still position their portfolios and their positions based on if what they expect some days you wish for the old days of Alan Greenspan where there was less transparency and it was harder to figure out what they were going to do. Do you think jay powell will have to be careful but yet assertive in positioning the fed as an independent body absolutely. Because of the pressure President Trump has put on him in. Absolutely. I think what hes going to do is instead of stressing the feds independence in a particular rate move as if threatening, say, not to cut rates, but in its institutional status and history, he will approach it that way, rather than trying to use a signal interesting stuff i hope mr. Powell had a good nights sleep. Hes going to have to be careful with the word choices. He will hell do well. He has been proven to be articulate extremely adroit at this type of maneuver. Thank you very much for breaking this down for us. Coming up, getting a dial tone you know, the one company thats sending all of those annoying robo calls straight to voicemail. Lets hope. Plus, music superstar lady gaga making a big bet on the billion dollar Beauty Industry well tell you who shes teaming up when Worldwide Exchange returns. E is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. Did you know that feeling sluggish or weighed down could be signs that your digestive system isnt working at its best . Taking metamucil every day can help. Metamucil supports your daily Digestive Health using a special plantbased fiber called psyllium. Psyllium works by forming a gel in your digestive system to trap and remove the waste that weighs you down. Metamucils gelling action also helps to lower cholesterol and slows sugar absorption to promote healthy blood sugar levels. So, start feeling lighter and more energetic by taking metamucil every day. The firm is pointing to global trade despite the u. S. China trade war. Shares of fed ex up half a percent. Ups at least not yet moving. Its time for the top trending stories rahel solomon is here. Get us up to date. Goodnews for consumers. Big win for consumers, in fact, for all of the robo calls, at t is the first Wireless Service to automatically block the annoying calls without requiring customers to block in. All new at t customers will be enrolled in the service and existing customers who want it can. Im not an at t customer but my contract is up this might be enough. I was just going to say this might be enough. I feel like these things are so annoying. Especially in the last week or so i have had so many more robo calls by my area code, by the first six digits you know thats a robo call but it annoys the heck out of you. So irritating. At t is going to help maybe that will get some subscribers switching. Maybe it will get friends when they said ill be there for you, they werent talking about netflix. They will lose it. Theyre moving to the hbo max. This is the set blow to netflix in the past month. Remember a few weeks ago comcast announced that the office is moving to its streaming service. Its interesting to see these legacy companies, legacy Media Companies now become disrupters. Not quite the order you expected it to have. So interesting. As a consumer obviously we love the choice you have another option beyond just netflix how many streaming services are we going to subscribe to to get all the service i love. It ends up being the cost of cable. Lower your bill i was thinking i have netflix, i dont have google. I want to watch some google. I add that what do i do spend so much money. Thank you so much turning to sports. Fresh off winning the world cup title, the u. S. Womens National Soccer team will be getting a heros welcome in new york city. Nbcs jay gray camping overnight along the parade route i hope you had plenty of coffee. Good morning, jay. Reporter good morning, courtney not a coffee drinker, but you dont need it today. Very exciting. I wasnt the only one out here early. We have seen people lined up along the parade route, lined up around city hall theyre excited to be a part of what will be history this ticker take parade should be interesting comes down broadway all the way to city hall where the team will receive the key to the city. It comes to the canyon of heroes perhaps never before has that name been more fitting than today. This is a team that fought not only for a trophy and world championship, for so much more during their run equality, equal pay, equal rights they won this world cup, their fourth, while they were actively suing their own federation, u. S. Soccer, the next step in that gender discrimination lawsuit is going to arbitration today nobody cares about the leelt t legal t legalitise. The numbers were strong 25 of the folks watching television were watching the game i know my husband was jumping up and down and screaming in excitement during all of this. Hopefully there will be a lot of spectators down there in new york city. Reporter yeah, i think there will be thousands. People were watching the final game and watched some of the nba playoff games and some of the College Football games so its really a change in dynamic as far as soccer is concerned, especially womens soccer but i make the point, this is a team, yeah, the greatest Womens Soccer Club in the world right now, but one of the greatest teams, period, across sports that weve seen. Really excellent, jay im glad theyre getting all the kudos they deserve you get to cover a fun story this is a good one enjoy your day. Finally. Thanks for being with us. Exactly thank you so much elsewhere in sports, Major League Baseball hosting the annual allstar game in cleveland. The American League came out on top for the seventh Straight Year the eventual winning run came by joey gall low. American league 4, National League 3. New this morning, lady gaga is making a big bet on cosmetics. The