breaking market news. a major wall street selloff goes global it is a sea of red from asia to europe u.s. markets are closed today as the nation mourns the passing of president george h.w. bush we will have full coverage of that global slide. it is wednesday, december 5th, "worldwide exchange" begins right now. ♪ good morning i'm dominic chu.

brian sullivan is on assignment today. yesterday the dow dropping nearly 800 points, a fall of more than 3% as you're watching this time lapse play out right now. traders won't have a chance to recoup losses today. u.s. markets are closed in honor of president george h.w. bush. there is no trading at the new york stock exchange, the nasdaq or the cme group all u.s. data is delayed except for the beige book that will come out at 2:00 p.m currencies and commodities are trading. overseas markets are open for business as you can so he the red arrows across the board in asia are carrying over. hong kong is taking it the worst. a sea of red across the board. the same in europe european trading, we are seeing the dax off, the same for the cac and the ftse 100 u.s. futures will trade until 9:30 a.m. eastern time

well have full team coverage of this global selloff let's kick it off with nancy hungerford live in singapore >> we did see broad-based selling in asia. no surprise if you consider the fall in wall street. sentiment did spill over here. if you are looking for bright spots, i guess the good news in this slump is that the losses were more muted than on wall street the other bit of good news is for the likes of the nikkei 225, the steeper losses in the session earlier were paired back by the close that was off by 0.5% the index did drop more than 2% yesterday. keep that in mind. the greater china markets firmly in the red the hong kong market off 1.6%. that was the laggard on the session. we saw ten secent under pressur. keep an eye only falling oil prices in the mainland, a negative story. when it comes to the japanese market, once again we saw banks

on the back foot, this follows the under-performance of the u.s. as well and traditionally the japanese banks keep a close eye on the move in u.s. yields back to you. >> nancy hungerford, thank you very much for that let's head over to european trading. joumanna bercetche is live in london with the latest >> good morning. the picture is not that much prettier for european markets. all of the majors are trading in the red. every single one of these indices is technically in correction territory so more declines in these indices. quickly talking about ftse 100 a lot of political developments over the last 24 hours, concern that the meaningful votes will not go through in the house of commons next week. also we had weak services pmi numbers. that's pushing the index down. the german index is down by 0.8% cac 40 surprisingly today, the italian index is the relative out-performer.

a bit of positivity that the italian government may be looking to revise down their budget spending plans. let's talk about some sectors that got hit almost all of these sectors are trading in the red some of the heaviest hit are construction material, down 1.5% basic resources on a day when you see the trade sensitive sectors getting hit. tech also getting a beating in line with some of the price action in the u.s. with the weakness in nasdaq generally speaking a rough day for european stocks. dom, back to you >> joumanna bercetche with the latest from the european trade, thank you very much for that. the global selloff fueled in part by escalating trade tensions between the u.s. and china. we're getting fresh reaction from china's commerce ministry let's get to eunice yoon live in beijing with the latest. >> thanks so much. china says it is confident about the prospects of a trade deal in

a statement on its website the chinese xhercommerce ministry sd beijing would work quickly to implement specific issues already agreed on as both sides actively promote the negotiations within the 90-day timetable. china's confidence comes after president trump amped up the rhetoric and uncertainty after tweeting we are either going to have a real deal with china or no deal at all, at which point we will be charging major tariffs in a separate tweet he described himself as tariff man. chinese officials have been confused and irritated by the white house claims, and a lot of that irritation has been showing up in the state media. for example, u.s. treasury secretary steven mnuchin had said that china had agreed to buy 1$1.2 trillion worth of american goods the communist party paper, the global times, countered that claim saying that the u.s. didn't mention the time frame of the purchases or that the

products must be needed by china into t by china the talk now, is that the chinese officials are waiting for the president, president xi jinping and other senior leaders to come back to china after their trip to panama and portugal, and president xi is scheduled to return to china on thursday. >> we know currently that there are not a lot of details on -- from either side with regard to what we actually got in terms of a trade deal out of the g20 in argentina. but talk to us a bit about the expectations from chinese policymakers, the political community out there with regard to whether or not they feel as though president xi will come here and echo some of the same real optimism is the best way to put it that president trump echoed here in the united states >> i think a lot of people here

