♪ good thursday morning. welcome to "squawk alley." carl quintanilla with morgan brennan, jon fortt at post 9 of new york stock exchange. getting some breaking eia data >> carl, taking a look at this now. we have a build in crude oil inventory of 10.3 million barrels. i want to look at the production number 11.7 million barrels a day that's up from last week remember, one of the reasons we saw crude oil drop so drastically is that u.s. production number continues to climb. and again, it is climbing here crude oil trading 56.57. a little rebound yesterday massive losses in the trade.

seen more than 20% in the last month alone. two days of slight gains, maybe not necessarily enough to convince the market. as long as we're holding over 55, traders say for the time being, you're safe in this trade. back to you guys >> thank you so much we begin with apple. shares falling into bear territory in wednesday's session, down 20% from early october high, although getting some back today, up almost a%. goldman, sachs analyst is with us, lowered iphone sales estimates earlier in the week. always good to check in with you. good morning >> good morning, carl. thanks for having me. >> we got a nice on-going bull bear debate for apple. morgan stanley says that maybe investors are hyper focused and unit growth and guidance we're getting from suppliers is nothing than they told us on november 1st what do you think? >> i think things are a little different than that. i don't totally agree.

we called out the potential for china sluggishness to drive weak earnings guidance a couple week before earnings, i don't know if you remember that. that turns out to have been the case these recent supplier cuts, some of those have been contemplated earnings guidance, fair to say my suspicion having done this over 12 years is probably not all of it is contemplated. seems like we're seeing indications that demand is weakening as we speak. >> so rod, i wonder how you look at apple post iphone unit numbers now. i'm starting to push on the idea that the number we wish we had is annual revenue per customer looking not just at the iphone and replacement cycle but also things in its orbit, including air pods and max, things like apple music and other services is your belief the lengthening

of iphone replacement cycle trumps all those other things in areas where apple is trying to move the needle the next couple of years >> yeah. i think look, tim cook's commentary on the earnings call is that we ought to look at it as grocery basket of products that we don't necessarily care what's in the grocery basket the problem with apple is the grocery basket has one thing in it, an iphone. it is a single product company it is very difficult to then say that with any degree of confidence that we should not be looking at unit volumes and not be looking at the iphone and i think investors will continue to try to focus on that remember, there's a lot of third party sources for that data. by removing that unit data, i think they may increase volatilityaround the reports >> i'm going to dig in to this further. i feel like ahead of the most recent earnings report we got,

you saw the stock trading at higher valuation, relative to its historical norms, and the story everybody seemed to be coming on and talking about was services, growth in services, higher margin services does that go away or change? >> yeah, you have services story is put back in the microwave oven when we see weak nness in iphone units most people that do detailed work on services including us feel like we have a good handle where it is going. my personal view is apple's direct paid services, like icloud storage, music, these sorts of services, they achieved low penetration, just 10% penetration of active installed base there's a lot of work to go, and they have been working on it awhile i think the services story, we see it coming back every time we have weakness in the iphone. i don't think it is going to help the shares going into next

year unless it does accelerate a lot. >> wow that's a harsh rebuke of the razor blade thesis that they have are you calling services a deflexion from any iphone unit weakness >> i don't think, i don't know what you mean by deflection. i athink services growth will b fine, i just don't think it will inflict positively from where the market expects it to be. we called out awhile ago we thought the tack for google is $9 billion, and still growing well, maybe 20% growth every year there's still growth in services, it is just that are we going to see some sort of magical inflection of services next year? i don't think the data supports that view at this point. >> here's my concern, rod.

