1. 5 two year just below that at 1. 478 overnight in china, look at those stocks and youre going to see the nikkei was up by 2 , 2. 1 in shanghai, market there up by a percent and hang seng closed flat and then if youre looking at what has been happening in europe with the early trading taking place this morning, you will see mostly green arrows there. The cac up by. 9 . So is the dax. The ftse down by half a percent. Cnbc has you covered for all of the big global stories that are moving markets today were going to take you to hong kong for the latest comments from carrie lam. An update on the political crisis in the uk over brexit exclusive update on the tariff fallout for small retailers. Lets start in washington now, with the news that the the big news that is moving the markets now, trade talks with china, set to resume next month. What do you got here the news breaking last night out of beijing, the Foreign Ministry issuing a statement, here is the cnbc translation of the Foreign Ministry statement from china last night saying that they confirmed a phone call between leaders that took place this week and they say that officials have now agreed to hold the next round of talks in early october. Thats expected to be in washington, d. C. Now, look at the difference here between this statement where they say they have agreed to Work Together and take practical actions. And the u. S. Statement that i got from a spokesperson for the ustr, a slightly different statement. Theyre saying the ustr saying lighthizer and mnuchin spoke with liu he. They agreed to hold meetings at the ministerial level in washington in the coming weeks in advance of the discussions deputy level meetings will take place in midseptember to lay the ground work for meaningful progress the u. S. Statement more nuanced than the chinese statement saying there is going to be two tiers of meetings, the deputy level is going to be the first tier that will happen in the coming weeks, and then if that lays the ground work for what they call meaningful progress, then theyll go forward with the ministerial level meetings, that could be in october the u. S. Statement not committing to a specific data or a specific month the chinese statement saying that the meeting will be in october. So it seems like the u. S. , if you read this, the u. S. Side, mnuchin, lighthizer, a little bit more cautious here than liu he hes been leading the negotiations on the chinese side the u. S. Side looks more reticent to commit to anything here. Explain this, the motivation for being more cautious on the u. S. Side . What is that about or to the extend you believe the chinese are being more aggressive. Thats where youre into reading the tea leaves and beyond reading the tea leaves and speculation, we dont know why the difference is. But i think it is striking you get chinese side saying october and the u. S. Side not committing to october i pushed an official on that last night right after this news broke, and the official not going beyond at all what was in the four corners of the Statement Issued by i can tell you that the president thinks that china wants a deal very badly hell tell you that. And in this respect, i think theyre kind of like saying, all right, but remember april, and you had all these things youre going to did and you didnt do any of them. Now you say you want to talk, fine, well talk, but it is if youre back to where you were in may, it is not going to be you think statement was as much about i think hes saying hes in his mind, hes turning screws, hey, that puts us past that october data, i think it is all coming true. That xi with the nationalistic feelings that will be around at early october in china, it wasnt going to happen before that that gets us past that point where as eunice pointed out theyre unlikely to look like theyre, you know, changing or compromising or giving trump anything prior to that october notice neither side is giving us a specific date here. Were getting a month from the chinese side from the u. S. Side, not even a month necessarily. There is wiggle room here for this to be a little swishy we were told that the meetings would take place in september and u. S. Officials until yesterday were saying that they were still focused on meetings in september now we find out those meetings are going to be at a lower level in september and if that works, theyll follow up with a ministerial level meeting at some point there after both sides seem to be leaving a little wiggle room on the timing not clear what the u. S. Side means by meaningful progress and laying the ground work for that meaningful progress. What are the tiers that they have to achieve in those lower level negotiations we dont know at this point. They say lower level negotiations, on our side, who is involved in that. The last quote, lower level sounded like mnuchin, they let that meeting in china, what was it, a month or two ago. That would be a ministerial level. The ministers would be mnuchin, liu he and lighthizer. Below that is staff. Even if the ministerial level, you cant assume that any of these people are speaking for the two primaries. There are two people who are going to have to make this decision. And no mention anywhere of that the principle sitting down. Right the trade war has been very tumultuous for everyone. And hopefully something good comes out of it. But in some ways ill miss where the lightest comment can send us up 300 points. It is like Nothing Happened and just oh, well, we but on the flip side, you can send us down 800 there are days where it is, like, wow, that doesnt seem like a lot were up we spent a lot of time trying to figure out what is going on inside the negotiations. Remember we were in france last week, spent a lot of time trying to figure out what the president was talking about in terms of two phone calls from china the president suggested those happened, white house didnt offer any details on who called who or what happened there that was enough to move