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tv   Worldwide Exchange  CNBC  October 30, 2018 5:00am-6:00am EDT

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it's 5:00 a.m. on wall street 9:00 a.m. in london. buckle up for another wild ride. futures pointing to a big jump at the open after the dow saw a 918-point swing in yesterday's session. more tariffs coming. president trump turning up the heat on china. full details on that to come. the countdown is on. one week away from the midterm elections. how do you position your portfolio ahead of the big vote. mondelez beats on earnings. and tesla's ceo, elon musk
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calling for big changes to his title. we'll explain what that means. it's tuesday, october 30th "worldwide exchange" from london begins right now ♪ good morning a warm welcome to "worldwide exchange" live from london feels good to say those words again. i'm sitting in for brian sullivan today who will be back next week. let's check in on the market action futures pushing higher following yesterday's wild ride on wall street we're higher by half a percent or so for the three major indices. that's 13 points on the s&p. dow up 19 points nasdaq up 15 points. the dow was down 566 points at the low, it was significantly higher at the open
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overall a 918-point range. the biggest since february as you can see, the high of the day came near the open, an hour into trade, the low about a half hour from the end of the session. only a strong rally in the final half hour of trade allowed us to finish down what was essentially about 0.5% for the s&p, 1.6% for the nasdaq 1% for the dow the range on the s&p intraday yesterday was the low of the day, down 2.8. the futures call for the dow to be higher by 94 points the overseas picture not too bad. reacting to the final half hour of u.s. trade as opposed to the lows of the session. hong kong down, as you can see japan and shanghaiare up over 1% we'll drive into asian trade in a bit more detail.
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european trade at the moment, just higher, 0.1% for the broader stoxx 600 index. individual markets for you there, it's changed a bit. softened in the last half hour or so. germany down 0.4%. france down 0.4% if we talk in terms of sectors here in europe, oil and gas and autos higher volkswagen and bp having strong numbers, 4% higher banks and industrials are towards the bottom including bnp paribas down about 4%. with the asian trade, nancy hungerford in singapore. hi, nancy. >> hi, wilfred that wild ride on wall street you were talking about, it appears investors here are taking it in stride, even though we had a negative open for the nikkei 225, but a different story by the close this 1.5% increase for the japanese market is the best increase we've seen in 2 1/2
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months that gives an indication of how rough things have been out here. we saw big moves to the upside in part due to the rebound on chinese markets. both the shanghai and the shenzhen are up by 1% here this came as regulators indicated once fwan they're willing willing to take steps to calm market jitters many investor remain nervous about the ongoing trade tensions between the u.s. and china look at the hang seng, it is off 0.9% the worst level since may of 2017 so good news here, but rather tentative increases at this stage wilfred? >> thank you very much for that. let's turn to the other big story in asia, trade the u.s. reportedly working up new tariffs on china if talks collapse between president trump and china's president. let's get to eunice yoon into beijing with the latest.
