it is 5:00 a.m a global selloff topping your five at 5:00 stock futures are down big china, japan, europe tumbling. president trump pitching a new 10% tax cut for the middle class. details on that. the countdown is now on. just two weeks until the midterm elections. which each possible outcome means for your money. treasury secretary mnuchin meeting saudi's crown prince and more high profile business leaders pull out of that business conference in riyadh. today is the day the jaw dropping 1$1.6 billion

mega millions drawing is tonight. it's happening on this tuesday, october 23rd "worldwide exchange" begins right now. ♪ good morning welcome from wherever in the world you may be watching. i'm brian sullivan pour yourself another cup of coffee it's already shaping up to be a big day. one that could be difficult for your money and investments futures are down the most that we've seen them in a long time dow futures down 279 points. pointing to a nearly 300-point drop at the open keep in mind the dow is already down more than 4% this month we had a chinese official telling american investors at a conference overnight that his country does not fear a trade war with the united states the selling is not limited to the united states and our futures. we are seeing buyers raise cash around the globe europe is sharply lower in early

trade. the dax down 2%. france down 1.5% it's a similar story in asia and as always we have full team cnbc coverage of this selloff. julianna tatelbaum is in europe, let's begin with nancy hungerford and the asia trade. >> hi, brian that's right a sharp selloff across the region very different story than what we brought you yesterday there was so much hope around that china-led rebound yesterday, that sharp two-session rally. that's starting to fade. look at what happened in the mainland markets the shenzhen off 2%. the shanghai composite off more than 2%. that's not all look at the hong kong market it was lower by 3% so significant moves i should point out for the south korean market, heavy selling this market ended at a 19-month low. it wasn't just about south korea and china today. a lot of attention around the japanese market. the nikkei 225 off 2.7%.

this is a two-month low. i will say as part of the shift in risk appetite we did see the yen catch a bid moving stronger against the dollar in the neighborhood of 0.5% yen strength doesn't tend to spell good news for the nikkei 225, especially the big exporters there. we did get disappointing news on the earnings front as well for anyone who thought that rally out of china meant more legs for moves to the upside in asia, think again today. >> the only certainty is we're certain that volatility is back. nancy, thank you very much. let's turn to the selloff and the early trade in europe. julianna tatelbaum is live in london with more >> good morning. that rough session in asia is having an impact on european markets, compounding earnings from a variety of european companies that sent investors on a downbeat tone. the ftse 100 down about 1% there. we have investors continuing to focus on brexit and any

commentary there from negotiators on reaching a deal the dax is the real underperformer german stocks down 2.3%. the real laggard here, stock-wise, bayer. bayer down 8% on the back of the u.s. decision yesterday to uphold an earlier jury ruling on linking their key herbicide that is in the weed killer roundup to cancer that's dragging the german index down the ftse mib down 1.2% investors focusing on developments around the italian budget plenty for investors to worry about in europe. back to you. >> thank you very much let's brink g it back to the united states. futures are pointing to a big drop at the open we're down nearly 300 points the s&p 500 on pace for its worst month since 2015 joining us is the regional chief investment officer from wells

fargo private bank it's a good morning to have you on what's going on? why have we seen this major return to volatility for the stock markets? >> thanks for having me on it's great to be here. frankly i guess i know how to pick the day to come back around the world. you took it around the horn. volatility is not just what's happening in the united states, we're seeing it overseas and it is starting in asia. seeing that volatility pick up the chinese mainland shares are in a bear market depending on which exchange you look at you could say it's the trade concerns, the slowing economic growth, which you reported on starting last week but at the end of the day also it's the economic growth over there pulling back, but also our view is we're still constructive over the long view of the asian markets and in china as well the growth there is still well above u.s. averages. well above global averages even though it decelerates, it

should be approving fair value >> the stock market is supposed to be some kind of a crystal ball they call it a discounting mechanism. where it predicts by moving what it thinks is going to happen collectively is the stock market now telling us that we believe a global economic slowdown is going to happen this is the peak global economy? >> i think recently the consensus estimates reported that global growth was back to 3.6% that's still pretty good. >> still not bad if you kind of look onshore also, we believe that the run rates that we've seen with u.s. gdp running at 3.5%, 4% territory, while it might not sustain at those levels, it's well above the 1.5%, 2% annualized rates we've seen prior to most of this expansion. overseas, the celebration that we're seeing out of china, which is out of the microscope, you're

