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tv   Worldwide Exchange  CNBC  November 5, 2019 5:00am-6:00am EST

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it is 5:00 at cnbc global headquarters here is your five at 5k. the dow, s&p and nasdaq closing at record highs and looking to add more today china pushed the u.s. to drop some tariffs ahead of a potential trade deal we'll have details there uber shares are dropping after the company reports a more than $1 billion quarterly loss tony blair sits down to talk brexit we'll bring you all those
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comments and opec slashing its outlook for oil deman as it warns for chat evenings of the market "worldwide exchange" begins right now. >> good morning, i'm dominic chu in for brian sullivan today. all three indices in the u.s. look posed to open with new record highs this morning. you can see those moves are starting to add some gains the dow jones will open by about 62, the s&p about 7 and the nasdaq about 27 overall. movement in the yield side as well a slight tick higher in the 10-year note 1.8 and the
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two-year at 1.60 about 22 basis points separate those two. looking at asia, it was a positive trade very much green across the screen we've seen the positivity carried there as well. we've seen the german dax up and the ftse 100 and the spain down by 35. turning back to the top headline driving markets. china is moving the u.s. to move more tariffs as part of this phase one trade deal the deal is widely expected the u.s. pledge to nix tariffs on
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about $156 billion worth of chinese imports. and negotiators want washington to drop tariffs on goods that went into effect in september. the trade deal could be signed later this month we'll have more on that story coming up with a live report from china in corporate news, some of the biggest stock movers you can see myriad genetics getting cut today. blaming revenue struggles in the cancer division but said earnings should be higher in the second half of the year. still, look at this move 36% to the down side a drop in the extended hours of trade. also watching what is happening with shares of shake shack
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getting hammered there as well the company is warning of slower sales growth going forward those shares huge. down about 18% a massive move to the down side. shares of uber falling under pressure today cnbc joins us now to run through those numbers. we are down about 6% for uber shares in the after hours trade. >> here is the thing, uber's third quarter loss widened this is as it tries to outspend rivals through discounts and in ventures like self-driving cars and drones gross bookings which includes rides, delivery. here is the thing, costs jump to nearly $5 billion. uber ceo says the company does
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see a path to profitability. >> it was a very significant beat on the top line in terms of reknew growth and the bottom line we increased our 2019 we haven't finalized our planning at the increase our profitability on the full year >> talking about the trade off uber will have to make he said the focus is based on the best technology and driving through the discounting. also up and down about 35% since
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the ipo in may >> markets are continuing to hit record levels as positive economic earnings boost investor sentiment. joining me now, portfolio asset manager, let's talk about what we are seeing from the bigger picture perspective. is that going to carry over and power the rest of the global market >> we are definitely seeing grew green shoots of recovery and this could change the outlook for the recovery this slow down cycle we are seeing at the moment
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this is being driven by the trade conflict we are seeing the shoots coming through that could change the story there are fresh signs you are going to see them. they stopped falling you are seeing better sentiment in some of the numbers and more coming out there no doubt the markets are expensive. >> speaking of that sentiment, there is a point over the past few months, we talked about global pminumbers. many of those surveys are soft and point toward the down turn whachlt is it going to take for
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the market to accentuate the positive again >> we are willing to see that build on the upside. we are a little caution still. this is the tale end of the expansion. we think there is one more of these minicycles to look through until we really start to come through in the earnings. we've seen the earnings stall. we want to see the revisions higher >> so one of the things, the phenomenon we've been pointing out over the course of several months, the idea of a sector rotation there's been a move out of the
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technically growth orientation we are starting to see a little bit of an unwind do we see that back into higher growth with the market >> we think the value still probably continues to go they look really unloved and underowned we think that could start to pushup the bond yields and at a time value stocks start to underperform in europe, you look at the very poor sentiment there one of the most sensitive regions. if you look at the current account data that weak sentiment means there is a lot of room for improvement. the survey suggests the dax was going to fall for the first time very odd that investors are that
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bearish about out looks. you've seen about $100 billion flow out the u.s. mutual fund holdings. down about 30 or 40% if we start to see europe accelerate, we could see a big flow of u.s. in particular coming to the european market. >> live from london, thank you very much. >> when we come back on the show, opec out with the latest out look a challenging time ahead for crude. british prime minister is facing fresh optimism over brexit
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joining us with a look at the matter stay tuned, you are watching "worldwide exchange"n bc ocn but. that's why i take osteo bi-flex, to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex - now in triple strength plus magnesium. man: can i find an investment firm that has a truly long-term view? it begins by being privately owned. with more than 85 years of experience over multiple market cycles. with portfolio managers who are encouraged to do what's right over what's popular. focused on helping me achieve my investors' unique goals. can i find an investment firm that gets long term the way i do? with capital group, i can. talk to your advisor or consultant for investment risks and information. talk to your advisor or consultant are all non-gmo, sundown vitamins made with naturally sourced colors and flavors and are gluten & dairy free. they're all clean all the time.
