♪ it is 5:00 a.m. at cnbc. here is your top five at 5 will this be the week that markets set new record highs we're just about 2% away from seeing it, and futures they are higher right now. oil patch power play saudi arabia sacking its top energy man, replacing him with the king's son it may finally begin to cut production continued unrest in hong kong more violent clarks between protesters and police over the weekend. we'll give you a live report from hong kong next. could the end be near for e cigs one state looking to ban vaping completely as yet another death

is reported. score one for mr. jamie diamond. a cnbc exclusive report of just how close jp morgan chase is to winning the top advisory role, one of ifnot the biggest ipos in history it is monday, september 9th and "worldwide exchange" begins right now. ♪ good morning, good afternoon and good evening and welcome from wherever in the world you may be watching us i'm brian sullivan, happy monday everything going on in the world, could this be the week that our stock markets here in the states hit new record highs? dow futures they're up right now, about 50 points the dow and the s&p 500 are less than 2.5% from their all-time highs. the nasdaq just under 3% from its all-time highs now, the small cap russell 2,000 still down by about 13% from its 52-week highs, but the major averages, they are getting

close, as stocks have gone up, bonds have come down a bit yield is ticking up just a bit 1.59%. you got japan gaining half a percent and the domestic chinese market also rising now, europe right now not moving a whole lot despite some breaking economic news just moments ago from the uk that its economy rose at its fastest pace in six months. that's likely going to come as a surprise to many given the political crisis there i guess it's keep calm and spend on you could see kind of a flat market around the world. so speaking of england, let's kick it off and welcome in your first guest of the morning and of your trading week, and that is patrick armstrong, cio. before we get to our markets here, are you surprised that uk gdp coming in at the fastest pace in half a year given everything that is going on in your country >> definitely surprised. a lot of head winds for the

economy. i don't think it's a sustainable growth we're going to get, but it's the political head winds may set to left by the time we get into the fourth quarter. i don't think it's likely. the election that will come before the end of october or in early november i think a hung parliament is a likely outcome there. the uncertainty plaguing the uk market we have to deal with the rest of the year and hopefully we get into end game in early 2020. >> the markets seem to follow your thinking because they're not moving at all. the market is like a brief respite if you will but overall you guys still have a lot of head winds. >> definitely. >> u.s. markets here 2, 2.5% away from record highs do you believe that we will achieve new record highs for the u.s. markets sometime this year? >> i wouldn't be surprised i don't know if it's a certainty by any means but what i would be looking to

do is look into some of the laggards u.s. health care is an area that lagged this year stocks, all-time highs they run out of room. so there's some political uncertainty around health care stocks if you're picking them up at less than 15 times earnings, growing to slightly is faster than the market. that's a defensive sector i think you really should be rotating into given the fact that it's lagged while staples and utilities have performed very well because of their high dividend yield stocks that aren't at all time highs, you'll do pretty well in. >> you're not concerned about the fact that politically and i'm sure you're aware of this, patrick, that certain leading democratic candidates have effectively called for the end of private health insurance in the united states. this is an industry squarely in the sights for some of the

leading candidates for presidents next year. >> they are. it's no certainty we get a democratic president you'll have the republican senate any way i don't think the political posturing that will happen leading up to an election will be as strong as the rhetoric leading into the election. i think there will probably be a lot of sound bites, a lot of negative headlines for health care but picking them up at 14, 15 times earnings, the growth basically is already discounting to some extent some of the political head winds that are there. it's basically a great time to be buying health care when there is a clear risk that may not materialize. i think with the republican held senate the worst case scenario the health stocks won't materialize. >> if you're talk about valuation, you could make a strong case there is no market in the world that is cheap on every single metric. you could throw a dart at a wall and it will come off with the japanese stock market being super cheap and yet investors,

they have seemed not to care at all. the nikkei can't get out of its own way. >> i think if you are worried about an economic slow down, worried about hard brexit, risk aversion we think will probably stay high for the foreseeable future and the safest safe havens are now overvalued. you have 30-year treasuries yielding less than 2% and i think looking into a way to get yen without paying negative interest rates f you buy the domestically or yen tated japanese stock you're getting dividend yields of 4 to 5% last week the japanese market has never been cheaper the u.s. market near all-time highs you're getting very discounted valuations in japanese equitieequities. >> starting the week off with

