Transcripts For CNBC Worldwide Exchange 20240714 : vimarsana

Is reported. Score one for mr. Jamie diamond. A cnbc exclusive report of just how close Jp Morgan Chase is to winning the top advisory role, one of ifnot the biggest ipos in history it is monday, september 9th and Worldwide Exchange begins right now. Good morning, good afternoon and good evening and welcome from wherever in the world you may be watching us im brian sullivan, happy monday everything going on in the world, could this be the week that our stock markets here in the states hit new record highs . Dow futures theyre up right now, about 50 points the dow and the s p 500 are less than 2. 5 from their alltime highs. The nasdaq just under 3 from its alltime highs now, the small cap russell 2,000 still down by about 13 from its 52week highs, but the major averages, they are getting close, as stocks have gone up, bonds have come down a bit yield is ticking up just a bit 1. 59 . You got japan gaining half a percent and the domestic Chinese Market also rising now, europe right now not moving a whole lot despite some breaking Economic News just moments ago from the uk that its economy rose at its fastest pace in six months. Thats likely going to come as a surprise to many given the political crisis there i guess its keep calm and spend on you could see kind of a flat market around the world. So speaking of england, lets kick it off and welcome in your first guest of the morning and of your trading week, and that is patrick armstrong, cio. Before we get to our markets here, are you surprised that uk gdp coming in at the fastest pace in half a year given everything that is going on in your country definitely surprised. A lot of head winds for the economy. I dont think its a Sustainable Growth were going to get, but its the political head winds may set to left by the time we get into the fourth quarter. I dont think its likely. The election that will come before the end of october or in early november i think a Hung Parliament is a likely outcome there. The uncertainty plaguing the uk market we have to deal with the rest of the year and hopefully we get into end game in early 2020. The markets seem to follow your thinking because theyre not moving at all. The market is like a brief respite if you will but overall you guys still have a lot of head winds. Definitely. U. S. Markets here 2, 2. 5 away from record highs do you believe that we will achieve new record highs for the u. S. Markets sometime this year . I wouldnt be surprised i dont know if its a certainty by any means but what i would be looking to do is look into some of the laggards u. S. Health care is an area that lagged this year stocks, alltime highs they run out of room. So theres some Political Uncertainty around Health Care Stocks if youre picking them up at less than 15 times earnings, growing to slightly is faster than the market. Thats a defensive sector i think you really should be rotating into given the fact that its lagged while staples and utilities have performed very well because of their high dividend yield stocks that arent at all time highs, youll do pretty well in. Youre not concerned about the fact that politically and im sure youre aware of this, patrick, that certain leading Democratic Candidates have effectively called for the end of private Health Insurance in the United States. This is an industry squarely in the sights for some of the leading candidates for president s next year. They are. Its no certainty we get a democratic president youll have the Republican Senate any way i dont think the political posturing that will happen leading up to an election will be as strong as the rhetoric leading into the election. I think there will probably be a lot of sound bites, a lot of negative headlines for health care but picking them up at 14, 15 times earnings, the growth basically is already discounting to some extent some of the political head winds that are there. Its basically a great time to be buying health care when there is a clear risk that may not materialize. I think with the republican held senate the worst Case Scenario the Health Stocks wont materialize. If youre talk about valuation, you could make a strong case there is no market in the world that is cheap on every single metric. You could throw a dart at a wall and it will come off with the japanese stock market being super cheap and yet investors, they have seemed not to care at all. The nikkei cant get out of its own way. I think if you are worried about an economic slow down, worried about hard brexit, risk aversion we think will probably stay high for the foreseeable future and the safest safe havens are now overvalued. You have 30year treasuries yielding less than 2 and i think looking into a way to get yen without paying negative Interest Rates f you buy the domestically or yen tated japanese stock youre getting dividend yields of 4 to 5 last week the japanese market has never been cheaper the u. S. Market near alltime highs youre getting very discounted valuations in japanese equitieequities. Starting the week off with actionable information and advice patrick armstrong, thank you have a great week. Thank you. The Energy Markets are simply chalk full of news on this monday morning including a major power shift in saudi arabia first, though, opecs biggest problem says it will finally cut Production Iraq will slice output beginning next month iraq is opecs second largest producer pumping more than 4 Million Barrels a day on average last month and many in opec have been frustrated by what it perceives iraqs go it alone strategy now separately, saudi arabia confirmed it has removed Khalid Al Falih over the weekend. The move breaks with long Time Convention that ruling members of the party are not appointed to that position comes just days after al falih was removed from his role as chairman of saudi. This saudi move to change in leadership at the Energy Ministry and aramco come as the state run oil giant appears to be shifting into high gear toward what could finally be the worlds biggest ipo. Kate rogers joining us now with details on that. Good morning. Good morning. Saudi aramco is expected to give a lead role to jp morgan and saudi bank it will likely add citi, goldman sachs, saudi firm to the list of companies managing that offering jp morgan, Morgan Stanley and hscb were previously given lead roles before aramco halted both have declined to comment. Aramco is preparing to sell up to a 5 stake by next year in what would be the worlds biggest ipo. The saudis are gearing up to fast track a local listing on the countrys Main Exchange bringing in the head of the nations Sovereign Wealth Fund as its new chairman. Its unclear where else aram koe would list but the companys board has determined that new york would carry too many legal risks to make it a viable option the ipo is a major piece of saudi arabias drive to transform its economy attracting Foreign Investment and diversifying away from oil which you know all to well all about. The continued s e ed consoli under the kings son. When we come back on Worldwide