Friends again, a meeting one year in the making the president meeting Mark Zuckerberg and tweeting out a picture. Two new Companies Get ready to make their mark. Worldwide Exchange Exchange begins right now getting you going on this friday morning good morning, good afternoon or good evening, i am Brian Sullivan we have some is live pictures right behind us here look at that, it worked. Apples Flagship Store in london where doors opened about two hours ago. Everybody rushing in, in the very polite british way of course well have a live report from there in just a moment first, lets get to the markets and your money here is how they are setting up your day futures are higher now by a staggering 7 points. It is early, this number tends to change. We are less than 1 from alltime highs in the s p 500. Yesterday, the s p 500 came within six points of it. The magic number, if you are counting at home, is 3,027 on the s p 500. Bond yields, slow there. A lot to do, we are at 1. 77 on the 10 year. More green on the screen japan creeping higher again. Japan up and in europe a trend we are seeing here today. Red but look at that italy up. 2 well see things move. Do you hear that merry christmas. Christmas may be coming early. The Trump Administration is set to release a list today of hundreds of chinese goods that will be exempt from u. S. Tariffs at least for now all of this is trade talks as officials begin today. Well hold the camera on Contessa Brewer for 45 seconds doing the quiet anchor head nod. Tell us why christmas is coming into view. The u. S. Is freeing more than 400 products from the 250 billion worth of tariffs President Trump imposed last year that is according to documents said to be published today including items such as Christmas Tree lights, retractible dog leashes, filters for kcup machines, electronic powered skate boards these are made by more than 1100 requests from different companies. These exempts will expire less than a year from now they are preparing for lowlevel talks in washington preparin for highlevel talks in october. They will introduce 16 u. S. Products like fish feed and other things prompting u. S. President to say he will impose tariffs on goods in less than two weeks. What you are getting here is, let me show you a good motion of good faith right in time for the holidays well see you in a few minutes these headlines, a little bit of an olive branch kicking off optimism among investors just posting their fall out look you compared the equity market to the late great ali. Put the two together for our viewers. 25 years ago in zier. He introduced a new strategy rope a dope and withdrew these blows until forman backed off. The summer has with stood all of these blows. Inverted yield curve, changes, global slow down, increased tariffs and now recently iranian strike on Saudi Oil Production here we are just a fraction away from an alltime high. It has been a market that has been very resilient and posed to be alltime highs as these trade deals get resolved what do you think has been the biggest gut punch or body blow to the markets this summer. This idea that they havent launched off because they havent taken the hits from all of those things you mentioned. I think the inversion of the yield curve when it went from the three month and ten year to the two year and ten year, that spooked the market then also trumps unexpected increase in tariffs announced in early august, that set off a threeweek sell off that almost got into correction territory. Weve recovered from that. This has been a very resilient market it has been that way for the past 10 plus years the market is still expanding, markets are still growing. We still live in a tina world. Shes back in the dance. Stocks are much more attractively priced than fixed income you think the alltime highs, they are coming . Look, our playbook is fairly simple trump has jaw boned the fed into lowering rates now perhaps well get a third cut. He will come to some sort of agreement on trade tariffs will come into some issue in 2020. Business confidence will pick up guess what, you have a gdp that accelerates in an election year. That is a pretty good set up if you want to be reelected as we believe trump does the best part of the market is now what . The past two weeks has demonstrated you have to be diversified. You also have to have exposure to the areas, Consumer Staples utilities. You have to have that balance in order to balance the market. Hank, have a great weekend. Thank you. And you too. When we come back, keep calm and shop on. Well go live to london where the apple phones just went on sale and this hi, mr. Zuckerberg, how did your meeting go today . Mark zuckerberg was more than happy to meet with top lawmakers at the white house yesterday well tell you more. Later alpha delivered well discuss and trade some of the best ideas from our delivering alpha conference asterday. Were Worldwide Exchange. Well return right after this. E. Because they need the massive capacity of 5g with ultra wideband, so more screaming, streaming, posting fans. Can experience 5g all at once. This is happening in 13 stadiums all across the country. Now if verizon 5g can do this for the nfl. Imagine what it can do for you. For farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. Hi, mr. Zuckerberg, how did the meeting go today