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hi, eunice >> hi, wilfred that announcement could come as early as december. supposedly the tariffs would cover the rest of the chinese goods that are not taxed that's 2$260 billions worth. the timing of it would mean that the tariffs would kick in around chinese new year next year, so about february or so the talk of the tariffs also came as the trump administration said it's going to impose an export ban on a state semic semiconductor company. it's one of three companies in china that are seen as very important to china building its own domestic chip industry the company was also accused by micron technology of the u.s. of stealing some of its secrets the chinese company is a specialty or has a specialty in dram chips the commerce department said the decision was made on national security grounds this would bar the company from
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sourcing from u.s. suppliers some people i've been talking to here say that will be damaging for the company because it is building a new $6 billion plant also reportedly has plans to ma mass produce some of those chips by next year so the foreign ministry reacted to both developments saying on the export ban that it hopes the u.s. can do more to enhance trust between the two countries and on the talk of the tariffs, saying the u.s. noise won't succeed in intimidating china. wilfred? >> eunice, clearly the rhetoric between the two countries not particularly positive at the moment we are, of course, approaching the u.s. midterms. is there a sense in china that firstly there's no point in trying to improve the tone until those passed but secondly there's increased hope once they have passed to progress things in a slightly more positive tone >> yeah, i would say so. there's a lot of people watching the midterms some people are saying that
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maybe we should wait to see what happens after the midterms, and see whether or not president trump will have increased power or decreased power so there's a lot of waiting an seeing at this point so people are wondering what to do and waiting to see what happens next like the rest of us >> eunice, great stuff thank you very much. let's bring all this together and discuss the latest markets moves. with me is simon derrick from bny melon. let's talk about the moves this morning in the currency market dollar not doing too much. it was up a quarter percent yesterday. it is moving against the yen today. what's happening there >> it's fascinating watching dollar/yen over the last 48 hours. this is the class independentedy indicator of sentiment dollar/yen we're trading at the highs for the last couple of
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days 112.75, 112.80 that suggests maybe sentiment is turning a bit. >> from negative to positive >> absolutely. it did well during the asian session. like that rally you saw on the shanghai composite on the back of this talk of some support for the market from the securities regulator. that's interesting to me the bad news is coming in, it is not hitting the dollar, it's not helping the yen. it's not the only place you're seeing that shift in sentiment look at treasury yields. tresh treasury yields barely moved yesterday. so maybe we're getting early indication of after three, four weeks of incredibly bad news for markets, perhaps sentiment is starting to stabilize once you look outside the u.s >> so clearly a stronger dollar
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against the yen could suggest a move back towards risk on, but stronger dollar against other currencies usually means risk off if we look at the move yesterday, up a quarter percent the dollar index, over the last month, 1.5% higher for the dollar what is that reacting to? could that be suggesting risk off? >> i think that's reacting to it, but most of that move you are probably talking about shifts in european currencies. there you got specific things going on you had the italy story. that's unresolved. we have a standoff between brussels and that will be sorted out, but then you also have the brexit story that is continuing to weigh on sentiment because we have yet to get a resolution on the biggest issue of all, the border between ireland and northern ireland, nobody knows how we deal with that we only have five months left. the market is only waking up to that risk.
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it's a little like 2016, february and march time when people suddenly realized there was a real risk out there. >> possibility of change in leadership in germany as well is another factor to watch. to bring things back to the u.s., what's your latest take on the data in the u.s. and what that means for the likely path of interest rates. >> as far as i'm concerned, there's nothing in the data that suggests the fed will make a radical shift in its path. so for the moment at least i still think we'll get that move next year. do i still think there's a decent chance of three moves next year for the fed, absolutely i do also think we'll get close to the top of this economic cycle, yeah, i think that's what the yield curve has been telling us i think why we've had this stumbling market over the course of the last few weeks is the realization that we're not actually that far away >> great to see you as always. thank you very much for joining me in london turning to the wall street
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agenda another big batch of earnings before the open look for results from coke, ge and under armour, after the bell it's all about facebook. make sure you tune in to see brian sullivan and sara eisen host the closing bell to break down those numbers at 4:00 p.m. eastern time on the economic front, we'll get the latest read on the health of the housing market with the case-shiller home bryce price index. in the u.s., consumer staples have been holding up frank holland has a look at what's been driving that move. hi, frank. >> hi, wilf. consumer staples is one of two sectors in the s&p holding its value during this wild month and even after yesterday's wild swings that sector up 1% since the start of october alcohol related stocks in the group have been going in the opposite direction when we look at the group, we'll see brown-forman seeing the
