it is 5:00 a.m dhi china stock market reopens it takes a tumble. brazil swinging to the right the nation headed for a second round of voting after the right wing candidate took a commanding lead in this weekend's election. apple, it found no signs that china planted spy chips on to its hardware. hey, what's wrong with ford? the car company announcing a huge round of layoffs. is the new ceo's job already at risk and florida's gulf coast at risk

and on high alert. tropical storm michael taking aim on monday, october 8th as "worldwide exchange" begins right now. good morning welcome from wherever in the world that you may be watching i am brian sullivan. happy monday thank you very much for joining us well, the theme of the stock market the past few sessions has been the selloff in bonds, rates rising and the squeeze on stocks that is probably going to take a break, at least for one day. the u.s. bond market is closed today for the columbus day holiday. stocks are open. you can expect lighter volume. right now futures are indicatin a down move. it is early. volume is light. that can change. no bond trading today. rates at least for today are going to stay on hold. european markets though are open they are down. italy the notable standout the italian market is down 2%.

2.5% bond yields the story for different reasons. their budget deficit and some of the economic concerns there. the italian stock market continues to tumble. we're seeing big moves in china. in fact, bigger than italy the shanghai composite is down nearly 4%. down 3.72. the hang seng and korean market are down as well remember, the chinese market has been closed for all last week, five days, no trading due to a week-long holiday. a lot of shifts are happening in a couple of hours. the japanese market not up here, why? because it is closed for its own holiday. shanghai is the story to watch today. let's talk now not only about the big moves in china but the big moves the government is trying to do to help there nancy is live in singapore nancy? >> hi there, brian yes, rough start to the trading in asia.

read across the region as you point out. the big story around china you highlighted the big drop in the china market there's a triple r cut cut of 100 basis points. many were calling for a triple r cut. the move is going to inject about $100 billion into the banking system that's seen as good news for the banks, good news for investor confidence but we didn't see that play out in the markets today. keep in mind the central bank said that its monetary policy is still prudent, not accommodative. that is significant. many are wondering whether further easing could be in the cards. let's show you what happened it was rough off 3.7% you can see the pain points off the board. i want to point out what happened with the currency

a lot of controversy around the juan we are getting closer to that 7 mark which many say is very psychologically important. several investors and strategists suggest that the authorities in beijing won't want to see it get to that level. >> nancy hungerford live in beijing. currency, nancy, thank you very much. let's turn back to state side on this monday morning and dig more into interest rates versus stock story stocks falling last week as bond yields surprised a lot of people despite higher in a couple of days joining us is dan rood we need your steady hand today are you afraid of higher interest rates >> no, because rates are rising and there's positive growth in the united states. i think the upcoming earnings season is going to be very good.

stocks are traditionally weak seasonally this time of the year so it doesn't surprise me that we're seeing some weakness we're also right in front of earnings season. there's nothing companies can say to counter individual moves. >> the bears would say that higher rates if anything risk -- two big risks. number one, you slow the economy. number two, it needs to bring the multiple down for the stock market now you're competing with rates. you've also got the cost of funding which should bring down valuations. >> so the last time we visited i showed you a chart about the price earnings multiple of the stock market at the beginning of the year and where it is now and it's actually somewhat lower despite the rise in markets. that's because profits' growth is so robust and should continue to grow. so that's where we see things going right now. valuations are reasonable but i think it's about markets and

sectors. >> look at the chart the white line, by the way, we're seeing bond yields, the market here, it is if you're on the radio it's a dramatic difference in other words, they're going in opposite directions. probably more of the bond move we're seeing. >> right >> there's a lot of worry. everything you read is rates are going to crush stocks. >> right. >> why is that sort of theme incorrect overall? >> well, it depends how fast rates rise if we get interest rates that move so quick -- >> it was quick last week. >> it was a little bit quicker than usual but not without -- not out of a range of what would be considered normal let's also put -- calibrate things we're still at 3% on the ten year. >> i know that historically that's low. i get it >> yeah. >> i think it was the rapidity of the rise and the hawkish tone

