it's 5:00 a.m., here's your top five at 5:00 apple shares down again after president trump threatens to slap a tariff on all chinese imports. call it the dow 32 one of the dow 30 is breaking itself into three pieces, think elevators, air conditions and helicopters. a big warning for your money. jim cramer says wall street could rally another 4% but beware if it does. we'll explain. oil alert. crude oil down again, could opec be ready to cut production and the crypto crumble continues. bitcoin lower again. it's all happening on this tuesday, november 27th

"worldwide exchange" begins right now. ♪ perfect song you're up then down. that's the way the markets have been good morning welcome from whereve world you are watching i'm brian sullivan dow futures down about 42. given the size of the dow, we'll call that basically flat this comes off yesterday's semi relief rally. the dow is down 0.3% on the year with dividends it's higher absolute number just under that line watch the markets again today. apple shares are down this morning. all this comes after president trump threatened to slam a 10% tariff on all iphones imported from china

president trump, tim cook on line one let's get more on this story with tracie potts live for you in washington, d.c >> you mentioned those apple shares the iphone could cost more based on this latest tariff threat by president trump. he tells the "wall street journal" that not only does he not expect to be able to work something out on the current tariffs, the 25% that kicks in in january on 2$200 billion worh of chinese goods, but now he's saying a third round of tariffs is possible. he doesn't know if that would be at the 10% or 25% level but it would affect 2$267 billion worth of goods the president not expressing confidence that he'll be able to make a deal with china when they meet on the sidelines of the g20 summit in argentina later this week the hope was that they would avoid the tariffs kicking in and tamp down this trade war president trump saying maybe

we'll make a deal, maybe we won't. you talked about the apple stocks being down. the impact of this has the u.s. business community on edge many companies warning that prices may go up inflation is also a concern with the fed expected to raise rates in december. president trump unsure that there's a deal to be had here. brian? >> wow, tracie potts in d.c. with the big story not only politically but for the markets as well. thank you. apple's slide in the pre market is knocking it out of the position as the world's most valuable company in extended hours trading microsoft has a larger market cap than apple microsoft, welcome back your rbi will talk about how much apple has lost. let's bring in kai sasaki. it seems like every time you are on we have this volatility last time you were here dow

futures were down. not down that much right now you just heard that report how big of a worry is the trade tariff spat to wells fargo and your clients >> to our clients it's causing a lot of buzz, absolutely. in fact we start to communicate to our clients to look at five key risks around the markets generally. one of them happens to be trade. >> where does that fall on the ranking? if it's not the most important thing or the thing they worry about the most, what is? >> it's probably very prominent. it's most prominent because it overlays into the second aspect around concerns around chinese growth, which then also overlaps with slowing global growth concerns as well all of these things are not mutually exclusive they coincide. the tariff situation now, we had another headline yesterday where the white house was communicating that they were going to step up the tariffs from 10% to 25% on a 2$200 billion worth of goods

this is just another incremental antidote to that that may cause investor concern but these are quantifiable metrics. once you bake those in we would expect that investor assumptions and expectations would normalize and that could take out the edge on volatility. >> we all would love to know what other person is thinking and worried about. call-in shows, that's why they exist. maybe we'll have our own version of a call-in show now. when your clients call in to you, what are they worried about? >> what are they not worried about. >> your job is to be paid to worry for them >> that's right. our message to our clients and investors in general has been very consistent. we are late in a market cycle but not at the end of the market cycle. we think there's strong fundamental tailwinds. we believe consumer confidence, business confidence is supportive we believe with the pull back we've seen in the markets that

you have a better balance between risk and reward. however it is the end of easy. that's the thing we're getting out to clients clients are concerned about trade and tariffs, slow global growth, oil prices, technology sector and what implications that has, and the federal reserve as your colleague spoke about. >> our other colleague and friend jim cramer would agree with you about the end of easy yesterday kramer making comments about how we could pop before maybe we drop again. >> trading history often accurate but far from perfect says this move up might not be finished we could rally 3% or 4% before the bounce exhausts itself already it has gotten less oversold after today >> what do you think about that? another bounce perhaps the market could be difficult going forward. >> i believe jim also referred that there's no reason for that bounce either. i believe he's --

