it is 5:00 a.m. here at cnbc global headquarters. here is your top five at 5 breaking news, nissan stock plunging reports its chairman carlos ghosn will be arrested in japan. the latest on the fast-moving story ahead. opec is cutting it and oil is falling the saudi crown prince did order the death of saudi reporter jamal khashoggi facebook is at war and british prime minister

theresa may this morning backlash over its brexit plan. it is monday, november 19th. worldwide exchange begins right now. ♪ ♪ good morning and welcome from wherever in the world you are watching i am brian sullivan. it is a very, very busy monday morning. we'll have more on the developing story from nissan a holiday shortened week here in the states markets are closed obviously on thursday for our thanksgiving holiday. that could bring more volatility in the beginning part of this week we are not seeing that right now. dow futures, little change to slightly higher. it is very early shortened week sometimes volatility does move we're going to have much more on this and the markets coming up first, big breaking news out of japan. one of the world's most well known executives carlos ghosn is expected to be arrested in

tokyo. it is for allegedly violating financial reporting regulations. nissan says it has been investigating ghosn for months for allegedly using company money for personal use you can see that shares of nissan and renault are both sharply lower overseas nissan is down 11% renault less hard hit, down 1% let's bring in nancy hungerford. all of this kind of happening very rapidly this morning or tonight in japan what do we know right now? >> reporter: well, the big thing we're watching out for now is going to be the reporting from them tonight reports that we have so far suggesting that the initial arrest that we heard in the report that said ghosn was going to be reported for underreporting salary. then more reports coming through that ghosn used company money

for personal use and committed several other serious acts the question will be what are those other serious acts again, we are waiting for confirmation of these reports. this is critical it's reporting after the japanese market closed.mitsubiss we're going to see steep losses perhaps when markets reopen in japan tomorrow all of this is dependent on what we learned from additional media briefings and from the companies themselves, all of which we have reached out to for comment but based on the reports now, yes, we are hearing that the investigation has been going on for several months, which i think will come to the surprise of many. i spoke to a few analysts based in london. they haven't heard anything on this they weren't aware they were responding to what was taking place on the wires. so certainly i think this will be a big shock to many brian, as you pointed out, he is a titan of industry in so many

words. very well known. carlos ghosn, i used to do many of these auto shows across europe and asia. carlos ghosn is revered across the industry this comes as a huge surprise from investors we have to wait for a response from carlos ghosn as well. >> very well known face and interview to cnbc viewers as well nancy hungerford bringing us that breaking news thank you very much. we'll get more on this story as it develops throughout the morning. let's turn back to the broader market and oil because oil once again becoming a story but for a different reason than it's been the last couple of weeks oil is now rising. markets expecting opec to try to push for output cuts at its upcoming meeting in vienna in early december take a look at bitcoin bitcoin may be the one number to focus on today bitcoin is down 5% it is inching back closer to

5,000. bitcoin was above 8,000 on its way to 20,000 in early december. my, how things have changed in just a year. two big things getting most of the attention around the markets and your money lately. the fed raising rates and the tariff and trade fight your next guest says there is a third thing that you need to focus on that may actually matter more than those previous two. joining us now, matt maley, equity strategist at miller tayback. matt, why do you think europe is such a big deal? >> well, it's -- you know, remember at the beginning of the year everybody was talking about how synchronized global growth in the best area was europe. we all know that that growth has slowed considerably over the last six to nine months or even longer and you see it in some of the data you look at whether it be the zew survey on economic -- future economic growth. it's on the same economic growth the past three times

you see german gdp dipping back down to negative territory and of course all of this is taking -- and looking on the technical side of things, you look at germany's dax and the european stocks 600 index has broken below the crisis in 2011. this is all happening at a time when we have italy and the eu clashing together and everything you hear, it doesn't look like they're going to get any closer to any kind of resolution. so we have that. we have the european bank stocks down in fair market territory. this is something the people should be -- those other two issues are very, very important. >> are you surprised with what's happening in italy and the budget and brexit is not impacting our markets more than it already has >> well, you know, we are seeing the correction people are focusing on this thing with the fed which i think is the right thing to do and of course the chinese trade tariff especially with the g20 meeting

