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tv   Worldwide Exchange  CNBC  December 7, 2018 5:00am-6:01am EST

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the roller coaster ride continues. dow futures are in the red this morning, though off their worst levels of the day after yesterday's monster comeback overseas markets are holding strong this morning. coming up some of the best minds on wall street will break down how you should navigate all of the volatility and i'm brian sullivan at opec headquarters. it's day two of the opec meeting. the russian envoy just arriving. will the cartel arrange a production cut deal today after failing to do so yesterday will it be enough to stabilize
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these crazy oil markets? "worldwide exchange" begins right now. good morning welcome to "worldwide exchange." i'm dominic chu. we'll get back to brian sullivan in a few minutes first as you can see, it will be a lower open if things stay the way that they are now. the dow opening down by 121 points off the worst levels of the premarket session. the s&p down by 13 the nasdaq off by 39 points. on the treasury side of things, ten-year u.s. government note yields are still below 2.9%, though they're ticking just slightly higher, 2.88% the last trade there. 2.75% for the two-year treasury note yield on the oil side, it's been fluctuating. we saw a gain early on in the session. now we're seeing oil prices for
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wti off by a half percent. $51.20 the last trade there. ice brent crude, $59.89, off by a quarter of a percent we have breaking news out of europe european union third quarter gross domestic product just crossing let's get to joumanna bercetche with those details >> absolutely. all eyes are on this data ahead of the ecb meeting next week the q3 gdp number was revised down to 1.6% year-on-year, versus a previous estimate of 1.7% coming in weaker this is in line with the price action that we've seen as of late growing concerns about economy slowdown within the eurozone all eyes will be next week on the revised forecast for growth. they're at 2%. the number today is at 1.6%. on the back of that, the currency has dropped a bit the data is slowing going into
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q4 as well european markets are starting off on a brighter note compared to the price action we had yesterday. we have not regained back all of the losses though. we're watching the german market today is also the day where the new cdu leader will be elected now that merkel has announced she will be stepping down. all eyes on that on the macro front and non-farm payrolls. back to you. >> joumanna bercetche, thank you very much for that update. switching back to our shores, fed chair jay powell talking jobs and the economy in a speech overnight let's get to frank holland with those details. >> powell says the u.s. economy is still expanding and has high praise for the job market hours after release of the job report. the fed chairman making those remarks at a rural housing conference in washington late yesterday. the november jobs report is expected to show steady hiring
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and wage growth as well as the unemployment rate holding at a 50-year low of 3.7%. powell saying this about the job market, by many national level measures is very strong. powell also added that the u.s. economy is performing well overall. he did not address monetary policy or the fed's upcoming meeting where they're expected to raise rates for a fourth time this year. the "wall street journal" is reporting fed officials are debating whether to take a wait and see approach earlier this week minutes from the fed's november meeting show members are concerned about the effect trade tensions and rising corporate debt could have on economic growth. some see that as another sign that the fed could hold off on aggressively raising rates in the next year. the news about a potential pause in rates may have been a factor in the market's dramatic reversal yesterday back over to you >> thafrank holland, thank you r much for that. we were down about 50 or 60 points more on the dow side of things just about a half hour ago. currently the dow jones would be
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down by 120 points if these losses carry through to the opening bell the s&p off by 13. the nasdaq down by 38. on the treasury side of things, another check on the ten-year, still below 2.9% ticking ever so slightly higher to 2.88% the two-year treasury note yield about 2.75%. thereabouts, 13 basis points is that spread between the ten and the two-year treasury note yield. as we look at the currency side of things, the dollar index moving slightly higher 96.85. slightly higher. still holding near highs of the year it's been a trend we've seen play out throughout the course of the year. let's look at some individual markets. the euro in particular joumanna just mentioned those out of london. the euro losing steam ever so slightly against the dollar.