time and time again when there's a hiccup, people underestimate apple, whether it is the challenge from samsung right now it is not just the services and accessories story, there's also a question of how much revenue up side is there for apple, even if units don't increase that much they have proven despite doubters through the latest cycle that there's up side, now analysts are saying there's not enough are you sure >> yeah. let me say, apple is a great company. probably one of the best companies to grace the face of this planet. so i don't think we should, you know, we should never underestimate this company these are very talented people, very good people and a great company. but what i think people should also recognize is that anytime we have seen full penetration of this sort of technology product and apple has a great product,

i'm a big user myself, what we then see is a lot of economic exposure we see weakness in china the replacement rates on mobile phones and technology products in general can blow out faster than people think they can when economies are a little weak. and that's kind of what we're seeing now so you don't want to underestimate apple. no disagreement with you there at the same time, don't underestimate what a little economic weakness can do to iphone units looking into next year >> so rod, bottom line, somebody with maybe apple stock in the retirement portfolio, they're seeing it is trading in bark market territory, seeing analyst down grades this week, you tell them what? >> somebody that's a long term investor in apple, i think apple is fairly valued is this a company you're getting

above market returns in your portfolio, probably not. is it a company that's going to be around in ten years' time and is still going to be there, i have gone way down in terms of value. i think the answer to that is probably yes it is still going to be here in ten years and kind of know what apple will look like in ten years. i don't think you get outperformance from it, but will you track market returns with it, probably >> before i let you go, i want your thoughts on another stock you cover, cisco, up 3.5%. your take away >> these are great results this company is executing extremely well very transparent company communication wise i give them a lot of credit for that what can you say the company beat the earnings forecast by five cents or four

cents. it is a big beat they're doing really well. the end markets for them are performing well and seeing ramp on the new product, so you know, company is firing all cylinders. we're very positive on it. >> shares definitely reflect that, rod. >> great to be with you guys the oracle adding oracle richard hathaway showing third quarter filings wednesday with half of the top ten largest being banks. additions to the portfolio include a $4 billion stake in jpmorgan chase and cloud company oracle tech being a sector buffett avoided in the past. apple is the biggest holding and ibm. shares of oracle up now 1.5% the other thing i note in that

filing, the company assumed a position in travelers which i find interesting given that berkshire hathaway allowed them to do so much investing is insurance, they have a number of snoo insurance companies as well. >> oracle, an interesting position people are like is this more ibm, more apple? i think the core question with oracle, yes, they're a database giant. they managed to hold that position lar larry ellison hammers that home every time we see him on stage every time there's a move towards interoperability, we play nice with that player here and that one there, oracle has more of the hardware and software message maintaining it in-house how is that going to play out? will they lose cloud share by not having more of a big tech message in the cloud i don't know oracle of omaha is betting on it >> certainly the andy jessie

ellison fight on twitter is turning into one of the best, we have soon. >> we will hear soon aws re-invent is coming in a couple of weeks. walmart posting a mixed quarter, raising guidance in expectation of a strong holiday season qutenertive into walma's arr xt stay with us [ phone rings ] what?!

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welcome back to "squawk alley. against the backdrop of walmart earnings, senator bernie sanders is proposing legislation titled the stop walmart act elon ylan mui has more >> reporter: it would prohibit large employers from buying back stock. they have to pay workers at least $15 an hour, applies to part-time workers, contractors, everybody. they have to get at least $15 an hour employers would be required to give workers up to 7 days of paid sick leave they can use for themselves or to take care of a family member. finally, it would cap ceo compensation at 150 times median worker wage. in a statement to cnbc, bernie sanders said the walton family which founded walmart has a net

worth of $180 billion while retail workers have horrendously low wages with minimal benefits. said the wealthiest family in america must play workers a living wage. i want to make it clear. this bill is not going anywhere or going to become law, especially in a republican controlled senate. but it is an example of ways that democrats are trying to use the bully pulpit to turn up pressure on big business and from their perspective, it is working senator sanders had a similar bill aimed at amazon, and blasted disney for what it pays its workers. both companies agreed to raise minimum wage this bill is important for another reason, because it is a test of a kind of message that democrats want to run on in 2020 you heard it from maxine waters, saw what it did to bank stocks, you're hearing it today. how tough do democrats want to get taking on corporate america.

