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tv   Worldwide Exchange  CNBC  December 10, 2018 5:00am-6:00am EST

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good monday morning. 5:00 a.m here is your top five at 5:00. another drop at the open, all 30 dow stocks are down lower on the month. breaking brexit news a european court just ruled the european union can cancel brexit on its own the question is will it? china fighting back. ordering the appearance of an executive back capitol chaos. president trump's chief of staff is leaving the mueller investigation heating up is this the real reason stocks have been sliding. paris has been burning protests turning more violent in
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france more than 100,000 people taking to the streets it is monday, december 10th, and "worldwide exchange" begins right now. good morning, good afternoon, good evening. another tough day for stocks, however, the good news is that we are not seeing any kind of sliding futures. we had all last week seen that every day of the week. dow futures are up only about 55 points with the market at 25,000 or so, that is a tiny percentage. keep in mind it has been a very rough month. very rough couple of weeks all dow 30 stocks are lower this month. bond yields, of course, that is another big story. bond yields have also been moving lower with the market maybe that's good news mortgage rates, by the way, should come down as well
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10-year yield should is at 2.8%. there's 14 basis points difference asia, japan down more than 2%. hong kong and shanghai fell. in europe, like our futures, europe is not sliding a lot. a couple of tenths percent keeping an eye on france given all the protests there french market down half a percent. let's check the rest of the global commodities oil giving back a little wti down 1%. look at bitcoin, down 1.4% 3484 bitcoin has had a very rough go. back to the markets. many of you have asked a very simple question recently why have the markets gone so wild in the last couple of weeks after so much calm of course we have experts on cnbc talking about this every day, but we wanted to know what
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you think so we did a twitter poll what is driving the recent market turbulence? is it trade and the economy? we put them together brexit computers simply gone wild most of you think it's trade and the economy. 64% of you voting that way let's find out if bill stone agrees he's with avalon investors vote now on tv what do you think the reason really is? is it trade and the economy or something else >> i think it is the trade and the economy, at least worries about it i don't think certainly that there's reason to worry too much about the economy yet. the trade is a worry we don't know how it will play out. every headline around china and the u.s. or a tweet about tariff man gets the markets moving. >> that took some beef on twitter because i put trade and the economy together because most people we talk to seem to
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agree the trade issue, trade tussle, whatever you want to call it is an overhang on the macro economy. if somehow that gets removed in the next couple of weeks or months, we settle our differences, come up with some deal on china, back those tariffs off, bill, do you expect the markets here and maybe there to recover >> i do. i think when you really look at the actual current fundamentals, let's use the ism battle, you use those it says the u.s. is growing roughly at about -- consistent with about a 4% gdp growth rate. probably not really hitting that nowhere near any sort of recessionary numbers or anything that you need to worry about i do think that's the big overhang. >> okay. it's also the federal reserve, right? what does the federal reserve do now? do they watch the equity markets? do they watch the bond markets more importantly do they change their thinking or do they keep raising rates? >> i think you've already seen
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it, right? you've seen some change from chairman powell that were far away from the neutral rate now we're very close the markets, i think they told you that last week, i know we probably talked more about yield curves and we've talked as long as i can remember in this business, but certainly the front end of the curve the markets are saying, whoa up. you're getting towards the end of your hikes. eventually pricing in that we're going to start easing sometime in 2021. i do think and i know the fed watches those yield curves because they write about them all the time i think they're watching that part it won't stop them from raising rates this month i think it may put the brakes on early next year at least in terms of taking pause. i think the market is going to like that. i think for right now as long as the fed stays consistent with the comments that we're getting close to the end of hikes or going to pause and watch the data, i think that's actually a good part of the background. >> you think that -- i know you're a longer term investor. we're approaching the holidays
