Worldwide Exchange 6/11/25
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I'm Frank Holland, and you're listening to CNBC's Worldwide Exchange. Our show is live weekdays at 5 a.m. Eastern. Listen in. Moving forward, after two days of trade talks, the U.S. and China leave London with a handshake agreement. And two other major U.S. trading partners, they look to close tariff deals of their own, but futures their lower, ahead of today's big inflation report. It's Wednesday, June the 11th, 2025, and this is Worldwide Exchange on CNBC and streaming on CNBC+.

Good morning. Thanks so much for being here with us. I am Frank Collin. We're going to begin with this morning's top story. The U.S. and China in London continuing the trade negotiations that began in Switzerland. Last night, the two sides reaching a New Deal framework after two days of talks focused on tech and rare earth minerals. U.S. Commerce Secretary Howard Lutnick says the framework now heads to President Trump and President Xi for their approval.

We do absolutely expect that the topic of rare earth minerals and magnets with respect to the United States of America will be resolved in this framework implementation. That is a fundamental part of that. Also, there were a number of measures the United States of America put on when those rare earths were not coming.

You should expect those to come off sort of as President Trump said in a balanced way. When they approve the licenses, then you should expect that our export implementation will come down as well.

And on the back of that handshake agreement between the U.S. and China, taking a look at futures, seeing here in the red across the board, but just very slight declines. The Dow looks like it would open up about 40 points lower. We're also looking at ETFs that track Chinese equities, looking for any movement there. You can see a lot of green on this board right now. The MCHI up about a third of 1 percent. The K-Web is Chinese Internet stocks.

up nearly 1%. Similar story for the FXI. That's large cap Chinese equities right there. So again, a lot of green when it comes to Chinese equities right now. We also want to look at chips. Chips getting a big boost on the hopes of that U.S.-China trade deal and the handshake agreement. Taking a look right now, you can see a bit of a pullback.

Nvidia was about 1% higher yesterday, down very fractionally right now. Intel, best performing in the S&P yesterday, pulling back about a third of 1% down here. AMD and Taiwan Semi in the green. Taiwan Semi up more than 1%. Also, we'll look at the dollar right now. Over the last week, the dollar's actually been positive. Taking a look, you can see up just a quarter of 1%, but kind of breaking a trend that we've seen in recent weeks. Right now, the dollar pulling back very fractionally right now in the pre-market. But again, over the last week, positive again.

As we've seen U.S.-China trade talks continue. Also looking at bond yields this morning. Not a lot of movement yesterday ahead of CPI. This morning, again, ahead of CPI. Pretty much at the same level we were at yesterday. The benchmark at 4.48. Very close to that 4.5 level. That seems to be very meaningful for the market. The two-year, though, back above 4%. That's very meaningful for the market. And down here, the long bond at 4.95%.

All right, that is your setup now. We want to turn over to the international trade. We got some reaction from London. Our Juliana Tattlebaum is standing by with much more. Juliana, good morning.

frank good morning well we finally have some news out of after those marathon talks you just ran us through the headlines and from a market perspective we saw asian equities move higher overnight it seems to be that investors are taking comfort in the fact that we didn't see an escalation here between the u.s and china but rather the two sides remain in contact and things seem to be conciliatory we saw negotiators from the u.s and china leave lancaster house

Early this morning, after two days of talks, the two countries agreeing on a framework, as you said, which Commerce Secretary Howard Lutnick says will, quote, put meat on the bones of the deal reached in Geneva. So it's really building on the foundation, the consensus that was reached in Geneva. Lutnick said it should resolve concerns over Chinese rare earth export restrictions and see the U.S. roll back speed.

some of those curbs on tech-related exports. But both sides still need to brief their leaders with approvals from President Trump and China's President Xi needed before the plan is implemented. Now, in terms of market reaction in Europe, I mentioned the gains we saw in Asia overnight. Europe trade has been a little bit more muted. Investors

Looking ahead to that all-important CPI print that you mentioned, Frank, that's due out later today. And we've also had some key earnings this morning. Inditex, the Zara owner, delivering a downbeat set of numbers, and that stock dragging down the broader market around retail trade this morning. You know, Julianne, another question for you. We're talking a lot about rare earths, and even the Commerce Secretary mentioned magnets. Magnets are crucial when it comes to the manufacturing of auto, so very big for the U.S. auto sector. What impact are we seeing on the European auto sector?

Well, this is the rare earths situation here. And China being slow to approve those licenses to export rare earths has impacted sectors around the world. It's not just the U.S. And what this whole episode has shown us is that China has huge leverage here, mining about 70 percent of rare earth metals. So this is something that

will no doubt play into the minds of European leaders as they engage with the U.S. in trade talks here, knowing full well that they need to keep China on side to a large degree because European automakers, European military equipment makers are just as reliant on China as the U.S. is when it comes to these critical minerals. All right, Juliana Tattlebaum, live in London. Juliana, always a pleasure to see you.