going at a 6% range, but you're looking again at a multiple of u.s. and developed markets we continue to believe going into 2019 and years ahead that growth will be driven by the emerging markets china will be a factor the u.s. will also hold its own. >> i wonder how much of this and what do you think is the percentage of this market move that is temporary because it's reacting to the trade rhetoric, maybe even the news and sort of the growing tension with saudi arabia over khashoggi, the shorter-term things that are out there rather than a multi corner or multi-year slowdown cycle do you believe that this volatility -- remember, companies are in the period right now where they can't buy back stock we always had that corporate buyback put under the market we don't have that for a couple of weeks we're in the dry period. how much of this move is temporary or transitory? >> would be that support is being removed.

we're long-term investors at wells. >> you want to buy low >> we do like buying low it's a good discipline frankly on these pullbacks, especially if we believe they're transient as we believe many developments are, they are great opportunities to put money back to work. great opportunities to rebalance the portfolios you mentioned khashoggi. we look at saudi arabia and the impact it may be having on oil prices trying to predict oil prices is like trying to predict the weather. saudi arabia on an economic contribution is less than 1% globally >> it does punch above its weight where you have this brewing and growing conflict in yemen. the middle east seems like it's starting to heat back up we have the sanctions on iran going back into place. at the same time now we have a trade fight or a trade war with china. i can imagine some clients at wells fargo calling you up and saying i made a lot of money things are getting too hot

i would like to raise cash >> we are seeing motivation for a lot of investors as they get more uncertain that's the key word, uncertainty breeds fear. fear starts to, i guess -- >> should we be afraid or cautiously optimistic? what's the proper investing mood >> the environment if we think about where we are, we're late in the cycle if one thing is clear, we're late in the cycle. this is the longest bull market run on record. soon to be the longest economic expansion onrecord we are seeing a natural normalization, if you will, to volatility while we have been seeing these episodic spikes in volatility off the headlines, if you look deep down into the fundamentals. the longer term fundamental trends are intact and we believe these are transient opportunities to put them back to work. >> markets -- well, vix is up,

futures down big appreciate your opinion. turkey's president, recep tayyip erdogan is about to speak following the death of jamal khashoggi. we'll monitor that speech when it begins we'll bring you more an perhaps live coverage to u.s. policy president trump surprising some in congress saying more tax cuts are coming here's what he told a group of reporters at the white house late yesterday >> we're putting in a resolution sometime in the next week or week and a half two weeks. >> a resolution for what >> we're giving a middle income tax reduction of about 10% we're doing it now for middle income people. this is not for business that's on top of the tax decrease we have already given

>> are you signing an executive order to thar? order to do that no, no, we're going through congress >> the president says the tax cuts will not happen until after the midterm elections. hard to hear him over that helicopter noise let's get a check on the other top money stories. frank holland joins us with more on those good morning a judge in california upheld a jury verdict that found a weed killer made by monsantos called a grounds keeper to get cancer but the judge reduced the damages from 2$287 million down to $78 million. in july, jurors found monsantos purposely ignored warnings and evidence that its roundup product could cause cancer shares of bayer down 8% in germany. uber's top dealmaker has resigned weeks after allegations of sexual misconduct against him. he oversaw several transactions including the sale of uber's

business in southeast asia he was disciplined last year also after a pattern of making suggestive comments about co-workers walmart is expanding holiday perks for online shoppers. starting next month millions of products sold by third parties will be eligible for free two-day shipping, and items bought from a third party can be returned to a walmart store. breaking news in turkey. erdogrecep tayyip erdogan is spg now. let's listen in and see if he mentions or references the khashoggi situation. >> translator: which was restored, which was rebuilt, if you will, brought back to its glory days in a sense. so, wherever we go in the balkans and in eastern europe, wherever we go in this part of the world we are always met with

heartfelt emotions and greetings of the people living there as we have always said our physical boundaries are one thing, but the boundaries of our heart or the influence area of our hearts are something else. with our friends, with our brothers and sisters, with our kinsmen within the latter of these boundaries, our relations with them, we're bringing them up to their desired level after many centuries, after a long time when we take a step, others take three, five steps towards us, so they harbor the same positive feelings towards us. i hope and believe this contact will get closer and closer, and with our friends we will continue to build a safe and prosperous future together on friday i was a small town, on