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any chance we get some kind of relief rally >> i think so. certainly with the beating we took last week, i always kind of think of the market as a bit of a spring so you've now compressed the spring again. if we get any sort of good news usually you'll get at least a decent rally out of it i think, too, think about the end of last week at least we ended with opec, you know, making some better than expected i guess you'll call it production cuts, at least better if you want oil to go up a little bit which i think is part of that signaling process. i don't think that's the case. i think it's part of the backdrop. >> you're in houston, we have to go lower prices are great at the gas pump but the 200 billion in debtthat's tied to the permian basis, they need to make some catch. bill stone, a real pleasure. have a great week. >> thank you. we are also continuing to
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follow the story this morning that rocked the markets last week that was the arrest in canada of huawei cfo beijing is summoning the ambassador eunice yoon has more on a story that's not only a big one here but a big one there as well. eunice >> reporter: absolutely, brian the chinese government has summoned not only the u.s. ambassador but also the canadian ambassador to lodge beijing's complaint calling it vile in nature, extremely nasty and warned of grave consequences if the cfo is not released. the cfo is going to be appearing in court tonight at the second day of her bail hearing. her lawyers are expected to argue that she should be released on bail for health concerns and that she should not be extradited to the united states and that she's also innocent of all the charges that the u.s. is alleging against her
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as well as her company for violating u.s. sanctions on iran now the language out of the ministry was exceptionally strong for an official response. i think that just goes to show how angry beijing is about this and also highlights the reason why so many american businesses here, especially in the tech sector, are really concerned now about a potential blowback not only on the u.s./china trade talks but also on them as for huawei, it put out a statement that was much more muted saying we have every confidence that the canadian and u.s. legal systems will reach the right conclusions. brian, i've been speaking to lawyers here who follow these cases and most people believe that she will be released on bail because their argument is that the canadians don't usually detain people during these type of seasons
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>> do you have any kind of idea what kind of power the chinese government might have? you can't force it >> reporter: actually, they do the chinese government will often summon ambassadors from other countries. it's not unusual to hear them being called in to have a dressing down. it shows how angry beijing is. >> eunice yoon live in beijing thank you. new this morning, also out of asia, japanese prosecutors charging nissan and former chairman carlos ghosn with underreporting his compensation. let's get to frank holland with more on this story >> prosecutors in japan say ghosn and nissan underreported income by tens of millions of dollars for years.
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prosecutors say he's considered a flight risk. the indictment handed down on monday accuses ghosn by underreporting his income by 5 billion en, which is $44 million. this happened over five years. nissan is calling ghosn of being the mastermind and he used company assets personally and making inappropriate investments. they released this statement about the charges, nissan takes this situation extremely seriously. making false disclosures in annual securities reports greatly harms the integrity of nissan's public disclosures in the securities markets, and the company expresses its deepest regret he became the ceo of nissan and renault in 2005. he stepped down as ceo of nissan in 2017. these new allegations allowed them to suspend his detention.
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>> see you in a few minutes. up next, a big moment in brexit the battle that just happened. we'll tell you what it was and why it matters the protests in paris grow in numbers and grow in fury thousands arrested and we have the very latest when "worldwide exchange" returns.
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♪ there's no place likargh!e ♪ i'm trying... ♪ yippiekiyay. ♪ mom. ♪ welcome back the gas tax riots in paris are growing bigger they're growing more violent
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tens or even hundreds of thousands now taking to the streets over the weekend these protests that began as anger over a gas tax hike to fund renewable energy projects have become general rage against the emmanuel macron administration they've smashed windows, set cars on fire more than 1700 people have now been arrested. the country's finance minister is calling the protests, quote, economic catastrophe. meantime, in europe, big breaking news on brexit. a european court ruling that the u.k. can unilaterally cancel brexit if it chooses all of this ahead of a massive and unprecedented vote in the u.k. parliament tomorrow let's get right now to wilfred frost live in london with more wilfred, good morning. >> reporter: hi, brian that's right the u.k. can now decide to call off brexit without e.u. approval sterling initially jumped on that news. it's now essentially flat.
