smart phone dealing with its own security breach and a number of other issues, including deciding not to compete for the big pentagon cloud contract. but sara, looking at the dow, down about 50 points now pairing some of the earlier losses. >> we have been swinging all around on the dow. what's strong is echnology, that's a bounce from recent sessions nasdaq up a half percent and that's steady. consumer discretionary, technology, communications services, and that includes the faang names in those sectors are higher today is this resumption of the growth trade or is it just to come back after what we have seen value over growth. continues to be a big debate we await president trump, any moment expect to have tape from him live at the white house speaking with u.n. ambassador nikki haley who offered her resignation, set to leave end of the year there's curiosity as to why, what does it mean, what's next

for her. maybe we'll get some questions answered as we go to the white house. >> certainly taking a look at the markets as you mention, we did see the ten year yield hit the highest level in seven years earlier today, it is now negative on the day we'll talk more about markets this hour, quite an all-star lineup of guests >> looks like we're getting president trump at the white house. let's listen >> incoming hurricane, we have another one coming so we have done well north carolina, south carolina, texas, puerto rico, so many nice places and we have another one coming in, big one, bigger than they anticipated a week ago, seven days ago i heard for the first time there was a very small drop of weather looked like it was forming and now it is close to a category three if not already category

three. we are well prepared, fema is ready, we are all ready. spoke with governor scott, spoke to everybody that you have to speak to, and hopefully we'll get lucky, but maybe that won't happen, but we're prepared i wanted to do this because nikki haley, ambassador to the united nations, has been very special to me. she has done an incredible job she's a fantastic person, very importantly, but she also is somebody that gets it. she has been at the united nations from the beginning with us, from the beginning, and worked with us on the campaign it has been a long time, very intense. she told me probably six months ago, she said you know, maybe at the end of the year, at the end of a two-year period, but end of the year i want to take a little time off, i want to take a break. she has been a successful governor of south carolina for 8

years, and then she did this and this is possibly even more intense with what's going on in the world, and very dangerous and a lot of things. but she has done a fantastic job. we have done a fantastic job together and solved a lot of problems, we are in the process of solving a lot of problems at the beginning, north korea was a massive problem, now we are moving along it is moving along nicely. i can speak for secretary of state mike pompeo, he thinks the world of nikki hate to lose you, hopefully you're coming back, maybe in a different capacity, you can have your pick. i want to let you know, so at the end of the year nikki will be leaving and we'll be in constant touch whenever you have ideas, you'll call me, you know all of the players. that's the thing she did best at

the united nations she got to know the players. she got to know china, russia, india. she knows everybody on a first name basis and they like her, except for maybe a couple which is normal. can't all like you but they do. they really like her and more importantly they respect her nikki, i just want to tell you we will miss you we will be speaking all the time, we will miss you nevertheless, you have done a fantastic job and i want to thank you very much. >> thank you well, i want to say first of all, i want to thank the president for just allowing us to come out and talk to you this way. it has been an honor of a lifetime, you know, i said i am such a lucky girl to have been able to leave the state that raised me and serve a country i love so much, it has been a blessing and i want to thank you for that i'm most excited look at the two years, look what happened in two years with the

united states on foreign policy. now the united states is respected. countries may not like what we do, but they respect what we do. they know if we say we're going to do something and we follow through, whether it was the chemical weapons in syria or with nato saying other countries have to pay their share, whether it is the trade deals which has been amazing, they get that the president means business and they follow through with that. but then if you look at just these two years at the u.n., we have cut 1.3 billion in the u.n.'s budget, made it stronger, more efficient south sudan, got an arms embargo, long time coming, three north korean sanctions packages which were the largest in a generation done in a way we could work towards denuclearizing north korea the iran deal, bringing attention to the world that every country needs to understand, you can't overlook all of the bad things they're doing, you have to see them for

the threat that they are i think you look at the anti-israel bias and the strength and courage that the president showed in moving the embassy, showing the rest of the world, we will put our embassy where we want to put our embassy. you know, all of those things made a huge dirchls -- difference in u.s. standing, but i can tell you that the u.s. is strong again and in a way that should make all americans very proud. i do want to say it is not just the president i want to thank, the family in general. the first lady has been nothing but very, very kind to me. i can't say enough good things about jared and ivanka jared is such a hidden genius that no one understands. to redo the nafta deal the way he did what i've done working with him on the middle east peace plan, it is so unbelievably well done. ivanka has been a great friend and they do a lot of things behind the scenes that i wish

