Right now. Lets get it started lets get it started in here good monday morning and welcome to Worldwide Exchange im dominic chu in for Brian Sullivan today here is how your money and the Global Markets are setting their day up, at least to start. Stock futures indicating the dow will open by about 215 points. The s p up by 23 and the nasdaq up by 61 points as well. The bond market right now is already in focus because yields are creeping higher. The yield on the tenyear treasury note right now currently just around 1. 61 . The twoyear note yield 1. 53 . So for those keeping score, that eight basis point spread between the two getting wider after an inversion that briefly happened over the course of the last couple weeks lets go worldwide now in asian trading, Central Banks in china unveiled an Interest Rate reform aimed at helping Lower Borrowing cost for chinesebased companies. That in turn helped send the entire market in asia higher the shanghai composite up by over 2 . The hang song in hong kong up by over 2 as well and the nikkei in japan up by three quarters of 1 in european trading, stocks there helped by comments from germanys finance minister saying his country has the fiscal strength to mitigate any future economic crisis with, quote, full force. He suggested berlin could free up around 55 billion of extra spending in that fiscal stimulus or possibility of that moving those major boris up the ftse 100 about two thirds of 1 as well a big week ahead for wall street kicking off today with big tech executives testifying at a u. S. Trade representative hearing tomorrow Quarterly Results from home depot, kohls and t. J. Maxx. On wednesday, fed minutes and report on existing home sales plus results from lowes, target and l. Brands. Thursday the jackson hole symposium for the fed kicks off. Fed chair jay powell will be speaking there on friday but its the economy thats taking center stage this morning. More specifically President Trump and his top economic aides pushing back on the idea of a looming u. S. Recession, a threat that sent shock waves all across wall street last week and pushed the 30year treasury yield to its lowest level ever. I dont think were having a recession. Were doing tremendously well. Our consumers are rich i gave a tremendous tax cut. And theyre loaded up with money. Theyre buying i saw the walmart numbers. They were through the roof. I sure dont see a recession. We had some block buster retail sales consumer numbers towards the back end of last week. We have the strongest economy in the world money is coming here for our stock market, its also coming here to chase yield in our bond market so, does the white house and the Trump Administration have it right . Joining me now is timothy horseburg. Timothy, you heard what the administration has to say. They have a point perhaps, but is it the recession and that fear of thats really driving the markets right now. Well, i absolutely think when you look t the near term Market Action last week particular pli around concerns with the brief yield curve inversion we saw that is certainly one of the things setting the tone for risk assets right now, but with that being said, largely we have a similar view to what the administration is saying when you see some of the underlying strength in the u. S. Economy right now. So lets put it this way, is the recession fear overblown given that brief yield curve inversion that you stated because there is a feeling that the economy in the u. S. Not robust but good enough from a relative standpoint to the rest of the world theres certainly a rising risk of recession thats crept into the conversation today and right now, particularly as it concerns trade policy because that is one area where at least so far we have seen more of an impact on sentiment than we have on real growth, but there could be significant damage if all the proposed tariffs and the escalation of the conflict continues. Over the course of the past couple weeks, cnbc viewers have noticed that we put the yields in that little thing at the bottom of the screen there well show you exactly whats happening with the 10 year, 2 year, 30 year. Is it fair to say that Interest Rates are the key focus . I think thats certainly been the primary focus over the last few weeks because thats the one area of the market where were certainly getting a more unusual signal than what we have been seeing in lets say credit markets, currency markets or even the stock market, which while you have seen some volatility isnt significantly below recent highs so i think thats one area thats signaling to us there could be concern on the horizon. But again we need so see much more persistent signaling from the treasury market, particularly around yield curve inversion for several months before we start to get really concerned. Can we talk about that credit versus treasury side of things because thats one place where theyre not seeing signs of stress the tenyear, twoyear inversions and the generally lower curve, signs of stress but high yield and Investment Grade bond markets are not showing that kind of fear right now. Is it fair to say theyve got it right . Absolutely. You know, i think thats a really interesting signal is when you look at what is Corporate America saying or what are you hearing from the bond market, particularly on that Investment Grade credit side and high yield side and spreads have been really well behaved through this most recent selloff, so that us says theres still underlying strength in corporate earnings looking forward that