Friday, amazon and more. And nothing to prove ford bowing out of a deal with the cyber truck as Worldwide Exchange begins right now good morning and welcome to Worldwide Exchange. Im dominic chu. It is wednesday, november 27, 2019 and one story that you will be talking about today, the astonishing finish to last nights duke and steven f. Austin basketball game, a big congratulations to the lumberjacks. They were i think a 27 point underdog knocking off the top team in the country. Congratulations. Stock futures indicating the dow will open up slightly higher again. It is coming off its 14th record close of the year. The s p seeing its 25th record close year to date stocks are now on pace for their best month since june. As you see here, the dow would open up about 70 points if the futures gains hold ten year note yields still hovering right around the 1. 74 mark you can see here a slight tick higher, 1. 741 the last trade there. Let us go worldwide. In the asian trade overnight w did see a bit of a mixed session but still generally positive hang seng up 0. 1 . In european trading, positive there as well. Pretty much green across the screen dax up half of 1 . And ftse 100 in the uk up onehalf of 1 lets get a look at some of the other top stories. The latest read on Industrial Production in china coming in overnight, profits shrinking at their fastest pace in eight months done nearly 10 which tracks with continued drops in Producer Prices and exports over that same period. Officials are partly blaming the ongoing u. S. china trade war and speaking of trade, President Trump telling reporters at the white house yesterday that the u. S. And china are, quote, in the final throes of a very important deal later adding in an interview with bill oreilly what is holding up an agreement being reached. Me. Im holding it up. Really . Yeah, because it has to be a good deal. We cant make a deal that is like even. I told that to president xi. Were so far down that we cant just make an even deal we have to make a deal where we do much better because we have to catch up. Hong kong listed sharesever ing of ali baba raise more than 3 as you see there. It puts the stock price around 9 9. 6 above its initial listing price. Back to the markets and the recent rally joining me now is dan david founder of Wolfpack Research and dan, i got to say as we talk ali baba, the whole u. S. china trade scenario, one thing that we are paying close attention to is whether or not the ali baba trade is indicative of what chinese firms may be doing in the future just listing in hong kong fair to say this is a hedging type scenario . Well, i think it is indicative of what other firms will do, though to be fair, ali baba probably planned to do this for a very long time this is where ali baba wanted to list in the first place. They couldnt do that because of the Hong Kong Exchange wouldnt accept a dual class structure. They have since capitulated and now they do. It makes sense for ali baba to be on the Hong Kong Exchange can where Mainland China investors who use their platform can buy their stock. So they have the best of both worlds they had the highest ipo in New York Stock Exchange history. And now they are 500 billion New York Stock Exchange. You can add another 13 billion to that in hong kong and it does hedge against the trade deal where things going south when you talk about what senator marco rubio is doing with the equitable act and possibly delisting chinese equities so lets talk about the chinese equity picture right now. There is a sense that perhaps everybody is getting caught up in u. S. china trade. Is this a scenario where investors can still feel confident about investing in Chinese Companies given the current climate . I dont think that we have a choice there is so much liquidity in the market and so much money out there, it is the only game in town is to invest. And were being pushed to china more and more. Im not comfortable with it. I dont do it simply because there really is no rule of law against stealing from american investors. And that has not been fixed. And it is not really being addressed in phase one of the trade deal so im not happy about that. Are you confident phase one, rumblings of a possible phase two or three down the line are you a person who believes that this is going to get resolved anytime soon . Im not somebody who believes that there will be a phase two if there is a phase one. I would give President Trump all the credit in the world in the first place for doing something the past two administrations largely didnt even attempt. To get any kind of pushback against china has been fantastic. But to thousanow get into this o phase one that helps china largely as much as it does us, and i heard President Trump saying it has to be unequal for on us. Because what im seeing in phase one doesnt seem as unequal for us as i had hoped. Currency manipulation, that helps them i mean, really when we say china is a currency man ipulator, they are because they defend their currency it stops their consumer buying power. So their consumers have less buying power at eight or thine versus seven so it helps them as much as it does us. And the other parts of this trade deal are not great with our Foreign Investment being able to buy private companies in china and real estate when they are in a bubble territory when chinese banks are going bankrupt and now they are saying buy some of our real estate that is a bad deal for us. And it shouldnt be a part of phase one. More a part of it should be some of their judicial changes. All right dan david, thank you very much boeing suffering another potential setback in its effort to return the 737 max to commercial service Frank Holland is join being us with the latest there. And the faa says it will keep controlbeing us with the latest there. And the faa says it will keep control every one built since the planes were grounded back in march. The faas move could make it more unlikely that the agency will recertify the max this year allowing boeing to return to service as soon as january the faa issuing a statement yesterday saying that it has not completed its review of the 737 max sdidesign changes and train. And it will not approve return to service until numerous rounds of rigorous testing. This is the third time that the faa says it will take all the time it needs to ensure the planes are safe. Earlier this month, bo suggeeing suggested that some deliveries could start late december and that prompted the head of the faa emphasizing the regulator fully controls the process boeing is down fractionally today, but the stock is up 15 this year. Frank, thank you very much. And when we i doncome back, lat for xeroxs push for hewlettpackard. And plus ford closing the book of any possible apples to apples dual with the new cyber truck. And later on, an exclusive with former sears chairman and ceo Arthur Martinez. Danafarber Cancer Institute discovered the pdl1 pathway. Pdl1. They changed how the world fights cancer. Blocking the pdl1 protein, lets the immune system attack, attack, attack cancer. Pdl1 transformed, revolutionized, immunotherapy. Pdl1 saved my life. Saved my life. Saved my life. What we do here at danafaber, changes lives everywhere. Everywhere. Everywhere. Everywhere. Everywhere. 