Exchange, 14 weeks and more unrest . Hong kong as police once again revert to using tear gas on prodemocracy demonstrators. A live report from the city next. Plus the headlines continue for wework, as that Company Reportedly looking to cut down the ipo valuation yet again. Later, helping traders track trump. Details on jp morgans new index that youve got to hear the name of when Worldwide Exchange returns. Stick around 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. I can. The two words whispered at the start of every race. Every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. Talk to your advisor or consultant here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Welcome back its 5 12 here, 5 12 p. M. In hong kong. Their evening commute just starting, but despite the removal of that controversial extradition bill last week, pro democracy protesters are not calmed in hong kong. There were more clashes between police and protesters over the weekend. This is now the 14th straight week of demonstrations cnbcs sherry king joining us in hong kong with more. Sherry reporter good morning, brian. So certainly theres the sense of Unfinished Business for a long of hong kong protesters thats exactly the reason why we saw tens of thousands of antigovernment prodemocracy protesters basically paralyzing this entire area surrounding the u. S. Consulate building here in hong kong yesterday. Many of them actually were calling on u. S. President donald trump to, quote, liberate hong kong and they were also calling on u. S. Lawmakers to pass this bill called the hong kong human rights and democracy act as well they were singing u. S. National anthem, waving u. S. Flags. Really the idea is trying to get the attention of the international community, the u. S. Government, the president as well as the congress in the United States because they feel like theyre not really getting much head way with the Hong Kong Government despite the hong kongs government decision to withdraw this extradition bill last week. In the meantime, we also saw some hard core protesters sort of going in their own direction and vandalizing mtr stations and smashing windows over these mtr stations and also putting on fire the entrance of one subway station a lot of anger towards what happened with the police what they see Police Brutality at mtr stations in previous protests, so thats exactly what we saw on hong kong. And it certainly looks like were going to see more of that as well, brian chery, those types of scenes are going to get all the visual effects of the media here and around the world, what about crowd size is there any indication that the size of the protests has shrunk at all or maybe its taking a more violent turn but that the people are still out in force reporter well, you have to remember that this protest movement is not exactly under some kind of clear leadership at this point so, if we are looking at some massive rally or demonstration organize this particular group called the civil human rights front, then we will see one million, two million, 1. 7 million strong massive rally on weekends, but when it comes to these certain daily daytoday basis or protests at the u. S. Consulate, we certainly saw a smaller number but has it been reduced . Not exactly. Brian . We do appreciate that, chery. Thank you very much. On deck, trade tensions boiling over again, but this time in a very unusual and very unamerican place and it all has to do with lobster well get a live report from con tessa brewer coming up. And your stat of the day is 38 million. Thats how many of you plan to gamble on nfl games this year. The American Gaming Association says a full 15 of the adult American Population lay down real money on football this year hopefully most of those bet on the patriots last night. Highlights of the late game as well stock futures up 51 and were ckig aerhis. So servicenow put your workflows in the cloud, huh . Mmhm. 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. There is a chance thats the last time. 300 Miles Per Hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me retirement is protected. Annuities can provide protected income for life. Learn more at retireyourrisk. Org welcome back and good morning. It is 5 18 dow futures up 56 in Corporate News this morning, boeing is suspending the testing of its new long haul triple 7 x aircraft after report os after cargo door reportedly exploding out during a recent faa test Company Spokesman says, quote the testing conditions were well beyond any load expected in commercial service and the test was run on a plane meant for ground testing only and not on actual flights also happening now, albertsons joining the list of retailers changing its policy on guns the Supermarket Chain says it will ask customers not to openly carry firearms at its stores, nechb states where open carry is legal. And finally, weworks, Parent Company is report lid considering a further valuation cut, possibly below 20 being. Now the wall street journal says some existing is asking to cancel all together. The we company has been planning a road show to pitch shares to new investors as early as today. Straight ahead, new concern over e cigarettes as yet another mysterious death happening over the weekend. Now one state looking to ban vaping completely. Later, details of someones banjo beef with wall streets famous bull. It is trending and its coming up when worldwi ehae mebackdexcng think you need to pay prestige prices for better skin results . Try Olay Regenerist. The rich, hydrating cream is formulated with vitamin b3 and peptides to plump skin cells, brighten, and visibly smooth wrinkles. In fact, just 1 jar has the hydrating power of 5 jars of the prestige cream. For visible results without prestige prices, try Olay Regenerist with a money back guarantee. And complete your routine with the olay eye collection. Brand power. Helping you buy better. Welcome back could vaping be outlawed the e cigarette industry under more pressure over its possible link to a series of fatal lung illnesses around the country latest, Los Angeles County resident has died from an illness that experts say could be tied to vaping. This brings the total number of such u. S. Deaths to five with others reported in illinois, indiana, minnesota and oregon, according to the cdc now this comes as new York Governor Andrew Cuomo is now asking the States Department of health to issue guidance will urge people to stop vaping completely amid these deaths much more on these stories as they develop throughout the day and weeks. Lets get a check on this mornings other top headlines outside of the world of money and business phillip mena is in new york with those. Good morning. Good morning, brian talks to end the bloodshed in afghanistan are at a standstill after President Trump called off a secret meeting with the taliban at camp david that was planned for yesterday. Negotiations were cancelled in the wake of a car bombing that killed a u. S. Army sergeant. The taliban claimed credit for that attack. Now the administration is facing bipartisan backlash over the timing of the proposed talks. Republican representative liz cheney tweeted that no more of the taliban should ever set foot at camp david. Urgent search and rescue mission is under way in georgia for four missing crew members. They were on a south korean tanker when it capsized and caught fire just 80 miles south of savannah. 