what was the message today can you assure lawmakers your platform will not be manipulated ahead of the election . Did you talk about breaking up facebook that voice, she was trying to chase down zuckerberg, he may have rudely brushed her off who i thought was more than polite asking those questions he was more than happy to meet with the president the president tweeting this photo calling it, quote, constructive this was zucks first appearance on capitol hill since he testified over a year ago. Comes as the social networking backlash over the idea of crypto currency the iphone 11 and new watch hitting the markets today. Outside the london Flagship Store. I saw you had those people had lined up and they ran in it seems interest is still running high reporter thats right. Weve been here all morning gauging the interest there were about 50 people waiting to get in. Some even spent the night coming here at 5 00 p. M. Yesterday so they could be the first to get their hands on devices the store is pretty crowded. There seems to be a lot of excitement on the iphone 11. Hearing they expect the iphone 11 so that 699 model will continue to drive sales over the year looking at the demands from china given recent interest from apple. Their chinese competitor huawei released a competitor yesterday that touted four cameras versus the three on the 11 pro here talking about features comparing to apples battery life. That huawei phone will not come with android licensed apps the question is how that will affect huaweis sales here compared to apple. The apple phones are not 5g enabled. That has been a concern from analysts ive been talking to people. They are not too worried they say they upgrade their phone every year, so they can upgrade next year to the 5g device a lot of excitement over the new watch. Many are saying they are looking forward to the new series watch saying it will be a great gift going into the holiday season. Iphone sales are still over half of the Sales Revenue the sentiment is good here im guessing you are likely an iphone user it is not about the phone or the watch, all the products. Those arent things you can layout there you sign up for news, music, the new arcade service those are the things apple really wants you to have exactly we are seeing so much of it here in this store. We are talking about how the watch will play into the phone we know they bundled some of that new streaming service if you buy new products a lot of ads in the store for the trade up program you can definitely see that in the store here you can see that in the cuff measures here to trade in other devices too. Elizabeth, well see you all day on cnbc. Thank you. On deck, forget wework. Why two other Companies May bring hope back to the big tech ipo parade and how one on line dating company is trying to get rid of the phrase, hey, you dton look like your profile pic. It is trending coming up. Ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. My teeth have been feeling really sensitive lately. Well 80 of sensitivity starts at the gum line. New crest gum and sensitivity starts treating sensitivity immediately, at the gum line, for relief within days and wraps your teeth in sensitivity protection. New gum and sensitivity, from crest. Air bnb says it plans to go public in 2020 becoming one of the last of public tech start ups to head to the stock market. Uber, lyft, we are looking at you. Not just air bnb either, postmates has slapped in at 2. 4 billion the Delivery Service has capped morgan chase and jp morgan to lead that offering some breaking news from the middle east reporting live from the oil field that was attacked over the weekend hadley joins us now. Hadley reporter thats right, brian. Hey, brian, it is hadley gamble. This is the site of four separate attacks this is one of four stabilizers that had been hit. They are keen to tell us that their Rapid Response getting the fires out in three to four hours is really what is responsible for the lack of further damage this is 1. 2 Million Barrels a day knocked out of production. By the end of the weekend, they had the third back on line and they are planning to stick to those numbers by the end of september. We are talking 12 by november. Brian. Hadley, under a lot of time pressure there we appreciate it shes got to get on that bus well see you soon they are going fast now. Ill vamp on that. Hadley at the field where it is about 1. 2 Million Barrels a day. The big field hit was about 50 miles east of that that is 7 million. What is the status of that field, the saudis said they will fulfill all customer deliveries, there will be no disruption. Oil prices are up. The question is whether or not all of that supply is coming from existing inventory. Barrels you have saved up versus new production the saudis have about 66 Million Barrels in storage over time, if production does not ramp up, they are going to slowly drain that inventory down remember, you are fulfilling customer demand and you want to do that. Show the world they are not going to be stopped by these attacks. That inventory will drain as well number one, crude oil up about 7 this week not a massive jump if the weeks go on and they do not come on like as they thought, you could see inventories come down. That could tighten up the market iraq, nigeria. They have product there as well. Hopefully