tv Worldwide Exchange CNBC December 5, 2019 5:00am-6:00am EST
it is 5:00 a.m. at cnbc of the here is your five at 5:00. going for two stocks trying to make a come back on upbeat trade news but can futures hold? >> taking it to the courts huawei unveiling a new legal challenge against the u.s. black list we are live with reaction there. >> m&a under fire. a new bill from elizabeth warren that could target years of multimillion dollar megamergers. and opec submit in the
spotlight. some are calling the most interesting summit in years. our own brian sullivan is on the ground there call it an amazing turn of events as steve cohen is reportedly heading to queens as "worldwide exchange" begins right now. ♪ >> good morning and welcome to the show we have breaking news out of the european union joumanna bercetche is live from london with those numbers. good morning >> so this is the third reading we've had for the eurozone third quarter gdp.
0.2% versus quarter two year on year we have the retail sales numbers for euro eurozone at 1.4% versus expectations of 1.2% the picture for europe has been some what dimmed by weaker retail and the global trading environment. one of the economies we are looking at closely is germany. the numbers there, exports have been moving in lock step with global trade you may remember in the third quarter, germany managed to skirt a recession coming in at 0.1% with an expectation of 0.2% for this time being eurozone is averting a recession not the least germany is one global markets have been focused on taking a quick look at global markets today.
the picture is mixed we had weak german factory orders for the month coming in minus 5.5% year on year. not a pretty picture for manufacturing. france, and italy still in the green. keep an eye on the political developments in france very big demonstrates expected on the proposed pension reform proposed by president macron >> and everything happening with the pound and the election in the uk so much action in europe right now. thank you joumanna bercetche live from london for us. back home, major averages reversed a three-day slide you can see the dow jones would up about 60 points, the nasdaq abo about 16
>> maybe a slight tick higher. 10-year 1.78%. the two-year 1.58% in asia, a positive trading sessionover all. the nikkei up 0.7% south korea up a half a percent. abe launching the first mass fiscal stimulus with $121 billion package to help repair storm damage, upgrade infrastructure and upgrade technologies described as a 15-month budget described as one of the largest as the island nation prepares to fend off an economic slow down general motors and south korea's lg chem are reportedly ready to announce a 50/50 joint hire
today to make batteries. the facility is expected to be in the lawrence town area. gm shares up lg chem shares in korea down new comments following the bullish report on trade talks. officials saying tariffs must be rolled back and the two countries remain in close contact. new this morning, u.s. senator and democratic hopeful elizabeth warren reportedly drafting a bill that would call on u.s. regulators to retroactively review about 20 years of megamergers and ban such deals going forward. cnbc has confirmed several details of the draft antitrust proposal including a ban on mergers involving a company with $40 billion plus in annual revenue. a ban on merging two companies
each with at least $15 billion in annual revenue. there is a small chance this could be introduced by more likely punted towards 2020 as she works with the head of the house antitrust committee. no comments from senator warren's office formally joining me now in a first on cnbc interview is the president of american's for tax reform, grover norquist. does this have any shot of making its way to the presidential desk? >> this proposal to retroactively go back and undo mergers. this is one of the things in the constitution that mrs. warren has not read is specifically forbidden. she also wants a wealth tax
which is also forbidden by the constitution my guess is she won't be able to do either. >> when you say the constitution says >> the constitution says, you can't go back and hang somebody for something that wasn't illegal before >> my point being, if there is such an overt anti-constitutional aspect, how is it politicians can float these kind of proposals and get any traction or is it strictly a public relations stunt >> it is a public relations stunt and she is saying i hate mergers. what decade does she think we are living in? we are not living in a time with small companies. american leadership has larger
companies. it is really an odd 1910 world view and 1910 numbers and not modern numbers >> there is a certain reason why these particular topics are getting more traction. we weren't talking about this before they are forefront of this presidential cycle now is there anything that can be done to address concerns about this kind of environment corporate wise that doesn't infringe on our constitutional rights as americans? >> the most important thing we did was take the corporate rate from 35% to 20%. we went to a regional based tax system rather than worldwide so we are no longer double taxing american companies overseas and no longer valued for foreign companies to buy american