more people knew about because we're a better country because they're in this administration i also just have to say certainly thank you to my family, michael, is a saint and my two little ones, i adore them and to team u.s. u.n they sack rifice and have a lotf heart and wanted to make america proud. with that, i'm not leaving until the end of the year. my goal is we make sure everything is in good place for the next ambassador to come in, but it's a great day in the united states and i'm proud to have been part of the team now i don't have anything set where i'm going to go. i think the main thing was i was governor for six years and we dealt with a hurricane, a thousand year flood, a church shooting, a school shooting, it was a lot. then to come in and do two years of russia, iran, north korea, it has been 8 years of intense time, and i am a believer in

term limits. i think you have to be selfless enough to know when you step aside, allow someone else to do the job. thank you, mr. president, it has been an honor of a lifetime. i will say this for all of you that ask about 2020, no, i am not running for 2020 i can promise what i will be doing is campaigning for this one. i look forward to supporting the president in the next election. >> thank you >> you list a long list of accomplishments. why would you want to leave that all behind is it really a personal decision because you have been away from your family so long or something else >> my family is very supportive, so no, there's no personal reasons, i think it is just very important for government officials to understand when it is time to step aside. i have given everything i've got the last 8 years, and i do think that sometimes it is good to rotate in other people who can put that same energy and power into it, so there really is a

lot of people are going to want to say there are a lot of reasons why i am leaving the truth is i want to be sure this administration and the president has the strongest person to fight. it was a blessing to go into the u.n. with body armor every day and defend america and i'll always do that i'll never truly step aside from fighting for our country, but i will tell you that i think it is time. >> mr. president, why make the announcement now >> nikki is staying until end of the year this will be about two years, and i just think, as nikki was speaking, i was thinking when we came into office it was almost inevitable in the minds of many we were going to war with north korea. if you ask president obama, i'm sure he will tell you that was by far his biggest problem when we sat and met right here, but that looked like a real problem. iran looked like a real problem. it was a question of when would they take over the middle east

prior to my coming here. now iran is fighting for their lives. they have riots in all their cities, blowing up their inflation, economy is in tatters, at some point they'll come and want to make a real deal, not the ridiculous deal they made. but what a difference between iran when we first came. the day before we came i like to say. and also if you look at north korea, there was a deal that there was something that was devastating, potentially devastating problem, and now the relationships are good and secretary of state mike pompeo left, spoke to the asian leaders, went there, had some good meeting, had a good meeting with north korea and chairman kim and progress on so many other fronts also.

i think the world as nikki said is respecting the united states much more so than they have in many decades, we are respected again i can tell you, very much respected again. people want to be on our side. even if you look at the votes in the united nations, votes that we would normally get no votes were getting strong votes now. i want to thank nikki. i thought this was an appropriate way of doing it. when you write on a piece of paper that ambassador haley will be leaving and say nice things, people say what's going on, this is the right way to do it. when you think somebody has done a terrific job, i felt this was an appropriate way of doing it and we both liked it i just want to thank the ambassador i want to thank nikki. >> who are you thinking on a successor? >> we have a number of people that would very much like to do it, it is a great position

nikki realizes that. i think she helped make it a better position if you want to know the truth i think it has become maybe a more glamorous position than two years ago, i wonder why, but it is she made it a glamorous position she made it a more important position so we have -- i can almost say many people that want to do it, and they're very good people i'll be talking to nikki about that and to the general about that, to my staff. we have many people that are very, very much interested in doing it >> the lack of announcements -- >> i am not frustrated, talking about north korea, it is amazing the way the media. who are you with >> france. >> it is amazing the way the media says for 80 years, they couldn't do a thing, and what