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1.1370 the last trade there. dollar/yen, 112.84 pound sterling 1.2768. let's talk more about the markets with mark hargraves. as this market sets up, was there anything that stood out to you about the trading action we've seen so far this week ahead of a big jobs report in the united states? >> good morning. i think it's fair to say it's been a volatile week and hopefully we're going to end on slightly less volatility. obviously there's a turnaround yesterday. that was probably seen as encouragement after a difficult tuesday and a difficult start yesterday. european markets have opened better this morning. the jobs number gives something to focus on. as long as we get relatively near the number, that will be benign the market is grappling with lots of issues >> let's talk about those
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grappling with issues that you just mentioned which stands out as the most important? we know there's situations out where you are now with regard to brexit, concerns over the european economy we have concerns about the u.s. side of things, trade tariffs, everything is there something in your mind that has an outsized effected on what's happening with markets? >> i think we saw it yesterday obviously with the china/u.s. relationship that remains most in peoples minds. the detention in canada, the huawei cfo, that triggered concerns again regarding the relationship the dinner earlier this week was short-lived. and the actions we've seen this week highlight that the u.s./china relationship is a deeply complicated issue, not easily resolved and will rumble with us. i think markets are concerned about escalation of that
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when we thought we had got stabilization on monday, since then we have seen the u.s. reminding china they really are -- this is not resolved. this is going to continue. and perhaps a little message to reinforce that maybe we'll see deescalation again, but it's just a remainor th reminder that this situation is fluid and flux markets don't like uncertainty this is a major issue for the global economy the market will ebb and flow as this news flow unfolds >> that ebbing and flowing will continue today with that big jobs number in the united states mark, thank you very much for joining us oil is in focus today as opec members and russia gather in vienna.
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let's get over to brian sullivan >> i want to give thanks to opec for giving us special access here now at the meeting. thank you very much to our friends there. helima croft, let's talk about this day two of this meeting is a big one. yesterday we did not reach a production cut deal. what is your expectation for today? >> we're in overtime now my expectation is that they will get the cut done ranging from 900,000 to 1.2 million barrels the stakes are too high for them not to make this adjustment. they know where prices will go in the event they cannot get this cut done. they have the memory of 2014 they thought it would be a short stay in the 70s, they ended up sub 30 >> what do you think was the main sticking points yesterday >> exemptions for countries. libya, nigeria, venezuela, iran, they are all seeking exceptions from the production cut deal and the russian contribution has been a major sticking point. the russians have resisting
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cutting 300,000. they said maybe we'll do 150,000, 200,000 it's a combination of factors. they all are invested in stabilizing this market. there's a lot of brinksmanship, a lot of people saying we don't think this will get done, but i think they pull it together. >> i want to show the viewers a wall we built back at cnbc hq. president trump last year tweeted about opec zero times. none he's tweeted about opec nine times this year. the organization is definitely on his mind. that gives the saudis a fine line to walk politically >> they absolutely have a fine line to walk president trump has been a stalwart supporter of the crown prince, he's linked his support to keeping prices low, keeping the taps over. at the end of the day saudi has their own budgetary needs. the imf estimated thee need $88
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to balance their budget. so who will they put first president trump or their own domestic needs if they come out with a cut today, they will have the russians on the stage. it will be a message to president trump saying we're not doing this by ourselves, you're taking on president putin as well >> the saudis want to come out with a cut but get political cover to say it's not our fault. >> yeah. we didn't do this alone. we're protecting the interests of consumers and producers they're not talking about pushing prices to 80 or 100. they're talking about a stable price. we heard them say they're happy with 60 to 70 that seems to be the range they're aiming for here's the problem, we've been hearing 1.1 million, 1.2 million may not be enough to stabilize the market look what happened yesterday that was the talk. oil fell 5%. >> i think you had a situation yesterday, we didn't get an agreement. i think now we could be up if we
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get this agreement i think this is where the brinkmanship may work for them now expectations have been lowered about getting an agreement. if they come out with 1.1, 1.2, that might stabilize sentiment >> it is late morning here in vienna, austria. the russian envoy just arrived the meeting is supposed to wrap up in a couple hours if we get that production cut, we'll bring it live on cnbc. we'll have a couple more guests throughout "worldwide exchange." >> thank you very much, brian sullivan we'll see you later on in the show and thanks to helima croft for that great interview. coming up next, more huawei fallout. the chinese tech giant's cfo set to appear in court today following her arrest and later on in the show, the countdown is on. we're a few hours away from the november jobs report the granddaddy of them all what you need to watch when the number hits the tape when "worldwide exchange" comes back.