20 people were rescued from the ship, which was on its way to baltimore, but drews had to put those rescue efforts on hold after the fire and smoke became too much its unclear why the ship capsized. Red bulls air race series come to a high flying conclusion in japan Australias Matt Hall is crowned the lastever World Champion as the series has been cancelled. He took to the skies one last time in his single engine race plane navigating the course through the tight pylons in the final go around. The rules prohibit the pilots from exceeding 230 Miles Per Hour during those races. Brian, back to you. Still pretty spectacular stuff there. Phillip mena, thank you. Still to come, its jamie diamond for the win. Jp morgan chase lining up to possibly take the lead in one of the biggest ipos in history. And our reporter who broke that story is coming up next. Plus, big tech still under fire as a number of state attorneys generals set to unveil their massive investigation into google what does it mean for the stock . lwel break it all down when Worldwide Exchange returns 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 Jp Morgan Chase<\/a> is to winning the top advisory role, one of ifnot the biggest ipos in history it is monday, september 9th and Worldwide Exchange<\/a> begins right now. Good morning, good afternoon and good evening and welcome from wherever in the world you may be watching us im brian sullivan, happy monday everything going on in the world, could this be the week that our stock markets here in the states hit new record highs . Dow futures theyre up right now, about 50 points the dow and the s p 500 are less than 2. 5 from their alltime highs. The nasdaq just under 3 from its alltime highs now, the small cap russell 2,000 still down by about 13 from its 52week highs, but the major averages, they are getting close, as stocks have gone up, bonds have come down a bit yield is ticking up just a bit 1. 59 . You got japan gaining half a percent and the domestic Chinese Market<\/a> also rising now, europe right now not moving a whole lot despite some breaking Economic News<\/a> just moments ago from the uk that its economy rose at its fastest pace in six months. Thats likely going to come as a surprise to many given the political crisis there i guess its keep calm and spend on you could see kind of a flat market around the world. So speaking of england, lets kick it off and welcome in your first guest of the morning and of your trading week, and that is patrick armstrong, cio. Before we get to our markets here, are you surprised that uk gdp coming in at the fastest pace in half a year given everything that is going on in your country definitely surprised. A lot of head winds for the economy. I dont think its a Sustainable Growth<\/a> were going to get, but its the political head winds may set to left by the time we get into the fourth quarter. I dont think its likely. The election that will come before the end of october or in early november i think a Hung Parliament<\/a> is a likely outcome there. The uncertainty plaguing the uk market we have to deal with the rest of the year and hopefully we get into end game in early 2020. The markets seem to follow your thinking because theyre not moving at all. The market is like a brief respite if you will but overall you guys still have a lot of head winds. Definitely. U. S. Markets here 2, 2. 5 away from record highs do you believe that we will achieve new record highs for the u. S. Markets sometime this year . I wouldnt be surprised i dont know if its a certainty by any means but what i would be looking to do is look into some of the laggards u. S. Health care is an area that lagged this year stocks, alltime highs they run out of room. So theres some Political Uncertainty<\/a> around Health Care Stocks<\/a> if youre picking them up at less than 15 times earnings, growing to slightly is faster than the market. Thats a defensive sector i think you really should be rotating into given the fact that its lagged while staples and utilities have performed very well because of their high dividend yield stocks that arent at all time highs, youll do pretty well in. Youre not concerned about the fact that politically and im sure youre aware of this, patrick, that certain leading Democratic Candidates<\/a> have effectively called for the end of private Health Insurance<\/a> in the United States<\/a>. This is an industry squarely in the sights for some of the leading candidates for president s next year. They are. Its no certainty we get a democratic president youll have the Republican Senate<\/a> any way i dont think the political posturing that will happen leading up to an election will be as strong as the rhetoric leading into the election. I think there will probably be a lot of sound bites, a lot of negative headlines for health care but picking them up at 14, 15 times earnings, the growth basically is already discounting to some extent some of the political head winds that are there. Its basically a great time to be buying health care when there is a clear risk that may not materialize. I think with the republican held senate the worst Case Scenario<\/a> the Health Stocks<\/a> wont materialize. If youre talk about valuation, you could make a strong case there is no market in the world that is cheap on every single metric. You could throw a dart at a wall and it will come off with the japanese stock market being super cheap and yet investors, they have seemed not to care at all. The nikkei cant get out of its own way. I think if you are worried about an economic slow down, worried about hard brexit, risk aversion we think will probably stay high for the foreseeable future and the safest safe havens are now overvalued. You have 30year treasuries yielding less than 2 and i think looking into a way to get yen without paying negative Interest Rates<\/a> f you buy the domestically or yen tated japanese stock youre getting dividend yields of 4 to 5 last week the japanese market has never been cheaper the u. S. Market near alltime highs youre getting very discounted valuations in japanese equitieequities. Starting the week off with actionable information and advice patrick armstrong, thank you have a great week. Thank you. The Energy Markets<\/a> are simply chalk full of news on this monday morning including a major power shift in saudi arabia first, though, opecs biggest problem says it will finally cut Production Iraq<\/a> will slice output beginning next month iraq is opecs second largest producer pumping more than 4 Million Barrels<\/a> a day on average last month and many in opec have been frustrated by what it perceives iraqs go it alone strategy now separately, saudi arabia confirmed it has removed Khalid Al Falih<\/a> over the weekend. The move breaks