here's your top five at 5:00. watch out below. stock future s tumbling. a big battle in brussels the uk prime minister in belgium at this hour theresa may trying to hammer out a new brexit deal. countdown to shutdown. congress skipping town no deal in sight to keep the lights on. starbucks is getting into delivery and we'll tell you what investing legend is taking a gamble on one part of the chinese economy but not in the way you might think from jim chanos it's friday, december 14th

"worldwide exchange" begins right now. good morning welcome from wherever in the world you may be watching. i'm brian sullivan if you are just waking up, here's our advice. either go back to bed or pour yourself another large cup of coffee it is looking now like a rough end to the week. stock futures indicating a drop of 300 points on the dow yes, it is early things have plenty of time to turn around. that weak china data is really impacting sentiment this morning. if this holds, 1.2% drop for dow futures, it would wipe out dow gains for the week up about 1%. that's the bigger than 1% drop that means we go negotiate for

the week asian markets reacting negatively to the news japan, down 2% hong kong and shanghai down as well all right. enough numbers let's get more to the news driving these numbers. eunice yoon has the data how much is the chinese economy slowing down >> it's slowing down by a lot, brian. the data for november was really ugly it disappointed many investors here so the retail sales numbers were particularly bad it was growing at its weakest pace since 2003 industrial output expanded the least in nearly three years. the fixed asset investment figure looked better it had a pop but that's only because early in the year the numbers were so weak part of the slowdown has been engineered because the government has been trying to slow down the financial sector by clamping down on risks there. there is a lot of tensions for the trade war as well as other

economic conditions just weighing on consumer sentiment from the stats bureau, they said so far the impact from the trade war was minimal but the bureau expects greater external uncertainties in 2019. this is just raising a lot of questions as to what the policymakers will do next. the central bank governor said yesterday china will keep its monetary policy loose for now. next week a lot of investors will be watching an annual policy setting meeting that takes place sometime in the middle of the week a lot of people think the pressure, it will keep increasing for policymakers to continue to stimulate and come up with other measures to try to prop up the economy. brian? >> you know, the indication, we know the data. the chinese market has been slowing a bit over the last couple of years. how is this playing out in the local media? is it the united states is slowing us down or more of the things just kind of continued to slow down as they have been

theme? where is the blame >> a lot of focus is on how china -- i think a lot of the focus has been on how the chinese government wants this to happen they have been trying to slow down the economy and there's going to be a greater tolerance for slower growth. that's something we heard yesterday when the top echelon, the upper echelon of power met they held a meeting where the signals that were coming out of that meeting was that china is going to be more tolerant of slower growth. that's the messaging this is more of an impact because china wants the slowdown, wants to focus on higher quality type of growth. and also emphasizing the importance of economic reforms and the impact that could have on growth as opposed to president trump making things terrible because of the trade war. >> it is bad out there a lot of red on the screen eunice yoon, appreciate it

thank you very much. let's turn to the early action in the european markets kind of a continuation of the theme, dow futures down 300. asian markets down if you wanted to find sunshine on a friday, european markets down 1%. germany down more. less bad than the rest of the world. that's what we got this morning. happy friday less bad here's a global look at commodities and currencies crude oil, mid 52 buck range euro/dollar at 1.12. bitcoin down to 3,254. the cryptos have been walloped the last couple of months. why do stocks go down? we're always looking for a reason that number is a big reason. if you're listening on the radio, there's a giant graphic that shows 46 billion. that's the u.s. stock fund withdrawals last week, money

coming out of mutual funds and etfs that's the most on record. let's bring in tally ledger from oppenheimer funds. you may have seen him quoted over the weekend we invited you to come on, you said yes thank you. >> thank you >> stocks go down for that reason more people want to sell than buy. are you seeing -- do you think we'll see a continued continuation of that more selling outflows are nothing new i would treat flows as more of a contrarian indicator this cycle, we have seen secular structural flows into fixed income, less so into equities. what do we know about cycles and bull markets they usually die in euphoria outflows are not showing us signs of that euphoria >> i love this e-mail. you sent me a great e-mail

