Flagship fund suffering one of its worst first half performances in two decades. Disney breaking office in the a box office, this time its the lion king hauling in the biggest opening for a july movie ever. Its monday, july 22nd youre watching Worldwide Exchange, and it begins right now. Good morning and welcome to shWorldwide Exchange im domic chu in for Brian Sullivan today. Stock Index Futures inindicating the dow will open up by 54 points the s p would be up by 6 points and the nasdaq up by 20. The major averages all coming off their worst week since may on the treasury yield side of things, were seeing a slight tick lower in tenyear note yields the twoyear 1. 82 lets go worldwide in the asian trade. Japan, this morning, you can see here down by about one quarter of 1 this as shinzo abe the Prime Minister declared victory in the countrys National Elections just yesterday its a win that could ensure his place in history as japans longest serving Prime Minister also in china, were seeing the moves on the shanghai composite off by 1. 25 , the country ice new nasdaq style tech Index Trading just today the star market saw shares of a 25 Companies Listed soar in its debut. Much more on that coming up later in the show. In the european trade, for this monday morning, its a bit of a positive picture there as well the german dax up by 1 third of one percent. The ftse 100 up by 1 half of 1 as well. Outside of the world of stock market oil is on the rise over concerns irans seizure of a British Oil Tanker may lead to supply disruptions elsewhere in the middle east and news that libya partially shut down its largest oil feed added to the rise in prices for crude that oil field has since resumed production half its normal capacity the markets may play a game of tug of war as well pulled in one direction by chances of a bigger fed Interest Rate cut. Well get several numbers from several heavy hitters including the likes of facebook, amazon and alphabet as well but a massive week of earnings as you can see here who will get the upper hand . Which camp lets bring in Senior Investment strategist tim, as we talk about the macro picture for the overall markets and Interest Rates, versus whats happening with these companyspecific reports who wins the day the big macro picture or all these Company Reports coming out this week . Well, when we think about what is driving markets today in our mind i think the feds dovish pivot we saw earlier this summer in the subsequent easing of financial conditions has really been one of the most important factors for markets. So, not with standing a big disaster in any one of these key names this wee s this this week are one of the most important factors. Tim, we talk about the number of companies out there the fed Interest Rate cuts will be a huge part of this story. Yeah. But we have 130 s p 500 companies all with their own stories to tell. Is there any Industry Group in particular that youre looking at with regard to that big earnings calendar were showing right now. Is it the likes of caterpillar because of chinese trade or mcdonalds because that consumer story here in the United States or is it a company like amazon or alphabet because of the whole fang momentum trade . Sure. You bring up couple good points worth unpicking. The first one with caterpillar, industrial bell weathers will tell us a lot about how big this slow down really has been in q2 and leading into now and what impact trade conflict has had more on sentiment and forwardlooking guidance so i think we listened to some of those key names that will give us a picture of the extent and the depth of turmoil related to trade that being said, i think on the consumer side here in the United States, we have seen continued really strong news and i think that that will be set to continue and be one of the key drivers for this cycle going forward. I think those are two good areas to watch as we look at this week. The strategy you have set out that youre telling clients about right now, factors in a fed Interest Rate cut, a holding still, 25 bases points if they do, does the fed cut 50 bases points what is the market positioned for . We think of positioning for the market, there was anticipation of 50 basis point cut this friday earlier in the month that now subsequently been walked back. Our base case and what were talking about when we build our allocations looking forward is 25 bases point cut we dont see this as necessarily the start of capitulation on the feds part but rather just a gradual easing of financial conditions away from probably some additional tightening that wasnt necessary last fall. Tim, thank you very much for those thoughts we appreciate it. Thanks for having me. China unveiling science and Technology Innovation board or star market happening over night. The new nasdaq style tech index soaring in its debut our eunice yoon is in beijing with the latest. Is this really going to be chinas version of the nasdaq . Reporter thats what the Chinese Government really hopes its going to be the board is meant to lure away big listings from places like new york as well as hong kong to here in shanghai 140 companies, chinese startups, have