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there remain massive hurdles on the u.k. side before the u.k. government would maybe decide to do that or not so as you say, in the meantime, all eyes on the parliamentary vote tomorrow and theresa may's brexit plan. if she wins that vote, then the u.k. would lead the e.u. in march of next year her withdrawal agreement would be approved. we'd like to see sterling rally on that news because we would avoid the disorderly no deal brexit if she loses that vote there are five possible outcomes that could follow the first, renegotiation if her loss is only small, she may be able to go back to brussels and try to get fresh terms of a deal. number two, no deal. that remains the default option if nothing else happens albeit mps would try and stop it. number three, a change of prime minister by changing the leader of the conservative party within the party's own mechanisms number four, a general election. that would require wide cross
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party support. it's unlikely but certainly possible particularly if a loss in parliament is large number five, a second referendum that ecj ruling very important it solves the question whether e.u. would allow it. big hurdles remain on the side sterling has given up those earlier gains today, brian >> it's a complicated story there, wilfred even more complicated sometimes on the side here number one, why is it so widely expected that may is going to lose and, number two, if she does lose as expected, how much does the size of the loss in parliament matter? >> well, brian, the simple question is why she's expected to lose is because both remainers don't like it and levers don't like her deal remainers will only be further involved by that ecj decision earlier today to think it's possible to overturn brexit. levers don't think her deal goes
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far enough we've heard outright from enough mps who have said they won't back the deal. it makes it very, very hard for her. as for what happened to market, her deal would have been unilaterally bad because it would have pointed high likelihood towards no deal they make a second referendum and remain possible so that makes it slightly more uncertain as to what would happen to markets if she does lose that vote but it's important to remember that default options still remains no deal if nothing else is achieved between her losing the vote and march. it is expected u.k. risk assets would react to the down side if she loses the vote tomorrow, particularly if she loses by a wide margin. >> how does it work tomorrow, wilfred? what's our time line on that vote >> reporter: it's expected to
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ta take place around 7:00 p.m. or 8:00 p.m. so 2:00 p.m. eastern time there are lots of smaller votes on various amendments that they have added to that brexit bill they will have implications for how that deal -- the big vote is likely to go tomorrow at 2:00 p.m. eastern time but the important one to watch is tomorrow early afternoon eastern time, late evening here. >> big 36 hours ahead. wilfred, we're glad you're there for us, buddy. see you soon. let's talk more about the market implications of this and bring in jeff yu he's at ubs global wealth management jeff, you heard wilfred frost say the base case is basically that may loses the vote. does ubs agree with that >> reporter: right now the base case is just uncertainty our base case is that there will be a deal at some point so this
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vote is one step in a series of further maneuvers by all parties. it's important to stress one of the amendments last week wilfred just talked about has strengthened the hand of parliament within the negotiations which has reduced the likelihood of a no deal or a crashout that's one reason why u.k. assets are not further under the weather at this point. >> i don't know -- i don't want to call it bad news, geoff, because there are people there who wanted brexit. they voted for it. from a markets perspective do you think, quote, bad news is priced in? >> a lot of the bad news i would say or the uncertainty is priced in, especially after last week of course there are certain forks in the road and different directions that people will go down if let's say tomorrow's developments do lead to the prime minister and if there's a
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general election, that's more domestic uncertainty and we bring in a domestic element to it clearly not out of the woods yet but again sterling is under positioned quite on their own right now. that's why even if the vote has failed tomorrow -- >> what if may surprises what if she wins the day what if the vote passes? what then, geoff >> that really i think is what is not talked enough about right now. there are two ways to go about it one, there's a surprise or victory tomorrow then. we're going to see a big rally in u.k. assets, especially sterling right now let's talk about a loss of 100 votes. if the vote is much narrower then that can be construed a new vote could be brought through and maybe that could be passed. >> jeff, a real pleasure see you soon. >> thank you. on deck, d.c. drama and your
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money. could the ramping up for the mueller probe be the real reason why stocks are sliding. winter weather woes. how a storm in the south completely slammed a region and left tens of thousands stranded. stick around the stakes are so high, your finances, your future. how do you solve this? you partner with a firm that combines trusted, personal advice with the cutting edge tools and insights to help you not only see your potential, but live it too. morgan stanley.
