Transcripts For CNBC Worldwide Exchange 20240713

Billion in Box Office Sales this year and one of the most anticipated movies doesnt hit theaters until next week Worldwide Exchange begins right now. Good morning and welcome im Courtney Reagan in for Brian Sullivan you know its me because you have Country Music playing its my favorite here is how your money and Global Markets are looking this monday morning stock futures indicating the dow will open just slightly lower at this point and this, of course, you can see the Dow Jones Industrial is down by just 31 right now, the indication but this is as the dow comes off the best day since october 4th, surging more than 330 points after that breakout jobs number on friday morning. And hitting those 50year lows for unemployment lets get a quick check on whats going on in fixed income and look at the bond market this morning. The yield on the tenyear is 1. 822 and the twoyear note 1. 611. Lets check what happened around the world perhaps while you were sleeping here in the United States, the japanese nikkei did post a slight gain by a third of a percent, same thing with the south korean cost. The hang sang just about flat its fair to say and check in on hong kong later in the show. Lets look whats going on in europe, early trade on this monday morning things are slightly negative but not largely so you can see in france were down by about. 2 percent, italy down by. 3 percent, slightly positive in spain other things we have in the headlines this morning, Goldman Sachs preparing to launch a Wealth Management product for the average investor as soon as next year. The ft reports they will offer a robo adviser to individuals with as little as 5,000. Likely something that will come up with conversation with john waldron tomorrow on the closing bell Robert Lighthizer are going to pass a revizzed version of the usmca. They have been meeting for months to try to hammer out a deal but have been unable to narrow differences in recent days the biggest divide is over revising the agreement on enforcement of labor rules. Big tech is back under fire this morning a global body of regulators from the Main Financial centers says big tech to thin tech is raising privacy. Share user data with big banks to prevent unfair competition. Well, developing story overseas that could spell trouble for future u. S. china trade talks. Eunice yoon joins us now good morning, eunice or good evening to you reporter good morning and good evening to you, too, courtney well, you know, the Trump Administration has been trying to curb the use of chinese technology, but it appears that beijing is now hitting back. The Financial Times is reporting that the government here has ordered all state offices and Public Institutions to remove foreign pcs and software within the next three years the policy is dubbed 3, 5, 2 because the apparent goal is to replace 30 of foreign tech in 2020 50 in 2021 and the remaining 20 the following year so analysts have been estimating that this could mean that as many as 30 million pieces of hardware would have to be swapped out. And that that could potentially have a negative impact on u. S. Tech names, such as dell, hp and microsoft. Now the move also comes amid concerns of a tech decoupling, though its unclear how quickly that would happen because even the chinese names that are meant to replace a lot of that u. S. Gear still use a lot of u. S. Components and technology. Also, Chinese Companies are far behind when it comes to software and finally the Chinese Government has pushed these kind of Self Reliance initiatives before back in 2015, for example, it dropped cisco and apple from the stateapproved purchasing list, but still those companies do a lot of business here courtney very interesting. These are things we have to continue to watch especially as it may or may not impact the price of those shares, as you said, this is a little more complicated than it sounds at first blush. Eunice, thank you very much. Well, back to the markets. A big week ahead including the feds latest twoday policy meeting. The expected first trades of oil giant saudi Aramco Overseas Quarterly Results from adobe, lulu lemon and more. Art hogan, thank you for being with us here today this is a pretty big week not to mention that december 15th deadline is very close for what may or may not happen with the u. S. china trade talks eunice brought us interesting information about china saying, look, well take away some of the u. S. Hardware pieces from our commuters, sort of another shot fired so when we look at everything that lines up this week, its a busy week that we usually dont expect to have in december were thinking, wow, we had the jobs number. We can cruise into christmas and start focussing on the new year. You really cant you have a cpi coming out, uk election coming out and the u. S. china trade deal, probably the largest of all those thing as we look at the fed meeting, we know what the fed will do and thats nothing the commentary will be similar but when we look at whats going on in the deadline with china, the president has thrown us into a frenzy as to where do we really stand on trade and does the administration think it would be better to take this all to the election or would would they desperately like to get good news. I think its the latter. I think we need to get something done i think the administration wants to get something done and core graph good news around trade because of the election cycle and get to the december 15th deadline and say were pushing that out because the