Worldwide exchange begins right now. Good morning welcome to Worldwide Exchange on cnbc. Im sara eisen im dominic chu in for wilfred frost. Welcome good to be here. He made it through his bike ride he did. The pictures are on instagram. Congratulations. Success it looked really hard. It did. You have to be in shape to get through Something Like that. He trained a lot. Hard core training of new jersey there you go. He made it to monaco. Lets check in on the global markets. U. S. Equity futures starting off after a holiday closed day yesterday and a half day of trading on monday. Dow futures up about 15 points s p futures down and nasdaq futures are under some selling pressure this morning, down 21 tech underperforming even though we got a big rally on monday during that half day of trading. Well talk about that in a moment tenyear treasury note yield, higher higher yields last week. Higher yields on monday. Thats the dominated theme theyre going higher again this morning. Watch this carefully, the speed of the move is something that is catching people off guard. Is it too fast is it whats disrupting the tech rally . 2. 3 2. 35 is what were looking at here weather wa were waiting to see whether we can break that down trend look at the tick up recently. Correct thats in the last five, six days whether or not you can get high enough to break that down trend, medium term will be key. A lot of folks watching. Has all sorts of effects for stocks helpful for the banks which have been praying for the yields. Hurtful for utilities and telecom. So far it looks like its hurtful for big cap tech stocks. At least a chance to cash in profits. Theyre still the biggest winners of the year. Tokes are talking about that mini rotation going on so, a lot of news coming outokumpu oout from asia overnightovernight policymakers will meet next week the central bank could be retreating from kurodas pledge to do whatever is necessary to achieve his inflation targets. Those key words did have effect back in the day. The whatever it take sides s si things kind of like mario draghi. Chinas Central Bank Says the countrys shadow Banking Sector lacks regulation in an annual report just released the pboc says it will make sure the economy has no systemic Financial Risks they say the economy faces big downward pressures as a result its pledging to create a favorable monetary and financial environment. Overall, if you take all of that on balance, asian equities did see a reaction were positive to close here for the general part the nikkei up by a quarter of a percent. The hang seng up bay half percent. The kospi in south korea up a half percent given what happened with that icbm gold will be something to watch oday so far its really shaken off the news, like it does so many times. Every time. Its been that way for the last couple of year sflos. The European Commission has given the green light for the bailout of banca monte dei paschi regulators approving the plan after the bank agreed to ab overall including capping pay for senior employees and transferring bad loans the lender will cut around 600 branches look at european equities early this hour. A bit higher the german dax is up more than 0. 1 double that in france. Italy underperforms on that bailout news down 0. 3 . And spain is higher. Do have the tech shares under pressure following the lead out of the u. S. Other groups are higher. I think automakers in asia helped the trend some commodity producers as well calmer fractional moves for sure lets take it to the more macro picture. Those Broader Markets. Oil is a big focus wti crude down by a percent and a half 46. 4 1 the last trade there. Ice brent crude, 48. 95 as for whats happening with currencies, lets look at the euro you can see at least some moves with the euro. Some Dollar StrengthEuro Weakness 1. 1338 is what it will cost to you buy a euro the yen at 1113. 54 and the pound 1 t. 2905. And gold, 1,222. The u. S. Military officials confirming north korea did fire its first Intercontinental Ballistic Missile. A big escalation in its Nuclear Standoff with the United States. The u. S. Condemning the test firing warning missiles and vowing to hold the regime accountable at the united nations. The u. N. Will hold a Security Council meeting later today. The missile is believed to be two staged with a range to reach alaska the front pages this morning, usa today, north korea missile provokes the u. S. On fourth of july nation tests icbm that could reach alaska the u. S. Military is saying their relationship with south korea from a military defense standpoint is ironclad so kind of the rhetoric ramping up just here last week a lot of that stuff will play into the markets also President Trump goes to g20 this week. He meets with all the nations top leaders. Think he wants to talk trade, but north korea will dominate at this point after this escalation lets get into that a bit on the political side of things, President Trump is leaving for poland this morning for his second foreign trip since taking office he will visit warsaw ahead of the g20 leader summit in hamburg, germany on friday where he will have his first facetoface meeting with russian president Vladimir Putin. In poland President Trump will give a major speech and attend the three seas meeting for talks on developing ties in energy and infrastructure overall a big europe trip, but you get a feeling that trump will be talking a little bit about north korea as well. That will be the first big Foreign Policy challenge that he faces. Now to some Corporate News volvo says every model from 2019 onward also have an electric motor. This will make it the