it's the greatest i've gotten. it says death crosses, yield curves, expansion, recession, large caps, small caps, a lot of questions. there's a lot to discuss what's the most important thing you're focused on? what was mentioned earlier is key. in china just as slowdowns can be engineered, so can reaccelerations. i think we're staring at shanghai accord 2.0. >> what does that mean >> we're looking at a multi-pronged drip strategy from the chinese in an effort to support, stabilize, even indu induce -- >> the iron fist, not the velvet glove. >> right they're cutting taxes for businesses so fiscal expansion is coming online monetary policy is easing. the currency is back to the 2015/2016 lows that's another important source

of stimulus. the national team has been directed to buy equities what you're quoted about in barron's is also here in the united states, small cap stocks. they were the leaders for years. small caps outperformed, now they're underperforming. what does that under-performance tell you >> that's been my call all year. i'm sticking to it whether it's because of concerns about a potential slowing in economic growth, or the realization we're in a later stage of economic expansion, it points to investors sticking with the larger higher quality stable companies >> are you a buyer of small cap stocks >> i would be focusing on the large caps >> big caps. >> correct >> you're not playing into the weakness you're staying more defensive. safer. >> look, on -- >> hiding out in plain sight >> correct small caps, i think, could benefit. but larger companies can continue to outperform as long

as the expansion continues >> real pleasure to get you on we need your sage counsel. thank you very much. >> thank you. all right. get this, in corporate news, starbucks outlining a slew of changes at its investor day, including news about delivery. frank holland has more on that news shares are down more than 3% in premarket trading today after the company lowered its long-term guidance starbucks expects annual earnings growth of 10%, down from forecasts of 12%. it's also projecting annual revenue growth of 7% to 9%, that's in line with previous targets. starbucks is affirming gi ininge for 2019 but says same-store sales may come in at the lower end of estimates starbucks is expanding coffee delivery through a partnership with uber eats this was tested in miami in september and plans to offer the service to a quarter of

company-owned stores in the u.s. next year. it admits dlelivering coffee can be tricky. starbucks has a similar delivery partnership in china with alaba. starbucks also plans to add 6,000 new stores over the next four years, nearly double its presence in china. starbucks ceo kevin johnson and uber's ceo, dara khosrowshahi will be on today at 9:00 a.m. and tonight again at 6:00 p.m. >> do you need coffee delivered, yes or no? >> i don't even drink coffee, but if i did, i would want it hot and not dripped all over >> lvmh is buying hotel group belmond in a 2$2.5 billion deal.

the luxury retailer agreeing to pay $25 a share for belmond, a 40% premium over yesterday's closing price. the deal expecting to be closed the first half of the new year who is belmond they own the oriented express luxury train lines, a lot of hire-end hotels in charleston, south carolina and around the world. lvmh going from a retailer to a travel company overnight adobe's fourth quarter earnings beating forecasts revenues roughly in line adobe upping its revenue outlook for the year strong demand here and abroad. jim cramer spoke with adobe's ceo last night about the company's bullish forecast >> i think we're absolutely in the sweet spot of two massive shifts that are happening, creativity has never been important. when you think about creative cloud, to your point, we drove

1.45 billion of net new annualized revenue in the year, a record for us. when you think about digital in every enterprise, trying to engage can customers, that grew dramatically >> adobe's ceo also saying the recent deals are off to a great start. keeping an eye on shares of costco the company beating forecasts on a jump in same-store sales, however that was overshadowed by a drop in gross margins. the stock is down 2.5% right now costco paying higher wages, ramped up investment information online businesses. adobe and costco down about 2.5% this morning. we're just getting started on what is a pretty ugly friday from a markets perspective up next, a battle inbrussels pressure mounting on theresa may. she's fighting for a new brexit deal and jim chanos' big gamble

the famed short seller rolling the dice on a key part of the chinese economy. we'll tell you what he's betting against this time. as we head out a check on the futures as we are down about 275 on the dow a lot of red on the screen grab a coffee or grab a tea. we're back after this. your brain is an amazing 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.