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>> that's a live shot of london in the united kingdom. a lot of stuff happening there where our own wilford frost is
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now. jeremy corbyn is calling for them to get things sorted in six months joining us from london, you spoke with former prime minister tony blair about brexit. what is his take >> good morning, dom great to be joining you on "worldwide exchange. just caught up with former uk prime minister tony blair. i began by asking if he was annoyed that the remaining parties had caved to the wishes to have a general election before a second referendum >> i think it was the wrong thing to do. i think it would of been bet tore have a normal election. anger is a bit redundant
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the problem you've got is once you muddle up the brexit question with who governs the country, which is a different question, the risk is you get a political conversation some people are passionate and others are passionately pro-brexit but want to vote for a labor government it is not a sensible thing to do but we've done it. >> if boris johnson wins the majority, do you accept he has a mandate to complete brexit >> he will claim that. you may end up one of the reasons this is so unsatisfactory, he may win a majority with 40% of the vote and the combined vote of the anti-brexit parties is more. he'll claim a mandate.
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>> you disagree he'll deliver a mandate? >> again, it doesn't matter whether i think it or not. he'll claim a mandate. people will argue labor is not saying it is against brexit. if he wins the majority, brexit will happen. >> what is the realistic path from here? >> where you don't get a conclusive result. it is decided to result on its own terms. complicated to explain but necessary to get into the issue of why brexit is so difficult. including the irish border problem that's been so difficult. you've now got a further
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negotiation. once we exit, we have a further negotiation that will run into next year. that's also going to be a very difficult negotiation where exactly the same die lemas we've had over the irish border. the problem we've got is that they've been told at the end of the election one way or another. >> the former uk prime minister there. the important thing for markets and why the british pound remains close to $1.29 as opposed to the lows of $1.20 is that no deal brexit is pretty much off the table because boris johnson doesn't advocate on that deal more coming up including
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comments on president trump and the former prime minister's view on that. and 10:30 am live and exclusive jp morgan chairman will join me then >> knowing what you've heard from former prime minister tony blair and what we understand about jeremy cornbyn and possibe next steps, what will play out >> the key first vote is december 12. that is the date of general election as opposed to a specific referendum
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if boris johnson wins, it will lead definitively to brexit being carried out. so current date 31st of january. if conservatives do not win a majority in their own right. if one of the other parties even gets more seats than them, then it is all to play more for the result of the second referendum will be the result of the rise significantly at the moment with a decent lead in the polls though things are uncertain. the big swing factor will be weather the labor parties or the lead parties fight each other more aggressively on respective sides. the side that does that more than the other might damage the current chances and where the
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count current poles are at the moment. >> we look forward to all of your interviews. thank you so much. still on deck, the morning's stocks to watch including shares of adobe getting a major bump. details on the positive projection the company is making when "worldwide exchange" returns right afr isreteth bak make nature's bounty hair skin and nails step one. it's the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. nature's bounty, because you're better off healthy.
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>> let's get a check on other stock movers marriott's third quarter profit fell missing forecast and lowering out look for a key metric which is revenue per available room they say growth has mod rated and teem strademonstrations the hurt market. groupon did swing to a loss. siting lower traffic and uncertainty especially over brexit those shares off by 8% pre-market shares of adobe moving higher. better than expected out look. raising fourth quarter guidance for digital media business
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adobe ceo will be on squawk alley today around 11:15 eastern time tune in for that chat. still to come, the impeachment inquiry into president trump set to escalate today as lawmakers prepare to release testimony from key figures in the investigation. we'll get a live report from capitol hill coming up on "squawk box," boeing chairman david calhoun, catch that at 7:30 eastern time. to help you maintain balance and help keep you active and well-rested. because hey, tomorrow's coming up fast. nature's bounty. because you're better off healthy.
