Transcripts For CNBC Worldwide Exchange 20240713

That youve got to hear about. And softbank playing hardball with wework the Japanese Company reportedly set to take a drastic measure to protect its investment it is monday, october 14th, and Worldwide Exchange begins right now. Good morning, good evening and welcome from wherever you may be watching. Im Brian Sullivan thanks for being the with us to start your week. Its columbus day here in the United States so the bond market is closed. Stocks are trading but a lot of people off, their kids are off so theyre staying home. When bonds are closed, we tend to see lighter volume in the equity markets but remember, light volume can often translate into larger price swings simply due to lack of liquidity dow futures are in the green but well call them flat you can see here not the same story in asia the optimism we had here last week, it trickle ed over to sta their week in asia shanghai or japan or south korea up more than 1 . Not translating into the european trade this morning where we have the opposite normally these markets tend to go in kind of the same direction. Not today. Asia was up. Our futures in the middle. Well call that hot, medium, cold i guess and were seeing these markets coldish. The european markets down 3 to. 4 of 1 . As you well know, cnbc is the worldwide leader in Business News and that means that our team is spread out around the world to bring you all the big stories of the day. We got mr. Sedge wick in london. Ms. Gamble in riyadh and eunice yoon from beijing. Eunice, the reaction in china to what our president called a rather successful phase one of any possible trade deal. Reporter thanks so much, brian. Well, here in china people are not referring to the outcome of the trade talks as a deal rather as substantial progress. So, we managed to speak to an adviser, a former advise to the Commerce Ministry and he said that the chinese are feeling pretty good that theres progress made because the u. S. Decided not to impose the tariff, which was supposed to kick in tomorrow, raising 25 to 30 on 250 billion worth of goods, that has been put on hold, which has been a key demand of the chinese. Also he said that the structure of the deal now is going to be coming in phases, which is Something Else that the chinese had wanted to see especially with the idea that some of the tougher thornier issues involving the structure of the economy coming towards the end finally, the discussion about this embattled chinese tech giant huawei is now going to be done separately and that is something thaels the chinese had wanted to see. In terms of purchases, the government here is expected to encourage Chinese Companies to make bigger purchases, possibly as much as 50 billion, but whats interesting today was that the state media has made almost no mention at all about this pledge from china there was one comment from an influential state media blog that said that the u. S. Farm goods and the purchases of them is chinas unique bargaining chip and also just posted a reminder that chinese purchases would be made according to the needs of the country, calling them complimentary so, the goal now is to hammer out the text of a deal between the two sides before the two president s meet at the apec summit in mid november the official state paper, the china day will is cautious saying the champagne should probably be kept on ice at least until the two president s put pen to paper as based on his past practice, theres always a possibility that washington may decide to cancel so separately, china posted disappointing trade data for september. And as you would expect, brian a lot of it is the Customs Officials said a lot of the pressure that the Manufacturing Sector is feeling is because of the trade war. Outside of that, eunice, does it appear at all that the nba kerfuffle has settled down at all . Actually its funny that you mentioned that because today we noticed that ten cent, the private company that has been airing the nba games has quietly started has started airing some of the games. So there was a Chicago Bulls versus Toronto Raptors game that was on and a lot of people were excited about it and so far theres supposed to be a Houston Rockets game coming up later this week that is not on the schedule. So we could see that the Houston Rockets still is left out but that a lot of the other teams games are going to be aired. Possibly because ten cent does realize it paid a whole lot of money for those rights. Yep and a lot of fans in china. Eunice yoon, thank you very much. To london where the annual big event the queens speech set to take place today. And brexit certainly could be one big topic. Lets get to Steve Sedgewick in london with a preview of that. Steve . Reporter good morning, brian. Look, this is one of the reasons why you americans love Great Britain so much, we have pomp, we have ceremony, we have beef eaters, we have the queen, we have the whole lot today but the fact of the matter is you just mentioned in your intro, we havent and we havent seen official state opening of parliament with the full pomp and ceremony and the queens speech in all this grandeur for 839 day. You have to go back to David Cameron