coming up. yeah, to a degree i guess i'm surprised as having more of an impact if you start to see the yields in europe, especially italy starting to grow, you see cds spreads that we started to see widen out. sorry, the cds prices start to rise if we see that happen further, it will become more of a problem. >> okay. what would be the up side then what could happen in europe that all of a sudden you're not going to give the all clear, but at least you'd say maybe the worst is behind us >> well, if we start to see italy making a little bit of a concessions on their budget and what they're looking for some of their assumptions on growth it's not there i don't see the eu or the ec trying to make the kind of concessions that they want and it's just -- we're going to have to see italy make the move first, at least is my opinion. >> italy -- >> if that happens, that can help things out. >> if italy is the key to our markets, that's something.

matt maley, thank you. happy thanksgiving. >> you, too. facebook is at war that is how ceo mark zuckerberg is describing what is happening right now inside of his company. let's get to frank holland with more on the big story. frank? >> reporter: mark zuckerberg has adopted a different management style. it's driven away several executives amid a drop in employee morale including the co-founders of instagram and what's app last week they detailed missteps and action by facebook following a series of scandals during a q&a session with employees zuckerberg called that bs. he warned employees who speak to the media will be fired. even sharyl sandberg has not been spared. the general reports earlier this year he blamed the coo for the

fallout saying she should have been more on top of cracking down on objectionable content. sanberg said she was rattled by that last week zuckerberg told reporters sanberg continues to be a very important partner to me brian, back over to you. >> company based on sharing information, apparently not happy with employees sharing information with us. frank, thank you >> thank you. staying with technology. apple ceo tim cook says get ready for more regulation. here's what he said in an interview that aired on axios on hbo last night. >> i am not a big fan of regulati regulation i'm a big believer in the free market, but we have to admit when the free market is not working. it hasn't worked here. i think it's inevitable there will be some regulation. >> cook also defended apple's decision to take billions of google to make safari the

default serve engine on the iphone. >> one, i think their search engine is the best, and that's very important, but, two, look at what we've done with the controls that we've built in so we have private web browsing, right? we have an intelligent tracker prevention and so what we've tried to do is come up with ways to help our users through their course of the day. it is not a perfect thing. i'd be the very first person to say that but it goes a long way to helping. >> now cook also talked about a host of other topics including augmented reality and cook saying ar as it is known, august meanted reality, is going to, quote, change everything. we are just getting started on what is a very busy monday. up next, facing the fallout. the big brexit battle still center stage in the u.k. what's at steak and what it

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up about 28 points on the dow industrial average oil prices, they are moving higher there are reports that opec and russia together, so called ropec could eye production cuts. getting headlines out of iran. iranian president saying u.s. sanctions have failed to reduce iran's oil exports to zero the price of crude oil up half a percent. brent crude up fractionally. staying with news out of the middle east, new fallout this morning. the cia says that crown prince mohamed bin salman did order the death of journalist jamal khashoggi. let's get to hadley gamble who is live in riyadh with more. hadley. >> reporter: good morning, brian be this is a story that has shaken the saudi government to its core, and it will be very interesting to see in the next 24 to 48 hours what response if any they make to the cia report that nbc has now been cleared.

the big question, of course, is going to be whether or not there was a real smoking gun let's listen in to what president trump had to say over the weekend. >> they haven't assessed anything yet it's too early that was a premature report, but that's possible we're going to see. we're going to have a report on tuesday and it will be very complete in the meantime, we're doing things to some people that we know for a fact were involved and we're being tough on a lot of people. >> reporter: now last week, of course, we saw the u.s. government sanctioning 17 saudi individuals that they say were directly involved in the murder of mr. khashoggi and we saw the saudi government putting five people under potentially the death penalty as well. that's a trial that has yet to play out the -- a lot of questions of what happens next. we're moments away from hearing