companies and make them more valued because they are no longer in the united states. it was our on policies driving american companies out people like the democrat front runners used to complain about that this he were the front runners with the tax policy. when we undid that, we haven't had the american companies fleeing by the hundreds because we no longer have a worldwide tax system and the 35% rate. the two together was what was so damaging there is a lot we can do taking the rate down. firms being bought and they are likely to move in the other direction which is good for the united states and good for the world economy. >> a hot topic that will gain more momentum. thank you for joining us with your thoughts. watching ahead of the big opec summit where they will
discuss deepening crude production cuts by 400,000 barrels a day. that is where we find our own brian sullivan as we often do at opec meetings. good morning, brian. let's talk about what is happening with this meeting. opec today and then opec and company. opec and friends tomorrow, right? >> it certainly is, dom. you nail it had. i am calling it the oscars of oil. you can see -- we have somebody departing the meeting now, which is unusual because the meeting just began i did not get a good eye ball on who that was i believe it was iran but i am not certain. one of the delegates just left
the meeting when it just started 10 minutes ago we have heard this is a live meeting. if you are an oil market watcher and you see one of the ministers leave 10 minutes after the meeting began, you can read what you will going to the story line about what just happened there key story lines. the expectation coming in was this is not going to be an eventful meeting 3 to 6 months was the only thing up in the air. last night, the report was that maybe they would do deeper cuts, longer cuts to country from norway, brazil and the united states this is the first meeting that is one of the sons of the king, the first meeting where aramco will become a publicly traded company. they'll price today and begin trading on december 12 this is the back drop of u.s. oil and gas saddled with
hundreds of millions in debt they are hoping that opec, inside this building, long the adversary of u.s. oil and gas may be able to firm prices up to the point where some may be able to recover some money. opec in? weird way be the hero for the united states. >> you mention the united states prominently here the u.s. is the biggest petro producer out there how much of a topic of conversation is the u.s. oil production picture at this opec meeting and will it factor into whether the decisions are made at this live meeting whether they extend cuts or cut further or deeper? >> the answer is two fold.
a lot and yes. you are right on two counts. everybody talks about the united states i've been coming to opec meetings four or five years. in that amount of time, the united states has gone from 8 million, 9 million barrels a day to 12.5 barrels a day when year over year, globally they are down because of manufacturing in europe and by the way, this trade war thing. the u.s. is now considered not the world price maker but pretty close. we are at 12.5 million barrels now. for the most part, oil is oil. it is a commodity. if we sell more, opec may sell less their job is to balance out between where we are going up. we will go up next year and where they might need to come down over a longer period of time you have russia.
the u.s., opec and russia. russia will be here tomorrow those two groups trying to mitigate i'll leave you with this $600 billion is the total amount of net debt u.s. producers have. about $240 billion of that is due in the next four years if they cannot refinance or extend that maturity because banks don't want to lend or wall street wants nothing to do with it you are going to have a surge of bankruptcies in midland, texas >> no doubt a lot of oil traders watching closely we got a lot more from you coming up. when we come back, why huawei is taking the u.s. to court. plus slack ceo taking on microsoft. slack shares up 3% pre-market.
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company from the american market frank holland joins us now >> thank you, dom. seeking to oversee a ruling. huawei filing a legal challenge late yesterday with u.s. appeals court. it claims the decision by ftc unfairly labels it a security threat claiming it is mistaken that it and another company has close ties to the chinese government in may, the u.s. put huawei on a black list restricting american companies from doing business with it. some rural carries still use and rely on huawei equipment saying the u.s. has gone too far, ultimately, the ftc's
decision will not have a substantial impact on business >> we kind of don't need america but we want to be able to serve our customers and continue our partnership with suppliers from america. >> the services provides subsidies in rural areas and schools and libraries. it was granted a 90-day exempt to allow current customers to continue receiving support >> why shares of five below are set to surge plus kid tech under fire why disney plus, youtube twitch and more could soon come under government fire. it's just not right. but with sofi, you can get your credit cards right by consolidating your credit card debt into one monthly payment.