expect on an official level and in a headline level for president xi jinping to echo that optimism. they also again today, the chinese commerce ministry said this was a successful negotiation and discussion that they had over the weekend. so at a top-line level president xi will talk about all the positive stuff but on the other hand, privately, a lot of chinese officials as well as chinese business people are concerned about where this whole discussion is headed because the fact is that because bob lighthizer is the one who will be leading the negotiation and he has been very strict from the u.s. side about wanting china to make structural changes that would mean really painful changes to the industrial policies, that those discussions will be incredibly difficult for the chinese to compromise on so that's one of the big questions that the people here have, just whether or not beijing is willing to make those

changes. >> eunice yoon live in beijing with the latest, thank you very much for that. with us now on the cnbc news line is fast money trader, guy adami. let's talk about the markets, china very much a part of the emrn emerging markets picture. what is the price action telling you now about how things are developing with regards to the u.s. and the rest of the world >> good morning. you know, the question we've been asking for a long time is, you know, is the u.s. market going to trade down and catch up to emerging markets or are emerging markets going to bounce and catch up to the u.s. the short answer is they'll meet somewhere in the middle in terms of the price action, that's what you're seeing. we're always looking to cast blame and figure out what the cause of these things are. obviously everybody wants to

blame the fed on one side, the chinese trade tensions on the other side you look and say the move in crude oil from 75 down to 50 has nothing to do with either. the move in specific stocks, facebook, nvidia, google, amazon, has nothing to do with those things so we want to cast blame and say these are the reasons why, but quite frankly there are other things going on as well that the market either refuses to see or doesn't want to acknowledge. >> so, guy, from a trader's perspective, oftentimes traders will look towards factors, is it value or growth. what are some of the tea leaves you're looking for to see what next direction of this market will be, whether or not we get a bounce back towards an attempt at record highs or whether this current downtrend continues. >> i'll give you a couple tea leaves i've been saying this for a while. now it's all the rage in the media. i'm not suggesting i'm some

savant, but i believe what's been happening with european banks specifically deutsche bank is worrisome if you read some of the news stories about deutsche bank, you have to ask yourself is this this generation's bear stearns or lehman brothers if they were a u.s. bank, we would talk about it every day. it's not, that's one reason why i don't think we focus on it but you would say is it deutsche specific or sort of systemic i'm starting to think the latter if you look at the way some of our banks are trading, maybe it lends itself to exactly that citi bank has been a laggard you say why? they have the most european exposure deutsche bank is one of those things you can't discount the fact -- a lot of people want to say it's different this time. but the yield curve has been flattening for some time the market has not cared, for

whatever reason it has cared the last couple of days. again, everybody wants to say it's different this time it's never different it's pointing towards something that none of us want to acknowledge or want to realize economies are slowing down there are a number of factors that i will continue to watch. the fact the speed with which the yield curve is flattening has to be alarming i'm not an economist, i'm not pretending to be but it's just been a very fast precipitous drop you know, it's one thing for the yield curve to flatten as yields go higher, in other words, the front end of the curve catching up to the back end in this case it's the back end of the curve going down at a very steep decline you have to say to yourself that is emblematic of an economy that is not doing nearly as well as some in the administration want to pretend it is >> those concerns playing out right now, especially on that longer maturity side of the

curve. guy adam mi, thank you very much for those early thoughts >> see you later, dom. let's talk more about the global market picture, joining me is chris wattling you have been following along with this conversation that we've been having with our reporters around the world with guy adami what stands out to you as being the driving force in the global picture? trade tariffs, the yield curve in the u.s.? what is the foremost driver in your mind? >> i think what's interesting is this is not just a quick risk off and risk back on event there's more to it there's more volatility i think what the market is telling us is what macro has been telling you all year. money is getting tight chinese money supply slowed from 25% two years ago it's running at about 3%, the lowest growth rate since 1989. equally in the u.s., money growth slowed. there's not a lot to of money

around fed overtightened. central banks need to loosen >> i'm curious, because there have been signs of slowdown globally no matter where you look, and they've been around for, i would argue, the better part of a year at this point yet it was only in the last couple of months that the markets really seem to care. why? >> yes and no. it's only in the last couple of months the u.s. markets seem to care the rest of the markets have been in a down trend this is not a new phenomenon the u.s. was just the best of the bunch and was the last to go >> so guy mentioned something interesting in that last segment. he said it was about the divergence in u.s. markets vers other parts of the world, was the u.s. going to fall down to catch up to the rest of the world or was the rest of the world going to lift itself up a bit to catch up to the u.s he said somewhere in the middle.