and also that we did get a trade deal with mexico, canada you have the framework for both of those deals that will get ratified next year all ice are going to focus on china. this puts enormous amount of pressure on the chinese to come with some kind of deal with the united states. they're the big loser in this. >> and their market is suggesting that, the chinese domestic stock market opening up after being down nearly 4% the bank of china is making moves as you saw talk to us about how we can protect ourselves with a floor cleaner and a dessert topping? >> that would be convertible securities a convertible is two diametrically different parts. >> it's a preferred stock and mini bond. >> bond or common stock or preferred and common stock you do get the underlying move of the underlying stock.

it's one of the only fixed income asset classes that can actually perform well in a rise interesting rate. >> it can. historically rates go up, convertibles can do well. >> because rising rates mean that call option, if you will, that's embedded in the bond has more value that offsets any decline that you might experience in the bonds themselves >> everybody is looking for opportunities. it got more interesting last week looking at convertibles. we appreciate your steady hand thank you for coming in. >> your top corporate story today apple responding to the story that it suffered a serious hardware hack at the hands of china. the company extending a letter to congress denying the story. bertha coombs joining us now >> reporter: that's right, brian. apple's top security officers saying the company found no signs of suspicious channels or

hacking. apple's i.t. chief says apple has repeatedly investigated and found no evidence from the main points of the report on thursday the article alleges chips inside server sold to appleby super micro allowed for back door transmissions to china in the letter, which was provided to reuters, apple's vice president said the company's proprietary tools are continuously scanning for precisely this kind of outbound traffic. nothing was ever found, end quote. apple said it has not been contacted by the fbi with any concerns apple's letter follows statements from the u.k. cyber center and there is no mention by apple or amazon

they stood by the story based on a dozen anonymous sources. this is one of the things, brian, that we were very concerned about. it's exactly what you're worried about that perhaps there is some sort of trojan horse in some of our technology. >> yeah, very small trojan horse. bertha coombs, thank you very much. up next, it is going to be a great christmas for retail it is going to be a terrible christmas for retail the answer to that retail riddle is next? >> it wouldn't be a rocket lawn ch withoutpa sce ex. full footage when "worldwide exchange" continues. place, the xfinity xfi gateway.

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simple. easy. awesome. click or visit a retail store today. welcome back to cnbc top three stocks, airplanes, oil rigs and retail. airbus reportedly expected to name a new ceo as early as today. that stock up fractionally in europe. next up, baker hughes buying a 5% stake in abu dhabi's state run oil company. it values it at $11 billion and it marks the first time ever abu dhabi has sold some of its operations to a foreign company. walmart teaming up with mgm to create content for video on demand service it will be on family friendly movies and shows

a formal announcement is expected to come on wednesday. let's stay on the retail story because stacy, the riddler is joins us now. president of sw retail advisors. we left our viewers, stacy, with your riddle going into the break. it's going to be a great christmas for retail but maybe a bad christmas for retail can you solve your own riddle please for $400, stacy >> yes so i think if you look at the consumer, everything is good money is burning a hole in the consumer's pocket, however, certainly amazon had to go last week and ruin the retail party and say that, hey, we're going to raise wages for retailers, once again they're going through a wave where their costs are going to be going up again so that is

going to put pressure on the bottom line for a company like jcpenney and bed, bath and beyond if i'm hearing you correctly, we could have a great christmas in terms of consumer sales. up 4%, 5%, whatever it is, but maybe don't expect the stocks to respond because their costs are likely to go higher? >> exactly and i think that's the expectation out there right now is, yes, sales will probably be up over 5% at this point for holiday and that's great but, again, this needs to translate to the bottom line, particularly in a time when so many retailers are still very behind in terms of their ecommerce spending and need to get up to speed. now you throw in increased wages and, you know, you look at that operating margin ryan and say, where is that expansion coming from >> tell us why you think -- i'm

