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bring it from 25% to 50%. the tariffs on steel into the united states of america. >> and the european union with fresh threats of its own. amid all that, futures, as you might imagine, are lower this morning, but of course off the best month for stocks since 2023. this is monday, june 2nd, 2025. and you're watching worldwide exchange on cnbc and streaming on cnbc plus. good morning everybody. thank you for being with us this morning. i'm contessa brewer in for frank holland this monday. let's kick off this hour and a new month of trading with a check on u.s. stock futures, which we're watching in the premarket under pressure after the s&p and nasdaq's best month since november 2023. right now, though, you can see the s&p 500 implied to open lower by 37 points. the dow jones

industrials implied to open lower by 226 points, and the nasdaq off by one. 50 checking the bond market now, with a 30 year hovering right below 5% that 30 year at 4.981% and the ten year at 4.444% on that yield. oil sharply higher after opec plus members said they will continue to increase crude production in july. we'll have more on that with rbc's helima croft coming up, but you can see wti now up 3.3%. you've got brant up 3%. rbob gas is a higher by two and nat gas by 4.5% higher. our top story this morning president trump's global trade war deal talks appearing on thin ice this morning after the president vowed to double tariffs on steel and aluminum imports from 25% to 50% starting this week. and despite positive messaging late last week, new developments this morning show a deal with china could be very

far off. covering all of the angles of this story. silversea silvia amaro is in london and eunice yoon is standing by in beijing. eunice, let's begin with you this morning. thanks. well, china has turned the tables on president trump's accusation that it violated the geneva deal. >> saying that it's the u.s. that's the one that violated those terms. after running through several u.s. steps recently, like the stricter student visa policy as well as tighter curbs, the commerce ministry said these actions seriously violate the consensus reached by the two heads of state in their january 17th phone call, and severely undermines the existing geneva talks consensus. should the u.s. persist in its unilateral actions and continue damaging china's interests, china will resolutely take strong measures to defend its legitimate rights and interests. so no details on

what those measures might be. but this comes after president trump posted a comment himself on truth social, which the ministry today called groundless. it reads china, perhaps not surprisingly to some, has totally violated its agreement with us. president trump's economic team has been alleging that china has been slow walking. the pledges that it made in geneva, including export curbs or easing those export curbs on rare earths. the ministry today claims that it has faithfully canceled or suspended its tariff and non-tariff measures. so far, though, the chinese have not issued a specific notice to lift some of those rare earths curbs. the white house over the weekend had said that president trump and president xi jinping would be speaking shortly. they said as early as this week, this is what the white house is, kevin hassett said. >> i'm not sure if it's been

scheduled at a specific date, but it has been discussed that the two of them will talk about the geneva agreement. you never know in international relations, but my expectation is that both sides have expressed a willingness to talk. >> and contessa, interestingly, the chinese state media has said absolutely nothing about president trump and president xi potentially having a conversation. >> all right, eunice, thank you very much for the report there from beijing. let's check in now on the asian markets off of this report. first, let's take a look here at the nikkei, which is down by a percent. you've got the hang seng off by half a percent and the shanghai composite off by half a percent to europe. and leaders there vowing a swift response to the president's new tariffs. and sylvia omarosa is standing by now sylvia what's the reaction in europe. >> so far the announcement from the united states president in terms of raising tariffs on

european steel imports, is not being welcomed by european leaders. and it's actually raising a question about how much progress we can actually see in their on going trade negotiations. so for the time being, we have heard the eu saying that it is prepared to respond. this is after the president announced an increase in tariffs on steel imports from 25 to 50%. a spokesperson for the eu has told nbc news that trump's decision would add further uncertainty to the global economy and increase costs, saying the bloc is prepared to impose countermeasures, including in response to the us president's latest move. so far, we have heard, for instance, from the industry, the german steel association, the v the v stall has said that the latest move marks a new level of escalation in the transatlantic trade conflict. now, it is worth keeping in mind that the eu has previously paused countermeasures against the

united states for 90 days to allow for negotiations between the two sides to take place. an eu spokesperson also told nbc news that if no mutually acceptable solution was reached, both existing and additional eu levies will automatically take place on come into effect on july the 14th or even earlier. so let's see what's going to happen, contessa. but no doubt that the latest announcement from the president of the united states is just raising further questions about whether we can see a compromise between both sides of the atlantic when it comes to trade. >> interesting that the eu has put a date on this by july 14th. the european markets were mostly weaker this morning. let's get more on the market reaction to these latest trade developments. greg branch joins us. the founder of branch global capital advisors, which is a financial consulting firm, also a cnbc contributor. look, we're coming off of a great may where we're matching the best results since

