Stepping down after 10 years at the helm apples tim cook defending his decision to pull an app from the iphone Worldwide Exchange begins right now. Good morning. Welcome. Im Contessa Brewer in for Brian Sullivan crude prices as a result of news an oil tanker has caught fire. Well go live now to tehran. What news are you getting here who is behind it reporter good morning, contessa we dont know who is behind it right now. But the National Iranian company says that vessel that belongs to them has sustained damage to its hull after it was hit by two explosions within a half hour. Iranians are saying that this was an act of terrorism. They suspect the damage was caused by missile strikes. They say the ship was about 60 miles off the port city when the attack happened. Iranians are denying any serious damage they say two store rooms had been hit it has been contained now. Also that the crew on board are safe they are working to stabilize the ship there were reports that the ship was on fire. State media have released some images it appears to show a minimal amount of damage authorities here are saying the ships engine hasnt been damaged and they are making efforts to bring the ship back to iran waters ran irans oil minister has called a i meeting about this attack. We saw prices jump after that attack ali, this has been an area fraught with tensions. Has it affected the ability of these tankers to get oil in and out of the region . Reporter it hasnt affected the ability but made it a lot more dangerous and expensive it makes oil prices go up if you need more security to replace oil tankers and made people very nervous here with all of those incidents. It has been an unbelievable summer of volatility all of those oil tankers that got hit in the persian gulf over the summer, and the attack on the aramco facility. It is a dangerous neighborhood and difficult to maneuver. Lets go to stocks now, u. S. Futures indicate the dow will open up and indicating now up 250 points, there you are seeing nasdaq up 93 points. The bond market now and treasuries where weve seen the 10year falling a bit but now recovering up 1. 67 . It looks like the twoyear is up as well, 1. 5 . Lets go worldwide now in asia, weve seen optimism on the trade front in japan, the nikkei is up 1. 5 . The hang seng up 2. 25. In europe as well, green across the board. Top u. S. And chinese negotiationo negotiators are continuing on. Going very well im meeting with the vice premier at the white house i think it is going very well. Very well. We had a very, b very good negotiation with china theyll be speaking a little later but they are basically wrapping it up well see them tomorrow right here trumps take was enough to give a little shot of adrenaline to the markets how is it looking there . We are seeing the markets in asia up today on those optimistic headlines reporter a lot of people here are just as optimistic. The vice premier is going to the white house where theyll have a facetoface meeting just like in the u. S. , people here are up beat the state media is much more optimistic the headlines stated, smiles seen on the first day. A source familiar with the conversations in washington told me it looks as though the two sides arent headed necessarily towards a deal but a deescalation that those tariffs that were supposed to kick in on tuesday and another in december will likely be suspended and the u. S. Even as early as next week will announce that they will allow american suppliers to sell certain components to chinese tech giant huawei that has been on a black list in exchange, the chinese would buy more agriculture al products and agree to a pact that would discourage currency manipulation it looks as though the Business Community at least here, will welcome this minideal because just it would lift the uncertainty of their businesses with the idea that the two sides would tackle more issues down the road some of the headlines have to do with china rolling back some p bans to Foreign Investment of securities in china. What are you learning about that yeah, that just happened a couple of minutes ago, the chinese regulator announced a time table forgetting rid of some of these limits and the Financial Institutions in certain sectors. They have now a future company, Fund Management companies will be able to vest more in the chinese Financial System just one important point is that this was a previously announced reform there is nothing really new here it is going to be seen as a feelgood injection while this optimism is riding high but it is not necessarily the chinese giving in and saying they are going to make any other changes to the Financial System or the way they run the economy here. Thank you for keeping us up to speed, we appreciate that taking us to hong kong as well apple and google have pulled key apps some say the move indicates they are bending to pressure but tim cook said one particular app was being used maliciously to target law enforcement. What are you hearing from asia about this app and how that might influence what happens with the protests . Depending on where you are, companies especially apple, are facing criticism or praise in hong kong, there has been criticism that apple is caving to pressure by the Chinese Government the peoples daily was attacking apple. But in china, the global times, which is a communist party paper today posted praise for tim cook these kind of situations, a lot of American Companies are facing these complicated