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exclusive interview at 8:00 a.m. eastern time >> shares of rh slipping the company known as restoration hardware rh says tariffs aren't a big challenge. it has the flexibility to source from many different countries. and shares of five below are jumping. the third quarter earnings beating forecast helped by the opening of new locations. those shares up by 5.5% in extended training. steve cohen is set to meet the mets in a big way. plus >> announcer: today's big mbnuer $711 billion is how much opec earned last year
time our own brian sullivan is there covering all the angels. brian. >> thank you it is the first meeting with the new saudi energy minister who is the son of the king and half brother to the crowned prince. the first meeting where we have the overarching u.s. debt problem stairing us in the face. the aramco ipo, that prices today and will start trading december 12. the saudis have yet to show up we are shaping ufop r a long and interesting day here at the opec meeting in austria servicenow put our workflows in the cloud.
huawei launching a new legalening with the united states over its crack down we are live with the latest there. the oil industry coming together amid continued head winds. brian sullivan is with us from vienna and the government asked to look at companies targeting your kids "worldwide exchange" rolls on. welcome back to the show it is thursday, december 5,
2019 looking at the top headlines with frances rivera from new york >> good morning. we start with breaking news overnight. a lockdown has ended after a shooting at the pearl harbor ship yard in hawaii. a u.s. navy officer shot and killed two and then killed himself. there is no indication yet whether the civilians were targeted or if this was a random attack house democrats laying out their articles for impeachment three constitutional scholars said the president's actions were an abuse of power another the republicans brought in disagreed it is unclear but the president's legal team has until
tomorrow to decide a few hours ago, the world famous christmas tree here was lit in rockefeller center everybody loves it but we have nbc employees that have to get to work and so we divert >> it is officially christmas in new york stock futures half way through the hour this time around. we could have two days in a row. we'll halt the slide the dow would be up about 85 points and the s&p about 9 points and the nasdaq about 35 points eunice break this down for us. what is the challenge and what
does the company have to do to win in its efforts here? >> huawei is talking on the ftc in court the company has said it is fighting the designation of it as well as the local rival as a national security threat the ftc has designated these companies as risks in the u.s. believing these companies have ties to beijing and the chinese military and because of the way the regulations are, they believe beijing puts demands on these companies and the companies have no choice but to comply on intelligence gathering. so huawei has now said that the fcc doesn't have the evidence and the company is being penalized for its chinese roots. the fcc decision is important to huawei because it bars u.s. customers from tapping into an
$8.5 billion government subsidy program to help build out the wireless programs in rural areas. huawei and zte is used in a lot of those areas it looks like the u.s. carriers will have to remove and replace that chinese gear from existing networks the petition is the latest example of a new strategy that huawei has in place to take on or defend its representation through legal means as well as the major pr campaign. dom, there is a question as to whether or not huawei and the latest aggressive move is going to impact the trade negotiations so far, it looks as though both sides want to keep the issue separate >> thank you for that. speaking of, overnight, china's
commerce offered new comments on the trade talks with the u.s. saying tariffs should be reduced in order to reach a face one deal let's talk more about this with our guest. clayton, you heard eunice's update will we have an impact to trade? >> i think eunice is right at this point, they are really trying to keep the issue whether that's the fcc ruling or to limit access in growth, really trying to keep that separate from the trade negotiations. >> let's say they can keep it separate, how are the markets responding to these particular headlines. many accusations that this seems like a manipulated market. what is it investors have to focus on more to avoid noise for the trade headlines coming out
whether they are positive or negative >> you hit the nail on the head there. the issue is being able to separate the signal from the noise. great example would be president trump's comments at the nato summit in london where he said, look, i don't necessarily need a trade deal until after the ee election okay great, the markets took that very negatively. he said things like that before and towards the end of almost every negotiation his administration has been involved in there is an issue of being able to separate what is important and what is not. huawei, the most important issue. the more overriding thing to watch is how is each side framing this the chinese is obviously concerned about the political framing of the deal. that's why they are pushing for tariff roll backs.
they want to be seen as getting as good a deal president trump wants to make it clear that is not his intention. >> what is the u.s.'s strategy right now. heading towards a tariff deadline, if you will. a soft one of december 15. how do those talks kind of play out in the early part of 2020? and do we believe president trump when he says he doesn't want to do a deal until before or after the 2020 cycle? >> i would start with your last question absolutely, president trump does have some advantage to holding off from a deal. a full let's get together the minute he signs anything like that, he'll immediately capitulate that he doesn't get enough
by the same token, december 15 tariffs may be delayed from that we've seen delay and to make room to negotiate and try and get a better deal. that new deal might not be >> thank you for the thoughts on trade this morning >> back to oil with crude prices under pressure again. weigh being deeper output cuts we are looking at prices now looking at the big moves joining us again with more on what we need to be watching today. i'll send things over to you >> hopefully the arrival of the saudi delegation once the security guards come
out, you know they'll do that. before we welcome guesses, two things we care about ultimately, why are we here? for the u.s. to know if it's going bankrupt things the global demand will pick up. we have u.s. growth slowing. we are expected to grow but that growth might be slowing. that may help to provide the floor. on the bear side, what if demand doesn't go up. they are just putting guesses out there. if global demand is not up, that could be on the bear case as well iraq and nigerians for a long time don't adhere. you got a lot of new production around the world norway opening up a new field.