actionable information and advice patrick armstrong, thank you have a great week. >> thank you. the energy markets are simply chalk full of news on this monday morning including a major power shift in saudi arabia first, though, opec's biggest problem says it will finally cut production iraq will slice output beginning next month iraq is opec's second largest producer pumping more than 4 million barrels a day on average last month and many in opec have been frustrated by what it perceives iraq's go it alone strategy now separately, saudi arabia confirmed it has removed khalid al falih over the weekend. the move breaks with long time convention that ruling members of the party are not appointed to that position comes just days after al falih was removed from his role as chairman of saudi. this saudi move to change in leadership at the energy ministry and aramco come as the state run oil giant appears to

be shifting into high gear toward what could finally be the world's biggest ipo. kate rogers joining us now with details on that. good morning. >> good morning. saudi aramco is expected to give a lead role to jp morgan and saudi bank it will likely add citi, goldman sachs, saudi firm to the list of companies managing that offering jp morgan, morgan stanley and hscb were previously given lead roles before aramco halted both have declined to comment. aramco is preparing to sell up to a 5% stake by next year in what would be the world's biggest ipo. the saudis are gearing up to fast track a local listing on the country's main exchange bringing in the head of the nation's sovereign wealth fund as its new chairman. it's unclear where else aram koe would list but the company's board has determined that new

york would carry too many legal risks to make it a viable option the ipo is a major piece of saudi arabia's drive to transform its economy attracting foreign investment and diversifying away from oil which you know all to well all about. >> the continued s e ed consoli under the king's son. when we come back on "worldwide exchange," 14 weeks and more unrest? hong kong as police once again revert to using tear gas on pro-democracy demonstrators. a live report from the city next. plus the headlines continue for wework, as that company reportedly looking to cut down the ipo valuation yet again. later, helping traders track trump. details on jp morgan's new index that you've got to hear the name of when "worldwide exchange" returns. stick around

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♪ welcome back it's 5:12 here, 5:12 p.m. in hong kong. their evening commute just starting, but despite the removal of that controversial extradition bill last week, pro democracy protesters are not calmed in hong kong. there were more clashes between police and protesters over the weekend. this is now the 14th straight

week of demonstrations cnbc's sherry king joining us in hong kong with more. sherry >> reporter: good morning, brian. so certainly there's the sense of unfinished business for a long of hong kong protesters that's exactly the reason why we saw tens of thousands of anti-government pro-democracy protesters basically paralyzing this entire area surrounding the u.s. consulate building here in hong kong yesterday. many of them actually were calling on u.s. president donald trump to, quote, liberate hong kong and they were also calling on u.s. lawmakers to pass this bill called the hong kong human rights and democracy act as well they were singing u.s. national anthem, waving u.s. flags. really the idea is trying to get the attention of the international community, the u.s. government, the president as well as the congress in the united states because they feel

like they're not really getting much head way with the hong kong government despite the hong kong's government decision to withdraw this extradition bill last week. in the meantime, we also saw some hard core protesters sort of going in their own direction and vandalizing mtr stations and smashing windows over these mtr stations and also putting on fire the entrance of one subway station a lot of anger towards what happened with the police what they see police brutality at mtr stations in previous protests, so that's exactly what we saw on hong kong. and it certainly looks like we're going to see more of that as well, brian >> chery, those types of scenes are going to get all the visual effects of the media here and around the world, what about crowd size is there any indication that the size of the protests has shrunk

at all or maybe it's taking a more violent turn but that the people are still out in force >> reporter: well, you have to remember that this protest movement is not exactly under some kind of clear leadership at this point so, if we are looking at some massive rally or demonstration organize this particular group called the civil human rights front, then we will see one million, two million, 1.7 million strong massive rally on weekends, but when it comes to these certain daily -- day-to-day basis or protests at the u.s. consulate, we certainly saw a smaller number but has it been reduced? not exactly. brian? >> we do appreciate that, chery. thank you very much. on deck, trade tensions boiling over again, but this time in a very unusual and very un-american place and it all has to do with lobster we'll get a live report from con

tessa brewer coming up. and your stat of the day is 38 million. that's how many of you plan to gamble on nfl games this year. the american gaming association says a full 15% of the adult american population lay down real money on football this year hopefully most of those bet on the patriots last night. highlights of the late game as well stock futures up 51 and we're ckig aerhis. ♪ so servicenow put your workflows in the cloud, huh? mm-hm.