with long Time Convention<\/a> that ruling members of the party are not appointed to that position comes just days after al falih was removed from his role as chairman of saudi. This saudi move to change in leadership at the Energy Ministry<\/a> and aramco come as the state run oil giant appears to be shifting into high gear toward what could finally be the worlds biggest ipo. Kate rogers joining us now with details on that. Good morning. Good morning. Saudi aramco is expected to give a lead role to jp morgan and saudi bank it will likely add citi, goldman sachs, saudi firm to the list of companies managing that offering jp morgan, Morgan Stanley<\/a> and hscb were previously given lead roles before aramco halted both have declined to comment. Aramco is preparing to sell up to a 5 stake by next year in what would be the worlds biggest ipo. The saudis are gearing up to fast track a local listing on the countrys Main Exchange<\/a> bringing in the head of the nations Sovereign Wealth Fund<\/a> as its new chairman. Its unclear where else aram koe would list but the companys board has determined that new york would carry too many legal risks to make it a viable option the ipo is a major piece of saudi arabias drive to transform its economy attracting Foreign Investment<\/a> and diversifying away from oil which you know all to well all about. The continued s e ed consoli under the kings son. When we come back on Worldwide Exchange<\/a>, 14 weeks and more unrest . Hong kong as police once again revert to using tear gas on prodemocracy demonstrators. A live report from the city next. Plus the headlines continue for wework, as that Company Reportedly<\/a> looking to cut down the ipo valuation yet again. Later, helping traders track trump. Details on jp morgans new index that youve got to hear the name of when Worldwide Exchange<\/a> returns. Stick around 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. I can. The two words whispered at the start of every race. Every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group<\/a> believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. Talk to your advisor or consultant here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Welcome back its 5 12 here, 5 12 p. M. In hong kong. Their evening commute just starting, but despite the removal of that controversial extradition bill last week, pro democracy protesters are not calmed in hong kong. There were more clashes between police and protesters over the weekend. This is now the 14th straight week of demonstrations cnbcs sherry king joining us in hong kong with more. Sherry reporter good morning, brian. So certainly theres the sense of Unfinished Business<\/a> for a long of hong kong protesters thats exactly the reason why we saw tens of thousands of antigovernment prodemocracy protesters basically paralyzing this entire area surrounding the u. S. Consulate building here in hong kong yesterday. Many of them actually were calling on u. S. President donald trump to, quote, liberate hong kong and they were also calling on u. S. Lawmakers to pass this bill called the hong kong human rights and democracy act as well they were singing u. S. National anthem, waving u. S. Flags. Really the idea is trying to get the attention of the international community, the u. S. Government, the president as well as the congress in the United States<\/a> because they feel like theyre not really getting much head way with the Hong Kong Government<\/a> despite the hong kongs government decision to withdraw this extradition bill last week. In the meantime, we also saw some hard core protesters sort of going in their own direction and vandalizing mtr stations and smashing windows over these mtr stations and also putting on fire the entrance of one subway station a lot of anger towards what happened with the police what they see Police Brutality<\/a> at mtr stations in previous protests, so thats exactly what we saw on hong kong. And it certainly looks like were going to see more of that as well, brian chery, those types of scenes are going to get all the visual effects of the media here and around the world, what about crowd size is there any indication that the size of the protests has shrunk at all or maybe its taking a more violent turn but that the people are still out in force reporter well, you have to remember that this protest movement is not exactly under some kind of clear leadership at this point so, if we are looking at some massive rally or demonstration organize this particular group called the civil human rights front, then we will see one million, two million, 1. 7 million strong massive rally on weekends, but when it comes to these certain daily daytoday basis or protests at the u. S. Consulate, we certainly saw a smaller number but has it been reduced . Not exactly. Brian . We do appreciate that, chery. Thank you very much. On deck, trade tensions boiling over again, but this time in a very unusual and very unamerican place and it all has to do with lobster well get a live report from con tessa brewer coming up. And your stat of the day is 38 million. Thats how many of you plan to gamble on nfl games this year. The American Gaming Association<\/a> says a full 15 of the adult American Population<\/a> lay down real money on football this year hopefully most of those bet on the patriots last night. Highlights of the late game as well stock futures up 51 and were ckig aerhis. So servicenow put your workflows in the cloud, huh . Mmhm. 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. There is a chance thats the last time. 300 Miles Per Hour<\/a>, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me retirement is protected. Annuities can provide protected income for life. Learn more at retireyourrisk. Org welcome back and good morning. It is 5 18 dow futures up 56 in Corporate News<\/a> this morning, boeing is suspending the testing of its new long haul triple 7 x aircraft after report os after cargo door reportedly exploding out during a recent faa test Company Spokesman<\/a> says, quote the testing conditions were well beyond any load expected in commercial service and the test was run on a plane meant for ground testing only and not on actual flights also happening now, albertsons joining the list of retailers changing its policy on guns the Supermarket Chain<\/a> says it will ask customers not to openly carry firearms at its stores, nechb states where open carry is legal. And finally, weworks, Parent Company<\/a> is report lid considering a further valuation cut, possibly below 20 being. Now the wall street journal says some existing is asking to cancel all together. The we company has been planning a road show to pitch shares to new investors as early as today. Straight ahead, new concern over e cigarettes as yet another mysterious death happening over the weekend. Now one state looking to ban vaping completely. Later, details of someones banjo beef with wall streets famous bull. It is trending and its coming up when worldwi ehae mebackdexcng think you need to pay prestige prices for better skin results . Try Olay