>> he was kind of disgusted about the market yesterday >> we don't believe we're approaching a bear market. the volatility and the correction we see we believe is a return to normalcy we like to remind clients when you see a correction that we saw recently that bottoming is a process. we expect continued volatility over the coming weeks, possibly a few months as the investment community starts to calibrate where their expectations are so they're seeing slower growth and the range that we're seeing in the market prices is also -- >> jim will argue there's a market of stocks and then stocks in a market. he will say there's a bull market somewhere all the time. for years we got used to the market going up. you could buy an etf and you made money you said it's the end of easy. is it also the end of that lots of stocks have done great you can't buy everything anymore, i don't think >> absolutely. what we like to call the end of

easy is also window for opportunity for the patient investor, for those investors grounded against goals and objectives through their financial and investment plan. and right now the end of late cycle behavior, this end of easy, we've seen this before it starts to exhibit levels of price dispersion and return dispersion in the market that actually sets up nicely for areas like active management where passive, to your point, has been just running hard but we believe right now if you throw caution to the wind and actually keep careful eye on fundamentals, you can find opportunities to invest in we are rolling money into equities, large cap and mid cap equities as well as emerging equities >> taking advantage of that weakness thank you. in corporate news, one of the world's biggest companies, which is also a dow component, is headed for splitsville. frank holland has the details.

>> the industrial giant announcing plans to split into three separate companies by 2020 those will be united technologies which will continue to focus on aerospace, otis elevators and carrier heating and cooling. utx completing its $23 billion acquisition of rockwell collins. united tech's ceo greg hayes says as stand-alone companies united technologies, otis and carrier will be ready to solve the biggest challenges and provide positively to communities around the world dan loeb pushed for united technologies to split in april after disclosing his hege fund built a significant stake in the company. at the time management disagreed but always said it was open to shareholder input. utx up a percent and a half in premarket trading.

watch tesla's shares today. shares fell in china 70% the passenger car association telling reuters tesla sold just 211 cars tesla which imports all the cars it sells in china said tariff hikes in auto imports were hammering sales. we continue to monitor gm today. yesterday the automaker announced it will shut several plants in america and canada and cut about 14,000 salaried jobs president trump and several lawmakers are expressing displeasure over the move. gm's ceo mary barra met with larry kudlow yesterday afternoon. so farr no details have emerged on that discussion. the fda approved a drug to treat a range of cancers in a clinical trial the drug

significantly cut tumors in 80% of patients. this is loxo's first commercial medication we have a lot to do on this tuesday morning. we're just getting started up next, we'll find some opportunities for you around the world. we're live in china. later on, will opec now actually cut production at its big meeting next week or keep doing what president trump wants, driving prices down we'll ndutfi o coming up place, the xfinity xfi gateway.

and it's strengthened by xfi pods, which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today.

. coming off of yesterday's bounce the markets not giving you a lot of follow-through. dow futures are down 40 points still no real green follow-through so far. things could change. this is not what the bulls wanted to see in europe. kind of a similar story. down, not by a lot in france we're down by 0.01%. in asia, we saw a bounce in the hang seng yesterday. not the case last night. down just a touch. speaking of asia, things like that just don't happen by accident, some of the biggest names in technology are gathered in china for cnbc's first ever east tech west conference. deid

deidre bosa is there now good to see you. >> i'll joined by the managing director and vice chairman of jpmorgan asia pacific. thank you for being with us. >> thank you for having me >> audiences around the world are look at president xi and president trump meeting in buenos aires how likely is it that you think a trade deal might be reached? >> i think looking for a trade deal to be concluded may be premature. however i think the two sides will agree upon some kind of framework to restart negotiations that's progress. the road ahead will be long, it will be bumpy. at least this is some sign of progress happening between the two sides. the negotiations are happening >> we will see some progress you think going forward at this meeting? >> absolutely. we should guard against too much optimism also at this juncture the meeting has not taken place yet. i think the market right now is really waiting with a great deal

