it's 5:00 a.m. here are your top five at 5:00 a big turnaround stocks surging to cap off a wild october what could be in store for markets as we kick off a new month? a brexit break through the uk and the eu reportedly agreeing on a tentative deal for financial services. david einhorn seeing modest returns amid all the market madness. a worldwide walkout.

google employees staging a massive protest today. and fitbit running into serious sales strength it's november 1st , 2018 "worldwide exchange" begins right now. ♪ good morning a very warm welcome to "worldwide exchange" live from london today, i'm filling in for brian sullivan he is filling in for me on "closing bell. let's check in on what the markets are doing this morning two days of gains in a row for the last two trading days of october. the only two days we did see that we got some decent gains to round off the month as a whole the s&p and dow up 1%. the nasdaq up 2% for the month of october still sharply down.

it looks like a positive start so far for november. let's look at that wild ride in october we did see u.s. stocks rallying into the close yesterday, but the major indices seeing their worst month in multiple years. the dow dropped 6% in october. s&p 7% nasdaq down more than 9% the market turmoil not only felt in the u.s here are some global performances germany down 8%. china down 9%. japan down 11% so the rest of the world felt that pullback as well. let's see how markets are shaping up to start the month of november in general, positive in asia hong kong up nicely. shanghai positive. europe, early trade for you coming up right now. europe also saw a decent bounce

towards the end of october, the last two trading days. in general, ftse is flat that's because of the rally, the pound in an adverse relationship we'll come to that in the second block of the show. germany up 0.7%. we have a special guest this morning. jim mellon great to see you, particularly here in person >> nice to see you >> let's kick off with that wild pullback in october. what was the cause of it in your eyes, the size of it is it in the rearview mirror now? >> i don't think it's in the rearview mirror. we'll see further falls in the next month or so the causes are quantitative tightening in the u.s. you have the internet stocks, the f.a.n.g.s were overearned and still are. they were the principle cause why the nasdaq went up so much in the previous year

you will see more bad news out of them. and i would be cautious generally on the u.s. market in particular >> let's talk about some of those f.a.n.g. names facebook in particular before i left the show, we would discuss your negative view on this did you feel vindicated on that? do you think -- of all the f.a.n.g.s that pulled back the most from the highs. do you think it has further to go still >> i do. more and more people are cutting the cord with facebook, though they have instagram and watts ap whatsapp it's expensive and it they have to spend more money. i would be out of facebook i think it has a further down side of 30%, 40% >> of those other f.a.n.g. names, you can throw apple in there as well, any of those that you would buy? >> apple is relatively cheap, so

i wouldn't be a seller amazon has further to fall it was way overpriced when it was a trillion dollar stock. at this level it has another 20%, 30% to fall largely because growth is slowing and because it's a company that's run almost as a charity for consumers, and it doesn't pay much attention to shareholder returns, except in the stock price, not in the bottom line. what about elsewhere in the u.s. are there pockets of valuation that are attractive? >> i think the oil and gas sector is interesting. the oil rig sector is interesting. some of the dbiotech companies like gilead are cheap. i'm not deeply negative on the united states. i think we're treading water and we will do for a while >> on biotech, your latest theme is longevity is that right? we're in the middle of long jevt

week in london >> yeah. this is a science that's come out of the shadows we have the aspirations of living a longer and healthier life some great stuff is happening. human trials are under going over the next few years you will see dramatic results >> are there ways to play this any of the biotech stocks that you would like because of this particular theme there's two main listedones in the united states. both relatively recently listed. one is called unity, which has a drug in development, removing cells from the body, that's in human trials and then another boosting the immune system in elderly patients that's also very exciting. i think both are buys. there will be plenty more coming to market. >> back to the u.s., both markets and economy. a lot of focus on the relationship with china. the trade talks there. do you think that could improve after the midterms are we on a path with china and