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steepest fall down over 8% molson coors down almost 8%. mode modello down 6%. constellation with a huge investment in canopy, that stock down 14% at the close. another alcohol stock we've been looking at, not in the group in the s&p, but doing worse anheuser-busch inbev down. difficult month in beer an wine but other consumer staples doing good >> frank, lovely stuff looking forward to seeing you later in the show. coming up, where u.s. investors can find big opportunities overseas plus milk's favorite cookie enjoying a nice pop. we're breaking down mondelez's
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nasdaq up about 24 points. yesterday we did see the s&p up 1.8% about an hour into trade, down 2.1% with about a half hour left, ending down just two-thirds of a percent, down 0.66%. wild intraday moves yesterday. money ledelez shares are trg higher they posted better than expected earnings in organic reeve ne iie growth up 2.7%. it was enjoying a bigger move after hours yesterday. but it is still higher in the premarket. texas roadhouse shares are getting punished after earnings fell short of analysts estimates. higher labor costs they say are continuing to effect performance. and akamai getting a boost this morning
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the company announcing a 1$1.1 billion share buyback plan that's given it a 10% jump ahead of the open. bp out with quarterly results this morning profits more than doubling to hit a five-year high higher oil prices are part of the story there. bp shares are up a healthy 4% in trade in london. i'm delighted to say cnbc's steve sedgwick joins me on set steve, thank you for letting me go back to the studio. >> you're welcome. >> tell us what's happening with bp >> luke at tyou look at the bano get into the weeds i do the same with the oil companies. sometimes you don't have to get into the weeds, it's just there for you. as you said a massive beat 24% beat on the headline figure as well. that's really as far as you need to go. you could say the cash flow was
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in line but we want more in this but the fact is this is a company we all know what transformed itself under the ceo bob dudley and the cfo brian gilroy we were asking brian on set today whether the volatility of that outlook, whether it's saudi, iran, the opec group whether that was effecting the market >> if this was five years ago and oil price stocks were at the top end, beyond the five-year averages, i don't think these sort of geopolitical moments like sanctions or oil being taken off market would have the effects it's having today. we're back below the five-year average. when the oil stocks run below the five-year average it means you'll see more volatility so oil prices will range in plus or minus $5 or $10 a barrel off the back of geopolitical uncertainties. >> i have been looking at the an
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cysts, they all like this one. ubs is saying they have the confidence to make that bhp purchase in all cash jeffries is positive on this as well saying the down street beat was 25%. bernstein likes this one, they have an outperform on the stock. >> steve, as you said, the update from the cfo he gave you on the deal for bhp, and you look at the strong cash flow and the dividend yield of bp, compared to the likes of chevron and exxon, it's almost a 50% dividend yield european oil majors valuation difference and yield difference is significant this was the big battle at royal
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dutch shell and total, convince people these dividends were long-term. 10 cents a share was the u.s. dividend for a long time they have kept the dividend in the third quarter. interesting what happens on that front. for a long time the ceos were trying to convince sharerholder the dividend would stick >> and looking at political risk and investors minds, has it peaked or can it get worse >> i think it can get worse. spain, there's all kinds of issues with the catalans merkel is in a strange position, she thinks she can be chancellor
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and not leader of the cdu. she actually could be ousted because that's what happened to schmidt in 1982. we look at france, and i looked at the latest poll for macron, he's at 29%. that's way worse than the u.s. president, mr. trump . >> also lower than it was for mr. holland and mr. sarkozy. >> we have this little thing called brexit. >> what's that >> a mess. >> i don't know if i know about that steve, thank you very much for joining me on your own set still to come on "worldwide exchange," we're on volatility watch. the dow taking a wildride during yesterday's session we'll brik doeak down how to tr the turmoil and elon musk stirring up confusion on twitter overnight for a change what the tech executive is enying about his tesla title wh "worldwide exchange" comes back
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let's talk about this when we meet next week. how did edward jones come to manage a trillion dollars in assets under care? jay. sarah. so i have a few thoughts on that early retirement... by focusing our mind on whatever's on yours. welcome back to "worldwide exchange." we were looking quite positive about an hour or so ago on the futures market we were up triple digits on the dow. up 0.5 mr%, 0.6%. that has slipped the dow is up 24 points or so. about 0.1%, 0.2% now in percentage terms we are losing momentum the same is true of european trade which was essentially flat