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. Happy veterans day. Happy veterans day. Happy veterans day. Happy veterans day. Student veterans of america champions those who have served and also prepares them for their next chapter in life. 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The company cutting its full year revenue outlook as its pc business deals with a shortage of chips from intel. As a result shares down 4 in the premarket trade still to come, a worldwide exclusive with arthur marty sneez martinez im a regular in my neighborhood. Im a regular at my local coffee shop and my local barber shop. When you shop small you help support your community from after School Programs to the arts so become a regular, more regularly. Because for every dollar you spend at a Small Business, an average of 67 cents stays in the community. Join me and American Express on Small Business saturday, november 30th, and see how shopping small adds up. 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. Black friday is just days away, but the deals are there as consumers have come to expect, they are coming earlier than of ever and there are steep discounts on thanks giving day itself and that is where Brian Sullivan started his conversation with Arthur Martinez formerly with sears. Thank you very much for joining us first off, what are your macro expectations for this Holiday Shopping season given sort of the calendar issues between thanksgiving and christmas, six fewer days, but also a very strong consumerled economy . Well, im actually quite optimistic about holiday sales although it is a shortened selling season, there is no question that many retailers have already pulled the trigger on the promotional activity that would normally occur on black friday but the economy is in pretty good shape employment is high, wages are stable certainly and consumers are in a good mood there will be i think a 4 to 5 increase in sales over the holiday trading period led by online sales which i think will be in the mid teens which would mean that the traditional brick and mortar would be flattish to plus 2 . But i think at plus 4 , 5 , everybody will feel pretty good about the holiday. And i dont want to slam the big story on friday, but given that ive been seeing ads for black friday basically running all week, does black friday hold the place in retail that it used to it still does because it is in the consumer psyche that Something Special happens. And of course the very early openings on thanksgiving evening had to the craziness of black friday so i would say it is more of a Consumer Mindset than it is an actual p l or black and white kind of opportunity for the retailers. When you look at cyber monday as the weekend extends, you are really looking at almost a seven to ten day period of concentrated promotional activity that sets the tone. And of course it has really been the last decade all about amazon but it feels like this year may be just a little different feels like some of the traditional brick and mortar retailers, the targets and walmarts of the world, feels like they have gotten a little bit of their mojo back or is it still all about amazon . It is not all about amazon. I point with some admiration to walmart and what they have achieved in responding to the amazon challenge the last Quarter Results there, online Digital Sales are up 40 which is an astonishing numb target is also doing extremely well people have realized that amazon is not going to own the world. There is a balanced place in the marketplace for retailers who have both bricks and mortar and online businesses. The trick is to find the right balance and i think walmart is a great example. I know it is hard, but your best guest, where do you think that that customer is coming from, are they stealing that customer there amazon or someone else or is this sort of a new net add . Well, i think that it is actually their customers learning that they can shop online and have the same kind of selection and service that they get if they actually go into the store. And obviously you referenced walmart and target anybody else out there that you see from your Vantage Point that you say hey, that company, they are doing it well . I have to give it to the value retailers. Tjx and marshals without a significant online presence, they still bring consumers into the stores for the Treasure Hunt that they represent. They continue to knock it out of the park with Revenue Growth and one who has risen from the theyre dead is best buy they have responded extremely well and have reported their latest quarter very solid sales increase and the t. J. Maxx of the world have done well because i believe that they are buy a lot of inventory for relatively inexpensively as other stores close down lord and taylors of the world or sears. Do you see the trend of retail slowdowns slowing down at all . I think that were in a very darwinian period for retailers survival of the fittest. So i see continued consolidation in retail. I see retailers falling into an old trap which is buying inventory into a trend that they wish they had as opposed to the trend that they actually have. And do sears and jcpenney have a future . I think sears, which is a very sad story for me personally, is on life support and will not survive much longer the reorganization under the bankruptcy proceedings will not produce a vibrant vital retailer that can survive jcpenney has a little longer in its lifecycle. But they are burdened with far too many stores in c and d malls around the country and it will require severe and dramatic action to shrink their expense base to be commensurate with their physical footprint so i think that they will be a longer story to play out, but im not optimistic about them either in the very long run. For more of brians conversation with Arthur Martin martinez, you including his take on the future of the american mall, just head to cnbc. Com. Still on deck, how alexa assistant is a little more human . 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The firefighters are hoping for some rain from a cold front that is moving across the state and beware of the butter ball blaze the Consumer ProductsSafety Commission is releasing this video as a warning there were about 1600 home fires on thanksgiving two years ago and they are warning people to thaw their birds before keep frying them because you a frozen turkey in hot grease will explo explode. And a bit of advice, fry them outside. Thank you very much, phillip. When we come back, tiktok on the defense as u. S. Regulators step up into content censorship and tom lee will join us when Worldwide Exchange returns introducing a razor that works differently. The Gillette Skinguard has a guard between the blades that helps protect skin. The Gillette Skinguard. 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 cle