for that so its been the Longest Parliament in history. The new parliament is supposed to bring in the new legislative agenda of the government of the day, 22 new bills for Boris Johnsons new government, talking about a whole host of things youre absolutely right, when the queen reads out this speech in an hour and 20 minutes time, it will be basically what the government is talking about Going Forward if its still in government everyone is expecting movement on brexit whether we get an extension to the article 50 process beyond october 31st remains to be seen or indeed whether we actually get a deal which is being feverishly worked on between the eu and the uk governments remains to be seen and well have at tail end of the week, which mr. Johnsons government will be told, but also have a special parliamentary sitting on saturday which we havent seen for absolutely decades in this country. I genuinely say this, this could be one of the absolute biggest weeks for brexit since the original vote back in 2016 and of course we are looking at a general election in the country, that is why these 22 new bills that the British Government is talking about just seems so ambitious talking about health, crime, the National Health service, mental health, all kinds of issues being talked about as the governments agenda, but it all depends on brexit and it all depends on this week as well. So its quite an extraordinary set of events. Also just to add to the mix as well weve got half the metro police. I can tell you, thousands of policemen lining the route from Buckingham Palace right here to westminster because theres the prospekts of protesters from the Extinction Rebellion as well not only you have brexit, concerns about general election, concerns about the agenda and the program Going Forward, but youve also got extension rebellion protesters who have said they were going to disrupt the queens progress potentially to westminster, which is quite rich when you consider theyre against hydro carbons and the queen will be coming in a horse drawn carriage back to you. Its very environmental steve, you have pomp, you have ceremony and you are always a man of circumstance and we appreciate it. Thank you. Rounding out our exchange worldwide, lets head to saudi arabia where tensions are once again high after a suspected attack after an iranian tanker on friday. Hadley gamble is joining us. A bit of a reversal from a couple weeks ago. Absolutely, brian so many things going on inside the kingdom. Let me hit you through some of these highlight. We have more information coming from the head the chairman of aramco essentially what we heard in the last couple hours a couple comments from him suggesting we could see an ipo announcement in this month of october, even in the coming days that he said that the attacks and the resilience shown by aramco were such that if they hadnt seen that quick response, oil prices could have hit as high as 130 per barrel. He also came out essentially saying that very, very soon well hear more information about this potential float and it will be interesting i got to tell you because im hearing behind the scenes ill spend a couple more days in riyadh later in the week with a press conference as early as sunday into monday next week. A lot of things on the horizon for aramco switching gears. In my reporting last friday i was hearing on the sidelines really from the saudi spokesman, we were worried this was an attempt to escalate tensions there were no missiles involved. Now saudi arabias foreign minister in the last 24 hours saying exactly the same thing. This isnt how we behave this isnt how we would respond. And the iranians seeming to dial back the rhetoric there because there are as you know a heck of a lot of questions about exactly how any situation that would involve the conflict between saudi arabia and iran would play out and where the United States would stand on all, all against the backdrop of a historic visit of russian president Vladimir Putin to saudi arabia and tomorrow the uae as well this visit is the culmination of conversations theyve been having since 2015. This is economic and energy diplomacy. They were very quick to point out that this is not, he says, about russia trying to replace the United States in the region. Listen in. Its not an attack on u. S. Presence in the region, but its an opportunity to build very important bridges because saudi arabia is key player in the muslim world, a key player in the region, and i think we need to go back to basics by the way, im sure the saudi example is very interesting at some point to restore relationship with the u. S. Because if we could do it with saudi arabia in four years, why couldnt we do it with the u. S. Going forward . A fascinating conversation with the ceo of russian direct investment fund. This is a conversation and a story ive been following very, very closely, brian, since 2015, since the initial announcement of investment by saudi arabia into russia, 2. 