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♪ welcome back and good morning. it is 5:18 dow futures up 56 in corporate news this morning, boeing is suspending the testing of its new long haul triple 7 x aircraft after report os after cargo door reportedly exploding out during a recent faa test company spokesman says, quote the testing conditions were well beyond any load expected in commercial service and the test was run on a plane meant for ground testing only and not on actual flights also happening now, albertsons joining the list of retailers changing its policy on guns the supermarket chain says it will ask customers not to openly carry firearms at its stores, nechb states where open carry is legal. and finally, weworks, parent company is report lid considering a further valuation cut, possibly below $20 being. now "the wall street journal"

says some existing is asking to cancel all together. the we company has been planning a road show to pitch shares to new investors as early as today. straight ahead, new concern over e cigarettes as yet another mysterious death happening over the weekend. now one state looking to ban vaping completely. later, details of someone's banjo beef with wall street's famous bull. it is trending and it's coming up when "worldwi ehae" mebackdexcng ♪

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welcome back could vaping be outlawed the e cigarette industry under more pressure over its possible link to a series of fatal lung illnesses around the country latest, los angeles county resident has died from an illness that experts say could be tied to vaping. this brings the total number of such u.s. deaths to five with others reported in illinois, indiana, minnesota and oregon, according to the cdc now this comes as new york governor andrew cuomo is now asking the state's department of health to issue guidance will urge people to stop vaping completely amid these deaths much more on these stories as they develop throughout the day and weeks. let's get a check on this morning's other top headlines outside of the world of money and business phillip mena is in new york with those. good morning. >> good morning, brian talks to end the bloodshed in afghanistan are at a standstill after president trump called off a secret meeting with the

taliban at camp david that was planned for yesterday. negotiations were cancelled in the wake of a car bombing that killed a u.s. army sergeant. the taliban claimed credit for that attack. now the administration is facing bipartisan backlash over the timing of the proposed talks. republican representative liz cheney tweeted that no more of the taliban should ever set foot at camp david. urgent search and rescue mission is under way in georgia for four missing crew members. they were on a south korean tanker when it capsized and caught fire just 80 miles south of savannah. 20 people were rescued from the ship, which was on its way to baltimore, but drews had to put those rescue efforts on hold after the fire and smoke became too much it's unclear why the ship capsized. red bull's air race series come to a high flying conclusion in japan australia's matt hall is crowned the last-ever world champion as the series has been cancelled. he took to the skies one last time in his single engine race

plane navigating the course through the tight pylons in the final go around. the rules prohibit the pilots from exceeding 230 miles per hour during those races. brian, back to you. >> still pretty spectacular stuff there. phillip mena, thank you. still to come, it's jamie diamond for the win. jp morgan chase lining up to possibly take the lead in one of the biggest ipos in history. and our reporter who broke that story is coming up next. plus, big tech still under fire as a number of state attorneys generals set to unveil their massive investigation into google what does it mean for the stock? 'lwel break it all down when "worldwide exchange" returns

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♪ a new week, new record highs? maybe. futures higher as the bulls work to tack back control of this market. call it a banging bana sa. jp morgan close to winning the lead role in the aramco-ipo. and we have the details from our reporter who broke the story. you have to hear it it's the volfefe index. it's the new way to track the effects of trump's tweets on the market volfefe, you can't make it up, you're watching "worldwide exchange" on cnbc. ♪ you can hate yourself for loving somebody wu we appreciate