my best is you'll see more ideas like this in the next two years. >> they're going to keep us busy thank you. walmart posted strong e-commerce sales and raised guidance ahead of the holidays. shares are down 2% now for more on the quarter, bring in jerry storch, former toys r us ceo and courtney reagan that spoke with walmart's cfo early this morning good morning to you both jerry, i'll start with you we had an earnings beat and raise for full year guidance, on pace for 40% online sales growth why is the stock lower >> i'm not worrying what happens in a couple of hours their earnings weren't spectacular. if you pair away the investments in e-commerce and growth there, what's going on in stores must be amazing you saw the gross margin rate under pressure as expected because of growth in e-commerce but the expense rate actually declining with the incredible

leverage they're getting they made up for anything lost on margin rate means the stores must be making a lot of money in an era all about the internet while they are growing internet 40% buy by my book, they're doing everything right and the company is a great future winner in the retail economy we saw macy's decline when they reported good numbers. i have to say from my perspective, couldn't have had a better quarter at walmart. this morning, retail sales came out, and they were spectacular they were tremendous the consumer is very strong. there are winners and losers as we talked about many, many times, but walmart is a winner. >> courtney, same question to you. you spoke to the cfo, i am sure you were monitoring the earnings call as well thoughts why the stock is moving lower? >> obviously we are in a down draft for the market i think a lot of and lists are

saying things look good but the fourth quarter is a different ball game. it is a show me story. several analysts used that exact phrase yesterday things have gone well in the last three quarters for retailers, including walmart, but can it continue. earlier today on your program and others folks are wondering is this as good as it is going to get for the consumer and the market there's a worry, that is in heernlt in all -- inherent in us they also upped earnings guidance we know revenue was a little disappointing but they had a negative drag in currency which seems to be hard for analysts to figure out to nail that consensus number right >> thanksgiving is next week >> don't remind me >> i was enthused by the walmart team they know things they're not

talking about, how well the fourth quarter is going. having run a number of companies through this period, you already see the trend by now when they're saying it will be good in the fourth quarter, it is going to be great >> at what point, jerry, a couple of things i track with walmart. one, strategy, picking up niche retailers, picked up a plus size clothing retailer, how they can grow those online. the others, the omni channel idea, how they transform the core business with the internet in mind. as you watch sign posts along the way at how they're doing, what are you watching, particularly when it comes to the core business that gives you maybe confidence that this isn't just a great quarter >> i said before, if walmart made the investments they're making today, there would have been no amazon they're doing what they need to do to lever bricks and mortar dominance, hate to use that word, bricks and mortar strength

on the internet. they have thousands of places to pick up groceries when you order online they're making moves to leverage bricks and mortar on the internet that's the model of the future. >> the point better late than never? >> certainly wouldn't have grown to the scale it is and they wouldn't have the lead they have second part of the question related to what acquisitions are doing. from my way, they're doing that because they're desperate to catch up as well as they're doing on the internet organically, they're never going to catch amazon. they're one-tenth the size of amazon they have to buy the other companies to generate that 40% growth they need to catch up to amazon, which is still growing 20% a year on a much larger basis. >> to jerry's point, there was a media call and we asked for more detail on digital brands what does it mean, how much of

they driving that growth online net e-commerce sales were up 43% and he said they're a small portion of the pie they help with margin. at some point maybe we could have as much as 40 of those in the portfolio. he said that previously. but i think the point is that if you are a walmart shopper and looking online and you're searching for some of these things, hopefully you found things so you won't leave the site, go somewhere else. that's how that lord and taylor partnership works. not all items are sold on walmart.com but they're buying that expertise and data to begin to figure it out i think unfortunately we haven't seen the fruits of that labor yet, but it is part of a bigger strategy >> if you saw amazon's numbers last quarter, the organic, first party growth was only 10%. it was the marketplace that was