Turn our attention now back to the U.S. markets. We're seeing kind of muted reaction in the markets here in the U.S. to the framework reach between the U.S. and China in lending. Joining me now is Adele Zaman, partner at the Wall Street Alliance Group. Good morning. Good to see you. Good to see you. I think we've got to start with the future. Surprise is kind of muted. I mean, Chinese equities we can see are higher right now. We're looking at those at the ETFs. Are you surprised not to see to see U.S. stocks down a little bit kind of muted?

I think a lot of it is factored in. I think from this point onward, this is actually a very positive development because as we start to get more certainty about the tariff negotiations, that puts the Fed in a position to start cutting rates again, which we think will actually be good for the market as well as the economy.

All right. So you lead me to my next question. I got a lot of questions about the Fed, but I'm gonna get to those in a second. Over the last week, the best performing sector has actually been energy. I would imagine some of that is on the idea that manufacturing is going to ramp up here in the U.S. and in China when some of this tariff uncertainty goes away. Chips have outperformed even energy up 4 percent. If you're looking to put some money to work, where would it be? Is there do you see the opportunities in one of those areas or is there another area that you think is kind of like a second tier beneficiary as these talks continue?

We do like energy, especially because as Trump scales back some of Biden's clean energy policies, I think some of oil-related companies, they will benefit. But what we are advising clients is that this is going to be a very volatile environment in the market. So keep your exposure broad. Have exposure to utilities, consumer staples, financials, energy. Don't be concentrated at any sectors.

And gold, Frank, has been a tremendous play in our portfolios this year. It's up more than 25%. So our clients have fared really well because of that. You know, it's really interesting that you're talking about going into defensive sectors like utilities and staples. But I want to look ahead to today's CPI. Expected to see an uptick for core and for headline. I was talking to the chief investment strategist of a big bank. They said this report...

You know, it doesn't have that much weight to it. But if you see a trend, maybe two months, three months of inflation ticking back up, that would change their view of the market. Right now, they like consumer discretionary, actually, especially on the back of those U.S.-China trade talks. If this is the start of a trend right now, one month supposed to tick up. But if it's the start of a trend, how does it change your view of the market or shape it?

Well, if inflation continues to go higher, that means that the Fed is going to pause for a while and that may not be too good for the market. But we do feel that over the course of the next few months, we will start to see more certainty as far as it comes to tariffs. And we do think that AI-driven productivity increase will actually be a deflationary factor on the market. So eventually, we do think that the Fed comes back into play starting September and we likely get two rate cuts this year.

If you're this defensive because you're saying you need to put some money in utilities and also staples, what do you think about bonds, whether they're corporates or treasuries? I think bonds play a role in a client's portfolio. You definitely want to have bonds. We also want to have international in the portfolio as well. Still? Yes, definitely, because the international markets have

tremendously underperform the U.S. markets in the financial crisis. That's a little big, though, Adele. So give us one market, whether it's Germany, the DAX. I mean, give us one that you're seeing a lot of opportunity. So we do like the exposure to the Chinese market. We do think some of the emerging markets like India will do well. We do want to have exposure in these type of areas because we think that, especially if the dollar becomes potentially weaker from a relative valuation point of view, these markets will

Appreciate it. Adel Zahman, we've got to leave the conversation there. Great to see you as always. Thank you very much.

We've got a lot more to come here on Worldwide Exchange, including Elon Musk and his mea culpa in his feud with President Trump. Plus, the U.S. and Mexico reportedly closing in on a deal over the 50 percent steel and aluminum tariffs. We have reaction from one of the largest aluminum manufacturers in the world. But first, the CNBC Disruptor 50 list. It's out. And up next, we're talking personal fintech with number 49. The CEO of Asusu is next. A very busy hour still ahead when Worldwide Exchange returns. Stay with us.

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And welcome back to Worldwide Exchange, the 2025 CNBC Disruptor 50 list. It's officially out, highlighting the most innovative and valuable startups from AI and healthcare to personal finance and agriculture. This year, the list sees 19 companies making their CNBC Disruptor debut, and we have the CEO of one of them right here in studio. Wamimo Abbey is the CEO of Asusu, a fintech based in New York focused on personal finance and

and credit growth also with us we're honored to have julia borson the creator of the disruptor 50 list julia good morning good morning frank thanks so much for having me and momimo thank you so much for being here congrats on being named the disruptor 50 list for the first time why don't you walk us through how does your technology work what is your different way of scoring credit