well have hadley back coming up. Coming up, if you want skin cream or tooth paste delivered to your door the drugstore is tni turngo drones to solve your problems. Thats next. The amount of Student Loan Debt i have im embarrassed to even say i felt like i was going to spend my whole adult life paying this off thanks to sofi, i can see the light at the end of the tunnel as of 12pm today, i am debt free not owing anyone anything is the best feeling in the world, i cannot stop smiling about it welcome back lets get a check on the headlines including some scarey flash flooding in houston. Philip is with us with more. Tropical storm emelda has flooded the state. The storm could drop five more inches making the second wettest cyclone in u. S. History. The number of vaping deaths are on the rise. Eight vape deaths and 500 are sickened the news comes after a white house meeting about vaping was canceled due to conflicts. Nike has dropped Antonio Brown after two women accused him of Sexual Misconduct brown has denied any wrongdoing and no criminal charges have been filed back to you. Coming up, one of private equitys most powerful investors is defending private equity. Google youtube has a change some power uses are upset about. More after this. With this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Thats where i feel normal. Having an annuity tells me my retirement is protected. Learn more at retire your risk dot org. For farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. Could it be a trade truce in time for christmas a bunch of stuff youll want to buy for the holidays will get an exemption. Should investors be buying the stock. And did social media get real . Friday, september 20 you are watching Worldwide Exchange here on cnbc welcome back thank you for being with us here on this friday morning im Brian Sullivan i think i speak for the entire staff when i say tgif. We are about half way through the 5 00 a. M. Hour its 5 31 on the east coast. Stock futures. S p 500 came within six points yesterday of a new alltime high it will be a long stretch if we make it. We could the magic number you are looking for on the s p 3,027 all of the bond attention has been on the repo market. Still the 10year note at 1. 7 japan keep trying to grind a little higher. Europe, kind of the same most of the markets are down the ftse mib, thei italian marke is higher now. Mixed trade. Gathering yesterday in new york city for our very own alpha conference leslie picker was there. Speeches, signing autographs, selfies, slofies the 2020 election and what it means for the private Industry Private industry has been a big focal point for Elizabeth Warren she wants to reign in industries to absorb debt of the firms they acquire. Why private equity is facing so much criticism and what it might mean for the industry. We havent done a good job of telling our story. The truth of the matter over the last five years, you look at the growth, it is roughly double the amount of employment growth. We are adding more than double what the Public Markets do i asked him whether highprofile retail bankruptcies like toys r us and sears are why they are targeting those he said other things were at play amazon and walmart have impacted those sears or jc penny. There are plenty of car carcases run over by these industries the industry itself is very positive it has been a fundraising environment including for Apollo Harris said hes not worried about all of that capital driving up devaluations. So it wasnt just private equity, we also got big calls on other stocks grub hub, uber they move the markets. Certainly, grub hub came out and said he was short, we did see those stocks decline his reason for doing so. He said grub hub isnt making enough money on each other he said Something Like 15 cents per order is what they were taking he taking home. They need to begin raising prices for the drivers on the flip side is uber speaking about uber, he has been long, im sure since the ipo he believes the Ride Hailing Companies do have a path soft bank, a big investor. Speaking about some of the concerns for wework and said some of their corporate issue enss were unique a nice word special conference we appreciate you bringing us more from it how can you profit from or vest trade in, coming to us from the summit, jimmy, i know you have a job you heard some of these ideas. Was there one or two good or bad, short or long that stood out to you i hate to say what it was because i fear people will think im being political. I swar to god this is coming from a trader where my needle starts somewhere in the middle talk about Elizabeth Warren. Many people agree, there is a lot of things that need to be changed in private equity. When she speaks, it seems like shes coming at it instead of with a razor blade but with a jack hammer. For someone to make an argument that could be really bad for the stock market is reasonable argument we see the Federal Reserve zero out rates to counter balance that would that happen again . It is reasonable to argue that could be very bad for the corporate sector if someone wants to come in and be cowboy and change everything. It could, again i had conversations about oil and gas early this week, the general thought is that, maybe being overly optimistic, candidates of both parties are going to say a lot because