Radical new look and power train for the mustang name plate a one on one with ford ceo jim hack et coming up. Saudi aramco falling short the company out with a new valuation thats less than investors were expecting as Worldwide Exchange begins right now. Good morning welcome to the show im dominic chu in for Brian Sullivan. Here is how your money and the Global Markets are setting the day up after the dow closed 28,000 for the First Time Ever on friday breaking above the key level just in the last few moments of trading on that day you can see there the time lapse of the moves this morning, stock futures indicating the dow will open up slightly higher. The dow is coming off its longest win streak since february the s p seeing its longest win streak in two years at that stage. As you can see the dow jones up by another 40 points if these gains hold into the opening bell, the s p up by 3 points and the nasdaq up by 17. If you take a look at the overall picture, also bonds a key focus as they keep moving higher those yields you can see the tenyear benchmark yield 1. 85 . The twoyear, 1. 62 . We continue to watch the Interest Rate complex move slightly higher. Now as we go worldwide, in the asian trade, china cutting a shortterm Interest Rate for the First Time Since 2015. The surprise move sparking talk that more chinese stimulus could be on the way. As you can see there, a lot of green across the board the shanghai composite Mainland China up over. 5 , hong kong up 1. 5 and nikkei in japan. 5 gain as well european trade, we are seeing a little bit of perhaps hesitation, pluses and minus german dax off ftse 100 in the uk up. 1 of 1 look at the other top stories were following. New developments in the u. S. china trade talks over the weekend, chinese vice premier spoke by phone with treasury secretary Steven Mnuchin and robert lighthizer. They say the men discussed a phase 1 trade deal and the discussions, were quote unquote, constructive the sides report lid agreed to remain in close contact. In deal news as well, yahoo japan and chat app line say they reached a basic agreement to merge. That includes 3. 1 billion buyout of lines minority shareholders some green across the screen for z holdings and Line Corporation in japanese trading. Saudi aramco says its aiming for a valuation of around 1. 6 to 1. 7 trillion. That range does fall short of the initial 2 trillion plus targeted by Saudi Crown Prince mohammed bin salman, but it would still be the worlds biggest ever ipo by valuation. Now a developing story overnight as hong kong demonstrations continue and turn violent once again they used rubber bullets and tear gas fiery explosions erupted antigovernment protesters barricaded themselves inside the campus for days launching fire bombs at police. Police did make arrests in that movement. Back to the markets. Just one session after the dow cracked 28,000 for the First Time Ever, a big week ahead for you and your money several retailers will be in focus. They report Quarterly Results this week, including home depot, kohls, target, lowes, gap, macys you get the idea a lot of retail and focus. Youve also got october Housing Starts out tomorrow. The minutes from last months fed meeting on wednesday an existing home sales on thursday a lot of stuff to talk about so lets go over all of these catalysts with joel shoelman, founding and managing director of Entrepreneur Shares we welcome you into the discussion with a market thats at market highs. Are we in danger of a further meltup could this market rally continue given what weve seen . Well, i dont ever think its a danger to have a meltup i do think were going to have better returns, better prospects in small cap and nonu. S those are the two markets that have not yet recovered in the 2018 highs were seeing u. S. Large caps well beyond those highs. But weve got a bit more room maybe another 5 to 10, 15 for u. S. Small caps and nonu. S. Is there a feeling, joel, that those small caps anded my caps can really play catch up with the rest of the large cap yeah. I only say this because we heard so often from many experts on our air that the small cap side of things have been underperforming and that we cant really get that real broad based rally unless those small caps really participate. Well, we saw in the last month, i was here a month ago and we were talking about this and theyve been up 6 since that time. A couple stocks im monitoring are up 20 to 22 the last month. I think those things are coming back this week may be choppy. But we still have another five, six weeks before year end. I think well have a christmas rally. I think january will be strong and small caps what a difference a year makes. I say that only because it was this time last year when we were talking about the fed chair jerome powell, the Interest Rate trajectory that we were looking at and then all of a sudden we got a steep, steep selloff. Its not like this time. Thats right. Fourth quarter is rough until christmas week christmas until now we have seen markets up 30 to 40 by the way a lot of viewers may not recognize of the russell 1,000 growth, its been up 28 two companies are driving that from microsoft and apple so when you remove those two stocks, the rest of the market is just okay it is still strong, but this market has been led largely by two stocks. All right lets say if those two stocks are driving things, what else needs to happen then for this rally to maintain the trajectory its on . I ask because there have been a lot of nay sayers