2023, greg. but once again, it's the trade tit for tat that has thrown a monkey in the works here. >> yeah, the trade is doing a lot of heavy lifting here. but there are other factors as well. contessa, when you think when you look at the recovery from liberation day, one of the other factors was was earnings growth. earnings growth surprised to the upside. the january 1st expectation for s&p earnings growth was 11%. the march 31st expectation was 7.9%. and we've seen the s&p achieved 12.9% earnings growth. of course, the president's trip was designed to be a shot of short term optimism into the market. and so it was not just a dovish retreat and more conciliatory language that led to that that recovery in the markets. as you rightly intimate, it looks like the catalyst of a more dovish posture on trade is going away.

but so too are some of those other tailwinds. >> when you're looking at health care which was weaker in may. you're looking at crude prices now going higher. even though opec has said it's going to raise production here. give me a sense of how you're thinking about june and going into the summer months, and where you should be positioned. >> so what i think we'll see in june, and i want to caveat this by saying that i'm optimistic that this year looks a lot like 2023, where we see a back end loaded performance. remember, in 2023, all the performance occurred from october 27th on. and so that caveat sets up what i see as a very difficult summer. i think we're going to retest those april lows as we see inflation and the current tariff policy, much less the future tariff policy, make its mark. the pes, pes, regional psi and ism data spelled this out quite clearly, where we've seen

costs rise at a faster pace than we've seen since 2022, for manufacturing in 2023 for services. and so i would buckle down and prepare to see better entry points on the things that we see have a structural tailwind for long term earnings growth. because in the short term when we see these what has been tailwinds reverse these tailwinds over the last two months in terms of inflation, in terms of a fed that is certainly not going to cut rates, and in turn, a concern in the concern of gdp shrinking. i think the markets will take a more sour outlook. >> greg, thank you for joining us this monday. appreciate your time. we have a lot more to come here on worldwide exchange, including frontline reaction to president trump's promise, doubling of steel and aluminum tariffs. the ceo of global aluminum giant constellium is coming up later this hour. plus, bending to white house pressure, helima croft weighs in on the three straight months of oil production hikes from opec. first, we have more on the us

china trade and why. my next guest, says nvidia ceo jensen huang, is getting it wrong. a busy hour still ahead when worldwide exchange returns. >> franklin templeton etfs with over 70 etfs. we have solutions for every market. helping advisors build the portfolios of advisors build the portfolios of the future. is a bitcoin etf the same as owning bitcoin directly? while bitcoin etfs might offer a familiar face, they lack the true ownership and flexibility of directly investing in bitcoin. with itrustcapital you can buy and sell real bitcoin 24/ 7 with the tax advantages of an ira. real bitcoin means no middleman, no restricted stock market hours. choose the path of direct bitcoin investment with itrustcapital because access equals opportunity. invest in bitcoin at itrustcapital.com today. insurify. at insurify we make it easy to cut your car insurance bill in half. half? how? just go to insurify.com and