You know, thanks a lot for having me. The differentiated way of scoring credit for us is really capturing rental payments data and making sure it reflects on people's credit scores. There are over 110 million Americans that rent. They send on an average $1.4 trillion to their landlords every year. When we got in this business, less than 10% of folks

data was reported into the credit bureau. So now we've democratized access to it and now work with the largest owners and operators of real estate. So you work with these large owners and operators of real estate, but now consumers or renters can individually come work with you. How does that work and how big do you think the market is for your services? The market is huge. Like I said,

Renters send $1.4 trillion to their landlords. We work with 75% of the largest landlords in America. They combine over $100 billion in rent volume. We wanted to democratize access because you have a long tail of people that don't live in commercial managed housing. So we created a direct-to-consumer approach where folks can pay on an average $2.50 a month to make sure this data is properly reported.

You guys have become a unicorn. Your valuation is over a billion dollars. Talk to me about raising money right now in this environment and also your thoughts about going public. Do you feel like there's demand in the public markets for a company like yours?

There's a lot of demand in the public market for companies like ours. When you look, when I go down memory lane, for example, I grew up in the slums of Lagos, Nigeria. Lost my father at the age of two. I was raised by my mother and two very spirited sisters. And one thing my mother fundamentally believed in was just the power of education. And that's what led me to this wonderful country. I came from 80 degree weather in Lagos to negative 22 degrees in Minnesota, which was a character building experience. But when we came here,

We didn't have a credit score. We walked into one of the biggest financial institutions to borrow money. We were turned away and had to go borrow money from a predatory lender at over 400% interest rate. My mother sold my dad's wedding ring, borrowed money from church members, and that's how we got started. You know, when we raised $130 million four years ago and was valued at a billion dollars, I called my mother and I said, "Hey, we just raised this round of finance." And you know what my mother said? Guess what she said? - What did she say? - She said,

How's the wedding planning coming along? Well, it's because of folks like Eunice, my mother, who built a company like Isuzu that can democratize access to folks that need a fighting chance in this country. The average debt in America is over $106,000. There are 50 million people that don't have a credit score. We're leaving $5.3 trillion on the table. We've got to do better.

- It's interesting you've done these partnerships with these big real estate companies that are renting, but also with Fannie Mae and Freddie Mac. How much do you see those types of partnerships being essential to expanding your reach? What's going on with those partnerships? - It's quintessential. What we are trying to do at ASUS is take people from financial identity, stability, and wealth building. We wanna give people that proverbial American dream. So partnerships like that actually help us actualize our goals. I'll give you a very, very important start.

We've established credit score for over a quarter million people today. And then we've unlocked over $50 billion in credit activities. $30 billion of which is credit activities. So when you think about Fannie Mae and Freddie Mac, their whole purpose is to make sure everyday Americans get a home. And we are making that happen. It's not rhetoric. The record is there. And so what's the next step for the company? You have these existing partnerships. What's going to enable you to grow?

Well, what we're focused on right now is thinking about strategic partnerships. We just partnered with a large institution to democratize our access, really thinking about the one-to-many channel. And how much is AI essential for your competitive mode? AI is quintessential at this point. So when we think about things like leveraging AI for our data ontology, it's been very important.

very, very important for data aggregation, especially from a privacy standpoint. We capture a lot of predictive data. We also think about customer support. We've been very, very efficient in terms of integrating AI to better serve millions of customers on our platform. And the best is still yet to come as we think about incorporating it.

Great. Great conversation. Julia, thank you for bringing this to us. Wemo, congratulations to you and also your co-founder, Samir. Again, congrats for being on the disruptor list. And be sure to check out the full list on CNBC.com and tune in to Worldwide Exchange tomorrow when we speak with the CEO of Elevate Bio, number 43 on that list. All right, still on deck here at Worldwide Exchange. We're less than a month away from revealing the CNBC rankings for the top states for business in 2025. And our Scott Cohn is next with a look at what's at stake.

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Welcome back to Worldwide Exchange. We're less than a month away from revealing the CNBC rankings for the top states for business in 2025. Our exclusive study is now in its 19th year, and this year, tariffs, budget cuts, and recession fears have transformed the competition. Our Scott Cohn has more.

Economic anxiety may be high. This is a transition period. But so is opportunity. This has been one of the busiest periods that we've had in near 30-year careers, which is exciting. So in 2025, like never before, states are touting their economic strengths. Virginia's economy is strong.

stronger than it has been in a very long time. We've paid down more than $12 billion in debt, grown a rainy day fund of more than $2 billion. For the past two years, Florida's economy has ranked number one

in these United States. This year, for the first time, economy is our heaviest weighted category. Which states are growing, creating jobs, have the strongest finances, but also which state economies are most exposed in a trade war and most vulnerable to federal budget cuts. Next, infrastructure, roads and bridges, computing power and electric power, and shovel-ready sites. Workforce, where the best workers are and where they're moving to.