what happens to king salman. he'll be speaking at the council. it's the first time we've heard from the king. >> hadley gamble live in riyadh. thanks turning to yet another big story away from exiting the european union the pressure is mounting on british teach jeer joining us is dean collins you are watching this for your clients from afinancial perspective. what are thelikely scenarios and what are the likely outcomes of those scenarios >> well, it's still many scenarios that could unfold over the next couple of weeks i think the immediate concerns are whether there's going to be a leadership challenge within the conservative party

that threat is clearly hanging over mrs. may at the moment. that's a level of uncertainty that the markets are not appreciative of. our view is that even if there were to be a leadership challenge, that mrs. may would be the eventual win of of that and that she will agree the withdrawal agreement beyond that the bigger question is can mps in the u.k. agree on this and vote it through parliament our view is that is going to be quite a challenging process but ultimately when faced with the prospect of this deal or no deal, our expectation is that mps will eventually side with this agreement. >> what would that mean for the markets there and here do you think? rchltsz i think markets would

welcome the uncertainty a withdrawal would have. the immediate impact would be in the fx markets sterling has been held up relatively well in fairness especially given some of the news we've had over the past week or so but our expectation is we would expect the pound to move higher once we got some clarity on that agreement. my concern is though that in the short term that if anything the clarity's going to become less, especially as we go through the parliamentary process. so i would actually expect that we could see some weakness in sterling before we got that recovery. >> should we expect more volatility either way in the next 130 days or so? >> i think more volatility is to be expected across all seat class asset classes. it's not just the u.k. that's going through a lot of political

noise at the moment as i'm sure your viewers are aware it's been our expectation for some time that volatility will be rising and investors should be prepared for that that's what we're doing. >> dean turner, ubs wealth management thank you very much. appreciate it. all right. up next, a big break through a new drug for one of america's most rampant allergies could be a total game changer. full details ahead listen up. if anybody has a peanut allergy. plus, more on the nissan breaking story, shares down 10%. the chair carlos ghosn used company money for personal use and he is peedexct to be in japan all when we come back.

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shoppers spends more than $6.5 billion online last year on just one day, so called cyber monday some of that money going to online subscriptions you know the model, where you sign up for a monthly box or service. it is booming. some businesses are under fire with the feds now cracking down. andrea day with our investigation locked in.

>> hi. i'm morgan herman -- >> he's the founder and ceo of adore me we first heard about the company on cnbc's power pitch nearly four years ago a segment where entrepreneurs get to pitch their models to business experts. >> i am not a fan of customers going to a website and being defaulted to a subscription model so unfortunately i'm out. >> subscription ecommerce where you're charged every month to receive products are booming according to a recent study by mckenzie, the market growing more than 00% from 2013 to 2017. the top companies raking in more than 5.5 billion just last year, but when it comes to the plans, consumers can lose out big names like apple and eharmony, both recently accused of automatically renewing subscriptions without consumer

consent. apple hit with a class action lawsuit. it agreed to settle for $16.5 million. eharmony also settling for more than 2 million both deny any wrongdoing other companies may soon be under fire. >> we continue to monitor this area for fraud because it's an area that's ripe with problems right now. >> james kohm is the assistant director of enforcement at the federal trade commission's bureau of consumer protection. what do you think we could be talking about financially? >> well, we certainly are talking about oo $00 billion >> nearly three years after cnbc's vision, adore me had to pay back customers >> they had a business where if you didn't buy each and every month, you could bank the amount that you weren't spending. what they failed to tell

consumers is if you canceled the service, you lost all of that money that was essentially in your bank. there was no disclosure of that. >> and that's not all. >> they left them on hold for long amounts of time. >> i have customers that call in, they were angry. they're like, i want out of my subscription now. >> gabrielle is a former customer service rep shanty hernandez was a supervisor >> they were cursing and going crazy. >> they had no clue they were signing up for a charge. customers had to uncheck the box to opt out when she told management that customers were begging to cancel. >> it was like try to keep them. however you could. >> cassy la forest was one of