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nasdaq overnight in asia, it was a mixed session. shanghai composite was flat. hang seng and hong kong down by a third of a percent the nikkei up about 0.75%. in europe, a bit of positivity green across the board in the major bourses. the dax off of its best levels of the day, still up by 0.75%. the cac up 1.34% we are following a development story on huawei following the arrest of its cfo. she will appear in a canadian court today for a bail hearing let's get to eunice yoon with details. >> thank you very much all eyes here are on that bail hearing that is scheduled for tonight. meng wanzhou, also known as sabrina here, will be appearing at a court in vancouver at 1:00 p.m. eastern standard time
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she faces extradition to the united states as part of a broader effort by the u.s. to see whether or not huawei violated iranian sanctions the canadian authorities have been sharing few details so far the chinese foreign ministry also has said that neither the u.s. nor canada has provided beijing with evidence that meng had broken any law this arrest threatens to hamper the trade talks between the u.s. and china, mainly because here it's being viewed as a political decision however white house officials overnight had said that president trump was not aware of the arrest of meng before he went to negotiations with president xi jinping while meng is away, the chairman, liang hua, as acting cfo. the company has been doing everything it can to convince suppliers and customers that it's business as usual
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so the company issued a letter today to its global suppliers saying the u.s. move was against the spirit of free economy and fair competition it also went on to say regardless of how unreasonable the u.s.'s approach becomes, the partnerships we have with our global suppliers will stay unchanged. and separately, dom, there are reports that japan is considering restricting the use of huawei gear as well as zte. there's been talk that government officials could be holding a meeting as soon as monday to discuss this possibility. this comes after a local paper had said that decision was almost all and done to restrict huawei and zte gear. dom? >> a big story with implications on the u.s./china trade negotiations thank you for following that for us america's biggest ceos sounding off on trade turmoil with china here's what they told becky quick at yesterday's business
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roundtabl roundtable >> i'm encouraged by the dialogue we heard. i think both president trump and president xi are motivated to find a solution. >> it's a minor issue for some companies, but a big issue for others they have to change supply lines, make investments different. >> i hear from many different parties positive discussion that there is a way forward here to work through this 90-day period with china i'm cautiously glad to hear what i heard about those things >> a lot of people, myself included, say we see clouds on the horizon. those clouds are derivatives of trade discussions. >> creates uncertainty as it relates to pricing it causes us to think about where we want to source from we buy more merchandise made in the u.s. by far here than anywhere else. china is second on that list we worry about next spring, next summer, next fall what customers
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have to pay if tariffs escalate. >> a lot of influential voices america's top corporate leaders also talked about the health of the u.s. economy you can find those comments on still to come a retail triple play. shopping stocks on the move this morning. big names that need to be on your radar plus key levels to watch what the charts are saying about where your money is headed from here stick around we'll be back after isth break ♪ the new capital one savor card. earn 4% cash back on dining and 4% on entertainment. now when you go out, you cash in. what's in your wallet?
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welcome back we have a retail triple play lululemon's third quarter profit beating forecasts. the maker of yoga and athletic apparel saw higher online and same-store sales its online business in china jumped by 76%. those shares unchanged premarket. ulta beauty reporting third quarter earnings that beat forecasts. sales rose 16% in line with estimates. shares are lower after the cosmetics retailer issued a weaker than expected fourth quarter forecast shares are off by 5%. shares of american outdoor brands are surging the company formerly known as smith & wesson reporting better than expected second quarter results. third quarter forecast came in above expectations the company citing strength in its hunting category.