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>> welcome book to the show, house leaders are set to release transcripts from closed door depositions from former trump administration officials we'll go now to washington for the latest >> reporter: good morning. yes, the house releases two more transcripts today. the president steps up attacks against the investigation. a new witness may be coming forward. today transcripts of closed door depositions of ambassador to the eu and to the ukraine become public adding to monday's relace to a pair of transcripts. one from former ambassador to
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ukraine telling lawmakers she was a subject of a smear campaign she was pulled from her post in may and testified trump pushed for her early removal. others are not expected to appear they understand mr. shif is making up the rules as they come >> the whistleblower said lots of things that weren't so good, folks. you are going to find out. >> and it is confirmed the ukrainian businessman with ties to rudy giuliani is now willing to comply with the subpoena.
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report the these reports all could be released by friday >> coming up, china looks to lockdown a trade deal with the u.s. while asking the trump administration to make a major concession on tariffs. we'll go live r fothe latest on those big talks after this whether your beauty routine is 3 steps... or 57, make nature's bounty hair skin and nails step one. it's the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. nature's bounty, because you're better off healthy.
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trade agreement. stocks looking to build on yesterday's record highs we are breaking down whether that bold run can keep going opec issues a new warning about the pressure crude prices will be facing. it is tuesday november 5 you are watching "worldwide exchange" on cnbc. welcome back to the show, thanks for being with us. let's get a look at how markets are shaping up for today all looking to add on to yesterday's record high. you can see the dow would open by about 70 points if these future gains hold. the s&p would be up by about 8 points and the nasdaq up around
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31 that bullish tilt is continuing with currency markets. 10-year note deal a tick below 1.82%. two-year note deal 1.60% meaning the difference now around 22 basis points that yield curve is steepenning. the nikkei up and the main hong kong and chinese indices higher there as well. european markets higher as well. not to the degree the asian markets did. the cac and france up by about a quarter of .1% turning our attention back to asia and the story driving the markets. pushing to move the u.s. as they
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work on a phase one trade deal joining us now from china's import expo. what is the latest on these. can we say real progress is being made >> upcoming tariffs expected to kick in. the people here at the import expo have been talking about how this would be good for american consumers. this expo is all about the chinese consumer the government had organized this as a way to try to convince an increasingly except al international community.
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president xi jinping delivered an address trying to make that point saying china's door would only open more highlighting other developments such as the new foreign investment law and sign a high standard free-trade agreement, at least more with more countries saying we should break the wall instead of building one. xi's speech is full of familiar promises that to many in the community have said they have not translated into action you could tell the attitude had soured nearly 200 u.s. companies are taking part in this forum but the u.s. government has not sent any high-level official to this
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expo neither has officials. china is aware of this credibility gap. president xi is trying to address that saying china keeps our promises what we say counts >> one of the interesting things about where you are standing right now and for people listening on sirius channel 112, she is standing in a expo hall with microsoft banner, facebook banner behind you. what is the tone of the real optimism among that community there? >> i think it really shows that regardless of what is going on between trade and the conflict, there are a lot of companies that still see the opportunity with the chinese consumer longer
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term as you rightly pointed out, facebook behind me, we picked this position because facebook is show casing its vr gear here. they are talking a lot about advertising services that want to tap into the american market. impossible foods is here they are handing out 50,000 samples of the plant based protein. there will be meatball dumplings, without of meat of course there is a lot of excitement just another company that wants to have the chinese consumer as one of its consumers >> you've got me hungry for something. live in shanghai at the import expo thank you. we are watching several stocks under pressure following quarterly results including shares of uber
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that ride share giant is falling 5% even 6% after it reported its third quarter loss had widened that comes as it tries to outspend rivals with discounts the self--driving cars and drones nevertheless, the company sees a path to profitability. shares of myriad genetics cut today. blaming revenue struggles in the cancer division but says earnings should be significantly higher in the second half of the year you can see those shares off by about 34%. shares of shake shack also getting hammered same store sales growth weaker than expected. the company is warning of slower sales growth ahead back to the broader markets.
