Washington many. But it is stronger than expected much more on china coming up in a few minutes. European equities, again, sliding in the last few hours. Germany basically flat were taking that to 3 decimal points here. France, uk, spain slightly negative, italy essentially flat as well. Finally treasury yields, the tenyear hovering right around 1. 7 1. 69 is where we have it right now. So certainly something that investors are watching. Yeah. You have yields slipping again a little bit this morning, but were off the lows of last week, which briefly dipped below 1. 6 on the tenyear. Thats encouraging yields had such a big effect on equities as we all know. I think on europe the interesting thing to note this morning is that were not seeing a gap up again in terms of the spread of italian over german yields and talk about the potential new election coming up hong kong, is down 9. 5 , shanghai down 5. 5 it is weighing more on the shanghai market. We saw that elevation escalation of concerns with the protests in the airport, its not weighing on mainland market over the course of the weekend. Not yet. Well, it has done of late, but this latest escalation perhaps has been expected or provided things dont escalate further with the Peoples Liberation army being sent in, its not actually hitting the hang high market today Goldman Sachs out with a new call, warning the trade war may be having a bigger impact on the u. S. Economy than expected in a note to clients, anl litss led by chief u. S. Economist now say a trade deal between the u. S. And china isnt expected before the president ial election next year. Goldman expects this to lead to a drag of 0. 6 on the economy versus previous estimate of 0 prntd. 2 cutting 1. 8 from earlier estimate of 2 goldman says uncertainty over trade could reduce companies to reduce spending. Goldman expects President Trump to carry out his threat to impose a new round of tariffs on additional 300 billion on chinese goods starting september 1st. Our guest host is Peter Boockvar good morning. Good morning. Lets start on that gdp print. Where do you stand relative to that and are they playing a little bit of a late catchup or stand alone estimate at the moment i think its a late catchup global trade, Global Manufacturing i believe is essentially in a recession so the question now is how much does this spill over into the Services Side which has held up better and at least in the u. S. Can consumer and weve already seen a reduction in hours worked and manufacturing. Thats going to lead to slower hiring and then if this continues that will lead to eventual layoffs, weakness and Services Consumer and so on. So were sort of sacrificing a potential global slow down in a global recession for reasons i cant figure out in order to address our beef with china. And you think that that beef with china has now gone too far perhaps initially it wasnt having too much impact on the u. S. But now we crossed some sort of line from day one i said the tariffs were really bad mistake. A really bad choice to address as a tool with our issues with china. Now we have a global slow down to what end . Were more than a year into this with china, instead of making progress on a deal were further apart. Now we keep doubling down, doubling down with tariffs and think china will say, lets make a deal there was an editorial saying the tariffs are working and the definition of tariffs working is china is going through pain. Well, the whole world now is going through pain and thats how they define the tariffs working . I dont get it. Hold on hold on. You were on the other end. Never i was always against the tariffs from day one. But there have been times when you come on and we had a conversation about the idea that maybe this could be working or worth it. Never not me. Not you ever. Another guest. Another guest. But is it fair to say, peter, that other countries, even if its not your definition of winning, other countries are hurting more, china in particular, sadly lost eurozone counties as well and the u. S. Has more ammunition to play with to offset this such that it might lead to china blinking first . Thats the strategy thats the hope, right but i dont think that you bang somebody in the head enough that theyre all of a sudden going to say lets make a deal. I think the better strategy to address our worries about china stealing our technology was go after those that are actually stealing with like what were doing with huawei. We almost took down zte. Go directly to the companies that are stealing our Technology Rather than just spraying these bonds in the sky, lands on our intended target but theres a lot of Collateral Damage here. I think even the white house officials who supported tariffs as a strategy in the last week are increasingly on edge because theyre not sure what the road map is from here or exactly where this goes and what the outcome will be in the next few months. Right now you are touching Consumer Products in fact, the Consumer Product portion of the tariffs could hurt us a lot more than it hurts china. You look at china when they build an iphone. Theyre really just assembling it a lot of those parts are made in other countries. Youll be damaging these other countries more than youre hurting china. China is just assembling it and shipping it back out i think this has gone way too far, its getting out of control and really concerns me. We have more news well talk to you more in just a little bit. Give you little piece of news this morning, black rock has just become the largest shareholder in Sports IllustratedParent Company and all of this just moved around quite recently Authentic Brands ceo told black ds rock