growing. walmart has to grow both ways to catch up. >> before we let you both go, senator sanders' act to raise minimum wage >> everyone has to match amazon's wages i don't want to get into the politics of it, but this kind of regulatory effort, if anything like that did pass will have unintended consequences. it drives the small guys out of business he attempts to exclude small guys, no way to do it. once big guys are paying $15 an hour, then the smaller ones have to and the market is working, it is red hot. wages are going up they hit $15 an hour before you blink without legislation. >> quickly, did the company respond? >> i don't believe it is something that will pass it is a bully pulpit situation i think the market has responded in areas it needs to walmart has many more associates that are eligible for something

like minimum wage than amazon does so it is not like you have millions of amazon workers that are going to be paid $15 an hour it is much less than you would have if walmart did the same. >> thank you both for a lively conversation on walmart. when we come back, kudlow or navarro. who is running the president's trade war? we talk about the impact for investors next the dow down 120 pretty good session for tech and semis, walmart strugglg into reclaim 100. back in a minute

european markets are set to close. obviously the brexit headlines are swirling as theresa may's future remains somewhat in doubt. >> as we approach close, it is about the brexit headlines weighing on the european close you can see red across the screen it may look from the ftse 100

like the uk is outperforming, but it is being flatted by unilever or bp if you go to the smaller cap, it tells the yooik story of the brexit headlines down close to 2% today, close to 1% in the last week. of the big caps, plenty of names are suffering. banks in particular. barclays and lloyds. property names like bovis homes is down 8% back to europe certain names suffering there, banks included in that list. deutsche bank down 1.5%. companies with big exports to the uk like bmw, down a percent. and ryanair, they're down close

to 7 or 8% how big are these falls today? quick look at the british pound, year to date chart it is down 11% from the 52 week highs in april right near the 52 week low which was 126. prime minister has a press conference at midday. >> we'll be watching that. thank you. after the break, a closer look at faang stocks as the nasdaq turns higher. first, delay, deny, deflect. more on the "new york times" investigation into the facebook crisis period. a lot more "squawk alley" still to com e.

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including the latest movies and box sets from around the world. ( ♪ ) we even have live sports and news channels. ( ♪ ) and your free wi-fi will start shortly. enjoy your flight mr. jones. world's best inflight entertainment. fly emirates. fly better. good morning once again. i am sue herera. here is your cnbc news update. turkey's foreign minister says the announcement by saudi arabia recommending the death penalty for five suspects in the killing of jamal khashoggi still falls short of expectations. he insists they should be put on trial in turkey and the saudis reveal who ordered the killing. french president macron says france and the u.s. must respect each other it comes in response to a flurry of critical tweets by president

trump. macron made the comment from an aircraft carrier off the coast of southern france. earlier this morning here at home a small brush fire broke out on a highway in southern california the brigs fire is growing at a slow rate, but that could change as dry conditions persist. and remember the new jersey couple that raised $400,000 for a homeless man who helped them in their time of need? well, they're all now facing criminal charges prosecutors say they conspired with johnny bobbitt to create that scheme. you're up to date. that's the news update back downtown to you, jon. >> thank you, sue. be careful on the internet, everybody. "new york times" is out with a scathing investigation into facebook titled delay, deny and deflect. how facebook's leaders fought through crisis the article raising troubling

details on facebook's tactics during the depths of the cambridge scandal. one quote, facebook continued to look for ways to deflect criticism from rivals, leading others into the controversy and arguing google struck similar data sharing deals take a listen to amy klobuchar >> i am sending a letter and to the justice department to ask about hiring of consultants and research firms to go after critics of facebook. what i want to know in addition to the information that was in "new york times" is did they also go after political opponents as in people that work in congress, as in collected officials. if money was spent on that, not just the research, but also the going after them somehow maybe on their own platform, on facebook or placing articles against that, that could run into the campaign finance laws