pop star announcing an exclusive partnership with amazon for a new line of Makeup Products its called house laboratories it will launch in the u. S. , germany and japan. Lets bring in jay robbins i find this very interesting i had to pull up the piper jaff fri team survey. I just assumed that teens are probably the target audience or at least a key target audience for the new lady gaga line it did overtake sephora but 95 do like going to the stores. Amazon did finally crack the top ten for a beauty buying teen is this going to draw new people into amazon . Weve waited for this launch for a long time. Shes been working on this for a long time. As she said when she launched it, the last thing the world needs is another beauty line here we go yes, she will be successful with hers i dont know about you, but im a big fan of everything shes done shes never gotten anything wrong yet. With amazon behind her, i dont see how this could possibly not go well. I think it will have a big impact in the world because this will be the only beauty brand celebrity focused on amazon. Only on amazon only in sephora. I dont see how you cant be successful with her behind it. I think its a great breakthrough for amazon and it cant be bad for her either. Speaking of amazon, you have prime day around the corner. Its almost been an unofficial kickoff for back to School Spending it seems to be a key category and a moment that begins the spending for back to school. Deloitte is also out with the backtoschool survey. Overall spending relatively flat going back to School Spending will be 29 compared to last year well, its also the launch of the new beauty product thats coming out prime day. That will be one of the big launches do i expect them to do well . Yes. Amazon is taking over, along with walmart and target, back to School Electronics are an Online Business electronics will be the big growth area. I think it will be big for amazon i think thats going to be pretty good. People have worried about the back half versus last year im not sure, i think the backpack is pretty close to normal the consumer is really strong. Were seeing great employment, rising wages, record employment. I just dont see how the back half is not going to be as strong even if we dont have the impetus we had last year from the tax cut. Yeah, i think amazon is going to be the big winner. I also think the whole backpack is there. When i went ba being to school im trying to figure out what i think that means for retail its a little bit different than looking at the holiday season. Its not a discretionary purchasing you have a list from the school or teacher that tells you what to buy so many are teaming up with the schools so you can punch in your zip code, area code, find your school, classroom, find that list with one click on target. Com, walmart. Com. Do those kind of technological sense . You make it so easy for parents. Back to school is not a big deal it is for walmart and target and amazon does a big deal, but its not a huge event for the rest of retailing. Its spread out over a long period compared to what it used to be. Youre right, on the theme that youre talking about, weve got ven very technologically advanced its great for the student and parents but its not driving incremental shares the market share shift has gone into the discount guys for back to school. Back to school is just not a big event. Its not a big event its important from the point of view of giving us an indication of what the consumer spends. Important to be up your area but its not a big point in the market world well see how its going. Jan kniffen, thank you for being with us here this morning. You, too. On deck, jay powell in the hot seat the fed chair testifying before the house this morning well break down things you need to watch. Plus, ge dear tech, m inies. Lets talk. You blaze trails. But you have the power to do so much more. Lets not just develop apps, lets develop apps that help save lives. Lets make open Source Software the standard. Lets create new plastics that are highly recyclable. Its going to take input from everyone. So lets do it all, together. Lets expect more from technology. Lets put smart to work. Mno kidding. Rd. 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. Todays executive recap, the headlines you need in 60 seconds. Here we go start the clock. An update on trade Robert Lightheizer and Steven Mnuchin spoke on the phone with the vice premiere liu and the vice minister. Talks will continue as appropriate. Levi is reporting a quarterly beat shares down today. Sales growth will slow in the second half of the year on weakness in the wholesale business levi shares right now before the opening bell are down about 7 . Facebooks head of its Digital Currency project libra is calling for more regulation david marcus says the Company Needs governments, Central Banks and regulators involved to launch libra theyre set to testify later this month. Sticking with facebook, Mark Zuckerberg and the winklevoss twins dont see eye to eye theres one thing they all are bullish on cryptocurrencies seema mody sat down with them including Facebooks Libra project. Despite that, they are bullish on the cryptocurrency. Very positive for krip toempt a company, the stature of facebook talking about crypto demiss city phis the word. It makes people feel a lot more comfortable. Our thought is every faang will have a crypto project in the next two years. Did you feel like facebook was copying your idea again . Libra is very different than gemini gemini is a marketplace. Well identify libra that will be open if its a protocol i asked them whats the alternative . They are gaining momentum. They see regulators allowing new products Like Exchange rated funds to enter the market. They say asia is making a huge part interesting time that they think every bank stock will