Good morning. Welcome to Worldwide Exchange. Im sara eisen. Im wilfred frost. Good morning to you from me as well. Lets check in on the Global Markets on this final trading day of the month. What a month its been. A strong one for stocks. The dow jones outperforming the s p, up more than 5 for the month. Futures indicating a higher open. Dow futures up 22. Oil has a lot to do with that, i would say. S p futures up 2. Nasdaq up 1 1 2. Yesterday the close was stronger, but just barely. A mini rally, not a full recovery from what we saw the day before. The russell ended yesterday lower. It has been the outperformer so far for the month. As for the price of oil, just mentioned some strength. Well get to vienna in a moment. Its been an actionpacked morning there. Some comments, positive ones from key members like saudi and iran helping to lift crude prices. Wpi surging 5 . Brent pore than 5 , 48. 91. Wti, 47. This after a selloff yesterday left wti below 46 a barrel. I put this 5 gain, the optimism around it we were down about 4 yesterday. Well get out to Steve Sedgwick in about five, ten minutes. Hes spoke ton an to all the ke players. I would say the Iranian Oil Minister was less optimistic than the saudi oil minister. But both talking about a deal. The german index 0. 2 . Ftse 100, up 0. 2 . Banks moving around there. Rbi down 2 , 3 after it failed the stress test and feeded nee raise capital. Most of those results coming in line with expectations apart from rbs. As you can see, italy outperforming today up 0. 7 . Asian trade. The Mainland China market a bit weak. The chinese yuan is down 1 over the last week or so. So there is talk of possible pboc intervention at some point. Shanghai comp down 1 today. The tenyear treasury note yield, some selling in treasuries pushing yields higher again. 2. 32 is where we are on the tenyear. Got that 3. 2 growth for the third quarter. How does that bode for the Current Quarter . Looks like yields are stronger. The dollar has been stronger all month long. Doll dollar yen has been a big mover, above 1. 13. A stronger dollar, a weaker yen. As for the euro, its weaker. Dollar strength there as well. Just back above 1. 06. The pound also sort of flattish, 1. 2485. Gold suffered heavily this month on the back of that stronger u. S. Dollar. Worst month in years for gold. Its weaker again by a quarter percentage point. 1,118. 30. The dow this month up 5. 4 . S p up 3. 7. Nasdaq 3. 7. The russell 2000 up 11. 5 . Thats been the story of the month as has been a stronger dollar and rising yields. You would say the last week or so has seen the momentum of those moves come off a bit. Also some sector rotation. Banks come back after a strong run. Clearly huge gains. The election has been a positive factor for risk assets. But we are just in momentum. Theres two schools of thought as we interview strategists, investors, on whether the trump rally, as its called, can continue, and whether it has momentum. The first is theres too much built on hope here, hope of a ro rollback in doddfrank, boost in fiscal spending that will boost inflation and growth. Hope of lower Corporate Tax rates, hope of lower personal tax rates, we dont have a time frame on that policy, a map on whether it will look like and whether there is congressional support for it. There are those who are skeptical and also those who are saying were coming off an economy already Building Momentum back. We got that in the gdp and Consumer Confidence anybodies. Th numbers. But this could be sustainability. Stan druckenmiller was saying yields could shoot up, the dollar could shoot up, and you could be talking about a stronger u. S. Economy. The banks rally because the yield curve moved, thats what theyve been waiting for. Some areas like that thats understandable. Whether we see a rally, for me, comes down whether the rise in yields is for the right reason, growth and inflation is coming, or the wrong reasons, spending is inefficient and Central Banks will not be able to keep rates low artificially. We had a big rally in a short time. I wonder if we had too much of a rally. Also end of year, which tends to be bullish. Well have to see when the clock resets in january, especially after inauguration and we see what we will get out of this trump administration, where the sentiment is. Watching the banks and industrials. Now to politics and the intersection here with business. Wall street watching today president elect donald trump expected to announce two key cabinet positions. Treasury secretary and commerce secretary. John harwood is at trump tower early this morning in midtown manhattan with more. Weve been waiting for these two for a while. Thats right. And you guys were talking about positive economic news. Its clearly a big day for donald trump and his Economic Team on two different fronts, personnel is only one of them. As you said on treasury, as expected, donald trump later this morning it going to announce that Steven Mnuchin, former Goldman Sachs partner who headed up fund raising operations during the campaign will be treasury secretary. He joined the Trump Campaign in april. Had done some business with trump, he had contributed to democrats in the past, that sort of thing, but he will be the treasury secretary. And wilbur ross, the billionaire investor, someone familiar to viewers of our network will be the commerce secretary. Both of these men are billionaires. They both have connections to donald trump, mnuchin through business deals. Wilbur ross is a neighbor of donald trump, has a mansion near the estate of trump. And donald trump has persuaded carrier not to move operations to mexico. Donald trump said his economic policies, lower regulation, lower taxes on the