5 billion has already been deployed. We heard in the last few hours from the Russian Energy minister about as much as a billion in deals that are going to evolve as a result of this visit within the oil and gas sector as well the largest delegation of russian businessmen ever visiting the kingdom today and even tomorrow the president of russia heading to the uae and a lot of conversations, brian, about whether or not russia as a mideast power broker will actually be able to move the dial forward when it comes to iran and the situation in syria. Brian . Big couple days and big week. Glad youre there. Appreciate you sticking around hadley gamble, live from riyadh. When we come back, a massive week for earnings. Remember those and your money as some of the worlds Biggest Companies get set to report. But do not fear. We have your play book. Then, President Trump says he has a deal on phase one, but does that mean its safe to keep buying stocks . And the black swan story around black gold. What is happening that could impact what you pay at the pump . Thats a story youll only hear rende vet mi uhe a wha icongp. Sy be listening . So. Lets talk. Were built for hearing whats important to you, one to one. Edward jones. Its time for investing to feel individual. Good morning and welcome back its 5 15 here on a monday morning to start your week dow futures well call them flat, theyre down its monday, right theyre flat here we go theres a big week ahead today, youve got the wto meeting. You might have heard about this trade fight, right trade obviously a big deal and also a meeting on Facebooks Libra planned crypto currency although mastercard saying theyll pull out well see what the future may hold for libra then its all about the e in priced earnings ratio. Goldman sachs. Bank of America Netflix wednesday. Union pacific thursday wolf will have a big week. Cocacola and china gdp on friday those are a few of the things thats happening thats not all we couldnt fit it on the wall joining us to talk about all this is Senior Investment strategist at investco we appreciate you coming on. Thank you. Weve been on talking a few times about this trade war you might have heard about it. Absolutely. Looks like were inching towards something. Do you get more bullish on equities or change your equity strategy based on the events of the last couple days well, i think that in our case our Investment Strategy is staying relatively stationary looking at the incremental progress we have seen on the trade deal a lot of this i think has been projected by markets for several months now, which is a delay of the implementation of some of these tariffs that were scheduled for october along with increased agricultural purchases. I think this is more of a good first step as President Trump is saying phase one and the important details are likely still to come. You remain optimistic as per last time on Technology Names and consumer discretion. Youre not scared off by some of the recent strength in discretionary stocks. I think when we look at the fundamentals of the market and whats really driving performance, to us its still more of that cyclical versus defensive argument in favor of cyclicals and more of a growthy type market where those companies that can find ways to grow their revenues faster than the headline rate will still be rewarded. Most of the data indicates that were seeing a slow down in the economy, not a fast one. Its not a major collapse but a gentle slowing wont that hurt the consumer and thus the discretionary stocks . Well, thats a great point. I think 2019 has always been a year where we characterized it as Slower Growth but better policy. Its still growth absolutely. Its slow r growth. Its not contraction or recession. Just a slower rate of gains will not be overly harm tofl the consumer in fact, better policy backdrop led by the fed easing, lowering rates, taking care of the repo market is all really helpful to stanned growth. Without getting into the weeds of the repo market, the fed coming out and saying were going to expand our Balance Sheet but dont call it quantitative easing, even though it kind of is but dont call it that shouldnt that make us nervous the fed is saying dont worry we got your back. Why would i need the fed to have my back . On the contrary, i think when we look at what the feds actions both on the headline Interest Rate side and also in the repo market, their apctions are pointing towards sustaining this can they do that . Theyll use those in order to sus sustatain the expansion we think thats a positive sign. The fed does sort of have our back and you think that will expand certain things and also outside of the u. S. Emerging markets equities its a big world can you get more narrow in where the em stands . I think youre right to characterize as hetero genius. Its hard to say that all of them are one big category anymore. We love them because of etfs but theyre not the same absolutely. I think the big story, though, right now for em equities has broadly been china and particularly the slowing export side relative to their domestic stimulus or what the chinese policymakers are doing to help support their economy. That so far is having the desired outcome without causing unnecessary inflation or anything else. Were still constructive on the emerging market complex and particularly china even during this trade war. Emerging markets. You like tech. You like discretionary