those customers calling in after she ordered a bra and underwear set. >> i wasted $25. i won't shop there again it wasn't comfortable, it wasn't soft at least that's what i thought. >> until her card got declined and realized that adore me had been charging hundreds of dollars and keeping her money as store credit. >> you had no idea you were signing up for a membership? >> none. >> after last year's order, the fcc says adore me cleaned up its act. it did not admit or deny any wrongdoing. >> they did get the money back they gave it to us in the form of a judgment in court. >> the company did not respond to our repeated requests for comment. we spoke to some leaders in the industry and they say communication is key, making sure customers know exactly what they are signing up for. that's according to the federal trade commission they also add there is still work to be done here and businesses need to make sure

that the deal, whatever it is is clear to you 6r7b8g9s sti >> still ahead, the docket coach condoleezza. they're searching for a new head coach. give you that and this morning's top stories when we come back.

breaking news. nissan says its chairman carlos

ghosn has been arrested after using company money for personal use. nissan stock moving in a big way, sharply lower we're going to have the very latest on this breaking story straight ahead. oil prices moving higher this morning it has to do with opec we'll tell you more. bitcoin bust, the cryptocurrency just hitting another tough milestone. all the details as "worldwide exchange" rolls on right now ♪ ♪ welcome back in. thank you for being with us here on cnbc. i am brian sullivan. thanks for joining us. we kick things off with that big breaking story out of japan. one of the world's most well known executives, nissan motors carlos ghosn is in police custody for alleged financial misdeeds he's accused of using company money for personal use nissan is expected now to fire carlos ghosn

shares of nissan and renault are moving sharply lower the market is closed nissan is down 10% renault down nearly 13%. let's bring in nancy hungerford. we spoke to you at the top of the hour we didn't know he was in police custody but it sounds like carlos ghosn is with the police right now in japan >> he has been arrested. the initial reports said he would be arrested for what are believed to be an underreporting of the salary were underway. we now have more information from nissan that suggests not just the underreporting of the salary in fact, i want to bring up some of the lines from the statement that came from nissan just in the last hour. it is rather remarkable i should say. over many years, in fact, fed chairman carlos ghosn did report

amounts that were less than the actual amount in order to reduce the disclosed amount of carlos ghosn's compensation that's the payment issue now what happens here is also in regards to ghosn, numerous other significant acts of misconduct have been uncovered. personal use of company assets and this will be critical for many investors going forward we did hear already from nissan, too, saying that its own ceo has proposed that the nissan board of directors promptly remove him as chairman and representative director if you consider the other posts that carlos ghosn holds at renaultmitsubishi, that's why we're seeing the stock reaction in renault and mitsubishi renault shares are off 12.4% the content of this nissan statement will catch many by surprise, not just because it talks about the compensation

allegations going back for many years but also this issue of the significant acts of misconduct have been uncovered. i think many want to know what those acts are of course given that the yearly reports that mr. ghosn is in custody, we have to hear his response this story is unfolding hour by hour make no mistake about it for someone who has been seen as a titan in the industry, this is a huge shock. >> we'll have to wait to see what happens when the japanese market opens much later on nancy hungerford joins us. thank you very much. let's get a check on this morning's other top headlines outside of the world of money and business phillip mena in new york. >> good morning. california firefighters are still struggling to get a massive fire under control the camp fire which has 77 reported deaths and has covered more than 150,000 acres of land is just 65% contained.

authorities say more than 1,000 people remain unaccounted for as that death toll continues to rise major developments expected in the russia investigation this week president trump's legal team says he will submit his written answers to questions from special counsel robert mueller by thanksgiving, however, in an interview with fox news on sunday, the president seemed to rule out a possible sitdown interview with mueller and he's also refusing to answer any questions relating to obstruction of justice. joe biden, he is welcoming a new addition to his family the delaware humane association showed these photos of the former vice president with his new pup major. the humane association says biden reached out immediately after they posted to facebook asking for help. brian, back to you. >> oh, good puppy. always good to have a puppy story on a monday morning. phillip, thank you. >> that's right. let's turn back to the