talks remain constructive. What happens then to the markets . If you think there will be something positive, something constructive, what are the markets expecting . Well, two pieces to that. So the markets expect that so theres some of that good news is baked in and for better news on trade, from this point Going Forward, there will be no escalation. That to generate positive Economic Data, there will be a life time there. A modicum of disappointment in the First Quarter that we get this behind us, this phase one deal and work towards a larger deal but still seeing disappointing manufacturing numbers is probably going to have a market that pulls back a bit but not until the First Quarter. It will take a while to digest this and say, okay, we finally got that phase 1 deal. From here on things dont get worse. Were not worried about escalation, but its going to take a period of time for companies to start making decisions about actually putting capital to use, building plants and the types of cap x we havent seen for about 18 months. Were in december this is a really important time to look at the consumer. Obviously theyre out there shopping i know we spoke before the show started i cant believe its december 9th i feel behind. How important is getting this consumer data continuing throughout the Holiday Season to be strong as sort of this lynch pin for the economy . You know this this is your beat. You know this better than anybody, i think but the consumer has been impervious to a lot of that noise around china the consumer doesnt get hit with the latest tariffs start in the First Quarter or so, and we continue to see the kind of labor numbers we saw this weekend, we have low energy prices, relatively low inflation, quietly rising wages, consumer can sort of battle through all of the things that are really affecting corporate america. Corporate america is saying theres a great deal of uncertainty. Were not going to put forward expenditures the consumer has done the opposite and remains resilient i think that remains the case as long as those things built those thing rts for the consumer, my house is as much as it was worth last year, slowly rising wages, i think it will ride out this storm. I think Consumer Confidence is whats been driving this economy. I think its going to slowly transition sometime next year over to some cap x spending which has been flat largely since the middle of last summer. And i think thats going to be the next leg of this rally the Economic Data probably starts to improve but not to the back half of next year. We had a little bit of a scare last december i think for the markets when things really sort of took a turn for the worse going into that Christmas Eve trading day. Any chance we see Something Like that again no. That was one of the amazing year over year comparison, right . Where were we last year . Nowhere close on u. S. china trade, the fed tightening and talked about tightening three more times this year thats the big delta in between where we were last year and this year the fed eased three times. Theyre probably not going to do anything for a while, but if you were to guess which way they have to go next, its probably more leaning towards ease. I think the bar for them to raise again is much higher than the bar is for them to lower again. Thats the biggest difference. The Economic Data streamed both domestically and globally were a lot different than the Fourth Quarter last year. Were probably in a better place. Everybody i talked to whether Christmas Party or walking down the street, theyre saying is this december going to be like last december. I dont feel like the pieces are put in place to say that. Art hogan, thank you for playing this out for us as we go into year on end. When we come back, more pushback about amazons latest announcement about a real estate move in the big apple. One description of the mass demonstrations in hong kong over the weekend. And later, jeff bezos is warning for Silicon Valley around working with the pentagon a very busy hour still ahead when Worldwide Exchange returns. 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. A more secure diaper closure. There were babies involved. And they werent saying much. Thats what we do at 3m, we listen to people, even those who dont have a voice. We are people helping people. Thats a beautiful shot of Downtown Chicago less than a year ago, amazon pulled out of plans to build a Second Headquarters here in new york city. Now the company is announcing new plans to lease a massive amount of real estate in the big apples hudson yards Frank Holland joins us now is this a reversal not quite a reversal, courtney a brand new decision to come to new york after that fail aid tempt last year that did generate a lot of controversy. Amazons announcement that it signed to lease a plan in manhattan in 2021 has really resparked the debate the failed attempt to build the Second Headquarters in queens incentives are not necessary to a talent rich city like new york city while supporters say this brings a fraction of the jobs that would have come with the queens facility. Aoc tweeted in part, wont you look at that, amazon is coming to nyc without requiring the public to finance shady deals. In february, amazon cancelled plans to build the Second Headquarters they said they would add 25,000 high paying jobs proposal received criticism for lack of transparency in the process and perception that amazon was pressuring cities for corporate handout. The lease is the largest expansion in new york city since february and last month facebook also announced it would move into 1. 