corporate side would be good for carrier, so they decided to stay, also taxpayer incentives that the state of indiana governed by mike pence still, are giving to carrier, over long run a free market economy cant buy its way into keeping jobs that are less efficient to keep them in the united states. Nevertheless, this is good news symbolically for donald trump, good news for the 1,000 workers whose jobs will be preserved in indiana. So the trump team will be celebrating today. Lets talk about these appointments. He could have picked two people for these roles who are on one level more protrump and on another level more pro wall street . Will this see a lot of people applaud in the Investment Community . Its certainly going to make the Investment Community and wall street happy. People who they know well who they get with for years. The question is whether or not it will make the populist supporters, those blue collar voters who backed donald trump, whether they will see it as somebody who is on their side. Wilbur ross gained reputation as the term vulture investor buying distressed companies. That involves austerity moves, cutting jocks to make them more profitable. Donald trump is a billionaire himself. He is someone who managed to persuade those workers that hes on their side. By coupling this carrier news with the economic personnel appointments, id say he pulled something off here. It was stunning to see the coo and president of Goldman Sachs, gary cohn in trump tower yesterday, right before the election there was a Goldman Sachs bashing commercial for trump. Steve mnuchin exGoldman Sachs. The fact that trump as a candidate may be different than trump as candidate may be an encouraging sign to those on wall street and a lot of the establishment. That is true, sara. Even as a candidate, donald trump was proposing policies that were good for wall street. He was talking about big tax cuts that are tilted towards people at the top of the income scale, talking about reducing regulation, getting rid of doddfrank, getting rid of obama caring all things that many in business complained about. So the policies were friendly that. He coupled that with persuading Blue Collar Workers that he was on their side. If he can sustain that, that is something that will serve him well. The question will be when he gets around to implementing those policies, do those workers, beyond the 1,000 who were saved for carrier, do they see him as doing things to benefit him. He was seen having dinner last night with mitt romney. How important is it that he might get someone who may challenge him a bit . And how many courses did they eat . As usual, the pool was able to track them down last night. I think it is a decision that we simply dont know how its going to come out. Mitt romney is somebody who would be symbolically a gesture towards the whole team of rivals idea, just as Hillary Clinton was to barack obama in 2008. He is somebody who bitterly criticized donald trump during the campaign. You have aggressive factions within the trump transition pressing for rudy giuliani, pressing for david petraeus, bob corker was here yesterday, when he came out, bob corker is the chairman of the Senate Foreign relations committee. He came out and said its very important for the president elect to have a secretary of state with whom he has no daylight between them. Thats not a prescription for mitt romney, but its Donald Trumps decision. Dont expect to get it today. But were watching. Absolutely. Romneys statement praising the president elect was certainly different than what we heard from the campaign. Thank you. Quite different. Quite different. A programming note here. Do not miss a first on cnbc interview with the man of the day, Steve Mnuchin and wilbur ross. Thats happening at 7 00 a. M. On squawk box. Certainly one not to miss. Outstanding stuff. The other big story this morning is the opec meeting. Steve sedgwick joins us live from vienna with the latest on that. Oil prices up about 5 today. Steve . Thank you very much. Its quite an extraordinary last hour here. A lot of the pessimism of the last 24 hours, 48 hours has dissipated. There seems to be an air of confidence among the ministers that something is happening. The kingpin of opec is the saudi oil minister. We caught a few minutes with him and he sounded optimistioptimis. I hope that we will have a deal, but we will not know until the end of the meeting. What are the major Sticking Points to a deal, sir . The Sticking Point has been and continues to be that each and every country will have to agree to the principles that production can strengthen agreement bringing us close or at the 32. 5 that was adopted in algiers. It will have to be distributed transparently equally, a mechanism to monitor to insure full compliance, and then to ensure that nonopec will join in with substantial amount of cut that will add to what opec is offering, the 32. 5, its going to be above 1. 2 million. Close to 1. 4 based on the latest production volumes. Hoping for 600,000 from nonopec. That will be substantial volume that i think will bring health back into the market. Contributions from elsewhere, not just from the gcc or saudi arabia, but also perhaps a freezing from iran as well, which is one of the big Sticking Points before this meeting. If they can get 600,000 barrels from nonopec, thats a substantial amount of oil to come off the table and aid in the rebalancing. These are still Big Questions about who will do it, over what time frame and from what levels they are taking cuts from. Many estimates are that from november, production even ramped to 34 Million Barrels a day to 35 Million Barrels, to get down to 32. 