you loving "worldwide exchange." thanks for joining us this morning. good morning it's 5:28 here is how your money and investments look right now could we get new record highs this week? we have work to do if we want to do that. markets 2 to 3% from their record highs, depending on which index you want to pick futures are up only 50 points but they are up. a little ways to go but still the momentum certainly has shifted. more on the stock market as well with the great jeff and sven coming up in a few minutes the bond market stocks have come down but yields still very low historically the ten-year yield 1.59%. overseas in asia, continued protested in hong kong, the chinese market rising just under 1% japan rising as well and uk gdp surprising everybody at its fastest pace in more than 6 months despite all the brexit drama, the uk economy kind of chugging along, keeping calm and

spending on and we are seeing the uk market down a bit but germany and italy they are higher about 30 states attorneys general are planning to announce a broad anti-trust investigation into google today. what do you got? >> brian, you're right we are expecting more than two dozen states to announce a coordinated anti-trust information into google and that will happen this afternoon now the focus will be on whether large tech companies have engaged in behavior that stifles competition, restricts access and harms consumers. they're making this announcement in front of the supreme court, so that seems to be a pretty clear message that they do not plan to back down from this fight. i'm told this will be a bipartisan effort led by the republican attorney general of texas ken paxton earlier this summer, paxton and seven other state a.g.s met with u.s. attorney general william barr about their concerns over competition in big tech. states have also been pushing

federal regulators to expand the way they think about anti-trust, not just focussing on price but also on the value of data and privacy. in a statement earlier this summer, paxton said that technology platforms often lack the incentive to provide strong privacy protections for consumers and their dominant position in user data creates barriers to entry for new competitors. texas has been fighting google for years, brian the previous ag who is now the state governor greg abbott launched a anti-trust investigation into google all the way back in 2010 today texas will have a lot more states who have its back back over to you. >> big effort obviously here is it safe to assume that whatever occurs in the courts in the short-term, this is far from the end for big technologies regulatory issues in capitol hill >> oh, absolutely. i mean, you still have the d-oj investigation into big tech companies. the house judiciary committee will be holding a hearing on

thursday of this week in order to continue its anti-trust investigation. so the hits just keep coming from all sides. >> i'll tell you what, ylan-a couple weeks ago we were out in colorado at the technology policy institute forum with one of the top anti-trust guys at the doj and i did a panel with him and then we did some q&a afterwards, i can assure you this that much, all the big lobbyists from the tech firm are trying to get the ear of the government i'm sure you talked to them say, listen, we're big but just because we're big doesn't mean we're bad. >> that's right. part of their argument is that, one, they compete with each other. even though we talk about sort of big tech as a monolith, there's certainly competition within the industry. and also the fact that you have to be able to define the scope of competition so, for example, with google and search, they say you search for products on amazon dun that count as competition. so they're really trying to focus on what is the scope of

competition, what is the scope of these anti-trust investigations and trying to limit them. >> ylan, this is a big story, one that will happen all throughout the day today thank you very much. have a good day. >> thank you. let's talk more about all this means and possible remedies joining us now head of thematic research at global data. what's amazing, cyrus, we just talked about new record highs at the top of the show and the nasdaq getting close alphabet investors or the market or whatever you want to call it doesn't seem to care about this yet. do you think they will regret that >> i think they will regret that we have been saying for two years now that big tech are not taking regulation seriously. we think and over the next 12 months regulation hype will get much bigger, of course in europe, europe over the last ten years regulated big tech their enforcement has been much

stronger than the u.s. but i think the u.s. now is forced to act. and the key here is anti-trust investigations when they focus on a product a physical product, it's relatively easy you can go to factory and monitor that product but here is issue is data. control of data as your reporter just said. when you're monitoring control of data on the internet, in digital, in servers, it's very easy it's very difficult to track what that data is doing, therefore it's very difficult to track whether big tech is actually breaking some of the laws that already exist. >> if you had to lay betting odds, cyrus, on the chance that google, alphabet is broken up by either federal or state regulators what would those odds be >> yeah. id think some democratic candidates for the president talked about breaking up big tech i think the issue is not breaking them up, the real remedy is sorting out the

problem of data privacy, of preventing consumer harm by allowing consumers to take back control of their data. i'll give you one example. a typical anti-trust lawyer will say when we look at an anti-trust case, we look at three things that might cause consumer harm. price, quality and innovation. if you just take one of them, say price. right now we use google and facebook for free as a consumer. but, you know, that price could be wrong because facebook and google are making super normal profits, which means what they're doing with their data that data is probably not priced right. consumers should be asking more for that data. but they don't know how much to ask because when you typically sell something, you know what you're selling in this case, you sell data you don't know what you're selling because you don't know what google and facebook are doing with that. and anti-trust regulators should find out what they're doing.