5 million square feet of office space in new yorks hudson yards gomt in 2020. New york city has a lot of tech talent and companies are looking for it. There were amazon jobs in this area before as well. Absolutely. Thats fair to point out, too. Its just not this giant partial hq2 that had initially been planned. Yeah. The company has about 3,500 employees here already, so i think people were excited in some cases about the idea of 25,000 workers, high paying jobs coming to the city other people a little skeptical about real estate prices in that area and also the impact of moving in a Corporate Giant and giving them an estimated 3 billion in incentives. There was that and the local area were worried about the infrastructure, the sub waste being able to support that and then what happens to the people that live there that dont work for amazon, pushing real estate prices higher. Exactly. Sort of a lot of discussion points on both sides of this coin but sounds like the discussion is not over with the latest news. Not even close. Thank you for being here with us youll come back later of course. Still on deck, why disney could soon welcome a sixth member to its billion Box Office Club for 2019. Plus, another auto pilot headache for elon musk detail when Worldwide Exchange comes back Investment Opportunities firsthand, like biotech. Because your investments deserve the full story. T. Rowe price invest with confidence. Even after you clean, odors are still trapped in your fabrics. Febreze fabric eliminates those odors. And try Febreze Unstopables with twice the freshscent power. Tackle tough odors with irresistible freshness. La la la la la step up, please. Empty your pockets. Looks like youre all set for that business trip. Youve got your smartphone, laptop, your other smartphone. Woman is this all the devices you have . Your tablet. Seriously . Smartwatch, your backup tablet, and. Woman anything else in your bag . Whatever that is. beeping this isnt working. Introducing Samsung Mobile workspace solutions. With the galaxy note10 with dex software, you can run your entire business on the one device that does it all. Samsung business solutions. On the one device that does it all. 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. A massive demonstration overnight in hong kong one of the largest in months in the chinese territory. Organizers said 800,000 people participated the protest was largely peaceful with just a few incidents of vandalism. We are joined from hong kong with more. Reporter hong kongs antigovernment protesters took to the streets once again on sunday ahead of todays sixmonth anniversary. Organizers estimate 800,000 people participated in the demonstration, which was the biggest since august this year but, we also saw that deep division here in hong kong with prochina supporters rallying on saturday with some of the beijing supporters calling prodemocracy protesters rioters. In the meantime, the Hong Kong Government just reiterated its calls to end the violence and its promise to engage in dialogue in the meantime, the hong kong economy is teetering because of the disruptions stemming from this antigovernment protest and the clashes between the protesters and police. Hong kongs government calling for the very first budget deficit in 15 years and also forecasting 1. 3 of Economic Contraction in 2019 on year. Some of the economists though we have been speaking to say unless the fiscal stimulus coming from the Hong Kong Government is more sizable and targeted, its economy could remain in recession in 2020. Im chery kang for cnbc, hong kong thank you, chery. Straight ahead a deadly volcano eruption rocking new zealand this morning the latest when Worldwide Exchange comes right back woman friction points, those obstacles that limit a companys growth. I try to find companies that turn these challenges into opportunities. Its these unique companies with Creative Business models that will generate value for our investors. Thats why i go beyond the numbers. Grnchts the house impeachment investigation enters new days after nancy pelosi says her party will draft articles of impeachment. Nbcs tracie potts joins us now from washington. Good morning, tracie. Good morning, courtney. The process begins today an important day in considering impeachment. Both sides, democrats and republicans for and against will present their final arguments to the Judiciary Committee. Then that committee will begin considering and even writing articles of impeachment. Reporter this morning, lawmakers for and against impeachment will present their case to the Judiciary Committee. There is overwhelming evidence that the president sought to coerce ukraine into interfering in our election. I think it was acting on concern about ukraine being the third most corrupt country in the world. Reporter members of the Intelligence Committee will break down their report, findings from the evidence and more than a donz witnesses, then the Judiciary Committee will begin discussing what articles of impeachment to consider the chair says those articles are charges may be ready this week. We have a very lock case. The case if presented to a jury would be a guilty verdict in three minutes flat. Theyre going to impeach not because they have the evidence but because they hate the president and want to undo the election. President trump hinting his personal attorney Rudy Giuliani just back from ukraine may weigh in. Hes going to make a report, i think, to the attorney general and to congress. He