u.s. in their relationship that will only get worse? >> i think things will improve the trump way is to rattle the cage then be friends later on. i think that's what will happen with china actually the chinese market looks worth nibbling at. if you strip out the financials, you have about a seven times pe there. and china remains the world's growth engine. i think it will continue to do so >> are you not concerned when you see headlines of chinese currency at ten-year lows, it's at a psychological level of crossing is that something you worry about? >> no. i think the u.s. dollar fundamentally is overvalued and i would be a buyer if you could do it in the chinese currency and certainly in the yen >> thank you very much we will talk more in a bit after the break. jim mellon stays with us many average investors were left with a case of whiplash after october's market swings,

but what about high-profile hedge funds? we're seeing performance numbers from some of those leslie picker joins us with a look at how david einhorn did last month good morning >> good morning. david einhorn's green light capital posting a small gain, i said gain in october amid the big declines in the stock market that's according to what an investor told reuters late yesterday. a spokesman for the fund declined to comment, but green light says its fund rose 1% last month but it's still nursing a big loss for the year, down about 25%. green light is typically one of the first hedge funs to notify investors about monthly performance. reuters says einhorn did not provide details on what made or lost money in the portfolio but the most recent investor letter in october noted his bet against tesla was the biggest winner in the third quarter. einhorn has also been short a

bubble basket of tech names. it's unclear how he traded netflix and amazon specifically, but if he was short he might have been able to capture the declines in recent weeks his 1% gain for the month stands in contrast to the average long short equity hedge fund. cnbc obtained performance estimates by credit suisse yesterday which showed losses of 7.75% in the month through october 30th >> if we don't see other big high profile hedge fund managers perform similarly well during the month of october, could it be a catalyst for big outflows >> absolutely. >> they've all been arguing that when we start to see more volatility it will be their sorts of market again. they need to perform well in the month of october, do they not? >> they do the month of october is what they've been selling for years hedge funds have been saying we perform when price swings are there, when the market starts to

differentiate between winners and losers in the stock market that's the type of market environment we saw this past month, which differentiates from what we've been seeing for 8, 9, 10 years now so the hedge funds that were not able to perform in this environment it's going to be difficult to make a case for why they should stick with them in the future >> okay. freig great stuff. thank you very much. a bit of a reprieve for mr. einhorn after a difficult couple of years of performance. shares of fitbit surging the company posting a surprise third quarter profit driven by its smart watch business fitbit sold 3.5 million devices in the quarter, the average selling price rose 3%. all state reporting higher third quarter profit earnings were well short of forecasts even as revenue topped estimates. aig posting third quarter losses of more than $1 billion as it was weighed down by claims

from asian typhoons, mud slides in california and hurricane florence the company showed progress in its goal to turn profit in its property an casualty business. it is slipping about 1% in the premarket. google employees around the world are set to walk out today in protest of how the company deals with sexual harassment and gender discrimination. the employees have a list of demands including an endto forced arbitration and a commitment to end pay and opportunity disparity. the walkout comes in the wake of a "new york times" investigation that detaileded ye eyears of se harassment allegations and a lack of transparency the google ceo said he supports the staff's right to walk out. coming up, today's top global stories including a bank of england policy decision which is due this morning and reports of a brexit deal by the financial times. the impact on the currency market next. first, as we head out, a look

back at the worst performing sectors in october not technology, in fact. consumer discretionary and energy at the bottom, industrials and materials, followed closely by technology ch" awick on "worldde ch" awick on "worldde exangein coupl - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-sellinge m. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. takes more mathan just investment advice. from insurance to savings to retirement, it takes someone with experience and knowledge who can help me build a complete plan. brian, my certified financial planner™ professional,