are we in three months of negotiation, it is ridiculous. as i've said about a thousand times, you have no rockets flying, no missiles flying, no nuclear testing. you have nuclear closings, closing up different areas of north korea. we're getting the remains back it has already started of our great heroes we got our hostages back and i didn't pay $1.8 billion like the previous administration, we paid nothing. i have agreed to meet and i have agreed to spend time, but how long has it been since we left singapore, three months or so. people say -- that's the media saying how can we be negative. he has done well are you disappointed with the speed. i think the speed is amazing, we have no nuclear tests, no rockets, and a good relationship with chairman kim which is very important. i like him, he likes me, the relationship is good

mike pompeo had a good meeting, spoke to him at length yesterday. he will be coming back, he will be back tonight. so i mean just the opposite. i think we made incredible progress beyond incredible. some of the press really covers it accurately and right, but some of the press really doesn't. yes, jim >> do you want to take this opportunity to tell us when your next meeting with kim will be? >> it is happening and we are setting it up now. that's part of the reason mike was going to meet, they're setting up the meeting we'll be announcing that probably different location. singapore was fantastic, but probably will do a different location we'll see. we are talking about three or four different locations timing won't be too far away we made a lot of progress. this meeting, you know, people don't realize the importance of the first meeting.

we said point number one, denuclearization and for some reason the press doesn't pick that up but that was point one they agreed to denuclearization. and they continue to agree and they continue. we haven't removed sanctions as you know people said what have we done, we haven't removed sanctions, we have big sanctions i would love to remove them, but we have to get something for doing it. >> any chance it could be on u.s. soil? >> well, you know, i don't want to embarrass anybody by asking i think eventually we'll have lots of meetings on u.s. soil and on their soil by the way that's a two-way street, on their soil also. i think that the country of north korea will be a successful country. i think it will be incredibly economically successful and i want to make it that way i think it will be good. other countries, other people, entrepreneurs, banks, i will tell you, they're calling, wanting to go there, wanting to

invest at some point when chairman kim makes that decision, i think he is going to unleash something that will be spectacular, really spectacular and i think he knows it i think that's one of the reason we're having successful conversations. i think he wants to get on with it >> when will the successor for ambassador haley -- >> i would say we will name a successor within the next two or three weeks. maybe sooner >> mr. president -- >> i have not. >> what do you know? >> i know nothing. i know what everybody else knows. >> what's your response to hillary clinton saying the swearing in of judge kavanaugh was no political event. >> i guess that's why she lost she doesn't get it she never did. i knew that a long time ago.

hillary never got it that's why she lost. anything else? >> midterms are in four weeks. what's your prediction now for the gop and how's your stamina on the campaign trail. >> i think we're going to do well you saw there was a 5% dropoff, you would say there's something wrong with the president, you would say, but no, i am going to iowa tonight we have a big, big crowd, making a big announcement tonight in iowa we're making a very big announcement i have to say the farmers are so thrilled with the usmca, the new agreement. i don't use nafta because nafta was a disaster for the country nafta blew millions and millions of jobs, thousands and thousands of factories and plants and bad for farmers. look what happened farmers in the last 15 years have gone down now they're going to go up

we opened up mexico and opened up canada. it is great for our farmers. but i am going to iowa tonight and we'll be talking a little ethanol tonight. got some good things going speaking of that, i will say if you look at industries, the steel industry is back like nothing i've ever seen before, in a period of six months since we started doing what i'm doing, the steel industry has literally revived. u.s. steel is opening up 8 plants new corp is opening, everybody, the steel industry in the country is really, really hot. it has been great. but i'll be going to iowa tonight. >> secretary pompeo -- >> we have a good relationship with china, but they took out 500 billion out of our country many years each year we can't let that happen this should have been talked about by people in this chair

for many years, look, for years and years they were taking out 200, 300, 400, even $500 billion a year we helped rebuild china. if we don't do that, china is not where they are now and that's fine with me, but we're not doing it any longer. >> are you going to go forward with that? >> 100%, if they retaliate what does that mean. they already retaliated, they have taken $500 billion. that's the ultimate retaliation. look, china wants to make a deal and i say they're not ready yet. i say they're not ready yet. we have cancelled a couple of meetings, i say they're not ready to make a deal we can't have a one way street, it has to be a two-way street. it has been a one way street for 25 years we have to make it a two-way street we have to benefit also.