going to sell like a millennial is so gd, mg. >> so gd, geographically desirable. >> gd, what are you talking about? >> you know, when you're in your 20s you had to date somebody who was geographically desirable tiffany, if you look at the luxury sector right now, it's been incredibly healthy. tiffany has certainly lagged behind however, not only are they getting their product more modern, doing things on the store testing level, but the place that tourism is weakest in luxury is europe and they have the least exposure to europe of any of the brands there. they're teed up to a nice holiday. everybody knows they're spending on the flagship store. >> a lot of our viewers like to

bottom feed. bed, bath, and beyond the stock looks cheap. you say it's not avoid it. >> agreed. operating margins have gone from 13% to 4%. they have lagged behind what i was talking about in terms of spending on ecommerce. they've been driving the business through coupons and promotions and they have a lot more spending to do. they've had a management team that needs to evolve i think they're going to be hard-pressed to find great labor. i would avoid bed, bath and beyond it might look cheap, i think the numbers will come down. >> stock prices, they need to clean up in aisle 6. stacy, we'll see you soon. thank you very much. >> good to see you. still ahead, the big fang fumble tech stocks also under pressure this morning we'll find out exactly why the

sector may not rise to the rescue plus, we are continuing to follow tropical storm michael. it is expected to make landfall as a hurricane we'll tell you when and where next we're drowning in information. where in all of this is the stuff that matters? 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. plaque psoriasis tremfya® is for adults with moderate to severe plaque psoriasis. with tremfya®, you can get clearer. and stay clearer. in fact, most patients who saw 90% clearer skin at 28 weeks stayed clearer through 48 weeks. tremfya® works better than humira® at providing

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there is a live look at hong kong, 5:20 p.m

the domestic chinese market, the shanghai comp was closed last week a lot of catching up to do we're seeing the market down nearly 4%. government taking some steps as far as credit goes to put a lid under, the bottom under that not the case right now big declines across the board in asia. meantime, in washington today president trump will hold a formal swearing in ceremony for supreme court justice brett kavanaugh. now to nbc's tracie potts who's in d.c. with more. >> reporter: hey there, brian. the nomination fight is over but the politics of this may not be over both sides now looking ahead to those mid-term elections and the effect that this political nomination fight may have on what happens a month from now. >> a public swearing in for brett kavanaugh is set for tonight.

>> there's a huge taint. >> we must not agonize we must organize they're urging thousands who demonstrated to speak out again with their vote in november. >> if we want to correct the course, what do we need to do? we need to take the power. >> reporter: but republicans -- >> i'm happy as a clam. >> reporter: are ready to move on. >> the overreach of the protestors at the capital has actually energized the republican base. >> at risk, maine's susan collins. she voted yes for kavanaugh as opponents raised $3.5 million for whoever runs against her in two years. >> i have to do what i think is right and over the years the people of maine have trusted me to exercise my best judgment that's what i did in this case. >> reporter: there's talk of an effort to impeach kavanaugh on sexual assault allegations the fbi says were not substantiated.

even some democrats say that's too much. >> i think talking about it at this point isn't necessarily healing us and moving us forward. >> reporter: the fallout may determine which party can turn out the voteless than one month from today. >> reporter: kavanaugh is set to take the bench tomorrow morning, brian. >> tracie potts in washington, d.c. thank you very much. populism is not just a growing trend here and in europe brazil's right wing candidate taking a commanding lead in yesterday's presidential election race. that race now appears to be headed for a second round of voting he has seen a surge in the polls in recent weeks after promising a sweeping crackdown on crime and corruption brazil's stock market has been rallying the biggest brazilian etf, the ewz, is up 13% in just the past month. the political fortune taking off like a rocket.