they have to say a lot to stand out to make get elected. What actually happens may be different. With warren tied or near the top, the markets have held up. This is a funny thing youve mentioned. You have to be pretty far out there. What we are banking on is they are politicians. They are not going to fight as hard to that extent, absolutely when you talk about the fraking thing and some of the policies mentioned and you look at what happened to saudi arabia over the weekend. If Something Like this happened 15 years ago, that move in oil could have been twice what it was. And could have hadeffects on our ee condition my. The fact that we are big oil producer is big. Is fracking bad, i dont know if you dont look at the balance, you could be in a fair amount of trouble. We talked about how oil and gas single handedly pulled the economy out of the recession from 2008 to 2010. He leaned in and said, president obama liked oil and gas because it made the economy look better and gave the white house the only positive data point for about two years. I have a daughter who is an environmental engineer getting her degree if shes watching now, shell hate im saying this that is a big deal it is a big deal when fracking was pulling us out we had that one anchor keeping us in that huge deal the reason i got involved more with the industry Everything Else was awful. This industry was up people were being paing up thckp their cars heading to north dakota they were moving and going to get a job. Outside of the political element, oil and gas, what about grub hub is that short . You know, i own a restaurant. Brants of palestine. We try to discourage people from using the services because once it leaves our hands, its out of our hands. It is more useful forecast food. You are telling me going out to a restaurant is disappearing people have to get out of the house. It doesnt seem like this brilliant groundbreaking idea to me. Forget about being a trader, you are a Restaurant Owner why do you discourage it does it get colder do the drivers stick their fingers in the fries. We were getting bad reviews over the delivery. We posted saying, please, it is in our best interest not to use these. 28 or all of them said they had sampled some of the items on their way to the persons house. If you get brants food in your car, there is more incentive to sample it could a drone deliver everything why wall greens may be teeaming up 508 the number of apple stores tim cook is peedexct to make an appearan appearance coming up every day, visionaries are creating the future. So, every day, we put our latest technology and unrivaled network to work. The United StatesPostal Service makes more ecommerce deliveries to homes than anyone else in the country. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. At verizon, were building the most powerful 5g experience for america. Thats why the nfl chose verizon. Because they need the massive capacity of 5g with ultra wideband, so more screaming, streaming, posting fans. Can experience 5g all at once. This is happening in 13 stadiums all across the country. Now if verizon 5g can do this for the nfl. Imagine what it can do for you. Servicenow put our this changes everything. Youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. Find out what else youll be talking about. Contessa brewer is it here with those. Walgreens is partnering with alphabet systems they will begin testing the Service Next Month they are doing this in a town near Virginia Tech you know why, because my hookies are developing so much of this. Are they really ive been there they have a drone park there the thing is, having a drone bring you the prescription youtube is doing away with its verified baths designating official pages or those of public figures. Youtube is worried users will view these as endorsements theyve already received push back some had their verification removed after spending years on the website. Thats tough luck, i guess dating site plenty of fish has a message to users show the real you. 75 of single people view filters as deceptive do you really think this person is a puppy dog i dont really understand. When i invited you out for din di drinks, i thought you really had a sixfoot long rainbow tongue here are the filters. That is cosmic brewer they are both equally fantastic. I love everybody for who they are. Thank you, contessa. In london at the Flagship Store, people are lining up and Richard Clarida will join squawk box at 10 00 a. M. Eastern time as a single mother, my first job is to care for derek. Everything i do is for him. When i moved to this apartment after six months, we need to connect with the world. I use the internet to keep him in the language, because thats the way to connect to my familys traditions. He has to know where he comes from. We need internet essentials. Theres no excuse to not get connected. Trump administration set to release a list of chinese goods that will be exempt from tariffs. Things like Christmas Trees, Plastic Straws dont think you are supposed to use those anyways. The president tweeting a picture of he and zuckerberg and called the meeting, quote, constructive zuckerbergs first appearance on capitol hill since over a year ago. American airline says the grounded boeing, labor dispute and of course summer storms impacting them today, apple had however quietly built a new system you may not realize exists it is 5 a month, and if youve signed up for other things, it might add up 5 for ar kate, 5 for tv plus, 10 for music and 10 for news plus and 1 to 10 a month if you are using i cloud storage. That would be 30 to 40 a month. 