thank you. any other questions? so i just want to finish this is really the pure reason for this is nikki, you have been fantastic, you're my friend. on behalf of the country, i want to thank you for a great job thank you, nikki thank you very much, everybody thank you. >> a very warm and friendly good-bye from president trump, announcing the resignation of his ambassador to the united nations, nikki haley, largely coming as a surprise u.n. ambassador nikki haley says she will stay through end of the year president trump says he will announce her replacement in two to three weeks, says there are a lot of people, highly qualified people that want the job, both praise from nikki haley towards president trump and the administration, high praise for jared kushner and for his daughter, ivanka trump, for the

first lady, and high praise from president trump for nikki haley. eamon javers, you said not all resignations have looked like this, and the president took time to take some questions about china trade and other important issues as well. >> that's right, sara, you can take from that this is a president comfortable in the timing the white house scrambling to put this together, no indication in terms of gossip or rumors swirling that this was coming, but clearly the president knew it was coming. he said she told him as much as six months ago she was getting ready to leave also we saw nikki haley there douse something of a speculative boom that occurred in washington in the past year or so, she might run for president herself as early as 2020, possibly a primary challenge to president trump himself. nikki haley saying no, she is not running for president in 2020, and she will be campaigning for president trump. so extinguishing that bit of

speculation that she would somehow become a never trumper late in her career nikki haley praising his leadership, praising his family, and not offering any specific reason for her departure here, and the timing of it other than she believes it is time, and believes in term limits. ultimately we don't have a reason for the departure, other than nikki haley herself felt it was time to go, guys >> eamon javers, stay with us as we continue to cover this. we're going to bring in michelle car use oh cabrera who is with us on the phone. president trump also juxtaposing in terms of rhetoric iran versus north korea and developments with both those countries. >> absolutely. he puts them in the same category as has nikki haley recently. what you saw today was her incredible skill as diplomat and

as politician. she supported marco rubio in the primaries and ended up working for president trump, something you might not have expected because he can be vindictive against people that don't support him. she had china and russia to back sanctions against north korea. something we long struggled to do incredibly important move. as for what she does next, obviously i take her at her word when she says she doesn't want to run a primary challenge against trump, considering his popularity with republicans now wouldn't be a good idea. there are people say, conservative circles talked about her as a potential presidential candidate what if she ended up being on the vice president spot for the second time around, minority woman that took down the confederate flag in her state might be an interesting juxtaposition against the president. >> she's also only 46 years old,

michelle and said she believes in term limits she was governor of south carolina for six years and position of u.n. ambassador for only two >> so i would say one, it is common to see people leave after the two year mark. this presidency, people leave sooner than that, she held on a long time. two years is often the mark. and it is an incredibly difficult and time consuming position met with her a couple times in off the record settings, met with women journalists, and it is a grueling schedule, considering what's on the foreign policy plate for the country and the president with north korea and iran >> and eamon, it is being looked at that this is now ambassador haley will be the 15th departure under the trump administration of a cabinet member or adviser in terms of turnover, numbers

are continuing to rack up. >> you can put this in a separate category though you have seen a lot of hostile departures from the white house, people leaving fuming, fired by tweet, all of the chaos we have seen in the administration this one i think to michelle's point fits a natural ebb and flow in terms of timing. traditionally wait until midterms for this. it feels like about the time that other officials served in positions like this. now the question is what does the president want in terms of a successor. saw him say he was going to pick a successor in two or three weeks. will it be a high profile political figure or diplomatic insider to take that role and leave high profile politics to mike pompeo and john bolton, national security adviser at the white house. there's a lot of ways the

president can go all of that will impact future in terms of china and north korea and foreign policy issues before the administration. >> we want to bring in tom lee, here at post 9 for market reaction what do you think in a week busy with headlines >> it is another headline. i think the market has liked what trump has done with trade and foreign policy, so i think she definitely leaves on a good note, but at the moment markets are more focused on what's happening with interest rates. >> and we did get more commentary from president trump about china, says he doesn't think they're ready to make a deal, needs to be a two-way street some of these comments from him and other members of the administration in recent weeks think we're in for a long haul in terms of trade tension? >> yeah. i think there's a larger strategic issue that represents the growing sort of economic power of china and the building