Regenerist<\/a>. The rich, hydrating cream is formulated with vitamin b3 and peptides to plump skin cells, brighten, and visibly smooth wrinkles. In fact, just 1 jar has the hydrating power of 5 jars of the prestige cream. For visible results without prestige prices, try Olay Regenerist<\/a> with a money back guarantee. And complete your routine with the olay eye collection. Brand power. Helping you buy better. Welcome back could vaping be outlawed the e cigarette industry under more pressure over its possible link to a series of fatal lung illnesses around the country latest, Los Angeles County<\/a> resident has died from an illness that experts say could be tied to vaping. This brings the total number of such u. S. Deaths to five with others reported in illinois, indiana, minnesota and oregon, according to the cdc now this comes as new York Governor Andrew Cuomo<\/a> is now asking the States Department<\/a> of health to issue guidance will urge people to stop vaping completely amid these deaths much more on these stories as they develop throughout the day and weeks. Lets get a check on this mornings other top headlines outside of the world of money and business phillip mena is in new york with those. Good morning. Good morning, brian talks to end the bloodshed in afghanistan are at a standstill after President Trump<\/a> called off a secret meeting with the taliban at camp david that was planned for yesterday. Negotiations were cancelled in the wake of a car bombing that killed a u. S. Army sergeant. The taliban claimed credit for that attack. Now the administration is facing bipartisan backlash over the timing of the proposed talks. Republican representative liz cheney tweeted that no more of the taliban should ever set foot at camp david. Urgent search and rescue mission is under way in georgia for four missing crew members. They were on a south korean tanker when it capsized and caught fire just 80 miles south of savannah. 20 people were rescued from the ship, which was on its way to baltimore, but drews had to put those rescue efforts on hold after the fire and smoke became too much its unclear why the ship capsized. Red bulls air race series come to a high flying conclusion in japan Australias Matt Hall<\/a> is crowned the lastever World Champion<\/a> as the series has been cancelled. He took to the skies one last time in his single engine race plane navigating the course through the tight pylons in the final go around. The rules prohibit the pilots from exceeding 230 Miles Per Hour<\/a> during those races. Brian, back to you. Still pretty spectacular stuff there. Phillip mena, thank you. Still to come, its jamie diamond for the win. Jp morgan chase lining up to possibly take the lead in one of the biggest ipos in history. And our reporter who broke that story is coming up next. Plus, big tech still under fire as a number of state attorneys generals set to unveil their massive investigation into google what does it mean for the stock . lwel break it all down when Worldwide Exchange<\/a> returns 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<\/a> 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. I can. The two words whispered at the start of every race. Every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group<\/a> believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. A new week, new record highs . Maybe. Futures higher as the bulls work to tack back control of this market. Call it a banging bana sa. Jp morgan close to winning the lead role in the aramcoipo. And we have the details from our reporter who broke the story. You have to hear it its the volfefe index. Its the new way to track the effects of trumps tweets on the market volfefe, you cant make it up, youre watching Worldwide Exchange<\/a> on cnbc. You can hate yourself for loving somebody wu we appreciate you loving Worldwide Exchange<\/a>. Thanks for joining us this morning. Good morning its 5 28 here is how your money and investments look right now could we get new record highs this week . We have work to do if we want to do that. Markets 2 to 3 from their record highs, depending on which index you want to pick futures are up only 50 points but they are up. A little ways to go but still the momentum certainly has shifted. More on the stock market as well with the great jeff and sven coming up in a few minutes the bond market stocks have come down but yields still very low historically the tenyear yield 1. 59 . Overseas in asia, continued protested in hong kong, the Chinese Market<\/a> rising just under 1 japan rising as well and uk gdp surprising everybody at its fastest pace in more than 6 months despite all the brexit drama, the uk economy kind of chugging along, keeping calm and spending on and we are seeing the uk market down a bit but germany and italy they are higher about 30 states attorneys general are planning to announce a broad antitrust investigation into google today. What do you got . Brian, youre right we are expecting more than two dozen states to announce a coordinated antitrust information into google and that will happen this afternoon now the focus will be on whether Large Tech Companies<\/a> have engaged in behavior that stifles competition, restricts access and harms consumers. Theyre making this announcement in front of the supreme court, so that seems to be a pretty clear message that they do not plan to back down from this fight. Im told this will be a bipartisan effort led by the Republican Attorney<\/a> general of texas ken paxton earlier this summer, paxton and seven other state a. G. S met with u. S. Attorney general william barr about their concerns over competition in big tech. States have also been pushing federal regulators to expand the way they think about antitrust, not just focussing on price but also on the value of data and privacy. In a statement earlier this summer, paxton said that Technology Platforms<\/a> often lack the incentive to provide strong privacy protections for consumers and their dominant position in user data creates barriers to entry for new competitors. Texas has been fighting google for years, brian the previous ag who is now the state Governor Greg Abbott<\/a> launched a antitrust investigation into google all the way back in 2010 today texas will have a lot more states who have its back back over to you. Big effort obviously here is it safe to assume that whatever occurs in the courts in the shortterm, this is far from the end for Big Technologies<\/a> regulatory issues in capitol hill oh, absolutely. I mean, you still have the doj investigation into big tech companies. The House Judiciary Committee<\/a> will be holding a hearing on thursday of this week in order to continue its antitrust investigation. So the hits just keep coming from all sides. Ill tell you what, ylana couple weeks ago we were out in colorado at the Technology Policy<\/a> Institute Forum<\/a> with one of the top antitrust guys at the doj and i did a panel with him and then we did some q a afterwards, i can assure you this that much, all the big lobbyists from the tech firm are trying to get the ear of the