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what was a negative month of october. but finishing on a slightly positive note that is continuing to november. only slightly. up 78 points on the dow. on today's global economic calendar, the bank of england will announce its latest interest rate decision this morning. no change in rates is expected traders will pay close attention to the quarterly inflation report and whether or not they have a more hawkish tone than expected the story of the day for the pound is the british prime minister, theresa may, has reportedly struck a tentative brexit deal with the eu on financial services that would give companies continued access to european markets after brexit it has given a decent bounce, over 1% to the pound and also followed some gains yesterday. we should say we were trading yesterday and the day before at the bottom of the recent sort of

spring/summer range of 1.28 to 1.32 still towards the bottom of that range at 1.29 for the pound against the u.s. dollar. let's get back to jim mellon what is your thought on the eu getting a deal on brexit >> i think brexit is a distraction from deeper problems in the eurozone, particularly in italy, which has yet to manifest itself in a volcanic way >> the shape of the deal likely to be soft, likely to be struck, would that still give the pound a valley from where we are at the moment once it is ratified, if you will? >> the pound has risen quite a lot against the euro it's fallen against the dollar because the dollar has been in the ascendancy generally because the dollar is peaking in my view, i think we'll see the

pound go back to 1.35 or 1.40 in the near future. it's undervalued at the moment the british economy, despite the naysayers and bad headlines is doing quite well it's one of the fastest growing economies in europe at the momen moment >> let's focus on continental europe you're not as optimistic there, which is a view you always maintained italy is the red flag for you? >> there's no way that the ecb can contain the italian situation if it carries on as it is if the btp gets above 4% on yield, they're not that far away from it, italy has no option but to leave the euro and take drastic action the omens are good for the italians we won't be -- this won't be announced in advanced that they will leave the euro, but leave the euro i think they will do. >> that's a stark belief on

where the situation goes does potential change of the chancellor increase that or is that not a factor here >> i think it's a major factor i think if merkel goes, and the omens are she'll go quickly, the alternatives within her party are more euro skeptic and less likely to support an italian bailout. i think we will have this crisis in europe. european markets are cheap the euro will fragment and there will be great buying opportunities. that's the time to focus on europe and to drill down into what's good and what's bad in europe and try to pick it apart. >> let's bring back the discussion to the u.s. market. the brexit vote weighed heavily on the u.s. because of fear of

contagion. do you think that will happen again an this is something that u.s. equity investors should be focused on >> i think so. you'll have a short, sharp correction if europe blows up. the brexit vote is nothing compared to if italy left the eurozone, which is a high likelihood in the next couple of years if not before. so that will result in a sharp shock. the markets are overpriced in most areas i would hold cash, and maybe put that into japanese yen or british pounds i think the dollar is peaking. >> if we get that shakeout in europe, what are the main areas you do think are undervalued and that will be long-term survivors? >> consumer stocks in europe look cheap, and in the uk particularly cheap i would put a buy order in at 10%, 15%, 20% below current

levels if they get there, we'll have a bit of a crisis, fairly major crisis when italy leaves eventaly doesn't leave, al the problems are not going away in a hurry i would go for those consumer staple stocks which are now becoming quite cheap the drug companies are looking cheap. even the banks in certain instances post an italian crisis would look cheap the uk banks, lloyds in particular, they are well founded and cheap at the moment. >> u.s. financials at the moment, relative to the rest of the market, they look cheap. you seem fairly bearish. >> the u.s. financials have had a very good run since -- in the last five years. they sell at a premium to book value. so i concentrate my attention on the dividend yielding companies like lloyds or hsbc and focus on them they're liquid stocks, they're

ones you can buy and hold with great confidence over the next ten years or so. >> jim, great to see you as always thanks for joining us on "worldwide exchange. still to come, earnings central. credit suisse shares trading lower following its latest earnings report. as we head out, a startling statistic to start your morning. the vix up a huge 75% last month. we'll discuss that and much more to come on "worldwide exchange."