fiber everywhere and silk road, so i think creating fair ground for the u.s. is really important, and i think markets like what trump has done with regard to china. >> i want to ask michelle what you think of where we stand with china, given the president's comments they're not ready now to make a deal and when u.n. ambassador nikki haley was going through accomplishments at the yooiu.n. there are significant achievements i wonder if you see china as one of the biggest challenges for her successor? >> yes, for sure because the china trade situation is directly linked to what the president wants to do on north korea. he said that explicitly. he wants china's help when it comes to north korea and he needs china's help when it comes to enforcing sanctions because they share a border. so much of the illegal things

that happen happen on the border of the two countries as hard as he wants to go on china, he always considers what they can do when it comes to north korea. as for where the administration stands now, what i see is them trying to line up all of the other countries in the world in the western hemisphere to be the united front against china, the usmca as he likes to call it, perhaps getting the europeans on board to come along to have a solid front against china. >> and tom, just to give you a last word as we wrap up the discussion, you mentioned rising interest rates, obviously a big focus of markets the last couple of days. do we go higher from here? what's your take on markets and where investors should be positioned >> i think interest rates are rising in response to very good conditions in the u.s. and i think the fact is we're still growing, so i think inflation and interest rates are rising. so i think the markets initially reacted by deleveraging, position squaring. going forward, you want to be

overweight value stocks, they're more correlated to higher interest rates, faster economic growth it has been almost 15 years of growth outperformance. i think it is reversing. >> thank you for joining us. when we come back, adidas ceo joins us what he is saying about the north american business, trade look at the dow, back in positive territory, up nine points technology strong with the nasdaq up and s&p 500 doing better as yields stabilize, ten aroving around a seven year high. we'll be right back. this isn't just any moving day.

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time.

show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. good morning, i am sue herera here's your cnbc news update at this hour. as we have been reporting, u.n. ambassador nikki haley announcing a short while ago she's resigning at year's end. president trump meeting with her at the white house this morning. haley was appointed to the u.n. post november of 2016, but before that she was governor of south carolina the first woman to hold that post she was reelected in 2014. hurricane michael is now a category two storm with max sustained winds of 100 miles per hour officials say there's a good chance michael will be upgraded to a category three hurricane in

the next 12 to 24 hours as it heads to the florida panhandle >> the time to evacuate and heed local warnings is now, as ken alluded to, hurricane michael will be a devastating storm. florida hasn't seen a storm of this magnitude in quite some time. japanese billionaire, future space traveler maezawa having a news conference in tokyo would like others to join him on the trip around the moon, though he has yet to extend specific invitations. he says he is excited to see the earth with his own eyes. we'll be watching. that's the news at this hour back downtown to you, morgan. >> he wants to bring artists with him, seeing it as the biggest, greatest art installment. sue herera, thank you very much. >> i think that would be great. >> would be very cool. let's get to jon fortt in new york city live at the made by google event. jon? >> morgan, we have the products

we expected and more detail on them google did bring up security and importance of that they talked about tightened security brand, which involves a security chip on board the device they're talking about that through the day. interestingly not just the pixel 3, but the slate and google home hub which is what they're talking about now, that's a device that's supposed to tie together the internet of things in the home, including net, which is a start up that they bought the it hadn't been integrated into the google story tightly they're trying to do it now. on the home hub with a screen as we have seen with facebook device that they announced and also amazon's echo show, this device not made for video chat doesn't have a camera on it, which appears to be a conscious decision on google's part. a lot of people, reviewers,

people in the room commenting online maybe i will put it in my bedroom now that i know it doesn't have a camera, so it will be used for interacting directly with the device, tout it as potential schedule helper, you say gofod morning, tells yo what you have coming up, a kitchen device, recipes, and youtube. one reason google is perfect positioned to have a video device without a camera, they own youtube, have been known to cut off access to the likes of amazon to youtube, building it into other company's platforms and other devices. they have it tightly integrated and voice controlled in this device overall, it is about the ecosystem than trying to compete on hardware, sales and profits with the likes of apple and s g samsung. they dominated mobile when it comes to raw sales and profits you have seen google, amazon, now increasingly facebook