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the wild swings on wall street have many asking what's next for my money? the answer might be in the charts let's bring in carter braxton-worth from cornerstone macro. there are three things the markets are concerned with now let's go through a few of them in order the u.s. stock picture first with the s&p 500 what are we seeing here? >> there's a key thing that is important. it's called this, sharp indecision is resolved sharply these violent swings happen at transition periods that's what this is we've been topping for the better part of a year, with the blowoff high in january. this incredible back and forth volatility where we're moving up and down, going down, and then up and down, that happens typically before ultimately you break again.
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the idea is we'll violate february lows. not a good setup you also have this double top that's been in effect for a while. >> possibly more downside ahead. >> i think so. >> let's turn our attention to the oil markets. what is wti telling you right now with price action about where we could go in the future? >> right an epic in terms of the drop we were as high as 76.70, within nine weeks hitting a le of 4ow 9 it's the only instance you dropped 35% without any bounce we've been stabilizing around the 50 level here we got this tight pack and forth trading after what would be one of the most important declines on record but the important thing also is that we're at support. i think this is a better bet on the long side. >> all right maybe a bounce for oil prices there.
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we want to finish off, carde ca what's happening on yields the ten yoo-year, there is some positioning what are you seeing in the charts. >> everyone positioned for higher yields. we had as high as 3.3 and here we are now at 2.82 in this case, i think we have a well-defined trend that's been broken, and that we are brace y basically headed lower i think we go as low as 2.5. so 2.5% on ten-year treasury note yields, that's what the charts are telling carter worth. thank you for bringing that to us let's get back out to brian sullivan, he's live at opec headquarters over to you. >> thank you very much last time with has liee halima
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about the macro. coming up after the break, we will talk about the slide. we'll take a deep dive into the numbe numbe numbers. what does opec have to do to stabilize this market? we'll find out "worldwide exchange" rolls on. put your data to work on the cloud that drives business. the ibm cloud. the cloud for smarter business. the ibm cloud. where in all of this is the stuff that matters?
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the countdown is on. we're four hours away from the opening bell on wall street. stocks are pointing towards a lower open coming up, how you can navigate this market volatility and the countdown is on for opec day two as well no agreement on a production cut was reached yesterday. will it happen today the russian envoys are in this building here in vienna, austria. if they get the deal, if oil stabilizes, can it pull this entire stock market up as well a lot of intrigue. "worldwide exchange" rolls on right now. welcome back thanks for being with us i'm dominic chu. let's check the top headlines outside the world of business. frances rivera has those details.
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good morning some major developments in the mueller investigation. they are expected today. new court filings are expected in the cases against michael cohen and paul manafort. prosecutors have until 5:00 eastern detailing cohen's involvement. and the special counsel expected to detail the crimes and lies that led them to cancel the cooperation agreement with manafort. it's a race against time to find five missing service members missing in the pacific ocean after two planes collided in midair yesterday. a massive search and rescue operation is under way with the japanese coast guard, the u.s. military and submarine crews scouring those waters for survivors. kevin hart sending shockwaves throughout hollywood. he announced he is stepping down as host of the 2019 oscars that's less than two days after
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accepting the gig. the move came after an avalanche of controversy over homophobic tweets he made a decade ago that re-emerged this week hart announced he has decided to step down to avoid being a distraction on a night that should be celebrated by so many artists. those are your headlines >> frances rivera, thank you very much for that futures pointing to a lower open off by 150 points for the dow jones industrial average s&p off by 15points. the nasdaq down by 45. on the asia side of things, a mixed session. relatively flat market action in shanghai the hang seng in hong kong off by 1.30% european trade is generally positive the dax is up by 0.75% the cac and the ftse 100 up by
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1.5% let's get to markets overall in more context with silvi silvia jablonski the market volatility has been interesting for many traders out there, many of whom use your etfs how can you tell us how traders are positioning given this recent market volatility >> the relative calm in the markets for the first three quarters of the year is gone now we see a lot to of price action and volatility off of trade tariffs, off of the fed and perceived slower growth into next year. we're seeing a couple things a couple of interesting trading. one is on the bear side. a lot of advisers and investors look at these selloffs for short-term opportunities regional banks is a good one so typically a steepening yield curve is good for regional banks. we see a collapse in that.