that should be the crux of the investigation. >> there has been some people i know because i've heard people talking about this either off camera or on camera, cyrus, which is that maybe at some point the solution would be charging some kind of a fee. okay you can have an advertisement free no data collection version of facebook or even google if you pay x dollars per year, but nobody yet has offered that because apparently the numbers would have to be so large for these companies that they don't think any consumer would pay it, maybe three or $400 a year to have a pure privacy version of some of these products. >> yeah. >> on a separate issue, is there any sort of i guess value to this idea that maybe google actually would have more value for investors if it was broken up >> it depends how it will be broken up, google cloud, google youtube, google search it really depends. the power of google is that it

uses data from all of these sources and then sells advertising revenue. and from the u.s. perspective, the u.s. is engaged in a geopolitical trade war with china, it needs u.s. big tech to remain big because otherwise it's going to fail in next generation technologies like artificial intelligence or autonomous vehicles and so on. so it doesn't really -- the u.s. government doesn't in my view doesn't really want to break up big tech, but the eu may >> cyrus mawawalla we appreciate your news. it's a big story thank you very much, cyrus well, the energy markets are chalk full of news this monday morning, including a major power shift in saudi arabia. first, though, opec's biggest problem says it will finally cut production iraq will slice output beginning next month iraq's opec's second largest producer pumping more than 4 million barrels a day on average last month, some people think it

could be closer to 5 million many in opec is frustrated by what they perceive as iraq's go it alone strategy. the energy minister was released with the king's son. members of the ruling fam i are not appointed to the energy minister job this also comes just days after mr. al falih was removed as chairman of saudi aramco breaking news over night, jp morgan may be the lead banker on this deal if and when it happens and we are joined now with a great scoop, hu. thanks for joining us. congratulations on that. it was kind of thought that morgan stan lirks according to your reporting, but uber may have screwed up morgan stanley's chances? >> back in may we were all sitting in our seats wondering

with uber flop and morgan stanley handling that ipo, obviously didn't go well the first couple days, would it hurt them in a business snens here we are apparently with that result, which is the saudis being significant owners in uber bloomberg reporting they own at least 10% of uber and being less than pleased with the way that investment was handled if you had to pick between jp morgan and morgan stanley. >> the new chairman of aramco was the head of the pif, public investment fund. so the new head of aramco who will decide who the lead banker in the deal is a guy that's been personally burned by the uber underperformance. >> yeah. put together the pieces of puzzle i would think that morgan stanley is still going to be an underwriter in the deal. >> they need a ton of banks. >> lead left is the quarterback.

they're calling the shots. they're in all the meetings. they're prooivy about when to list, if to list if energy prices crater, equity markets crash between now and november when they're thinking about doing this, probably hold it off. >> when we say this deal, i mean, hugh, this has been the two-year ipo that never seems to materialize. sounds like from your reporting if jp morgan is lined up to be the lead banker, that means they are getting closer to actually having an ipo. >> i believe second time is a charm and this is the reason why. what happens next year, right? we have an election in the u.s so the ipo market, the ipo window may be closing if, as we edge closer to potentially end of the business cycle perhaps a recession next year, you really want to do this now. you want it so that the idea is that the first part of this listing is going to be on a domestic exchange, the wall in november and then perhaps

london, perhaps new york sometime next year it's going to be -- it's projected to be the biggest ipo in history. >> this is a big win for the jp morgan bankers if it happens, somebody is getting a big bonus. you broke the story, you should get a big bonus. coming up, bullied by a banjo. a weekend attack on the wall street icon you have to see to believe and the surprising damage done by a musical instrument this here river, contessa brewer is up north where the trade war is, i guess, literally boiling over, contessa >> good one, brian there you go i looic that have you ever been in lobster jail here in maine the dealers are feeling trapped by tariffs you know what i'm saying they're feeling the pinch. and you won't believe the twist i have coming up for you, who is really winning in this trade war

between china and the united states i have it still ahead on "worldwide exchange. this is the age of expression. everyone has something to say. but in a world full of talking, shouldn't somebody be listening? so. let's talk. we are edward jones. with one financial advisor per office, we're built for hearing what's important to you. one to one. edward jones. it's time for investing to feel individual. doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