350,000 barrels on the line. oil has been pretty much flat. let's bring in a guest now, director of global market. if the saudis show, i'll have to pop over there my apologies in advance. this was supposed to be an uneventful meeting i'm concerned about what will happen to u.s. oil and gas what do you think? will they go for longer cuts deeper cuts or both? >> i think they know they have to do something next year. >> it is almost next year. >> yes what should they did the issue is to cut a little bit now or go for the deep cut now and deal with the fall outnext year it is really unresolved right now. >> you know it is funny, we go to your conference in houston. you are looking at the u.s. oil
and gas industry that is $600 billion. the stocks are down 50%, 60%, 70%. is there anything opec can do? the saudis look like they are opening up here. excuse me. here we go the first meeting with his highness his excellency hello, your highness, brian s sullivan from cnbc how do you expect the meeting to go [ inaudible are you expecting a long meeting or a short meeting, sir? [ inaudible thank you. i'm still live on camera those are the comments from the
saudi oil minister coming in his first meeting. he is son of the king. half brother to crownedprince. he's been in the oil and gas ministry about 40 years. basically said he's expecting a good meeting and hopefully not too long of a meeting. we've had opec meetings that have gone on for days. i apologize for jumping you out like that. we have more delegates arriving here he was smiling can you read into that do you think that is a good sign >> look, brian they are trying to put a floor under the price. they are afraid it might go down further. as for increasing it, i think you had a right point. it depends on demand next year that is crucial. >> do you see demand flat? or do you see it ticking up a bit? manufacturing may be coming to an end >> it is pretty enemic right
now. just really not looking good right now. >> thank you for rolling with that that's live tv you know what i mean you can see the saudis are here. the meeting is under way we'll be with you all day long to figure out what it means for oil and gas industry. >> what could be a line meeting. we'll see you later on the show. dollar general and tiffany prepare to report earnings where retail stands as the clock ticks down on this holiday season
both stocks up on what you see there. after what many are calling record breaking black friday and cyber monday numbers as a whole. is the american consumer still there and still powerful good morning, january to you. luxury versus budget who is earning >> both can win. it is clear that the lower levels like dollar general, walmart and target they are winning the upper end is still really good we haven't seen any cracks in the consumer so far. i know there was a report out that the upper end might not be spending as well we saw a really strong black friday across the board. you think about thursday threw monday you think on line and off price.
thursday was up about 20%. in store must have been up in the range of 4% and maybe more despite the fact traffic fell. the people who came in were more likely to buy and they spent more it was really a strong performance. the consumer looked fabulous over that time period. >> in your experience, what does drive that spending at that level? is it the wealth effect? can we expect to see those luxury retailers do well because the market is doing well >> what we didn't get was the big drop in the stock market like we got last year. that is a big help when the market is strong and ask that values stay up you just saw, everybody is trying to get oil prices up. because the consumer is doing really well on energy prices that is really a good thing on the ability to spend they are all working
we were talking record low unemployment and rising wages. probably the 3.5% level. it is really a strong environment. there is no problems with credit no matter what you heard, there has been a few bank tweaks on tightening it is great out there on all aspects. >> you spoke a little about the falling oil prices helping out the lower end of the consumer spectrum the budget spenders out there. let's talk a little more about that we are seeing a little more p k perculation on that end. what needs to happen for budget spenders to continue to spend and does that make those dollar store-type investments out there going to 2020? is. >> it absolutely does if we have stability and energy prices.