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good morning welcome back 5:23 on the east coast hope you have a great start to your day dow futures are down they're in the red
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off 62 nasdaq and s&p down as well. they're not down 300 like we had seen many days last week that is the silver lining on a very cold monday morning in d.c. news, president trump's chief of staff john kelly is leaving the white house end of the year and the mueller investigation seems to be heating up let's get more on both of these with nbc's susan mcginnis live in d.c susan? >> reporter: hey, brian. good morning two court filings on friday from federal prosecutors in new york as well as special prosecutor robert mueller in the russia investigation here and we have these two court filings raising the prospect among some lawmakers here on capitol hill of the "i" word. the word is being heard more and more around capitol hill. >> they would be impeachable offenses. >> reporter: raising the thought of impeachment
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>> the president was at the center of several massive frauds against the u.s. people. >> reporter: cohen says president trump directed him to pay off two women. the campaign finance violation the president denies cohen also detailed contact with russian officials regarding a trump hotel in moscow. >> sir, did you direct michael cohen to commit any violations of law >> no. no. >> reporter: some in congress predict that the president could eventually face prosecution. >> he may be the first president in quite some time to face the real prospect of jail time. >> reporter: as for impeachment, lawmakers say it's too soon. >> what we want for this country is all the facts and all the truth. >> i think it's a last resort and only when the evidence is clear of a really substantial legal violation. >> reporter: most want to wait for mueller's full report. and cohen is expected to be sentenced on wednesday brian? >> susan mcginnis in d.c thank you very much. meantime, let's get a check
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on this morning's other top world and national headlines including the big storm that shocked the south and has caused chaos around the region. phillip, they get an inch of snow in georgia, things go south quick. >> yeah, just not used to it down there, brian. good morning massive storm has slammed the southeast. some areas of virginia and north carolina has seen as much as 18 inches of snow and freezing rain bringing travel there to a stand still and causing thousands of homes and businesses to lose power. almost 2,000 departing flights had to be canceled at least four deaths have been blamed on the storm and officials there urging people to stay inside and off the roads. a convoy is carrying 1 million balsam wreaths across america en route to arlington national cemetery. it's an annual tradition that dates back to 1992 this year's convoy is the
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largest ever with more than 11 truckloads. check out this scene in spain. madrid was hit with a santa storm. the 5k charity race is the largest santa-themed race in the world. and not at all as annoying as san santacon here in new york. >> it's a little difficult to get around fifth avenue. >> drunk santas for sure >> phillip, thank you very much. he's not wrong that's what it is. he's not wrong that's why they're so jolly. >> that's right. >> thank you very much up next, the scam of the century. hard to believe but this week marks ten years since bernie madoff's ponzi scheme blew up. dou're going to hear from bernie maff himself about life behind bars coming up
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is it mueller time for the markets? could the drama in d.c. just add to the volatility or is it really all trade and economic fears? japanese prosecutors charging nissan the company and carlos ghosn and the asian markets sagging on the news. hailing an ipo uber taking a big step forward with plans to go public. ♪ ♪
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welcome back 5:30 on the east coast thank you for being with us on cnbc let's get all you need to know in 60 seconds. frank is back with your executive weekend. >> reporter: here's what's leading cnbc a european court ruling that the um u.k. can unilaterally cancel brexit some auto news, carlos ghosn and nissan both indicted overnight on financial misconduct allegations they're charging him for under reporting his income for af five-year period they're investigating allegations that the practice went on even longer. big ride share news. uber has reportedly filed confidentially for an ipo. they were planning a 2019 debut. according to that filing uber could go public as soon as the first quarter. >> fair and accurate, we'll see
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you back trending in a few minutes. here's how your money and investments look guess what, we are down but we are not down like we were last week we're not pointing to any kind of a two, three-quarter point drop futures are down 56 points right now. nasdaq and s&p futures are down. every dow stock all down 30 are lower in the month of december but hard to believe nasdaq is still higher by about 1% on the year let's now bring in steve cheveron at federated. you'd never guess that the major index would be higher now given what we've seen, steve, the last couple of weeks. you're a long-term fund manager. how are you managing through the volatility >> not a good time to be a hero. it's a good time to be pointed where the fundamentals are leading. growth is still going to be positive next year we'll have earnings growth
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you want to be long equities you want to have parts of the market that are getting hammered but you don't want to be out we were 11% over weight and the global allocation. 3 and 4%. >> maybe some things get hammered, not drunk like the santas we talked about earlier, but beaten up for a reason others beaten up unfairly. what do you think has been beaten up unfairly >> cyclic calls. they were pricing in a recession. these are energy, materials, industrials to home builders some international they're absolutely -- they've been taken out to the wood shed and if you don't have a recession next year, the value is gone. >> energy is down 13% in a month. it's been the worst perfect forming of the 11 major s&p 500 groups oil and opec meetings, are you buyers of some of these oil and gas stocks >> maybe not some of the oil and gas equipment companies but some of the oil companies themselves. you have to look at them
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they've gotten beaten up again, i think these names are pricing in an actual recession in '19 and our work suggests that's not going to happen. >> we're going to talk about housing here with our friend hasam nagi we're going to talk about something in a second but sit there and pretend we're not talking about it mp you like the home builders. they have been devastated in the last 90 days. >> housing has been under quite a bit of pressure. the fact that the fed is signaling they're going to back off should provide some support. you have a nice seasonal trade on halloween and ends on super bowl sunday. if the housing market isn't going to roll over and die completely, the names have priced that in at this point have you to take a look. >> what are you avoiding what are you selling >> i don't think you want a lot of the defensive names that have done better over the course of the last couple of months. we're not thrilled about utilities or consumer staples where you have lack of ability to pass on price you have disruption.