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earlier. now looking at a half percent of declines for germany and france. yesterday was a wild ride on wall street. we saw the s&p 500 go from 2% higher about an hour into trade to 2% lower, then rally for the final half hour and end down about two-thirds of a percent. earlier both asian and european trade seemed to react more to the final half hour of trade the positive bounce, but just slipping now nothing too worrying we're still higher that has continued the dow, s&p and nasdaq all close to the flat line, albeit just higher. slipping a little bit, down to less than a half percent moves for germany and france let's check in on other news making headlines molly hall is in new york with the latest >> good morning. president trump is expected to visit pittsburgh today as funerals begin for the 11 victims of last weekend's mass shooting at the tree of life
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synagogue. the first to be buried are two brothers who had attended the tree of life synagogue since they were boys as thousands of migrants continue their journey to the u.s., the pentagon announced a deployment of 5,200 troops to the southwest border the news coming as u.s. customs and border protection officers wearing riot gear performed readiness exercises on a bridge linking el paso, texas and mexico. hope it fading for finding survivors of the lion air crash. after 24 hours, search and rescue officials announced they fear there will be no survivors. the aircraft was carrying 189 people, three of them children when it lost contact with air traffic controllers 13 minutes after takeoff from jakarta back to you. still ahead on "worldwide exchange," sell the bounce why our next guest is not buying
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into this morning's turnaround the turnaround that is losing steam. he'll make his case for why u.s. stocks are overvalued. and twitter looking to make changes whetr u heyolike it or not. more still to come on "worldwide exchange." super. but today you're building wind turbines. morning sir. chief, the blade isn't passing quality gate. that's why you work with watson. i detect frictional loss on the midspan. it can detect the tiniest defects from just a few images to help production stay on time and on budget. i optimized the fiberglass finish to reduce frictional loss and maximize airflow. i was also part of the maximizing. for ai that can do more with your data, choose watson. hello. the best ai for the job.
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investors gearing up for another wild ride after the tou swung 900 points in yesterday's
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session. countdown to facebook. the social media giant out with results later today. what to expect when it reports. and the nothing of tesla what elon musk said on twitter overnight that is getting a lot of buzz. we'll explain. it's tuesday, october 30, 2018 you're watching "worldwide exchange" on cnbc. ♪ good morning welcome to "worldwide exchange" live in london i'm wilfred frost sitting in for brian sullivan let's get you up to speed on what's happening out there frank holland is back at hq with your morning headlines >> here's what's leading cnbc right now. the trump administration is reportedly planning new tariffs against all remaining chinese imports if trade talks between washington and beijing break down here's volkswagen's cfo on cnbc earlier this morning talking trade tension and the impact on business and investors
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>> nervousness in the market is partly a reflection on the discussion some people call it a war on trade terms between the united states and europe and china. i think it's important that we come back to the negotiation table that we find mutually acceptable solutions but it is a difficult situation and all those rumors and speculations are certainly making it very hard on investors to stay focused in our industry. but i think we still believe that all parties are very clear about the consequences of rising tariffs and therefore it is important that we come to fair solutions. bp shares are rising in europe this morning. the oil giant's quarterly profit more than doubling topping expectations results were driven by higher energy prices. bp's cfo telling cnbc that oil prices may soften a little but he thinks they will probably stay above $70 a barrel in the short to medium term.
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walmart is getting ready with a focus on speed. the retailer has been testing a check out on me option that will roll out to all the stores on black friday walmart employees will be able to meet customers in the aisles, scan bulky items like flat screen tvs and let shoppers pay on the spot. wilf, back over to you >> thank you very much let's check in on the market action yesterday you'll need no reminder, a wild day up 1.8% near the open on the s&p, down 2% a half hour from the close. rallied in that final half hour of trade on wall street to be down two-thirds of a percent this morning we're called higher but we lost steam in the last hour the dow was higher by 100 points, now it's up by 41. the nasdaq up 9 points the s&p up 6 good to see we are holding steady, having lost steam most
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of the last half hour or so. european trade is lower, the dax and the french cac down more than a half of a percent treasuries first, excuse me. there is the ten-year, 3.11% we've seen yields rise a bit overnight. two-year at 2.84%. international trade, asia mainly higher we did see most of the markets trade higher after, of course what was a wild day yesterday on wall street. we could have seen it open lower. the nikkei up 1.4% there is european trade for you. lower by 0.6% or so on the dax frank impro france improving, and the ftse holding on to a few gains. when europe softened a bit over the last half hour, futures did drag down, but good to see futures holding on to some green. oil prices as of late have been
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slipping yesterday down 0.8%. today seeing a bit more weakness again. of course month to date now down 9% for wti significant weakness bp bucked the trend of recent weakness in oil prices still up significantly year to date with those great results. currency board, the u.s. dollar up about a quarter of a percent yesterday. the broader index is up over 1.5% today seeing some dollar strength against the yen, which could be encouraging for risk sentiment. now we are on volatility watch following yesterday's wild ride on wall street at its high the dow was up 352 points at its low the dow was down 566 points a 918-point range. the biggest intraday range since february let's talk more about what the big swing meant yesterday. joining me is patrick armstrong. great to see you again >> good morning. >> let's talk about the intraday