two things affects the average consumer energy prices and job availability coupled with rising wages, of course the stability of that and stability from the cost side for most people, that means energy as long as that is solid, the consumer has to be healthy we have to have some stock to stop the consumer. this consumer believes everything is fine we have this job so it is all working for that consumer. >> thank you for those thoughts on retail and luxury and budget sides this morning time to look at the top
trending stories today with frank holland. >> something a parent like yourself may be interested in. calling on the federal trade commission to call on digital media groups that may be preying on children. they are asking the ftc to force companies to reveal how they advertise to kids and track them on line and select and store their data the director of one organization said it would likely include disney, google and tiktok. >> so i agree with this and i kind of -- i struggle. it is a slippery slope where do you draw the line what constitutes this targeting towards kids >> the question isn't whether they are targeting kids. companies target everybody the question is, how does it
impact them? moving on, more brands tabbing into the plant based meat boom the pizza offerings will hit store shelves in 2020. >> would you eat it? >> i would >> i would too >> duncan doughnuts, mcdonalds everybody is getting into it everybody is open to it. >> it is i went to a duncan and i tried that beyond sausage patty. it tasted fine >> to me too the burger king impossible whoper is good too >> haven't had that yet. >> moving on, steve cohen is in
a deal to purchase the mets giving him 30% ownership in a note to clients, he made clear becoming a majority owner of the team would not have an impact on his first passion, investing. he could become baseball's wealthiest owner >> the first entrance of a hedge fund leader into the mlb >> two hedge fund managers also bought the milwaukee bucks different kind of investment for sure still ahead, boeing exec tasked with handling the company's response to the crisis announces his resignation. that story coming up [ electrical buzzing ]
time for your executive recap. the headlines you need elizabeth warren is in a discussion to introduce a bill before the end of the year to aim to ban mergers of companies with over $40 billion or two companies with at least $15 billion of revenue a piece u.s. antitrust regulators are expanding the probe of amazon according to the record, they are looking beyond the on line retail operations to include the massive cloud computing division they've been asking about practices surrounding amazon web services the boeing executive tasked with leading the response to the boeing crisis is retiring.
the exit of commercial chief engineer and will be replaced by vice chairman of engineering of airplanes. joining me now is david nelson, chief strategist at bell point asset management is this all it was three days of a sell off and now we are done? >> i don't know. if you can tell me what today will be like, we are always one tweet away money never sleeps we are in the middle of a trade war. there is a cost to war you and i can debate the tactics being used i don't think what is up for debate is the fact that we can do this. both sides want to be tough on china because we want to get to the heart of this. >> let's set the world aside, do you think the markets in the
world and investors in the u.s. have the ability, the gut the fortitude to weather knowing they have to get a deal done >> we have the resolve until they start to hit our personal pocket book. the farmers have taken the brunt of this, the president wants to get a phase one deal done. that means a $40 to $50 billion ag buy to help shore up his base the deaf ivil is in the detailsn this nobody expects a comprehensive deal with this >> let's take his words. i don't feel pressure to make a deal maybe it is better to wait until after the election >> that's true though. >> let's say that is true. how does the market play out in 2020 if we are not involved in
getting a deal done? >> it depends on where the interest rates are significant part of the rally has dipped on the basis. the first analysis is the risk free if that remains low, if they start to rise if they go anywhere like they were last year, you couldn't get ought of the stocks. the fed has made it very clear >> the short end of the curve. >> the long end of the curve insurance companies, pension plans, they start to derisk and pull money out they compete for your dollars just like everything else. fine yields are uncompetitive. stocks are the way to play >> is this going to be a holiday cheer shopping season for investors a like
>> i hope so it depends on jobs numbers that is very important that jobs hold up and consumer spending holds up that is the base of the economy right now. >> it has always been the base >> that does it for "worldwide exchange" this morning "squawk box" picking up all the coverage beginning right now another trickle of trade moves and a move for the markets. we'll take i liyou live to beij. >> the details of elizabeth warren's new antitrust plan. >> plus we'll go live to vienna where opec ministers are arriving for a meeting that could have big implications on u.s. oil thursday, december 5, 2019 "squawk box" begins right now.
>> good morning, everybody welcome to "squawk box" on cnbc. we are live from marketsite on times square tom farley is filling in, the ceo of acquisition group, contributor for cnbc and former president of nyse. u.s. equity futures look like the dow almost up by triple digits this comes after major gains gains for the markets yesterday breaking the three-day losing streak you saw the dow up s&p up almost 20 points. nasdaq up just over a half a point. this morning