Years. Worldwide exchange begins right now. Good morning, good afternoon, good evening and welcome im Brian Sullivan it is tuesday, december 3. Call it nato day averages coming off the worst day. The dow dropping more than 200 points on monday we are not regaining what we lost but not in the red either we are seeing dow futures up about 56 points right now. At least right now, we are seeing the markets hold up but there are new trade fears out there. Potential tariffs on france. The bond market, the 10year yield stuck at 1. 82 around the world in asia, the japanese market cooling off, down about half a percent. The sang high comp up and hang seng down but only fractionally. In europe, things are higher viewers probably fixed on the President TrumpNews Conference we saw lets saw with europe. France, responding to President Trumps latest tariff threat the finance minister saying the u. S. Threat on france is, quote, unacceptable and not what one would expect from an ally adding that the European Union is ready to respond shares of French Companies are responding they are down across the board they are all down 1. 5 to nearly 2 the threat of tariffs on goods on champaign to handbags, cheese and wine follows an investigation into the tax regime claiming the digital tax discriminates against the American Companies unfairly. This comes after President Trump reignited a separate trade war against argentina and brazil saying hes raising tariffs on the steel in those countries calling it a massive devaluation of those companies wrapping up a meeting with the secretarygeneral. We have full Team Coverage on the ground Buckingham Palace and Charlotte Reed the president covering a lot of ground in the sit down today that is right he was meeting and talking publicly about some of the issues that have been very core center of nato the challenges for the 70year old alliance that should be being celebrated here in london what he had to say about president macron, very, very key here a couple of weeks ago, the french leader gave an interview and described nato as essentially brain dead that was a lot about the idea that the u. S. Has stepped back from the alliance and is no longer leading from the front. We are seeing these actions around syria that is what the french leader was unhappy about. Here is President Trump responding to that statement it is a tough statement that is a very, very nasty statement to essentially 28, including them, 28 countries you have a really high Unemployment Rate in france. France is not doing well economically they are starting to tax other peoples products, there for we are going to tax them. That is taking place now on technology and we are doing their wines. Thats a tough statement to make when you have difficulty in france you look at what has happened with the yellow vests and what is going on during different parts of the season. Theyve had a rough year you cant go around making statements like that about nato. It is very disrespectful another acknowledgment from the president , he also said hes going to be meeting with Boris Johnson. The optics from the British Government is not one they are keen to promote. They dont like the idea of President Trump and Boris Johnson being in the same room because politically, President Trump is toxic here and is the center of an attack line by the labor party in the past couple of weeks all right, willem thank you very much. Lets turn to the other side of the story and send it over to charlotte for a look at what we can expect from President Trumps face to face with emmanuel macron. It is fair to say this meeting has gotten interesting given some of trumps comments thats right. There is a question to figure out what spirit President Trump would come in. Now we know. A pretty punchy conference here. President trump quite critical about the digital tax in france. This came after the u. S. Trade department put out a list of goods that could be put on tariff about 100 . This is a conclusion of an investigation that started in july when the French Parliament put on a 3 tax on those that make over 700 million in revenues in france they came an agreement at the g 20 summit to put the oacd in charge President Trump was on board at the time now the u. S. Trade deposit published a conclusion of the investigation that started in july with this list of products like champaign and leather goods. We have to wait and see if President Trump wants to impose those tariffs. After this press conference, there is little doubt how he feels about it no doubt this will be on the table. The ambassadors residence here at 3 00 p. M. London time actually, charlotte i dont do very well with twitter on the other side. Im not necessarily in love with those companies. They are our companies they are American Companies. I want to tax those companies. They are not going to be taxed by france. France put a tax on them it was totally out of the blue we are going to tax those companies. If anyone is going to take advantage of the American Companies, it is going to be us. There you had it, President Trump here at the press conference here in london ahead of his oneonone meeting with president macron this afternoon. That should be a very interesting one. Well keep an eye on it. Charlotte, really interesting comments there you got a big day ahead. Thank you very much. Not to be outdone by europe, do not forget this little u. S. china trade war thing there looks to be another ramp up Chinese State media says the government is preparing a black list of what it calls unreliable entities that could lead