here's an actual rocket. spacex successfully launching the falcon 9 rocket on the west coast. the rocket launched and flipped around to the airport base launch site. up until now all of spacex's landings have happened and you took off and landed a rocket let's get a check outside the world of money and business. >> brian, good morning today ntsb investigators will return to the scene of a limo accident that claimed 20 lives in upstate new york near albany. the victims on board were out celebrating a 30th birthday when their stretch suv went careening off a highway, speeding down a hill into a parking lot where it hit a parked car all 18 people in the limo died two pedestrians in the parking lot were killed as well.

investigators have not yet commented on a cause. the 2018 hurricane season isn't over yet tropical storm michael is predicted to turn into a hurricane and slam into the gulf coast as early as tuesday. florida's governor rick scott has declared a state of emergency. taylor swift is breaking her silence on politics. she pledges to support two congressional democrats in tennessee. one of the issues she has addressed was lgbt rights and anti-discrimination. brian, back to you. >> all right phillip mena in new york thank you very much. we appreciate that terrible situation up there. on deck, weighing the risks. we are breaking out the "worldwide exchange" wall of worry. all of the things that you need to be watching in the markets for your money this week you can tell us if you agree or

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the wall of worry. literally we found not one, not two, but six risks to your money right now. we're going to lay them out and try to knock them down. have the fang names finally

lost their bite? big tech deeper in the red we'll find out what's been dragging them down and whether we can turn them around. and ford says job cuts are coming the company looking to cut costs. what's wrong with ford we'll have the story as "worldwide exchange" rolls on. ♪ glory days ♪ don't let it pass you by ♪ glory days >> yet another example of a great artist defined by his or her worst song i am brian sullivan. happy monday morning or happy evening wherever in the world that you may be watching from. here's how your money and investments look right now as we're halfway through the 5:00 a.m. hour. the u.s. bond market has been the story. rates rising the story it won't be the story today. only today you know why it's columbus day and the bond market is closed stocks are open and stock futures are implying a slight drop of about 60 points at the open but we're not going to see

bonds move because, again, they are closed today your big market story is china it opened up today, they were closed all last week, and the shanghai market down 3.7% overnight. hong kong and south korea not down as much domestic chinese stocks taking a hit overnight. japan is closed today for their own holiday. so china and emerging markets may be one of the big risks that are out there. we thought we could put our heads together and find out what are the big things that we keep reading about. the big five or six risks to the markets right now. let's walk through literally our big wall of worry here and you can let us know on twitter, social media what you think whether or not these are things to worry about right now, rising rates. that's the big story to watch.

we're seeing the bond markets move oil and gas. we're at 75 here 85 over seas you probably don't buy barrels of oil but you probably do buy gallons of gasoline. the prices will be higher throughout the fall. that ties into the inflation story. rising rates and oil and gas a large part of the inflation story but it's not just oil and gas. emerging markets have also been a big risk i'm not going to say italy is an emerging market, it's a developing market but you can tie it in. the china trade war. that market reflecting what you're seeing. of course the mid term elections. we are now just one month out of a vote which is going to redefine and possibly recompletely configure power in d.c. in the house and possibly the senate

mid term elections, i'm sure you've heard about them. there's your wall of worry let's bring in a guy that can swing a bat and knock down everything you're seeing chad morganlander. he's thinking. he looks very serious right now. when you look at that wall of worry, chad, which one of those is to you the biggest thing to be worried about and which of that on the wall may be the fake news >> for me it's the emerging market as well as rising interest rates my general concern is that when it comes to emerging markets 65 to 75% of global growth over the last decade has come from the e.m. side, in particular china when you go to the rate environment, that becomes a much more competitive asset class. >> i was standing over there, now i'm sitting here maybe there's two of me, like that movie "the prestige." i think i just ruined that

movie. number one is emerging markets >> absolutely. >> it's not rates or inflation. >> keep in mind when it comes to the u.s. equity markets, if we're talking about the stock market, that is tied towards earnings and equity growth if they decelerate rapidly, if that happens, then that will affect multi-nationals and u.s. corporations. >> which of those do you not worry about at all maybe it's the mid term elections. is that in your sights >> mid term elections doesn't concern us even if the democrats get the house, we think that overall the u.s. economy is going to at least over the next 12 months be okayish with the 2.5% growth on gdp. oil and gas, it's at a spot here