markets too. Letter of the law and the spirit of the law. Maybe some overtures going on somewhere. And who knows what this how knows how positive this is. The interesting thing that happened yesterday, i thought, was this the big question around all this is could this trade war expand from just tariffs into a broader economic confrontation between the two sides. The president was asked yesterday if he was concerned at all about the chinese going after u. S. Debt. That is the treasury market. Of their vast holdings of treasuries and selling those the president gave a long answer and which was interesting, but i think the important thing out of his answer was the president doesnt believe the chinese have the power to do that paubecausee believes there is enormous Global Demand for u. S. Debt and the chinese wouldnt be able to sell treasuries. So the president is pretty confident here from his wording yesterday there is some guardrails on this it is not going to spill over into a wider confrontation that gives you an interesting insight into his mind set as you go into these we were worrying they were going to dump debt on 100 basis points higher across the whole yield curve. What are they going to do . Rates go up. Right it is a move by the chinese they could dump it into this demand i dont think they japan surpassed them already appreciate it were going to continue this conversation right now joining us to talk about the reaction in the markets, terry spat at cra Investment Management try to read the tea leaves, the market piece, and, by the way, the market gyrations, in board rooms across america, in big corporations and also Small Businesses, theyre looking at theyre trying to read the tea leaves in a dfrn wifferent if they have business in china, what am i doing . The same thing is going on in board rooms in china this is affecting both and i think both leaders are coming to the conclusion that it is best to get this behind us. Youre right, it has got to for there to be progress there has to be give on both sides we have to get past the anniversary in september of the Chinese Government so you need to get past that point so everyone can kind of begin to come together and give a little bit on both sides. Terry, how are you playing this to the extent you are. To the extent that we are as joe pointed out, can have a 300 point move from any small piece of information and that volatility that has come into the market is creating such a state of confusion, between what the stock market is saying, touching new highs and the bond market sending a different message with the inversion of the yield curve. I think there is going to continue to be a lot of volatility not pushing chips on the table were fully invested looking at that risk very, very closely. Youre on a different side though i mean, i actually think things in the u. S. Still look good i think from what ive been reading, youve been more skeptical. More skeptical on not just just broadly on what happens on markets this year. Yeah. I just think that were in a period where people are focused on the risks and not the fundamentals whenever that is the case, you can have a long period where people just are not, you know, are not responding to the good news or responding to the negative news and it could be a decent period of time where we go through a process where everything that is you can get a china deal that will be you think that would be positive news china deal is positive, depends what the deal looks like this is a case where everyone gets excited and comes back and turns out it is some low level meeting that doesnt accomplish anything and everyone gets disappointed again you need to see a resolution of some of the risks. It doesnt matter what the resolution necessarily is. Just needs to get to be finished if you think this will be as much volatility as you plan, why be fully invested. Why not sit with something ready to go on the down days and i think a healthy dose of skepticism always makes a lot of sense. Were in a situation now where the bond market is shouting very loudly that theyre expecting something very bad and i think it is a mistake to ignore that so what i think is an interesting period of time, were seeing people own bon bonds, own stocks for the income on that. With that type of environment, we dont want to be too risk on, but at the same time, you know, the trends are still positive, still a lot of uncertainty were comfortable being invested. Are Bond Investors smarter than Equity Investors . I think the difference in messages is something to Pay Attention to it is pretty theyre pretty different right now. And they have been for a couple of months. Well leave the conversation there. Thank you, guys. Thank you when we return, global flash point, well take you to hong kong where we have new comments from leader carrie lam new plans for weekend protests and we have a live report from london where the political crisis over brexit is escalating look at shares of slack. Well talk more about the companys disappointing Quarterly Report that stock down by almost 13 . Well bring you the first on cnbc interview with the companys ceo. Right now as we head to break, lets look at the biggest premarket winners and losers on the dow. Looks like cisco is leading the way up 1. 