of anticipation on some kind of an announcement. >> what makes you optimistic given the tit-for-tat and the back and forth and the president's tweets >> at least you have a meeting now between principal leaders. they will sit down and negotiate what china needs to give in terms of the trade concessions is china going to import more u.s. products? is china going to open up markets to multinational companies? so at least we're beginning to see some signs of progress so there's a light at the end of the tunnel >> i know you said in the past that so far the tariffs and the trade tensions have not affected the chinese economy all that much >> it's very interesting in the last several months china's exports have held up well starting from august, september, october export growth actually has been in double digits. this is because exporters are

frontloadi frontlo front-loading the exports ahead of the u.s. holiday season everyone knows tariffs are likely to go up to 25% on 2$200 billion of chinese products to the u.s. come january 2019 so they're exporting as much as possible now therefore if you look at the -- front-loading. if you look at the export picture now, it's not too bad. if new tariffs go to 25%, i think in 2019 we'll see the exports begin to soften. >> does that mean that the pain comes later? >> the pain may come in 2019 assuming there's progress on negotiations >> thank you very much for taking the time. brian, back over to you. >> deidre bosa, thank you very much take care. see you soon

all right. up next, bitcoin or bust we put bitcoin's big drop into perspective. when you hear it you'll be the smartest person in the office today. later on, the best story of the day. an atm goes nuts in texas. starts throwing out hundreds the bank says ep iket. that story an more straight ahead.

♪ ♪ (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. >> we don't believe bitcoin is a security many icos you see and talk

about, they are securities if you're going to offer and sell securities you have to do so in compliance with our laws we've been clear about that. the recent actions further emphasize that our securities laws do apply to the ico space if people are going to raise money using initial coin offerings, they have to do so in a private placement or they have to register with the s.e.c >> that was jay clayton talking about bitcoin regulation late yesterday here on cnbc now the cryptocurrency falling more than 40% in the last three weeks. if you think that crypto crumble is unprecedented, it's not it doesn't rank among the largest of all time. the numbers were ran yesterday the biggest drop occurred between september 2010 and october of 2010. it fell 94%. that was in a month. it was at a few cents, so it

went from 4 cents to no reptents the second biggest drop,down 2011 to november 2011. it fell about 94%. so our current drop of 82% from the high to where we are, more than 20,000 this time last year, is the fourth biggest drop for bitcoin of all time. let's bring in dan mccrome with more on this we can't call this a capitulation, so what are we supposed to call this? the fourth biggest drop of all time, it may not be everything, but it's something >> thanks for having me on i think the key to understand that people talk about capitulation as giving up. you throw in the towel, you cut your losses and you sell the

bitcoin you have the key to understanding bitcoin, we've been writing about this for years, the way to understand it is like a pyramid scheme bitcoin and the other cryptocurrencies are about attracting recruits. that was attracting people who would buy and sell things with bitcoin. then last year you had this speculative mania takeoff, it was about recruiting people who wanted to speculate on the coin. so you're seeing as bitcoin and the other currencies are having these big one-day drops they're not followed by bounces. people are not coming in it's the lack of buyers, you are not seeing new recruits coming into the market and buying. >> stan, why not why not? why aren't the buyers there? >> because it was a fad and a mania. as the price is going down, that's senisending the wrong message. it's not saying you can get rich quick. it's saying this will get

cheaper. you look at the previous falls, su sure, it could drop to 85%, $3,000, do you buy then? or do you say bitcoin was at $1503 1/2 yea $15 $1503 -- 150 3 1/2 years ago, maybe i wait for that. >> if you go back through history, the pain of loss is much greater than the joy of an equal gain that's why -- i'm not calling this a bubble. that's why bubbles burst faster than they go up. people can't handle the down they love the up, but the down is disproportionally worse do you think that's what we are experiencing again in the cryptos? >> we've seen this time and again in all sorts of different financial bubbles, also fraudulent bubbles, manias you go back through history. one thing to realize as well is these can take a lot longer to burst than people realize.