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major markets trading at highs with china signing a possible phase one trade deal joining me now to break it all down is tom lee, cofounder and head of research at global advisors there has been a huge amount of skepticism that the bull market run would continue we'll give you some props here you've been bullish for a while now. is this now a manifestation of true fundamentals or is it just one of those situations you've seen the pull back >> i think the upside break out we've seen is decisive we've been 20 months flat. earnings have been flat. the industrial cycle is bottoming. we saw that with the pmi coming out on friday. the market is discounting and i
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think it is really bullish >> there is this motion that sentiment is largely still tilted towards the negative side of things. is that fuel because people will throw in the towel it's always a great set up you want a wall of worry investors are anchored in a recession. we are in a recession camp there is a lot of cash on the sidelines. in the mist of the break out in the final weeks, i think it will be fire works. it is seasonally strong. there is a ton of cash even earnings season, we haven't had negative revisions it is looking good >> when you talk to clients and you've got a number of institutions that use your services, is there a sense that people want to be optimistic i say that as we look at the market setup, it feels as if people want to latch on to any
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bit of positive news as opposed to taking any excuse to push stocks lower is that the feeling you get with the client base you serve? >> i think you are referring to the last couple of weeks >> sure. >> for the most part, our clients are cautiously positioned this market is reacting in a way we can expect. you are seeing investors repositioning as the market is not going down now that we are into the seasonally strong period, i think people want a dip but they haven't gotten a dip yet if the dip were to happen, would you go towards dipped stocks on the value side or more towards the sickly call and sensitive
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side of the market >> i think what has been left in the dust is industrials, even industrial tech. >> but they hit a record high yesterday. >> yes it is a strange thing. so now, i think what you want to own is if the pmis are turning up is the value quality trade. that is from home builders to industrials to energy. >> what would happen or what needs to happen for you to change your view to become a little more cautious yourself, more value oriented or safety oriented >> i think it is the same thing that would turn anyone bearish the confidence we've been midcycle is the reason we've stayed bullish the data is showing the u.s. is showing a recession. the labor markets aren't as tight as people think. it is going to turn out the ceo
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confidence that is lacking. >> is the fed and chair appropriately possessioning our policy >> yes the fed fixed the curb with our latest cut it is a risk on for you. i don't think you need the fed to put on the accelerator here it is time to find a pause >> thank you very much >> good to see you >> let's get a check on the world outside of business. let's check in with philip mena. >> good morning. a doe mess take terror attack averted in colorado. he attracted the fbi's attention with white supremacist facebook
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posting. >> a manhunt is under way in california for two accused murder sustain expects who officials say escaped from jail. the 21 and 20 year old went missing. it is believes they escaped through a hole in the ceiling. they are offering a $5,000 reward leading to their capture. >> a repackaging company has recalled vegetable products over listeria contamination so far, no illnesses have been reported the company said affected customers should throw those products away. back to you. >> phillip mena, thank you more top stories including a new netflix show that let's you, skip the poll sicks.
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and david rubenstein joins us live with portfolio managers focused on the long term. who look beyond the spreadsheets to understand companies, from breakroom to boardroom. who know the only way to get a 360 view is to go around the world to get it. can i rely on deep research to help make quality investment decisions? with capital group, i can. talk to your advisor or consultant for investment risks and information. talk to your advisor or consultant ♪ ♪ i've been a caregiver for 20 years. no two patients are the same. predicting the next step for them can be challenging. today we're using the ibm cloud to run new analytics tools that help us better predict and plan a patient's recovery. ♪ ♪ ultimately, it's helping thousands of patients
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sundown vitamins. all clean. all the time. >> welcome back. in sports, the dallas cowboys faced off the new york giants last night at metlife stadium. dallas got off to a rough start giving the giants an early lead but it did not last long the cowboys answered and by half time, dallas is leading 13-12 and dominate the rest of the game the cowboys beat the giants 37-18. i was at that game, so if it seems like i am a little off, it was a late night for me. >> time for this morning's top
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trending stories rahel, there was a feline at the game last night. >> your video is pretty good of it maybe bad luck had something to do you were at the game you saw this a black cat stormed the field and hung around the goal line. >> it was pretty amazing before rushing to the end zone here is the funny thing, several officials did take to the field and later the cat decided to exit on its own, which is the most cat thing to do i will leave when i'm done >> the best part is all the fans were like, where did it come from i still don't know where a cat ended upcoming from but it did dart back toward the tunnel. >> or maybe a plane heading
