The Queen Welcoming President Trump To The U.K. As The Mexicans Arrive In The United States Battling To Avoid Tariffs As A Result Of Migrant Flows; Google May Be Facing A Second U.S. Antitrust Investigation.
JULIA CHATTERLEY, CNN INTERNATIONAL ANCHOR, FIRST MOVE: Live from the New York Stock Exchange, I'm Julia Chatterley. This is FIRST MOVE and here is your need to know. Tariffs and tiaras. The Queen welcoming President Trump to the U.K. as the Mexicans arrive in the United States battling to avoid tariffs as a result of migrant flows. And is it second time unlucky? Google may be facing a second U.S. antitrust investigation. It's Monday, let's make a move. Welcome, once again to the show and of course, it's the first trading day of June, lots going on in the show today as I mentioned there, including the fact that President Trump is of course in the U.K. and meeting with the Queen. We've got plenty of pomp and pageantry coming up in just a couple of minutes' time. But I want to bring you back here to the global markets to the New York Stock Exchange where it's the President's alter ego, the so-called tariff man that's currently occupying the minds of businesses and investors alike. Right now, futures are low. We've got the NASDAQ off around a quarter of a percent premarket. We've taken back some of the earlier losses watching U.S.-Mexico trade talks today, well, talks not on trade, but on tariffs. The U.S. saying it's ending its special trade status for India as well, of course last week, and apparently the President discussed imposing tariffs on Australia last week, too. Clearly, that didn't happen. But all of the United States' trading partners right now must be on higher alert. Let's not forget China as well. In a press conference yesterday, on Sunday, Chinese officials saying look it was the United States fault, front and center, that we saw those trade talks breakdown. We are of course, still waiting for their corporate blacklist, too. This is taking a toll on markets. What can I tell you? We've got the NASDAQ right now approaching correction territory, off almost 9 percent from that last month's record high. Chip stocks, too, have been severely punished. We've got the Dow now falling for some six straight weeks. It's also taking a toll in the bond markets, too. The 10-year yield today has been close to breaking 2.1 percent. The warnings, too from the big banks coming thick and fast. Among them, Morgan Stanley warning that we could be less than a year away from a global recession if the trade war worsens. We will be talking this through throughout the show. But for now, the President is royally occupied over in London and Hala Garani is there for us, too. Pomp, ceremony and controversy, Donald Trump has only been in London for a few hours, but we've already had plenty of three. Hala Gorani outside Buckingham Palace for us. Hala, great to have you on the show with us. Talk us through what we're seeing so far.</s>HALA GORANI, CNN INTERNATIONAL ANCHOR: Well, you mentioned the pomp and the ceremony, but there were insults and they began flying before the plane had even landed. Donald Trump has begun his first ever state visit to Britain. You'll remember last year in July, he also visited the U.K.; that was a working visit. Now, a short time ago, the U.S. President sat down for a private lunch with the Queen after a formal reading ceremony at Buckingham Palace. Well, there were no warm greetings for London Mayor though, not long before Air Force One touched down. The president sent out a tweet calling Sadiq Khan, a stone cold loser. He also made fun of his height. This after the Mayor slammed Mr. Trump in a scathing editorial calling him an example of a global far right threat. CNN's Nic Robertson joins me now with more. So today is a very, very busy day for the President. Today is royal day, tomorrow is politics day. We'll talk about that them. But right now, we expect the next event to be what?</s>NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: After the lunch is finished here, then they will go and review gifts. These are gifts that former U.S. Presidents, U.S. officials, dignitaries have given to the Queen over the years. These are held in the Royal Collection, one of the things that they might be able to see, in fact, I think we can expect President Trump to be shown a copy of the Statement of Independence from Britain over 200 years ago. But it's things of that stature that he'll be shown.</s>ROBERTSON: This is again to sort of talk about the history and the strength of the relationship, and that it goes back many, many generations.</s>GORANI: Well, the U.S. President did not shy away from some might even say, meddling in U.K. politics by having kind words for Boris Johnson though perhaps he hasn't been reminded that Boris Johnson once said some not very nice things about him, and also engaging in this Twitter war of words with the London mayor. Telling "The Sun" political editor in an interview from the Oval Office, he didn't know Meghan Markle, Prince Harry's wife was nasty. What a controversy, which we've come to expect.