We look at the cost of doing business, business friendliness, the quality of life, technology and innovation as federal research money dries up. We measure education, access to capital, and the cost of living.

You can read more about our study and see all our sources at topstates.cnbc.com, where you can also follow our journey over the coming weeks as we talk about what it takes to be competitive in this new era. As always, we will reveal this year's top states from the top state on July 10th, and you'll be able to see where your state stacks up. That's topstates.cnbc.com. Frank?

All right, coming up here on Worldwide Exchange, from medical devices to electrical equipment, the incoming CEO of Fordham, he joins me next for his vision of the future and whether AI is going to play a critical role. And if you haven't already, you should follow our podcast. If you miss Worldwide Exchange, check us out on Apple, Spotify, or other apps. We'll be right back after this. We are going to be imposing...

a 25% increase. We're going to bring it from 25% to 50% the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States. Nobody's going to get around that.

That was President Trump just over a week ago, really promoting his plan to double steal on aluminum tariffs as part of his ongoing trade wars. This morning, one U.S. ally reportedly looking to cut a deal after last night's U.S.-China trade agreement. Welcome back to World Wide Exchange. I'm Frank Holland. Coming up in this half an hour, we have much more on that U.S.-China trade agreement. We're going to talk to the leadership of Norsk Hydro. That's one of the top aluminum producers in the world.

But first, we begin with the U.S. and China reaching that new trade deal framework last night after two days of talks focused on tech and rare earth minerals. Last night, the Commerce Secretary, he provided more color on the deal.

We do absolutely expect that the topic of rare earth minerals and magnets with respect to the United States of America will be resolved in this framework implementation. That is a fundamental part of that. Also, there were a number of measures the United States of America put on when those rare earths were not coming. You should expect those to come off.

sort of as President Trump said, in a balanced way. When they approve the licenses, then you should expect that our export implementation will come down as well.

And some more new developments in the last half an hour. Chinese vice premier commenting on the agreement, saying the U.S. and China, they should push for stable and long-term trade and economic ties. Also saying that China not looking to fight, but willing to fight. So a very interesting way to end these negotiations and discussions.

All right, with that, we're going to move on to U.S. stock futures. Taking a look, you can see futures, they're in the red across the board right now. Just fractional declines. Looks like the Dow would open about 45 points lower or so. We also look at the Russell futures. Small caps with a three-day win streak coming into today. Right now, you're seeing small cap futures up fractionally right now, just under a quarter of 1%. We also look at the chip sector. Chips moved higher yesterday on hopes of less export controls. You just heard the Commerce Secretary talking a bit about that.

NVIDIA was up just about 1% yesterday, pulling back very fractionally right now. Intel was the best performer on the S&P yesterday, pulling back about a third of 1%. Down here, you see Taiwan Semi moving up more than 1%. AMD essentially flat, just fractionally higher right now. Also looking at transports and small caps. As I mentioned, small caps on a three-day win streak, largely on U.S.-China deal optimism. We're taking a look at the IWM small cap ETF and the IYT transport ETF, both of them

outperforming the S&P over the last week and see both are up over 3%. So some upside moves for these two very economically sensitive areas. Also taking a look at bond yields this morning, pretty much steady in the levels that we've seen throughout the week ahead of CPI. Again, where inflation is forecasted to tick up just a bit right now. The benchmark at 4.49, very close to four and a half. That seems to be a key sentiment level. Also important note, the two year above 4% down here, the long bond at 4.95%.

OK, that is your setup now. Time for a check on some of this morning's top stories. Our Silvana now is here with those. Silvana, good morning. Hey, Frank. Good morning to you. Well, listen to this. Elon Musk says he regrets some of the things he said about President Trump last week in a post on X early this morning. Musk says they went too far. And now Musk and President Trump, well, they traded jabs last Thursday on X and Truth Social after Musk called the president's

President's tax bill a disgusting abomination. Musk's post this morning comes days after President Trump said his relationship with the Tesla CEO and former Doge chief was over. And a U.S. appeals court ruling President Trump's sweeping tariffs

can remain in effect. While it reviews a lower court decision blocking them on the grounds he exceeded his authority. Now, the decision means the administration can keep enforcing the president's so-called Liberation Day tariffs on imports from most U.S. trading partners for now, as well as separate tariffs on China, Canada and Mexico. Now, the appeals court has scheduled arguments for July 31st, Frank. All right, Silvana, thank you very much. We'll see you a bit later.