5 . Welcome back, everybody. Cnbcs reporters are spanning the globe this morning to bring you the latest on the trade war on the global flashpoints. Were going to go to hong kong where new protests are being planned for the weekend. Straight over to our reporter chris who is standing by thank you, chris reporter a dramatic uturn for carrie lam, the embattled hong kong leit leader, announcig shes withdrawing the extradition bill that sparked three months of protests sending at times more than a Million People to the streets here in hong kong. However, it is too soon to say if this will be enough to nullify protesters the news yesterday buoyed markets here in hong kong. The hang seng up nearly four points investors might be a little too optimistic just hours after lam made the announcement, protesters were back on the streets, saying, hey, we got more demands specifically they went in front of a Police Station and said, youve got our cohorts who are locked up inside of here, other protesters, more than 1,000 since the beginning of this protest movement, we want an amnesty for all of them. Thats not all we want you to step down, carrie lam. So this thing seems to be far from over. There are more scheduled protests coming up ahead in the next few days, next few weekends ra right now this is not enough to satisfy this protest movement. Becky . Chris, thank you very much. Again, chris livesay. Flashpoint in the uk new developments in the political crisis over brexit willem marx joins us with more good morning reporter hi, becky Boris Johnson is zero for four this week when it comes to parliamentary votes. Last night, not only defeated on the idea of blocking a no deal brexit for late october, something that opposition lawmakers wanted to see happen, he also then in response to that called for a fresh election and once again could not get the required number of votes to push that through that leaves him painted slightly into a corner. The Opposition LeaderJeremy Corbyn saying hes not prepared to grant Boris Johnson a fresh election until this legislation that is currently working its way through the parliament behind me to block a no deal brexit in november is finalized and given the queens approval we could see an election date being set, but unlikely to be until at least the back end of october, perhaps even after that, following, of course, that very, very crucial october 31st deadline that still remains in place and has frankly some currency traders nervous when you look at the pound over the last 48 hours, we have seen it strengthen significantly as that threat of no deal has slightly receded. But a lot of people im talking to saying it is not entirely off the table, not in the longterm. One of many things to keep watching willem marx, thank you. Coming up, next, were going to talk about the trade war fallout. An exclusive report on the impact of the tariffs on some small american businesses. Mark mobius will join us to cover the volatility in the markets. He has interesting thoughts about low Interest Rates and equity prices. I think it may be a keep it simple stupid idea, right. Stocks may that helps for us. Squawk box will be right back. When it comes to your customers expectations, theres one thing you can be sure of. Theyre changing by the nanosecond. Thats why cognizant created a unique engineering approach to design and build new digital products. Learn how cognizant softvision designs experiences and engineers outcomes. Cool. Should always be working harder. Thats why, your cash automatically goes into a Money Market Fund when you open a new account. And fidelitys rate is higher than etrades, td ameritrades, even 10 times more than schwabs. Plus only fidelity has zero account fees and zero minimums for retail brokerage and retirement accounts. Just another reminder of the value youll only find at fidelity. Open an account today. Time for the executive edge. And were taking a closer look at the impact of tariffs on smaller retailers. The ones that dont have the same negotiating power as giants like walmart and target and Courtney Reagan joins us now with more. The little guys, courtney. Reporter thats right. Believe it or not, more than 98 of u. S. Retailers employ 50 people or less, which means about 40 of the countrys retail employees work for what is considered a Small Business this year this is united leg wear this company does have a thousand people employed directly, 200 people employed indirectly around the world. Annual revenue of 500 million. It designs, manufactures and licenses leg wear and accessories for brands including puma, champion and sketchiers. It manufactures in other countries, china is the biggest. We see that the tariffs are going to inevitably drive inflationary effects in the u. S. Consumer base as well as price increases at retail. And it is going to end up slowing down capacity needs, retail needs, retail selling and in turn will decrease our ability to build our Employment Base and continue to grow our Employment Base in the u. S reporter gold Metal International is an accessories wholesaler, 50 employees, manufacturing in ten countries china also a significant portion of its sourcing. This is a family business, third generation, my son is actually overseas in Southeast Asia at the moment and he has been here five years. He got married three years ago hes having their theyre expecting their first child in december and the government is trying to put us out of business. Reporter both united leg wear and Gold Medal International testify in washington, d. C. , hoping the government would reconsider the tariff policies. Back over to you. Thank you, Courtney Reagan. Sometimes we forget we think walmart already put everyone out of business, but they havent. We need to take this into account. Thank you for that report. Okay, coming up, more on squawk box this morning. Big story on wall street when we return trimming the fat at Goldman Sachs, a new report out saying that bank the culling its upper ranks. The partnership, well tell you what is behind that move right after the break. And well head to a break, quick look at the s p 500 winners and losers through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From managing inventory. To detecting and preventing threats. To scaling up your production. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. If you close your eyes does it almost feel like nothing changed at all welcome back youre watching squawk box, live from the Nasdaq Market site in times square. Good morning, everybody watching the u. S. Equity futures at this hour they jumped on word that the u. S. And china are expected to hold trade talks next month. Check it out dow futures ind