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and get an eligible 5g phone on us, with a qualifying trade in. call today to learn more. rehearsal. anytime. join me at. >> i am confident that when president trump and party chairman xi have a call, that this will be ironed out. so but the fact that they are withholding some of the products that they agreed to release during our agreement, maybe it's

a glitch in the chinese system. maybe it's intentional. >> that was treasury secretary scott bessent yesterday discussing his confidence that the us-china trade dispute will be ironed out when president trump and chinese president xi jinping eventually speak. china this morning is accusing washington, though, of seriously violating last month's trade truce between the two countries and vowing a forceful response. president trump launched his own accusations against china last week, accusing the country of violating that deal that had been made in geneva. for more, let's bring in dr. roderick neil, longview global senior policy analyst and cnbc contributor. good to talk to you this morning. this tit for tat back and forth between china and the united states. how serious is this for the markets? i mean, we can see now futures look lackluster to go into june. is it is this a problem. >> good morning contessa. look,

i do think the market should pay attention here to what we've always known about this relationship. and that is it is a long term strategic competition. and as i've said before, a 90 day speed date to try and solve some of these very major contentious issues was not going to happen anyway. so i think markets may have forgotten about some of those issues and zeroed in on just the trade and just the tariffs over the last several months. but as we are seeing a lot of the problems in the relationship that define this bilateral relationship is still there, and i do think we are back in a situation where there are some real difficulties with respect to moving forward beyond this point, because i think the tit for tat cycle that we are launching on now will probably play itself out for the next two months, which is the balance of those 90 days that we have to strike some sort of

deal. so the tariffs don't spring back to that outrageous level of 145 and 125%. >> the director of the national economic council, kevin hassett, was on abc, also on a sunday show, saying that the administration has been laser focused on this. what else needs to happen in order for this to be done and set aside so that there is some certainty and surety of what's coming down the pike? >> well, i think secretary bessent is correct here, contessa, i think we're probably at a point where a leader to leader call is needed. but i don't think that that leader to leader call will solve the problems. what it will do, one hopes, is to allow for the chinese and the us side to meet. and what they decided would be a geneva mechanism, a dialog mechanism to start to systematically work through some of these problems and agreed to an additional freeze over a

period of time. but i think to set up a belief that 90 days will solve all problems for the us-china relationship, that's not realistic. >> it does seem like there's a disconnect between the high level talks that the white house wants and what maybe the chinese party wants. i want to ask you about your op ed on cnbc.com, about nvidia ceo jensen huang saying that the ai policy toward china has been a complete failure. >> yeah. look, the whole point of that op ed is to try and level set what the original architects of this policy was trying to do, and that was not to protect market share for any one company or profits for any one country. it was really about making sure that when china got this technology, because there's no way in the world you're going to stop a country as smart as resource rich as china from developing their own capability. it was their plan, which they

began in 2015 or so, to gain some sort of sovereign capability here. but the whole point was to make sure that they did it, that they did not use diffusion to take us technology to get it done, and that it would not be used on the battlefield to harm us soldiers. we don't want to be killed with our own stuff. and so we can argue other efficacies of the policy, but the real design was about making sure that the chinese would develop this on their own, not that they would never develop it. that was the base of this op ed. >> it's a really fascinating read to roderick mcneill. thank you for sharing part of it with us. high level stuff. you can read more of that on cnbc.com. still on deck breaking out one beaten down sector and why? my next guest says the charts are pointing to better times ahead for your morning mystery chart. for your morning mystery chart. we're back comcast business doesn't just power businesses. we help turn them into... ...logistics-mastering... ...supply-chain-transforming...

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realm that we've never seen before. we're eastside golf, and we're powered by shopify. oil prices are jumping today after opec+ decided to hike output by 411,000 barrels per day for a third straight month, as the group looks to defend market share and punish members who are exceeding their quotas and potentially squeeze u.s. shale producers. opec and its allies, which include russia, have been expected to discuss an even bigger hike. let's get more now from helima croft, global head of commodity strategy at rbc capital markets and a cnbc contributor. all right, so let me get this straight. we're seeing production rise and

prices too. isn't that counterintuitive? >> well, i think there had been some expectation going into the saturday meeting of the countries making voluntary cuts. the real opec group met earlier in the week and said, we're going to extend our collective cut through the end of june, end of 2026. we're talking about a voluntary cut that they had announced. eight countries they were going to start phasing in. and so the fact that you have the 411 that had become consensus. so we did not exceed the consensus increase. and i think that explains why prices are rising today. the kazakh oil minister had come out and said that kazakhstan was going to increase its own production. so there had been some question about whether there would be an even bigger increase in 411. and so they basically hit the expectation. and so prices are rising today. >> i think it's interesting that kazakhstan seems to be setting the global oil markets strategy and whatnot. but that aside, you had a statement from opec