All right, right now we're watching shares of Fortiv. The stock, it dipped yesterday after the investor day for the industrial and healthcare tech conglomerate. Incoming CEO, Lumide Soroye, emphasizing Fortiv's focus on high quality brands and a track record of strong financial performance. Soroye was going to take the helm of the company later this month following the spinoff of the Ralliant Corporation. Joining me now, Lumide Soroye. He's joining us to talk much more about investor day and the future of the company. Good morning. Thank you for joining us here on Worldwide Exchange.

Good morning, Frank. Great to be with you. All right. So we're coming off your investor day. The stock traded a little bit lower on your financial targets and also your vision for the company. But why don't you spell it out for the audience how you see your company going forward? You're in the essential tech business, things in the health care space and also electronics that tradesmen and also health care professionals obviously use.

Thank you, Frank. You know, we begin an exciting new chapter at Fortiv. We've been a public company for about nine years, but this is a new Fortiv today. And the case we laid out yesterday is really compelling for our long-term shareholders. We're quite confident that our financial framework will outperform the S&P 500 index over the next three to five years. And it's really simple for us. First, we're a very focused company. We keep the world safe and productive. In

in your classrooms, in your parks, in your neighborhoods, in anything you do in a restaurant or a grocery store, in your office buildings, in the places you go to get healthcare. Essential technologies are in there keeping people safe and productive.

And that's exciting for our teams. We've got a great plan with our 40 business system to drive faster growth. And we've got a great plan to be a durable company based on the fundamentals we wired into the company. So we're quite excited about the path ahead for us. All right.

Another part of your investor day is that you're spinning off part of the company into a new publicly traded company rallying. The idea here is that you're keeping in the remain co in this case, which is fortive. Some of the more stable revenues. One of the things that you were really talking about is that 50 percent of your revenue is recurring and kind of subscription based. And you also talked about your new AI platform. So I want to ask, as we look at the new fortive, how is AI and your platform, how's it going to disrupt your competition?

Absolutely. So, I mean, first of all, the Fortiv we've had so far had two different companies within it. One that's really stable, 50% recurring revenues, and one that is a terrific business that rides the upswing in big technologies like electric vehicles and semiconductors, but also rides the downswing. So what we did was just separate those two different waveforms. Fortiv going forward, much more durable, rallying, a great company that outperforms TrueCycle.

AI is a huge piece of what we've done. We started the journey seven years ago before Gen AI became fashionable, incubating our AI capabilities in a center of excellence that we had set up. What we've now done is we've infused that into the mainstream of everything we do at Fortiv.

And it's transformational for the products we offer to customers because we have 25 billion square feet of space that's managed on our platform. We have 30,000 units of low-temperature sterilization in hospitals around the world, and we have millions of lives touched by our professional instrumentation. So we're bringing AI on top of the data that flows through all of those connection points in our world.

And we're using that to drive insights for our customers in a way that is difficult for competitors to do because they don't have the footprint and the proprietary data sets that we have. So we're quite excited about that. I would imagine you are excited. So I want to also get your reaction to some news that we saw last night going into this morning, the U.S. and China reaching a handshake agreement when it comes to trade. How have tariffs impacted your company? How does the potential of a long term deal impact your company?

Well, China has been a great market for us as an end market, but also in terms of our supply chain. And what we've done over the last five years since the tariff regimes began is we've been able to really build resiliency into our global supply chain. So we've created ways to minimize our exposure to tariffs in general. I think with this new framework, we're very optimistic.

that things will get resolved quickly. But from our point of view, we try to control what we control. And our teams do a fantastic job of finding a path to be successful. I totally get you want to control what you can control, but can you give us a sense of what percentage of goods that you sell here in the U.S., you make here in the U.S., and your exposure not only to the U.S.-China tariffs that seem to be on the way to being resolved potentially, at least to some degree, but also the quote-unquote retaliatory tariffs that have been upheld, at least for now?

Yeah, so the first on Liberation Day, when the first set of tariffs were announced, we talked about $200 million impact from those tariffs, most of that between the US and China, components we buy from China, products that we ship into China. After the first sort of de-escalation, that number went down to 100 million.

in terms of the impact on our P&L. And again, we've been able to offset most of that with strategic pricing and supply chain shifts. And with this new framework that's set up, we're quite optimistic that that reduces the impact even further and helps us kind of measure whatever is left effectively. All right, Illuminati Charoyer, congratulations, incoming CEO of Ford. A lot of analysts know it's very positive about the future of this company post-spin. Thank you again. You have a great day.

Thanks, Frank. Good to be with you. All right. Coming up here on Worldwide Exchange, budget bill backlash, details on the key provision in the GOP spending and tax plan that has Wall Street and Main Street pushing back. Stay with us. Welcome back to Worldwide Exchange. Wall Street and Main Street are pushing lawmakers to rethink a proposed tax in President Trump's budget that they worry could have a significant negative impact on foreign investment here in the U.S. Our Emily Wilkins joins us now with much more on what's known as Section 899.