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servicenow. works for you. welcome back we certainly talk about the u.s./china trade war pretty much everyday here on cnbc and that's because it's a big deal for the markets. but it's also a big deal for the men and women out there that are literally getting up at the same time we get up and doing a much harder job in some very cold and wet conditions contessa brewer joining us from maine where the lobster dealers are fed up contessa >> it's very true, brian here it is, it's 5:43 in the morning at the lockster company in arundel, maine. these lobsters are going to go to connecticut these boxes will head off to hong kong. you know where they're not going? these lobsters are not going to china. >> july 6th, 2018, it all came to a screeching halt

and we didn't really sell any more lobsters to china >> reporter: now these tariffs are a big problem for stephanie netto. in fact, she made such big investments and the other lobster distributors in maine to open up the chinese market and instead what has happened is her lobster sales plummeted. entirely off by 50% since tariffs went into effect she's not alone here u.s. lobster exports are down 60% the first half of 2019 when you compare that to the first half of 2018 before the tariffs were in effect and now the chinese have just really ratcheted up the tariffs another 10% on top of it a 35% september 1st. look, the bottom line is stephanie says i'm the one who was trying to balance the trade imbalance. i was exporting american goods to china, bringing chinese money back to the united states and now i don't sell to china at

all. how is that helping the trade imbalance? it's a tough problem for these guys to crack, brian. >> i like it to crack, contessa. the chinese, the middle class is expanding. i can tell you this much, they love lobster it's a lot of the dishes in hong kong and other places. they're clearly buying lobsters from somewhere if it's not america, who is winning the lobster wars >> reporter: i mean, who doesn't want the lobster one reason why they're so popular in china because when you cook them they turn bright red and that symbolizes good fortune in asian cultures. oddly enough, canada is winning the lobster wars when the tariffs went into effect, canada's exports were boosted 40% to china and here is a really odd conundrum, where are all the lobsters coming from well, the u.s. export to canada is up 130% there is suspicion on both sides of the border here that's what's

happening is these guys are really ending up in canada, packaged for shipment to china but labeled being caught in canada no proof maybe because there's not a lot of enforcement on that front, but suspicion as i said on both sides of the border. brian? >> it's not a small industry in some ways it defines maine. a lot of people make their living off it. it's a serious topic out there contessa brewer, aarundel, maine. thank you. bring a few back for us. we'll buy them here. we'll bring them back. please, thank you. we'll find out what else you'll be talking about today. time for this morning's top trending stories kate rogers is here. some people can't eat shellfish, they're allergic or whatever what's your take >> i'm so/so on lobster. it's controversial. >> it used to be served to prisoners. it was a throw away item in the 1800s. >> you put a lot of butter on anything, it's amazing right? >> the quote of the week, early contender. >> there we go. let's kick this off, brian

so a man has damaged wall street's famous charging wall street bull statue by attacking with a banjo he was seen striking the bull leaving cuts at the base of his horns. he was charged with criminal mischief, criminal possession of a weapon and disorderly conduct. in an attempt to quantify the impact of president trump's tweets on the bond market, jp morgan demised a volfefe index now the index is named after the president's infamous and still mysterious covefefe tweet. a measurable fraction of the moves. >> it's a combination of volatility and covefe. >> i wonder if there will be blowback. >> we'll be hearing if he doesn't like it. a pennsylvania couple is deep in trouble after their bank