out there who say the economic data, at least the soft surveybased data has not been supportive of an economy globally speaking that should have markets, numerous markets at record highs or multiyear highs whats interesting about this question and we track entrepreneurial companies, and most of the growth among the s p 500 is about 20, 30 companies, mostof the growth russell 1,000, 30, 40 companies. So this is not a market thats being driven broad based among 800, 900 companies most companies are just plodding along. A lot of people dont recognize we have a lot of m and a acti activi activity 5 trillion last year and the same this year a lot of markets moving up for that were seeing a lot of dollars coming in. Theyre boosting the markets were seeing securities pulled out. And were seeing layoffs in some of these companies theres a handful of companies that are growing, driving revenues, hiring people. When you look at the market the job growth is uneven and were seeing Companies Like that. Just a few seconds left here. Okay. You deal with a lot of these entrepreneurialbased companies. Yeah. What does the ipo market look like its been off a little bit and we had weworks and peleton so theres a lot of these companies are now suspect. We have seen uber and lyft the ceo the founder selling off his stock. So theres pessimism among those companies. But we still have other companies coming out you mentioned aramaramco. Joel shulman, thank you very much. Coming up on the show, how fedex went from owing trillions in dollars in taxes, at least billions in dollars of taxes to near 0. Live from the dubai air show. First on cnbc interview, his take on the on going grounding of rival boeings 737 max jet and then later. Announcer todays big number, 75,842, thats how many ford mustangs were sold in 2018. Making it the best selling american muscle car last year. Beating out the Dodge Challenger and the chevy camaro the pony car wars continues another first on cnbc interview with Ford Ceo Jim Hackette about the companys all new electric pony car, kind of. En rlidexan ur still ahead whwodwe chge returns right after this evagpharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Whether your beauty routine is 3or 57,. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. As a principal i can tell you this. When one student gets left behind, we all get left behind. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. Thats a live shot of chicago, illinois. Coming up on 4 12 central time a chilly day in the windy city. New this morning, fedex ceo fred smith is firing back at the New York Times over an article about the companys tax bill rahel solomon joins us now with more on that story its billions of dollars worth of taxes we are talking about here. Yes, it is. So the New York Times pub lyricing an expose yesterday on the companys taxes. The paper reporting between 2017 and 2018 fedex managed to cut its tax bill dropped from 34 to less than 0. Financial filings show that fedex paid 2 billion and the times said this all came after fedex and its ceo fred smith lobbied hard for the Trump Administrations tax cuts. They were designed to encourage Capital Investments by companies, but the times says that fedex spent less on that in 2018 than it did in 2017 passing most on to shareholders through buybacks and dividends in a Statement Last night smith calls the report distorted and factually incorrect and challenges the publisher and editor to a public debate. It should be federal tax policy. Especially for lower, middle class wage earners and smith claims that the times paid no income tax in 2017 and only 30 million last year while also cutting Capital Investment so the times has yet to respond to that challenge. What an interesting dynamic. What an interesting development. Just first of all, the idea now that a corporation in america is trying to minimize its tax bill now, this has become a hot topic these days only because fedex would not be the only one. Not be the only one doing it. Now the challenge from fred smith to in essence the management and ownership of the New York Times not just about the merits of a topic but also about their own tax bill. Right. It sort of begs the question people in glass houses if, in fact that is true. But it almost sounds very reminiscent not to make light of the situation i challenge you to a duel not only am i going to challenge you on this, but lets have a debate about it. Its crazy. Thank you very much for that you have two, very, very interesting sides and numerous people, characters, at the center of this. I wonder if the president will weigh in. I wonder if the president will rahel solomon, thank you. Still on deck for the show what tim cook, another character and President Trump are likely to discuss when they both tour a texas apple facility that happens later on this week. Plus, from beyond meat to impossible burger, plantbased foods are all the rage now another name you need to know is getting into the game. Editor in chief stephanie meta here to discuss. Plus, were live from the invitationonly east tech west im going to call it the east tech west conference, where our own deirdra is talking with the top names in the business. Deirdra, over to you reporter thats right, dom we have it all down. Markets theres optimism that trade tensions may be easing, but here at east tech west in china, some of the biggest investors and companies in technology are trying to figure out what the longterm effects are. Will there be a decoupling