applied to list on the board. So far today 25 of them made their debut. And this step is really seen as a way to push forward chinas effort to reform its Capital Markets. In fact, it helps to solve two problems that a lot of chinese Tech Startups have one is that the ipo rules have been seen as very, very restrictive, for example, a company like luckin, the starbucks rival and chinese startup has to go to the nasdaq in order to raise money. Secondly the other problem we hear about here, venture capitalists want to invest in chinese startups havent been convinced about how theyre going to get their money out thats one of the reasons why some of these companies were interested in listing on the board because for one reason the regulations are much looser. For example, a company now doesnt have to prove that its made profits in order to go public so, thats been a very positive thing for people here. One startup that i spoke to said that they are hoping to see more foreign investors, but so far a lot of the International Fund managers i have spoken to, dom, said for now theyre steering clear because of the volatility. At the end of the day, most of the stocks ended up higher by 140 eunice, you brought up the idea that there are trade tensions still on going between the u. S. And china i want to bring your attention to a New York Times headline we got earlier overnight about the growing distrust between the United States and china and that it has slowed. The one steady flow of chinese cash and capital into america, Chinese Investment is plum meting by nearly 90 since President Trump took office. And i wonder if much of this is geared towards this idea that china wants to become more Capital Markets independent from the United States. Reporter absolutely. In fact, when i was speaking to that particular startup, they said one of the reasons why a lot of these companies are looking to this market is because they see these trade tensions and think that maybe theyre not even welcome in the United States. So, for a lot of these Companies Including the one i spoke to earlier today they say that, you know, china is a huge market we have a lot of potential here. It will be a lot easier for us to list in this market in shanghai eunice yoon, live in beijing with the latest there. Ray dalio under new pressure this morning under one of his flagship hedge funds rahel, what can you tell us about the performance over at bridgewater . Good morning, dom Bridgewater Associates suffering one of its worst performances in the Flagship Fund in two decades first half of the year the firm saw pure alpha lose 4. 9 through june. The drop follows a strong year for the fund in 2018 thats when it delivered a return of 14. 6 amid market volatilit volatility much of the loss came in january suggesting the fund went into the new year expecting the worst when markets were starting to recover. The fund managed to pair some of the losses is down 1. 5 this year through mid july. Now last week, dalio wrote a post about paradigm shift. History has shown us and logic tells us that there is no its the creditor who suffers from the low return the Financial Times saying the Pure Alpha Fund had a tough start in 2009 and 2016 but did manage to recover those losses thank you very much for that. We appreciate it. When we come back on the show, Mideast Tension on the rise as the uk looks to hold an emergency meeting over the seizure of a flagship british vessel out of the strait of hormuz and then, from Stephen Colbert to ncis, millions of at t customers are in the dark not because of the heat wave. 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Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. A live shot of hong kong 5 13 p. M. Closing out their day in hong kong a developing story this morning over the british ship seized by the iranian ref lugs nar guard last week. Iran releasing new video of the seizure over the weekend as uk leaders weigh a Response Team coverage this morning with nbcs matt bradley live in dohar qatar and in london. Matt, well start with you what can you tell us about what the latest developments are on the ground in the middle east . Reporter well, we just got some audio yesterday showing that confrontation between the royal navy and the Iranian Revolutionary guard core, not so far from where i am in the strait of hormuz then we also saw a shot that was carried live by irans press tv showing the actual boat that was impounded by the iranian navy at the port now reflagged with an iranian flag, which is rather atypical, but here is that audio showing that confrontation take a listen. If you obey, you will be safe after your course to 360 degrees immediately. Over. Navy patrol boat this is british warship. You must not impair, impede, obstruct or hamper the passage of the mv stenoimperio. Reporter that would be a dramatic confrontation because you didnt hear the captain speaking there he was only hearing the iranians saying if you obey, you will be safe which is very ominous indeed then from the British Royal navy, instructing that ship to stay the course. So it was a major confrontation with the oil tanker. Huge tanker, caught in