bought roughly 30 stake for 875 Million Dollars values Company Brand management at 4 billion that includes debt salter and his family will still control 20 of the firm. Authentic brands also owns 50 athletic retail brands includin aeropostale and nine west. Well see whether blackrock play this game. I thought it was a typo that it was supposed to be blackstone. Right. Interesting this is blackrock. Early story was blackrock was spun out of blackstone there you have it. This one is the one everyone has been waiting for wework could unveil ipo filing as soon as this week they confidentially filed to go public if you remember back in april, talked about that back in the time according to its most recent private funding ground in january, wework is valued at i cant say this number because its just so spee shous, 47 billion. The issue is whatever you see in the next week or two is not going to be 47 billion, more likely to be 25 and 35 billion. Theyre worth so many different ratchets and other provisions inside that funding deal then with softbank that its unclear what the actual valuation will be but thats what everybody is waiting with baited breath to figure out. Most of the unicorns have been asset light their assets are their people and their software and their technology this is very much a different ball of wax, a company will real estate leases, corporate debt obligations, completely different Financial Model than anything else we have seen. Totally agree different Financial Model to the likes of uber, but i wonder how much they were watching not ubers ipo fall after their earnings last week and how annoyed theyll be about that despite the massive successful ipos the headline will be the compares with youtuuber with rae after growth slowing theyre rushing it, too they see whats going on in the Capital Markets and trying really to pull this forward to get it done as quickly as possible. Investors will likely have a lot of questions about adam newman cashing out that Massive Equity stake. Cashing out the stake, investing in some of the buildings, his own company youll be at the road show . This will be rated nc 17. Only financial journalist could make that kind of a joke. And nobody will laugh so its okay. Serious story now. Update on the apparent death by suicide by Jeffrey Epstein an autopsy has been performed but the chief medical examiner says more information is needed before a cause of death determination could be made. Epstein was found dead saturday morning. He is believed to have hanged himself in his cell at the Metropolitan Correctional Center in new york. He was accused of sexually assaulting and trafficking girls as young as 14 attorney general william barr said he was appalled by epsteins apparent death by suicide it raises serious questions and would be nfg investigated by the fbi. He was thought to be on a 24hour suicide watch after a previous attempt but sources said that was lifted after a psychiatric evaluation. Now new reports that security guys, two security its two security people at the prison who had been working overtime, it was their fifth day of overtime, they somehow didnt look i dont know lots of theres no video. Theres lots of conspiracy theories. There was no cell roommate. Right. So, i dont know i dont know how far down the rabbit hole we want to go on this whole Conspiracy Theory by the way, i believe President Trump was retweeting conspiracy theories about what may or may not have happened. But new york city mayor bill de blasio was asked about this on msnbc last night he has full confidence in the medical Examiners Office to get down to the bottom of the autopsy report and cause of death but has no confidence in the department of justice which is leading the investigation. Of course a political commentary there. He has access to information about this. This story is not ending for a very, very, very, very, very long time and separately theres a whole move afoot on the estate to freeze the estate and freeze all the money because theres so many people who want justice and want the financial justice and how thats going to get dispersed. Unclear if he has a will and whether that would stand any way given that he was under investigation. Well talk to kate kelly in an hour or so. Shes been doing a lot of the reporting to untangle the estate. When we come back on squawk box, breaking news out of hong kong protests forcing the airport to cancel all flights for the rest of the day well take you there live coming up next. As we head to break, here is a look at the biggest premarket winners and losers on the dow. [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. Is it to carry cargo. Greatness of an suv . Or to carry on a legacy . Its show of strength. Or its sign of intelligence . In crossing harsh terrain. Or breaking new ground . This is the time to get an exceptional offer on the mercedes of your midsummer dreams at the mercedesbenz summer event, going on now. Lease the gla 250 suv for just 329 a month with credit toward your first months payment at the mercedesbenz summer event. Mercedesbenz. The best or nothing. Hey i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . 