It is tuesday, june 18th Worldwide Exchange begins right now. Welcome to the show. Welcome from wherever in the world you may be watching. Im Brian Sullivan thanks for joining us. Two major market stories developing at this hour. Futures are higher right now nothing seems to hold this market down. Dow futures up 74. All as the fed kicks off a twoday meeting today. Tomorrow we get the decision on Interest RatesPay Attention to this. I know its wonkky. The yield on the german tenyear note our tenyear note is yielding 2. 5 . Their tenyear note is yielding negative 0. 29 with this press conference from the ecb, we saw the yield on the tenyear bund in germany continue to fall you are paying to borrow money its an incredible story there well have more on these big stories coming up. First we have to get to europe we have breaking news there on facebook the social network revealing its cryptocurrency ambitions lets get to Julia Boorstin in cannes, france with more facebook announcing a new Digital Currency called libra. Facebook says it makes it easy to send money around the world as it is to send a photo the currency, set to launch in the first half of next year will be run by a nonprofit based in switzerland. Unlike bitcoin, libra will be backed by real money put in a dollar or another currency in, get a dollar worth of libra out the goal is for that reserve to limit the currencys volatility. Facebook is partnering with 27 other companies to start libra as an open source currency the companies range from mastercard to uber and lyft to nonprofits that focus on financial inclusion. Facebook planned to have over 100 developers on board by launch facebook plans to profit from libra. It is creating a new subsidiary called calib bra, a digital wallet that will be a standalone app. It will allow anyone to store money for free and to send and receive libra standly around the World Without fees facebook could add loans which it could profit from david marcus tells me the digital wallet will be secure and separate from the rest of facebook so Financial Data and ad targeting are not combined facebooks larger goal is to get people to spend more time on its various platforms and to easily make purchases from the 90 million businesses that operate on facebooks platforms. Facebook says it is working with regulators and it expects the app to be improved we will have a first on cnbc interview with calibra chief david marcus at 7 15 a. M. Eastern. Back to you. I have a lot of questions here is this going to be pegged one to one then to the u. S. Dollar it will not be pegged one to one to the u. S. Dollar, but because it will be backed by reserve, backed by euros, but dollars, by any other currency, it will have an actual bank of money behind it so it wont have the volatility of a bitcoin or some of the other currencies which are not pegged or backed by real currencies facebook would hate this then its not a cryptocurrency then, its gold or paypal. Its a Digital Currency its a Digital Currency, just backed by real currencies to remove that element of volatility the speculation that goes into currency like bitcoin the thing about bitcoin t c, it can mined and minted without currency behind it this aims to be more like a real currency but backed by other currencies okay backed by other currencies. Sounds a lot like gold. Julia boorstin in cannes, france thank you. Well get more from julia in a bit. Lets turn to the macro markets. The big story right now is also out of europe. Ecb president mario draghi says the bank could ease policy again either through rate cuts or bond purchases if inflation doesnt pick up. The euro sliding dramatically on those comments 1. 118. Also big moves in the bond market yield on the tenyear bund hitting a new record low eurozone money markets are fully pricing in an ecb rate cut by december our futures are higher the fed kicking off a twoday meeting later on today the Interest Rate decision coming tomorrow. The yield on our tenyear note, sliding a little bit down to 2. 05 . Lets talk about all of this and bring in candace bankson member of the Global Asset Allocation Team at fiora capital. First off, i want your reaction to the ecb certainly appears that they are ready to ease up, maybe cut rates again. Another round of stimulus. Is that going to effect what our Federal Reserve would and should do its not surprising its similar to what were seeing across the world from Central Banks, whether its the Federal Reserve, bank of japan, ecb, expressing that willingness and readiness to act if necessary due to the number of headwinds out there. Yeah. Do you think our Federal Reserve is going to do anything with rates tomorrow will they cut rates or will they simply hint around again potentially about more rate cuts so our expectation is that its premature to cut rates tomorrow they will err on the side of caution and express they will be monitoring the backdrop without knowing the outcome of the u. S. china trade situation later this month at the g20 gathering, you know, its our view that its premature but they will be, you know, putting the market at ease by expressing that they are acknowledging the risks out there and will be ready to act if necessary what are you advising then what are you doing and what are you advising your clients to do given the macro backdrop on the fixed income side, our ek expectation or our view is the rate market is priced much too richly rates have fallen much too fast. The fact that the market is pricing in three rate cuts from the Federal Reserve in our mind is misplaced, particularly being that the economic backdrop is fairly sound in this environment we recommend that our investors are underweight fixed income because we believe even if the fed does nothing, rates should move higher in the coming years. Thats why were underweight fixed income on the equity side, the fact that Central Banks are being fairly supportive, even in the rhetoric, combined with a strong fundamental back drop should bode well for equities in the coming year. Everybody thought we would be at 3 , 3. 