market and your money. stock futures are mildly higher. holiday shortened week if you haven't done your shopping, turkey, that kind of thing, go do it. dow futures up two oil once again a big story as well not for the reason it's been the last couple of weeks oil rising just a bit. opec numbers now expected to push for output cuts at the upcoming meeting in vienna want to take a look at bitcoin that may be the big one number you have to focus on bitcoin down another 5%. bitcoin was on its way to 20,000 well, bitcoin right now at 5,265. wow. that has been a slide. all right. let's bring in now david katz, chief investment officer at matrix do not worry, i will not ask you about bitcoin but i will ask you about a certain kind of money story, and that is the financial stocks you believe that a guy named

warren buffet, mr. etty well known guy. >> smart guy. >> done okay i think he's got a future. >> that he is sending a very loud message around financials why and what >> we think so last week we filed his changes in the last quarter and he put tens of billions of dollars into the financial group. a number of new buys like goldman sachs and travelers, added a lot to bank of america he's got over 100, $150 billion in financials. this is the smartest guy in the investment world in terms of financials he's making a significant foray into the group because he thinks it's one of the cheaper groups with very good prospects over the next three to 12 months. jamie dimon has said the same thing. two years ago how smart it was he bought it we think buffet is doing the same thing. >> it's hard to disagree with warren buffet. is there anything you would

challenge in his assumptions >> we agree entirely the loan portfolio are very strong asset quality is very stroong. they're better by a rising interest rate environment. basically, everything is going well for them except the stock prices that's an opportunity for investors. >> we'd like him across the wall. >> you like wells, wells fargo, because they've had some issues. do you think those issues -- i mean checking accounts and that kind of thing. >> horrible things >> the problems are being resolved and baked in. over the next year they're going to have better trends and the stock is one of the cheaper in the group. it sells at a premium to the group. the other one has gotten massacred. goldman sachs, going to be a cost to the overseas scandal book value over eight times

earnings >> goldman sachs has probably one one of the most under covered stories in the markets ugly, ugly stock chart and it matters for the dow. price weighted index goldman is the fourth highest weighted stock in that index but you're a buyer here. >> we definitely are a buyer you rarely get to buy a great investment bank at book value. these are very, smart guys very profitable. they can pay off any fines or penalties. >> david katz, matrix asset advisors jpmorgan, wells fargo and goldman sachs among others have a great thanksgiving. >> thanks, you, too. let's find out what else you are going to be talking about around the water cooler? frank holland still has a look at the stories that are trending. >> we have one here. you don't come over and chat when we're talking.

>> no. >> on this show, it's the coffee maker. >> i'm not a coffee drinker but you're right about that. >> i do drink an energy drink. coffee doesn't work. >> moving on it was a magical weekend at the box office "fantastic beasts" took the top spot at the box office the harry potter spinoff made 262 million here and 191 million globally i did some more math according to "forbes" these movies have made more than $2.6 billion in the last 17 years i've never seen one. >> never read the book, never seen one. >> a lot of adults i know have read the books. >> really? >> yeah, i have not. i have been on the harry potter rides at universal. >> have you? >> i'm a "game of thrones" guy

this doesn't work for me. >> you want dragons. >> always. former new york city mayor michael bloomberg is giving $1.8 billion to johns hopkins university the money will be used for scholarships and grants. pretty cool here still doesn't take the cake. harvard, 39.2 billion. -- rumors surfacing yesterday the browns wanted to interview, get this, former secretary of state condoleezza rice for the job. yeah the team later issued a statement squashing that rumor but did give a nod to rice's loyalty to the browns. she weighed in, i'm not ready to coach but i would like to call a play or two if the browns need

ideas. she hopes the nfl would do more to bring women into coaching positions. >> they need her help, leadership. >> get involved. call a play. frank holland, thank you. in the sports world, it was an old-fashioned nfc north clash on sunday night football last night. the bears of chicago hosting those vikings from minnesota and they took a commanding lead with a field goal the bears did hold on to win 25-20. it was their fourth straight victory. paddling the boat. that is the longest winning streak for the bears, by the way, in six years. coming up, a checkup on the health care sector where you may be able to find an opportunity a check on your markets. fureartuing tus e rndown a little bit lower we're back right after this. but everywhere else...