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shares of credit suisse are under pressure today as the bank reported a big increase in third quarter profit geoff cutmore spoke with the ceo earlier today. he has more on the numbers >> good morning. the numbers were not a bad miss, but tidjane thiam, the ceo, is pleased even as they saw revenue year-on-year for the quarter down 2%, costs were down 8%, and, in fact, they delivered a reasonable spike in net profit on the comparison. one of the key issues, though, is what happens with the global markets business going forward and where there was some weakness was on the fixed income

activity with client activity significantly lower. tidjane thiam just reflecting on the nature of the markets that we had let's listen to what he had to say on that issue and what we might see in markets going forward. >> there's a disconnect between the condition of the economy, if you wish, and the psychology of the mindset in markets which is a bit fragile. people feel interest rates are going to go up so fixed income feels risky. you see in a bear market is big volumes when the market goes down, and small volumes when the market goes up that's kind of what you're feeling now. that nervousness comes from the numbers. >> what's interesting is how the bank has shifted its messaging in this earnings report. while last quarter there was a

focus on demonstrating the successful growth of the wealth management business, this time around i think they've shifted focus and wanted to demonstrate particularly to a u.s. investor base whilst switzerland is clearly in europe, this bank is not an eu or a eurozone bank they have produced a number of slides demonstrating where they are ahead of their european competitors. back to you. >> geoff, i find it fascinating looking at the trading performance of these banks, i look closely at the u.s. banks, and as we all know the u.s. investment banks have taken a lot of market share from europe and asian banks in trading we know that already as we see the earnings for this quarter and this year we're seeing on trading it's an all or nothing bet in terms of investment to gain back that market share credit suisse following the path of deutsche bank in this quarter

as opposed to barclays which managed to buck that trend a bit. >> i agree with you on that. though i think the folk over at credit suisse would point to the billion dollars of underwriting and advisory generated through the quarter, which puts them squarely in front of barclays, ubs, and deutsche bank and they would say, look, you know, we are in europe, but we are ahead of european peers. though we are trailing behind the bold bracket u.s. investment banks clearly. when you break it down into market activity, in equity prime brokerage they are number one in europe >> geoff, thank you very much. lovely backdrop you have there as well. enjoy the morning. up next on "worldwide exchange," hitting the brakes. a double dose of recall news on the deck why toyota and subaru are both pulling thousands of cars. stick with us on "worldwide

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a new month, new risks. stocks capping off a wild october ride. a china consumer check fears of an economic slowdown taking center stage overseas plus an apple a day keeps the bears away the tech giant set to roll out quarterly results today. it's november 1, 2018. you're watching "worldwide exchange" on cnbc.

good morning a warm welcome to "worldwide exchange." i'm wilfred frost sitting in for brian sullivan who is doing "closing bell" today let's get you up to speed on what's happening out there in the marketplace and other headlines. leslie picker has those headlines for you. >> here's what's leading cnbc.com now green light capital posting a small gain of 1% in october amid the big declines in the stock market that's according to what an investor told reuters late yesterday. shares of fitbit are surging. the company with a surprise third quarter profit thanks to its smart watch business which accounted for nearly half the revenue. google employees around the world are set to walk out today in protest with how the company deals with sexual harassment and

gender discrimination. leslie, thank you very much for that let's check in on the other headlines outside of the business world frances rivera has those in new york for us. good morning >> good morning to you just five days until the midterm elections, president trump is firing up his base on immigration during a rally in florida. he once again called for an end to birth rigright citizenship. he is now threatening to triple the number of troops he's sending to the border, up to 15,000 a crucial discovery off of indonesia. navy divers recovered the black box from that lion air flight that crashed into the sea killing all 189 people on board. a skateboarder turns the

mean streets of new jersey into a new world. he dressed up as aladdin with his board decked out like a magic car testimony. he then glided down the road with it. one thing he is missing is a print princess jasmine >> he has some pace on that skateboard thank you. let's see how november is starting in the markets. futures are pointing higher to the tune of 70 points, 80 points nasdaq up 16 positive day yesterday we were up 1% for the s&p. the nasdaq up 2% that meant two days in a row of gains to end the month of october, which was the first time that happened throughout the month at the end october still sharply lower for