it goes up quickly, but as you go through you sort of got this process of re-education, adjusting to this reality where you're not going to make lots of money. so you're going to see this sort of downward, downward, but it can take time for people to give up on things like bitcoin or the other fads we've seen. >> i know we call it the cryptocurrencies, i've said it, i don't like the term. i don't think it's a currency at all. currencies, unless you live in argentina or zimbabwe during financial crisis don't move like this does this prove it's not a currency >> we always said it's not really a currency but it's hard to come up with a better term for it aside from bitcoin, the biggest and most popular, i agree with the s.e.c., these are unregulated or unregistered securities offerings and they should be treated as search. >> great article there appreciate your time see you soon

>> thank you very much. speaking of a big cryptocurrency crypto commodity, conference underway in the middle east right now. dan murphy of cnbc is live in dubai making his "wex" debut he has the latest. dan? >> hi, brian from market darling to damsel in distress i got off the stage talking to industry leaders and the outlook for cryptocurrencies and blockchain and also the head of cisco's blockchain unit. he said if we can learn anything from this most recent crypto collapse it's that there were no fundamentals on the way up or down his key learning from the price action we've seen in 2018 is that the reality is when you assess the fundamentals there's not a lot driving these markets. the bottom line emerging from the ashes from all of this is a renewed focus on the power and potential of blockchain which he

says can change a number of seshgts and sectors in the future. we've seen bitcoin slump below $4,000 for the first time in 14 months there has been big declines here something for investors to follow around the world. >> certainly there has been. what a chart that is dan murphy, great to see you. are you searching for optimism your next guest has three reasons why next year could be bullish for your money once again. she will lay them out for you coming up. first the countdown is on. a high stakes g20 summit is days away we'll hear from a man who has been on the front lines of the global gathering more anncth oe. tony fratto will tell you what you need to know coming up

watch out. president trump turning up the heat again on any kind of a trade fight with china we'll tell who is in the cross hairs now. will opec actually cut output at its meeting next week? and what does apple's tumble have to do with finland? we'll explain as "worldwide exchange" rolls on right now

thank you so much for being with us on cnbc. i'm brian sullivan let's kick off the second half of your show with your executive recap. all the stuff you need to know in about a minute with frank holland. you want to keep an eye on apple shares this morning. shares are down more than a percent and a half in extra hours trading. the stock slipping after president trump threatened tariffs on iphones from china. trump telling the "wall street journal" that he expects to move ahead with upcoming tariffs on china to 25%. united technologies is planning on separating into three separate companies it is splitting up its aerospace, elevator and air conditioning businesses. united tech expects the separation to be finished in 2020. and cybermonday sales hitting a new record yesterday's online sales are projected to hit 7$7.9 billion, up nearly 20% from just last year brian, back over to you. >> let's check the other top

headlines outside of the world of money and business. phillip mena has that. >> happy tuesday to you. a major development in the robert mueller investigation regarding former trump campaign chairman paul manafort federal prosecutors say man no for t -- manafort repeatedly lied to prosecutors. they say after signing the plea agreement he lied to the fbi and the special counsel's office on a variety of subject matters which constitute breaches of the agreement. manafort's lawyers are disputing the government's claim of a broken plea deal the u.s. is warning russia after the country seized three ukrainian naval ships in the black sea. nikki haley condemned the act saying the united states would welcome a normal relationship with russia but outlaw actions like this one continue to make that impossible. and a chance to give back after all the commercialism of

black friday and cybermonday it's giving tuesday. it launched in 2012 and raised $10 million in charitable donations. it's growing every year. in 2017 over 3$300 million was raised in the u.s. alone brian, giving tuesday is much better for the soul than anything you can buy on signer monday >> it's invaluable that's why volunteers don't get paid because they are priceless. >> that's right. apple's stock will be a focus of the market today. president trump telling the "wall street journal" that the next round of tariffs could be placed on consumer electronics imported from china. yes, that could include apple's iphone the new threat coming days before the president meets with chinese president xi jinping at the g20 summit in argentina. let us bring in a man who has been to a couple of g20s, tony fratto from hamilton place strategies, former white house