5 million, thats a long stretch. I spoke to bijan zangeneh, the Iranian Oil Minister, he seemed to think there was a lot of details still to be worked out. And where exactly the presanctions level was remains to be seen. Its a contentious issue where you take your benchmark. They also talked about russia, russia not just freezing, thats what russia talked about previously, but actually cutting in production. Lots of details still to be worked out. The market likes it at the moment. Steve, great stuff. We have to leave it there. Great coverage. Well let you chase down those opec ministers, nobody does it like you. Excellent training on the rugby fields for that meeting. Moving on, bank of england revealing the latest results of its stress tests. Three banks failed, royal bank of scotland is the biggest loser. It failed the test and also required to raise more capital. Plans for which have already been submitted and accepted. Barclays and Standard Chartered also failed to meet some requirements. The share price, barclays and Standard Chartered not moving too much to the down side. Overall the bank of Englands Mark Carney said the bank of england is in good shape and could keep lending even in a situation of economic turmoil. These tests were submitted in march. They dont contain the brexit vote in june. Heres mark carney. Overall eu membership has increased the economy, facilitated dinavism, but also created challenges. Looking forward, the november adp report is out at 8 15 eastern. Read on private sector jobs. Followed by october personal income and spending numbers at 8 30. Then at 9 45, chicago pmi. At 10 00, october pending home sales. This afternoon, the fed will release its monthly beige book report at 2 00 p. M. Eastern. Always a good read for some color around the fed driktds. A trio of fed officials are speaking today, powell, mester and ckaplan. Dont mi coming up, Oil Prices Spike as the secretarygeneral hints a deal will be reached today. Thank you for calling. Well be with you shortly. Yeah right. Xerox Predictive Analytics help companies provide a better and faster customer experience. Hello mr. Kent. Can i rebook your flight . Im here xerox Customer Care services. Soon to be conduent. Wait im here mr. Kent . gasp shark diving xerox personalized employee portals help Companies Make benefits simple and accessible. From anywhere. Hula dancing . Cliff jumping xerox Human Resource services. Soon to be conduent. Generosity is its oyou can handle being a mom for half an hour. Im in all the way. Is that understood . I dont know what shes up to, but its not good. Cant the world be my noodles and butter . Get your mind out of the gutter. Mornings are for coffee and contemplation. That was a really profound observation. You got a mean case of the detox blues. Dont start a war you know youre going to lose. Finally you can now find all of netflix in the same place as all your other entertainment. On xfinity x1. Welcome back. Oil prices are spiking as the secretarygeneral is promising perhaps a deal today. Charles, good morning to you. It seems a deal is potentially on the cards today. Not totally confirmed. Whats your latest reading of the headlines that have come out of the meeting . Were not surprised. We feel this is really last chance saloon if youd like for opec to reaffirm cohesion and credibility. This deal is needed as much for opecs credibility Going Forward as anything else. We still have to understand the mechanisms. Thats the crucial Sticking Point for previous meetings, where they have fallen apart at the last minute. Its not a done deal. Given those high stakes you laid out, more than just a shortterm move on wti, what are the implications if they dont reach a deal . If a deal is not reached, well have further softness in the markets and we will continue to see under investment. We lost a trillion dollars of investment in this down cycle. That will have severe implications for future cycles. We need to pick up the rate of investment if were going to stop oil prices from spiking during that time frame. Very important we get the right signals out of this opec meeting. We all obsess in and around an opec meeting about oil supply, but also talk about demand picking up next year. Whats your view on that and with it your expectations for where oil prices go into next yea year. Of course it doesnt help with the weather you have in new york today. Luckily its a bit frosty here, mr. Frost, in london. We do see the opportunity for oil markets that are tighter than most people anticipate at the moment. As we go forward into next year, we should see the markets inventories starting to draw, very significantly. If you look at the data, oecd crude inventories have been drawing since may. This is a market, if you start to take 1 Million Barrels, 1. 5 Million Barrels off the market, you will see 2. 5 Million Barrels of inventory disappearing fast. Sentiment rebounding and investment rebounding, which is needed. We shouldnt be frightened about the Oil Prices Going up and shale investment kicking off. Excitement for us is about this cycle hopefully not getting overcapitalized like the last cycle. So less and slower access to capital should ensure that cost structures and margins are much better so we dont get what we saw from the Oil Companies last cycle, where margins were frittered away by overinvestment. Charles, great stuff. Charles wahl. Coming up on the show, fords ceo, mark fields, speaking out on president elect donald trump, tariffs and trade. Well hear from him next. Coming up, the top stories, including a spike in oil prices happening right now. Youre watching Worldwide Exchange on cnbc. Good morning. Global market alert. Oil prices spike as opecs secretarygeneral promises a supply deal today.