Abandoning another investment at a loss Worldwide Exchange begins right now. Good morning, welcome im Courtney Reagan in this morning for Brian Sullivan live pictures from the top of the rock currently 56 degrees in new york it will get up to 60 degrees 15 days until christmas. Hope those ice skaters are prepared there at 30 rock. Lets get you a check on futures. Blue chips coming off their first downed day in three sessions pointed down to an open lower by 120 points we have a number of hours before the bell sounds. S p 500 down about 12 and nasdaq off about 36 points at this moment looking at the treasury market the 10year has been around 1. 8 right now. Thats where we remain food, 1. 842 the twoyear is at 1. 87. In asia, we have a mixed picture, the any kay lower and hang seng down 0. 2 . Shanghai composite positive and the kospi up about half a percent. Among todays top stories, lets take a look at auto sales in china, falling for a 17th straight month in the month of november down 0. 6 on the year. More than 5 in september. Well stick with china consumer inflation ticking up to an eightyear high last month as pork prices continue to skyrocket. Chinese imports of american soybeans increase 18 fold compared to the same time last year trade talks continue to move forward. The purchases have occurred through specific agreements. Falling outside normal trade canals th channels up to 8 . Officials set to discuss the usmca that could clear the way for a vote before the end of the year, so a new version of nafta. The House Speaker said she expects the final agreement to be set today investor attention turns to the fed. They are likely to hold steady after three consecutive cuts earlier this year. Joining me now, our cnbc contributor. Joining us here on the east coast. Any expectations out of the fed beyond the status quo, holding where we are i think you are right this is in stark contrast to where we were a year ago a year ago, the fed was forecasting that they were going to raise rates three times they actually cut rates. This stance by the Federal Reserve will be interesting to see how powell sets up for 2020. We have the ecb this week. A lot of central bankers continue to push on and there for, we see constructiveness we have seen a lot of red in the markets. I think the red i want to talk about is in santa clause the rally is in tact as long as we have something positive after the december 15 conversation or deadline telling us the santa clause rally is like christmas to new years. Those are typically lowvolume times. That has been front and center what is behind the scene is the stance you look at the treasuries and all the movement has been by and large due to the fact that rates are staying low. You look at the 10year note of 180, 181 like it is right now. In comparison to the german boom, that 10year note is hard to believe it is 2020 almost and here we are with a sub 2 10year. It is interesting that you say the fed is behind all of this if you think about the timing we have the fed meeting now and this december 15th deadline. If you are chairman powell, what is your calculus to figure out what your message will be to the market when you have this huge uncertainty. What he did and ill give a kudos, he got in front of it if we dont get this december 15 trade tariff deal, this phase one deal, the market pulls back. The market goes back 100 in the s p 500. 3 still above the highs from early this year. There is a cushion and pillow. We have seen chairman powell deliberately did that. When i think about the december 15 deadline and whether we get these new tariffs or not. How helpful is it . If we dont get them, did it really help anything or keep things from getting worse . Is. The tariff is the focus but think about what started the problems here. The fact that we wanted these tariffs to be implemented to change the intellectual component. That is not talked about enough. We started with tariffs, i think we have to end with tariffs. What is interesting is the data. The data out of china is showing we have the stronger hand. We saw a jobs jonumber we saw larry kudlow talk about how great the u. S. Economy is. That is in start contrast to the china isi china situation. Are you looking at things in china like the customs data that show maybe we have an upper hand there. Auto sales overnight. There is a lot to point to we have to remain focused on the u. S. Accounting. Everywhere i go, i am seeing strength im seeing cranes in the air i think we are in a good spot. The data is starting to support that that is helping markets heel an move forward the jobs market stronger than we expected. That pace may not be able to continue if you look at certain sectors like manufacturing some noise with the gm workers comping back what about in general . What do you think there . I think manufacture piing ine u. S. Has changed if we look at one of the sectors we focus on and is still revealing strength, it is technology we talk a lot about technology it has been two years. Look at the faang stocks you take apple out and maybe facebook, they are still attracting assets. We have to stick with the themes a lot of people talk about the dog and the dow. Not so much. I think youll see the themes carry over to 2020. So winners are going to win maybe like the Ohio State Buckeyes i wish you the best of luck you as well merry christmas. Thank you for being here a former manager at boeing is speaking out. He says he warned the company about problems with the 737 max in the months before the two crashes that forced the grounding of that aircraft Frank Holland as more. This former manager said he flagged problems and worried a push to increase production would lead to critical mistakes. He testifies before Congress Tomorrow in an exclusive interview, he described the conditions at boeings