the prepond draerance is where? >> it's what many of us are asking all year. the key now is it all depends on the central banks and how do they behave. the fed is signaling maybe going on a pause next year we need more signaling from that the chinese are not easing enough i think the europeans are going in the wrong direction they've still reducing qe. it depends on what the central bankers get up to. i think they'll change their tune, but markets need to go down more before they do that. our playbook is rally into year-end from here we're base building. you buy at the lows on the dax you buy if the s&p gives back a few more points, we see some rally through to year end and then another pullback that changes the mind of the central bankers. >> the bulls will like to hear that chris, thank you we are just getting started on "worldwide exchange." up next, another potential market mover we're talking oil.

the opec meeting is just one day away we're breaking down what is at stake for your money later on in the show, raising the red flag one market pro has 13 reasons why you should be worried about the global markets we just talked about a couple of them here. he'll lay out his top three when we come back after this break. firmness... nine. it's how ibm services helps retailers around the world drive growth and save millions. he's very into this. yeah. is that the standard amount? yes. feels good. when your partners are obsessed with business and technology, you can put smart to work.

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today.

it is a national day of mourning in the united states as the nation remembers the life of president george h.w. bush right now a live look at capitol rotunda where the 41st president is lying in state. later on this morning there will be a state funeral we'll have full coverage of the services throughout the day on cnbc we'll be right bk.ac i still can't believe how incredible the screen is on the new iphone xs. and our unlimited plan really takes things to the next level

with your choice of the best in tv, movies, or music. it's the perfect holiday upgrade. i know what i'm asking santa for this year. you still write letters to santa? no. please. i send him emails. can i get his email address? oh... i don't feel comfortable sharing it. get the iphone 10 s and our unlimited plan with your choice of the best in tv, movies, or music. more for your thing. that's our thing. something is transforming and our world.. it's the longevity economy - americans 50+ driving 7.6 trillion dollars... of economic activity every year. right before our eyes, aging is unleashing exponential growth... ...in every industry. are you ready? we are. a-a-r-p is teaming up with business leaders and innovators... ...sparking new ideas and real solutions. so, what are you waiting for?

ignition sequence starts. 10... 9... guidance is internal. 6... 5... 4... 3... 2... 1... ♪ from capital one.nd i switched to the spark cash card i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. which i used to offer health insurance to my employees. what's in your wallet?

welcome back. the u.s. markets are closed today as the nation mourns the passing of president george h.w. bush commodities are still trading. wti crude off by a half percent. $52.94 the last trade there. ice brent crude, $61.72, also down by a half of a percent. we will stick with energy. opec is holding a major meeting in vienna tomorrow, the stakes couldn't be higher brian sullivan has a look at what will be important and contentious at this opec meeting. >> reporter: what a difference a few months make, opec not only facing falling oil prices but perhaps the beginning of the end of its cartel. in june opec agreed to raise production to counter rising prices and the threat of supply from iran sanction s but it

miscalculated. iran is still able to sell oil around the world and the united states and russia continue to boost production >> i can't stress the importance of what's happening in oil right now. >> prices crashed in november, worsing their worst month in more than a decade president trump loves it tweeting lower gas prices are a big tax cut, but our tax cut is a profit tax on opec it not only has to figure out how to deal with trump and the united states, but also a break in its own ranks this week the country of qatar shocking everyone saying it is quitting the cartel because it wants to focus on natural gas rather than oil. >> our intention to develop a new gas project for export >> at thursday's meeting opec expected to cut production by 1.3 million barrels a day. but on friday the saudis meet with non-opec member russia and what some cynics call the real opec meeting so between expected cuts, qatar

cutting and running and the continued rise of the american oil juggernaut it could be a conscientious couple of days in vienna >> brian is on the ground, as you just heard, in vienna ahead of the opec meeting. we'll hear from him all day tomorrow let's bring in tamar brian brought us a lot of points of concern for the opec meeting. we have the united states, saudi arabia, russia, three of the biggest oil producers in the world producing at still near record levels. what will be the focal point of this meeting tomorrow and friday >> the key thing is what happens on friday and what the communique states. so it's not just about the agreement but the actual word g wording. do they say they will cut production or do they use some more general language saying that we'll respond to customer demands and they don't