to sanctions. The reaction is in response to a bill passed. Beijing has been threatening to release the list since may we are just getting started. Is yesterdays market drop a sign of things to come maybe not says our next guest unless one thing happens if a trade war was not enough to spin your head, trump out with any criticisms of fed chairman jay powell and one of the most influential energy voices. Why this years opec summit may be the most intriguing in years. We are back after this welcome back it is 5 12 i told you futures were higher coming off yesterdays market down turn. I stand corrected. Over the commercial break, futures went negative. Why . New headlines from the president. Saying, quote, i have no deadline on the china deal and may not be until after the 2020 election the president saying, hey, maybe it is better to wait until after the next election. Those headlines crossing moments ago and that pushed futures from being up about 0 points to down about 40 points. A 70point swing that is why trade matters. Our next guest says trade matters as well. Chief Market Strategist who joins us now matt, listen, these on again, off again headlines out of china. I dont want to say the market is used to them but theyve been going back and forth now a better part of a year and a half you believe the markets can hold up here in the face of that unless trump follows through with these big european tariffs. Yes that is something that markets really arent pricing in now we worry about the december 15 tariffs with china and whether he might put it off until after the election or does he decide well enough progress has been made there is no question that the situation with europe is something we have to be concerned about. We also saw a situation with their Interest Rates ahead of the negative Interest Rate policy which has been killing their banks is not something they are as high on under draghi that has stayed low because of negative Interest Rates in europe and around the world. If those go up, that means our Interest Rates will go up a little bit anyway. It wont be because of a better economy. That is not necessarily a good combination. If we get a combination of the december 15 china tariffs and these new proposed tariffs on french goods, what happens to stocks they get clobbered. Define clobbered. I mean, at least 10 from the highs. At least it wont open that way when it happens overnight. I believe that is going to be something that a lot of people are focused on first of all, it is priced in that this is not going to happen number one and number two, a lot of assumptions that we will get a phase one deal if we dont get that, that leaves the uncertainty out there and a lot of the capital down. It wont be just a short term situation. It will belonger term situation. Last year when powell came out and made negative comments about Interest Rates and how they could go up for some time. It is weird it would happen the same date as this year as well we get all those things and the 10 market down turn that was on a more hawkish fed the problem is and correct me if im wrong. Im not making a statement, im asking a question. Priced to perfection or at least the markets had a good run valuations cannot support any kind of a big trade war with europe is that really the issue yes we dont have the valuations we saw in the year 2000 they are still very, very high they are not higher here than other places in the world. Europe has been lagging badly. Their valuations are kind of near where ours are. They dont want further tariffs to hurt their economy further. Exactly. What you said is right we are priced for perfection and tariffs not coming on and the economy doing better next year if we get a double whammy, that will be very, very hard too. I appreciate that to be honest, im not sure what i said you laid it out. We get both tariffs. December 15 on china the market gets clobbered. Scenario two, we get december 15 tariffs and we dont get europe. Then what . The december 15 tariffs are a big problem. Again, we have a different situation with the fed we dont get the deep 20 . We get that deep correction from last year. Near that 10 movement it will be closer to that 10 . The assumptions will be at least a phase one deal definitely no further tariffs. People are hoping for the roll back of tariffs. On top of that, add tariffs. That will be a problem scenario three would be trump is bluffing. Maybe they push it back a few months and we dont get tariffs on europe. The situation weve got right now. Does the market keep going higher in that scenario . As you say, the market is already priced for perfection. We could have a little dip but it will bounce back. The scenario where people say it could melt up from here. If you are way ahead of the market, you stay ahead if you are behind, you have to play catch up. Other than that, i think weve seen an unbelievably strong move here it is up just 8 the markets over the bottom and valuations have stretched a little bit maybe a little higher if some of these threats again are just head fakes we close somewhere at the end of the year where we are right now. I love it you laid out the three scenarios. I know these comments are breaking is there one safe place to hide. You want to stay fully invested in the market. Do bioteches look like a fairly safe haven right now they do they are overbought. They got hit harder than the rest of the market yesterday they could pull back a little bit. We have a situation where i think it was fairly obvious with what happened with senator warren she came out too hard on the health care for all and health care in general. We saw how shes fallen pretty significantly in the polls the last few weeks and how shes reacted to it. Shes pulled back seeing this is not a winning issue. That head win facing the group is behind it it can move higher as we move into the Election Year and beyond matt, you are like tom brady. You through the audible. The markets are turning down you roll with it have a great day you do. Thank you. Still on deck is your kid on tiktok, a user claims her data is being sent to china. 