welcome back we have an early morning selloff under way. dow futures down about 270 points nasdaq and s&p futures also down the dow is up this week. we're down 0.9% on the dow if we ended the day where we are now, there's a long way to go, we would wipe out the gains this week overnight in asia, similar story. japan down 2%. chinese domestic market down hong kong down if you want to find that glass half full, it is friday. try to be optimistic european markets down, but down less than the asian markets or the futures. brexit remaining front and center for investors this morning. uk prime minister theresa may struggling to hammer out a new brexit deal with the european union. willem marx is live in brussels with more on the negotiations. willem >> thank you very much, brian.

theresa may early this week, of course, postponed a vote inside the british parliament on her brexit proposals she then weathered a leadership challenge within her own party and concluded that process by saying i'll go to brussels for this summit with my european counterparts i'll try to get some of them to offer me assurances, whether legal or political, that one element of my brexitdeal that lot of you are unhappy with, around the irish backstop will never come into effect if it does, it will only be temporary. this was the response from donald tusk last night after she made that pitch to european counterparts take a listen. >> the union stands by this agreement and tends to proceed it is not open for renegotiation. >> doesn't leave theresa may

with a huge amount of wiggle room she will be heading become to london within the next couple of hours and trying to figure out how she can move this process forward. >> all right what is next for theresa may obviously she survived this week, the vote what's the next step for the uk prime minister >> her government has said they won't try to push this through parliament before christmas. she has a deadline, january 21 g21st in which she has to get that vote she will have a christmas break for mps. between now and then she has to persuade some of her own party and opposition lawmakers she's not going to get the kinds of assurances from the europeans that she sought to get separately in a separate track she will try to get some of these european leaders to come out and give statements that

will reassure that the irish backstop is not a trap, it's something neither side wants we got some indication from leaders this morning that that is the case, they don't want that, but whether that will reassure british lawmakers and vote this through, that's uncertain. the pound is plummeting again this morning on the back of this reaction from european leaders. to asia and famed short seller and critic of china, jim chanos, is rolling the dice on china. listen to these exclusive comments he made to cnbc about macau. >> recently we added new and old names. and one area i'm scratching my head about is the macau casino guys >> who are you shorting. >> you know the name

wynn sands. particularly the hong kong listed asian operations. and then in the hedge fund we are long the chinese operators. >> wow short american companies, but long the chinese companies that's an interesting move for jim. jim is the guy that called out enron a number of years ago. has been very tough on china for a decade and now long some chinese stocks that's probably a first for jim chanos you can see more of that interview with jim on our website, cnbc.com. you know how to get there. up next, countdown to shutdown congress skipping town a deadline looms to keep the lights on in dc. buckle up, dow futures down nearly 300 could be a rough ride on the street we'll set you up with all you need to know it's 5:20. we are back after this

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welcome back it could be a rough ride on wall street today the street of dreams looking like a nightmare this morning. dow futures down 284 points right now. that would wipe out the gains this week. there's a lot of stuff out there. the chinese economy slowing. of course brexit interest rates but also this, investors are

keeping a close eye on d.c. because congress officially skipping town for the weekend while the clock ticks on another possible government shutdown let's get to tracie potts live in d.c she's still working. she has more >> i'm still working i don't work for the federal government there are hundreds of thousands of people out there wondering if they're going to be working. latest that we heard on this shutdown deadline fiasco is that they don't have a plan it looks like congress may try to temporarily extend funding all the way to next september. this is to avoid dealing with the $5 billion for the wall. we'll see how that goes and who president trump goes for that temporarily even to just keep the government open. he has other things on his mind, too, including a new investigation going back to the first week he took office. >> i donald john trump do