starting to step into hardware for the purpose of promoting their ecosystem, their ads, data they collect that ties them closely to other products. we'll see that play out as we get more announcements through the day, guys. >> jon, yesterday we had facebook launch their own smart speaker. seems that was met with lukewarm reception because of privacy and data breach issues that have taken place. we have this google breach reported by "the wall street journal" yesterday is privacy a bigger piece of the conversation today how are reporters and the company itself framing this in light of the recent events >> it is a bigger piece. i think we have to be careful as you talk about the google data announcement from yesterday, not exactly a breach they didn't say any data had been compromised, it was the way it was set up, there was potential that data could have been accessed. google is seeking to clarify

here that the way they architected the devices, they're going to be more secure going forward. but this is a brand new category aren't talking anything on the order of smart phones in terms of its size. profitability of this category in and of itself, hardware devices is unclear you have multi billion dollar companies as an understatement, companies in the mega cap, hundreds of millions of dollars when you look at google, amazon, apple, all companies close to a trillion dollars in market cap trying to use devices to build out their ecosystem. it is not clear how quickly consumers overall will adopt these. you talk about the echo as a success. really as a business itself, not on the scale of amazon cloud or amazon retail. we'll see where they continue where they take it and push it, whether it is a device category on it self that generates significant revenue to add to a

company like this's bottom line. >> jon, great reporting. thank you for bringing us that jon fortt in new york city this is on the heels of google saying they're not pursuing a big pentagon contract, known as the jedi contract, potentially $10 billion contract, amazon is seen as the company that could be the winner in this. google was expected to -- >> why isn't it going for it >> it basically says here that we couldn't be assured it would align with ai principles and determined, this is part of the statement, that there were portions of contract out of the scope of our current government certifications it comes as google has seen some backlash and responded to that in terms of some of the projects it has had its workers work on around the military, and we have seen some employees say they don't want to develop tech for military use and now they're pulling out of this competition i have a feeling it is something we talk about more with this

company as well. >> another layer in the government and google relationship web that we are following. when we return, the ceo of adidas, kasper rorsted is here for an intvi aerhe eak.erewft t equity trades are just $4.95.. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. when you're looking for answers, it's good to have help. because the right information, at the right time, may make all the difference. at humana, we know that's especially true when you're looking for a medicare supplement insurance plan. that's why we're offering seven things every medicare supplement should have. it's yours free just for calling the number on your screen. and when you call, a knowledgeable licensed agent-producer can answer any questions you have and help you choose the plan that's right for you. the call is free and

there's no obligation. you see, medicare covers only about 80 percent of your part b medical expenses, the rest is up to you. that's why so many people purchase medicare supplement insurance plans, like those offered by humana. they're designed to help you save money and pay some of the costs medicare doesn't. depending on the medicare supplement plan you select, you could have no deductibles or co-payments for doctor visits, hospital stays, emergency care and more. you can keep the doctors you have now, ones you know and trust, with no referrals needed. plus you can get medical care anywhere in the country, even when you're travelling. with humana, you get a competitive monthly premium and personalized service from a healthcare partner working to make healthcare simpler and easier for you. you can choose from a wide range of standardized plans. each one is designed to work seamlessly with medicare and help save you money. so how do you find the plan that's right for you, one that fits your needs and your budget? call humana now at the

number on your screen for this free guide. it's just one of the ways that humana is making healthcare simpler. and when you call, a knowledgeable licensed agent-producer can answer any questions you have and help you choose the plan that's right for you. the call is free and there's no obligation. you know medicare won't cover all your medical costs, so call now and see why a medicare supplement plan from a company like humana, just might be the answer. i am scott walker. the new worry for investors, is the economy slowing as rates are

rising and one big name retailer got its price target raised in the call of the day. is there an alpha apocalypse under way? leslie picker following the money, all at noon about 20 away. >> see you then, scott, thank you. shares of adidas up a little more than 20% this year, outperformi outperforming. kasper rorsted, welcome. >> great to be here. >> nice to see you now that you're here in the u.s., start there as far as what you see. north america is very competitive. the story the last year ago is you are taking share is that still happening? >> first six months grew more than 20% in the u.s., can't speak for third quarter, continue to see strong third year in a row, no doubt we're taking share in america. >> nike has been resurgent and outperformed yours in the last 12 months.