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. Welcome back to squawk box. Protests in hong kong forcing the airport to cancel now all remaining flights for the day. Nbcs matt bradley joins us now from hong kong this morning. Good morning to you. Reporter hi, andrew. I actually have to catch a flight tonight because i have to go to my sisters wedding in baltimore this weekend, so this is a big, big problem. But its a major escalation for this entire city you know, its consistent with whats been going on in the last couple of days hong kong authorities have been trying to draw a line between the protesters and the public by pointing out that these protests, which are now in their third month, are really damaging the economy. Shutting down the airport is a major escalation for the protesters and it all started because last night we saw scenes of the police using what a lot of protesters say is Excessive Force against the demonstrators. Now, we saw the Police Firing tear gas at close range at protesters inside one of the mass transit rail stations here in hong kong and then we also saw an image of a young woman who had been hit by some kind of projectile the police say it wasnt them. And she might actually have to lose sight in her right eye. Thats why youre seeing a lot of these protesters at the airport with eye patches on. Its part of the demonstration so its unclear where this goes from here. This is a huge escalation on both sides a lot of the protesters i have been following on social media are speculating this is turning down all the flights in hong kong airport was a deliberate overreaction by the hong kong authorities. Theyre trying to embarrass the protesters and again trying to separate the protesters from the public here in hong kong of course, if hong kong is nothing else, its a place of doing business you know, the authorities here are worried that if they continue to rile up beijing, that they could really damage the bottom line here thats what we heard today an officer in beijing said there was terrorism and this chaos was getting out of control thats a very ominous sign and warning to some of the protesters and authorities that china themselves could escalate this situation that would be a major problem for everybody. Andrew okay. Matt bradley, we appreciate it. One quick question, sorry, andrew matt, clearly we look at all these amazing pictures from over the weekend and know that the airport is still closed at the moment but how much have things changed in the last 12 hours the weekend ended and monday morning began. Reporter like i said, this is a major escalation. Theres been thousands and thousands of at one point early on in the protests there was Something Like a Million People on the streets of hong kong. So this really has ramped up you know, the interesting thing about this is that we dont talk about the extradition bill that much anymore wh when i talk to the protesters, they dont mention it as one of their primary complaints every time the protesters confront the police and the Police Confront them back, it just creates more images like the ones that are inspiring the protesters to go out to the airport today. Police brutality has become the main issue, not that extradition bill so things are changing very quickly. The problem is this is a leaderless movement. Its unclear who the authorities in hong kong can negotiate with in order to try to appease or end these protests andrew matt bradley, thank you well continue this conversation we want to get over to eunice yoon in beijing with more on the fallout from the hong kong protests i have a million questions, eunice i will leave it to you first eunice reporter thanks so much, andrew businesses are under pressure to pick a side over hong kong here in the mainland, on social media, the chinese have been calling for boycotts of brands which they believe dont appear to pay enough respect to chinas sovereignty. So companies such as coach, versace are all being fiercely criticized for tshirt design which the chinese eye appear to show hong kong as separate, as a separate country from china as opposed to a chinese territory the hashtag coach has been viewed over 1. 3 billion times so far. Chinese celebrities and Brand Ambassadors have cut their ties with the fashion houses. All three labels have apologized fiercely in order to try to ease some of these concerns, but the authoritative peoples daily posted a warning directed at all Multinational Companies which said if you challenge the bottom line of chinese sovereignty, how far do you think you can stay in china before your body becomes cold businesses in hong kong are also feeling squeezed airline cafe pacific in particular it received instructions from the chinese aviation authorities said all of its staffers who are engaged in or support the hong kong protests are barred from flying on mainland chinese routes the ids for all of the crews that come in here that are china bound have been submitted to the beijing authorities and also by next thursday the airline has to come up with a more detailed plan of exactly how it plans to comply with beijings demands even further so the chairman of cafe pacific has said that he doesnt plan and the company doesnt plan to dictate to their staffers how they should think, but one pilot has been suspended and other ground crew have been fired. And the airline said that overall it will comply with chinese regulations. Guys eunice, i think the big question, at least in the markets, is capital flight, does the pla show up, if they do, what does that mean . And i would even raise the question of where you think President Trump is in all of this and what he wants. Well, right so, in terms of whats happening on the border, there have been a lot of reports about how a pla troops or chinese troops have amassed on the border. Nothing has happened so far. And if we were to see them coming into hong kong for some kind of similar Tiananmen Square sort of incident, which has is really the big concern among a lot of hong kong activists, that that would be the Nuclear Option when it comes to beijing because the authorities here are very aware of what kind of message that would send to th