is the battle for tech supremacy just getngndti uer way when we come back, well have all the highlights for you it is nice. His haircut is nice. This is the mostawarded minivan three years in a row. The van just talked. Sales guy, give em the employee price, then gimme your foot. Handsfree sliding doors, stow n go® seats. Can your car do this . Man, yall getting a hook up and you dont even work here. Dont act like im not doing yall a favor. Yall should be singing my praises. Pacificaaaaa purchase and get 5,361 below msrp plus 0 financing for 60 months on the 2019 pacifica limited. Financing for 60 months on the 2019 nongmo, made with naturally sundown vitamins are all sourced colors and flavors and are gluten dairy free. Theyre all clean. All the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. The east tech west conference is an annual invite only tech retreat held in china. Now in its second year the event is bringing together a guest list of the worlds most influential tech leaders in Artificial Intelligence, 5g wireless and much more our own deirdra bow is a joins us live with the latest there. Deirdra, a lot of characters a lot of companies very much in focus there. Whats the scene been like absolutely. You know what, dom, a lot has changed since last year but also a lot hasnt the trade war is still top of mind for many of the participants here. Now, more than a year in, the landscape has shifted for chinese and u. S. Companies alike. Now, amid reports that the Trump Administration is going to grant another reprieve for huawei the companys chairman, a keynote here, was defiant today, telling us that the u. S. Blacklist has a limited impact and it will hurt u. S. Companies more. He added that his company has yet to have any contact with the administration now another major topic here, dom, no surprise, is Artificial Intelligence now, microsoft is actually working with chinese institutions and government on facial recognition initiatives a touchy subject, especially given washingtons rhetoric regarding human rights abuses. Now i asked microsofts ceo and chairman of the Greater China region how they balance those initiatives here in china with the ethics that they set out in redmond, washington. A. I. Through a set of principle and microsoft and our president decided that microsoft, we will have and we will make sure that we operate under those principles we have six of them. And very strict around transparency and security and privacy. And so we have to stay core to that now, dom, i also spoke to the ceo and cofounder of pony a. I. , an Autonomous Vehicle startup based here in china with funding from sequoia china, part of our parent company, i asked him who and where we were going to see a fully Autonomous Vehicle first, was it going to be in the u. S. Or here in china, he actually told us that it was going to be in the u. S. Because the regulations are further along. Back over to you. Deirdra, its also its not just 5g wireless or whats happening with Artificial Intelligence, its also about the general tech climate there as well, as well as what maybe the headlines coming out of alibaba, their pending hong kong listing. How much is the hong kong conversation and the unrest there playing out . Is it having an impact on some of the Big Tech Companies youre speaking with out there in east tech west . Hong kong is only 50 miles away from here certainly theres a lot going on so that is certainly coming into the conversations here everyone here, as we talk about ipos and the next generation of disrupters in technology companies, alibaba ipo is top of mind a source familiar told me today that the company will not be holding an investor luncheon very typical of hong kong listings theres a lot of thoughts that may have to do with the protests and the unrest they say its because alibaba is such a wellknown entity theres also hopes here among the Chinese Companies that alibaba coming home to hong kong will encourage other companies to list and also for retail and institutional investors. Thank you very much. Coming up on the show, a new electric mustang suv is one of these things not like the other one . Ford ceo will pitch us his companys latest vehicle when Worldwide Exchange comes back right after this 57, make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. To take care of yourself. But natures bounty has innovative ways to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. Welcome back good morning and happy monday, phillip. Dom, good morning to you. Four people are dead and six more injured after a shooting at a Football Watch Party in fresno, california according to authorities, about 35 people were in the backyard watching a game when one or two suspects snuck in and opened fire into the crowd. No children were injured Authorities Say it is very likely this was a targeted shooting police have not yet made any arrests. Critical week ahead in the impeachment inquiry as a wave of witnesses prepare to testify in front of cameras possibly the most pivotal appearance is the ambassador caught at the center of this political fire storm, Gordon Sondland is scheduled to speak on wednesday the envoy to the European Union is the only witness expected to appear with firsthand knowledge of President Trumps push for investigations into his political rivals this weeks hearings will begin tomorrow morning with four witnesses scheduled to testify. The mayor of south bend, indiana, is officially a democratic frontrunner. In the first state to get their sa