we appreciate you having our back on Worldwide Exchange. Thank you very much, tim thank you for your time. Still on deck, weworks investor, the big one, softbank reportedly considering alleviating to the cash crunch but theres a big catch for floundering founder adam newman. Well explain. Plus, tanks a lot, seeing the stocks skyrocket on quadrupling of fees on the high seas. Today on squawk box Steven Mnuchin well talk to him about where we really stand in trade thats a big one 8 00 a. M. Eastern and were back after this you should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. Welcome back softbank reportedly plans to make wework an offer it cant refuse it will offer the troubled Real Estate Company a bag of cash as a lifeline, a financing package, but in return it will take control of wework. The journal reports that if this occurs it could result in further sidelines of Company Founder adam newman. Softbank owns one third of wework but is aiming to invest several billion more to alleviate the companys cash flow problems. Potential deal would shift newmans diminished voting power to the japanese conglomerate effectively giving softbank control of the wework. On deck, this man just did something no other man has ever done before. He broke an incredible record. 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Welcome back its now 5 26 here on the east coast and futures are weakening just a bit remember, its columbus day, the bond markets are closed. Stocks are open. That tends to lead to lower volume but maybe heightened volatility dow futures losing team off 75 points straight ahead, is all the newfound trade optimism simply done Morgan Stanley is calling it a, quote, meaningful risk well help you navigate through it all were back on a monday right after this your brain is an amazing thing. But as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. Healthier brain. Better life. danny s voice of course you donte because you didnt . Your job isnt doing hard work. Its making them do hard work. And getting paid for it. vo snap and sort your expenses to save over 4,600 at tax time. Quickbooks. Backing you. Whether your beauty routine is 3or 57,. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. Optimism fading in the markets on trade futures are sliding down right now, down 73 investors simply get it wrong last week . From trade to a parade of earnings all the big banks showing off their numbers this week. Will it push us higher speaking of marathons the firsttime ever the two hour marathon mark is broken simply incredible, but you wont see this in the official record books. Well tell you why it is monday, october 14th, and youre watching Worldwide Exchange right here on cnbc im going to run to you give you that story, i think its a very appropriate song little shout out to canadas finest, brian adams. Thank you for being with us here on this monday morning, welcome back im Brian Sullivan exactly 5 30 on the nose exact what, the asian markets are closed, right . Its their evening they reacted to our positive news last week and shanghai up 1 hong kong up. 8. South korea just up over 1 as well thats not trickling through to the european markets european markets, theyre down across the board, not a lot, maybe. 6 of 1 they have come down like our futures have as well if you missed the very top of the show, today is a big day in england. Its the annual event, the queens speech, what might her majesty say on brexit. She says anything its going to make headlines lets get a check on this mornings other top head license outside of the world of money and business phillip mena in new york with these good monday morning. Good morning. Good morning, brian syria is plunging into total chaos as Turkish Forces advance and President Trump ordered a withdrawal of u. S. Forces from Northern Syria the defense secretary says about 1,000 troops are set to evacuate meanwhile, fears of an isisresurgence grows, hundreds of family members of isis fighters broke out of a Detention Camp Kurdish Forces called on syrian president bashar al aside an ally of russia to deploy along the border thousands of troops have been deployed across japan to rescue people stranded in their flooded homes after a typhoon caused serious damage on the countrys main island. Local media reports that the storm killed as many as 36 people and 16 more are missing thousands of homes were left flooded, damaged or without power. Finally, simone biles made history yet again. The fourtime olympic Gold Medalist broke a World Champion record at the 2019 world gymnastic championships in germany with her 24th and 25th gold medal wins. Making her the most decorated gymnast in history the 22yearolds historic wins shattered the last long held record of 23 wins that was held back in the 1990s. Brian, looks like were watching the Michael Jordan of gymnastics in her prime as we speak. She is absolutely incredible. I had a chance to meet her in houston last year a quick hey, how are you doing. Shes unreal in every sense. Just amazing. Yeah. Just incredible. And shes only 22. And the olympics are next year. It will be a good show in tokyo as they say. Phillip mena, thank you very much. So lets talk back to the