have right. Why does netflix need one who knows if its actually netflix but the idea that some of the big tech giants from Silicon Valley, not just facebook but other countries will introduce their project and its an interesting forecast well have to see if that is what happens over the next two years. We know that Silicon Valley has been very bullish on blockchain especially when you look at the number of startups coming out in the next few years theyre trying to specialize their own product within blockchain well see if something comes like that, at least adds some legitimacy or makes every everyday consumers feel more comfortable . Having facebook enter the cryptocurrency space with their own project, that it maybe gives a validation to the industry that is still at this time trying to gain credibility among not just investors but regula regulators as well theyre waiting to see the consumers and the committee as to what type of push back theyll receive and if they can get libra to the market. Libra, gemini, it seems like a zodiac. Is that a coincidence this is still a small world and there is a very rich history among these three. Well see seema back. Turning back to the markets. Futures are lower ahead of fed chair jay poles testimony this morning on capitol hill. Dow jones futures now down about 56 points. So weve accelerated the losses a bit say in the last 20 minutes or so. Joining us jim urio at tmj global services. Jim, thank you for joining us. What are you expecting today out of chairman powell so many people say hes got to walk it back. I think it would be hard to walk it back the thing thats fascinating is weve had a significant change of plans since last fridays nfp numbers. The market is relatively complacent there is a significant risk that he makes an attempt to walk it back i dont think the market is pricing it in ineffectively. That being said, i dont think he will. He will give us what we need i think he has to at this point in time. What happens beyond then is going to be interesting. Remember, one of the key elements of the stock market rally in my mind was the feds kind of flip to dovishness right around december. I think that hes still going to say hes got our back in some way. I think the stock markets okay. Realistically, are you going to buy a german 10year bund or the u. S. Stock market . Its so interesting you make a good point about when the fed at least appeared to change course and things changed dramatically in the markets. It was a reaction to that. Now it appears that the fed is paying a lot of attention to whats going on globally with the slowing Global Growth, with the trade tensions here in the u. S. The economy seems pretty strong. I mean, its a 25 basis point cut appropriate at this point . We had the strong jobs report but, my goodness, that was just one report expectations changed so dramatically after that. I dont think its appropriate but im not chairman of the fed my job is to take advantage of what the situation is. If he tries to make it appropria appropriate. Everybodys saying theres this recession coming mark my words, of course theres a recession coming theres always a recession coming i dont see where thats coming. Ive been seeing the same thing for several months that jobs number was a couple notches shy of blockbuster is this appropriate . No i dont think thats relevant at all whether i think its appropriate. I think its coming and i think the fed is terrified to have any shots. Two years ago in august when James Bullard came out with a change for tightening. The only thing that changed was an 8 move lower. They have the dual mandate. What is that again . You might have to explain that. Exactly we havent seen anything happen there. We are going to get another rating say this thursday is it important . No, its always important its very important. I think theres a huge over arching theme thats gone over the last 30 years that has to do with the internet thats changed the way a traditional inflation has shown itself the same thing for labor, everything is priced differently. The only time well see inflation is the bubble inflation. Weve seen it twice in the last 20 years i think this whole theme it used to be that recessions happened every two to four years. In the last 40 years theyve happened in nine to ten years. The feds come in and they try to keep everything perfect. In trying to keep it perfect thats when we set it up for a big fall i dont think thats anywhere in the next couple of years. I hope youre right, jim. Me, too. We hope you do well in your trading. Thats it for Worldwide Exchange this morning squawk box begins right now. Good morning jay powell in the hot seat again. Its a lot, right . We hear about this all the time. The Federal Reserve chairman heading to capitol hill today. We know so much from the fed every waking thought really good. Well break down the key things you need ahead let the content wars begin first, the office, now friends getting pulled off of netflix for a competing streaming service. Well tell you what shows could be next and what it means for big media stocks. Plus, primetime for lady gaga the pop superstar teaming up with the Worlds Largest online retailer wednesday, july 10th, 2019, squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning, welcome to squawk box here on cnbc. Were live at the market at times square becky and andrew are off today guest host, Jason Trennert great to have you with us. Thanks. Big day here. We want to take a look at the u. S. Equity futures ahead of the release of chair powells testimony. That release happens at 8 30 a. M. Eastern time before he actually testifies on the hill at 10 a. M. S p 500 looking to open down by 10 dow jones indicated to open lower by 73 points the nasdaq looking to lose at 32 at the moment. Overnight the china ppi had the lowest reading in three years