5 on the u. S. Tenyear by this time what makes you so certain that rates are ever going to rise well, again, it all comes back to the fundamentals the growth is there. Inflation, while still below target is stabilizing. If you take that together with low unemployment, strong job market, rising wages, our expectation for Higher Oil Prices this should help to feed into inflationary pressures. Of course the longer end of the curve. All right thank you. Appreciate your insight. When we come back, we are just Getting Started on a busy tuesday. Opecs de facto leader calling for new production cuts despite tension in the middle east and will they ever decide on a date for the next meeting . And how the engine of the worlds second biggest economy is doing amid the u. S. china tl trade war. And much more on facebooks new currency push. How the social Network Plans to keep it safe and keep you protected from hack attacks. Ud . Ud . It has to work like air traffic control. Its gotta let new data integrate with data from our existing systems. Be able to pull from reservation platforms built 20 years ago. And also be able to use apps to book superpersonalized trips on shiny new phones from the future. Plus, i need freedom to move my workloads wherever, whenever but manage it all from right here. And thats the cloud i want. Simple, right . Expect more from your cloud. Ibm cloud. 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. Welcome back were following a major developing story the pentagon announcing plans to deploy another 1,000 troops to the middle east. All this as tension with iran escalates following last weeks attack on two commercial ships in the gulf of oman. Hadley gamble has more good morning. Youre absolutely right. This is the second u. S. Troop increase in as many months this follows those six attacks that the United States is laying at tehrans door the chinese and russians have come out on this troop increase warning this risks the possibility of a war with iran but irans president came out earlier saying iran will not wage war against any nation. Those facing us are a group of politics of little experience. I do want to emphasize when we talk about adding 1,000 u. S. Troops, there are already 20,000 u. S. Troops in this region there are boots on the ground, im talking about afghanistan, iraq and else wherwhere. We have the massive infrastructure that is the fifth fleet. This organization encompasses the coast guard, naval aviators, many, many ships in the persian gulf, they are watching the coastlines of some 27 Different Countries across millions of square kilo meetmeters of water. Adding 1,000 troops seems like a big number, it does come on the heels of another troop increase of 1,500 u. S. Troops a month or so ago in may, at the same time its important to put it into perspective and think about what this is doing, thats the optics it seems to be assuring u. S. Allies in the region, like saudi arabia and the uae that the United States still has their back thank you very much despite the rising tension in the region, new calls this morning from saudi arabia for opec to continue to cut its oil output in the second half of the year the Saudi Energy Minister reportedly telling other nations that the risk of slowing Global Demand for crude far outweighs threats of war and worries about supply disruption in the middle east saudi arabia already reduced its output by 150,000 Barrels Per Day in may those cuts continuing well into the month. Crude oil is down a bit to 51. 67 a barrel still on deck, how the u. S. china trade fight is impacting the engines of the worlds two biggest economies and in particular the Chinese Consumer and later, boeing falling flat on day one of the Paris Air Show the one number boeing investors might have a real hard time dealing with today when Worldwide Exchange returns my mom washes the dishes. Before she puts them in the dishwasher. So what does the dishwasher do . Cascade platinum does the work for you, prewashing and removing stuckon foods, the first time. Wow, thats clean cascade platinum. Trade tensions continued to rise between china and the United States but how is it impacting the driving force behind the worlds secon largest economy which is the same driving force that we have that backs ours, the consume ir. Eunice yoon has more on how this might be impacting the chinese shopper. Thank you very much. Well, right now im in one of jds physical stores this is a fresh foods store that jd is hoping to roll out in various cities across the country. Just like the way amazon and walmart are in a food fight in the United States, jd is in a food fight in china with alibaba. So this is one of their stores to give you a sense of what theyve done, they