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>> what about the so-called faang stocks >> i think you have to look at them on an individual basis. apple is looking more attractive but they have some headline issues you look at a company like amazon, there's no reason for it to be down that much. >> steve, we'll see you again. have a good christmas. >> sounds ominous. >> despite the beaten down homeowners, your next guest has five reasons why real estate is still a safe bet joining us is hasam nagi thank you for joining us on set. >> good morning. my pleasure. >> how much do or does your sector, real estate, really matter in the short term when it comes to interest rates? >> it matters quite a bit. interest rates are very important for the housing market and commercial real estate which is our area of specialization. the market is reflective of great fundamentals we have great job growth
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we have not seen over building november this cycle of commercial building or housing we have yields in a volatile environment. 5 or 6% yields that are in an asset class not over building and we haven't over leveraged commercial real estate there are not a lot of bad loans. >> it's not 2007 you don't have clos, all of those acronyms we didn't know about. >> by a long shot. on top that, when you look at commercial real estate whether it's offices, warehouses, hotels, apartment rentals, you have a new capital flow coming from private clients, private investors coming into the industry for the first time. >> interest rates are one of your five reasons why real estate -- we're talking bhmore about commercial real estate you buy this because you want money back because of a lease or
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whatever it might be yields are looking pretty good >> they are. if you look at the full spectrum of risk/reward, whether it's an apartment building, very good occupancy and more liability on the cash flow or higher risk assets like a hotel, for example, that has a little bit more volatility. the yield profile averages 5 to 6% in between all of that there is warehouses, self-storage properties, there is senior -- >> by the way, can you just talk about that i want to call an audible. >> yes. >> self-storage is popping up. everywhere i go there's a new self-storage place why? >> because it's responding to great demand it's a relatively small industry but it's growing you have additional capital coming into self storage mobile home parks basically. commercial real estate is far more than areas where they were
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talking about lack of over building and lack of over ledging is where we are. >> i saw your pinky, the fifth reason of your five was that the positive impact of tax reform hasn't made its way in. >> that's right. >> how >> tax reform was very positive for real estate. variety of provisions that make commercial amitriptyline real esta estate -- real estate investing good it takes a cycle or you two to really focus on those benefits our clients finished their 2017 taxes. they haven't had time and there's been a lot of confusion about some of the details of the provisions that are just now getting answered that's why, brian? >> it's hanukkah now christmas is coming. it's the holidays. we like to hear good news. five reasons why real estate might do well. >> great to be with you. let's find out what else you are going to be talking about
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today. time for this morning's top trending stories i have a beef with you, my friend about your eagles which we'll get to at the end of the segment. that hurt. that hurt. they could have taken over -- >> it killed my pool because they didn't cover because of that -- these are -- i wanted the eagles to win anyway. >> for our international crowd, this is one of the most bitter rivals eagles lost to dallas. >> i like the eagles, too. >> disney's "ralph breaks the internet" holds the box office taking in 16.2 million slightly beating out "the grinch. i'm not a big fan of animated movies i can't go there and see this but this one is doing well. >> it's a good movie apparently. >> also trending this morning, this story is a little bitter sweet. dog that survived california's devastating camp fire protected
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its home the dog's owner returned to see the dog there still waiting. local animal society provided that dog food and water. can you imagine a dog so loyal -- >> i saw this story yesterday. i'm not going to lie a little bit of a lump in the throat. >> absolutely. >> this is why dogs are awesome. the dog made it, owners came back everybody is happy >> reminded me of george h.w. bush's service dog that laid by his casket >> sully >> good name have you ever wished, i wished this often, breakfast, ohio state has taken steps to make that dream a reality, a bacon vending machine on campus. it sells tasty breakfast meats for $1 it will benefit the meat science