solemnly swear -- >> now under investigation by u.s. attorneys in new york, whether the trump inaugural committee misused some of the 1$107 million it raised, whethe money was given to gain access to the new administration. according to the "wall street journal. >> doesn't have anything to do with the president or the first lady >> it's the latest concern for president trump. multiple sources say he's worried about impeachment after his former lawyer, michael cohen, got three years in prison in part for claiming mr. trump directed illegal hush money payments to alleged mistresses mr. trump on fox >> i never directed him to do anything wrong whatever he did, he did on his own. he's a lawyer. >> reporter: a course confirms president trump was in the room when cohen discussed the national enquirer paying off karen mcdougal >> he shouldn't be concerned only about impeachment he could face criminal charges from bob muller. >> reporter: president trump will soon be dealing with

muller's russia investigation without a chief of staff four people have reportedly turned down the job. all those hush money payments, the legal issue is whether or not they were conducted, made to protect the candidate from embarrassment or to influence the election >> tracie potts, thank you we're glad you are there still for us stock futures sinking. the chinese economy sagging again. coming up, one market pro with a warning for you. your name, your kids names, 1, 2, 3, 4, passwords with the "s" we have the worst password winners coming up.

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mom. ♪ futures sagging as china's economy hits the brakes again. >> a new deal with uber. and how do you change your entire business model overnight? one company did it with the stroke of a pen and a nearly $3 billion buyout "worldwide exchange" continues right now. >> welcome back. that graphic said pop the dom,

not dom chu. let's kick off the second half of the show with all the news you need to know. frank holland has that starbucks plans to expand coffee delivery in the u.s. through a partnership with uber eats the company will grow its delivery service in china. those announcements coming at starbucks investor day where the company also trimmed its long-term annual growth earning target from 12% to 10% we'll hear from the ceos of starbucks and uber today at 9:00 a.m. eastern and 6:00 p.m. lvmh is expanding its empire striking a deal to buy luxury hotel group belmond for 2.6 billion. it will pay $25 a share, a 40% premium to yesterday's closing price. belmond owns more than 40 hotels, restaurants, river cruise ships and trains.

shares of lvmh are down in paris, belmond is trading up 40%. costco is unpressure the warehouse club reporting better than expected first quarter earning obsers on a jumn same-store sales brian, back over to you. >> i have to tell you, that lvmh/bell mondmond days. those are european names, but it's like macy's buying hilton totally changes your entire business model >> they're both luxury brands. >> they wanted to sell you purses and versace while staying at a high-end -- that's how you roll >> i think we know what will be behind the bar there >> i think we do, too. a little dom not chu. >> stay safe, dom. let's check on the top headlines including cool news about a meteor shower.

phillip mena has that. cities across the u.s. and canada were on alert after a wave of bomb threats the fbi is now investigating what law enforcement sources tell cnbc appears to be a widespread hoax. schools, businesses and hospitals in 21 states and d.c. were evacuated after threats were received by e-mail demanding $21,000 in bitcoin to keep explosives from detonating. no bombs were found. the annual geminid meteor shower is back nasa says you could see about one shooting star per minute meteor showers are a name for the constellations they emanate from in this case the constellation gemini. snow was not causing a backup on a new jersey highway thursday morning, it was cold hard cash. bills blowing around during rush

hour some drivers got out of their cars to grab those lioose bills >> tens of thousands of dollars and an accident costs for 60 bucks on the road. >> the markets flat would seem good right now dow futures down nearly 300 points. it's early we have a long way to go today if those kinds of losses hold it will wipe out the gains for the week that is more than a 1% drop for futures. s&p, nasdaq, dow are all lower the bond market responding a little bit but it looks more and more like we'll end the year with a sub 3% yield for, again -- it's been a trend for years, 2014, we are right there.

