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Good morning, welcome to Squawk on the Street. I'm David Faber, along with Jim Kramer. We're live from the New York Stock Exchange. Carl Kintanilla has the day off. Let's give you a look at futures, of course. We begin trading for the week a half hour from now. And as you can see, of course, we are set up for what is going to be a sharply lower open on all the major averages. And of course, as you might expect, that's where we start on our roadmap this morning. Escalating trade tensions are weighing on stocks along with a number of other concerns.

Wall Street is set to join that global equity sell-off at the open.

Plus, the Juan falling to a more than 10-year low versus the dollar. China's central bank denying

that it is devaluing its currency. Insurers of Apple, while they're down, like everything else,

or more or less most stocks this morning, of course, ahead of the opening bell, what Trump's

tariff's threats could mean for that technology giant and potentially for the costs of your iPhone. We start, though, with the broader

market. Stocks are under pressure around the globe as U.S.-China trade tensions escalate. China's

won, which has now breached the $7 level for the first time since 2008 is certainly a focus

this morning. In response to that move, the president tweeted this morning, quote, China dropped the price of their currency to an almost historic low. It's called currency manipulation. Are you listening, Federal Reserve? This is a major violation which will greatly weaken China over time. So, Jim, we're back in the concerns about China, of course, this following the

decision last week by the president to put 10% tariffs on the additional $300 billion in

imports from that country starting September 1st. You know, we went through June, and it seemed

like the focus was on the Fed. And we got the rate cut, and now the focus is back on trade. Right. And I was saying last week that I thought the president was going to raise the tariff. It felt like it from his tweets, you can just sort of get a sense sometimes. The Navarro faction is winning. Yes. The force of one, actually, when you look at the article today but it who's who's really driving

his thing in the journal were both advised the president not to and navarro was saying to do it

and he did it last year remember larry is king dollar right larry cudlow and what i think is

going to happen is they're going to go to 25 you do yeah i do because here's the plan as i

understand they want to take all the tariffs up, and then they can cut them. That's a bet. They don't want to be in a situation where they have to keep raising and raising. They want to get to where they are, and then they'll hold out. Look, we're going to keep these tariffs up. American companies who can continue to leave China. You can do whatever you want with your currency. Give us a break. There'll be big capital outflows. Now, it is amazing, David, that the market, frankly, isn't down more. Why would you think it would be down more? Well, because there are a lot of people who feel that once you get into a currency war, there's going to be lots of different repercussions. I don't think that's the case.

I really don't want the U.S. to be devaluing a dollar. That would be a very bad signal to Europe. But I do think that I'm focused on Hong Kong now. Well, there's a great deal of unrest there that continues. Yeah. I mean, do they, tanks? I mean, what happens, David? I mean, should we not be more concerned about Hong Kong, given the fact that it just doesn't seem to stop?

The Chinese, Taiwan, uh, happens. Yeah. I mean, should we not be more concerned about Hong Kong, given the fact that it just

doesn't seem to stop? The Chinese, Taiwan, we were ratcheting up the pressure on China with Taiwan.

We're really ratcheting up the pressure. Now, everyone wants to play this is a long game. I think

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