sunday in istanbul, i attended a number of different events i came together with citizens. we had fruitful exchanges. and in ismit we did the inaugural ceremony for the star refinery, a critical piece of investment for our country the other oil state company, socar invested 6.3 billion u.s. dollars in the star refinery, now it's up and functioning in our country. now when you look at it as a whole this brings azerbaijany investment in turkey to 10 billion u.s. dollars we work together at the opening ceremony and i do hope and wish that this investment will be beneficial for turkey and

azerbaijan of course this is one of the biggest -- >> turkish president recep tayyip erdogan talking to parliament and talking about business matters if the president of turkey begins to mention the jamal khashoggi situation, if he references what he knows or has learned about the saudi arabians and their involvement in khashoggi's disappearance, we will of course bring that to you live and bring you headlines as well we are just getting started here on what is a busy tuesday up next, we go live to saudi arabia as the highest profile businessman yet has pulled out of their investment conference. and stock futures are down nearly 300 points right now. schwab's jeff kleintop will be here to help you navigate that growing uncertainty. it's a busy morning. we're back after this. place, the xfinity xfi gateway.

and it's strengthened by xfi pods, which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. welcome back we're continuing to monitor turkish president erdogan's speech before that country's parliament we are also following the latest developments out of saudi arabia where their major investment conference kicks off in riyadh, but perhaps the highest profile businessman there has pulled out. hadley gamble has more >> good morning, brian as you mentioned the ceo of softbank, masa son, we know that

the "wall street journal" is reporting that he won't be speaking as he was supposed to do at this davos in the desert we don't know whether he will attend, but he is the highest profile international ceo to really pull back here of late. frankly what we've seen over the last several hours, most of the attendees are coming from the gcc arab countries, from the northeast and russia the asian countries as well weighing in. it's an interesting mix of folks on the ground in riyadh. this has not stopped the public investment fund from coming out and announcing as much as $50 billion worth of deals to go ahead with the likes of baker hughes and total they're in oil, infrastructure, energy it will be interesting over the next few moments as we continue to hear more from president erdogan who will be weighing in on what happened, according to him, to jamal khashoggi. we heard already today a couple of the ministers coming out. we saw the foreign minister

speaking to prets on tss sayinge again that the saudi government is committed to finding the clues and the answers to this investigation. we also heard from saudi arabia's oil minister as well weighing in and saying nothing justifies the death of mr. ed ar much. michael greenwald joins us now, he's a fellow at harvard kennedy school's belfour center, a man who lived and worked in the middle east for some time. you know the middle east well. you know saudis well you know the likely response well what is the likely ultimate response from the u.s. government around the khashoggi situation? >> when i was at treasury we would take a scalpel-like approach at sanctions. so at treasury right now we're looking at a targeted set of sanctions to hit a certain amount of individuals in the khashoggi case it will allow us to ratchet up and ratchet down >> sit tight here.

p president erdogan is referencing khashoggi. sit in we'll get your response and reaction let's listen to the turkish president. >> translator: this team of people from 9:50 to 11:00 a.m., they come in different groups to the consulate and meet there first thing they do is to remove the camera system of the consulate and in the meantime jamal khashoggi was telephoned at 11:50 to confirm his appointment on that day. the same day, early hours, khashoggi comes from london to istanbul and enters on foot into the consulate building at 13:08. the fiancee who was with him at that point in time and after that point in time no

information was obtained from him, no news of him came out at 17:15 that day in the evening hours, the fiancee, mr. khashoggi's fiancee resorts to the official authorities of our country telling authorities that mr. khashoggi was being held at the consular building at his will and that something bad might have happened to him upon which the relevant unit of the director general of the turkish national police in istanbul started an investigation. they have a look at the security cameras, examine the footage and it becomes certain at that point in time that mr. khashoggi indeed did not leave the consular building. of course as per the vienna convention, they have diplomatic immunity, but now that's also being discussed. a statement was made about this point. this vienna convention will need

to be discussed and revised. due to diplomatic immunity, initially no concrete step was taken, vis-a-vis the building and the officials of the consulate. so the turkish national police and our intelligence started looking into the matter in depth and the office of istanbul chief prosecutor appoints an acting prosecutor and they initiate the investigation as more in-depth information is collected, things start getting interested first of all, starting from the day prior to the day of the murder, different planes were taken bay toty a total of 15 sa safety intelligence and forensic experts who came to our country. six of this team left on october 2nd at 18:20 seven of them leave on the same day at 22:50 taking private