deputy press secretary without going into the details, the pomp and circumstance of these events, we get the camera cal calls, right what is actually going to happen behind the scenes and is there a ree real opportunity for trump and xi to make a deal? >> i don't think there's an opportunity to make a deal i think the best anyone can hope coming out of that meeting is an agreement to get their people together to sit down and talk. they have not really spoken. haven't really had the face-to-face dialogue that you would expect that they would have at this point the chinese are waiting for the midterms and for this meeting before they do this. so i think that's a positive outcome. the market would be excited if they agreed to sit down and try to work through these things i think a deal is not in the offing some of these things are too hard to get to at a meeting like this >> i thought you would come in with good news >> that's good news.

people will like it. people will like the idea of them sitting down and trying to work through it. some of the things that the white house is calling on the chinese to do, the chinese are starting from a position of saying we don't actually even do these things it's hard to come to a middle ground on them they're big, complicated issues. i think -- though i do think talking will be good, that doesn't mean that additional tariffs are not coming i lean towards the likelihood of tariffs coming the president says repeatedly he likes tariffs. he's a tariff guy. if these existing tariffs brought the chinese to the table, i think he will want to use the rest of the tariffs as well >> when you look at the framework of a meeting like this it's like teens in a parent's basement how much private time will they get before dad opens the door? will they get any time alone where they can hammer something out where the cameras are not on them, where they don't have to

show off or front for the camera >> hardly. not really it's like being in a fish bowl the meetings themselves will be behind closed doors. you'll get the photo-opes. both before and during the meetings there will be bilateral opportunities for president trump and xi and other world leaders there as well. they will get a chance they have not announced their bilateral schedule they said they will meet with president xi i have not seen the list of other leaders they will meet with there's also other high profile meetings that could be there as well >> a number of people equated this trade spat with the cold war. i said that's ridiculous cold war, russia, we didn't have economic ties, we didn't send them much in the way of food or energy china imports a lot of food from us, they import a lot of energy, we have a big economic relationship how real do you think this fight

actually is or are we so connected behind the scenes that we're going to be okay >> it's funny. we're 100 years from world war i. people made the same arguments about world war i. the global economy was too integrated so integrated we could not have a war. if we had a war it would be a short war. people said a lot of things about the u.s./china relations we're much more fully integrated it's clear there's pain on both sides. we're seeing it across a whole array of industries. yesterday with gm's announcement, that wasn't the only reason gm is closing plants, but it's a factor, the trade dispute is not helping their bottom line. so we're seeing pain all the way around including pain in china remember still that these are countries that have staked out positions and the leaders have their own views on these issues and they have pride also so the logic of integration is

not always the way these things work out they could go on for a long time in this case i think it will go on for a much longer time. >> tony fratto, i think you said i was terribly wrong but in the most gentlemanly and polite way. that's why we like you >> take care, brian. >> have a great day. what should stock investors expect from the g20 summit if anything what else will be on your radar heading into 2019? joining us now is linda baxtian. i know you bring good holiday cheer for the new year a couple reasons to be optimistic before we get to that, let's talk about the subject we just did. how much is trade on your radar at federated >> of course trade has been on everyone's radar over the last 6 to 12 months but i think i would probably agree with your last guest in the sense that we are probably not going to get an absolute resolution of the trade war between u.s. and china

however could we get an off-ramp, good photo-op, shake hands and agree to talk over the next couple of months? more importantly for the market is are they going to postpone those january 1st tariffs to sometime later on? if that occurs i think the markets will move -- have the potential to move higher >> give us some reason -- it's been a volatile couple weeks and months the dow is basically flat for the year that's the good news give us a reason optimistic heading into 2019 >> sure, markets have been volatile but it's much more fear driven if you look at the economy, cybermonday and thanksgiving sales we saw that, the consumer is strong. 70% of the u.s. economy is that. in addition you have corporate profits going until 2019 we expect 8% to 9% epses growth