necessarily spell out the baseline for the production cuts in order to have sustainable gains higher, the market needs to see those three cohesive and collective cuts. >> you have russia and saudi arabia, the media reports have been perhaps a bit unclear a little opaque. sometimes we hear that russia and saudi arabia are pretty close to agreeing to production cuts, then reports come out that they're not as close as they thought they were. >> this opec agreement is far from a done deal saudi has a weak hand going into this meeting they need this deal. they want this deal more than anyone else and the market recognizes that. they are in a weaker position than they were in november of 2016 when the original crash happened foreign reserves have come down. they need to bolster the oil

price. by contrast russia has benefitted from a weaker ruble, they lowered their break even, so they're flexing their muscle. the number they floated in terms of what they've been willing to cut, 150,000 barrels a day, that's not enough to get to the 1.3 million that brian was talking about that the market needs to see it's in nobody's interest for oil prices to go below $50 i think that opec plus russia recognizes that failure to get a deal done here is going to cause prices to go into the $40 range and that benefits nobody >> tamar, the trading action for the last couple of weeks has been all in anticipation of this big meeting coming up tomorrow and friday there's the opec two-step. there's a lot of jawboning, ratcheting up of tensions and rhetoric and walking back. we have not heard as much out of the saudi side of things as of late what does that tell us about how these negotiations are

going to go? >> it tells us it's all about the art of the deal and what these heads of states are going to put together. we know that the russian corporates have been reluctant to get on board. putin is the one person in russia that could herd the cats. he does benefit with having the more increased trade deals with saudi in november of 2016. but it really all comes down to what the two of them can agree to we've seen fractioning within opec from the smaller membering. we also know that saudi's hand is tight because they don't want to ire the trump administration in terms of speaking to direct and ek police s and explicit production cuts >> big meeting tomorrow.

tamar, thank you very much >> thank you. let's talk about what's coming up next we are all over this global market sell off. the dow taking a plunge yesterday, falling nearly 800 points we'll break down what's next for your money and facebook's fall from grace. the annual best places to work list is out, and the social media giant is not at number one this time around we'll tell you who stole the top spot when orwi eha"wlddexcnge" comes back

breaking market news a major wall street selloff spilling overseas. f.a.n.g. fumbles tech stocks taking a beating and remembering 41 it's a national day of mourning as the u.s. commemorates the life of george h.w. bush we're take you live to washington, it's wednesday, december 7, 2018, you're watching white sox 1/4 right here "worldwide exchange" right here on cnbc good morning welcome to "worldwide exchange." i'm dominic chu, brian sullivan is on assignment today let's get you up to speed on what's happening out there frank holland has that >> it is a national day of mourning in the u.s. as the nation remembers the life of

president george h.w. bush you're looking live at the capitol rotunda where the 41st president is lying in state. there will be a state-held funeral to honor the former president later this morning markets in the u.s. will be closed today in observance former cbs ceo les moonves coming under fire again. the "new york times" reporting that he destroyed evidence in misconduct allegations against him. and india's uner biber busi topping 1.6 in annual bookings they say they will close the year in the strongest position ever as the ridesharing leader in india >> frank holland, thank you very much for those headlines let's check the other top

headlines outside of business. frances rivera has more on that. good morning one year after former national security adviser michael flynn pled guilty to lying to the fbi, federal authorities are recommending little to no jail time due to his cooperation in the robert mueller probe, and it extends to another criminal investigation separate from the mueller probe. top senators received a briefing on the death of jamal khashoggi. after the meeting bob corker and lindsey graham seemed more convinced than of the crown prince's involvement the question is whether they will make good on their threat to come down on the saudi prince like a ton of bricks. a recent ground beef recall due to salmonella contamination has been expanded. you may want to check your freezer.