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we see double digit and mid teen performances in our bear fund. a lot of traders allocating towards consumer sectors so consumers will buy what they need regardless of trade tariffs and the economy. a lot of flow is going into that space. to that effect we just launched an etf called need for that reason another sector that's interesting is also healthcare it's sort of like staples. people will continue to get sick that coupled with the good momentum going on in that space, positive m&a activity, positive earnings from cvs, united healthcare, lilly, there's a lot of good and interesting play in healthcare so we're seeing some allocations there. >> earlier on in the show we spoke with carter worth at cornerstone about some of the charts with regard to not just stocks but also oil and treasuries he was giving us some of his outlooks and targets
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what can you tell us with regard to what you see with regard to oil and the treasury side of things >> sure. in the last couple of -- so, you know, scaled back to last week, we saw flow into our bearish funds that track oil and energy. i think, you know, this week we're sort of seeing a reversal. it's unclear what the russians will agree to in the opec meetings today i think that oil is more or less a seemingly at an all-time low so they may see potential momentum to the upside as a result of what comes out of opec in terms of rates, chairman powell has come out and said maybe we'll take a wait and see approach let's see what happens trade tariffs are weighing on the markets, though the economy is strong. there are some future concerns there. so that might slow the pace at which we see rate hikes. to that effect traders may look to purchase inverse treasury
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bond etfs as rate hikes rise, bond prices fall even if it's a slowdown we anticipate that rates will continue to rise in the next couple of years. that's a good way to look at that trade >> all right silvia, a lot on your radar, i'm sure thank you very much for joining us >> thank you let's get out to brian sullivan back at opec headquarters in vienna, austria. over to you. >> thank you very much we know the weighting of energy stocks has come down over the last several years it's about 7% or so. oil and gas still matter chevron and exxon are dow components what happens to the energy space does matter to the macro markets as well. let's find out what matters to the energy space at opec headquarters joined by clay siegel. thank you very much for joining us >> thanks for having me. >> this is a big meeting we thought we would get
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something yesterday. we didn't. we should get something today. the question is this, you guys do a great job digging really deep into the data is there a market number that will stabilize the oil markets >> as we come out of this meeting traders, our clients will be looking for some specific metrics to see how changes are affecting supply and demand the first is inventories at a key place like oklahoma, where the wti contract is based, we see record inventory levels there. 40 million barrels very high. we need to see if inventories start to draw down another important metric to think about is pipeline flows. get oil from these places. if you think about west texas, the powerhouse of u.s. production, we saw 2.2 million barrels per day through these pipeline flows this is a high level between pipe and rail, can we get the oil where it needs to go >> here's a macro question the price of oil in november had
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its worst month in over a decade is it because, "a," there's too much oil in america and the world, or, "b," the market is reflecting a future slowdown in global economic growth or a combination of the two >> it is a combination of the two. supply and demand are equally important. if we are thinking we are getting supply overhangs that will depress prices and change the forward curve for oil. you have to think about the trade tensions as well when it comes to the demand side if corporate earnings suffer, if there's less trade as a result, there's less demand for fuel and crude oil. >> for viewers, we talk a lot about countries. russia may want this saudi arabia may want that i have to throw another country in the mix not america. it's canada. call it the alberta surprise a couple days ago, the canadian government taking a draconian measure and they'll knock out about 300,000 barrels a day of
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production due to pipeline issues in canada the reason we mention canada at opec is how much does that 300,000 -- the world just cares about the overall amount of oil. how does that 300,000 barrels that surprise matter to the calculus here? >> it does matter here it matters for global markets. canada is a key place where you have this oversupply of oil. local prices are really depressed compared to techs, the east coast so these production cuts are to rebalance the market we detected a pipeline outage which started to back up that oil again. it was equivalent to a couple days of supply cuts. so that means you have to run the cuts for longer. >> i know you will be here all day. we might call on you again don't go anywhere. dom, what's amaze being this in canada, i know it's random, there's so much oil and so many pipeline issues and rail issues
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that effectively oil is free in canada it's trading at a $52 discount to the price if the price is at $52 a barrel, effectively they're taking it out of the ground. they have nowhere to put it, they say dom chu, get the oil. it's free, you have to pay to get it somewhere just -- it's like a pool table in your basement you want to get rid of it. you have to pay somebody to get it that's kind of what's happening in canada. >> let's get this straight, you're telling me if you have a tanker truck, you can go up to alberta, canada, fill up your truck for free, and bring it wherever you want. the only cost you incur are the transportation costs that you bear >> effectively i'm probably oversimplifying for tv basically you're right here's the problem, if you have a tanker truck, everything is full pipelines are backed up. tanker trucks, railcars, everything is full that's why they have this issue and that's why the canadian government came out and said 9
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39% of production, cut it off naturally or shut off the pipes. that 300,000 barrels a day may factor into the opec decision here because it gives them a little more cover. don't blame us look at what canada is doing why doesn't president trump tweet at the canadians as well in a few minutes we'll have mike bradley. we're live all hour here we appreciate opec giving us some special accesshere. >> thanks to you and clay siegel we'll see you in a few moments coming up later in the show, counting down to the big jobs report it could be a big market mover we're breaking down the key things to watch when "worldwide exchange" returns after this break. for your heart...