where we don't think that will sap from u.s. consumption for consumers nor will it derail the global growth environment. really it comes down to a couple of things here rate environment as well as how fast the u.s. economy -- the global economy will go higher or decelerate those are the two critical levers. >> there's a school of thought if the house goes to the democrat, senate remains republican they can fight amongst themselves if they both turn democrat, there's another school of thought which is they're going to try to roll back a lot of the things that the president and the current congress have done that may be contributing to our recent rally so stocks can turn down. >> the critical thing to view there is what will happen to the u.s. budget. we were thinking and following the cbo's analysis on this

you're going to see deficit spending over the next 36 to 48 months it will be a wide deficit. that generally doesn't happen in an expansionary time >> politicians of both parties get elected by promising to give people things, not taking it away. >> no doubt. exactly right. >> deficit spending. chad morganlander, emerging markets your number one worry. >> let's find out what else is going to be on your talking radar today. time for this morning's top trending stories bertha combs back with us. what are we going to be talking about today? >> movies. >> wow, really >> yeah, good ones two good ones. we're only one week into october and box office revenues have already hit a record high for the month thanks to two big releases this weekend according

to comscore sony's "venom" won with 80 million. warner brothers "a star is born" took second place with 42.5 milli million. i'm excited to see that. >> what can bradley cooper not do >> he's so talented. >> "venom" has gotten the worst reviews and everybody eviscerated the movie. >> it's a super hero movie >> tom hardy is spectacular. >> he's a lot of fun >> this story, we've heard mad dogs and english men are the only one that run in the noon day sun. brexit has officially gone to the dogs hundreds of them marched against brexit in london

organizers called it a wooferundum. they hope it will add momentum for a growing recall of the referendum that pun is awful. just awful >> oh. >> all right let's move on. >> sorry banksy is making news again. when the gavel dropped, a shredder hidden in the picture frame began to shred the art collectors believe the painting which sold for about $1.3 million is worth even more now that it has been shredded because it is an historical art event. >> you got "punk'd" by banksy and it's worth more --

>> i'd rather have the picture. >> this way you have an art piece and an artwork that actually did something. >> you always have a story. >> exactly >> i paid a million for that and it dissintegrated. >> thank you very much now to the sports world. the milwaukee brewers broke out the broom. they beat the colorado rockies yesterday 6-0. they completed their three-game sweep. they will finish the winner of the dodgers/braves series beginning on friday. con kbrgratulations to the brewn the game went into overtime and the houston texans taking home a win thanks to a 36 yard field goal with no time on the clock final score, texans 19, cowboys 16. coming up, ford is in focus. the car maker announcing layoffs and some big changes, is the

ceo's job already at risk. here's how wall street is setting up the door. the bond market is closed for columbus day we are back right after this only half the story? at t. rowe price our experts go beyond the numbers to examine investment opportunities firsthand. like e-commerce spurring cardboard demand. the pursuit of allergy-free peanuts. and mobile payment reaching new markets.

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well, it may only be 5:41 a.m. on the east coast but there's already analysts hard at work bark class upgrading ge, that's right, general electric getting

an upgrade to overweight the analysts say over the past couple of years ge's share price has, quote, had more floors than the empire state building end quote. the firm says investors should reconsider ge given the company's new ceo. barclays sticking with the price target on the stock. stock is up nearly 2%. ge getting a lift at barclays. also today, ford unveiling a massive reorganization that will include cutting salaried jobs. this all comes as part of a bigger plan to stlalash costs paul, i've got no smart questions for you other than what's wrong with ford what's going on in dearborn >> this is a company that has more questions than answers. the biggest question about this program is jim hackett has been the ceo for 17 or 18 months.