eps growth the corporate world is in good shape as well. lastly valuations are much more reasonable today than six weeks ago. so putting those three together in addition to looking at the underlying economic activity, tame inflation, good unemployment, low unemployment, i think all of these things put together points to a reasonable economy. >> valuations are only more favorable if the denominator doesn't move that much the p on the pe, that's moved down prices have come down. but if earnings drop in a similar way, then the valuation stays the same you think -- or it sounds like you believe that earnings will hold up enough to keep those valuations tasty >> i think they will expectations for 2019 is an additional 8% to 9% eps growth

i think the revenue growth is also expected to be about 5% if you continue to see a consumer that is spending in a corporate world incentivized to do share buybacks, all of those things together will help the economy moving forward and earnings growth to probably potentially even surprise to the upside the issue here is the fear factor among investors where we're expecting that, you know, the fed will not stop at all with the rate increases. and we're not going to get a resolution at all in china that fear factor is really causing market volatility. and issues in the stock market >> linda, we always appreciate your views have a great day >> thank you up next, what is trending today? nasa's mars mission making

headlines this morning we will show you some cool footage all the way from the red planet. the crude crush. oil prices down again. could opec cut at next week's meeting? 'lfiwel nd out

love chicago there good morning

let's find out what else you will be talking about today. time for the top trending stories. frank holland is back with those. >> our ties look almost identical. we did not plan this >> we did not. we should. >> probably. >> that could be trending. every day we wore the same ties, at some point somebody will notice >> you hate cybermonday, how about tuesday twinsies. the successful landing of insight marks nasa's return to mars they celebrated with the touchdown last night this is a successful beginning to the geological study of the red planet the probe has already beamed back its first photo from the surface of mars. this is cool great video here >> amazing awesome. >> that thing will not move around it will dig down deep and bring back information about the geology of mars. elon musk says there is a 70% chance that he will go to mars

>> okay. just okay. >> let nasa have its moment. holiday decorations are springing up all over. the white house is no exception. the first lady released this video unveiling the decorations. it showcases dozens of decked out trees including the official white house christmas tree in the blue room which measures 18 tall going back to those red trees, people had a lot to say about the red ones some say they're creepy, others say they're festive. >> anything that trumps do, people online will have a beef with by the way, i have a friend, he's probably listening now, his name is chris. they already have their christmas tree up. >> shouldn't you already right after thanksgiving >> what? so he's not crazy? >> not at all. >> that thing will be -- needles will be falling off. it will spontaneously combust by christmas morning. some people in houston may

have extra spending spon f inin the holidays after an atm spit out $100 bills the man posted about this on social media and then people were crowding around looking for free cash. people were called to secure the location bank of america blamed the issue on a vendor who mistakenly loaded the machine with $100 bills instead of tens. the bank said they can keep the money. >> good move by bank of america. whatever that cost them, they will make up for it with good pr >> i would love to run into an atm and grab a couple. i don't think i would stop here's the problem, have you tried to spend a $100 bill in new york city? >> no. >> thyou can't. they won't take it

>> i want that problem >> good problem to have. still to come, opec meeting next week. could the cartel cut production or will trump trump the recent price drop a staggering stat that compares apple to finland. yep. apple to finland chgerlide on "wodwe exan" would that be possible we're back after this. with quicksilver from capital one. you're earning unlimited 1.5% cash back on every purchase, everywhere. like on that new laptop. quicksilver keeps things simple, gary. and smart, like you! and i like that. i guess i am pretty smart. don't let that go to your head, gary. what's in your wallet?

somewhere in that picture of times square is the "squawk box" team they just arrived. they're putting on their makeup. andrew ross sorkin, are you there with a preview of what's coming up? >> i am there, brian, with a preview of what's coming up. we have a very, very big show ahead. we will talk about gm and what that means both economically, politically and otherwise. we will talk oil

we have dan juergen here, the man behind the prize he's all things oil for us we have mohamed el-erian at the top of the 7:00 hour we will talk about markets and where things are headed. it is giving tuesday i don't know what you plan on giving, but dave gilboa will be here, the founder of warby parker for every pair of glasses you get, they give we'll talk about that and that trend and where things are going there. we have alec azar, we'll talk healthcare with him. drug prices. then a bit later the whole debate about amazon in new york. long island city taxes. the incentive programs we have the person behind so much of it, alicia glen will be here from the new york city deputy mayor's office. she was the point person behind this in many cases