says he has a lot of good information. Reporter but the white house has opted not to participate in these final hearings so, here is the timeline if in fact they wrap up that process of writing the articles of impeachment this week as expected, we could be looking at a full house vote on whether to impeach the president before the holiday break. Courtney tracie, what are some of the key points of the case that could be made . I know theyre still in the process of drafting. Right so, the first key point is what types of articles are we looking at obstruction of congress . Or abuse of power . Bribery has been brought up. What are the charms actually going to be. Then the other big question, courtney what are they going to be based on . Theres this big discussion going on within the Democratic Party of whether they want to narrowly focus on the ukraine phone call or whether they want to bring in and try to show a pattern of abuse of power by bringing in some of the information from the Mueller Report on Russian Election interference. Tracie, i know youll keep us up to date as these developments unfold thank you very much. When we come back, the troubling trend rocking some of the countrys biggest mutual funds. And why this could have a major impact on your money stay tuned announcer todays big number 36 . Thats how Many Americans eat fastooevyd fd eray [ ] looking to simplify your skin care routine without sacrificing results . Try olay total effects. One dose provides more vitamin b3 than 50 cups of kale and improves 7 key areas of visibly healthy skin. Try olay total effects. Demand has never been higher for what we do. Creating compelling, engaging, and informative content and experiences. With this merger, viacomcbs will be one of the largest and most influential content creators in the world. I know we can deliver on the full potential of this amazing new company. The bulls looking to build on the momentum of fridays jobs rally. Jeff bezos out with a new warning over new tech doing business with uncle sam. The risks he says a failed union between the two sides pose for the country. And the return of the peleton girl how Ryan Reynolds is tapping into one of the most talked about ads. All that and more as Worldwide Exchange rolls on welcome back to Worldwide Exchange im Courtney Reagan in for Brian Sullivan this morning. Thank you for joining us lets get a check in on the other headlines today. Phillip mena is in new york with the latest good morning, phillip. Good morning. We have breaking news for you from new zealand where at least five people have died after a volcano erupted. About 50 people were on or near white island when this happened. Police say 23 made it to shore and five of those people died from their injuries. Officials have not confirmed the number of people unaccounted for, but its believed to be about two dozen. Emergency crews have been unable to reach the island but Police Confirmed there are tourists among the injured and the dead but they have not released any information about the nationalities of those victims. Royal caribbean cruises tells nbc news they had guests touring the island but they didnt share any additional details. The fbi is expanding their investigation at the naval shooting at the base that left three people dead. They say the shooter was the Second Lieutenant in the Royal Saudi Air force and legally bought the gun he used in his shooting rampage. Well, there is a new queen of the universe. South africa was crowned the winner of this years Miss Universe pageant and beat out 90 women from across the globe. Ms. Puerto rico and ms. Mexico rounded out the top three. Courtney, back to you. Thank you, phillip. Well look at how your money and investments are looking right now as were half way through this 5 00 a. M. Hour. Stock futures are pointing to a slightly lower open but just marginally so. Remember, we had that nice rally on friday after the jobs report. The Dow Jones Industrial averages indicating we would open lower by 20 points if that opening bell sounded now the s p 500 down just marginally as well as the nasdaq. Look at the bond market this morning. The yield on the tenyear sitting at 1. 817 we have been relatively close to that mark now for some time. The yield and the two year is 1. 609 were going to check on the asian markets. You might have missed the action while you were sleeping overnight. We are positive largely in asia with the south korean kospi higher by a third percent higher same as the japanese nikkei. The hang seng is just about flat as we have been following whats going on in hong kong with the continued protests lets get a quick look at whats happening in early trade at least in europe. It is slightly lower for most of the major averages, although spain does seem to be higher by. 2 of a percent at this point. Its a very big week ahead for trade really around the world. And making headlines, Francis Santa fee is buying u. S. Synthorx more than 170 premium move is aimed at strengthening the french pharma line of drug for cancer shares are just about flat at this point synthorx are unchanged pg e settlement is presenting a new challenge for bondholders looking to potentially take over the company. Wall street journal says the bondholders are evaluating the impact of the settlement on their plan to restructure the company in bankruptcy court. That could sway their plans as they prepare to go to court to battle over billions in debt payments against the electric company. New troubles for tesla after another incident, an accident, involving