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department i did not know that was a major. >> the bacon vending machine is probably going to be a pork jerky. the fact that they have a meat science major -- >> is there a sushi major? >> there might be. who knows. frank, hold on in the sports world, we go to bed early? >> we do. >> sunday night football last night the bears hosting the rams all tied up at the end of the first half chicago scored first in the third quarter, never looked back and they beat the ramps on a cold night in chicago, 15-6. frank, the story we were referring to is the eagles, i like, you like as well, you're a philly guy, epic game against the cowboys. >> epic. >> they botched it -- the defender douglas tapped the ball up amari cooper had a lucky catch and scores not only did they lose but the eagles didn't cover. >> thank you very much the play though of the day
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in the sports world, if you didn't see it, you're going to be in for a treat. the dolphins trailing the patriots by 5 points seconds left in the game so they thought, you know what, let's do a trick play this never works this never -- all this laterally, it never works. wait a minute. it's working lateraled to another guy it worked! that never works, but it worked. miami wins the game no time on the clock. the patriots are still going to win the afc east most likely but this keeps miami in the hunt and gives them the play of the year. all right. up next, madoff ten years later. we are taking a look back at the biggest scam of the century and you will hear from the con man himself. your wall street ahead, the key level to wch, 'lteatwel ll you what it is coming up
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hard to believe ten years ago today bernie madoff, well known on wall street, hardly a household name anywhere else, confessed to his sons that his $65 billion fund was simply a giant ponzi scheme it was the last thing that battered financial markets needed and the ripple effects even to this day are here. where we have been and where
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we're headed scott, good to see you. >> madoff sons famously turned their father into the feds after he confessed the next day madoff confessed to the fbi as well. he is marking this tenth anniversary of the scandal quietly at the medium security prison where he turned 80 this spring 9 1/2 years into a 150 year prison sentence i spent a surreal two hours with madoff behind bars >> what do you tell the public, your investors. >> reporter: to hear bernie madoff telling it, to run a giant upon zi scheme was stressful. life in prison was a respite it's kind of like being in the army in 2013 only you're not worried about getting killed his lead defense attorney is still in touch with his most famous client. >> he's doing okay for 80 years old. he has the respect from the
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prisoner population. it's prison but it's not the max. >> reporter: one person doesn't want to hear from madoff marc litt was the lead prosecutors. >> i don't believe he should be given a soapbox. i looked around the room and there were pictures of his boats on the wall and they were all named full and i said, what is that thing over there? and i saw that it was a sculpture of a wood script and it all of a sudden hit me that here i was, the prospective investor, surrounded by bull and getting screwed and -- but i didn't know it >> reporter: we have a lot more from marc litt who has never talked about the case before now and more about my time with
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bernie madoff and we'll look into where the next madoff may be hiding. it is all on a special "american greed" podcast series. madoff ten years later you can subscribe on apple podcasts or wherever you get your podcasts. >> you talked to the man you talked to bernie madoff. what's he like in person >> reporter: he was surprisingly regular. when i finally met him and i had seen him in all of the court appearances. i was 15 feet away from him sitting in the jury box the day he was sentenced to 150 years. you meet him in person and he is not a charismatic guy. i think the allure of bernie madoff came from the money, the allegedly purportedly consistent returns he offered even when the markets were down. people were drawn to him that way. it was surprising to me how just normal he seemed it was almost -- that in a way was really unsettling. >> when you talk to a guy like
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litt, what was the most surprising thing they found? >> the fact that it can go on and nobody, even employees of the company, not realizing that. what other surprises >> it was interesting for a prosecutor like marc litt, this was different. this was being told there was a confession and they had to come up with a criminal complaint that would last that, would stick through all of these years both in terms of forfeiture, in terms of -- i mean, they didn't know at the time whether madoff was going to immediately plead guilty it took him three months, which is a relatively short time, but it was sort of a -- almost a crash course of trying to put this together in a way that would serve the victims and