Yeah, Frank, well, it's called 899, but it's also being called the revenge tax. It would be an additional tax on foreign capital, could be as high as an additional 20%. And it's basically meant to retaliate against foreign investors and companies whose countries have imposed taxes that the U.S. finds unfair or discriminatory. I think some of those digital services taxes that have been imposed are considered in the

EU. The Global Business Alliance, whose dozens of members include BP, Novo Nordisk and TSMC, they are pushing to remove this provision from the Trump mega bill. And they released an analysis yesterday saying that the taxes could wind up eliminating as many as 700,000 jobs and eventually cost the US $100 billion in GDP annually.

Jonathan Sanford, the group's president and CEO, said the tax provision is a blueprint for decline. He said that smaller paychecks, fewer jobs, shuttered operations, and lost innovation and weakened economic competitiveness could all resort if Congress does wind up passing this with the Trump mega bill. But Treasury officials and many lawmakers have been pushing back here. They're saying that the ultimate goal

is to keep other countries from imposing these taxes that could hurt U.S. businesses. Congressman Ron Estes told me that it's already working. Countries are reaching out to us with recognition and in some cases saying they really didn't think it was the right approach, but they were kind of coerced to go along. And I know the Treasury is also concerned about it and has had contact and discussions with other countries as well.

It's now up to the Senate as to what happens with the provision. Several senators have said they are open to taking a look at the revenge tax and making potential changes, although others say they don't see it going away. We expect to get more details on exactly what the Senate's plan is either a little later this week or very early next week. Frank.

Do we have a sense of if there's factions within the Senate or just Republican Party in general that's for this and against this? I mean, we talk about Wall Street, Main Street being against it. But what about the political side of all this?

I think it's very interesting with this provision because it's one that hasn't divided Republicans the way that you've seen other things like the salt tax or clean energy tax credits. And some of them were even initially, I think, aware of this provision when it wound up passing the House. It was a bit of a surprise for folks on Wall Street and some folks on the Hill as well. I mean, they understand where the Treasury is coming from here and saying, hey, we want to have some mechanism to push back.

on countries that might be considering a tax that could harm U.S. businesses. But a lot of them also recognize that this provision, it's expected to actually bring in $116 billion over the next decade. That is revenue that lawmakers really need to have in this bill to help offset some of the other tax cuts. And so it could be a really difficult provision to tinker with too much because at that point, then you could start having an issue with your fiscal hawks.

Yeah, $115 billion, certainly a lot of money, especially for a budget that's forecasted to increase the deficit by $2.4 trillion over that same time period. Emily Wilkins, great reporting as always, and always great to see you. Thank you.

All right, we're going to turn now to a market alert. Quantum stocks, take a look. They're moving higher right now. Jensen Wong speaking at Viva Tech in Paris. He says we're at an inflection point in quantum computing. Taking a look at some of those stocks right now. You're seeing QUBT, Quantum Computing Inc., those shares up over 9.5%. Rigetti up over 4.5%. D-Wave up about 2.25% right now. Again, Jensen Wong speaking at Viva Tech in Paris right now, making some comments that are obviously being taken as very bullish comments.

when it comes to the quantum computing area. Again, QUBT up about 9.5%. All right, coming up here on Worldwide Exchange, we're going to talk to the leadership of one of the world's biggest aluminum producers, Norsk Hydro, on the Trump administration's recent metal tariff hike and what it means for his company doing business here in the U.S. We'll be right back.

Welcome back to Worldwide Exchange, turning to the global trade war on top of last night's U.S.-China framework agreement. There's some new reports this morning. The EU is looking past its July 9th deadline to make a deal with the U.S., saying that date is a, quote, best-case scenario and a real deal will likely need more time.

This is the U.S. and Mexico reportedly closing in on a deal that will remove President Trump's 50 percent tariffs on steel and aluminum up to a certain volume. According to Reuters and others, the president is not directly involved in the talks, adding that Commerce Secretary Lutnick is taking the lead. No word on any movement when it comes to Canada.

Joining me now in a CNBC exclusive with some unique insight into this and much more is Tron Olof, executive vice president and CFO of Norway-based Hydro. It's a global leader in aluminum manufacturing. Good morning. Thanks for being here with us. Good morning, Ian. Thanks for having me. All right. Why don't we start off with this latest news about the U.S. and Mexico possibly reaching a deal when it comes to the steel and aluminum tariffs between us and Mexico? What would that mean for your business, specifically for supplying the U.S. market with products from Mexico?

Well, for us, I mean, we have a big operations in the US and we are we have sites in 17 different states in the US and more than 6000 employees in the manufacturing part of the aluminium value chain. So most of what we do for the US market is produced within the US for US customers.