saying, look, when we when we're talking about raising supply, there's a steady global economic outlook and current healthy market fundamentals. is there demand for all of this extra oil. >> so this is such an interesting question because in the run up to the meetings that we just had, you had uae's oil minister out saying that additional barrels could be needed. that demand was picking up. i had heard some officials from the gulf say the reason why oil prices are not lower than they are now, given all the trade concerns, is that demand is hanging in there. and so i do think that is the new reason why they're saying they're putting these barrels on the market, that the market can take these barrels. and again, if you look at where prices are right now, we have not had a major sell off since they announced they were going to start putting on more barrels on the market. sure, we're not in the 70s, but given all the concerns about the china us trade war hanging in in the mid 60s for brant, prices isn't

so bad for a number of countries that have some spare capacity. >> okay, so we've seen it like the low it was below $60 a barrel in april. it's at 62.82 this morning. where do you think prices are going? >> i think it can be really important to watch a couple of important stories. a the trade war is something we have to pay very close attention to because obviously that is a big wall of worry for the oil markets, because china is so important for global oil demand. but then we really need to watch two negotiations. what happens with the us russia negotiations over the war in ukraine. do we get some sanctions relief or do we get more sanctions as congress is threatening to do if russia does not show serious resolve to end this war? and then the all important iran nuclear negotiations. your previous guest talked about speed dating. that is what we're really seeing in the effort of the white house to try to get a deal over iran. and there was a very worrying report that just came out by the un nuclear watchdog agency,

saying iran's stockpile of highly enriched uranium, the uranium that is very close to weapons grade levels, 60% at that stockpile, had grown 50% since the previous report and that iran had enough highly enriched stockpile for ten nuclear devices. so that is putting pressure on the white house to try to get iran to make a deal, because you do have governments like israel saying if iran does not make a deal, if they do not forego enrichment, they are still determined to have a military solution. so this negotiation is really coming to end game phase. and so we really have to watch what happens over the next few months. >> halima, great to talk to you. we'll keep our eye on the oil markets today. by the way, my colleague brian sullivan in alaska watching the gas markets today. we're looking forward to his coverage there. nice to see you as we head to break watching airline stocks, the international air transport association lowering profitability forecast for the year, blaming trade tensions and falling consumer confidence, and

what they call unacceptable delays in new jet deliveries. that group now expects global airlines to post a combined profit of $36 billion this year. that's down slightly though from a previous forecast. worldwide exchange back right after this. >> hey. hey. hi. hi. could you please submit your expenses today? those expense reports? hi. can you separate those receipts? >> for the last. da da da da. >> never chase a receipt again. ramp. love. finance. >> how did you all live like this? >> blow on it. wait. pump it!

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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. >> well, that was president trump friday ramping up his trade war with the european union, announcing plans to hike tariffs on steel and aluminum after accusing china of violating its trade truce with washington. and this morning, china and the eu are firing back at washington. welcome back to worldwide exchange. i'm contessa brewer in for frank collin this morning. and we're launching into another back and forth ramping up of the trade war. we'll have the latest on the escalating tensions, including a cnbc exclusive with the ceo of global aluminum giant constellium. let's kick off this half hour, though, and the new month of trading with the check on u.s. stock futures. and what we've seen is that they're under

pressure. of course, the s&p and the nasdaq had the best month since november of 2023. but right now you can see the s&p 500 is implied to open lower by 37 points. the dow is off by 237 points. and the nasdaq is off by almost 150 points. let's get a check on the bond market. with the 30 year hovering just below the 5% point in the yield, 4.978%, we've seen that on the move higher this morning. that yield on the ten year is at 4.444. also checking the dollar now in a new note from morgan stanley which predicts it will fall 9% by the middle of next year to levels last seen during the covid pandemic. right now, you're seeing the dollar index off by 0.6%, a check on some of this morning's top stories. and silvana henao joins me with those. good morning silvana. >> hey contessa, good morning to you. well, china this morning accusing the us of seriously violating last month's trade truce between the two countries