jbs tolson is recalling more than 12 million pounds of raw beef products this follows an earlier recall of 7 million pounds of ground beef. another important recall to tell you about this one for dog owners the fda issued a warning for as many as eight brands of dry dog food which they say contains excessive and toxic levels of vitamin d, up to 70 times the recommended value. more types may be added to the recall list. toes are your headlines. >> frances rivera, thank you very much. let's get you up to speed where the markets stand now. the u.s. markets are closed today as the nation mourns the passing of george h.w. bush. overseas markets are still open. in asia things closed up in the red. the nikkei is off by a half percent. the hang seng in hong kong

taking the brunt of it, off by 1.5% the shanghai off by a half percent. that is spilling over to the european side of things. if you look at the dax, we're off by 0.75% the cac in france, about the same the ftse 100 in the uk off by a full percent at this stage let's bring in drew mattis from metlife as we talk about the reasons behind the selloff we talked trade, tariffs, yield curve inversions what in your mind is the primary driver of why this market selloff is happening at this stage? >> i think for a long time people have been nervous that everything is about to come apart. whenever you talk to people they talk about the next recession is around the corner. you had the yield curve inversion in the front end people began to think the market has set the price for where the next recession is. we know where the fed will stop.

we know the next recession is in the air. the market is making assumptions about what it knows, despite the evidence is to the contrary in the u.s. you look at the data, consume ser doi r is doing well, businesses are doing well ism data is good people are ignoring that data because they believe something has to end >> you're an economic by background >> now you're accusing me of stuff. >> i've known you for years as an economist there are those out there who believe there is a slowdown happening. how do we reconcile that and what ends up winning in mgt glob >> globally there are signs of softness there's hard to find evidence that we're slowing let alone

going into recession you know, from my point of view the next 12 months things still look good. one of the risks that we continue to point out and i warn people i work with about is the next recession might actually come out of financial markets and into the real economy. when you're in a situation where no matter what you do your stock price gets a hit, you begin to concern yourself more about not disappointing market expectations because the penalty for that becomes too great then people begin to think about maybe i shouldn't hire that extra person maybe i should cut back on my capex budget and make sure i'm saving money >> drew, that sounds similar to some conditions that we had in 2008 and 20009 and 2010. we are far away from that level of instable ility in the market right? >> we are. people look at high yield

market, people look at the bank loan market. it's hard to see something that looks like the mortgage market and the way that would spread throughout the banking system and into the real economy. i'm thinking more cfos, ceos maybe rethinking hiring plans for 2019 rethinking capex budgets for 2019 making sure they can hit quarterly targets as opposed to keeping their eye on the long game >> so the yield curve is important right now. it has inverted in certain parts, flattened in other parts. is it as reliable an indicator about future economic downturns as it has been in the past i heard arguments about massive central bank intervention. i heard that the rescent price action is the function of a trade unwind, a technical reason is there a concern about the yield curve and should it be as prominently placed as it is

right now? >> there is concern about the yield curve. you know, we both have been in the business for a while i don't want to say it doesn't matter i think it does matter i think it does signal something. it also can be self-fulfilling because of the way it encourages lentdi lending to take place that being said, there's a huge amount of treasury issuance. the federal reserve owns a lot of treasuries that combination means maybe it's less trustworthy than it used to be we have the term premium also, and treasury yields are not pricing in the things they normally price in with regard to getting paid for taking duration risk >> so a lot of variables out there on the yield curve drew mattis, thank you very much >> thank you time for the top trending stories. frank holland is back with us for those. what's trending. >> i like that stomp

we'll start off with social media news facebook will want to put this one in the dislike column. glassdoor releasing its annual ranking of the best places to work, and facebook is no longer one. part of the scoring formula includes employee satisfaction which fell this year the new number one place to work is bain and company. >> it used to be investment firms and banks when i was getting out of college, maybe this is an interesting change. facebook is idiosyncratic. there are certain issues that it's dealing with, data privacy, that sort of thing >> sounds like morale may be low. now facebook is not even the number one tech company anymore. hollywood's biggest night has a host kevin hart will host the 91st academy awards this february with ratings down for the oscars the last two years, the academy