right on 3%. 2.877. that two-ten spread is what you also want to watch the big news is that the chinese economic data came out weaker than expected. chinese economy continues to slow down. japan suffering as well. nikkei down 2% hong kong and the chinese domestic market down 1%.s are ae early market not quite as much as the futures here or the asian markets overseas we're seeing a lot of red on the board for commodities. euro/dollar at 1.1294. and look at bitcoin. this time last year bitcoin was at 20,000. this time last year, 20,000. right now 3,259. ouch let's bring in daniel morris

senior investment strategies at bnp paribas. sometimes we struggle with what to focus on. now it feels like there's a struggle to figure out whatnot to focus on. whether it's trade wars, interest rate moves, the fed, qe here, qe there, brexit what are you and your team at bnp paribas mostcused on now >> we are trying to illustrate the point that there seems to be a bit of everything, not one thing the markets are worried about. if one of those four or six items we're concerned about goes better, there is always something else to turn to. the key things we think will matter in the near-term, the outlook for u.s. interest rates is it true is the fed going to pause next year will the dots come down and lower rate expectations in the u.s. that's crucial when you look at the market,

particularly the u.s. market and see it as a signal of a gross slowdown, we don't think that's the case, but the markets are not quite convinced of that yet. at the same time we would like to see the same out of china and out of europe. trade wars continue to go back and forth. i think today frankly was a bit better with china removing retaliatory tariffs on autos there's no lack of things to keep us up at night when we should be think being holiday plans. >> the headline would be a lot of little. maybe a death by a thousand cuts here's the problem with that that's not an easy fix if we had one big thing and everybody came together to fix that, the markets might get fixed. but the fact we have so many other things, so many problems, is that fixable in the near-term? >> i think it depends on market

sentiment. it is a market now that reacts most to the negative news. you don't see a reaction that's sustainable, maybe a day of an up market and then things reverse. at this point, given that really the outlook seems to be perceived by the market as so negative, i think you'll need quite a few good things to turn market sentiment around. that's a challenge right now if you want to come up with some positive catalysts that will excite the market, that's a bit tough. you don't really see much that will go great in europe in the short-term similarly in china so i think the best we can hope for is an absence of additional bad news, but really something positive that will make people perk up and move back into risk assets, that's harder to come by >> we got more bad news today, chinese industrial output rising 5.4% normally that sounds good on this side. for them, that's a slowdown,

retail sales weaker than expected to your point, something else not good for lack of a better term >> yeah. i think with the china data, and in this case bad news may be good news. we think about the relationship between china and the trump administration i think the trump administration is betting on the fact that china feels a bit vulnerable with their own economic slowdown, which is happening independent of the trade war it's much more around their own deleveraging initiatives if china is seeing slower growth, that means we want to get out of a trade war, that makes it more likely they compromise the other thing to keep in mind is that the government is already reacting besides the disappointing data, credit growth was higher than expected double than the previous period. the government is reacting that should come through in the numbers, even if not soon enough for investors. >> to your point, a lot of stuff to be worried about.

it's friday. it's early morning leave us with this leave us with an idea. your team at bnp paribas, where do you find opportunity? how do we make money on this chaos? >> to be honest, we're tactically overweight equities we think the market overreacted. it's been the worst performing market that was after being the best performing market through the beginning of october so it was easy come easy go. you look at the pmis, you look at the economic data out of the u.s., inflation coming in in line or below expectation, so less worries about additional hikes from the fed it should be less. we do think there's an opportunity here for developed market equities. that's where we're looking >> with everything you said, you're still overweight equities >> to be clear, we're neutral. so we say tactically now we think the market has gone too far. we want to take advantage of that even if the outlook for next

year is in line with average returns. >> we are supposed to bouy low somebody said that once. daniel morris, thank you very much >> thank you. let's find out what else besides the market and dow futures down nearly 300 you'll be talking about today frank holland has trending stories. >> it is friday. we will start off with this one. this will have you talking a southwest flight from seattle to dallas was forced to turn around after a human heart was accidentally left on board that was being donated the organ came from sacramento it was supposed to be unloaded in seattle but never was southwest was notified the heart was still on board and the plane turned around. the heart still made it to the lab with plenty of time to be used two important parts of the story. one, it did not have a recipient