first traditional automaker to stop making vehicles powered solely by an internal Combustion Engine volvo says it will only produce three types of cars, pure electric, plugin hybrids and mild hybrids which combine a small gas engine with a large battery. Uber has suffered a new legal setback in europe. An adviser at the court of justice at the eu says france is entitled to charge local uber managers with running an illegal taxi service the court will make a final ruling later this year uber is playing down the nonbinding opinion say it only applies to Services Using unlicensed drivers known addrs r pop which has since discontinued uber under the microscope for a lot of things. Monogram residential being acquired by graystar growth. That deal valued at 2 billion. Ten cent holdings feeling the heat over the handling of the popular game honor of kings. This after the firm said it is limiting play time for users of the game shares of world play on the move after reports of a potential takeover the uk payment processor receiving rival bid approaches from credit card tech firm vantiv and jpmorgan. Some more stocks to watch two u. S. Activist Investor Funds are looking to derail clariants merger with huntsman co corvex taking a stake in clariant in an effort to fight the deal clariant shares off a bit. Huntsman up 1. 6 Samsung Electronics investing 18 18. 6 billion in soh korea in the hopes of extending its leading memory chips and next generation smartphone displays while promising to create almost a half million jobs nokia and xiaomi signing a patent deal which includes a cross license to each others cellular standard patents. Martin shkrelis Defense Attorneys objecting to the prosecutions request for a gag order during his clients fraud trial. Ben brafman blaming reporters for baiting shkreli to publicly blast prosecutors. When he walked into a room, reporters used to monitor video from the courtroom and started speaking with them criticizing their coverage and commenting on the evidence against him shkreli only stopped when brafman came and asked him to step outside in a lert to ttter to the judge, brafman says he is being targeted not because of his conduct but who he is seems like he cant stop speaking unless his lawyer shows up by his side. You wonder whether the billable hours include some of these supervisory things for him. Hence the request for a gag order. There you go. Turning to the agenda on wall street, theres a pair of economic reports today you have may factory orders out at 10 00 a. M. Eastern time at 2 00 p. M. , we get those big fed minutes. The last months Federal Reserve meeting when the central bank hiked Interest Rates for the second time this year. Those two big item algites will sobi items will have a bearing on trade. Were watching technology and the key leadership position, thats down or up lately watching treasury yields this commentary out of the fomc with their minutes could have an effected on whats going to happen with the theyre kind of in a predicament. Stocks at a record high, the economy is doing okay, but not many signs of inflation, can they keep going raising rates, shrinking the Balance Sheet . Like you said, interestingly enough you have Interest Rates generally on the longer end of things moving higher over the last five, six days. The question is why is it growth i think its europe and the rest of the worlds Central Banks sounding more upbeat its been one global trade no could be. Thats what were watching today. Coming up, the latest on the qatar crisis as arab nations prepare to meet in cairo a live yorechm haex nt. U wating Worldwide Exchange on cnbc. I love you, basement guest bathroom. Your privacy makes you my number 1 place. To go number 2. I love you, but sometimes you stink. New febreze air effects with Odorclear Technology cleans. Away odors like never before. Because the things you love the most can stink. And try febreze small spaces to clean away odors for up. To 30 days. Breathe happy with new febreze. Hey youve gotta see this. Cno. N. Alright, see you down there. Mmm, fine. Okay, what do we got . Okay, watch this. Do the thing we talked about. What do we say . Its going to be great. Watch. Remember what we were just saying . Go irish see that . Yes im gonna just go back to doing what i was doing. Find your awesome with the xfinity x1 voice remote. Welcome back to Worldwide Exchange. If youre just waking up or working your way into work, lets get you up to speed on the market action. The dow jones is pretty much flat no movement yet. The s p is pretty much flat. The notable exception is the nasdaq, off by a third of a percent. Seeing more weakness in the tech related stocks watching that for sure also the oil picture, we are seeing some weakness there a percent and a half, now a percent and a quarter to the down side. Ice brent crude futures off by a percent. 49. 