100 million iphone users, that is about 3 billion, 36 billion a year in the United States if all of you did it. At 5 or 10 at a time, it adds up random but interesting our next guest has run these numbers. Laura martin, Senior Analyst joining us now how much is apple making 50 billion a year. About 50 a year per user. Largely off the things with the exception of maybe music didnt even exist. They are saying theyll give it away for free if you buy an apple device you go to year two, they start charging you apple has quietly built a heck of a empire here. Yep if you look at all of those Services People are financing their iphones that means 70 of people are on a subscription to buy the device it is just a cash flow king now it is generating on a monthly basis. Markets should like that the trade in is a big thing you could get 500 if you turn in your phone from last year they are fast passing you into the eco system they lock you in with all these services a lot of these services are 70 to 80 eco services. So much to love about you europe tech analysts based in l. A. The reason i mention that, look at all these streamers l. A. , hollywood of video peacock, a wellknown executive in the space, a quote, blood bath his term, not ours what do you make of that is there room for everybody . No. I love charlies word, so ill use it blood bath the most wealthy americans get the most stuff for free. It will be free to you but apple will give you the service free with an apple device and disney has said 3 if you commit for three years that means anyone with under a 10yearold will commit to 3 a month. Apple will subsidize and give everything away for free are they going to be the winners because theyll consistently underprice everybody else . Yes if you are netflix, you cant just have a 6 a Month Service netflix, only revenue is the subscription yes or if you are disney and a theme park, can you give that away for free you are right. You need another service a sister subsidiary to subsidize your losses. If you are netflix and spending all of this money on producers and shows, you need more money, you might have to cut subscription costs is. Or advertising. It is about half and half a subscriber so netflix could be in trouble here could be and also hbo max too expensive too expensive 15 is too expensive in five years, how does it look hbo needs to lore its price netflix has to get bought and introduced a tiered service in america. Sit tight dont go anywhere. I want to go to new york outside the apple store and see if there are giant lines there. Reporter brian, the answer is yes and no. There are about 50 people in line behind me you cant quite see them because there on 58th street the crowd is not as big as youd expect about 50 to 75 people. Apple says they have this down to a science at this point you can preorder your phone and have it shipped to your phone the same day you can preorder and reserve a time to physically come pick it up the first person in line today, he tells me he got here at 1 00 p. M. Yesterday he wants the iphone 11 pro max that retails about 1159 theyve been closed since january 2017 a major renovation we expect to see tim cook here at 8 00 a. M. To open the doors and welcome the first customers. As is tradition. Hes done that the last few years in palo alto but because of this grandopening, we expec to see him physically here the renovation has taken three years, costs millions. Theyve doubled the space to about 77,000 square feet we expect to see a broadcasting space. This will be a 24hour store a major renovation about 50 people in line the excitement is buzzing. It is just around the corner get your iphone fixed any time of night. A strong buy rating this year it has been a nice stock we continue to like it and they are getting eco system lock in the more people buy the phone or the watch, the more likely they are to buy Something Else yes they are lowering the price, lowering the entry to the eco system they dont let you out they sell you a lot of services. So you are happy with the job tim cook and them are doing . I am happy. Yes. Laura, thank you. Thank you all for watching Worldwide Exchange on this great friday morning ill see youmonday squawk box begins right now. I think thats true supposed to be really nice today and tomorrow headlines, President Trump preparing to announce a list of chinese goods that will be exempt from u. S. Tariffs and preparing for another day of trade talks. Mr. Zuckerberg goes to washington President Trump calls his meeting constructive apples latest product hitting the stores today well show you the line at apple Retail Locations thats probably where andrew is but well be looking overseas. It is friday, september 20, 2019 squawk box begins right now. Foen foen 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 time Square Andrew is out today. Our guest host today is paul hicky. Good to see you. Lets check u. S. Equity futures now. Yesterday, the dow was a little lower closed down by about 53 points you can see, they are indicated up by about 5 points for fur