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move yesterday does the fact that we got down 2% or so in the s&p and rallied so significantly over a percent into the close on wall street suggest that valuations got low enough and it's time to buy? >> i don't think so. valuations are stretched i think the one measure people talk about is price to earnings, that's the easy measure that everyone looks at. markets are not incredibly expensive on that measure. if you look at price to ebita, the market has never been more expensive. we come off 10% since then still incredibly expensive operating margins, profit margins are at record highs that will turn the corner things making earnings look good is you got record high profit margins. 10.1 mr 10.1%, never been achieved before >> so the valuation point you're saying is relative to the fundamentals, which is crucial to view, relative to the earnings outlook as opposed to the arbitrary point that the
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market is overpriced relative to europe it's overpriced -- >> to itself exactly. 11 times price to ebita, the market never got there before. in the tech bubble it never got there. we have fallen 10% i think there's a good chance we're in a bear market before christmas. market is still expensive even with these basically 10% selloff. it's in official correction now. i think we get into an official bear and the markets still won't be cheap my view is the economy is going to deliver as well as most consensus expect i'm not in the camp where there's a recession. but we've always had a put option for the last ten years the central bank and the fed have given us a put option. we don't have that now are there pockets of value in the u.s. market? >> the old-fashioned cyclical stocks the stocks that people didn't buy to be bulletproof.
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buy a disney short a netflix. disney trading at 15 times earnings people are talking about netflix value coming from 8 billion in spend on new content disney does that in three different movies, it's got merchandising, music, theme parks. much more diversified, much cheaper. look for old-fashioned companies, sell the bulletproof, the f.a.n.g. companies basically. >> for u.s. viewers, some of the stocks in europe that you do like that you would suggest they buy, you like the european banks which have often been scary to touch. >> buy the scariest parts right now. we think the economic back drop will be supportive we don't buy in to the coming recession. stocks that will be hurt, companies like a.mazon, but you have to bet into the future 15 years. with the rising interest rates, you want companies producing
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earnings now so companies like bnp, poor results today on the revenue line, but not poor overall they're creating, a lore cower t structure going forward. that's a company you don't have to wait long for >> airbus over boeing? >> airbus, that could be a real beneficiary from the trade wars if they do emerge. china is a big buyer from airbus and from boeing. if anything, it creates a pivot towards european companies we think airbus is a cheap cyclical company right now >> autos have been in the eye of the storm. would you buy any european names? >> companies picking up 6 to 8 times earnings, giving you a yield of 4%, 5%, the end of the world won't come, but don't be buying the bulletproof companies that are way too expensive >> patrick, thank you for joining us let's find out what else
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you'll be talking about today. frank is back at hq with the top trending stories >> here's what's trending. every halloween nasa engineers compete in a pumpkin carving contest as you might expect the results are out of this world. the only rule is no carving during work hours and the only prize is bragging rights the results are amazing with lights, robotic motion, and nods to pop culture icons. elon musk is back at it. the tesla ceo taking to twitter to talk about his job title. musk tweeting deleted my tesla titles last week to see what would happen i'm now the nothing of tesla, seems fine so far. it's not clear what he meant here and tesla has not responded to requests for clarification this move comes a month after musk agreed to step down as
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s.e. chair. and twit ser gter is gettind of the like button but the twitter world is up in arms over this the twitter communication team says it is rethinking everything including the like button. >> it's interesting this one i don't know why it's such a controversial topic. the like button is not as important as it is to something like instagram i can see the thinking behind removing it, so people make interesting comments but it's not as relevant as with instagram. >> people shoot off comments to each other all the time. i don't know if the like button will improve quality of interactio interactions >> no. not too long ago people thought these social media networks
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would add a dislike button that would be a further step great stuff. >> thank you very much the buffalo bills hosted the new england patriots on monday night. the patriots made easy work of the bills winning the game by a final score of 25-6. on the topic of the nfl and me being in london, i can't move on without mentioning what a great time i had on sunday watching the eagles take on the jaguars and victorious as the eagles were as well. nice opening to hear both the national anthems of the uk and the u.s. here's another picture, myself with jim cramer. thank you to jim for taking me to the game. great fun. great to see such great support for nfl in london. wembley stadium playing host to that game. up next, the "f" in f.a.n.g.