</s>ROBERTSON: We have and outside of the Meghan Markle question, which was something President Trump has later said that he didn't actually say, but it was there on tape and he did say it and it was to the editor as he was speaking to him before, Tom Newton Dunn who had told the President, reminded him that Meghan Markle during President Trump's election campaign, that if he got elected, then she would emigrate to Canada. So that's what he was commenting on. He was trying to make up for it. But the issues of Boris Johnson, of Sadiq Khan, of dissing in a way, Theresa May's own handling of Brexit, the things we saw when the President came here on that working visit last year, and he tried to make it up with Theresa May when he saw her after those comments became public, but it is par for the course. And I think that's what people here have expected. His Twitter spat with, the Mayor of London goes back to after one of the terror incidents in London. He criticized the way that the mayor was handling that. He seems to want to take it all on and do this again. And it diverts from some of the more substantive issues that he will be talking about while he is here.</s>GORANI: And there will be very substantive issues that the U.K. cares about deeply after Brexit. Because if they are -- and they are moving away from the closest of relationships with the rest of Europe, which is being part of the same E.U. club, they're going to have to develop some special - - even more special relationships with the</s>U.S. ROBERTSON: One of the strengths of being in the European Union is you're part of those 28 countries, 500 million people made up of all those nations. This is a powerful trading group that has clout around the world. As Britain alone, you like that clout. So you're more exposed to the leverage that the United States might put on Britain to, for example, take certain products from the United States or want access to markets in the U.K. There was a discussion over the weekend that, you know, Britain's health service could be opened up to U.S. medical interests in a way that it isn't today. But that would be a concern for British people, because they have some pride in what is a somewhat decrepit health service, but it is free to the user, and that's not the case in the U.S., that would be a concern. So these will be some of the topics coming up. But there will be a lot of businesses leaders that the President will be bringing with him that the British government is hosting as well, and this will be an important part of the conversation.</s>GORANI: Right. Some big business leaders, banking industry leaders, pharmaceutical industry leaders as well taking part.</s>ROBERTSON: Military industry, yes.</s>GORANI: Thanks very much, Nic Robertson, we'll see you in a little bit. Jeremy Hunt was the first Minister to greet the U.S. President on his arrival. The Foreign Secretary told Mr. Trump that Britain will be putting on a great show this week to celebrate the "amazing partnership," quote, unquote, between the two nations. But speaking to CNN, the Foreign Secretary conceded that there are some big differences between the two allies.</s>JEREMY HUNT, BRITISH FOREIGN SECRETARY: But we don't agree with everything he says or does. We don't agree with, for example, his approach to climate change or the Iran nuclear deal. I've disagreed with him on the NHS before, but that doesn't mean that we can't celebrate the fact that this is one of the most important alliances in history. And it's not just about Britain and America did in the Second World War, is the international order that we created since then that has led to unparalleled peace and prosperity across the world. And in that, President Trump stands rock solid with the United Kingdom.</s>GORANI: Well, Peter Westmacott is a former U.K. Ambassador to the United States, and he joins me now. So let's talk a little bit of just about the first few hours and perhaps even the hours preceding the President's touchdown at Stansted Airport outside of London. Already controversy there preceding the U.S. leader.</s>PETER WESTMACOTT, FORMER U.K. AMBASSADOR TO THE UNITED STATES: I think everybody knew that once the President of the United States -- this President of the United States was on his way or about to land, there were going to be tweets, there was going to be stories, there was going to be some sort of high risk stuff. One or two British politicians who are going to be in London have taken the opportunity to be critical of the visit, critical of him. The nature of the President is that he fires back. And of course, if he was going to give interviews which he did a day or two beforehand to a couple of the Murdoch newspapers, it was inevitable that he will get involved in British domestic politics. That's par for the course, nobody is really surprised.