planes also another person who was given the impression or the look of mr. jamal khashoggi with his outfit, with his glasses, and beard, this individual and the individual accompanying him also took a scheduled flight after midnight to riyadh on the day of the incident the personnel working at the consulate and the residents were gathered together and the explanation given to them was that there was an inspection going on, they were let go that day. they were asked to leave the administration of saudi arabia first rejected the claims on october 4th that khashoggi was killed the chief consulate officer invited on october 6th a correspondent of reuters inside the consulate building he opens and closes doors of

cupboards, the utility panes, different areas of the consular office, of course that was done in a manner far from being serious. in the meantime our national police, our intelligence services, our prosecution services they continued to concentrate on their investigations to obtain information and documentation. our ministry of foreign affairs also was in constant communication with the counterpart to discuss the issue and share information. on october 11th there was a group of special representatives who came to our country from saudi arabia and different contacts were made with them of course after the matter being kept on the agenda by our community, but our press community, by the global media focusing on this issue, the consular services allowed the consulate premises to be

searched they are friends, we have to ask certain questions and find answers to these questions this incident happened in istanbul we have, as a result, responsibility so we as people of responsibility we have the right to ask these questions the situation starts to clarify, and other countries take action. at every opportunity we made it clear that we will not remain silent in the face of this murder, and that werequired by r conscious and by the law on top of that we had to wait for the end of the examinations and the investigations so that we would not false incriminate anyone his excellency, the king of saudi arabia, the custodian of the two holy mosques, we had a phone conversation with him for

the first time on the 14th of october, and i explained to him the present situation in light of the information we had at that point in time and during this telephone conversation i actually explained to him the talks we had with the special delegation of representatives he previously sent and i informed him of our joint decision to have a joint investigative group. we had an agreement on the fact that this would be the path to follow upon the instructions of the king, teams from the prosecution service and from our turkish national police went into the consular premises and did some examination. before that it was not allowed by the consular officials. when that first team of representatives came and talked to me, i explained certain things to this team of

representatives as to how insufficient and incompetent the consul was, and i conveyed the same message to his excellency the king as well after that conversation the following day the down sul gener consul general was removed from his position he had to go back to his country. he left. there was another round of examinations on the 18th of october. on the 19th of october, 17 days after the murder, the saudi administration officially admitted that jamal khashoggi was murdered inside the consular premises, insued tide the consur building in the statement from the administration it was mentioned that khashoggi died during a brawl that erupted in the building on the same day, in later hours of the day, i had another phone

conversation with the king, bin salman, he told me after the murder 18 people who were implicated were arrested that was the information he provided to me and the individuals on the list that were provided to our country, while we found out that they were the same names as determined by our security and national intelligence services so this team of 15 people plus three others these three others were already consular officials so, of course this development is important in the sense that the murder was officially acknowledged and accepted. on the 21st of october i had a comprehensive phone conversation with president trump of the united states of america we had an agreement that the incident needs to be clarified in all of its aspects.

of course as the government of turkey, as the state of turkey, we have handled this whole process in compliance with the seriousness of these state matters and affairs, international law and legislation of our country, despite this being the case of course certain media outlets conducted a campaign in order to blame our country and implicate our country and to shift focus, shift the attention of the people we know full well who was behind this campaign and what is their purpose. these attempts to assassinate the nature of seriousness that our country has shown has not kept us from fully investigating what happened. before everything this murder, y was indeed committed in the saudi consular building which is

considered as saudi soil but one must not forget that that area is within the boundaries of the republic of turkey also the vienna convention and other rules of international law do not allow the investigation of such a vicious murder to be prevented by resorting to the shield of diplomatic immunity. of course we will investigate this murder which was committed inside our country in all of its aspects. we will look into it we will do whatever is necessary. on the other hand, jamal khashoggi was a saudi national, but on top of that he was a world renowned journalist, and this, of course, gives us an international responsibility on top of her own sovereignty rights, turkey will be

persistent in the follow up of this incident on behalf of the international community and as a representative of the joint conscious of mankind the information and the evidence that we have so far collected indicate that jamal khashoggi was slain in a vicious, violent murder whitewashing such barbarity will injury the conscious of all humanity we're looking forward to the same sensitivity being offered by the administration of saudi arabia and all other parties of this affair. dear friends, the saudi arabian administration took an important step by acknowledging and admitting the murder now our expectation from them going forward is that all those responsible from the highest degree, highest level to the