the u.s. markets there is the asian trade for you today. japan lower. hong kong was higher shanghai was flat. european trade for you, we have a strong pound this morning. the inverse relationship that often holds is playing out with the pond higheund higher the ftse is flat decent gains for germany let's talk about currency markets with kit juckes from socgen good to see you here in person >> good morning. >> the british pound, up over 1% earlier. it's given back a bit of that because of the october manufacturing pmi. do you think this is range-bound movement at the moment or the start of a more meaningful jump? >> i think it's more likely range bound. if we look at what we've done against the euro, we've moved in a narrow range we're close to where we have been on average. the only thing you can say is

we're all suf fish shficiently . we're probably doing this for a while longer >> one thing you point out in your notes is how strong the correlation has been between the euro and the pound when looking at the dollar even if it's moving for a uk-focused piece of news or a europe-focused piece of news. >> that's right. sterling is weak, we're bearish, the news is bad. we have brexit coming, at the margin we'll blame everything on bad news from that in reality i think we can't fall much further so we get dragged around by that bigger relationship between the euro and dollar. they bounced off the lows yesterday, so did the pound against the dollar >> the broader dollar index up 2% for october what do you make of that start of a more meaningful trend or just a small bounce >> there's probably more to go it's not how i thought the year

would play out at this point the european economy is losing momentum we have political risk in europe the biggest danger is after the g20 meeting at the end of november we may well see further weakness in the yuan all of that supports the dollar. look, tomorrow we'll probably see 3% rage growth, another solid gain in employment we'll also be talking about whe the fed next raises rates. >> the yuan, ten-year lows this week everyone is saying the seven level is an important psychological level. that could spark a more meaningful downside to the chinese currency do you buy that? do psychological numbers matter? >> they must to some extent. in the big scheme of things the story is more that you had a 30% real appreciation of the yuan over the last decade with an economy slowing, current account surplus that is vanishing. why would they not want to allow

their currency to weaken against the smaller dollar i think they don't want it to be a one-way bet, so they stopped us for -- i don't know how long they stopped us here for >> in terms of the hopes of things improving, whether we talk about getting past the midterms, getting past the g20, do you think either of those could be catalysts for the trade talks to improve or are you skeptical? >> i'm fairly skeptical in the sense that the midterms -- we'll see how we go in terms of what the focus will be. whether it's on tackling a split house or whether it's on tackling the need to get re-elected by 2020 the next election. butit's hard to see the u.s. administration backing off so i think we're set for continued strains. >> let's bring it back to the fed. you mentioned that and the data we're getting tomorrow what's your forecast and do you think the equity market

volatility and comments from the president will play into the fed's minds or will they focus on the data we get tomorrow? >> at the moment they're focusing on the data so there's very helpful base effects from last year when average hourly earnings fell in the aftermath of the two hurricanes the results of that is we're almost certain to get an acceleration in wage growth above above 3% unless the equity market has november every bit as bad as october, i think we'll get another rate hike and talk about how much further we go next year >> kit, great to see you investors around the world are watching the chinese economy amid a trade fight with the u.s. eunice yoon joins us from beijing with more on the consumer outlook there good morning >> good morning. just when policymakers here needed all the help they could

get to stabilize growth consumers are holding back there are indications that the trade war, the broader economic slowdown are scaring consumers into saving rather than spending consumers had been delaying purchases on big ticket items like cars. sales in september dropped 11.6% from a year ago. smartphone sales have been softening all year with third quarter china shipments down 10% from a year ago. we spoke to one concerned consumer a corporate lawyer who said he was cutting back on his monthly salary by a quarter it doesn't bode well for foreign brands which tend to price higher in this market. this is what he said tef >> translator: as a veteran apple vanfan i would buy all th new releases each year this year i only got an iphone x

x max. this year i switched to more domestic brands. >> if this consumption downgrade continues, there could be two outco outcomes one, policymakers here will have a bigger headachetrying to reach their own growth targets, and, two, it could be a bigger concern for investors. if there's a widespread retrenchment of consumption that would affect investors >> how much are mainstream consumers focused on growth

targets? >> i was talking earlier today with someone and he said the yuan does not buy as much. he was cutting back on overseas travel because he's concerned about the level of the renminbi. this is a huge talker among consumers who are worried about where it's all headed. >> eunice, great stuff thank you very much. still to come on "worldwide exchange," the super bowl of hollywood items. we'll tell you how much those items will cost you. first a look at the top performing specters for the s&p. staples and utilities the only two positive sectors wee ck'rba in a cummins on "worldwide exchange.