where are you feeling it most? >> we have still outgrown nike, but no doubt nike is coming back, seeing it in the u.s. predominantly. >> under armor has been resurgent after losing share. >> but they have single digits growth and we are growing in every market in the world now. >> what about europe, that's a place where you have seen growth i mentioned your stock price against the broader dax. >> 5% going inflection for the remainder of the year. no doubt also related to the overall atmosphere of upcoming brexit. >> i was going to ask you about that what if they can't make adeal, how does that impact adidas? >> i think brexit is probably the most unwise economic position europe has taken in the last 20 years with the uk. there's no doubt that the consumer will be impacted and economy will be impacted in the

uk, in europe for all businesses, including ours we are hitting up separate warehousing, but it is not a good financial position made by brussels and london. >> why do you say brussels, it wasn't brussels' decision. >> help making the deal more smooth or encourage uk to revote on it. i don't know any ceo in europe believes it is a good deal. >> what are you expecting as far as a deal, are you expecting them to have some sort of trade deal to make life easier >> very little details no doubt you will have customs on both sides and it will have impact on trading. europe is a big exporter to the yoo uk and will suffer with what's coming, same for the uk with exports to europe. it is not good for business in europe. >> are you seeing change in consumer behavior already? >> no, but seeing change in consumer pricing because the uk pound is deteriorating since the

brexit vote. >> i want to ask about china, whether you have seen a slow down in business do you see that with the chinese consumer >> first six months, 25% in china, growth of 30% last year china continues to be hot for us we are optimistic for the future in china looking at the key markets, that picture we still see remaining for the future maybe not the same growth rates, but still strong for all three markets. >> have you seen impact from tariffs back and forth between the u.s. and china >> no. most of the manufacturing we have in china is for china even if tariffs were to come, impacting sporting goods, it wouldn't impact adidas. >> so factories. >> are for china. >> where is the biggest production, vietnam? >> vietnam and indonesia for the rest of the world and in china for china. >> are you shifting more >> we started shifting 8 years

ago because of trading conditions and also pricing in the marketplace. >> so if president trump goes through with the threatened next round of tariffs, do you think we will see higher sneaker prices >> i think in the short term, not in medium term, medium within a year, i don't think it has huge impact. if only china. if it is all of asia, it will. only china hardly an impact. >> what about for broader retail, apparel, footwear business how much will it be effected >> i can't speak for the company, but there's no doubt there are certain companies have a large manufacturing volume out of china and they will be impacted. >> want to ask you what's working. you're talking double digit growth in various parts of the world. for a long time it was retro sneakers making a come back, stan smiths and originals. is that still what's driving growth >> we see pump inspired footwear, 3d printed shoes and

one of the hottest trends is sustainability shoe made of ocean plastic. it is made out of 11 plastic bottles. it is a huge hit with consumers. >> consumers are looking for the sustainability push. >> and bring from the shoe into the apparel and swimwear, that's a trend we will continue to see moving forward. >> glad you brought up kanye he is going to have lunch with president trump. is that good or bad for business >> when you work with a creator like kanye west, you don't get mainstream we have been happy with our relationship with kanye west meeting him wednesday night for dinner he is a fantastic ambassador for the company and still will be. >> you're having dinner with him before his lunch with trump. >> i didn't know he was having lunch with trump i have been very happy with our relationship. >> you mention it was doing well

some in the sneaker world wonder whether it peaked, whether we have seen the hottest part of these. they're more widely available. >> only speaking about the 350 model. we have a wide set of new products next year what we bring to the market with kanye west will be hot on the street. >> is this more democratic yeezy? >> not at all. we will bring volume into it looking for innovation we are bringing in, not bringing it in volumes. >> lot of people are chattering about the basketball shoe that kanye west has been teasing. what can you tell us about that? >> pretty much what you are teasing. we think we have a hot shoe coming out, according to what's on social media, but you have to wait and see. >> are nonathletes still driving the biggest buzz in revenue? >> kanye is driving a lot of