markets here maybe the markets are going to do cart wheels this week as well we saw the Market Reaction on friday markets like the trade news, the phase one striking of any kind of a potential deal. But china this morning saying, hold the champagne we got a long way to go. Now, keep in mind the president is suspended to threaten a hike in tariff that was set for this week but existing tariffs are still there. And in a note this week in Morgan Stanley says if there is another escalation in tariffs, it is a, quote, meaningful risk to markets and economies despite this partial deal joining us to make sense of this, earnings and everything going on is our good friend Senior Market strategist at slate stone wealth also, of course, a cnbc contributor perfect day to have you on, my friend how are you happy columbus day. This trade deal the markets liked it trade softening . Its not even an agreement yet. Its really just a conversation although the markets loved it on friday they loved it thursday, friday, coming into the weekend just because the markets aching for some news but was this really news. The market thought it was. Well, the market thought it was on thursday and friday the way they sold it trump came out and sold it as if the deal was basically done. In fact, over the weekend as people start to analyze it, tear it apart and look at it and try to understand what it really is, what is it really . I guess thats the conversation now. You had a lot of answer your own question, mr. Boston what is it really . So its not a trade agreement at all they talked about china buying more agricultural. Great. Soy beans and pork listen, big swine flu over there. They need our pork, right . Is that really such a big deal i dont think so the currency deal was reached back in february 2019 with Steve Mnuchin and talked about that since february was that really a big deal you cant tell me and the market is now not believing they solved anything over intellectual properties or rights or Rare Earth Minerals trump made it sound like weve got all this working on the table. Its something, right its something. It is something. Its feast or famine and its been famine. Maybe its not a feast, its a scrap, its a nugget, something. What you are seeing is they took the market 3. 5 in two days and so you could very easily see it give it all back. This week youll start with earnings. We have the smartest viewers of any network and some guy said why . Its computers, not people. It is. Lets move on to another pressing topic earnings earning season hard to believe it happened every three months gets under way in earnest tomorrow its a big bank week literally jp morgan, citi, wells fargo, Goldman Sachs and also johnson johnson, United Airlines youre welcome, united earnings expectations are not high analysts predicting s p 500 earnings to drop for the first time in more than three years. But theyre still not terrible whats the expectation from how you see it so the expectation theyre not going to be as bad as i suspect they will be last quarter they were supposed to be down by the end of the reporting season, the earnings were not down as bad as the original expectation. I think what you have to worry about, earnings is history its already happened. You have to Pay Attention to is what they say Going Forward. With so much uncertainty over trade there will still be a lot of concern, people hedging themselves look what happened to Delta Airlines last week they reported they beat on the bottom line but yet your guidance Going Forward is below what the street expects. If youre a big bank and youre so concerned about the yields, yield, the spread, all the other things there are a lot of people a pooth people thought we would be at 3 . Were at 1. 55 quarter, up above that now but when it comes to spreads and yields, the banks have got to be spooked here. So i think certainly thats what youre going to hear this week thats what investors will Pay Attention to what that means Going Forward. What do you think it means Going Forward . I think that financials are going to struggle a little bit i think the market is going to struggle. End the year lower than we are right now. I think were going to end the year right around here but well back off it as we move into the Fourth Quarter and Holiday Shopping season, i think youll get that typical boost that you get in the last quarter of the year, but i think the market is going to end right around 3,000. Well, guess what merry christmas, kenny were almost there, right . Christmas trees in home depot this weekend no. Christmas tree. I was down in palm beach Christmas Trees and santas and all that stuff its not even halloween. Its october 14th kenny, thank you very much. Thank you wow home depot what are you doing . All right. A story that we have been following for you here on Worldwide Exchange for the last couple of sessions. Oil tankers. Now, oil tankers a major part of the life blood of the global economy. They move oil around the world they are seeing their charter rates surge and some of these stocks have surged as well the sectors already had 11 years highs. How much longer can they stay at these levels randy, thank you very much for joining us i want to put in perspective to our viewers who may have missed this last week a month ago if you wanted to charter a very large crude carrier it would cost you 25 to 28,000 per day today, its over 105,000. 