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serve justice. can i ask a dumb question. what if somebody was doing stuff here that never went anywhere. did a fake job for years what -- are we supposed to believe the employees that work there? a lot of them had zero idea that nothing they were doing was real >> well -- >> how does that happen? >> reporter: it happens -- well, first of all, 15 people have either pleaded guilty or been convicted in relation to this, so you can't say that the employees weren't involved did they know the exact nature of the fraud all indications are, no. nobody was charged with that, but they were charged and convicted in most cases of falsifying records, of doing things that they probably should have known they were not from high school
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friends or college they were not people that were wall street pros, they were taught by madoff and if you believe that nobody else was complicit in the fraud in terms of how are we going to -- how are we going to make these trades fictitious over the space of some of the years, that's how. >> scott cohn, looking forward to your coverage all day, my friend thank you very much. still ahead, what to watch on wall street what does jimmy urios think is the most important thing for you and your money we'll find out it's mystery chart time. a commodity is soaring and it's a mystery chart and another all rolled uin op ne because that's how we roll here on "worldwide exchange." and serve with confidence that it's safe. this is a diamond you can follow from mine to finger, and trust it never fell into the wrong hands.
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♪ ♪ this is a shipment transferred two hundred times, transparently tracked from port to port. this is the ibm blockchain, built for smarter business. built to run on the ibm cloud.
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i think that's a fairly bullish scenario normal world we'd say if 2600 breaks, look out, we're going to zero i'm being dramatic >> the dow going down 700, recovering like we did the other
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day, that's not a healthy market that's not a normal market that's a computer market we all hate the algos with when we fall. can all of the billion dollars computer driven trading companies help us on the up side, jeff can they help us be the here, not the zero. >> when we beat the heck out of them, let's remember in normal market functions there is some liquidity provided by them you get prices on in and outs of your trades because of the algos and hmts it starts to move in a direction where i see the effect as being disproportionate to what normal market would be and not healthy. we're not in a bear market in a corrective phase the bullish moves, the spikes higher can be relatively violent on their own. they exacerbate them on the up side as well. >> what's the most important thing to you this week >> well, from the sentiment stand point it's at 2600 level
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when you go to the fundamentals of it, the fed and china are tied the thing that surprised me, the fed said they think things are slowing and their response will be less hawkish. i'm surprised that people are hooked onto the fact that the fed thinks things are slowing. i think the take away is that they're not going to be as hawkish. goldman says less than a 50% chance of a march hike i think the markets are reflecting that as well. to me that's a big and bullish deal. >> rolling it back jimmy urio, goodwin by the bears. >> yeah, it sure was. >> see ya. time for our rbi looks like everything is down in price everywhere but here on "worldwide exchange" we like to find some winners for you. here you go. palladium, up 21% in three months going back above gold prices for the first time in 15 years diesel is dying. palladium is used in catalytic converters for gasoline cars
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if you're looking for a winner, that's it. that's it for "worldwide exchange." "squawk box" is next ♪ there's no place like home ♪
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argh! i'm trying... ♪ yippiekiyay. ♪ mom. ♪
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good morning are we in for a dismal december? all 30 dow stocks are down for the month. the futures are pointing for a lower opening. they have improved as the morning has progressed a full market rundown is straight ahead. tesla ceo elon musk taking another shot at the agency that stripped him of his chairman title. this time on "60 minutes." and a law and order update carlos ghosn, been formally charged with financial misconduct huawei ceo back in court
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it's monday, december 10th, 2018, and "squawk box" begins right now. ♪ ♪ live from new york where business never sleeps, this is "squawk box. >> good morning, everybody welcome to "squawk box" here 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. we have mike santoli as a guest here this morning. we are watching the u.s. equities this morning. we're off the lows of the session by a long shot it looks like the futures are down by 35 points. the s&p down 4.5 and nasdaq down by 8 points. comes after a pretty horrific day on friday in the markets wrapping up a rough week dow down 4.5%. the nasdaq down by almost 5% mike, after friday's action, where are you feeling it

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