situations if you contrast the way apple and google are handling the situation with the nba the nba appears to be navigating their dispute with china relatively okay. Not necessarily unscathed. The tone and the nationalist rhetoric against the nba after the tweet about hong kong that it supported when it came to the houston manager has died down. That game set to take place tomorrow is still going ahead. The nba according to some reports have said they are not trying to escalate the situation by not allowing media interviews of players while they are here but at the same time, it is not completely getting kicked out of this market. It is interesting how the pressure comes down on the companies that want to continue to operate in china and hong kong as well thank you for that there is a lot of factors here for investors to consider. Dow jones futures up 270 points right now. Joining me, ceo of commerce Street Capital when you are looking at the response to President Trump coming out saying, hey, it is going great out there. Is the optimism valid . Thats a good question. It reminds me of lucy pulling the football away from Charlie Brown and then he falls on his back again so ill believe it when i see it however, i do think china is dealing from a very weak position and trump is dealing from a strong position i think any expectations we have an allinclusive deal is totally unrealistic. I understand they are focusing on intellectual property right now. I think the real practical thing is that they are not going to solve human rights issues in hong kong and some of these Technology Transfer issues they are dealing with or industrial subsidies. I think it will be really difficult to deal with currency issues and have good checks and balances on that if you are a company waiting, i just think thats a mistake by ceos and they need to find ways to deal with supply chains what do you tell ceos about volatility we are experiencing right now . Retirement savings is all about the long term. You need to turn away and let it go as far as exposure to china and companies dealing with china over the next three to five years is no reason to overweight in my opinion. We are going to the Fourth Quarter now. This gets wrapped up with a big bow. That wasnt the case last year what is your expectation to q 4 . There is down turn bias if weve got bad news come out, we have to overreact things arent as bad, im not worried about a recession. So what, if we slow down, people are worried about and what they are afraid about is a crash. I dont see a crash in the cards right now. Banks have tremendous amount of capital. To 10 of capital six to seven times the amount in 07. Is there reaching on credit and issues particularly on the big banks . Yes, i think well see earnings today and the rest of the week that will surprise people. You think the Bank Underperformance is over i dont know that the public market, it is hard to tell fundamentally, the banks look really good. Im not worried about a lot of margin pressure unless rates go down to 150 basis points shortterm pressure, im not really worried about on the asset side like coamerica dory, thank you for joining us when we come back, a day in court for the maker of oxy con continue and what is in the works to put an end to the 26day worker strike and an attaconk an Iranian Oil Tanker a busy day more when we return. Woman what gives me confidence about Investment Decisions . Rigorous fundamental research. 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. A critical day in court for the embattled drug maker of oxy con continue the maker of oxy contin involves purdue filing for bankruptcy and converting to cash for overdose reversal medicines. The billionaire owners will give millions over three years. Purdue is asking all litigation against it and the family be suspended. 24 states and the District Of Columbia have filed options. That is the issue at hand today. The states that oppose the deal want to continue pursuing against the company and the family well see them kicking off early next year. They dont know whether they should accept settlements. If the company goes into bankruptcy, are they risking not having a session at all . If they dont have enough for settlement, theyll have to liquidate and go through settlement they are trying to scramble and get ahead of that. They say the longer the litigation goes on, the more resources will be drained. They are spending millions a week that is money that could go towards the remediating. Still ahead, end of an era for one of the largest software companies. And the streaming wars rage on Worldwide Exchange is back after this 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. 22 minutes past the hour General Motors is urging the United Auto Workers to agree to around the clock bargaining. Today is the 26th day of the uaw strike the ceo reportedly met with leaders secretly this week for the first time the New York Post says shes been worried talks were off track and there for called a meeting. Stocks to watch today, sap ceo is stepping down being succeeded by Board Members they will be coceos the stock is up almost 7. 