07 the last trade there. Back over to you moodys downgrading qatars Economic Outlook this coming ahead of todays big meeting between arab nations where they plan to discuss the ongoing diplomatic crisis in the persian gulf willem marx is in doha hes been following this story for us good morning sorry, this is not a surprise for moodys, even before this crisis they cut the countrys debt rating back in late may we had similar moves from s p and fitch placed them on credit watch last month the qataris have been pushing back against some of these accusations from the saudiled bloc in particular on terrorism financing. Yesterday we heard from the foreign minister he was talking with the German Foreign minister here, he says that they already took concerns about terrorism finance very seriously. Lets take a listen. Translator it is an important state matter for us. As for the security of the rest of the region, but it should not be raised amidst a blockade a boycott of qatar and while taking illegal measures against the state of qatar, all under the banner of fighting terrorism. When there are measures closed in this context, because they think they will be met with international sympathy because theyre antiterrorism measures. He talks about international sympathy and we heard from u. S. President donald trump, he insinuated in a tweet about qatars financing of terrorism here in do hha, weve seen a hu amount of support for the amir there is a great dole of sol eaf solidarity for the leadership her here well see if theres impact on the Energy Market willem marx, thank you for that report lawmakers in the European Union backed new tax rules the changes will force Multinational Companies that operate in the region to give details on where profits are made companies ranging from google to amazon would be forced to publish profits and tax bills from each eu country where they do business. They would also have to provide information such as employment numbers proving theyre not running shell companies. However the European Parliament will allow authorities to grant exemptions in cases where information would put a company at a disadvantage with competitors. Saba capital is closing its office in the uk this is the Hedge Fund Known for its winning bet against the jpmorgan trader known as the london whale reuters says the 1 1. 8 billion firm will move to new york this is the second u. S. Fund firm to do so this year. The reason for sabas move is unclear but comes at an uncertain time for hedge funds based in brittain as the country begins those brexit talks. Certainly were watching here. Still to come, the president is about to embark on hits second foreign trip since taking office whats on the agenda and whats at stake as he meets with World Leaders . A live report from washington straight ahead. As we head to break, heres todays National Weather forecast from wnbc good morning. Happy wednesday. We are looking at a Stormy Weather picture across the southeast for today. Showers, locally heavy thunderstorms, so factor that into your plans for today. Extra time at the airports, extra time to travel on the roadways this is the big story here the heat and humidity across the southeast. Temperatures in the 90s here for today. Meanwhile, the rainfall from these storms will be impressive. One to three inches of rain. We could see some pockets of flash flooding thats one thing youll want to take into account for today. The northeast is looking good. Upper 70s to mid 80s some triple digit heat across the stwe more Worldwide Exchange when we come back welcome back this is becoming a familiar pattern, where you see strength in dow futures, s p is flat, but nasdaq is under pressure the techheavy index showing futures down about 22 points this was the story of the half trading day on monday as well. Tech underperforming groups like energy shined, having Energy Stocks having their best day in a month on the back of a 1. 5 gain in crude oil. Thats giving a little back this morning. As for the tenyear treasury note yield, higher yields continue to dominate the trading action thats the story over the past week and a half. 2. 35 is the yield. The bigger market mover this afternoon will be the fed minutes released at 2 00 p. M the notes from the last meeting about the discussion on whether theyre going to continue to ta tighten policy currency market, strong dollar against the japanese yen a little bit against the euro. More pronounced against the yen. The pound is flat at 1. 2918. The gold prices are a little bit higher some risk aversion buying of yen initially in gold on the back of those north korea headlines. Thats reversed a bit against the yen. So business travelers listen up making headlines, the middle east Largest Airline says the ban on laptops and large Electronic Devices on flights to the u. S. Has been lifted emirates which is based in dubai said in a statement new security measures are in place. Turkish airlines tweeting its been exempted from the ban Saudi Airlines has said it hopes to be off the ban list soon. The u. S. Imposed the laptop ban in march on flights from ten airports in the middle east. President trump is set to embark on his second trip to europe since taking office today. The world will be watching as he meets with the top leaders tracie potts joins us from washington with more on whats on the agenda. Good morning well, that agenda starts in poland a friendly nation for the United States the president heads there first, hoping to build some good will going into what so be cob ten shus talk contentious talks. Today poland is preparing for the arrival of President Trump. He will join a conference of tr Central European and baltic nations and give a speech in warsaw to reassure nato allies that america wont abandon them. That could come up at a much anticipated meeting with russias president at the g20 summit on friday their first. The white house says there is no official agenda. Okay so lets tell you a bit more about that at the g20 the big question is whether or not President Trump is going to bring up this issue of russias involvement in the u. S. Elections some say interference in the election it is sort of the elephant in the room but its also a tense topic when they have things like syria and ukraine to discuss its the first time the two will have met facetoface. With all these investigations going on in washington, over russia and possibl