plant. What words would you use to describe that factory at that point . Dangerous unnecessary. Taking unnecessarily risk, chaotic, disarray. He says he sent an email to the general manager of the max program in june last year four months before the lion air crash saying he would be hesitate for the first time in his life to put his own family on the plane. He forced boeing to shut down operation of the plant boeing said, quote, although he did not provide specific information or detail about a particular defector issue, boeing took his concerns about the production disruption seriously. Before testifying, he was requested about a letter he received from a former employee saying that letter raised good concerns but it is not clear if it was sent from pearson thank you for bringing that to us. When we come back, a first on cnbc interview with former trump confidant scarimucci shares of stitch fix and remo about apple tech. More after this break. D back. D back. Especially by Something Like your cloud. Its a problem. But the ibm cloud is different. Its open and flexible enough to manage all your apps and data securely, anywhere, across all your clouds. So it can help take on anything from rebooking flights on the fly, to restocking shelves on demand, without getting in your way. Sfloo leaders in the world of politics and business descending on abu dhabi for the 2019 salt conference we join dan murphy there live. Salt is an invite only conference the leaders ive been speaking to have two things on their mind that is china trade and u. S. Politics i asked the president on the counsel of Foreign Relations what he thought the biggest risk facing the u. S. Economy in 2020, no surprise to see trade on the top. The biggest threat to the economy is the president s own trade policy the tariffs hes putting on, his attack on the World Trade Organization this is probably taking half a point or more off of americas gdp and off of global gdp. Also what that suggests if he ever wanted, he could pull back and ease up on some of the tariffs. That in and of itself would give a boost to the american and Global Economy the reality is, the new deadline on those china tariffs is coming on december 15 investors here want more clarity about what the u. S. s next move is going to be certainly a big question mark for now. I had the opportunity to speak with Anthony Scaramucci himself and asked him to react to the latest impeachment headlines we are hearing. Hell be the third american president impeached. There is a sadness to that, frankly. Even though ive broken from my support of President Trump i am an american i want to see the president do well i want to be less partisan about that when you hear that, and he will go through that process of impeachment now, i think the market is sort of saying hell get acquitted in the senate. You have to be very careful. Once that water fall starts and the president is in the barrel heading for the cliff, so to speak and there is more information. That water fall of information cascades, it could be damaging to him and his reelection prospects. Ive said this often, he may not be running for reelection come november Anthony Scaramucci also telling me he believes Mike Bloomberg is currently the best placed democratic candidate. He said anything could still happen at this point you spoke to mr. Haase and scaramucci i think bob dimon. What did he have to say . Thats right i asked him about another key risk event for Global Investors and that is what is going to happen at the uk election. The brits go to the polls later this week this an election that will determine the outcome of the election bob dimon believes Boris Johnson is going to be able to form a commanding majority and get brexit done by the end of january. That could be significant for investors. Clearly that has been impacting asset an currency markets. Currently a big issue in the uk and around the world it has been there has been uncertainty and surprises along the way. Well be paying attention. Dan murphy, thank you very much. Still on deck, why a major Real Estate Developer is looking at teens for turn around in our nations biggest malls and how many people are expected to fly come in Holiday Travel season. If you are one, you are not alone. All of that and more as Worldwide Exchange rolls on. Prescription eyewear can be really expensive. But heres a secret. Glasses dont actually cost that much to make. But surprise especially when you design your own eyewear and then sell it directly to your customers. Like we do. Oh hi, were warby parker. Our glasses start at 95. Including prescription lenses and the best part, you can try 5 pairs for free at warbyparker. Com so servicenow put your workflows immhm. Cloud, huh . Your employees must love you. Thank you. 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. Lets get a check on some of the big stocks on the move this morning. Stitch fix revenue rose 22 . The number of active clients rose 16 shares soaring higher than 10 it could be set for the best performance day in six months. Coming up later, stitch fix founder and ceo will be on squauchl ali for a first on cnbc interview. Shares are higher after disclosing a stake in the company. An sec filing did not declare whether the stake will be active or passive the fund has had a banner year up more than 50 and chewy reporting a smaller than expected revenue loss the on line retailer is raising revenue guidance for the year. Lore today by about 4. 