the companys auto pilot system man driving a model 3 in connecticut this weekend slammed into the back of a state police car on the Highway Police say the driver told them he put the car on auto pilot because he was checking on his dog in the backseat. No one was seriously injured in the incident thank goodness, but of course that does just add to the questions about that selfdriving technology and how ready it really is amazon Ceo Jeff Bezos is offering a warning about the potential risks for the u. S. If Tech Companies decide not to do business with the pentagon. Speaking at the annual Reagan National Defense Forum in california over the weekend, bezos discussed the backlash tech firms have faced for going after lucrative Defense Department contracts my view is if big tech is going to turn their backs on the department of defense this country is in trouble. That just cant happen and so we have to and its the senior leaderships team to say to people, look, i understand these are emotional issues thats okay. We dont have to agree on everything, but this is how were going to do it we are going to support the department of defense. This country is important. Joining me now cnbc contributor of the American Enterprise institute jimmy, thank you for joining us here this morning. Good morning. It seems like bezos comments perhaps targeted at google after they decided to end their deal with the u. S. Over the drone videos that used Artificial Intelligence and getting some of that backlash, of course, we know that amazon did not win the contract that jedi contract. Whats he trying to do here . Is this a political maneuver trying to play both sides of the argument for the u. S. Government because we know amazon is contesting the fact they didnt win that big deal. Right certainly i think amazon would like to be seen as a patriotic, National Champion Company Going forward. They had a lot of problems with the Trump Administration i think more broadly, bezos is making a point if big tech overall doesnt want to be regulated, heavily regulated because theres new urge to regulate these companies, they dont want to be broken up, they want if they want to be seen as National Champions, they have to do business with the pentagon if they dont do that, theyll be subject to far more cries to be regulate and unbroken up. Its an untenable position for americas Largest Technology firms to not work with the Defense Department bezos is a smart guy, he realizes it. Thats what he was saying last night. Its very interesting because we just dont often hear from jeff bezos so to hear from him and hear from him in a stance that was fairly firm at least the words that he used, i thought, was quite interesting. No. Definitely listen, the president seems to have a problem with jeff bezos and amazon so obviously has to be careful about what he says, but this is exactly the message he should be saying both on behalf of amazon and big tech overall they have a big problem with washington, d. C. And its going to get a lot worse if viewed as being antiamerican Going Forward. So, i mean, its funny that amazon shares, of course, arent moving much on this and losing that big contract with the pentagon perhaps was less truly about the money and more about sort of the pride and winning this deal. Do you think that the money is always good. Money is always good. What was it, 10 billion over 10 years. Think about all the money that amazon has and the enterprises its building in both cloud and of course the retail side that it has going on here so really what is at stake here for amazon when it comes to working with the government from a business standpoint, beyond just trying to be patriotic, doing the right thing, to prevent the government perhaps maybe from digging into them as an antitrust situation . Well listen, big Tech Companies overall have a problem, you know, with both sides of the aisle, democrats and republicans. Amazon has a particular problem with republicans and i think listen, in a way sort of whats good for big tech will be good for ammazon if they put forward the image, were not the people invading your privacy, were not the people where foreign governments use our platforms to interfere with elections, we are what you thought we were a few years ago, the crown jewels of the economy. And if america does well, well do well. And if we do well, america will do well. I think this is really head speech last night those comments were a longterm investment in our fellow americans seeing them as big pluses for the economy so, please, dont regulate us to death. Well, well move on to another topic here for you, jimmy. Unprecedented trial that could test the federal governments role in deciding the future of a Major Corporate coalition of 13 states and the district of columbia led by democrats attorney general are suing to block the 26 billion planned merger between t mobile and sprint the deal that would combine the countrys third and fourth largest cellular providers federal antitrust officials all appointed by President Trump already approved the deal earlier this year. Some pretty big potential implications here not just for this deal but Going Forward. But i guess well start with this deal. What do you think this could potentially mean for the outcome of sprint t mobile. Yeah, listen. Obviously this isnt a done deal and states attorney generals have been looking at things on antitrust very differently than what we have seen in washington. Im always asked, whats going to happen if democrats take the white house and congress, if Elizabeth Warren