positive signal is one reason we think this cycle can continue. Lets assume that the markets do still have a constructive bias towards them to the upside, assuming that. Yeah. If that is the case, where are the parts of market that are going to be under the most stress and where are the ones that are poised to outperform in this current environment well, i think naturally coming back to that trade conversation, some of those companies that are more levered to either Global Supply chains or trade are going to see stress over the next few months, particularly around uncertainty planning for the future, capital expenditures, all of those things are usually directly impacted by some of the trade conflict that were seeing that being said, when we look at the broader market, were still seeing the market pay up for companies who find ways to grow even in a slow growth environment. So favoring those growthier names over value even at this point in the market. Any sectors in particular we still like sectors like tech that have that ability to continue to grow their revenues. What yield do you avoid i think what were looking at from an avoidance standpoint, some of the defensive sectors still arent appealing to us, utilities, were not just not seeing the right conditions now to get super defensive on the equity side. Thank you very much for joining us this morning. Thanks. We appreciate it. When we come back on the show, what President Trump said about his meeting with apple ceo tim cook and what it could mean for the future of the u. S. china trade war. Plus, why tech giants hoping for a little huawei relief may have to hold their breath just a little bit longer. Then later on in the show, the demonstrations continue in hong kong. Well tell you what President Trump says about them. A very busy hour still ahead when Worldwide Exchange returns after this commercial break. So, every day, we put our latest technology and unrivaled network to work. The United StatesPostal Service makes more ecommerce deliveries to homes than anyone else in the country. Ecommerce deliveries to homes think you need to pay prestige prices for better skin results . Try Olay Regenerist. The rich, hydrating cream is formulated with vitamin b3 and peptides to plump skin cells, brighten, and visibly smooth wrinkles. In fact, just 1 jar has the hydrating power of 5 jars of the prestige cream. For visible results without prestige prices, try Olay Regenerist with a money back guarantee. And complete your routine with the olay eye collection. Brand power. Helping you buy better. From tim apple to cook dinner, President Trump sitting down with the apple ceo over the weekend talking everything from trade to competition elizabeth joins us now live from london where shes got the latest on that particular meeting. Elizabeth, what did they talk about . Hey, dom. President trump and apple ceo tim cook sat down for dinner friday night at the president s golf club in bed minister, new jersey the president saying cook made a, quote, good case about how a new round of tariffs could hit some apple products and could set the Company Behind in competition with its south korean rival samsung take a listen. Its tough for apple to pay tariffs if theyre competing with a very good company thats not. I said how good a competitor he said they are a very good competitor so, samsung is not paying tariffs because theyre based in a different location, mostly south korea, but theyre based in south korea and i thought he made a very compelling argument, so im thinking about it. Now you remember south korea and the u. S. Struck a trade deal last year while apple meanwhile still relies heavily on production and on sales in china. Apples stock has been on a roller coaster since President Trump threatened additional tariffs on 300 billion dollars worth of chinese goods, including electronics. Samsung is the biggest smart phone seller in the world, it captures about 23 of Global Market share and is trailed by huawei and then apple, thats according to the latest data from Research Firm idc, dom. So elizabeth, speaking of that huawei side of things, were expecting an expiration today for those temporary licenses from Commerce Department on doing business there. What kind of dynamic does that bring to the overall relationship with china, the trade talks and Everything Else within the tech universe especially for smart phones . Yeah. Its a huge part of it, dom. President trump saying he doesnt want to do business with the chinese tech giant, with huawei because of these National Security concerns. In may the Trump Administration did issue that temporary license that allowed huawei to continue working with its u. S. Customers despite the underlying security fears. Now that license, as you mentioned, is set to expire today. We did get some reports over the weekend suggesting it could be extended yet again, dom. This back and forth continues with huawei sort of stuck in the middle between the u. S. And china in these trade negotiations. Thank you very much for that update we appreciate it still on the deck for the show here, President Trump doubling down on his strategy to link the u. S. china trade war to unrest in hong kong as demonstrations there continue. Then later on, tesla relaunching its struggling Solar Panel Business with a pretty attractive price tag, but theres a big catch. Worldwide exchange is back right aftethr is with tough food, your dentures may slip and fall. Fixodent ultramax hold gives you the strongest hold ever to lock your dentures. So now you