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♪ ♪ (buzzing) gather new insights, leave your data protected on-site, and put it all to work with ai. the ibm cloud. the cloud for smarter business. the health care sector is up more than 11% since january. the question isn't what has happened, it's what will happen. dom chu here with what may be next for health care dom. >> as we talk about health care overall, brian, it's important

to keep an eye on the idea of valuations for the entire market have resized given the moves lower that we've seen. one of the things that we've seen is the overall valuation from a price to earnings perspective for many of the sectors in the s&p 500 with health care standing up because if you look at the s&p 500's overall forward price to earnings ratio, that is to say how much you pay in stock price today for every dollar of anticipated earnings next year, we're trading just shy of around 16 times that mark again, a revaluation there the health care sectors forward price to earnings ratio, it's in line with the s&p 500 now. not as growthy as some parts of the market, but still trading a valuation that's in line with the market it's lower than it has been in the past one other way to look at it for comparison sake is to take a look at how it compares to, say, technology, consumer staples, some other ones. consumer staples has been a hot

sector it trades at a premium 18 to 19% forward earnings let's put it altogether. health care as a sector compared to the overall market compared to a hot sector for the time being like consumer staples, and as you can see here, the yellow and blue lines, which represent the s&p and the health care sector trading at a significant discount from a price to earnings perspective on a forward basis than even consumer staples, a typical value sector. brian, maybe it stands to reason that health care could be a value play going forward if investors like what they see. >> it has been in some ways a winner when you look at it though, dom, let's not forget you used to run money so you can comment on stuff like this when you look at it, what do you see? >> i see the s&p 500 health care sector being one of those places to look at if you are trying to find specific pockets of opportunity. it's not like playing biotechnology. it's not like investing in biotechs etf, the ticker idb or

even a spdr s&p. that ticker xdi. many had growth year aspects because the smaller companies are more represented in the indices. with the s&p 500 health care sector we're talking about very large names from the merk and pfizer they still play a huge out sized dividend for some of the companies that are out there maybe it stands to reason that you could find some of these value characteristics and get income characteristics at the same time. >> great stuff as always, dom chu, thank you very much. let's find out what is coming up on "squawk box." becky, we have this carlos ghosn story that came out of nowhere. >> i know. >> this is a big story. >> huge story. we can't get our arms around what is hang it plays into what we're going to be talking about. three big stories we're

watching first it's going to be the trade war and this plays into a little bit of the carlos ghosn story. we'll be interviewing the ceo of t.e. connectivity. that's supplier of transportation sector. this is a company that is a big supplier when it comes to all of these automakers terence curt continin is there. they have 30% of the sensor market share just in the united states we're going to talk to him about what he sees about trade and tariffs in particular, brian it's a really big story now. they've been in china, as i mentioned, for 30 years. 1/3 in china, 1/3 in europe, 1/3 in the united states we keep trying to figure out what all of these tariffs are meaning, where they're showing up, if they're going to see more of this and here in the united states and elsewhere he can give us a good read on that another big story we are watching is the jobs picture, of course huge impact on what that means for the fed and whether the fed is going to have to raise rates

additionally because of higher work prices that they're paying or higher prices they're passion to get employees to do the job we have the ceo of ak censure north america, julie sweet, that's going to be talking with us they work with 93 of the fortune 100 companies and 70% of the fortune 500 companies. she has a really good idea of what those ceos in the fortune 500 are really thinking about now. what they think of in terms of the jobs picture we'll talk to her about that finally, we want to talk about the saudi fallout, what the impact will be on the oil markets and beyond we have colonel jack jacobs who will talk to us about what is happening with that situation and how that's likely to impact markets today, too brian, a lot of ground that we have to cover and it's coming up in a few minutes. >> we'll look forward to it. >> good to see you again, we missed you. >> you know, if four inches of snow wouldn't shut down every airport in the area for 24

hours, i could have made it back >> well, we've been missing you so it's good to see you. >> that's very nice. you made my day. appreciate it. up next, behind the crude oil collapse will the pull back in crude oil mean we're set for a slowdown or just ab opec thing. and a startling stat on amazon that's your morning rbi. we'll be right back.

