Green arrows across the board in europe the dax is up by 0. 3 . The cac adding 1 . The focus again today, because yesterday it was the fuel for that whipsaw action, treasury yields, 1. 727, much firmer than what we saw yesterday. We saw a low of 1. 595 we had record lows across the yield curve. Thats worth noting. A lot of strategists saying we could test 1. 35. Beijings central bank setting the official reference rate for theyuan to the weakes level in a decade. Eunice yoon has more on the midpoint number that traders are watching they do it now at 9 00 p. M have to watch all the time eunice its worth it its worth it to stay up that late the central bank set the midpoint fix weaker than 7, but it was actually stronger than what a lot of analysts were expecting. So because of that traders were taking that as yet another sign that the government here wants to pull the reins back on the chinese currency there was no official commentary today on the fix it was interesting to see what came out of the state media xinhua ran a headline that said renminbi rate against the dollar breaking 7, has the potential to stabilize in the future. Also the communist party paper the global times had a piece that quoted a researcher who is very closely linked to the Chinese Commerce ministry. Has researcher said further deprecate will not be very fast to the 7. 1 or 7. 2 level it will not take a long time before the rate returns to below 7. In other words, expect the yuan to maintain strength separately the trade data was out for july it was a surprise to the upside. Exports rose by more than 3 when expectations were for a fall imports shrank, but it was less than what people were expecting. The read has been that Global Demand still looks to be holding up even though the exports to the u. S. Contracted. That just has been telling people that the tariffs that President Trump has put on china are taking their toll. You had a look on your face do you have a question no. I have a question for eunice. Theres a quote in a tom freedman piece did you see this piece about the u. S. And china he quoted a guy named jim mcgregor, he says the old trade this is sort of how i was thinking about how we could get back on sides with china is there a way to get back he said the old trade regime was based on the idea that america was a rich company and china was a poor company, and china was entitled to certain advances and tolerances of misbehavior. The u. S. Should say to the chinese, you are now our economic equal give them that dignity tell them we want to restart the negotiations on the basis of total reciprocity and that we should have the same rules of access to each others economies. Do you believe if we started the conversation there, that that would change the dynamic i love jim. Hes a good friend of mine but it is good for the u. S. To be able to recognize and pay a lot of respect and face to the chinese. But what i think the Chinese Government would say, since we heard it a lot from, say, the premiere and as well as the president , is that china is still a country that has a lot of poor people so thats why from the chinese perspective, they see that they are the second largest economy in the world they know that theyre on this path to greatness. They want to keep on that trajectory they have a whole lot more people than a lot of other countries. They see that Development Goes in stages, they have to consider all of these different markets within markets all these people who they want to bring along from their perspective they still do believe they are a developing country you can say that its convenient when they believe that but still it is something that they do have to think about. Okay. Eunice yoon, thank you maybe i lost the plot, but isnt that what this trade war is about were resetting with china and saying you shouldnt be able to steal our i. P. , force transfers of our i. P. , we should look at the trade surplus, youre an economic power, were an economic power do you just do it and try to get to zero on everything . No. Eunice, thank you im glad she didnt get blacked out yesterday. She put out a tweet yesterday that went viral. Did it go viral in china did you hear from anybody . No, it didnt go viral in china. A couple people on twitter who have access to it, but no. Not going viral here eunice yoon, thank you. Lets tell you about the top corporate stories. We have lyft reporting a smaller loss than expected in the Second Quarter. Revenue rose 72 lyft announced it was moving up its lockup Expiration Date by a month to august 19th the Company Raised the its outlook for the year saying its gaining more riders and theyre paying more per ride i have not been seeing the discount ads on my app i have 15 i can give you a ride. 25 off. They say theyre trying to get rid of the discounts lyfts cfo said the increased revenue per rider was because of an easing of the price war with uber uber shares are up about 5 . Uber reports after the bell today. The comparison is up 72 on revenues for lyft in the quarter. The expectation for uber is up about 20 . I dont see the discounts but i see a difference in pricing. When i land in certain airports, i look at my choice between uber and lyft, lyft has a general discount to uber in just when i say im going from the airport to my hotel. I usually see as much as a 20, 25 cheaper price. I look at which one is cheaper and i take it. On a long ride, of course its a commodity. This is public shareholders forcing discipline on these companies. I think its the market allowing discipline. The see is will uber say the same things when it comes to pricing and the rationality coming into the market or is lyft using this rationality. If they want to be a good do you do these membership things platinum this and that youre platinum yeah. So fancy. You can lock in certain prices you can say i want to leave the nasdaq at 9 00 and lock in a certain ride no. I have certain rides from here to the new york times, you choose a couple, to your home or places where it can never surge. I think