>> and joining us now, one of the reporters behind that piece, my friend and former colleague, cecilia kang and philip jeffries that joins us for the stock impact good morning to both of you. >> good morning. >> cecilia, one of the things that struck me most about this piece, and facebook has pushed back somewhat this morning saying they didn't directly intend for definers to spread false information about competitors, but they haven't denied that. i can see the details. one of the things that struck me is that inside facebook they seem to not be supporting people trying to bring some of the weaknesses, particularly when it comes to russian interference to light. what do you view as the most surprising thing your team's reporting turned out >> that was one of a few very surprising details this was a six month investigation into facebook. what we tried to do is to look

inside and at the top leadership the top leaders, mark zuckerberg, the ceo and his top lieutenant cheryl sandberg apologized in public, but what we didn't know is what their decision-making processes were, how involved they were in terms of understanding the extent of the abuse on their platform by foreign agents as well as politicians and third parties that want data and how they acted on that. what we found was in fact the top two executives deflected a lot, passed on decisions, in some ways were distracted. both were by personal projects they were very concerned about political repercussions from going out too strongly on issues like russian interference. they really wanted to stay away from that hot button issue these are the top two executives at the world's biggest communications platform. what we discovered is they create a culture in which those

who push back strongly have since left or were silenced and that they surround themselves with people that are quite loyal to them and do not push back as strongly and that could be a problem going forward. >> cecilia, have you gotten any sense in the past six months that facebook has changed its tactics, even dealing with "new york times," its openness to sitting down to you guys, explaining thinking behind some of the moments and things in your reporting or are they still in what some call damage control mode >> i think it is a bit of both they've certainly made efforts to correct the problems. there are thousands that will moderate content they're putting money into creating artificial intelligence to spot fake accounts and content. they're trying mark zuckerberg and sheryl sandberg have been on the hill

to testify that said, they're doing many things behind the scenes, which is what we wanted to reveal in our story, particularly washington, to fight against the public relations crises that they're facing now some of the tactics, listen, washington is full of lobbyists and what they do often times is to promote causes of a company after that, the question is are you doing things that stand by the values of your company what we found is they were in many ways playing both sides, either pandering to republicans or democrats, leaning on relationships such as with chuck schumer and other senate minority leader, and using connections as well as putting their money into third party organizations like definers, a republican backed group, to create opposition not just research but tactics to help fend off critics and promote the

company. >> you have this investigation from "new york times" today, you also have this flurry of regulatory filings showing quite a number of fund managers have exited or reduced their stakes in facebook. stock is down another 1.5% what's the read through for the stock. do we have more pain to come potentially for awhile longer? >> it is an avalanche of bad news right now i think for the stock, it is in a penalty box until we get into early next year. i think they've indicated that 2019 is another investment year. 2020 is when you're going to see potentially a lot of actions improve the financial results. most of our investors continue to believe they have time to wait to buy facebook until mid '19 or 2020. i would say of large cap internet names, maybe all of the top tech names, this is the

worst sentiment. stock reflects bad news, down 20%. it is trading below multiple of coca-cola. i realize people are drinking coke next year and may not be in facebook you have a lot of bad news embedded in the stock. the momentum is gone and hedge funds are short. my sense is it will linger another quarter or two, and as "new york times" reported, there's a continued flurry of negative headlines i don't think it is going to stop in the short term. >> it does appear to have effected the stock thanks for being with us >> thank you for having me. look at apple, up around 2%. first, rick santelli, what are first, rick santelli, what are you watching today first, rick santelli, what are you watching hi. this is the man that's going to check your eyes grandma.

