Wall street is set to join that Global Equity selloff at the open plus, th juan falling to a more than ten year low versus the dollar China Central bank denying it is devaluing its currency shares of apple, theyre down, like everything else, or more, ahead of the opening bell. Which trumps tariff threats could mean for that technology giant. And potentially for the costs of the iphone we start, though, with the Broader Market stocks under pressure around the globe as u. S. China trade tensions escalate. Chinas yuan, which has now breached the 7 level for First Time Since 2008 is certainly a focus this morning in response to that move, the president tweeted this morning, quote, china trdropped the pric of their currency, called currency manipulation, are you listening Federal Reserve, this is a major violation which will greatly weaken china over time so, jim, were back in the concerns about china, of course, this following the decision last week by the president to put 10 tariffs on the 300 billion in imports from that company starting september 1st you know, we went from june and it seemed like the focus was on the fed. And we got the rate cut and now the focus is back on trade right last week, i thought that the president was going to raise the tariff it felt like it from his yes get a sense sometimes. Force of one action, look at the article today, who is really driving this thing both advised the president not to and navarro saying do it and he did it. Larry is king dollar. Right larry kudlow. And what i think is going to happen is theyre going to go to 25. You do . I do. Here is the plan as i understand it, want to take all the tariffs up and then they can cut them. Thats they dont want to be in a situation where they have to keep raising and raising. They want to get to where they are and then hold out, look. Were going to keep these tariffs up, American Companies are going to continue to leave china. You can do whatever you want with your currency, big capital outflows it is amazing the market isnt down more. Why would you think it would be down more there are a lot of people who feel that once you get into a currency war, there is going to be lots of different repercussions. I dont think thats the case. I dont want the u. S. To beat the value of the dollar. That would be a bad signal to europe i think that im focused on hong kong now there is a great deal of unrest there that continues. What happens . Yeah. Should we not be more concerned about hong kong . Given the fact that it just doesnt seem to stop taiwan, were ratcheting up the pressure on china with taiwan. Were ratcheting up the pressure i think the pla has been in charge of china the whole way. Things with china are worse than they have been, fair to say . Were going back to when we had pingpong diplomacy. Even a back and forth today about did they or didnt they pull back on promises in terms of buying agricultural products, some stories saying that they did, in fact, but they come out that that is the Chinese Government said no, were sort of were doing exactly what we said we would president obviously differs with that as well did switch their soybean buys to brazil, which is why a lot of our our seed companies, our anything involving ag what is interesting is that, you know, we had a decent earnings season. We had a focus on the fed cut, which came, and we have an economy that we all know is, what, 70 driven by the consumer which remains strong as ive been reporting for some time, and you and i both know, we talked to plenty of ceos, in terms of making decisions about how to allocate capital, you may pull back. Thats going on for a while. Yes because of the concern about trade or the uncertainty, there it is again, that word, about how the world is going to look or what exactly the return is going to be and how you want to use capital if you or can you if you dont know what the tariffs are going to look like or what the Playing Field is going to look like but that hasnt changed. No. And you look at lets take cocacola. James quincy, fantastic, right the company is not really all that exposed to china, worldwide company, it is going to be yielding, geez, twice what you can get for say, seven some of these companies with yields are of and with currency, they dont care. Those yields, jim, now with 17 on the tenyear. You squcout for 3. 5 . Who had the best of the telcos verizon. You had great coverage. I finished, the place to go. The place to go, 5 yield. It is rock solid not about china. No. Rock solid. Not a bit at t, see that, when people say the market is over, the market does not apply to one of the Largest Companies in america. So watch verizon if that gets oversold, thats terrific opportunity it is not a fossil fuel. I went through the utilities i like dominion, it yields five. They are doing a very difficult transaction, very difficult takeover but i regard i go over all these stocks that have good yield that have good Balance Sheets and i want to buy them, david, if theyre domestic if they are domestic. I also think that at t was the second best. I thought at t 6 s p yiel 6 yield. They have no granularity about stocks the s p is awful look at the s p there are individual stocks. It is made before there was a basket of stocks and 1984, used to pick stocks right and at t is all about showing us and telling us how they have no trouble making that dividend cash flow generating, will not be just to pay down their enormous debt load, but plenty left to continue to pay the dividend. No growth, verizon has decent growth. 1 is not exactly amazing Earnings Growth is better. Top line growth at these companies is hard to come by. I like the merger with tmobile and sprint, will make us more competitive. But i know sprint more us by who us the u. S. . Got it. The president has an antichina 5g policy. Yes, he does. Theyre trying hard to disable it and you need european orders to ericsson and nokia because those companies arent doing that well. Ill bring that up and huawei continues to be sort of a by the way, they had incredibly strong sales in their home country of china in terms of hand sets, patriotism that may have helped, but market share went up dramatically, huawei were talking about. At the same time, it is unclear what you can and cant do as a u. S. Company because that has been lumped into the overall relationship or tensions between the two companies, but into the trade talks itself even though it is separate im glad you mentioned many semiconductors felt they were doing the right thing and sold huawei, provided it was hand set and not infra watch xi lilinxxilinx they may be under the gun into what they can sell into china. Im looking at the list qualcomm is at the top micron, broadcom, texas instruments. Apple, you know who is the big winner who Samsung Samsung is a huge winner because apple raises prices on hand sets samsung can keep the price the same because theyre not affected at all by the tariff. It is an unintended consequence that the white house was unaware had they did this. It is always worth pointing out that while supply chains have changed, it is not as though there is a rebirth of manufacturing back in our country. No. It is not as though people are moving supply chains or companies are moving them back here, theyre finding other countries from which to import the white house is as lets say happy with a any company that leaves, even if it is to vietnam. Theyre happy with that. Yes they rather that than vietnam gets logistics together it is going to take