raised the bar. Its a hightech supermarket i can use my mobile phone to scan a live fish and then find out exactly where that live fish has come from. So this is the idea of fresh food is a part of jds efforts to reach out to son tsunaconsum especially on this big holiday, its 6 18, which is a major holiday that jd created. The idea is to boost consumption especially online. The company says it is on track to break its record from last year of 25 billion. And the company itself, brian, has been hoping that this will help one of the major problems here, which is the concern that Consumer Spending is slowing down when you look at other consumption data it has not looked good. One more point about the live fish, in china, as opposed to the United States, you have to make sure that you take your lye fish and bring it to a Processing Center that is in your Grocery Store otherwise the assumption is that you will want to take that fish home live. So it goes into your trunk live. Just a word of warning all right two comments and a question. A, if i come over, im never ride ag round with ying around car. Number two, take off your reporter hat, put on your eunice yoon Walking Around beijing hat, do you see a lot of impact about trade . Are people talking about this outside . Are they reducing their Shopping Habits are the malls empty . What do you see . Yeah. Well, people are talking about it a lot there is concern that the trade war as well as just the bad data, the economic slowdown, the stock market, all of that stuff is affecting the way people think here so people have been starting to talk about cutting back. Because if you understand the way the Chinese Culture is, its different from the United States where people are major spenders. Here people have been starting to spend but they have not been spending quite as much because the tendency for chinese is to save there is not a major Social Security net people have to pay for mortgages. Because of the onechild policy, they have to think about taking care of two sets of parents on burn persons salary or maybe two. Theres a lot of concern about whats going on in the economy that has been having an impact all right eunice yoon live in beijing. Make sure that fish has some cold water on it thank you very much. Central banks in focus, not just here but all over the world. The euro president , mario draghi saying that more stimulus there could be on the way. Our Federal Reserve kicking off its twoday meeting today. Well break down the big money impact on both these stories later on, at ts warner media closing in on a multimillion dollar deal with one of hollywoods most bankable directors. All the details when we come back applebees new loaded chicken fajitas. Now only 10. 99. The first survivor of ais out there. Sease and the Alzheimers Association is going to make it happen. But we wont get there without you. Visit alz. Org to join the fight. My mom washes the dishes. Before she puts them in the dishwasher. So what does the dishwasher do . Cascade platinum does the work for you, prewashing and removing stuckon foods, the first time. Wow, thats clean cascade platinum. Int easy. 12 hours . 20 dogs . Wheres your belly rubs . After a day of chasing dogs you shouldnt have to chase down payments. vo send invoices and accept payments to get paid twice as fast. danny its time to get yours vo quickbooks. Backing you. Welcome back to Worldwide Exchange. These are your news headlines. President trump will officially kick off his Reelection Campaign tonight in orlando and supporters are already lining up it is first come first serve so only arrived 40 hours early to assure a spot. The president will take the spot at 8 00 eastern. His speech will touch on the economy, to trade, to immigrati immigration. A house suddenly exploded and sparked a fire in ridge field, new jersey. An offduty Police Officer was nearby at the time and helped to rescue one resident who was trapped inside forget about snakes on a plane, fliers on their way from venice to newark had to deal with a smaller pest but a whole bunch of them. A colony of ants pilled out of a bag in the overhead compartment and started crawling across passengers once it landed the airlines called an exterminator and alteerd authorities. More Worldwide Exchange after this quick break youre here to buy a used car, truck, suv. Thats smart. Truecar can help. Its great for finding a new car, but you already knew that. Its also great for finding the perfect used car. Youll see what a fair price is and you can connect with a truecar certified dealer. So no matter what youre looking for, there it is. This is how buying a used car should be. This is truecar. upbeat music ready, set, cut . The Federal Reserve kicking off a twoday meeting today. Will Jerome Powell surprise the market and cut rates will they raise rates . What will they say about rates a story out of the middle east the pentagon sending another 1,000 troops to the region and facebook making a big bet on digital money will it pay off . Its tuesday, june 18th. Youre watching Worldwide Exchange on cnbc. Thank you for being with us on cnbc. Im Brian Sullivan its 5 28. The big story now is actually coming out of europe moments ago European CentralBank President mario draghi says the bank could ease fiscal and Monetary Policy again. Either through Interest Rate cuts or outright bond purchases, quantitative ea