is president. I would look carefully at whats happening at the state level with these states attorneys, not just with antitrust but also issues such as privacy law, how were going to regulate sort of the sharing economy with labor regulations, its a much different world at the state level. What youre seeing happening there may be a pretty good indication of what you may see in washington, d. C. If we have a change of political control in washington i mean, how closely do you think deal makers or Even Companies looks to potentially do some deals are watching these talks . What could be the broader implications for future mma . For a number of decades in this country we have been very pro mna. We havent stopped big antitrust actions this is listen,ly look at this very closely. This is exactly the sort of thing that could indicate a see change, is really going to approach mergers and antitrust. I think this is a pretty big case. You mentioned previously Elizabeth Warren and sort of her proposals about the idea of blocking some of these big deals. Theres still many players in the democratic field how seriously does the market, do Companies Need to be listening to some of these proposals, which would really change things very drastically from where we are right now. I would look less at the specific details of any proposal but more directionally where its going and both among democrats. Listen, theres no friends here on republican side theres just a lot more skepticism of big companies. Theres skepticism whether they care about our privacy, skepticism about whether theyre squashing innovation so, were going to see probably more skepticism and more actions both at the state level and i think eventually at the federal level if democrats take power. So were going to move on to this other topic with you, jimmy. Big bets on some of years most High Profile Companies are being big flobs from weworks to juul firms and 401 k s probably yours have faced steep losses on these investments. Cnbc diedra bosa has more on these unicorn write downs. Lets listen. Startups have been getting funding from some of the biggest mutual funds this year some of the highest flying names have flopped, Institutional Investors Like Fidelity left with major valuation markdowns as well. According to data from pitch book the top ten mutual funds collectively held wework shares worth nearly 600 million in the first half of the year fidelity, vanguard and Jackson National are just some of the names that placed lofty valuations on their holdings only to have to mark them down as much as 75 after the companies botched ipo attempt another unicorn flop was juul once valued at 38 billion in the private market fidelity and American Funds held shares in the startup valued at nearly 1. 3 billion. According to fund disclosures, that was marked down to less than 070 million after juuls valuation was slashed. Ride sharing is another area drawn the interest of mutual funds both as private and public companies. Put capital into several of uber later stage rounds fidelity upped its stake in uber since it went public and now the second largest institutional holder of the stock, according to fact set. Fidelity also led lyft series i round at 14. R5 billion. That company now has a market cap of 13. 4 billion question is, do some of these high profile markdowns make mutual funds reconsider their unicorn strategies back to you, courtney. Thank you very much thats the perfect question. So obviously i know these companies do an awful lot of research and homework trying to make their investment decisions, but they have gotten burned by the high profile names that diedra just went through for us, jimmy. Does that largely change their strategy Going Forward i dont know. Listen, as long as economy continues to generate these sort of pretty Exciting Technology companies, theres going to be a huge incentive to want to participate. Thats what were eeing. Theres also a regulatory incentive to participate one reason these companies have been sort of staying private for so long and these evaluations have been going up is because of government regulation at the end of the obama administration. It would not surprise me if, again, democrats take control. Theres a lot more regulatory impulse there that they may take a look at whats going on with these unicorns, these big valuations which overshot and perhaps wonder whether these Money Managers should be investing in these companies, whether they should be allowed to stay private for so long and not be subject to public scrutiny i can see that as an area sort of the government will take another look at that. Its just so interesting if you look at each of these companies, wework, uber and juul have one large identifiable problem but its not the same problem from company to company. No. Listen, these are still relatively Young Companies we know with big ambitions and in these cases, at least in two of these cases theres sort of a big regulatory issue where they have a problem with government you know, uber, to pick that theres a problem with labor law, how should these drivers be classified as employees and contractors. Theres sort of two Big Government issues they have to deal with. And those sorts of issues affecting these unicorns Going Forward, again, if washington decides it wants to regulate more heavily youll see a lot more of that. Not to mention that Safety Report that uber put out that was pretty shocking numbers. That was noticed in Washington People noticed that Safety Report. I dont know how you couldnt notice it whether youre a regulator or rioter for goodness sakes. That was pretty eye opening. Thank you for being with us. Well have you back some time soon. You bet, thanks. Coming up, disney absolutely dominating the to 19 box office. Details on the record breaking year the studio is having with its stacked lineup of movies when Worldwide Exchange returns. For the holidays you cant beat home sweet home. We go the extra mile to bring your holidays home. Yes im stuck in the middle with you, no one likes to feel stuck, boxed in, or held back. Especially by Something Like your cloud. Its a problem. But the ibm cloud is different. 