lowest level, will be highlighted and brought to justice and will get the punishment they deserve. there are indeed strong signs that the incident was not a momentary issue or a momentary result of something that erupted on site, but rather the result of a planned operation, and, of course in light of the existing information, the following questions still are relevant so all 15 people who have backgrounds that are in one way or another connected to what happened or what was planned, why was this team of people assembled in istanbul on that day, on the day of the murders to gave the instruction to these individuals to come to istanbul? we're looking for an answer to this question as well. why was the consular premises not opened to examinations on

that day or the following days but many days later? we need an answer to this. as it is now clear, of course, there was a murder, and it was clear from the beginning, then why was there a slurry of incoherent statements and now there's officially acknowledgment that there was a murder, where is the body? why do we still not have the body if the information that the body was given to a local co-conspirat co-conspirator, this is information by an authority, now my question is who is this local co-conspirator >> president recep tayyip erdogan speaking before the turkish parliament referencing jamal khashoggi's deaths saying the murder was committed in a vicious and violent manner

notes parts of the vienna convention make it difficult to conduct an investigation, because the consulate is technically saudi soil the saudis arrested 18 men erdogan saying their investigation found a group of men arrived at the consulate around 9:30 in the morning the day of khashoggi's death and removed cameras and hard ricks from the consulate, they left if two waves that night in two planes, and referenced the man dressed in khashoggi's clothes leaving night. we have a lot of reaction, bringing back in michael greenwald. it was difficult to understand with the translator there. i tried to wrap it up as best we could. anything that erdogan said make you change your leaf thbelief t united states will have to impose scalpel-like sanctions on

the saudi kingdom? >> i think the psychological threat of sanctions looming over saudi now with magnitsky will push saudi arabia closer to china and russia >> why >> those links will need to create greater cooperation with them because they're worried about the regulatory risk and it's less unlikely you'll see an aramco public offering >> you believe this case, and what we're seeing here, we talked about the saudi aramco potential ipo, we sat down last month with the head of saudi aramco, you think this makes it less likely that aramco would list on the new york stock exchange >> correct >> connect the dots. >> it will push greater links between saudi arabia and china and russia >> because we have to take action >> we have to take action. we'll make a big enough statement that targeted ca ed el

like movement, but that this will occur >> do you think turkey is holding information? >> i think turkey and erdogan are being savvy going forward. >> turkey plays a fascinating role literally and figuratively they straddle both sides. asia and europe. what do they want? >> the turkish economy needs more investor confidence they'll play a strategic intermediary role playing both sides. they gained much more favor here in the united states since the pastor release the timing for turkey and investor confidence is good. >> president trump has called on the saudis to increase oil production the saudis have told us here on cnbc and have referenced us in

news that we have broken that they intend to raise output by 500,000 barrels per day, indeed they have. now we have the united states pushing back against saudi arabia over khashoggi. saudi arabia made threats to reduce their oil output. does the saudi oil weapon still exist at the size and importance it did a decade or two decades ago given the u.s. shale boom? >> i think we have to remember we're not in 1973 anymore. so saudi arabia is likely not going to weaponize oil as a geopolitical weapon. we won't let them. ultimately they need to increase investor confidence. foreign investment is at a 14-year low. they have to navigate carefully in this conflict and create a more transparent narrative for saudi arabia moving forward. >> michael greenwald, appreciate your insight valuable on a day like today

thank you very much. all right. up next, we are all over this market selloff dow futures are now down 340 points one of the biggest selloffs we've seen at this hour in months we'll talk more about the markets with jeff kleintop coming up on "worldwide exchange" in minutes a busy tuesday we'll see you around the corner. cal: we saved our money and now, we get to spend it - our way. ♪ valerie: but we worry if we have enough to last. ♪ cal: ellen, our certified financial planner™ professional, helps us manage our cash flow and plan for the unexpected.