theyre going to get smart. Lock into the thing and therefore you wont try to arbitrage. My trading desire to arbitrage keeps coming out i sometimes try to arbitrage between the uber and the taxi, and could i cancel fast enough before the taxi comes. Only if the air conditioning is good in the taxi. Netflix won a battle in the streaming wars the company outbid amazon and disney for multiyear film and tv deal with david benny novemb be bennihof and david weiss hollywood said the deal was worth 200 million. In a joint statement they said netflix built something astounding and unprecedented and were honored they invited us to join them. This could be a major loss for hbo. Shares of iac are up this week the companys 23 stake in match group drove the price higher then late yesterday the ceo said in a letter to shareholders its exploring a distribution of its stakes and match in Angie Home ServicesAngie Home Services was down on that news. Iac posted a revenue beat for the quarter but earnings fell short of expectations. Joey levin will join us later this hour to talk to us about this news. He will talk to us before he talks to shareholders and analysts youre a big iac fan. You were talking about the spinoffs of companies. Here they are. Theres a lot going on in this earnings for us to pick apart. The angie earnings. The spinoff the impact from google pushing listings down further. Revenues looked good. Earnings didnt look quite as good. Coming up, a closer look at the big Market Drivers lets look at u. S. Equity futures at this hour its a positive open dow looking to be up by 64 before we go to break, a look at the biggest winners and losers in the dow dear tech, lets talk. We have a pretty good relationship. Youve done a lot of good for the world. But i feel like you have the potential to do so much more. Can we build ai without bias . How do we bake security into everything we do . We need tech that helps people understand each other. That understands my business. Weve got some work to do. And we need your help. We need your support. Lets expect more from technology. Lets put smart to work. But were also a cancer fighting, hiv controlling, joint replacing, and depression relieving company. From the day youre born we never stop taking care of you. Stocks staging an impress sieimpressive comeback here is jack lew yesterday on closing bell. Its time for leaders on both sides to find a way to deescalate joining us now is kevin gettis and ryan payne. Our guest host is still with us. Gentlemen, morning to you. Kevin, ill start it with you. You said well test the prior low on the tenyear yield. There are all sorts of firms out there, institutions, pimco saying zero. Bank of mer aamerica and merril lynch saying zero percent. Where do you see us ultimately going . Somewhere in between there. I will tell you midmorning yesterday i had a vision of 2008 coming back to me when we were in basic free fall it was great to see that consolidation and a rebound in the afternoon even as a bond guy. This is one of those rare opportunities where we are waging the dog i do think the fed is behind the curve again and they will have to be aggressive in september if not before the fed could go in a premeeting ease if we saw another day like yesterday. If we see some stability im fine with where we are we probably will take out the 2016 low at 1. 35 on tens, and the curve flattening would indicate the fed needs to get moving soon. I dont want to be a fed defender or barber, but how do they get ahead of the curve when every central bank has either eased already or has telegraphed an ease to come in september that was the surprise of yesterday with india and new zealand. Uncertainty is not your friend it wasnt yesterday. I think that set off the bond market if we could see stability, the fed is where they need to be where the race to the bottom is occurring and the fed is behind that the market is dictating the next terms thats something they can possibly wait until september. We need to see stability yesterday afternoon the free fall in treasury yields we were witnessing t felt like 2008 times. The equity markets followed, but ultimately we closed 5 off the july record highs on the s p 500. So were not far away from full valuations here. Full valuations, 18 times forward earnings the thing that scares me is all that money jammed into bond funds. You have 255 billion god forbid something eases off with trade, Global Growth picks up the second half of the year, that means Interest Rates go up, the tenyear goes up and the bond funds will get hammered to me thats the risk. I think the equity markets are a bonafied deal here you think well see a spike in yields to a point where it will cause tumult in the markets . It only has to be a tiny one and the bond market i think will implode. You made the comment about if you had a weakening dollar, these massively levered private Balance Sheets could be in big trouble. Youre right. This is where the currency is as important as what the fed does i think that liquidity could be tested especially in the fund market if you remember back in 87, everyone runs for the exits, mutual funds dont have cash on hand to pay for those lick dagsdag liquidations we could see that again. Im hoping calm reemerges. It would be a real liquidity test this sounds like scary stuff, tobias the world is not so bad if you look back at 2016, everybody was terrified of the energy sector. Everybody was worried about this imploding, driving down yields we dont have that kind of environment today. Were not 2008 i lived through 2008, watched my Company Stock go from 56 to under a dollar i dont think the Banking System is struggling the way it did before the private lending area is worrisome. I have great sympathy of all this money going into bond funds. Even if we saw a spike in yields, which i doubt, if it goes from 1. 72 to 2 , thats probably still lower than where many of the Bond Fund Investors came in. They were probably coming in at 2. 