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Donate now at stjude. Org or shop wherever you see the st. Jude logo. Look how beautiful that tree looks. Good morning welcome to Worldwide Exchange if youre just joining us. Well find out what else youll be talking about today top trending stories Frank Holland is back with those. We have something we were talking about last week but a new twist to it. So the main character from peleton polarizing tv ad found a new home monica ruiz, the peleton wife was thrust into the spotlight. Her character is gifted a bike by her husband and then embarks on a yearlong life changing journey. They missed the mark with some calling it offensive and actor Ryan Reynolds casted ruiz in an ad she appears to be playing the exact i love this same character out with friends having a few drinks she does such a good job in this ad. Such a good job how fast did Ryan Reynolds and aviation gen move to get this woman to put this ad together to get it out immediately. Was a week and a half, ten days maybe Something Like that. At the end of the ad i think a lot of people notice shes not wearing a wedding ring i dont know if thats on purpose or not. I didnt look that close. It was a great play on something that went viral for the wrong reasons and spinning to your advantage. Right so interesting its getting so much attention i know some people on twitter writing, i dont drink gin but im going to buy this bottle because the commercial is so good. Youll go back and see the peleton ad they may get positive backlash. Is all news good news i dont know my friends were divided about the peleton thing. I have avid users didnt see the controversy and others of us are like, i see it any way. You have more for us, frank. Definitely have more. Disney is on the verge of breaking another Box Office Record a heart beat away to cross the 10 billion mark at the global box office. Disney is behind several moving including avengers end game, lion king, toy story 4 and aladdin the Company Still has the release of star wars the rise of sky walker, theres no doubt disney will set a new record and im very excited about the star wars movie. If you think about it, these Box Office Numbers give you a sense of how disney plus will do Going Forward. People want two see these movies in the theater, imagine if they get the chance to watch them on streaming Services People will sign up if these movies continue to be popular. I think of families with young kids, thats such a good market for disney plus, buying the dvd or buying it on streaming one time just over and over again just put it on repeat, put disney plus on and let it go. But look at disney shares up almost 35 year to date. Investors rewarding this Box Office Performance im not a big star wars gal, but i understand its a big deal. Its huge. It also leads to a lot of product selling, some of these top toys for the holiday are star wars related. I know youre not into it, but one of the biggest misses this Holiday Season was a baby yoda toy i dont think theres an fushlly baby yoda toy out. Its cute i dont know anything about it but its cute. Super cute. Star wars the rise of sky walker only a few weeks away and cocacola is cashing in on the hype releasing limited edition bottles. The light sabers theyre holding up light up any time you touch the label. The startup behind this design says the builtin battery work for at least 500 activations you have to get them from singapore. Cocacola is producing 8,000 bottles exclusively for singapore. You notice some collectors will make that trip thats a cool thing. Oh, for sure. Watch ebay for someone to buy them and resell them im sure. I wonder how much they cost. I dont know. But cocacola has done a great job with the marketing labels. People bought cases with their name, friends names and thought it was cool. You drink the soda, what do you do with the can k . This you would hold on until it stops working but 500 times thats a lot frank, thank you. In sports Los Angeles Rams hosting the Seattle Seahawks for sunday night football. The seahawks getting on the board first with a field goal. The only points scored during the games first half. The rams offense battle the birds up 213 by halftime. L. A. Hold that lead. The rams go on to beat the seahawks, 2812. On deck, the record rate at which investors are pulling money out of stock funds amid the markets record run plus, wall street placing bets on where the money will be in 2020. And its not in u. S. Equities. Detail on that when Worldwide Exchange comes back introducing a razor that works differently. The Gillette Skinguard has a guard between the blades that helps protect skin. The Gillette Skinguard. Its time for the executive recap. The headlines you need in 60 seconds. Congressal democrats and the Trump Administration are report lid nearing a deal to pass a revised version of the usmca according to the wall street journal. The two sides narrowed their