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now. you had the asian markets coming off big gains on monday. dropping 2%. the nikkei was down. europe is down right now germany down about 2%. great day to have in jeffrey kleintop from charles schwab we need your steady hand and steady voice we're starting to see it on social media, people are writing in, some of our viewers out there have had money in the market for a long time they've done well. i believe it's not unfair to say there's a sense of nervousness out there that we have not seen in years >> it's true i've been on the road a lot across the u.s. and i heard the same thing from individual investors. they're asking questions we see things like the news stories this morning, whether it's minor developments in trade tensions or the issues over the brexit negotiations or the italian budget drama or the fact that corporate share buybacks are limited now. we can use those to explain some of the volatility in the markets. but the background is this

the markets are vulnerable to these things because economic growth globally is decelerating and likely headed into a peak sometime next year that's based on the indicator wes watch most closely that's why it's important for investors to rebalance portfolios, trim areas that have done well like the tech sector, and consider lightening up in areas that are excessively volatile like the meesemerging market stocks. >> the market is supposed to do now what it is predicting for six to eight months from now so if you believe to your point, jeff, that global economies will peak in the next couple of quarters, is this then the u.s. stock market peak because we're looking out nine months? >> i don't think we're there yet. i think we have got sometime in 2019 where the markets peaked, the recession may be beyond that for example, if the yield curve, something you all talk about

often on cnbc educating viewers f that inverts sometime next year, meaning short-term rates get above long-term rates, usually there's a year lag time. likewise they get above the unemployment rate and the inflation rate it's always about a year before recession that those two numbers become the same number we're about 1% or so away. i think that indicates when those come together that we're still a year out from the recession, but markets may peak at that point. long story short, markets have a bit longer to go the story is volatility. 2018, our outlook for this year is one of volatility we entitled it it's getting late in the market cycle. we're a year later now and the market played out its hand >> you know, i think you referenced all the things, the five fingers of the market, trade, brexit, italy, china and now the khashoggi situation, which has come out which

threatens to further disrupt the global order however the one thing that we have not talked enough about is that this is a multi week period where corporations are not able to buy back their own stock. kind of a quiet period, if you will, for corporate buybacks they have always been there as a last line of support for the markets. do you believe once corporations come back in to the equity markets that they will aggressively start to buy back their own shares and help us put a floor under the sell off >> i think there's an element to that individual investors have not been net buyers in recent months they've been net sellers it's been about corporate share buybacks, the fact we're in that earnings reporting season as you state means they're gone it doesn't mean all of the buying is gone. irthi i think they could step in and come back a bit. that's the volatility of the environment. economic surprises have been

disappointing. data generally globally has been missing expectations that tends to line up with temperatures as temperatures cool down a little bit economic data tends to exceed expectations so the combinations of share buybacks and surprising economic data may give us a bit of a lift, but that's just part of this volatility we get >> you laid it out we always try to find reasons that things are selling off. is it brexit and china ultimately stocks go down because more people want to sell than buy that selling pressure overrides buying pressure. do you believe it will, jeff, balance out? can corporate america and the buyers maybe globally that still prefer our market, can they outweigh, if you will, the desire to sell by the schwab client >> they certainly have been big buyers, all this year and certainly not schwab clients but

data across the industry shows investors have been selling starting early this year that is likely to continue i believe it tracks the five-year trend in the market. address that continues as that to fall, that means continued selling. i think corporations can come back to support this market. i know that earnings growth still remaining double digit here, but the fact is markets are looking for threats to that. they're hearing things on trade, seeing rising costs. that's a big part of the end of the cycle. we see those costs pick up labor and materials signaling an end to that earnings growth. >> do we have the fed as the big designated hitter still to come off the bench? if markets continue to slide does it take more interest rate increases off the table?

>> perhaps we're at a stage where that is not as likely. maybe a rate hike in december, perhaps three this year. the fed is already taking this slowly expecting some breakage and volatility in markets. it would take a dramatic downdraft and some disruption, we're about to get some gdp reports for the third quarter, germany may post a negative gdp report so more numbers like that would cause the fed to pause a bit here rather than merely a market drop. >> is that priced in negative gdp print from the biggest economy in europe? >> maybe not yet know it may be related to the auto emissions issue and auto production germany is all about autos it's really more that issue there. but it's starting to spread. we're seeing more and more countries drop off the growth rate the imf pointed to this. so this is an increasing concern

about global economic growth along with all these issues we talked about >> jeff, great to see you on cnbc but on a day like today, even more important and necessary. thank you. up next, how about the midterms they are now just two weeks away we will break down the impact on your money for possible outcomes we'll cnbc that coming up. all e 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.