why did it take this long to get started on something like this if it was so necessary why wasn't this done earlier people have been -- wall street analysts have been viewing ford as slow and indecisive this kind of reinforces that especially because this program was just announced on friday the actual cuts are not going to be implemented until the second quarter of 2019 which is six more months. by the way, you know, during that time if you're one of the more talented marketable ford employees, you're probably going to be starting -- you'll at least consider looking elsewhere for employment which is a great point, it can damage the company further paul, i'm sure you followed what happened at ge jim hackett had been there not even a year and a half i don't know if that matters anymore. do you think ford may pull a ge

and cut ties with hackett even this quickly because as we're now starting to see, that time line and that leash has gotten a lot shorter for ceos >> well, anything i said there will be pure speculation i really have no insight it wouldn't surprise me one way or the other, brian. this company has a lot of fundamental stuff to put its arms around. it outspent gm on product development. it has less to show for it what's being done to rectify that ford has gotten a lot of publicity for renovating the defunct train station. that's all fine and good but the company has been talking about we're going to use this to take on silicon valley. if i'm an investor, that talk worries me

a company with a credibility problem is talking about takings on silicon valley? why don't you put some points on the board before you start talking like that and start to rebuild your credibility in some ways >> i want to go back to the point you made you know gm is a larger corporation and yet ford outspent them in r&d, research and development in the past few years. where has that gone? you have the f-150 and a mustang and a bunch of other cars you probably can't name. what do they need to do that, to get back to, as you say, core competency competency? >> cost discipline two words. basically car companies have to be creative. ford has had terrific financial controls but somehow the balance seems to have gotten out of whack with product development

that's probably what these salary cost cuts are about frankly. >> i don't know if the flexor expedition is selling much paul, thank you for joining us nice and early on a monday morning. have a great day thank you. >> okay. thanks. let's find out now what is coming up on "squawk box." i'm sure ford will be a hot topic, becky quick interest rates, maybe a little bit of china thrown in. >> also brazil you had the elections overnight. what that will mean. the strong man candidate almost winning enough for a majority, which would have been the first time he didn't have to have a runoff in two years. she's been running down what the markets want to see. it's tipping on friday after we got the jobs report on that. that's been a huge issue mark grant has been talking about if you look at interest

rates, the rate of change that we've seen, we're looking at interest rates that are 22% higher than the average they've been over the past two years we're talking about historically incredibly low rates we'll talk to mark grant about that coming up at 6:30 we'll be speaking with nathan sheets about it. he is a former treasury undersecretary of national affairs. we'll get his take is is this the beginning of a change and things getting going. we're waiting to see above 3.25%. we'll see what that means. plus we'll talk about what's been happening with italy, the standoff with the eu continuing. strong words coming out of the coalition leaders once again this morning hearing more about that. all of that and much more to talk about it's coming up in a little bit. >> i can't wait to hear what the contributor -- >> michelle caruso-cabrera has a

lot to go. michelle came up with better notes than any guest host i've seen. >> she knows you guys and she's going to dig a little bit. she's going to poke and prod it will be michelle unleashed. >> see you in a bit. up next, are you, all of you out there, are you afraid of rising rates well, you may not need to worry. we're going to explain it's your morning rbi. it's random and interesting. stick around on audible. n of audiobooks and now, get more. for just $14.95 a month, you'll get a credit a month good for any audiobook, plus two audible originals exclusive titles you can't find anywhere else. if you don't like a book, you can exchange it any time, no questions asked. automatically roll your credits over to the next month if you don't use them. with the free audible app, you can listen anytime, and anywhere. plus for the first time ever,