and vowing a forceful response. now, the move coming after president trump launched his own accusations against china last week of violating that agreement. now, speaking yesterday, national economic council director kevin hassett suggesting president trump and china's president xi jinping could talk soon on the matter. >> i'm not sure if it's been scheduled at a specific date, but it has been discussed that the two of them will talk about the geneva agreement. you never know in international relations, but my expectation is that both sides have expressed a willingness to talk. >> and the trump administration's push to find savings within federal contracts reportedly turning to the tech space. now, this, according to the wall street journal, saying the white house is now looking beyond consulting firms. according to the report. last week, the general services administration sent a letter to ten companies, including dell and the it firm cdw, asking

executives to justify their work and find areas to cut. and federal reserve governor christopher waller says the central bank could still cut interest rates later this year, despite price pressures from president trump's tariffs. waller, speaking in south korea this morning, saying potential cuts could come if tariffs settle in the lower end of the range of possibilities. underlying inflation continues to make progress toward the fed's 2% goal, and the job market remains solid. contessa. >> silvana, thank you very much for bringing us those headlines. let's get another check on the us stock futures right now as we kick off june. and here we start a new month of trading, the final month of the second quarter. you can see that we're looking lower across the board. the dow implied to open lower by 238 points. joining me now with the technical take frank cavalieri founder and president at cap thesis, also a cnbc pro contributor. it's great to see you this morning frank. when we look at these may stats you're

seeing the nasdaq gained 9.56 months to date. that was its best monthly performance since november of 2023. not all the sectors did well, though. health care was a real laggard. >> right. tessa, thanks so much for having me. well slv etf reit underperformed the s&p 500 by 11% last month, which was the worst in its history going back to 1998. >> let's show that. let's show the slv now up on the chart okay. what are you looking at in terms of technical markers and where this might go from here? >> right. so a reason why we think there's going to be mean reverting, number one is that there could be a rotation. right. so the rotation goes into obviously stocks in areas that underperformed. so from a technical perspective you want to see some support. and looking at the xlvi there's two areas of support we're looking at here. number one this spot here just about one 2130. there should be a straight line. but we can see that 20 2122 and 23 actually respected that. and if you go all the way back to here, we can actually go back to the financial crisis low and draw up

here again. it would hit the 2020 covid low. come around here too. so right here this would be a confluence of support, which is a potential area for xlvi to rally from both an absolute and relative basis versus the s&p 500. >> okay. well clear this drawing. and now i want to pull up the chart of the xlp, which is consumer staples here. when you're looking at consumer staples, it was up 1.2% in may. the third worst laggard it was behind healthcare and it was behind real estate. >> right. so other performer and actually most of that gain happened this past friday. so we're talking about it then. and one of the reasons why we like this, even though it doesn't look like xlv, it looks actually better than it. right. and so we can tell going back to here that most of this consolidation over the last year or so is taking place above the former new all time high. that's encouraging to us. and again, if we're looking at rotation, xlp is one of these areas. and you can look at this whole spot as an area potentially break out from a

major move will get us much higher. and so another ratio i like to look at too is xli consumer discretionary versus xlp. on occasion that gets very extended short term, which it is now. and again, i think that's going to give investors some reason to go into xlp. >> okay. and then the last chart that we want to look at this morning is a component of the xlp. you want to look at a coca-cola company with ccep. >> yes. >> okay. what is it and what are you looking at with the chart? >> all because of the chart okay. and so i try to put blinders on for our clients and actually recommended this to our clients on friday morning before this breakout. as we can tell here, if there's going to be a bullish pattern in xlp, there's going to be areas like this as well underneath the surface. so excel ccep i'm looking at here. right. there's actually two patterns involved, but the bigger one takes place here. this is the april low right. this is higher low here. this is a cup and handle pattern. so we take the major move gets us right back to 101 would be the first target. so i like to look for areas like this outperforming. also have trade

setups like this from a technical basis. >> frank thank you very much for joining us today. appreciate your time. >> thank you tessa. >> more of frank's work is available if you head to our cnbc.com backslash pro. and there you're seeing coming up more on president trump throwing fresh fuel on the global trade war targeting europe's metals industry. and next we have a cnbc exclusive with the ceo of global aluminum giant constellium with his views on the president's latest move. worldwide exchange is back right after this. >> did you know taking xyzal at night relieves allergies while you sleep so you wake refreshed for a more productive day. get 24 hour continuous relief that does not fade. blue eyes all take xyzal at night. >> are you throwing away money on your car insurance? >> yeah, that's exactly what i'm doing. >> try and certify. we help you compare quotes and save half on your car insurance. >> i like it when things are convenient and save me lots of