is hoping hart can breathe new life into the broadcast. >> kevin hart is one of the funniest guys out there. the argument has been made the falling ratings have been due in large part, perhaps, i don't know, to this idea that the oscars have now been politicized, there's a lot of grandstanding with regard to political views. so does kevin hart go down that route and try to make it about the political situation or stick to his comedy routines >> i'm a big fan he's from philadelphia, i'm from philadelphia i don't think he's a political comedian however i think also system of it has to do with the fact that people are watching more tv. tv is better netflix, amazon prime. the emphasis on movies being these seminal moments has been taken away >> good point. >> 'tis the season for holiday givings, the new orleans saints owner is all in. she walked into a local walmart store and paid off more than 400 layaway orders >> this is great

i love these stories >> the total cost nearly $100,0 $100,000 probably an emotional time for her. her husband, the owner of both of those teams passed away if you watched those teams, they have a patch on their uniform with his honor probably something in his memory the holiday season harder when your loved one is gone >> great stories thank you so much. >> thank you the sports world got a bit bigger the nhl adding it will add a franchise in seattle seattle's ownership group will pay 6$650 million to join the league, 30% more than the last expansion team paid. the yet to be named seattle team will be ready for action in the 2021 season. still ahead, weighing the worry. stocks slammed in a very big way yesterday. we'll tell you what this could mean for markets in 2019 as 2018 comes to a close

as we head out, a startling stat from yesterday's selloff 10 of the 11 s&p 500 sektdector were negative led by financials n.at sector was down 4.5% on its ow "worldwide exchange" will be right back

it is a national day of mourning in the united states.

right now you're looking live at the capitol rotunda where the 41st president is lying in state. later on this morning there will be a state funeral and tracie potts has that report. >> reporter: thousands of guests will full the national cathedral this morning to celebrate the life of the nation's 41st president. >> i'm not grieving, i'm celebrating an amazing, warm, kind, gentle human being >> reporter: four living presidents, obama, bush, clinton, carter will pay their respects with dignitaries from around the world the service includes hymns chosen by the family and scriptures red by two bush grandchildren. george w. bush will eulogize his father >> there's a lot of pressure for him to get it just right. >> reporter: today's funeral follows private greetings from president and mrs. trump and a

steady stream of visitors to the capitol, politicians, sports legends, ordinary people who waited hours to say good-bye >> he was man of integrity >> you knew he cared. >> reporter: a time salute from former senator bob dole, and one last visit from his zf dog, sully. this afternoon special air mission 41 stands ready for the final journey back to texas. and one more private memorial. >> which is fitting. the way he would have wanted it. >> reporter: the way he planned it, with no missing man flyover no hail to the chief, just farewell >> that was tracie potts reporting from washington. let's bring in james lucier from capital alpha partners. he worked on president bush's first presidential campaign. thank you very much for joining us tell us your thoughts to start about what it is like right now knowing that george h.w. bush is

lying in state and passing on. >> well, he was a man of great decency, integrity and honor i think his passing does mark the end of an era. an era when politics were classy and less polarized than right now. he was a man of great kindness and generosity, humanity, vision it's hard to imagine someone that could have been a pilot in world war ii, 58 missions flown, shot down by the japanese, yet also at the presidency in the white house when the berlin wall fell he was at the center of world affairs for 25 years the center of american politics for more than 30 years and whether he was at home or abroad his reputation for honesty, for good personal relations, for good humor, it just preceded him. i think that his basic skills, his good character really helped him achieve these things >> jim, you mentioned the passing of an era at this stage.

take us through what it was like in terms of era between then and now, in terms of markets, the economy, how the nation stacks up economically speaking is it different now a lot than it was back then when george h.w. bush was president of the united states? >> it is you have to remember during the reagan era the united states economy was very strong performer. we shut off the malaise of the 1970s. there was a sense of confidence and vision about america at the time and then the end of the cold war also seemed to open up possibilities. the united states had the world's strongest economy, there was no superpower level competitor, it seemed like the post world war ii aura that the united states established was going to be the basis of an enduring americana what we are seeing now is a u.s. economy still great, still

strong, but no longer as dominant as it was, and a united states of america that is facing peer competitors russia has reasserted its presence as anauthoritarian country. president bush was ambassador to china. today we have a world in which the position of the united states is not as certain, not as sure the confidence that we felt during the '80s and '90s, even going into the clinton years is shaken now i think that, you know, there is a strong case that the leadership we had from president bush was appropriate for the time it was humane.