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welcome back and good morning, by the way. the technology telecom and media sector getting a big face lift last month what does the brand-new communications services sector mean for you going forward dominic chu joining us now with more on that dom? >> sectornomics we're taking a look at the changing face of the

s&p 500. it encompasses many of the names that we talk about all the time, alphabet, the parent company of google, knelt flicks, some of the other big names out there. as we takes a look at some of the valuation changes there, communications services, according to a st rategis, used to have a price to earnings ratio of around 12.8 it goes up to 17.2 given the new media type companies and internet companies in place there. meanwhile, technology stays down and discretionary, the same kind of thing as well some of the media names have come out of discretionary into communications the old one is 22.5. the old one 23.3 look at the pe ratios. the dividend yields have changed as well. we have communication services, used to be a big hefty dividend

yielder. now they are diluted out the next one is technology its particular dividend yield, 1.1. the new one is 1.3 then the consumer discretionary is going to change the dividend yield take a look at the old 1.1, new 1.1. the communications services has taken the growth and left the dividend payers out. technology and discretionary changed slightly because of that, brian. back over to you. >> dom chu, very clear look there. bring in jeff killburg founder and ceo and let's talk about stock. i'll owe you dinner. you are big, fast, strong, disciplined. >> 6-0 >> and ranked fifth, not fourth. >> yes. >> i'm pulling for you

thank you, congrats again. let's get back to the markets. you heard dom's piece. do you think the structural changes of the market are in one thing a reason to find the tech stocks have not done well? >> it's interesting. domestically the u.s. tech stocks are strong. tech stocks in china we're seeing the bifurcation right now i'm not overly concerned about the u.s. tech sector we're only 2% off. global assets are being attracted despite the fact we are seeing surging yields in the ten-year note. >> when i talk about bonds, exactly, that yield, i like to talk to chicago people, no offense to new york people, because you guys are kind of the bond capital the folks i talk to in chicago say, brian, rates are rising less because of our fed and inflation and more probably because the chinese are selling them to either punish us and/or raise capital.

what do you think? >> well, that is the rumor that is not a verified rumor but i spent a decade selling ten year notes in the pits one take away is to understand them we saw 20 basis point. >> that's going to take the breath away. i think there's a lot of cush n cushion. we can pull back another 2 or 3% before anyone rings an alarm >> okay there, mr. ten year bond trader/running back coach for notre dame, do you think that the move we saw in rates could be only related to inflationary fears? it seems that velocity you speak of couldn't have come just from that >> i think there's one piece of the puzzle think of the u.s. ten year

market it's been foiled for quite some time this week is critical. there's a big auction this week. we'll see the appetite the two-year, five-year note is going to be advantageous the long end of the curve, that's where the fed is in a bit of a conundrum you could see the 3.5% in the ten year if that happens inside of five or ten trading sessions, you'll see a big reaction in u.s. equities and global equities as well. >> where am i taking you to dinner >> boca, lincoln park. home >> jeff killburn nobel prize for economics awarded, it goes to yale professor william nordhaus and

romer. congratulations to them and their colleagues because they don't do it alone. finally, your morning rbi. who is afraid of the rising rates. the fed is in focus and fear is f fulmeanting. did you know that they doubled just 3u7bd% to 6 pefrs percent the reason snbl inflation. did the aggressive fed kill stocks no, just the opposite. the dow's single best annual return in 40 years was in 1995 rising 33% the dow then jumped 26%, 22%, 16%, 25% and the next five years, five years of spectacular returns all with the fear of the fed hanging over the market. does not mean it's going to happen again everything is different and lives in a vacuum.

hopefully it was random. it will be a big monday. i'll see you tomorrow. "squawk box" is next have a great day x1 is here to help.

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good morning election upset in the brazilian race a former army captain trouncing his opponent who would know the ins and outs of this. michelle caruso-cabrera

unshackled, raw. one of his paintings sold for $1.3 million at auction but was shredded by the frame right after the gavel sounded. it's monday, october 8th, 2018 happy canadian thanksgiving. "squawk box" begins right now. ♪ snoitsds ♪ ♪ ♪ 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. as joe mentioned our guest host is cnbc contributor michelle caruso-cabrera she is here to talk about a lot of things that are happening with the markets. >> pleasure to be here. >> we'll jump right in in a minute