</s>GORANI: Right. No one is surprised, but what is significant then about this particular visit? Because this is post Brexit referendum Britain, and they know that their interests lie in developing closer relationships, even with traditional allies like the United States, but the President is talking about a trade deal that would involve access to the U.K. market even say for pharmaceutical goods. That may be some people in Britain wouldn't be comfortable with.</s>WESTMACOTT: I think you're right, Hala. We have to remember that this State Visit goes back to the day when Theresa May rushed off to the Oval Office, to be the first person to congratulate the President on his election. And he had been saying Brexit is wonderful, and thanks to Brexit and the President, and he has been very supportive of Brexit. Now, we haven't done Brexit yet. Who knows? We might not even do it. It remains to be seen. It's extremely messy. He carries on talking about shiny, new free trade deals between Britain and America. But most of us who've done free trade negotiations know that it's much more difficult than that. It will take a long time and there will be some seriously difficult negotiations over I think long time, whether it's chlorine washed chicken, beef hormones, financial services, American by America Act, or state procurement policies in America. This will be difficult. So it's nice to hear that he wants Brexit to be a success. But you know, I'll believe it when I see it.</s>GORANI: And this will be the U.K. on its own and not as part of the E.U. Boris Johnson and Nigel Farage, both men who are proponents of Brexit, of a hard Brexit were complemented by the U.S. President as being good leaders, and in the case of Nigel Farage, even saying he should be part of the negotiations.</s>WESTMACOTT: I saw that, too. And, of course, Boris said a little bit earlier, he was extremely rude about the President when he was the candidate.</s>GORANI: He called him unfit.</s>WESTMACOTT: Unfit for office. But he seems now to be very popular. For whatever reason, I don't know, he is being very complimentary, of course, about this President and he is a hardline Brexiteer, or he is for the moment until he is not. So we'll have to wait and see. But I think it's inevitable if this President is asked, "What do you think about the candidates for the race?" There's a dozen of them out there. It's hard for him not to answer the question to say which one he likes.</s>GORANI: Now, as far as the U.K. is concerned, I mean, this has been -- this honor has been bestowed on only three Presidents. I wonder why the U.K. felt the need, in your opinion, for such a lavish welcome ceremony because this is as incredibly lavish as it gets.</s>WESTMACOTT: It is lavish. It is the full State Visit. I was Ambassador in Paris when we did the same thing with President Sarkozy. We went over to Buckingham Palace in the same way. We didn't have a helicopter on the lawn. But otherwise, it was very similar and it's spectacular. And I like to think we do these things beautifully. Why? Answer: Theresa May really wanted to make him this offer on day one. Normally, to be honest, you wait and see how the relationship goes. You wait and see how the President performs before you issue an invitation to something as lavish and as important as this. As you rightly say, not every President gets a State Visit. But this was promised and this President, even though he was here for a mini visit, last year, clearly wanted the full works, too.</s>GORANI: Right. We are expecting by the way a gift review to take place. It was meant to be done in private, but we understand we will be getting live images of that. Peter Westmacott, former U.K. Ambassador to the United States, always a pleasure. Thanks so much for joining us. Julia, back to you at the New York Stock Exchange. And we'll bring those live images to you when the event takes place in Buckingham Palace behind us. Back to you.</s>CHATTERLEY: Gifting is definitely going to be a high point. I hope we do get to see those pictures and we will come back to you if we get them, Hala. Thank you for that. All right, for now though, let's bring it back to what we're seeing right now. Futures pointing lower, as the trade at war heats up. Talks, of course between the United States and Mexico taking place today. This in light of the threat from President Trump to impose tariffs on all Mexican imports, if they don't do something to tackle migrant flows into the United States. Christine Romans joins us now live. Christine, we can talk about Mexico, but it's not just Mexico. We have the Chinese overnight saying, look, it was the United States that blew the trade deal, not us. We have the reports of potential tariffs on Australia, too. I mean, we thought the President was choosing his battles here with China and there's all sorts of battles erupting, left, right and center.