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let's get over to the cme and check in with rick santelli for the santelli exchanges >> gorod morning, carl all yields are definitely under the microscope there's a lot of anomalies the pit is keeping a close eye as well. when i look at the differential between two years, 340 basis points, tense versus tense how to get these closer

together, what long term implications for capital are, long term implications trying to procure dollars to go on the good side of the diverging trade, the u.s. economy. even with slight deterioration, everything is a spread relationship the divergence between us and china, we have gone down a bit, they seem to sometimes go down more as jay powell talked about last night, many have commented and most of my viewers, cnbc viewers understand there is a bit of a slowdown going on, and it has been reflected in yields what do they tell us now, what may they tell us where they'll be in the future let's go to the white board. ten year note chart starting beginning of may, ending basically today, and what's interesting about the chart, four things. first of all, the first high of the year in may, 3.11, remains kregs. we have gone through the process, everybody can clearly see what happened when we took

that out there aren't many gimmy trades, but this was one early november, 3.23 level here may be the most important of all see the dip in the middle? the fact that they're so close together, just a slcholarship - slippage likely you go somewhere in the middle of this action, maybe into the 2.80s the other side of the equation might be more interesting. should we create a sideways area and hold this 3.08 level remember, as we start to go back up, the only thing bigger than double tops in treasuries is the notion of taking them out. taking them out would have a nice measurement to stack on which means in the high 350s could be next. back to you.

>> taking us back to school. thanks, rick. up next, why investors are watching the duelling trade wars let's go in for a look.

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[ready forngs ] christmas? no, it's way too early to be annoyed by christmas. you just need some holiday spirit! that's it! this feud just went mobile. with xfinity xfi you get the best wifi experience at home. and with xfinity mobile, you get the best wireless coverage for your phone. ...you're about to find out! you don't even know where i live... hello! see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. a warning on the fed and stocks, why the central bank needs to hit the brakes on rates. plus, big apple defender weighing in on the stock

katie hue bertie on the selloff. and new reporting on what a new hedge fund manager is doing in that name as well. and the latest on facebook, shares lower after "new york times" publishes a story on efforts to hide the extent of the problem. we'll tell you more. about ten minutes away or so >> thanks very much. investors are watching the white house for clarity on trade policy and who has the upper hand in the white house at any given moment more hawkish trade voices like navar navarro or dovish voices like larry kudlow oo eamon javers has more. >> reporter: the chinese sent a letter to the administration responding to some of the questions. they're not releasing the content of the letter. it is not seen as a major offer in terms of concessions but seen as encouraging sign of dialogue

between the chinese and the u.s. side, all of that coming at a time when the top economic officials here are fighting publicly, feuding publicly it all began with peter navarro's speech last week where he suggested that wall street officials were intervening in negotiations between the u.s. and chinese and shouldn't do it. he expressed the desire for them to butt out. here's what navarro said. >> wall street is involved, continues to insinuate itself into these negotiations, there will be a stench, a stench around any deal that's consummated. i would urge these unpaid foreign agents to stand down on this issue >> reporter: strong language, saying unpaid foreign agents of wall street could generate a stench in terms of a deal. that was met by rebuke from larry kudlow, national economic council director here on cnbc earlier in the week. here is what he said

>> he was not speaking for the president nor was he speaking for the administration his remarks were way off base. they were not authorized by anybody. i actually think he did the president a great disservice >> reporter: carl, larry kudlow saying in his view, he wants to have both viewpoints expressed. i do think at least for the time being larry kudlow has the upper

hand at the white house. >> eamon, your reporting has been a focus of interest for a lot of investors lately. eamon jarvis fvers, as investors decide who is in charge of trade policy at the white house and what it means for the markets. with us is a staff writer for the "atlantic" calling navarro one of the most important trade advisers guys, thanks for joining us. good to see you both annie, you got kudlow saying he's done a disservice to the president and cohn, has navarro been boxed in and would you expect that to last? >> well this isn't the first time that this has happened. navarro's trade views are close to the president's own trade views. and think that's the reason that he's managed to stick it out for so long. is frankly the kudlows, the