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approved the drugmaker's lower dose covid 19 vaccine for adults 65 and older, and for people with underlying medical conditions. you can see in the pre-market that stock is up 4.7%. a new study finds treating breast cancer patients with astrazeneca experimental pill cut the risk of the disease progressing or death by half. experts say those results, presented at the american society of clinical oncology meeting in chicago, could change the way such cancers are treated. that stock is down by almost a percent. astrazeneca ceo will have more on this coming up on squawk box on cnbc and cnbc plus. sanofi striking a deal to buy u.s. biopharma blueprint medicines for about

$9.1 billion. sanofi will pay $129 a share in cash for blueprint, which specializes in treatments for rare immunological diseases, and those while blueprint shares up 26.8%, but sanofi shares off by almost a percent. oil prices are rising counterintuitively, as opec plus decides to hike output by 411,000 barrels per day. and it's the third straight month of hikes. analysts say the group had been discussing a bigger increase in production, which may be why we're seeing the markets move in that way. samsung reportedly nearing a deal to invest in perplexity ai. bloomberg says samsung will integrate the startup's search technology into its devices, reducing its reliance on google. those shares up 1%. and google says it will appeal an antitrust decision under which a federal judge has proposed less aggressive remedies to restore competition in online search than the ones the justice department proposed. the judge heard closing arguments in the trial to address google's

illegal monopoly on friday. those shares are basically flat in the premarket. former fed vice chair and bank of israel governor stanley fischer has died at the age of 81. fischer also served at the world bank and the international monetary fund, where he worked on the response to asian and russian financial crises in the 1990s. earlier in his career, fischer taught at mit, where he supervised the phd dissertations of ben bernanke and former ecb president mario draghi. well, there may finally be some good news in the beleaguered office market. my colleague diana olick joins us now to explain. and what's the good news, diana? well. >> contessa, look, it's a major inflection point for the office market this year. office conversions and demolitions will exceed new construction for the first time in at least a quarter century, and likely longer. simply put, more office space is being removed than added, shrinking the office footprint. this, according to exclusive new

data from cbre. it shows that across the largest 58 u.s. markets, by the end of this year, 23 point 3,000,000ft■!s of space is slated for demolition or conversion to other uses. in comparison, developers are projected to complete construction of 12 point 7,000,000ft■!s of space in those same markets. now, all of this is, of course, driven by the fundamental shift in how we work since the pandemic. office vacancies soared to a record high and still hover right around there at 19%. but the market is starting to recover. net absorption. that's just a fancy way of saying the amount of space newly occupied in a quarter versus the amount vacated, has been positive for the past four quarters. after six straight quarters of being negative. office leasing activity increased 18% in q1 year over year. and developers have also have another 85,000,000ft■!s of office space being readied for conversion in the next few years. now, experts

at cbre say the reduction in office space overall is a plus, but they do warn that conversions are facing some headwinds as the pool of buildings that it really works for is shrinking. and as we know, costs for labor, material and financing are still high. but i'm keeping to the good side, contessa. >> and we are uncertain about how high those prices will go, given all of the other volatility in the markets right now. exactly. are there particular companies that are set to benefit from the optimistic outlook with offices? >> sure. all of the office writes that we're looking at because look, if you have less space available then your demand starts to rise. it's continuing to rise very slowly. and therefore we start to see more of that, you know, supply demand shift because we've had so much supply, as you know, and very little demand. now there's back to office mandates. there are people moving back to cities away from some of those pandemic driven, driven markets. so some of those office reits are going to really benefit depending on which city you're in. but of

course, in new york city. >> you know, the industry has got to be breathing a sigh of relief. diana, thank you for joining us bright and early on this monday. ahead, the one word every investor has to hear today in the stock pick every investor needs to know. and president trump ramping up his global trade war. the ceo of constellium lays out what the president's new metal tariffs mean for his company's bottom line. we'll be right back. >> nothing stands still. not technology, not the market and not franklin templeton. we've been a firm in motion for over 75 years, always innovating. today, we're a leader in public and private markets, digital assets and custom tax management, empowering advisors with solutions to build the portfolios of the future today.