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set to report after the close today. bro brian sullivan and sara eisen will have that on "the closing bell." we were up triple digits, we're now up 68 points we'll be right back. don't go anywhere. w, we get to spend it - our way. ♪ valerie: but we worry if we have enough to last. ♪ cal: ellen, our certified financial planner™ professional, helps us manage our cash flow and plan for the unexpected. valerie: her experience and training gave us the courage to go for it. it's our "confident forever plan"... cal: ...and it's all possible with a cfp® professional. find your certified financial planner™ professional at
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welcome back to "worldwide exchange." thanks for being with us let's look at the stock futures improving once again up triple budgets on the dow, now we're up 84 points big cap tech stocks were at the center of yesterday's volatility in two sessions 2$200 billion o f.a.n.g. market cap was wiped ou out. >> it's been a rough quarter for facebook investors are wondering if today's report will be enough to turn around the stock and sentiment in the broader tech sector shares are down more than 15% over the past three months the social media giant shocked investors with a huge miss last quarter and guidance lower for the rest of the year we're looking for revenues of 13$13.8 billion this quarter, up 33% from a year ago but the slowest pace in six years. analysts expect earnings per
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share of $1.77, down 8% from a year ago the other key metric is user growth last quarter facebook reported 2.2 billion monthly active users, with a slow dodown in european users due to the general protection data regulation going into effect facebook reported another massive security breach affecting 29 million users in september of this year that breach is being investigated so we'll listen for mention of that on today's call >> there are increasing costs they're having take on and the impact that has on margin to offset some of these data privacy concerns
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if user growth is declining enough, there has to be a make up in that ad revenue. there's currently big upside on the stock, more than 40%, more buy ratings than sell at this time >> elizabeth, thank you for that on the share price, the highs earlier in the year was nearly 220. it is down to 140. it is being effected by the recent tech selloff, down 35% from its recent highs. we're approaching the top of the hour the team is getting ready for "squawk box. becky has a look at what's coming up. >> is this a throwback tuesday today? wilf on this early in the morning? >> it will be a throwback wednesday, thursday, friday. >> wilf and brian swapped
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positions for the week >> we have seamless transition. >> i missed you. so it's good to see you. we have a lot going on cotoday. we have nine reporters joining us we have eunice joining us on china and u.s. tariffs leslie picker will have sound from the sohn conference sara eisen will be here with coca-cola earnings dom chu will talk about the markets. meg tirrell will talk about pharma scott cohen will talk about the headquarters race. eamon javers will be here to talk about washington. kate rogers will join us to talk to the chipotle ceo and josh lipton will join us to talk about apple. chipotle's ceo will be here. a lot going on today back to you. >> outstanding stuff coke, pfizer numbers hitting
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live on "squawk box. don't miss that at the top of the hour thanks to becky quick. up next on "worldwide exchange," we're on volatility watch. stocks set for a higher open following yesterday's wild swing for the dow. how you can trade the turnaround we'll discuss that and as we head outlets check in on the top performing sectors tech is still king, just about followed by healthcare and now the boring utility sectors playing catch up in the last couple of months, up 3% year-to-date we're back on "worldwide exchange" in just a couple minutes.