all right. welcome back and good morning. dow futures not giving you a lot of help. reminder, it is a holiday shortened week as if i didn't have to tell you, thanksgiving is on thursday, but i just told you. that can bring more volatility earlier in the week. it is always great to have jack avalon on "worldwide exchange. he is cio at crescent wealth advisors >> good morning, brian >> happy thanksgiving. >> thank you, you, too. >> many people out there are

arguing, including the president by the way, that the federal reserve may be going too far too fast you're in the camp that think interest rates are too low how come >> too low this has been pretty much a decade of financial repression the strategy that the central banks worldwide have employed to make risk averse assets, the safe assets, unattractive. could prompt, could push people into risk taking low and behold, it worked. the problem is now we need to normalize. the fed has reversed course starting in 2016 and they're well on their way to tightening. european central bank announced it will end its quantitative easing program in december we'll likely keep interest rates at zero until the middle of next year we haven't heard from the bank of japan but we expect that that program will end shortly so without that massive stock and bond buying that the central banks have been doing,

eventually this water will seek back its level and go back to interest rates back to fair value. >> what would that mean for equities jack at wood said we need to keep going what happens to equities >> right so the equity market has really been what i'll call the only child of the asset allocation family for the last ten years largely because, you know, the bond market has been pretty much disadvantaged. should that bond market come back to fair value and have equal footing with other asset classes, that will likely put pressure on equities as investors flow back toward, you know, the -- more of the lower risk assets. i mean, you know, it's not long ago the two year treasury was essentially there are areas in

the treasury market where investors can get reasonable returns for a short period of time. >> is reasonable the new good? >> yeah, unfortunately it is i think one of the things we have to reconcile is the average return on equities in an environment where, you know, interest rates are 8, 9, 10% will likely be, you know, 12, 13, 14% but when fair value in the ten year treasury's 4 or 4.5, it's probably -- we have to pencil in 6 to 7% for equities moving forward, you know, not historically that 9 or 10% that we've enjoyed. unfortunately, we still have to get from where we are to that and i think 2019 could suffer headwinds. i'm not suggesting the market has to drop 30%, i'm just thinking as money migrates from

equities towards bonds, that will put pressure on equities. we'll have to see how the buy backs work without cheap financing, a lot of the buy backs that we've enjoyed for the last several years will likely kind of push downward that's what we're watching right now. >> and buy backs have been a big part, at least according to some people jaff avalon, cresset wealth management happy thanksgiving to you and your family. >> thanks, you, too, brian. >> take care. let's wrap it up as always with your random but interesting. 11 years ago today amazon unveiled its kindle ereader. if you remember the kindle sold out in less than six hours keep in mind it cost $400 back then which inflation adjusted is about 500 in today 's dollars today's cost $130. a 75% drop in price from 11

years ago. technology truly random and truly interesting. that's it for "worldwide exchange." "squawk box" is next have a great monday. this isn't just any moving day.

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good morning breaking news out of asia. veteran auto exec carlos ghosn has beenarrested for financial violations nissan says he used company money for personal use. tech trouble, apple cutting iphone production and causing turmoil for its suppliers. plus, locked in. a special cnbc investigation on the boom in subscription services and why consumers could be left holding the bag. it is monday, november 19th, 2018, and "squawk box" begins right now. ♪ ♪

good morning, everybody. welcome to "squawk box" here on cnbc live from the nasdaq market center in times square the u.s. equity futures, things are relatively flat. dow futures down by just over a point. s&p futures up by less than a point and nasdaq up by less than 14 points. dow was down by 2.2% nasdaq off by 2 poip upon 1% we're going to continue to take a look at what's been happening. also check out what's been happening in the treasury market right now. ten year yielding 3.085% as those yields came under pressure last week on thoughts that maybe the fed wouldn't raise rates as many times as had been anticipated. after we heard from the vice chairman >> okay. we have some breaking news out of the auto industry this