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towards dallas have you ever heard of a turducken? >> i have. i've had it before >> i am okay with it >> it is a turkey inside of a duck inside of a chicken and now it can come in a chip form with bringles turkey, duck and chicken flavored chips all layered on top of each other. the sets are popular with other people like dom. >> you are in fact a vegetarian, so you are not going to eat turkey and chicken but it also speaks to bringles their whole thing is to stack
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flavors on top of each other to make new flavors >> that's a lot of flavors so seth meyers is taking a new approach creating a button that will allow viewers to except sections that are about president trump the button was most my added as a joke and he doesn't believe fans will tune in and skip over the trump folks but it may help him make portions of the show funnier. certain hosts have taken a hands off approach to everything happened and others have jumped right in and that's what you get when you watch >> colbert is all in you watch some comedy central stuff, the daily show, snowa maybe for the broadcast side of things
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seth has an interesting side of this. >> can you imagine watching a news cast and just going, skipt. >> sometimes i want to skip the politics stuff >> sure. >> coming up, we'll tell you what this says about the global economy. later on, don't miss a major interview on "squawk box." we are talking to boeings chairman live at 7:30 a.m. st teaerti ayuned listening and observing are critical skills
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>> welcome back. the headlines you need in 60 seconds. opec is lowering forecast for demand and what it calls signs of stress. india has decide the not to join the asian trade pact and is due to be signed next year xerox and fujifilm will sell stake for $2.3 billion futures pointing to what should be a solid open for stocks you'll see the dow, nasdaq and s&p hit other record highs again. joining us now, wedge partner strategist good morning, nate let's talk about record highs. you heard tom lee say he thinks
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the bull run continues >> i do agree. we have a few things happening over the next few weeks. the fed cut for the third time also, we have a potential phase one trade deal which will mostly focus on egg purchases and dialogue from china not so much manipulating we are starting to see sick calls turning the corner you have banks out performing rates and utilities. that's all bullish for the market how important is the idea we are seeing the interest rate, i use the term loosely, normalize more the difference in the yields between 10-year notes and
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two-year notes, we are back up to a 22-point basis spread it is wider than it has been does that signal that things are normalizing. that definitely helps the fed has amo left and the fact that the fund rate is above the treasury that should provide more insurance to the market. i would say looking at what has happened overseas and in the u.s., data is still bad but not getting as bad the rate is improving month over month. that rate is telling us we should see august lows moving in >> if that is bullish,
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financials now become one of those situations where investors can feel safe about buying into the bank stocks. >> i think so. the yield is compelling enough for people to exit the rates which valuations are very, very rich you look at utilities and staples trading forward essentially in line with tech where is the value now you've seen more industrial and cyclical and technology type moves over the past years reassert themselves. we actually like health care
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here we don't think the medicare for all is going to happen we think americans can generally agree medical health insurance is what people could appreciate and want so cvs is a name we really like. there is positive demographics there. huge acquisitions which virticily integrates converting about 15% of the store to health hubs which would allow them to stream line more high margin businesses and take them out of pretty much backing up the aetna hospitals ever day and at the end of the day trades at a significant amount. they give you the playbook in june if they execute on that, stocks should rewritover time over time
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is good value there. >> that does it for "worldwide exchange." if you take a look at futures right now, they are pointing to gains. it will be another record day for the stocks for the nasdaq, s&p 500 and the dow if these gains hold. "squawk box" picks up now and they pick up all that market coverage >> good morning, trade optimism again helping drive stocks to record highs the latest on china negotiations, straight ahead uber's quarterly loss. that stock falling more pressure for boeing more continuing to probe new chairman david calhoun will join us in an exclusive interview. it's tuesday, november 5, 2019
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"squawk box" begins right now. >> good morning. welcome to "squawk box" on cnbc. we are live from the marketsite on times square. downing us is a cnbc contributor. good to see you today. a lot to talk about. we've been watching u.s. equity futures. this comes after the dow, s&p 500 and nasdaq set record levels the dow up about 68 points the first time since july the dow set a new record the s&p up about 8 points and the nasdaq up about 31 points. looking at treasury yields, the 10-yea


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