just yet they wanted to give this organ to save a life number two, the plane had another unrelated mechanical issue, so it all worked out. >> somebody was watching over that heart >> probably would have had to turn around any way. >> years ago i spent one day at the southwest airlines lost and found at love field. the most interesting place some things i saw. a six-foot diameter sombrero, a kitchen sink, two prosthetic legs how do you leave your limb on a plane? i'm not kidding. it's the most insane thing >> we'll move on kfc is getting into the holiday spirit the fast food chain releasing a limited edition fire log that smells like fried chicken. it went for sale yesterday and sold out in a few hours. not bad. i enjoy that >> finger licking fire don't do it. when you logon to your

computer, what's your password >> frank holland 1, 2, 3, 4. >> don't tell us, we kid if it's one of these change it immediately. splash data releasing the list of the worst passwords the top spot always go to this one, 123456 followed by the word "password. i've been guilty of that don't you make the ss 5s to be tricky don't do that either >> eh. common words like sunshine and football made the list don't do your birthday or pet's name a lot of those celebrity hacks, that's how some of them figured it out they posted their pet's name, and they type, done. >> i love dom chu 123456 >> dom is getting more mentions. >> when i need an emergency day off, dom is the best hopefully he's sleeping soundly.

thank you. to the sports world. some of us stayed up last night to watch my chargers destroy kansas city chiefs on thursday night football they were down by 7. eight seconds left mike williams, red hot third td of the game the chargers went for two. they didn't risk overtime. they went for the win. they got it. they're 11-3 i've been a chargers fan since i was 4. been a long road still ahead, going for the gold the metal losing its luster this year if you're betting on a turnaround, we found a cool way to get in. no kidding that involves pablo picasso's granddaughter. first, as we head out, another look at how things are shaping up not good dow futures down 251 s&p and nasdaq down as well. it could be a tough day on the street of dreams

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♪ ♪ move to the enterprise-grade cloud that's built to handle all your apps. ♪ ♪ the ibm cloud. the cloud for smarter business. if you're just waking up, dow futures down 257 right now this could wipe out the gains for the week it was a decent week this week we're down 0.9% on the dow if we end where we are now, that will wipe out the gains for the

week bad china data, industrial output falling more than expected bad data out of europe the fed is in play brexit a lot going on ten-year yield is another big story, we're seeing buyers come into treasuries. the yield at 2.87% that two-ten spread, the yield curve, the one to watch. still holding steady at 15 basis points i know -- whatever you get it gold is lower again this morning, adding to this year's losses it's been a tough year for the pressur precious metal. joining us now is diana picasso, co-founder of monet, monet jewelry. thank you for joining us on "worldwide exchange. you will tell us something i did not know when we go to a jewelry store and buy 24 karat gold, often

we're not getting a whole lot of gold how come >> most of the jewelry we found today is an alloy. it's mixed with either copper or silver, but it's not 24 karat. >> why not what is it tin? >> it's more expensive, it's more difficult to have access to pure 24 karat gold we thought there was somehow a lack of knowledge maybe of transparency because people have forgotten the way it feels, the way it weighs, so there for there was an opportunity to do something new. perhaps in the luxury fashion industry we have forgotten the original role that jewelry played in terms of maintaining its value. >> you describe monet jewelry, and the reason we have you on

cnbc is you describe yourself as investment jewelry it's beautiful that's the idea. we're a stock market channel if people want to invest in gold, why should they do it through you and not buy a gold bar for example? >> yes i think we're mostly talking about utilities. it's a ring. it's a necklace. it's a bracelet. it's something you can hold on and enjoy like art moreover n our case, it's sold by weight. therefore if you buy jewelry that is $500, what we earn is only going to be 100 the other is going to be pure precious metal, 400. so in a way you understand better how you spend the money >> do you benefit from a falling price in gold on the wholesale market