government im sure you talked to them say, listen, were big but just because were big doesnt mean were bad. Thats right. Part of their argument is that, one, they compete with each other. Even though we talk about sort of big tech as a monolith, theres certainly competition within the industry. And also the fact that you have to be able to define the scope of competition so, for example, with google and search, they say you search for products on amazon dun that count as competition. So theyre really trying to focus on what is the scope of competition, what is the scope of these antitrust investigations and trying to limit them. Ylan, this is a big story, one that will happen all throughout the day today thank you very much. Have a good day. Thank you. Lets talk more about all this means and possible remedies joining us now head of thematic research at global data. Whats amazing, cyrus, we just talked about new record highs at the top of the show and the nasdaq getting close alphabet investors or the market or whatever you want to call it doesnt seem to care about this yet. Do you think they will regret that i think they will regret that we have been saying for two years now that big tech are not taking regulation seriously. We think and over the next 12 months regulation hype will get much bigger, of course in europe, europe over the last ten years regulated big tech their enforcement has been much stronger than the u. S. But i think the u. S. Now is forced to act. And the key here is antitrust investigations when they focus on a product a physical product, its relatively easy you can go to factory and monitor that product but here is issue is data. Control of data as your reporter just said. When youre monitoring control of data on the internet, in digital, in servers, its very easy its very difficult to track what that data is doing, therefore its very difficult to track whether big tech is actually breaking some of the laws that already exist. If you had to lay betting odds, cyrus, on the chance that google, alphabet is broken up by either federal or state regulators what would those odds be yeah. Id think some Democratic Candidates<\/a> for the president talked about breaking up big tech i think the issue is not breaking them up, the real remedy is sorting out the problem of data privacy, of preventing consumer harm by allowing consumers to take back control of their data. Ill give you one example. A typical antitrust lawyer will say when we look at an antitrust case, we look at three things that might cause consumer harm. Price, quality and innovation. If you just take one of them, say price. Right now we use google and facebook for free as a consumer. But, you know, that price could be wrong because facebook and google are making super normal profits, which means what theyre doing with their data that data is probably not priced right. Consumers should be asking more for that data. But they dont know how much to ask because when you typically sell something, you know what youre selling in this case, you sell data you dont know what youre selling because you dont know what google and facebook are doing with that. And antitrust regulators should find out what theyre doing. That should be the crux of the investigation. There has been some people i know because ive heard people talking about this either off camera or on camera, cyrus, which is that maybe at some point the solution would be charging some kind of a fee. Okay you can have an advertisement free no Data Collection<\/a> version of facebook or even google if you pay x dollars per year, but nobody yet has offered that because apparently the numbers would have to be so large for these companies that they dont think any consumer would pay it, maybe three or 400 a year to have a pure privacy version of some of these products. Yeah. On a separate issue, is there any sort of i guess value to this idea that maybe google actually would have more value for investors if it was broken up it depends how it will be broken up, google cloud, google youtube, Google Search<\/a> it really depends. The power of google is that it uses data from all of these sources and then sells advertising revenue. And from the u. S. Perspective, the u. S. Is engaged in a geopolitical trade war with china, it needs u. S. Big tech to remain big because otherwise its going to fail in next generation technologies like Artificial Intelligence<\/a> or Autonomous Vehicles<\/a> and so on. So it doesnt really the u. S. Government doesnt in my view doesnt really want to break up big tech, but the eu may cyrus mawawalla we appreciate your news. Its a big story thank you very much, cyrus well, the Energy Markets<\/a> are chalk full of news this monday morning, including a major power shift in saudi arabia. First, though, opecs biggest problem says it will finally cut Production Iraq<\/a> will slice output beginning next month iraqs opecs second largest producer pumping more than 4 Million Barrels<\/a> a day on average last month, some people think it could be closer to 5 million many in opec is frustrated by what they perceive as iraqs go it alone strategy. The Energy Minister<\/a> was released with the kings son. Members of the ruling fam i are not appointed to the Energy Minister<\/a> job this also comes just days after mr. Al falih was removed as chairman of saudi aramco breaking news over night, jp morgan may be the lead banker on this deal if and when it happens and we are joined now with a great scoop, hu. Thanks for joining us. Congratulations on that. It was kind of thought that morgan stan lirks according to your reporting, but uber may have screwed up Morgan Stanley<\/a>s chances . Back in may we were all sitting in our seats wondering with uber flop and Morgan Stanley<\/a> handling that ipo, obviously didnt go well the first couple days, would it hurt them in a business snens here we are apparently with that result, which is the saudis being significant owners in Uber Bloomberg<\/a> reporting they own at least 10 of uber and being less than pleased with the way that investment was handled if you had to pick between jp morgan and Morgan Stanley<\/a>. The new chairman of aramco was the head of the pif, Public Investment<\/a> fund. So the new head of aramco who will decide who the lead banker in the deal is a guy thats been personally burned by the uber underperformance. Yeah. Put together the pieces of puzzle i would think that Morgan Stanley<\/a> is still going to be an underwriter in the deal. They need a ton of banks. Lead left is the quarterback. Theyre calling the shots. Theyre in all the meetings. Theyre prooivy about when to list, if to list if Energy Prices<\/a> crater, equity markets crash between now and november when theyre thinking about doing this, probably hold it off. When we say this deal, i mean, hugh, this has been the twoyear ipo that never seems to materialize. Sounds like from your reporting if jp morgan is lined up to be the lead banker, that means they are getting closer to actually having an ipo. I believe second time is a charm and this is the reason why. What happens next