5, not 2 i dont see the world coming apart, even china trade. I talked to two greek shipping magnets in the last two months and asked them as you would. Only two . Only two. Through our private bank these are not friends. I asked one to adopt me, but beyond that ive asked them specifically what are they seeing on their china trade . Whats going on with their ships . They say things are okay not great, not terrible, theyre okay its hard to see the bond market or the tenyear yield dropping back it might for technical reasons retest the lows of july 16th, but its kind of hard to get quite there. Okay. In terms of fundamentals give us a setup im sure you looked at your screen were about ten basis points higher this morning than we were about 24 hours ago when we were watching that freefall what do you think we do today . I throw out all my forecasts that i made prior to november of last year and the last two weeks of this year im not an alarmist, but theres a chance we get back 1. 75 is where i was for the end of the year we could go back and test that 1. 35, but i think we settle around 1. 50. Even if you dont have a trade deal by the end of the year. 1. 50. Great to have you both. A lot more on squawk today. We have our stock big movers in a minute including a streaming player getting a big boost in early trading that is not netflix or amazon. But check this out its up 275 yeartodate. Thats our mystery chart you can take your bets, place your bets, well tell you the right answer after the break. And customer backlash at soul cycle and equinox because of a fundraiser for President Trump. Politics and business colliding. That story after the break with all that usaa offers why go with anybody else . We know their rates are good, we know that theyre always going to take care of us. It was an instant savings and i should have changed a long time ago. Were the tenneys and were usaa members for life. Call usaa to start saving on insurance today. Time for the executive edge. The mystery chart we showed you before the break did you guess . Its roku. The company reporting a smaller than expected loss as they Beat Estimates. They topped 30 million users they expect twothirds of its revenue to come from the ae a s shown on its streaming services. Can i tell you how wrong i was on this one . I didnt understand. How a Company Selling hardware i thought of it as a hardware company. I thought its a box how could the box and this piece of hardware. The margins its the next gopro thats what i thought when this company was going public i thought how . They have blown away every expectation. Kudos to you for making me feel stupid separately some customers of soul cycle and equinox gyms are protesting after stephen ross planned to host a fundraiser in the hamptons the tickets are 250,000, and you get to meet the president. Ross is also the owner of the Miami Dolphins some are saying theyre canceling equinox memberships and Billy Eichner said money talks, especially with these monsters if its too inconvenient for you to trade one luxury gym for another, you should be ashamed no disrespect to the many wonderful employees at my local equinox. Bye. Chrissy teigen tweeting everyone who cancels their equinox and soul cycle memberships, meet me at the library and bring weights. Equinox and soul cycle say they have nothing to do with the fundraiser for President Trump and they say mr. Ross is a passive investor and is not involved with the management of the business stephen ross put out a statement saying while some prefer to sit outside and criticize, i have known donald trump for 40 years, while we agree on some issues, we strongly disagree on others i will be a champion for racial equality, ncligs, ainclusion, d Public Education and environmental sustainability i have and will continue to support leaders on both sides of the aisle to address these challenges you saw andy cohen from bravo on instagramt know he was going back and forth on whether he was going to the gym yesterday. He has an equinox membership you can see how these things can collide and what they can do to the brand. The question is can they push through this and change the dynamic. And should stephen ross bow to the pressure. Everybody has the right to pursue their own politipolitics you can see how it can come back on the other end a couple years back kevin plank went on cnbc with scott wapner and he made a pro trump comment. Soul cycle is all about progressivity. Two socially conscious progressive Smart Business people started it, and the entire culture of the business is based on that you go to one class you know thats the culture of that company. Thats different from under armour in that kevin plank made one comment. This is a fund raise for donald trump. It will be tough for melanie, the ceo of soul cycle to get this back on track is this a risk to their performance as a publicly traded company eventually its a risk immediately today theyll have fewer riders that will show up for soul cycle. The we now is how will they come back from it how will they address it these are smart people does this filter throughout the Business Community in a broader way . Think about all the big private equity firms that have so much ownership and interest across and do people look at how money flows and filters to specific people im thinking Steven Swartzman has been a longtime supporter of President Trump im sure theres some business owned down the line we saw it in a way when it came to Saudi Arabian money after the killing of khashoggi so people were scrutinizing that and then that blew over. We saw this with chickfila as well, people were upset about certain christian values this understood of will people look more deeply, the only caveat i put here other than saying this is another reason for me not to go to the gym, is the notion if were going down these social justice warriortype battles, i would like to see consistency. They may be willing to look the other way on some things, then stuff about donald trump brings out their ire. If youre going to be consistent about it, your concerns on social consciousness, do