can eat tough food without worry. Fixodent and forget it. Were pretty different. Were all unique in our own ways. Somos muy diferentes. Muy diferentes. vo verizon knows everyone in your family is different. There are so many of us doing so many different things. vo thats why verizon lets everyone mix and match different unlimited plans. Sebastians the gamer. Sebastian. This is my office. vo and now with more plans, everyone gets what they need without paying for things they dont. New plans start at just 35. The plan is so reasonable, they could stay on for the rest of their lives. Aww, did you get that on camera . Thanks, dad vo the network more people rely on gives you more. Welcome back tens of thousands of protesters hit the streets of hong kong yesterday. This was the latest in a months long series of prodemocracy demonstrations there the crowd did not obey a Police Request to stay within the bare yers of a park, but the atmosphere was more peaceful than in other recent protests. Here is what President Trump said yesterday i really believe if president xi sat down with representatives of the protesters, and they do have representatives, pretty good representatives, pretty strong representatives, ive been watching and seeing them. If he sat down, i think he could work something out. But however, in beijing, a spokesman for chinas legislationture condemned statements from u. S. Lawmakers supporting that hong kong movement, calling them, quote, a gross interference in chinas internal affairs well, still to come on the show, wicked weather ripping across the country over the weekend. The incredible video you have to see. Later on, why days of working 9 to 5 could be a thing of the past. Well fill youn en iwh Worldwide Exchange returns right after this break devices are like doorways that could allow hackers into your home. And like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. Welcome back thanks for being with us here on cnbc this morning. Futures right now pointing to a solid open for stocks if these futures gains hold into the opening bell the dow would open up 240 points the s p by 25 and the nasdaq up by 72 as well. Coming up on the show, futures pointing to that more than bigger huge jump there when Worldwide Exchange returns after this the big stories youll need to watch. Ahh. Your teeth hurt . Sensitivity. Gotta do something about it. New crest gum and sensitivity starts treating sensitivity immediately, at the gum line, for relief within days and wraps your teeth in sensitivity protection. Ohh. Your teeth . No, its brain freeze crest. No recession President Trump pushing back on fears of impending economic downturn working with huawei. A temporary deal that lets the Chinese Company do business in the u. S. Expires today a live report from beijing thats straight ahead. Plus, could the european work day be getting shorter . Why one lobbying group is hoping to make that happen. It is monday, august 19th, 2019, and you are watching Worldwide Exchange right here on cnbc working for a living working for a living welcome back and thanks for being with us here right on cnbc im dominic chu in for Brian Sullivan today the top headlines, phillip mena with the latest. Good morning. Extreme weather ripped across the country this weekend in pittsburgh, a violent micro burst caused two buildings to collapse powerful winds brought down trees and power lines as well. Amazingly, Officials Say nobody was hurt as powerful storms move through the midwest, wind gusts reaching over 80 Miles Per Hour caused two trains to derail in kansas and dozens of cars had to be turned up right with the help of heavy machinery. A suspected wedding crasher is now the subject of a police hunt after Authorities Say she attended several weddings in texas uninvited and stole gifts. Police say the unidentified woman primarily took envelopes of cash and gift cards officials posted surveillance photos of the suspect on facebook at a location where she tried to use one of those stolen gift cards police are now offering a 4,000 reward to anyone who can help them lead to their crashers arrest. A massive crash during the first lap of the abc supply 500 at pocono raceway. It started when one car was sandwiched between two, eventually making contact and sliding into the wall. The cars bounced back on to the track sending another flying nose first right towards that fence. Dom, back to you stunning video for sure phillip mena, we appreciate it. Here is how the money that you have in your investments are shaping up right now as were halfway through the 5 00 a. M. Hour in new york stock futures pointing to what should be a solid open for stocks in regular cash trading for equities the dow jones opening up by 235 points the s p 25 points and nasdaq by around 70 points as well bonds still a very big focus for investors adds Interest Rates remain center stage. The tenyear 1. 61, twoyear 1. 125 lets get a check on the asian markets as well. They were generally positive stocks rising in china after the pboc announced plans for Interest Rate reforms in an attempt to support an economy hit by a trade war with the United States. You can see the nikkei and japan up. 75 to close, shanghai composite up over 2 european markets trading higher on stimulus hopes there. Germanys finance minister says his country has the fiscal strength to counter any future economic crisis with, quote unquote, full force. He suggested berlin could free up around 50 to 55 billion of extra spending. Is the u. S. Economy at risk of a resnegs President Trump