finally we will talk about bitcoin, cryptocurrencies and the continued volatility, if not price drops with that. barry silver will be here, a man who has made quite a lot of money, but has -- we'll see where he stands these days on bitcoin. that's what we got and the -- this is in my ear, can you see it >> i can see it. >> this is what they call an ifb in the business. >> i still don't know what that means. >> what does ifb stand for >> intermediate feedback is that right? >> the director and producer both said something different. >> i'm told intermediate >> interruptible interruptible feedback >> news you can use. >> thank you very much opec meets next thursday, what should we expect.

helima croft from rbc capital markets joins us now how much a few months make the last opec meeting, we were both there, they have to add production prices are too high. now will they cut production i think th >> i think they will the question is how much will it be, how will they message it president trump will lean on the saudis to do nothing fs, but it in the saudi best interest to pull barrels back. >> by how much >> i think a minimum of a million barrel cut >> what? >> yeah. think about it a million is essentially where we'll start from in terms of a cut. the question is do we get up to

1.5 or higher. my base case is a million. you know who will not like that? >> president trump >> you read my mind or my notes. >> no. again, this is the challenge i was in abu dhabi, and one thing we were hearing is a sense that president trump had told these producers that there will be no exemptions, he would take iran to zero, they acted accordingly. now they're less than thrilled that these countries got exemptions i think they believe they were not entirely dealt with honestly in terms of iran's sanctions >> iran is not at zero they're selling oil, just not legally. >> the question is iran was never going to be at zero, but they would be tough on exemptions so countries like saudi arabia were surprised when trump gave eight exemptions they put a lot of barrels on the

market in anticipation of that if you look at the saudi numbers, saudi arabia was producing about 11.2 million barrels earlier this month drawing down inventories to reach record levels. >> but what about the big wildcard which is not us, russia so that's why you and i have been dragging our tails over to vienna every couple months the russians and the saudis have come together in a way that gives them huge power. >> we saw that last summer you had a situation where you had the saudi oil minister say we'll act alone if we need to. we'll act with the russians if we need to but the rest of opec saying they were not making the decisions but along for the ride i think the russians will be there. i think the real question mark is does saudi have a change of heart because of trump this will go down to the wire on saudi arabia >> what do you think the president has been out there on this khashoggi killing, he has basically said he's supporting mohammed bin salman

>> he tied it together he also talked about how helpful saudi had been on the oil price. his tweets have been about saudi being helpful pushing prices down saudi arabia, if you look at the imf, they need $88 to balance their budget this no way works for them economically it works for president trump but not for them >> it does not this will be more drama next thursday you will be there. i will be there. >> i will be there >> it's like the super bowl for oil. time for your morning rbi. this comes to you from our friends at spoke investment group. it has to do with apple's tumble apple down 23% over the past two months, that comes out to a 266 billion market cap loss. apple's market cap would make it the seventh biggest company in the s&p 500 and it's the entire gdp of finland in this market rout apple has

lost finland somebody call scandinavia. chgewi for watching "worldde exan." "squawk box" is next thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

good morning apple shares after a volatile session yesterday where they closed up, they're down again today after president trump threatens to slap tariffs on all chinese imports including the iphone united technologies splitting into three companies we will show you which parts we're talking about slitting off and how the stock is reacting. a new report says saudi arabia prumped crude at its fastest rate in november, but analysts predict a cut coming

up it's tuesday, november 27, 2018, "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. our guest host is ian shepherdson from pant hshg e tpo economics. let's look at the u.s. equity futures. we are giving back some ground we picked up yesterday yesterday the dow was up by 354 points s&p was up by 40 points. the nasdaq up by 142 points. this morning dow futures down by 55 nasdaq off by 36 s&p futures down by 9 points the rally yesterday was the best we've seen in three weeks for the dow and th