I think when it comes to the tariffs and the trade in general, it's mostly all the uncertainty and the changes that is the main concern for us, especially when it comes to the demand side and our customers.

So the trade group for steel and aluminum producers has come out and says the U.S. is a net importer. We consume more than we actually produce here. So you're saying most of what you sell here in the U.S., you produce here in the U.S., but obviously you want your company to grow. How sustainable is that long term and how do tariffs impact your ability to invest, CapEx investments on production, and also just to grow your sales?

No, so the 2-3-2 tariffs, they have a major impact on the aluminum market in the U.S. So now with the 50% duty announced a few days back, all of that has now been fully priced into the aluminum price into the market. So we see a massive increase in aluminum prices for our U.S. operations.

But the metal price is a pass-through cost going through to our customers. So our company is quite well protected from all the changes. But we are really concerned related to our customers and the demand longer term when it comes to the cost for aluminum into the U.S. market. All right. We're just showing some of your customers, a lot of European automakers. Do you also sell into the China market? And what do you see in there? We've heard a lot of talk about, you know,

manufacturing facilities basically shutting down because of the tariffs. Give us some insight. Do you have customers there and what's demand like there? Give us just kind of a window into what's going on there.

Yes, we have customers globally. So we have some small operations in China. We have big operations in Europe and the US. And generally, we see uncertainty in the automotive industry at all three continents. Even in China? Even in China. So the trade war is definitely impacting the automotive industry, which is an important customer segment for our company.

So is demand softening? Because, I mean, we just had our one of our colleagues do a story about the EV market in China right now saying there might be a crisis. So is demand softening when it comes to China automobiles, U.S. automobiles and European automobiles? And if so, what's the soft? Is it uncertainty or is it simply just less demand consumers? I mean, give us a sense.

So for the automotive industry, we have seen slowing demand from the automotive industry going into this year compared to last year. So there seems to be some slowing demand, but it's not falling off a cliff. It's more like a softening demand from the automotive industry. But I think for the whole automotive industry, it's all the changes when it comes to tariffs.

that means a lot of reshuffling of the production capacity globally to optimize around the tariffs that is creating uncertainty and also a lot of changes to the global supply chains. All right, bring it home for us. Where do you see prices going from here? Are prices going to continue to go up if these tariffs are left in place? And then how does that work for your business? We saw that you did a temporary hiring freeze, but that was mostly white-collar workers. It wasn't the people that actually make the products that you sell. Mm-hmm.

So for our market, we have been hoping for a recovery in the aluminium market this year, especially going into second half with lower interest rates. And now with the uncertainty we see in the markets, we are probably postponing that recovery in the markets.

So we are concerned about demand in second half, but we are still producing for our customers. And pricing-wise, it's mostly the customer and the end consumer that is carrying the increased cost of aluminum and not so much Hydra as a company. So you kind of pass it along. Yes, it's a positive cost. So we're probably going to see it. I mean, whether it's beer cans, automobiles,

is going to probably get passed along to us, the consumer. Yes, I think that is very likely. And that is a concern when it comes to the competitiveness of aluminum for the consumers and also for the long-term demand for aluminum in the U.S.

All right. We're looking right now at the price of aluminum since the tariffs went into effect up about 2%. We're going to continue to watch it. Tron, thank you so much for joining us. Really appreciate your time and your insight. Thank you. Tron Oliff, thank you very much. All right. Coming up here on Worldwide Exchange, the financial giant our next guest calls her top investment idea. That stock up 7% so far this year. We're going to reveal our mystery chart coming up right after this. Stay with us.

And welcome back to World Wide Exchange as we close on the 6 a.m. hour. Let's check on a few big stories that we're following this morning. California Governor Gavin Newsom is asking a federal judge to quickly block President Trump's deployment of National Guard members and Marines to Los Angeles to stop protests against immigration raids. The judge is going to hold a hearing on that matter tomorrow.

Bloomberg's reporting Treasury Secretary Scott Besson has emerged as a possible pick for President Trump's choice for the next Fed chairman. The White House telling Reuters the report is false. The president on Friday said he would name Jay Powell's successor, quote unquote, very soon. General Motors announcing plans to invest $4 billion in several of its U.S. plants. The investments include shifting production of the Chevy Blazer and Equinox, which are currently built in Mexico. Shares of GM right now, they're up just about three quarters of 1%.

CNBC learning that Alphabet's Google is offering buyouts to employees across the company as part of its ongoing efforts to reduce headcount. The offer is impacting several teams, including search, marketing, research and communications. And the Financial Times is reporting that Peter Tillback Crypto Exchange Bullish recently filed for an IPO. The company had tried to go through a public SPAC deal in 2021, but that deal fell through the following year.

and Zara owner Inditex missing Q1 sales expectations. The company also flagging a slower start to the summer season than last year due to broader economic uncertainty around tariffs. Shares of Inditex, they're down just about 3.5% right now.