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. let's find out what's coming up on "squawk box. dow futures down 340 points. it's a big market day today. >> big retest happening here there's a lot of nervousness caravans, there's murders in consulates, there's tariffs, there's china, dot plots there's also earnings. we're in the middle of earnings season so shouldn't we focus on what

our -- stay in our guardrails? we'll do that. we have to talk about verizon, caterpillar, 3m, lockheed. that's the kind of stuff that's here and now a lot of earnings that have come out, the stock market reaction hasn't been commensurate with what's going on with earnings. usually before midterm elections, the market goes down, then goes up for a while it didn't look like that would happen with the great august and september, now we're back to historically more of what we've seen. maybe that's where we'll go. there's plenty to worry about. though, you though, the ten-year, when we have these market selloffs, the yields seem to head down with the markets. there's a new teerm carm calledi

rashgtiara. have you heard of it >> no i've worn one. >> keep that to yourself there is a real alternative. >> tiara is the alternative to tina i thought about it i thought about it two years at 3%, put some money there. that's okay. >> 2% t bills. >> it's not like a cramer stock or nvidia, netflix you won't get rich on that right? >> we'll see >> we can't do it any way. we have to get rich on whatever we're doing here which is depressing >> no, it's not depressing it will be great it will be a big show. "squawk box" coming up in a few minutes. joe referenced the midterm elections. let's bring in an expert to talk about this, trevor hanger joins

us there's four possible outcomes things stay the same democratic sweep, democrats take the house, or democrats take the senate how do you predict the odds on the likely outcomes rite now >> thanks for having me. right now we see the democrats are likely to take the house we think the republicans are mostly going to hold on to the senate that's at about 2-1 that that's the most likely outcome. you can see republicans hanging on to the house and also holding on to the senate, sort of a status quo scenario there. something around the 20% range then a democratic sweep is looking less and less likely down around 10%. hard to see a scenario where democrats can take control of the senate but republicans hold on to the senate if the democrats take the house is sort of the likely scenario now according to your odds and others, is that bad for things like oil companies is it bad for things like

like jpmorgan? >> i think it's important to remember that president trump will be president on november 7th no matter what happens the regulatory environment or the deregulatory environment, you know, in the -- coming out of the administration will stay the same you will see democrats taking shots at some of the larger sectors there. those are sectors where you can see hauled up in front of house committees for testimony but there's some positives that you could see come out of a scenario like that i think from an infrastructure perspective, for instance, looking for common ground with the house and senate, senate republicans, an infrastructure bill would require a hike to the gas tax. that's something that can work better if both parties have a

way to share some of that pain >> if things stay the same, if the republicans hold on, even by a narrow majority, is it bad for facebook, google and big tech? >> it certainly does not help. it's interesting to see republicans leading the way here from an antitrust perspective, but the accusations of a liberal bias within the big tech companies are not going away any time soon. i would not expect a republican victory on election day to change that sentiment. >> trevor hanger, looking at the four possible outcomes we have more to discuss, we simply ran out of time we'll get you back on again soon appreciate it. >> thank you it is going to be a big day for the markets. quick look before we head to break and "squawk box. dow futures are down 300 s&p and nasdaq futures are off have not seen nasdaq futures down more than 100 in a long time

bonds are being bid up the vix is up. oil coming down. a lot is going on. "squawk box" will pick up the ravege thanks for watching "worldwide exchange." we'll see you tomorrow your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.

good morning the rebound in chinese markets lasted two sessions, stock there's tumbling overnight that's contagious. u.s. equity futures pointing to a 300-point selloff at home. a flood of major earnings reports could be the big market driver the over the next three hours. we'll hear from five dow components before the opening bell. and happening moments ago, turkey's president speaking out about the killing of jamal khashoggi. we'll show you what he said on this tuesday october 23, 2018. exactly two weeks now, right

tuesday. "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box." good morning welcome to "squawk box" on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen andrew is off today. our guest host is michelle caruso-cabrera she is with us for all three hours. great to see you >> great to see you, too >> u.s. equity futures this morning, we're in a position of watching steep losses. dow futures indicated down by 300 points i've seen down 334points s&p futures down by 35 nasdaq down by 100 points now. this is coming as we saw losses for both the dow and the s&p yesterday. s&p is now down for four days in a row. the dow and nasdaq are on pace for the worst month since january of 2016.