a little while. There is plenty they got to do before they can in any way meet the population alone is not nowhere near what what is amazing is i remember the days when we mined the high fung harbor. I wish benefit of wisdom in age, having lived through the war, with the draft number, 364, i can tell you that we are undoing eight years of what we did isnt it kind of crazy . Im starting to read a book about holbrooke, you know, richard holbrooke, starts in 1962 with the first assignment in South Vietnam operation rolling thunder. Became a Global Economy and markets out there. Lets get to negative yields for a second thats also extraordinary. You and i every so often sit here and scratch our heads and it is. 41 on the bund in germany. The entire bund yield curve is at or below zero. Why doesnt but because of buy mar, there was a deflationary wave, there was deflationary wave youre giving your money for ten years, getting back 95 cents on the dollar. Why dont they borrow 500 billion euros and put people to work why dont they what is the matter with they dont like you can get your head around that why would you do that . Why would any institution give them their money for ten years because the charters. Get back 95 . Charters all over the place say you must buy bunds that makes our ten year look like the greatest thing ever. It is it is. At a tremendous bargain. Im surprised the chinese dont start buying it. They would be the height of irony. When do we go against Chinese Companies raising capital now that they created that bogus exchange there is a you dont need any information. No public financials in that last wave. I dont know what youre talking about. Exchange in china you dont need to cant get any Public Information about a company. Thats just a great opportunity. All right theyre playing the music. Were going to be talking a lot more about what is this global selloff what we can expect this morning when we start trading. That is about 19 minutes from now. You can take a look at where the futures are pointing us, which is far lower a lot more squawk on the street for you, live from post mi rhtacthe nyse and were congigcreating the future. Nariee so, every day, we put our latest technology and unrivaled network to work. 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The card is being issued by Goldman Sachs and will use the mastercard Payment Network users will receive a physical card, but apple and goldman are hoping to store Payment Information in iphones and make purchases without having the card with you. Physically just be on your phone. Right look, there is a very easy tally of what youre getting back, i think that a lot of people feel there is a big discount. It is just so easy it was kind of a natural where was this all the time . Bo goldman bearing a risk great thing for apple if goldman bears the risk. The credit risk. Goldman feels that they have a very good system of finding the people who are going to be able to pay it back. It is algorithmic. In china, it is almost all algorithmic. There are banks with 80 people goldman feels they got it down i feel there is going to be too much demand and it is going to tax goldman. You do . Thats one reason why i think goldman stock fell faster than it is one of the most visible or going to be one of most visible reminders of the changes that are taking place at Goldman Sachs. Not as though it is no longer an institutional firm, it is. There is a lot of retail activity so to speak going on at that im glad you mentioned it institutional is probably not as strong as this broad mosaic. What does goldman want recurring revenue. Recurring revenue. Lifetime value of a credit card issuer now, apple is not thinking that way. No matter what you do, apple is not thinking about lifetime value. I do not know why that is. I have a Company Called live person on tonight. It is very much of a focus when youre a credit card company, youll youre trying to figure out is how much are you willing to lose to get a customer. I think goldman bets that apple will make it so they do not have to have the big advertising you might have if you had capital one. And thats a real god send so i think that it could be a win for everybody. I want to see whether there is too much demand and goldman is ready. Apple shares will be down today. No one wants to touch it. The media is so negative and frankly, there is an adjustment, apple does have to apple is hurt by this. Well, 10 tariffs will mean the iphone is included it is going to 25 you believe that. Yes. Soon . If there isnt something this was not what President Trump wanted this morning was to devalue. They knew on friday and totally expected on friday they knew it would happen theyre not theyre more perceptive than people realize we had a guest on this morning, smart gentleman saying long game china. Give me a break. Senator warren gets in there if trump loses. When we return, a moment of silence at the bigoa, brd remembering the victims of recent gun violence. N. Carrying up to 50 times its body weight. It never questions the tasks at hand. 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Were live from the Financial Capital of the world well have an opening bell six minutes from now well take you right to it we got a little time, of course, before we get there. The by the way, markets down this morning if youre just tuning in. This on continued tensions, in fact, increased tensions between our country and china. Certainly i guess that would be number one on the list, jim. Right. What is the key, though, as i like to ask you on these kinds of days, to this market. Sure. There is absolutely an excellent piece by Deutsche Bank about why target should go up. Actually mentions, look, minimal for tariffs, do not fret the tariffs. In it talks about how they really have gotten their act together, a lot of small form. I visited a beautiful one recently all the way up flat bush, the new the new template for urban, first one. One in manhattan as well. Yes, they embraced urban. They have five different store formats. Yield is 3 and change. Brian cornell, excellent job if that bottoms, and it is right now looking as much down as anything, if that bottoms, thats the key to you may actually have to start buying today, which nobody thinks. I already noted something from you, which is that you mentioned yield, any number of times today, which i would expect given that we have a tenyear yield of below 1. 8 youre noting all the Different Company stocks that yield well above that many double that. I was looking at ppl the other day, that used to be my utility. I liked dominion energy, 4. 83, with a very good Balance Sheet tom farrell at the helm, ive been recommending American Electric power, i got to cool it, it went from 4 to 3. In yield went from 4 to 3. Very quickly. I like the yielders, and thatter have verizon is so tempting. Thats something recommended for people to own because of the yield and the fact that the dividend is seen as secure and thats not a new thing. If you see me on the street and say, how you doing yeah, how are you doing and they say give me a stock. I always say, verizon. They know when i see that person again, it is going to be fine. Theyre not going to say you told me on the street, when you told me that adobe, i love adobe, but im not giving anybody adobe a guy comes up to me and says can i have your picture . My daughter is there, take a picture. Then two other people come up and say can we take a picture. I say, sure. I put the arm around the g