And we're checking futures on the back of that U.S.-China trade talk agreement we saw earlier in the red across the board. Right now, still in that same situation. I actually believe we're at our lows of the morning right now. The Dow looks like it would open about 70 points lower. For much more, let's bring in Victoria Fernandez, chief market strategist at Crossmark Global Investments. Victoria, good morning. Good to see you.

Morning, Frank. What do you make of the futures being lower? I mean, we got the handshake that I think a lot of people were hoping were going to come out of these London talks. The Commerce Secretary certainly seemed to be very optimistic about a deal. Why do you think investors aren't showing that same optimism?

I think because investors have already priced this in to the market. We look at what we've seen over the last few weeks. I mean, we already made, what, 18%, 19% back from the lows that we were at after the Liberation Day moment. And so I think the market has been anticipating this moment coming. They've been anticipating it, especially after the Geneva talks and having Scott Besson involved in this. I think there was a lot of optimism.

optimism. So maybe this is a little bit of a sell the news now that it looks like there is a framework going into place. But also, Frank, there is nothing set in stone at this point in time. And there's a lot of catalysts coming this summer. We can't just, you know, throw on the Speedo and go to the beach. We've got a G7 summit coming. We've got central bank meetings, the end of the 90 day pause on tariffs, second quarter earnings. Right. So a lot of things that could throw a monkey wrench into the system here. And I think investors are being cautious.

Victoria, just for the audience's edification, I was never planning to put the Speedo on. I was always going to wear just regular trunks.

That works. With that in mind, and no relation to what you just said, your word of the day today is assiduous. Why? Why is your word assiduous? Yeah, I think that's the way that investors need to approach this market right now, the way they need to approach investing in their portfolio. You need to take some care in this market. You need to pay attention to a lot of the details and the underlying currents that we're seeing. Obviously, we like to say, great, the technicals are looking better. They're being a little bit more supportive. But

But we still do have those catalysts that I mentioned. We still are seeing some of the hard data start to pull back a little bit. Manufacturing, housing continues to be poor. We're seeing some weakness in the labor market, even with a decent nonfarm payrolls report last week. So I think we need to be a little bit careful as we approach our investing in this market and think a little bit longer term, kind of that perseverance through the choppiness we anticipate.

So with that in mind, we have CPI coming up later today. It's expected to tick up just a bit. Is this one of the underlying currents that you're looking, the possibility of inflation kind of re-sparking based on tariffs or any other thing that's going on in the market?

Yeah, and it's not that we don't expect, Frank, to see the inflation tick up a little bit. Everyone has kind of been waiting for this to happen, the flow through from the tariffs. I think it's what it means for the Federal Reserve. It just keeps pushing those initial or not initial, but the next level of cuts.

further and further down the road. And I think that's causing a little bit of concern because it's going to keep yields higher. You mentioned earlier the two-year going back above that 4% level. I think some of that has to do with the fact that now cuts are going to be later in this year or even pushed into 2026. All right. Also want to get to your pick for us today. We showed our mystery charts a bit ago. It's one of the big banks right now. So why is now a good time to invest in a big bank?

Yeah, when we look at some of the sectors that have really been doing well and remaining in those uptrends with the momentum that we've seen, financials is one of those. And Goldman is a relatively cheap stock within that sector, right? You're trading 13, 14 times next 12 months earnings, 1.7 times book. They have that exposure in their capital structures group to some private equity with 11, 12% long-term growth there.

And their president was just speaking about two weeks ago about the pipeline in M&A and how even though the overall M&A has been sluggish, the larger deals have actually been up about 30 percent. So I think it's a good way when we talk about being cautious and being careful in how you approach your investing. Goldman is a great longer-term name to have in your portfolio.

You know, to your point, one of the guests we just had earlier, Ford, had said they're ready to start their M&A cycle up again after their spinoff and doing some share buybacks. Victoria Fernandez, always a pleasure. Your pick for us today, Goldman Sachs. Your word, Asidious. I think our friends on Squawk are going to have some fun with that one. Thank you again. It's always good to see you.

All right, here's what to watch today. We get the latest look at CPI and weekly mortgage apps before the bell today. We also get earnings from Oracle, Victoria's Secret, and Chewy. And then Money Movers is going to have a first on CNBC interview with Chewy's CEO following those results. That's coming up at 11 a.m. Eastern time. One more look at futures. As we mentioned, futures lower across the board even after that handshake agreement between the U.S. and China. That does it for us.

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