>> no, i think the idea is really to have something that lasts. maybe because i'm more familiar with the art world and i trust when you buy a great artist you will always maintain your investment >> you know something about great artists. i think your grandfather might have been one. diana picasso, thank you very much we have a news alert out of china. china's finance ministry says it will suspend additional tariffs on u.s. made cars and parts next year china deciding to end the tariff on 211 different cars and car parts for three months from u.s. automakers remember, we have agreed to this 90-day truce, if you will. china now doing a 90-day truce on cars and car parts. general motors and ford shares heavily traded now but they're

reacting ford up about a percent. bmw surprisingly is down keep in mind bmw, a german company, but it exports most of its x5s to china they're made war in greenville, south carolina. german company, u.s. built by american workers, exported to china. surprised that stock not reacting more positively still big news china pausing -- we're not going to call it an end, causing car and car part tariffs nor 90 days up next, weighing the risks. your next guest says concerns over a major pullback could be overblown. we'll find out why a tech alert if you're a heavy texter, it may end up costing you in california it's your rbi and california we love you, but really a story you have to hear coming up

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just to recap the breaking news, china has decided to take a pause on tariffs on imported cars and car parts we had expected this could happen a proposal to do this had been submitted to the chinese cabinet, basically their congress, for approval moments ago they posted the approval to the chinese finance minister's website in that country. so apparently the proposal to pause, not end, but pause auto tariffs and auto parts tariffs, 211 different cars and parts is going to happen for 90 days. saw a positive reaction in gm and ford stock we saw a move earlier this week in some of the foreign automakers when that proposal was submitted. now apparently that proposal has been put into fact we'll see if that helps the markets at all not right now dow futures down 254 points

let's bring in eric palfrey. we have seen these violent swings for nine months or ten mont months why have we gone so haywire? >> i think investors are grappling with this idea of a global dedeceleration. we're seeing it in china, in europe we will begin to see it in the u.s. at the moment the u.s. trend remains quite strong as we look out and say where can you make money the answer is in the u.s that's the place where trends are still holding up >> you think so? you can still make money in u.s. stocks >> yes >> last week 46 billion was pulled out of u.s. mutual funds and etfs, the most ever. people are selling >> if you look at what the expectations are, the market sold off so much it's telling you the economy must be going into recession or corporate profits must be going into

recession. when you look at expectations for 2019, growth for u.s. equities, 7% to 8% for eps froth. that's not a recession that's not mixing and matching with concerns we're hearing or seeing >> are you worried that the market is not responding positively to trade news the trade stuff is fairly good news, the market is not reacting >> volatility is high. with volatility high the moves tend to be sharp we see it intraday we see big swings. i expect over time, as we continue to get more positive news from corporations, this fourth quarter earnings season coming up, then volatility will come down. >> 30 seconds left where do we make money >> i recommend taking down economic exposure portfolios go with companies in charge of their own destiny. technology, stable companies like health kay. >> tech and healthcare healthcare has had a good year >> it has. >> have a great weekend.

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stocks in asia tumbling overnight after china posted new signs of an economic slowdown. european shares under pressure futures pointing to a sharp drop here starbucks is getting roasted. the stock under pressure after the company cut its earnings forecast. and we'll show you which brick-and-mortar stores are getting crushed in this make or break holiday quarter. it's friday, december 14th

"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're live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's look at the u.s. equity futures. the dow futures are indicated down by 250 points s&p futures down by 28 nasdaq off by 88 this comes after a mixed day for the markets yesterday. the dow was up by 70 points yesterday. the s&p 500 and nasdaq were both down s&p down by half a point nasdaq composite down by 28 points let's look at what happened overnight in asia. stocks selling off after a weak industrial output and retail sales numbers were reported. a li