good morning welcome back to "worldwide exchange." lovely view there of new york. the show is coming to you live from london this morning let's get to the top trending stories. leslie picker is back at hq across the river from times square with those stories. >> hall weoween is barely over,f you're wondering what to do with that excess candy, listen up an organization allows you to donate the extra candy to

soldiers serving overseas and veterans at va hospitals you can plugin your zip code and find a donation location near you. twitter is testing a pair of change, is that users have been requesting the first is the option to view your timeline in chronological order. some of the users have complained that the site's algorithm caused them to miss breaking news tweets or minute by minute reactions to live events the second change will allow you to report spam tweets, including flagging suspected bot accounts. if you ever wanted to own a piece of hollywood, there's a golden opportunity coming your way next week. but you have to come back to new york for this one. the icons and idols memorabilia auction will happen next week at the hard rock cafe some of the swag are gowns worn by aretha franklin, prince's purple rain jacket and the guitar played at his final

performance. and sunglasses worn by john lennon >> some awesome items there. i don't think i'll bother to buy them, but i'll be back in the states, fear not this time last year roughly i was lucky enough to go to the last ever live performance of aretha franklin. that jogged my memory. good timing on your part >> that was. indeed it was. leslie, great stuff. the red sox may have used the slogan do damage during their playoff run but they probably didn't mean it like this the team took to the streets of boston yesterday following their world series win for the parade. a fan tried in a good way to throw a can of beer to the manager. you can see for him to drink it missed the mark, hit the world series trophy and damaged it the team says no harm, no foul

play i guess he threw it hard, even if the people on the parade bus should be able to catch. they didn't. and there we go. the trophy was damaged thankfully not in a way that can't be repaired. we are approaching the top of the hour. the team is getting ready for "squawk box. becky has a look at what's coming up. good morning >> good morning. does it drive you crazy to call it the world series in baseball when we don't insight any other nations? >> it doesn't, but it does when you bring it up. >> john cleese brought it up >> good man, my godfather, also. >> i know. it made sense. >> he goes on quite a few rants these days we won't bring up all of them. >> why are you in london this week >> because i'm extending my visa

so i'm allowed to return not just for a short period of time but for a long period of time. >> are you serious >> i am. >> your wonderful customs agency makes me do that back here >> another reason to love americans. >> brilliant idea. brilliant idea i'm not going to diss it before i get my passport back in my hand >> how long are we waiting >> i'll be back on sunday all things going smoothly. i'm not sure we should be discussing this on air >> i had no idea why you were there. i thought it was something you were doing with friends or family let's talk about a few things coming up. we will talk about earnings. we have dow, dupont earnings at the top of the show. a lot of other earnings including spotify, the "new york times,"petroleum, cigna. a lot of things happening today. we'll also talk about the earnings you can expect after the bell tim cook's birthday today. happy birthday to him.