</s>CHRISTINE ROMANS, CNN BUSINESS CHIEF BUSINESS CORRESPONDENT: Erupting -- the President igniting the fuse in each and every one of those, too, so it shows you this is a White House that feels confident that it can fight trade wars on multiple fronts opening new fronts all the time. "The New York Times" -- the front page of "The New York Times" this morning has a Maggie Haberman story about how the White House was considering putting tariffs on Australian aluminum. You know, there was an exemption that was granted by the President now thinking about maybe taking that away. So all of these things rattling investors, although I will say my gut is telling me you could see maybe some nibbling here today because you've got major stock market averages in the U.S. down 5 percent, 6 percent, 7 percent for the NASDAQ last month. Really kind of really rough month. So I think that you just watch to see what kind of volatility we see here today, but this is what we're hearing from the White House.</s>ROMANS: Mick Mulvaney, the President's acting Chief of Staff on Fox News Sunday, essentially saying that no, the rules of economics don't apply in the Trump economy. American consumers will not feel tariffs and they are confident of that. And they're going to keep going forward. Listen.</s>MICK MULVANEY, ACTING WHITE HOUSE CHIEF OF STAFF: We put tariffs on China, we're putting tariffs on Mexico, and inflation is still under control. American consumers have gone to products that are made in the United States, for example, that don't carry those tariffs. We think the same thing will happen here, and American consumers will not pay for the burden of these tariffs.</s>ROMANS: Well, I mean, tell that to anybody trying to buy a car. I mean, Deutsche Bank says that if you have tariffs on Mexican imports, and whenever you have a risk of global auto tariffs; that will raise the price of a car. There are supply chains that are not as simple as Mick Mulvaney is making it sound that crisscross these borders. So it's not as cut and dry as he says it is. But they are holding firm that, you know, tariffs are not a bad thing in Trump world.</s>CHATTERLEY: Yes, it's fascinating, isn't it? I think we're confusing the short term impact, which is that U.S. companies pay those tariffs in order to import those goods versus the medium to longer term if companies do decide not to manufacture in China, to do it elsewhere and ship them in from another country that then will hurt China. But you've got to keep the timings here, front and center. And right now, it is the United States that pays these tariffs. I mean, to your point, what we've seen now is banks falling over themselves to lower their growth estimates to say that the Federal Reserve is going to kick in here and be cutting rates, maybe two times, maybe three times. Jay Powell front and center this week, I think what he says this week about the trade impact, and perhaps whether or not he signals that they're more worried than they have been will be critical, I think for markets this week.</s>ROMANS: I think you're absolutely right. And don't forget, we end this week with the jobs report. I mean, is all of this tariff talk and tariff man running the United States, you know, the President -- as the President of the United States, as he has called himself, is that cooling hiring enthusiasm? We have seen a very strong jobs market. Are we going to see that maybe taper off here? I will say one thing, the trade hawks around the President for a year now have been telling me that the U.S. economy is so strong, and inflation so benign, that this is exactly the time to make a big move on trade vis-a-vis China in particular. Now, this move on the border using trade as leverage on the border is very new. It's a very new tactic and very concerning for a lot of people who watch the economy. You know, they want trade to be about trade. They don't want it to be about other issues, but that's clear what the President is making it here.</s>CHATTERLEY: Yes, the firm politicization of tariffs here and not just to tackle trading balances. Christine, great point. Christine Romans joining us there. So actually, I said the tariffs and tiaras, but it's tariffs, tantrums and tiaras. I changed my mind on that. All right, let's move on. We're going to take a quick break here on FIRST MOVE, but -- so when we come back, Boeing, issuing a wing warning. How the plane maker's 737 problems just went from bad to worse. Plus, going after Google. The U.S. Justice Department gearing up to investigate the search engine giant on antitrust grounds. We've got all the details next. Stay with us. You're watching CNN.