differences over key sticking points in recent days. The biggest divide is over revising the agreement on the enforcement of labor rules a priority for democrats. Wall street is betting that International Stocks will top u. S. Based equities next year. Since 2010 the s p 500 is up more than 180 while the ishares msciacwi, got that one, index, that is up just 18 several investors and strategists tell cnbc they feel the global stocks are ready for a comeback next year they sited a potential trough in Global Economic growth as world Central Banks take up more stimlative measures. Tesla ceo elon musk could face a retrial over his comments about a diver involved in the 2018 cave rescue of a thai soccer team. They told the uk mirror he will seek another trial in his client defamation suit against musk they decided that musk didnt defame the man by calling him pedo guy on twitter because he didnt specifically name him in that tweet. Investors seem to think 2019 has been a good time to take the money and run. Amid the markets continued climb to record highs, according to the wall street journal. Sited data from refintive libber individual investors are fleeing stock funds at the fastest pace in decades a record 135. 5 billion has been pulled from the u. S. For more on this, im joined by chief equity Market Strategist phil orlando what do you make of this pulling a lot of money out of the market, investors losing confidence in the bull run. This is the most hated rally in the history of civilization if we were having this conversation a year ago, with the stock market the midst of a 20 collapse, investors telling you with absolute certainty were going into recession last year that didnt happen. Now theyre thinking were absolutely going into recession this year, if not absolutely the beginning of next year, none of those things are going to happen our proprietary recession dash board suggesting that the earlier u. S. Economy is at risk for recession is middle of calendar to 2021 were up 35 our forecast for this year was 3,100 on the s p were there. Were looking at a 3,500 level on the s p fully discounting next years earnings so our view is that this market is going to continue to grind higher investors recognize the economy is not sliding in recession. So, then you would still be invested in the United States. Youre not saying this rally is over at all. What about the rest of the world . The rest of the world has clearly underperformed we think theyre in a better place today. Now, if you look at, for example, emerging markets. An area that looks interesting if we can get this china deal consummated over the course of the next few weeks that will make emerging markets look much more attractive. If we can get the brexit situation resolved over the course of the next couple months, that will potentially make the uk and europe more attractive so, there are some things that could happen that will make Certain International markets look more attractive, certainly the valuation is more attractive than the United States and so were warming up into those areas. So obviously fridays jobs number really strong, much stronger than expected we cant continue to see that kind of job growth when we have unemployment at 50year lows where are the workers going to be coming from should we not be disappointed if those job gains fall back in the pure number the nonpharm number . 3. 5 , the rate of unemployment is at a half century low. Thats absolutely true but there is still slack in the labor market the reason we know that is because the spread between the u 3 and the u 6 the labor impairment rate. The market is hit, the spread between those two indicators are 2. 5 were 3. 5 and 4 we think it could grind down towards 3 looking out over the course of the next year or so. Were not going to do 307,000 every month or do 200,000 give or take over the course of the next year. Wow thank you phil orlando for being with us here today we have a big week ahead help us continue to watch that if you will. Well, thats about it for Worldwide Exchange this morning as futures are slightly lower here with several hours to go until the opening bell sounds for a new week on wall street, the dow is lower by just about 11 points at this moments. Squawk box is going to start right now. Its a sorkin version of squawk box. Good morning a busy week ahead on wall street from the feds meeting to the moving tariff deadlines, to the return of andrew ross sorkin, what investors need to know straight ahead. Amazons jeff bezos speaking out in support of pentagons contract as his Company Faces new backlash over opening offices in new york city. And a new report says china is cracking down on foreign Tech Products its monday, december 9th, 2019 and squawk box begins right now. Good morning, everybody. Welcome to squawk box here on cnbc were live from the Nasdaq Market site in times square im becky quick along with joe kernen and andrew ross sorkin. Well start with the markets this morning remember, friday was the best day for the dow since october 4th. The markets surged more than 330 points after that breakout jobs number, much better than had been anticipated check out the u. S. Equity futures at this hour by the way the gains on friday were enough to erase all the losses we saw earlier in the week the dow, the nasdaq and s p 500 all riding threeday winning streaks at this point. This morning modest declines, staff futures down only by 11 points s p futures down by less than a point and nasdaq off by 3. 5. Treasury yields taking a look at that because we also say