cohns and the mnuchins of the world don't share the same view that trump does. so you have warring going on in the white house that has never resolved it's been confuse together foreign partners and confusing and upsetting to ceos. i don't think we know who is winning here. >> doug, does it have to be an either/or scenario in terms of these two different camps of thoughts around trade in the trump administration globalization is a relatively new concept. so this idea that we're challenging it, sort of repurposing it, taking a look at these trade pacts and can you make the same argument for not just the u.s., but the uk, it's uncharted territory. >> i think it's an interesting observation. think you're right, there's this rethinking of the nature of our trade agreements, for example i think there was a lot of

agreement that china was a problem. the question was what's the best strategy and the administration has embarked on a strategy the second thing is it's not unusual to have in an administration different views on policy issues what is unusual is how public this is. and how the president is comfortable at some level in having public disagreements among his voices among trade in particular and he doesn't settle it in most administrations, this would be private, it would be settled. this is where we are, this is the messaging, stay on message or don't talk. here i think the actually likes the idea that he's got these two different visions out there that keeps the chinese off-guard and he doesn't know what kpo to exp. >> although annie, some trading desks are theorizing that going into the g20, not long from now, that the president can't afford to have the market essentially flat on its back from a negotiating stance.

so it's natural to let the doves speak going into that and have the market as a tailwind, does that make sense to you >> it does make sense. but i'm not sure that anything that makes sense, some sense of grand strategy or tactics has ever really come from this administration it's been unclear what they want from these negotiations. it's been unclear how they're "mad men" strategy of keeping people on the back foot and confusing them is going to play out. i'm not sure we have a lot of certainty going in i think that yes, there's some theory that that, that that could work out but i think it's really -- we're really not sure in any given negotiation, what it is that this administration going to do. >> doug, in what way do the risks shift to this -- if it's not a straetegy, these tactics y the trump administration of having a couple different people saying a couple different things now we don't have a completely

republican-controlled congress and the market maybe has shown some signs of the bull market flagging how do you think that factors into the impact of these warring factions >> i think it's a bad thing to have the world's two largest economies engaged in an economic war. so that's, that's a genuine and large risk that everyone is trying it evaluate every day the administration's approach. to leave the chinese confused in their negotiations, leaves the markets confused they hamper their ability to have the market understand the strategy and the desired outcome by being so unclear if indeed they have a strategy or a desired outcome. take annie's point on that with the democrats in the house, i think they have a real problem. i mean they still don't have a signature on the new nafta the usmca. they need canada and mexico to sign they haven't yet and once they get those

signatures, it's not obviously ratified they're far from done on any deal. >> annie, doug this was helpful -- i think we'll have to wait for more information down the road. annie lowry and doug solsekan. thanks we're getting word that theresa may is going to speak at noon eastern time. since we got that announcement, market has been able to repair some damage as it tries to sniff out something. we don't know what she'll discuss, the dow is down 44, the s&p has gone green

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watching 10 downing in london the prime minister expected to make a statement any moment. wilfred frost is back at post 9, after what was an eventful afternoon yesterday. >> it was. i think this is three sort of areas, people speculating she could have called this press conference for the first one is more defiance, more of the same. the other is she's decided to preempt a vote of confidence and the she's going to stand down. the pound is down 1.8% as it's been for most of the morning something in between where she's come up with something to try to play indicate the nay sayers that allow her to say i'm going

to stick to my plan, but tweak it around the edges. a lot of speculation, people don't know why she's called this special press conference. >> citi arguing whatever happens, it's no going to happen based on the draft we got yesterday. >> you got poll on the draft yesterday, no one liked it. >> make yourself comfortable you're going to be here for a little while, i imagine. let's get over to wopner and the half >> i'm scott wopner is the fed on course to kill the bull market does jay powell still have your back investors are watching closely, now one big-name billionaire warning our central bank to back down it's 12:00 noon and this is the halftime report. >> is risk versus reward, fed, breks it, big tech concerns. ray dalio weighing in. >> i think the upside position is not as strong and relative to the risk. >> we're hitting the home front. as kb home