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good morning if you're just waking up or driving into work, let's get you up to speed on the market action futures pointing to a lower open the dow off by 113 points. that's off session lows. on the treasury side of things, a slight uptick to yields on the ten-year treasury note 2.89%, the last trade there. still below 2.9. the two-year treasury note yield, 2.76% we are counting down to the big jobs report. that number hits in less than three hours from now
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let's bring in danielle dimartino-booth. it's the front page of the "wall street journal," fed may slow interest rate hike pace. is that right? should they be slowing things down in an economy that's growing apparently at 2% to 4% with an unemployment rate at the lowest levels since 1969 >> we have stories being planted in the "wall street journal" that turn markets around the fed should be considering a pause. today's unemployment report, today's jobs, non-farm payroll number will be the most backward looking lag of all economic data that's something you learn your fist day at a central bank the most lagging of all indicators is that jobs report we've seen in jobless claims, they've came off their lows of
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2001,000 201,000. we were supposed to see a bounce back yesterday we didn't. we've seen the average layoffs of 35,000 a month last year up to 55,000 a month. investors looking forward are what they need to be concerned with >> if you're looking forward, let's take your mold there, what are you looking at if you were still in a role to advise the fed, if you were there, what would you be looking at that tells you either interest rates should go higher or should be paused? >> i think the most important thing that you need to look at is the most leading of all indicators, the housing market if you look at the most recent data, pending home sales, that's a forward looking indicator. 10 of the last 11 months, year over year declines this is not a one or two-month
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off data we know since early spring the housing market has been slowing. the automobile sector coming into trouble so these are things that should indicate to the fed that they don't need to be looking backwards at the unemployment rate but looking forward at things that lead the economy into and out of recession. >> as we look at this jobs number today, we often focus on the headline number, because it is a headline number we talked about average hourly earnings, the average work week. what nuance within jobs catches your attention the most? >> i will go back to my days at the fed again. my mentor told me the thing you should pay attention is the back month's revisions. if you see back-to-back downward or upward revisions, that should tell you the economy is at an inflection point yesterday's unit labor cost
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report was telling we went from a 3% rate to an 0.9% rate due to backward revisions to prior quarters. we're seeing a marked deceleration that tells us maybe there was panic buying ahead of the potential leveeing of tariffs. maybe that will back off one reason it popped on to challenger's data yesterday was reduced demand that was a bluntd w way of sayig we don't have enough demand. >> as a former policymaker, how much does the yield curve play into your mind does it signal, perhaps that 6, 9, 12-month lag in recession, or should we be paying as much attention as we are about this
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>> richard fisher and i are in agreement because the great recession was a balance sheet recession that we need to look further back in time the last balance sheet recession this country suffered was the great depression the six recessions that followed were not preceded by an inverted yield curve. moreover we need to look at the 1999 episode when the inversion was quickly followed by recession. as a policymaker, am i paying attention to it? yes. is it the end all be all not necessarily. i don't think we have to invert to go into recession this time around >> all right thank you very much for coming on brent crude turning positive on the session let's get back to brian sullivan in vienna.