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to 50% starting this week. in a statement, an eu spokesperson said, quote, we strongly regret the announced increase of u.s. tariffs on steel imports from 25% to 50% and added that the eu is prepared to impose countermeasures, including the response to the latest u.s. tariff increase. they said that they would do that by july 14th at the latest. canadian steelworkers also out with a statement this morning, quote, thousands of canadian jobs are on the line. canada needs to respond immediately and decisively to defend workers. stock futures may be lower on this, but a basket of steel and aluminum stocks are moving sharply higher. look at cleveland-cliffs, up 26% in the

early market. steel dynamics up 12%. century aluminum up 13.5% and nucor up 13%. joining me now with reaction in a cnbc exclusive, john mark chairman, ceo and executive director at aluminum manufacturing giant constellium. it's great to talk to you this morning, john. mark. >> good morning. how are you? >> bonjour. nice to see you. let me ask you, first of all, a 25% to 50% jump in tariffs. how does that affect your company which is global in nature. >> yeah. well too much of a good thing becomes a bad thing. and that's what i think we can be faced with. initially the 25% tariff, the original one under 232 section were good for the aluminum industry. and it creates a level playing field with china going up to 50%. there's a risk that we've got two well risks facing us. one is reduction in demand because products become really

expensive. and the second one is we take a lot of our aluminum from canada. and canada may find that it is better served selling that aluminum elsewhere, rather than paying those very hefty tariffs. so we've got a situation here which can be problematic for the industry. >> we were just showing some of the companies for which you supply product airbus, general motors, jaguar land rover, stellantis and the like. given that you have a lot of business in the united states. but i'm also looking germany and france make up a big part of your overall business. if the united states hikes tariffs to 50% and the eu retaliates by also creating trade boundaries, do you get hit both ways? >> not really, because we have always been local for local. so we have a large operations in the us. that's where we make our

aluminum, our fabricator aluminum and sell it to us customers. and same in europe. so the flows between continents or countries in our case is quite limited. but what that does is create a price level which becomes very high for our customers. and that's not a good thing. again, having a tariff to level the playing field with china is good. but if you if you increase it too much, then you go beyond what is needed to ensure a level playing field. and that becomes a hurdle for our customers. >> if the tariffs were more targeted at china in particular, would that be more palatable to you? >> it could be. but the problem, and we've seen that in the past, you open the door to circumvention and you can put a tariff on china. but metal will find its way through other routes. and we've seen that in the past with metal coming in from vietnam or mexico into the us and skirting the targeted tariffs so that that blanket

approach is a bit blunt. but it does work, and we've seen some benefit from it since they were announced. but again, going too high can become problematic. >> have you seen clients trying to get ahead of tariffs and pre-ordering more from you just to have their supply in hand? >> yeah, well that was a little bit we saw a little bit of that in q1. but this is small volumes right. you're talking a 510% jump in in orders for a few weeks. it's people trying to optimize. but it doesn't change the fundamentals in the medium to long term. >> given that you're operating a global company amid i mean, we hear this from ceos across industries amid so much uncertainty, has this changed the way that you're conducting business at a macro level? >> well, we are being a little bit more prudent and certainly we have to react to it and be a bit more prudent. so yes, it

does change a little bit how we look at our business. but fundamentally aluminum is a growing market. i mean it's light. it's infinitely recyclable. it's making inroads in automotive. obviously it's very important in aerospace, in packaging as well as it replaces more and more plastics. so those fundamental trends continue. as business leaders, we've got to be a bit reactive to what's happening in the in the markets out there or in the regulatory environment. but fundamentally aluminum is a good market to be in. >> jean-marc germain, thank you so much for your time this morning. appreciate your perspective. >> thank you. >> coming up, the e-commerce player, our next guest calls his top stock idea. that came up more than 10% this year. and we'll reveal it next.