it was not -- it was humane, gentle, humble, but still he said he would never apologize to the united states of america he was a strong man with a gentle exterior. >> it seems like everybody we have spoken to has those same thougtd thoughts thank you for joining us this morning. we will have full coverage of president bush's state funeral throughout the course of the day on cnbc. you will want to keep it right here u.s. markets are closed today in honor of president george h.w. bush there is no trading at the nyse or nasdaq, bond markets are closed currencies and commodities, global oriented trading is going on overseas markets are poopen for business

most kids today will have jobs that don't exist yet. the engine management systems coordinate with autonomous vehicles. financial data, so now we can predict the future. our new flexible propeller design. by collaborating with public schools on a program called p-tech, ibm is helping students build the skills they'll need for tomorrow. revolutionizing. aerospace industry. it's an entirely sustainable approach. any questions? when you rethink education, everyone can put smart to work. welcome back stocks had a wild day on wall

street yesterday the dow plunging nearly 800 points on rising fears of an economic slowdown. that's a fall of more than 3% as you're watching that time lapse trade play out from yesterday. traders will not have a chance to recoup those losses in cash equity markets today u.s. stock and bond trading is closed in honor of president bush commodities and currencies are open for trading globally speaking let's bring in the senior market analyst from fx street joe, there are a number of reasons why the markets are moving the way they are now. >> true. >> what are the handful that you think are the most important drivers of trading action today? >> i think the greatest worries are coming from overseas, potential political conflicts that could spiral into economic effects. in europe everyone knows and has been following this the dramatic story of brexit in the parliament where they will start their debate today if that goes through, it seems

now that the government, at least may's administration, has lost control of the debate and the direction of where it will go we know no one likes markets of uncertainty. if there is a disorderly process, whatever it epps up at, it will be just as damaging i think for the british economy as it will be the european economy. right now it is edging towards recession. we had a negative gdp in germany in the third quarter, in italy it was flat. it looks like it's heading towards recession. this could tip it into it and a serious recession. we have that concern it's less of a concern and more of a story what is going on with the u.s. and china

that will end up in a trade war. i think both sides recognize the importance of this it's a recognition that this is crucial to both economies and to the world economy. that's the issue if you look at the united states, the economy is still strong job growth is good wages are starting to rise the things you normally look at to judge an economy in the u.s. are doing well doing better than well that's not issue it's overseas and more fear than actuality. >> what's interesting is that it seems like there's a theme that unifies both of those. that's the political environments in which these leaders are operating in theresa may, the uk prime minister and president trump, president xi on the trade tariffs front. is that political discussion going to drive the story going

forward? >> yes it will to the sense that if the politicians can arrange a solution to these problems, if brexit comes out, if may somehow recoups and gets brexit through on her deal, then all of the or many of the worries will subside. it will be a boost for the european and british economies, because they're so concerned about it now if they don't and if the problem is you're looking at what -- political processes, you've seen this in parliament, they can come up with much different solutions than you expect. if that happens, if the emotions tend to take over the process, then you start to get real effects. what will happen is it's not that brexit and the discussion in parliament will cause an economic effect, but people will start to change their perceptions and their actions based on it. >> perceptions are going to be key in all of this. >> absolutely. >> thank you very much that does it for the show.

qux sq "squawk box" is coming up again. ♪ ignition sequence starts. 10... 9... guidance is internal. 6... 5... 4... 3... 2... 1... ♪

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today.

breaking news. the market selloff has gone global now stocks and asia are down across the board. u.s. stocks and treasuries are closed today for the national day of mourning for president george h.w. bush we'll take you to washington for the ceremonies and show you what's open for trading. it's wednesday, december 5, 2018 "squawk box" begins right now. live from new york where business never sleeps, this

"squawk box. good morning welcome to "squawk box" 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. the nation is observing a day of mourning in honor of our 41st president, george herbert walker bush we will take you live to washington in a moment first here's a rundown of what's open and closed today. the new york stock exchange and nasdaq closed. the u.s. treasury market closed. adp jobs data and the productivity report have been postponed until tomorrow jay powell's testimony to the joint economic committee of congress has been postponed. earnings from lululemon, american eagle and h & r block have been rescheduled. u.s. index futures will be open until 9:30 a.m. eastern time if you look at the futures after yesterday's massive selloff, you will see right now there are some green arrows.