28,000 to 105,000, these are rough numbers based on various brokers i talked to because of sanctions on costco a Major Chinese shippingsustainable . Yes the crude market has seen Phoenix Rising incredible supply demand fundamentals the u. S. china sanctions the sanctions on the china costco ships. The biggest fleet in the world by the way youre effectively i guess the metaphor would be if fed exor ups you couldnt ship with them, everyone else is just going to jack their rates up massively. Then you have unipec and exxon saying were not going to touch any vessel that has done any activity with venezuela. So you have these supply fundamentals and vessels coming offline for scrub or retro fits. On the demand side, you have rising inventories in asia india and sourcing them from longer distances, brazil, the north sea. Plus, you have all this slate switching, the light sweet barrels going to simple refineries, heavy sour ones going to complex theres an array of factors. Is that going to result in people simply not taking delivery of oil . If youre exxon or chevron, 28,000 a day to 105,000 a day by the way, youre at sea for 20 to 60 days do you just stop buying oil . The 105,000 a day is a little stale. We have seen at 300,000. Youre breaking news online you have seen crude oil tankers be chartered for 300,000 a day that were 28,000 a day a month ago. Down in houston, hong kong spirit the name of the vessel theres no way they can make money. They got to be selling at a loss. No. Listen to whats happening historically brent was maybe at 80 so thats 3 of the cargo. Now, current cargo is worth around 120 million, 6 a barrel. And the shipping has gone up to 14 million, huge numbers, right . Thats only 7 a barrel. So if you take the 55 plus 7 a barium to ship it, thats 62. Now if youre an importing nation trying to build your inventories are you going to wait and get shipping rates youre willing to spend more than its worth because you have to. Wto goes to 60 next quarter, youre paying 60 plus 5 instead of 55 plus 7 whats the difference . These stocks we have 500 million minimum market cap we normally dont talk on cnbc. We can make an exception on this nordic american tankers, some of their market caps have come above that but the stocks have nordic american doubled. Sure. In 30 days. Got ahead of its skis. You think so . We like the larger ones with a lot of fleet size and market cap. The largest crude tanker world in the world scorpio tankers. The largest product tanker fleet in the world now for better value play, we like two that have both crude and products tanker Exposure International sea ways and diamond s. Shipping. Ticker dssi both are trading below net asset value, great Balance Sheets so you have a lot of ways to play it. Dht holdings all these market caps are well above your 500 threshold. Whats the market cap. Youre starting to get more trading liquidity, lot more interest, im here on nbc, client interactions are rising people are starting to take notice. I feel like you forgive me im an old cynical get off my lawn, randy. I feel like this is one of those things thats like this onemonth twomonth crazy phenomena. Fair. And then its going to bhafr. Whats the longterm prognosis here we have seen head fakes in the past i understand your skepticism volatility, so thinly traded. Theres a lot of underlying fundamentals are in tact folks, its 5 43 in the morning. This is a big story hes talking about. Dont steal my coverage. Theyre changing fuel regulations for shippers and its a bigger deal than people think. Real quick, its not going to go away in a month or two right, you have this increasing inventory. U. S. Exports certainly ramping imo dislocation youll get to later, certainly causing some diversity in trade and some disruption there plus, now with all of the supply, youre only at a 9 order book to fleet ratio. Historically thats been 20 so there has not been much ordering in recent years so theres not much deliveries in the next few years if you order ship today, 300,000 a day rate. I want some of that. Its going to take you 18 to 24 months to go build a vessel. Its not like the supply response can go immediately. May go on longer than we think. You may see this into 2020 25072021 i love your tie. He has anchors and like a ship Steering Wheel on the ties randy, ill be in houston seen i want to talk more about the story. Thank you very much, buddy. Go astros thank you. Go astros i agree actually. Coming up, amazon just made a big update to alexa and it multilingual users well let you know how that works. Plus, it just wont be the future until we get our flying cars we demand flying cars. Two Companies Teaming up to try to make that dream a reality when Worldwide Exchange comes back right after this. Tough to take care of yourself. But natures bounty has innovative ways to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. As a principal i can tell you this. When one student gets left behind, we all get left behind. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. Ptech students around the world. 