1. 2 trillion. The number opec claims to have in reserves. Well have a preview of the big opec meeting and reasons why it is one of the biggest in years futures down 85. We have a lot to do after this woman friction points, those obstacles that limit a companys growth. I try to find companies that turn these challenges into opportunities. Its these unique companies with Creative Business models that will generate value for our investors. Thats why i go beyond the numbers. That will generate value for our investors. Thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. Welcome back if you are just joining us, we had a fairly dramatic turn in just the last few minutes or so. Futures began to show they are higher now they are down 85 points. Moments ago in the uk, President Trump said this about china trade. I have no deadline, no. In some ways, i think it is better to wait until after the election if you want to know the truth. I think it is better to wait until after the election with china. The audio no perfect there. What he said was, maybe it is b better to wait until after the 2020 election for a deal with china. The deal may have to wait until next year even after the ee Election Health insurance, software and biotech deal United Health expects earnings in 2020 to come in largely below current estimates but right now above estimates. Kind of like shares of the news balancing out stocks shares of coupa off 3 your big mover of the day. Shares of audentes are doubling. Astellas to buy for 60 a share or 3 billion cash the drug being veefldeveloped to treat a rare neuromuscular disorder straight ahead, what ceos are doing again that may tick off some Share Holders is jet gate back futures are off 88 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. Breaking news, there may be no trade deal deadline President Trump saying the deal may not happen until after nchlt years election. Stocks dropping within minutes of those comments. Could opec safe the oil and gas industry would they want to the executive director of the iae will be with us in moments and hanging it up. Keeping corporate jets off the radar sparking a big jet backlash Worldwide Exchange rolls on right now. Welcome back and good morning. Thanks for being with us on this tuesday, december 3, 2019. The morning got a lot more interesting. Stock futures did about 100point round trip after the president said he has no deadline on a china trade deal listen to this i have no deadline, no. In some ways, i think it is better to wait until after the election, if you want to know the truth. I think it is better to wait until after the election with china. Joining us now, the cnbc contributor with us. These comments moments ago we are running on the fly here it is a busy morning futures are down 107 are the markets overreacting a bit because weve never had a trade deadline yes, we have december 15 but that had been moved back i think these are some of the first comments about pushing any kind of a deal back until after the election. Listen, pretty much every bullish forecast i have heard for next year involves at least a trade war pause if not a trade deal the last 24 hours have not felt very pause like or very deal like it does not shock me that president has said this might not be until after the election. In the end, i dont think any phase one deal with china will go over very well. Washington, d. C. Wont be particularly strong especially given all of the security concerns it doesnt shock me and markets are surprised. I tell you what, to your point, in the last 24 hours. We just got those comments that maybe wait until after 2020. That is new. In the last 24 hours, we have real threats of tariffs on european goods and tariffs on imported steel and aluminum from brazil and argentina not only did we get a roll back, we got a ramp up we should be asking why the markets arent down more lets say we have a phase one trade deal given what we just saw with brazil and argentina, there is no such thing as a done deal the president can always return to say i dont like Something Else you are doing lets go back to tariffs it is like a forever trade war again, the last 24 hours suggests that is really a meaningless hope i dont mean this to be insulting. It is like a parent child relationship where the parent keeps threatening one thing. At some point, does the child stop listening im not calling them children but do they say, youve cried wolf too many times or do they really have to listen to these threats and take them seriously . I think given that the president has actually put tariffs on countries, he hasnt just threatened it really, that is the core of the trump economic agenda. I would take that very seriously. If there is something weve learned is that getting trade deals is very difficult but the president starting trade conflicts is easier than what people thought it was. It remains a poet ant and easily grasped tool the president also today making comments about taxation for our viewers that maybe are not familiar what the p