5 but up 8 from the ipo in june. Still to come, we are live in washington where the house is expected to unveil at least two articles of impeachment against the president today. Taking festive to a whole new level. The house that is setting the record for the most decorated Christmas Trees. Stay tuned, you are watching Worldwide Exchange on cnbc from an everyday solution. To one that can take on a bigger challenge. We are solving problems that improve lives. sure, the contents easy. But then you have to connect, download, edit, reformat, output, save, send, upload. Still uploading. And maybe eventually post. This isnt working. Introducing samsung business video solutions. With the galaxy note10, you can shoot, edit and post thumbstopping videos, all from one device. Samsung business solutions. In washington today, democrats are expected to bring articles of impeachment against President Trump. Tra tracie potts has more from Washington Well now know the direction democrats are headed we are told there is going to be one final meeting of lawmakers to review these articles before making them public there is no condition the committee is expected to announce formal impeachment charges against President Trump this morning we have identified two different patterns of misconduct that need to be a part of any article that is written. Overnight, five sources told cnbc those charges are expected to be abuse of power and contempt of congress it is a disgrace to our country. It is a hoax and should never be allowed to happen again. The announcement comes after a contention hearing where both sides laid out their case. Impeach a president 63 Million People voted for over eight lines in a call transcript is ba lony this is checking all three boxes. Coming off finding mistakes but cleared the fbi of political bias for spying on the Trump Campaign during the russia investigation. We should have been fired if we didnt investigate this both sides should be held accountable. Ordering 40 corrective actions based on that report now, all of that was related to the origins of the russia investigation and how it got started. President trump, by the way, turns out is meeting with the foreign minister of russia at the white house today. You mentioned there is one more meeting this morning. What happens after that . How does the time line play out for us after these articles clear the committee, the full house still has to vote on them. This is not a final, final step but pretty significant once the full house votes, thats it. The president has been impeached or charged with these crimes that is expected to happen before the winter break next week thank you coming up, this mornings top stories including head lines and mall rats. There could be a bright light. Diana is live in phil. Are you the mall rat i am so not but there is a specific shopper that is going to save brick and mortar retail. And there is a candy connection. Ill explain coming up next. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Wat t. Rowe price, hundreds of our experts go beyond the numbers to examine Investment Opportunities firsthand. Like a biotech firm that engineers a patients own cells to fight cancer. This is strategic investing. Because your investments deserve the full story. T. Rowe price. Invest with confidence. Stocks losing steam as investors watch trade talks and a fed meeting. Softbank scaling back risk after one startup and high profile investment miss steps and the return of the mall the one group that could breath life as they fight for survival. You are watching Worldwide Exchange on cnbc. Welcome back, i am Courtney Reagan in for Brian Sullivan thank you for joining us let me give you a check on the morning headlines. Phillip mena is in new york with the latest good morning. Fear continues to grow this morning for the fates of tourists including nine americans on white island off thecoast of new zealand when a explosion happened five people have died, eight are missing. Hopes are fading theyll find any signs of life. Dozens of people still hospitalized flu season is off to full swing. The cdc is affecting millions of americans. Already seeing about 1. 7 million cases with the majority in southern states. So far, there have been 16,000 flu hospitalizations and over 16 deaths including children. Expected to hit its peek between now and february and plenty of time to still get vaccinated a german couple has broken a record for the most Christmas Trees crammed into one home. 350 total each decorated from top to bottom. They hope to do 500 trees next year this might be the most festive fire hazard on earth i wonder what their electric bill looks like and if they have to plug and unplug it each night. Griswalds here is how futures are looking half way through 5 00 a. M. Hour. The dow jones down more than 100 points, s p 500 off almost 11 and nasdaq down by about 36. We saw stocks fall off yesterday as well. Lets look at the bond market. The 10year around 1. 814 twoyear at 1. 611. The asian markets overnight. We did see a slightly fixed market the kospi did put up the biggest gains, higher by about half a percent. Nikkei down marginally and the hang seng down about 0. 8 . European markets are down across the board. Germany down more than 1 at this hour. We are continuing to watch the developments in what may or may not happen with brexit Going Forward this week. Among todays top stories. Apple is asking the federal report to continue monitoring two former employees accused of stealing trade secrets from the tech giant arguing the chineseborn workers were potential flight risks after being arrested while heading to the airport on their way to china they say there on their way to visit family alphabet is adding an acclaimed biology, the third woman on the companys 11person board. Saying arnold brings incredible academic and expertise soft bank selling its stake in wag back to the company and giving up two seats on its board. The move by the vision fund comes amid scrutiny among unprofitable startups like wework and uber. Those were a bit more highprofile than wag. If you think brick and mortar are dead, think again joining us from downtown phila