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 but in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. Welcome back thanks for being with us here. When we came in this morning the show started 47 minutes ago. Futures were flat, even green a little bit that optimism has waned. We are now down on the futures 117 point. Keep in mind the bond market is closed its columbus day. There is no bond trading what does that sneen a lot of traders are off. Their kids are off school, so theyre staying home there will be less volume in the equity markets and means we see increased volatility the less tratding there is, the bigger the price swings tend to be especially when bond markets tend to be closed. Something to keep in mind with todays numbers. Im not saying dont Pay Attention to them. You may want to Pay Attention to them more. Dow futures are down 115 right now. Besides the overall markets, lets find out what else youre going to be talking about today, its time for this mornings top trending stories rahel solomon freshly back from china. Yes you look great. No jet lag it will hit you tomorrow. Cant wait. This story is perfect for the multilingual viewer. Your bilingual. My french is okay. It sounds okay to me when you speak french tough an alexa device, try talking to it in a different language because the response you get may surprise you amazon introduced a multilingual mode to the Smart Speaker and will roll out to three countries. American users can talk to alexa in either english or spanish and it will respond accordingly. India, users can talk to their device in hindi. Amazon says the goal of the update is to let users switch between languages on the fly as many bilingual families do at home this is news but its late to the game because google brought this out, siri also speaks multilanguages. By the way, its still a thing. Still happening. For sure. We actually heard a presentation from one of the guys that created alexa this weekend. Oh, wow. He went to my college, virginia tech. Any way, its going to start identifying emotions really . Why . Whether youre sad or happy. So you know. So you know but i already know how i feel. Alexa is going to know how you feel. Lovely. Cant wait for that. Ready im excited about this. This is awesome. Flying cars could soon become a reality porsche and boeing are teaming up to create a premium air mobile vehicle which means a flying car the two companies are developing an International Team to develop on the project it could move the world into the third dimension of travel. No word on when the flying cars will be ready for sale a 2018 study by posh the flying market will take off by 2025 earlier this year, boeing successfully completed the first test of the air passenger vehicle. Thats a goodlooking vehicle. It looks like a car thats sleek with wings i hope it happens. We were promised jet packs, rahel . Are you Still Holding on to that yeah. How about this . Yeah, one hour 59 minutes and 40 seconds that is how long it took to complete a 26. 2 marathon the first athlete on record to run the race in under two hour heaveraged 4. 30 minutes per mile despite the achievement, he doesnt set a new world record because he was assisted by 36 pacemakers who ran alongside him to keep him on track because he had so much assistance they had laser to point him to the exactly shortest route on the running. It was completely perfect its a sprint for everyone. The dude is faster than new york city traffic. Lets just be clear. Everything is faster than new york city traffic. Perfect good way to end. Thank you very much. Lets go to sports now if you went to bed early, the American League championship series is all tied up at 1 the yankees, it came in, were going to go out to houston up 20. Had a dominant game one win. The astros, they had other plans. A big hit by Carlos Correa gave the astros an early lead didnt last long aaron judge hitting a two huge tworun shot in the fourth they jumped ahead but houston eventually tying the game in the fifth. They duked it out to the bottom of the 11th. They went into extra innings in a solo home run by correa would give the astros win, 32 to tie the game at one game a piece heading back to new york. On deck, move over china there may be a new trade war in town the wto giving the green light to the u. S. To impose 10 tariffs on dozens of europeanmade goods. Just one of the major factors that could impact your money this week. Dow futures are off 115. Were back after this. Make fitness routine with pure protein. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein. The best combination for every fitness routine. Welcome back it is 5 54 here on a monday morning. And the markets, the bond markets closed for columbus day, but if you thought it was going to be a slow day for the market, you might want to think again. There was some optimism around trade, President Trump talking about phase one of a deal. Well, reports just minutes ago coming out and crossing the tape are reportedly chinese officials who this weekend said hold the champagne and said they want more talks before they will sign off even on a phase one of any trade deal those headlines minutes ago sending futures down dow futures down 106 points right now. When the show began, 54 minutes ago we were mildly higher on the dow. Goes again to show you just how sensitive the markets are to trade. Keep this in mind as well, no bond market today. That could lead to lower volume which could lead to higher volatility just something to think about. Were glad to have this man, chief equity and derivative strategist at btie read your note over the weekend but im going to throw that out. Look at this, a possible new headline china saying hold on, we want more talks why are we so sensitive to these headlines which to be perfectly honest with you arent that large in terms of this grand scheme well, if you think about it, the market has been going sideways for four months now and essentially 18 months if you want to be all in. No question about it. And it has been sensitive the entire time. You talked about algos in the earlier in the program but sensitive to every single parsed word but what we found out over the last four days that we werent sure about is that President Trump wants a deal okay thats what thursday and friday were all about. But theres two parties to the deal. Theres no question about it. And if you look at it, what we also found out over the last four, five days is that china is willing to use the hardball tactics that the president has used reasonably successfully these last number of months as well so essentially what it comes down to is the tariffs in december are the things that are going to be on the table the new round. The new round the new round which were not on the table, not discussed at all. I want to be clear for our audience, by the way, trying to keep track of this is as easy as trying to keep track of brexit, which is to say not easy this is talking about suspending the new round of tariffs, not removing the current tariffs that exist. Thats right. That would be the big bump for the market, would it not trump said im going to eliminate the tariffs as a sign of goodwill. No question but we shouldnt be expecting that thats phase two or perhaps even later. But really the question is are trump and xi going to sign something in november when they meet we dont know listen, nobody knows your job julian is to advise clients on what to do in this environment and based on the expectations as you guys see them so what do we do in this environment based on the expeakations we remain very, very patient. Again, sideways trading range. For us, bull markets do not end with the kind of actual pessimism that weve seen in recent weeks the percent of bulls is at basically multiyear lows. Put protection is being bought for us, the mantra here is just remain patient, try and focus away from the headlines and ultimately low Interest Rates and economy growing at 2 are going to carry stock Prices Higher into the end of the year and into 2020. Very quickly, we will be higher you expect by the end of this year higher at the end of next year than we are now, julian . Yeah, we do think so, ye. You remain optimistic the markets hang on every trade headline we appreciate it, Julian Emmanuel thank you very much. It is time for your morning rbi. The most random but hopefully interesting thing youll hear all day. There is talk history says the markets may be entering their sweet spot check out this stat. In the threemonth period from october 11th to january 10th, basically friday to january 10th, the s p 500 has historically done very well over the past ten years with an average gain in that time of 7 . That is better than 99 of all other threemonth periods. However you slice them the s p 500 even performs well over a short term of about 2. 7 in the first month of that same period, better than all over onemonth periods. 88 of the time. Well, this is not an end all be all strategy for everybody it may be a little optimism around this next threemonth time period just something to keep in mind random but hopefully interesting from an investment perspective thanks for watching Worldwide Exchange. Squawk box begins right now. Good morning progress on the china trade front, but check out the futures. State media in beijing out with a cautionary message overnight hold the champagne well take you there live. Just saw another flash, they want more talks before signing even the first phase we works at a cross roads. Theyre reportedly deciding between two Financial Rescue packages is that what the ipo is going to be is i thought was to provide future growth . Depends what theyre telling people exactly. Boeing is bored. Stripped ceo jim mcinernie of his chairman title mullenberg. Go back. I thought they were going to say they did it back then. Now theyre also doing it to mullenberg is that what theyre doing or do they just they did it then and theyre doing it again thats true. Okay. Then that is true. Whats behind that decision cant be good. Calhoun will be nonexecutive chairman monday october 14th, 2019 squawk box begins right now. Announcer live from new york where business never sleeps, this is squawk box. Good morning, everyone, welcome to squawk box here on cnbc we are live from the Nasdaq Market site in times square. Im becky quick along with joe kernen and andre