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>> oh. >> download rocket money today. >> global markets, u.s. stock futures, the dollar all under pressure today as we're seeing a re eruption of trade tensions between the u.s. and china. those are simmering. president trump plans to double tariffs on imports of steel and aluminum to 50%. and the european union has some thoughts on that. joining me now is drew pettit, director of u.s. equity strategy at citi. so with amid the backdrop of, again, a ratcheting up of

tensions globally. what's your word of the day, drew? >> so it's recall as in memory or deja vu. because look again we're walking the tariff tightrope. and then on top of that we're starting to have some concerns around earnings in the narrowness of earnings growth this year. so with all this investment delay and kind of continued consumer concern around tariffs, you know the only areas really driving growth in the market are the mega cap growth stocks and some of the secular growth themes. so you know the word of the day it's recall. >> where are you expecting the stock market to go as we head into the summer season. >> look right now the s&p has run ahead of our full year target. so we think a little bit of back and fill here a little bit of chop again as we work through this kind of messy news flow, especially around tariffs and just policy in general. you know, it may break out if we feel like there's more

conviction and fundamentals from here. but to us, honestly, this is back to where we were at the beginning of the year, where we'd rather buy on pullbacks than chase rallies. >> it looks like you're favoring growth in the index funds the nasdaq over the russell. and you prefer communications and technologies in terms of sectors. why. >> so it's funny when growth gets harder to come by and you have less conviction in growth, you fall back to buying growth. so growth either becomes offensive or it becomes more valuable because it's scarce. so to us leaning into growth sectors, indices over cyclicals and even defensives at this point is probably how you hide out in this market. >> all right. about 30s left. let me ask you about your stock pick today instacart. why do you like it. >> hey look this this plays to the theme. growth. growth is defensive. and this is a stock that has it. and on top of growth it has operating leverage. so a company that's going to grow the bottom line a lot faster than it's going to grow the top line.

>> do you think that this is a stock where if there starts to be inflation pressure that people pull back on their delivery orders. >> they might. but this is a company that's going to take share. and honestly, when we think about grocery and the staples area, that's where e-commerce penetration is really low. that continues to be a tailwind for this company. even if we see a slowdown in consumer. >> the other thing is they have this the addition of ads, which is just an add on to the core business. but in so many other places it has been an ad pressured environment. why does it work for maple bear? >> because they don't really have it. so that's an extension, a natural extension of their business. and that's a higher revenue stream than the delivery businesses. so on top of natural operating efficiencies, they're adding this new high margin kind of revenue line. so that gives it again more operating leverage as an overall business. >> sounds delicious drew thank you. here's what to watch today a busy week of economic data

with a big focus on employment leading up to the monthly jobs report friday. we also get the fed's beige book on wednesday and a diverse lineup of earnings this week. we're going to get results from companies including campbell's, dollar general, dollar tree, hpe, crowdstrike, five below, lululemon and broadcom. a big earnings week there. we'll be watching that. let's take a look right now at the futures before we send it over to squawk box. all lower this morning. the dow jones implied to open lower by 257. squawk box begins right now. >> good morning. futures pointing to slightly lower opening on the first trading day of june. stocks coming off their best month in over a year. china hitting the back of the us over trade after president trump accused the country of violating last month's agreement made in switzerland. the. the latest details are straight ahead and

president trump pulling his nomination for the leader of nasa. elon musk not happy with the decision. monday, june 2nd, 2025. and squawk box begins right now. >> good morning everybody. welcome to squawk box right here on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with joe kernan and andrew ross sorkin. happy monday. ready to get things started. but the us equity futures on the very first trading day of june are not exactly greeting things with a cheer. this morning. the dow futures are off by about 250 points, s&p futures down by 40, the nasdaq off by 155. but that's coming after a very strong month for the markets in may. the s&p 500 and the nasdaq both