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>> maybe it is turning positive on the session because there's some chatter we'll find out if opec gets a deal and maybe larger than the market expects after the break, we talked about the geopolitical implications we talked about the micro data coming up mike bradley will talk about actionable information for the cnbc audience. what do you know more importantly what do you do. that's coming up after the break on "worldwide exchange."
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all right. welcome back to "worldwide exchange." i'm brian sullivan, we're live in opec's headquarters in vienna, austria. day two. the market is hoping for a
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production cut mike bradley joining us now on day two. your first meeting is an epic one this is historic we talked about the geopolitical stuff whachl stuff. what do we do? what is your company recommending clients to do and invest in and make money around all this volatility? >> it depends on the outcome of today, if we get 1.1, 1.2 million barrel cut, probably 24 hours ago that wouldn't be enough that the market would sell off today the sentiment is so low you will probably have a snap back so what have we been telling people we've been neutral really not too constructive. telling people to stay in sort of a low beta stocks, oil majors >> the exxons, the serve rchevrs >> yeah, correct that has not changed where we're not telling people
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to buy is oil service stocks just about any scenario we see there will be lower activity levels prices will not snap back too much higher from here. i think you'll see pricing for service as well as 2019 earnings coming down significantly here >> that's an important point it's not just the oil price story. we hear about gas prices, i get that but there needs to be a level where oil companies are making enough money that they have capital spending to employ the oil services company and creates jobs at 55 bucks a barrel at wti, is that enough for the industry to continue growing >> i think wti at 50, spending this year will be splat iflatti slightly down. expectations six weeks ago, we were look at spending up 5% year over year, if we get that spending, that will be down 5%, 10%. that's not good for anybody.
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it's not even good for the balance of payments in the u.s >> that's high we love blow gas pri low gas prices, but there's so many jobs related to the energy space. 88 of the 100 stocks that i follow on my screens are in bear markets. does that turn around soon >> depends on the outcome, but, no in the next couple of weeks, even if oil snaps back, we don't see that happening there's been too many lick wi da liquidations, and the guys are just not buying now. near-term, yeah, we see a snap back with a cut, but we won't see much follow through until q1 of '19 >> mike bradley, we'll see you downstairs thank you very much. it's been a tough go if you've invested in oil and gas stocks, it's been difficult to make money the last several
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years. and a lot of people may have given up we'll see if the sentiment here changes that >> a notable laggard in terms of sectors. brian, you are our boots on the ground there, it's a big day what will you be watching for out of that meeting with opec? >> it is historic. a couple quick things to watch for. number one, will we get a deal we were supposed to get a deal announcement yesterday, we did not get that we hear a framework for a deal is in place. how much will they cut that's the question. ultimately the deal is what matters. also we talk about opec generally as an organization, will they be able to come together it will come down to the saudis and the emiratis they have the ability to cut capacity cou countries like venezuela and iraq, they will not do it and we'll see if donald trump will tweet about what happens here in
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vienna, austria today. we'll be here all day live for you on cnbc. >> brian sullivan, thank you very much for that that does it for "worldwide quk x" i." "sawbos coming up next have agreat weekend.
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good morning futures indicate a lower opening after the dow staged a comeback from nearly an 800-point drop in yesterday's session. signals from the fed helped drive that rebound we'll talk about a possible new approach that could mean the end of the central bank's steady path of hikes. it's jobs friday we're counting down to the data that could move the markets and influence the fed in the most pressing decision on whether to hike rates this month.
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wow, it's a day that will live in infamy. hopefully not with anything that happens in the stock market. it's december 7, 2018, "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. our guest host this morning is mike santoli, cnbc senior markets commentator. we've been watching the u.s. equity futures yesterday the markets were down by close to 800 points made a massive rally through the session to retrace about 90% of those losses with the dow ending down just 79 points by the end of the session this morning we are not building on that momentum red arrows once again with the dow futures indicated down by
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