ian shepherdson will be our guest host from 6:00 to 7:00 a.m. we'll talk to him about what he's seeing not only on the macro economic front but also things happening around the globe. and tom lee will be our guest host from 7:00 to 9:00 we'll talk to him not just about bitcoin but what he thinks is happening here with the end of october. is this a new start for the markets? will it go up from here? we'll find out what he thinks. and stacy cunningham will join us from the new york stock exchan exchange we'll talk to her about the volatility in the markets. maybe get into the debate about rates. the s.e.c. saying some of these exchanges can't raise the rates they're charging for some data feeds. got into a discussion the other day with not only an s.e.c. official about this but also the head of the nasdaq a lot coming up in just a few minutes. wilf, i'll see you back here soon, i hope >> is stacy coming to the

nasdaq >> no, she's in washington she's there for a conference she will come to us via remote from washington, d.c >> there we go looking forward to "squawk box" at the top of the hour. when we come back, global opportunities on deck. where in the world should you be putting your money if you're looking for opportunities outside of the u.s.? we will also check in on october's worst performing international markets as we head to break there they are we'll be back on "worldwide we'll be back on "worldwide chge." to examine investment opportunities firsthand. like e-commerce spurring cardboard demand. this is strategic investing. allergy-free peanuts. because your investments deserve the full story. t.rowe price.

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arcelormitta is up 1%. the company raising its oil production forecast for the year and xpo logistics missed its profits outlook. subaru and toyota are set to recall 400,000 vehicles due to faulty engine parts that could cause the car to stall while driving. the recall affects some of the most popular models like the forrester, the impreza toyota is recalling the subaru-made scion sports car let's check back in in markets. steven pete joins any. good morning to you.

>> good morning. >> we've seen a pullback a lot of focus on the u.s. which international markets provide the best opportunity to get back in? is there more to come? >> it's nervous times. when you have a pull back, everything gets hit. as we go forward through the back end of this year into next, you will see some discrimination we think the decade of u.s. preeminence in terms of the biggest returns from the u.s. are likely to be challenged. we see better opportunities outside the u.s. in the main international markets. clearly a lot of challenges for europe can they rally before those issues are solved or do we have to wait for those things to be settled? >> i've been working in europe for a long time. it's never easy.

even when the fundamentals and everything is pointing in the right direction. so the issue is serious, much more serious than with greece. they will be kicking the can down the road. brexit coming up is likely to be a relief or rally. there's a number of signals along the way that help or remove issues for europe investors are attracted by the valuations >> can you buy the chinese market at the moment >> china is always challenging always boom or bust in terms of investor sentiment never in the middle ground the important thing to remember about china, they have very good skills at operating levers to get their economy in the right track. there's rumors as you probably already covered this week in

what they may do in the automotive market. we think china will be okay. but the market tends to really love it or hate it with no point in between >> bring it back to the u.s. quickly for us your pessimism there is based on what fundamental economy or valuations >> economy will slow it's been tremendous it's been helpful to the u.s. in terms of returns we think it's likely to roll as we go through next summer to a 2, 2 1/2 range so no disaster, but getting back into the mix in terms of big economies. the issue there is valuation and the style of markets the trends in markets the last few years, earnings momentum and growth that's what the u.s. is good at. we think there's been crowding, pockets of exuberance and we'll see growth more challenged not dead, not saying sell growth and buy value, but growth will find it harder going forward and having more value in the mix will be part of a successful

reci recipe >> thank you very much for joining me quick check in on futures as we head out. pointing higher after a wild october. a positive end to that month that does it for "worldwide exchange."

good morning. no, it's not "closing bell." it's still just "squawk box. stocks surging to close out a wild october the market lost nearly $2 trillion i'm out of breath. >> way to walk >> i cannot do that show, i guess. we'll show you today's big movers as we get ready for more earnings many investors left fitbit for dead, but the stock is soaring this morning i need to slow down here we'll tell you why wearables might be making a comeback

and we'll get some earnings. we'll get dow dupont also spotify will come this hour it's thursday, november 1st, 2018, "squawk box" begins now! ♪ live from new york where business never sleeping, this is "squawk box. >> good morning, everybody welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. let you in on this, some shows walk a lot we don't >> if you're not going to -- how can you report business news if you're not walking >> this is true. it adds to what you're seeing. the context. i don't know >> all right >> we have a lot -- we have eight floors we could work with here >> we'll experiment with stuff you can come along >> no, we'reot