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- i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. welcome back to "worldwide exchange." there's a live shot of home, new york city, where the rest of the coverage will be throughout the day. earnings has been a big driver for the markets. today is no exception. before the bell results from
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coke, ge and under armour. pfizer, mastercard, plenty to focus on coke will be key perhaps not as key as what comes after the close, facebook in particular the one to watch. that will be broken down live on "the closing bell. on the economic front, we'll get the latest read on the health of the housing market with the s&p case-shiller home price index at 9:00 a.m. followed by consumer confidence at 10:00 let's check in on the markets. we've seen a positive picture on futures throughout the morning after yesterday's wild ride. the s&p was up 2% at the open. down 2% within a half hour of trade, this morning we were up over 100 points on the dow, slipped a bit towards the start of the hour, to be up 20 points, 30 points, now up 84 points on the dow. treasury yields ticked up a bit
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this morning we are above 3.1%. let's discuss all of this with bruise kasman from jpmorgan chase. thank you very much for joining me >> good morning. >> bruce, first of all, clearly big selloff and volatility yesterday and of late. does the fundamental data in the u.s. economy give reason for that >> i don't think the data is driving it we have u.s. policy, which is the fed continuing to tighten and pushing up interest rates more broadly markets are adjusting to that. the second thing is u.s. trade policy that has been moving more aggressively on china. those are things that the u.s. has been doing that affects equity markets the other thing that is in the mix is disappointing data outside the u.s., disappointing data in europe and more broadly on where capex spending is
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the question is whether the markets themselves will start to become a direct influence on the macro picture. we don't think so. but we have not seen how this story plays itself out >> clearly the trade tensions don't just potentially affect the u.s. economy, but the world economy, and china in particular has been in focus. the chinese economy has the ability to drag down the global economy. can china kick start growth again if it needs to does it have the tools at its disposal if necessary? >> i think they can. we've seen their ability to influence macro performance through policy is quite substantial. the question is first of all whether they are moving aggressively enough against the back drop of the trade drags, and the second issue is whether the timing is aligned. whether we see the stimulus kick nalt same ti at the same time as the drags are building the third quarter downshifted,
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where we are in september and october is mixed in terms of what the data is telling us now. we hope to see stasbilization over the next three months as some of the stimulus policy kicks in >> you mentioned europe, the data so data soft there. what about the rest of the emerging markets >> turkey and argentina are weak you have the other asian economies, al lot of central an eastern europe which are doing okay but certainly affected by the softness in the euro area. generally the softness in manufacturing. so it's a very mixed bag, and politics is very big in the agenda mexi mexico, brazil and a few others are interesting now. >> the equity markets have taken
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the brunt of investor concerns of late what about the credit levels >> we think the fed can have a high degree of tolerance for equity markets if they don't spill over to other markets. we have seen some small funding but nothing that gets the fed's attention. that's an important thing to watch here if we want to think about how the fed will deal with a shift here going on in the equity market. >> bruce, great to see you as always thank you for joining us bruce kasman of jpmorgan about 30 seconds left on the show let's check in on what the futures are doing after yesterday's wild ride on wall street a 918-point spread on the dow intraday 4% spread roughly speaking on the s&p. it was up 2% or so near the open, 2% a half hour from close.
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rallied into the close to be down wo-thirds that's it for "worldwide exchange" live from london "squawk box" picks things up on the other side like e-commerce spurring cardboard demand. the pursuit of allergy-free peanuts. and mobile payment reaching new markets. this is strategic investing. because your investments deserve the full story. t.rowe price. invest with confidence.
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you might buckle up for another wild ride. futures are pointing to gains at the open yesterday the dow saw a 918-point swing through the session. one reason for the volatility, the trade war buzz is back president trump turning up the heat on china. a live report from beijing it's another big earnings day. we'll hear from coca-cola. pfizer as well as general electric and aetna that's all coming up in the next 60 minutes i did not mean to imply ge is a dow component. how far the mighty fall.
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it's tuesday, october 30, 2018 "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen andrew is off today. joining us is mike santoli great to have you here >> great to be here. >> we have a lot to talk about with the markets let's start with yesterday's wild ride. at the high, the dow was up 352 points at its low the dow was down by 566 points that's a 918-point range that's the biggest we've seen since february at the end of the day, a decline of 245 points. looking at the futures


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