the middle of two major armies right now, its looking like tit for tat retaliation. Its almost an eye for an eye. The british now have their ship. The iranians have a british ship and with this kind of escalating back and forth, its hard to see how this is going to go peacefully. Matt, live in dohar, thank you for the latest we appreciate it british Prime Minister theresa may will chair an emergency session today to discuss how to respond to iran and these particular moves steve sedge wick is live in london with the latest there steve, this happens as the British Government is convening this emergency meeting what is likely to come out of this is there any actionable item that can come from these particular talks being held in the uk right now reporter dom, its very interesting because one thing that our viewers would know as well we have a transition nar government at the moment within 24 hours we will almost certainly have a new Prime Minister now, it could well be the current foreign sec tir jeremy hunt who has been commenting about this situation but it could be the former foreign secretary a man familiar on the u. S. Air waves Boris Johnson who we understand is ahead in the polls that closed at 5 00 p. M. Local time today yes, there will be a mrs. May cobra reaction today potentially but we will have a new government incoming with potentially a new chance given what we heard from the current one Phillip Hammond over the weekend. One thing we have heard and this is from one defense minister who is in the current government a man i met on many occasions former officer actually in the army as well and hes saying its implausible to see criticism over the fact that the british didnt protect all its ships. We do not have that kind of manpower we do not have that many ships available in that part of the world at the moment. We have one destroyer in the region plus four mine sweepers another british ship is due to get to the region imminently as well, but it is implausible to look after and protect every ship as well as what Tobias Elwood was saying. Saying that in response to a former admiral making some criticism. The oil price on the back of this, i wanted to make a point, matt made the point about this choke point in the straits of hormuz, narrowist, only 21 miles wide and the point is, of course, that a huge amount of sea bourn shipping around a third of global sea bourn shipping goes through that very small choke point as well, three quarters of it set for asia. So my point for our viewers looking to and fairly enough looking to trade on the situations, look at light sweet crude and brent. Yes its up between 1 and 2 but thats a very small move to up the side given where we have come from and this is a great chart. What it shows you is not only 17 lower over a oneyear period that wti the u. S. Benchmark has fallen but actually from this level on the third of october we were trading around 77 bucks, dom. That means were down significantly in bear market territory on the oil price to have a blip around 2 , i personally and many oil commentators saying its not that much. Maybe this is also about the demand picture. Steve sedge wick with the latest there on oil and whats happening between the uk and iran. Still on deck here on the show, equifax is going to settle a slew of state and federal investors into a 2017 data breach that exposed 150 million americans accounts, Social Security numbers, other sensitive personal data as well. Later on in the show, forget amazons hq2, today its state versus state in the fight of different kind of headquarters in americas heartland the full story when orwi chgecos back after this. Just past 5 22 a. M. Eastern time a live shot of new york city, manhattan in particular. The days are getting a little bit longer each passing one. Of course until the winter solsti solstice check of other corporate stories. Cbs and at t are blaming each other for a blackout of cbs stations on directv and uverse starting on saturday stations in more than a dozen u. S. Markets, including new york and los angeles, went dark after the companys failed to reach a new contract agreement cbs says it continues to negotiate with at t but the loss of programming could last a very long time. Equifax is nearing a deal to pay 700 million to settle a probe by the federal trade commission into its massive data breach back in 2017. Reports say the settlement could be announced today the breech exposed Social Security numbers, other private information of nearly 150 Million People and Johnson Johnson is facing a key test in defending itself against thousands of lawsuits over the safety of its talc suits the company is questioning their conclusions. There is Scientific Evidence that talc can cause ovarian cancer. Much more on the Mideast Tensions and the oil markets well speak with former exxon executive for his take on this. One of the busiest weeks of earnings on tap. Well have earnings from facebook, amazon, alphabet and others one top tech analyst joins us with the key things to watch thats coming up welcome back to the show futures right now pointing to a 44 point open for the dow. These futures gains hold to the open