buzz, and we have the biggest sporting event, world championship in russia, sold more than 8 million jerseys, so sport is still a huge part of what we do, two-thirds of our business. >> what did you think of the colin kaepernick ad. >> i think uniting people is important. it was a good move they made we have a different view we think it was a good view. the more you unite through sport, better it is. >> but it wasn't, a lot of people were upset about it, it was controversial. is that something you would have done >> i can't say we would have done it, it is important to have a point of view, we have a point of view on many things, and it is good to have a point of view. >> if you look forward, sneaker wars, the story in the stoemtcks market is a lot of them are strong lululemon is one example

how should we think about where we are in the cycle of at leisure. >> i don't think it peaked the trend towards more comfortable wear, will obesity no doubt sporting goods will outgrow the overall economy. that's our perception. >> always good to check in with you especially in person kasper rorsted, thank you very much we'll take something afterwards on arsenal on "closing bell. he'll kill me if i don't ask you. for now back to you, morgan. >> great interview taking a look at the markets as we head to break, the dow dipping back into negative territory down about three or four points right now. the s&p hanging on to gains up about four points. the nasdaq the big outperformer today up half a percent led higher by chte stocks. we have more "squawk alley."

welcome back let's get over to the cme and rick santelli for "the santelli exchange." >> reporter: thank you higher rates are getting to be kind of the antagonist of the marketplace, kind of the joe walsh of the economy higher rates are the bad boy but, really, they're not what is going on with rates is not only something that is unexpected, we should welcome it

the notion of manipulating and managing rates for the better part of a decade and then thinking that higher rates is anything but welcome is just crazy. now, granted, you need the right environment to have the rates move up without doing damage and my guess is that's why central bankers took so long to get to where we're at today to be quite frank, so far so good now the u.s. fed is much ahead and their xhcumulative rates afr resting above 16 trillion for a while. borrowing costs going up is not the bad guy. the bad guy is the notion of all the behavior that was created in all the corporate and capital structures created during the low interest rate period and that adjustment's got to occur

whether it's servicing debt, whether it's just the basic decision that's now going to have to go on between borrowing costs on one hand and higher raets rates of return on the other from the big offices, what's the optimal capital structure going to be now? are we going to issue more debt or equities? is the age of buybacks going to slowly wind down these are all very important things to understand them you have to really think packing a snowball in chicago in february globally we are tightly packed and the deleveraging process is never smooth it goes in fits and starts and the very bottom of the food chain is interest rates and it isn't just what central banks control. that's going up in the u.s., but market rates are going up no matter where you look, italy, france, the uk, japan.

ultimately how will investors deal with it i can't tell you that. what i can tell you is that the period of less than a week of turbulence and equity seems to be running its course and interest rates, though elevated, are well behaved if this process can continue i think investors can find a safe place between deleveraging and market avoidance morgan, back to you? >> rick, always great to get your perspective >> the dow is up about 30 points ♪

♪ ♪ ♪ ♪ the difference between possible and impossible? it's a person who believes they can, surrounded and supported by others - by us - who believe it, too u.s. bank - the power of possible.

whooo! want to get a move on your next vacation? tripadvisor now lets you book over a hundred thousand tours, attractions, and experiences in destinations around the world! like new orleans! from cooking classes, to airboat tours, tripadvisor makes it easy to find and book amazing things to do. and you can cancel most bookings up to 24 hours in advance for a full refund. so your whole trip... will be smooth sailing! read reviews check hotel prices book things to do tripadvisor

the dow is higher, up about 23 points, right now taking a look at space travel, weeks not months richard branson saying virgin galactic will be ready for space travel soon. take a listen. >> we should be in space within weeks, not months.

and then we'll be in space with myself in months, not years. and then we'll be in space with people not too long after that >> branson's company is going to be going to the edge of space. they have more than 700 passengers signed up, $250,000 a ticket meantime market's in focus over to scott. i'm scott wapner stocks have been falling as rates have been rising and now an even bigger concern may be looming. is the economy slowing at exactly the wrong time for your money? it is 12:00, noon, and this is "the halftime report." rising rates, concern for the bull market. pimco's chief investment officer mark keisel is with us to tell us where the rates go now. plus an upgrade from dow underperformer and a major storm at america's oil infrastructure. "the halftime report" starts now.