5 now. Dont miss bill mcdermot coming up on squawk box. Japan is preparing for what could be the biggest typhoon and battle of the billionaires over charity. Zuckerberg versus bezos. This is trending more coming up when Worldwide Exchange returns. Im Frances Rivera with headlines. Heavy fighting in syria. Turkey has escalated its invasion on the border with air strikes and ground attacks scenes at local hospitals just devastating. The death toll continues to spike. Over 100 kurdish fighters have been killed and nine civilians in southern california, the lapd has issued a response evacuations have been ordered and the city has opened emergency centers. In northern california, pg e has restored services to more than half of the customers affected in japan, a typhoon is expected to make land fall as we head to break, check out shares of roku, a wild week for the stock. Rbc is back with an outperform rating a new price target, 155 rbc says compelling valuations, strong fundamentals and favorable position stock up in extended tdirang 6. 25 . Worldwide exchange is back right after this its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. We have breaking news right now. Oil prices spiking after iran says missiles struck a tanker in the red sea. You can see wti is up. Developing story here, futures surging on up beat headlines and why Mark Zuckerberg says he needs to call jeff bezos you are watching Worldwide Exchange on cnbc. Welcome back thank you for being with us. Im Contessa Brewer in for Brian Sullivan here is how your money and investments look right now dow futures are up 250 right now. President feeling optimistic china News Headlines coming in with some is smiles. That is driving this premarket implied open for the s p up 30 points, up 200 points or more. The big story to watch today is that the u. S. china trade talks continue in washington with a scheduled facetoface meeting between the vice premier and the president. Kayla, what are you looking for today . Reporter we got the white house schedule that says there is that meeting that will happen at 2 45 p. M. The two sides still have a little more work to do we do expect them to have another morning session of negotiations back at the office of u. S. Trade representatives. There was a picture posted on Chinese News Agency in the last few hours that showed or purported to show negotiators in the room talking, shaking hands, standing side by side. China and the United States start new level conversations to address differences in the outstanding economic and trade discussions. Certainly the president when he was speaking to reporters sounded an optimistic tone we are doing very well. We are having another one tomorrow im meeting with the vice premier over at the white house. I think it is going really well. I will say i think it is going really well. So we had a very, very good negotiation with china theyll be speaking a little later. They are basically wrapping it up and well see them tomorrow right here reporter the president was also asked about his seeming request about asking china to look into the biden family and what he believes is corruption with the former Vice President s son with business in china he said china is able to look into whatever he wants casting down the idea that the president was kidding when he said that. That could cast a cloud over negotiations today making smmts to the Financial Times that he discussed the bidens and obtained a whole lot of new information about that. Later using some different verbage with the Washington Post that maybe china raised the issue. Certainly, that will be in focus today as we find out what side conceded to get any progress on trade and whether that is something that will raise new questio questions of foreign leaders clearly discussions of impeach on capitol hill are weighing in to all of this we got new numbers that china went and bought a slew of soy bean and the largest purchase of american pork. How much does that matter in influencing this or is this still just about intellectual property they have been increasing their purchases after this summer halting those as talks slowed down. That is china showing it is good on making its promises it needs u. S. Pork because their hogs are suffering from african swine fever. That support has dwindled in recent months. Certainly ahead of a partial deal, that could be read as china saying we are doing this and we can do more kayla, thank you. Joining us now, michael spencer, chief economy head of Asia Pacific Research at Deutsche Bank this has been described as a potential minideal does the market have reason to celebrate the way we are now with futures up 264 points for the dow . It certainly looks as though there is a foundation here for something you say a minideal or something a little better than that. The market is right to take this positively if this agreement removes the risks of tariffs, that could be a positive for both economies and there for the market it is unlikely any near term deal is going to address any problems the u. S. Has over Property Rights or a Playing Field there for investment it feels like a better investment to start than probably most people including myself had expected we would get. Does this optimism now essentially priced in or how much you are talking about with the property piece of this that could be hanging into the final quarter of the year . Well see what is in an agreement of what we get over the next day or so is in agreement. The issues of Property Rights and the role of state ownership in china is extremely problematic because the two sides see this very differently. Over the last couple of months, the addition to the entity list in the United States of Important Technology firms in china is an issue china will want to see resolved in anymore