year, right . We have an election in the u. S so the ipo market, the ipo window may be closing if, as we edge closer to potentially end of the Business Cycle<\/a> perhaps a recession next year, you really want to do this now. You want it so that the idea is that the first part of this listing is going to be on a domestic exchange, the wall in november and then perhaps london, perhaps new york sometime next year its going to be its projected to be the biggest ipo in history. This is a big win for the Jp Morgan Bankers<\/a> if it happens, somebody is getting a big bonus. You broke the story, you should get a big bonus. Coming up, bullied by a banjo. A weekend attack on the wall street icon you have to see to believe and the surprising damage done by a Musical Instrument<\/a> this here river, Contessa Brewer<\/a> is up north where the trade war is, i guess, literally boiling over, contessa good one, brian there you go i looic that have you ever been in lobster jail here in maine the dealers are feeling trapped by tariffs you know what im saying theyre feeling the pinch. And you wont believe the twist i have coming up for you, who is really winning in this trade war between china and the United States<\/a> i have it still ahead on Worldwide Exchange<\/a>. This is the age of expression. Everyone has something to say. But in a world full of talking, shouldnt somebody be listening . So. Lets talk. We are edward jones. With one Financial Advisor<\/a> per office, were built for hearing whats important to you. One to one. Edward jones. Its time for investing to feel individual. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. 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. 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. Welcome back we certainly talk about the u. S. china trade war pretty much everyday here on cnbc and thats because its a big deal for the markets. But its also a big deal for the men and women out there that are literally getting up at the same time we get up and doing a much harder job in some very cold and wet conditions Contessa Brewer<\/a> joining us from maine where the lobster dealers are fed up contessa its very true, brian here it is, its 5 43 in the morning at the lockster company in arundel, maine. These lobsters are going to go to connecticut these boxes will head off to hong kong. You know where theyre not going . These lobsters are not going to china. July 6th, 2018, it all came to a screeching halt and we didnt really sell any more lobsters to china reporter now these tariffs are a big problem for stephanie netto. In fact, she made such Big Investments<\/a> and the other lobster distributors in maine to open up the Chinese Market<\/a> and instead what has happened is her lobster sales plummeted. Entirely off by 50 since tariffs went into effect shes not alone here u. S. Lobster exports are down 60 the first half of 2019 when you compare that to the first half of 2018 before the tariffs were in effect and now the chinese have just really ratcheted up the tariffs another 10 on top of it a 35 september 1st. Look, the bottom line is stephanie says im the one who was trying to balance the trade imbalance. I was exporting American Goods<\/a> to china, bringing chinese money back to the United States<\/a> and now i dont sell to china at all. How is that helping the trade imbalance . Its a tough problem for these guys to crack, brian. I like it to crack, contessa. The chinese, the middle class is expanding. I can tell you this much, they love lobster its a lot of the dishes in hong kong and other places. Theyre clearly buying lobsters from somewhere if its not america, who is winning the lobster wars reporter i mean, who doesnt want the lobster one reason why theyre so popular in china because when you cook them they turn bright red and that symbolizes good fortune in asian cultures. Oddly enough, canada is winning the lobster wars when the tariffs went into effect, canadas exports were boosted 40 to china and here is a really odd conundrum, where are all the lobsters coming from well, the u. S. Export to canada is up 130 there is suspicion on both sides of the border here thats whats happening is these guys are really ending up in canada, packaged for shipment to china but labeled being caught in canada no proof maybe because theres not a lot of enforcement on that front, but suspicion as i said on both sides of the border. Brian . Its not a small industry in some ways it defines maine. A lot of people make their living off it. Its a serious topic out there Contessa Brewer<\/a>, aarundel, maine. Thank you. Bring a few back for us. Well buy them here. Well bring them back. Please, thank you. Well find out what else youll be talking about today. Time for this mornings top trending stories kate rogers is here. Some people cant eat shellfish, theyre allergic or whatever whats your take im so so on lobster. Its controversial. It used to be served to prisoners. It was a throw away item in the 1800s. You put a lot of butter on anything, its amazing right . The quote of the week, early contender. There we go. Lets kick this off, brian so a man has damaged wall streets famous charging wall street bull statue by attacking with a banjo he was seen striking the bull leaving cuts at the base of his horns. He was charged with criminal mischief, criminal possession of a weapon and disorderly conduct. In an attempt to quantify the impact of President Trump<\/a>s tweets on the bond market, jp morgan demised a volfefe index now the index is named after the president s infamous and still mysterious covefefe tweet. A measurable fraction of the moves. Its a combination of volatility and covefe. I wonder if there will be blowback. Well be hearing if he doesnt like it. A pennsylvania couple is deep in trouble after their bank mistakenly deposited 120,000 into their account but instead of reporting the mistake, they went on a shopping spree. They bought an suv, four wheelers and a camper, plus they gave 15,000, brian to their friends all in about two weeks when the bank discovered the mistake, they transferred the money out. The couple is now facing felony theft charges. I mean, at least they lent some money to their friends. They did. But now they bought is worth 35 . Its used. If someone does that, you condition do it. Its the same thing as stealing. If you have knowledge or know that money is not yours and they clearly did you cant take it. Its not 120 it was 120,000. Its not a small amount. Thats a lot of lobster a lot of lobster. A lot of butter, too. Right . Thats the best youre the best. Thank you. On deck, will we see a surge in Market Growth<\/a> as the calendar turns to fall . Or are we falling for some false hope the great jeff and sven on next. Plus, they say the best things come in small packages, does that apply to real estate your morning rbi will show you the smallest apartment for rent in San Francisco<\/a> and the insane amount of money it may be going for. Youve got to see this to believe it because you cant go to the bathroom in your own apartment. Thats how small it is i guess you could, but it would thom nss because thereso baro were back right after this. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. There it is, live shot of somewhere in new york city its still dark. Fall is coming its getting light later, 5 52 time for your morning rbi. Today were honing in on one of the most expensive commodities in the world, San Francisco<\/a> real estate check this out according to rental platform zumper and business insider, this is the smallest apartment for rent in the city were showing a picture by the way, its basically a box. 161 square feet. It doesnt even have its own bathroom there is access to a shared bathroom down the hall this sounds like your dream living situation, its not its 2,300 per month in rent 161 square feet, no bathroom, one window, 2295 a month. Random but hopefully interesting to somebody. Lets go to the markets here dow futures up 67 points and just a couple percent away from alltime highs on most of the major u. S. Averages. Today, this month, this year be the year of the new record joining us now is venn hendrick and jeff, cnbc contributor sven, what say you i know you have been a skeptic in the sense that this is maybe centralbank driven, that this is a market that is being propped up by sort of artificial forces, but you just look at the charts are the charts showing more gains ahead . Well, absolutely. It is a basically bull market that requires Central Bank Intervention<\/a> it cannot stand on its own so thats why we have seen so much multiple expansion in 2019 visavis 2018 because were basically the same price levels we were last year but things have gotten markedly worse we just broke out of a consolidation range in most of august that has a measure of 3068 on the s p. Theres key resistance and were building on overnight gaps and not with a lot of intraday price discovery. The jury is still out. We have ecb this week and the fed next week and i think those will be key decision factors for this market going forward. Jeff, i got to apologize, buddy, i guess not for your bears but for the i gave you grief a few weeks ago for loving the safe haven, the boring trade. You have been right. That trade has done well are you shifting that money from that into something more risky, little more aggressive well, i am. Well book profits in tlt and xlu. Youre right, as we see 17 trillion in negative yields. So booking those profits but looking into ihi, the medical device thats semiconductors. I think this week sven hit the nail on the head whatever it takes. In 2019 at the last meeting on thursday, hes going to say, here you go. I think the markets will get a lot more stimulus and move around that 3,000 level in the s p 500 and catch a lot of shorts off sides. It is, sven, i hear from people on twitter and i love it, people say this whole market for ten years has been this fake, centralbank driven easy money, liquidity market i get that your job is to make money for yourself and your clients. As much as our viewers around the world may hate what is maybe behind this market, its a market that just continues to move higher. You can hate it but its been profitable absolutely. This game has worked and i think for many of us the question is simply ethicacy. The ecb hasnt been able to raise rates to 0 theyre still negative and will go further negative. Ultimately you have to ask yourself what is it actually producing because its not producing growth in the longterm and what were seeing in the United States<\/a> now is a reduction in gdp growth. We saw it in q2 visavis q2 last year and q3 this year going down to 1. 5 according to the atlanta fed and down to 1. 1 going into q4 according to the new york fed outcast there is market slowing growth and were also seeing slowing growth in the earnings side coming in at negative 3. 5 for q3 youre dealing with multiple expansion. When youre relying on Central Banks<\/a> to move the multiple equation forward, youre running risks that markets get disappointed and you have selloffs so for now, clearly the momentum is their markets demand these rate cuts. Go ahead. Sure. Im going to push back a little bit sven the data domestically is better than we expected in 2019 yes, i get the recession nar worries in europe but right now the debt is pretty good. I travel all across the country and every city i go to it seems theyre booming, San Francisco<\/a>, new york, austin thats why were attracting so many assets in our stock market is doing so much better, sven. Let me speak about the stock market i have been tracking Broader Market<\/a> has not been participating in fact its been a market weakening for rally to rally to rally the value line for understanding is not track based on market cap. Its tracking based on equal weight and what were seeing is the Broader Market<\/a>s not participating. All the money is going still into the high cap tech stops for a rally to be convincing, remember in the last year and a half, all new highs have been sold they have not been able to sustain. For a rally to convince that dynamic in the market aspect structure has to change. We need to see the small caps the banks, the transport, Everything Else<\/a> moving above their resistance points when they havent really gone anywhere in the last year and a half. I dont disagree. Were going to end it there hey, guys really good segment. I wish we had more time. Well bring you both back on again. Jeff and sven a great discussion. That is it for us thanks for watching. Well see you tomorrow squawk box begins right now. Good morning. Cnbc exclusive report says jp morgan is close to landing lead role in the aramco Public Offering<\/a> meantime, theres a shakeup in saudi arabia. The kingdom replacing the top emergency minister with the kings son. And a potential turning point for the e cigarette industry states are looking to crack down on vaping as more illnesses and deaths are reported. Its monday, september 9th, 2019, and squawk box begins right now. Announcer live from new york where business never sleeps, this is squawk box. Good morning, everybody. Welcome to squawk box here on cnbc we are lye from the Nasdaq Market<\/a> site in times square im becky quick along with joe kernen and andrew ross sorkin. We have been watching the u. S. Equity futures youll see were in the green once again nasdaq up by 24. The dow and the s p both been up for six out of the last seven sessions and, in fact, youre looking at the dow just about 2 below its alltime high. S p is off by 1. 6 from an alltime high. So well see where things head as we get deeper into this week throughout the course of the morning. Take a look at what happened overnight in asia. Youre going to see that the nikkei ended up by about half a percentage point the hang sang was flat and the shanghai composite was up by. 8 percent even though trad","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia803007.us.archive.org\/19\/items\/CNBC_20190909_090000_Worldwide_Exchange\/CNBC_20190909_090000_Worldwide_Exchange.thumbs\/CNBC_20190909_090000_Worldwide_Exchange_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240716T12:35:10+00:00"}