mistakenly deposited $120,000 into their account but instead of reporting the mistake, they went on a shopping spree. they bought an suv, four wheelers and a camper, plus they gave $15,000, brian to their friends all in about two weeks when the bank discovered the mistake, they transferred the money out. the couple is now facing felony theft charges. i mean, at least they lent some money to their friends. >> they did. but now they bought is worth 35%. it's used. if someone does that, you condition do it. it's the same thing as stealing. if you have knowledge or know that money is not yours and they clearly did you can't take it. >> it's not $120 it was $120,000. it's not a small amount. >> that's a lot of lobster >> a lot of lobster. >> a lot of butter, too. right? >> that's the best you're the best. >> thank you. on deck, will we see a surge in market growth as the calendar turns to fall? or are we falling for some false

hope the great jeff and sven on next. plus, they say the best things come in small packages, does that apply to real estate your morning rbi will show you the smallest apartment for rent in san francisco and the insane amount of money it may be going for. you've got to see this to believe it because you can't go to the bathroom in your own apartment. that's how small it is i guess you could, but it would thom nss because there'so baro we're back right after this. here, it all starts with a simple...

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♪ there it is, live shot of somewhere in new york city it's still dark. fall is coming it's getting light later, 5:52 time for your morning rbi. today we're honing in on one of

the most expensive commodities in the world, san francisco real estate check this out according to rental platform zumper and business insider, this is the smallest apartment for rent in the city we're showing a picture by the way, it's basically a box. 161 square feet. it doesn't even have its own bathroom there is access to a shared bathroom down the hall this sounds like your dream living situation, it's not it's 2,300 per month in rent 161 square feet, no bathroom, one window, $2295 a month. random but hopefully interesting to somebody. let's go to the markets here dow futures up 67 points and just a couple percent away from all-time highs on most of the major u.s. averages. today, this month, this year be the year of the new record joining us now is venn hendrick

and jeff, cnbc contributor sven, what say you i know you have been a skeptic in the sense that this is maybe central-bank driven, that this is a market that is being propped up by sort of artificial forces, but you just look at the charts are the charts showing more gains ahead? >> well, absolutely. it is a basically bull market that requires central bank intervention it cannot stand on its own so that's why we have seen so much multiple expansion in 2019 vis-a-vis 2018 because we're basically the same price levels we were last year but things have gotten markedly worse we just broke out of a consolidation range in most of august that has a measure of 3068 on the s&p. there's key resistance and we're building on overnight gaps and not with a lot of intraday price discovery. the jury is still out.

we have ecb this week and the fed next week and i think those will be key decision factors for this market going forward. >> jeff, i got to apologize, buddy, i guess not for your bears but for the -- i gave you grief a few weeks ago for loving the safe haven, the boring trade. you have been right. that trade has done well are you shifting that money from that into something more risky, little more aggressive >> well, i am. we'll book profits in tlt and xlu. you're right, as we see $17 trillion in negative yields. so booking those profits but looking into ihi, the medical device that's semiconductors. i think this week sven hit the nail on the head whatever it takes. in 2019 at the last meeting on thursday, he's going to say, here you go. i think the markets will get a lot more stimulus and move

around that 3,000 level in the s&p 500 and catch a lot of shorts off sides. >> it is, sven, i hear from people on twitter and i love it, people say this whole market for ten years has been this fake, central-bank driven easy money, liquidity market i get that your job is to make money for yourself and your clients. as much as our viewers around the world may hate what is maybe behind this market, it's a market that just continues to move higher. you can hate it but it's been profitable >> absolutely. this game has worked and i think for many of us the question is simply ethicacy. the ecb hasn't been able to raise rates to 0 they're still negative and will go further negative. ultimately you have to ask yourself what is it actually producing because it's not producing growth in the long-term and what we're seeing in the united states now is a reduction in gdp growth. we saw it in q2 vis-a-vis q2

last year and q3 this year going down to 1.5% according to the atlanta fed and down to 1.1% going into q4 according to the new york fed outcast there is market slowing growth and we're also seeing slowing growth in the earnings side coming in at negative 3.5% for q3 you're dealing with multiple expansion. when you're relying on central banks to move the multiple equation forward, you're running risks that markets get disappointed and you have selloffs so for now, clearly the momentum is their markets demand these rate cuts. >> go ahead. >> sure. i'm going to push back a little bit sven the data domestically is better than we expected in 2019 yes, i get the recession nar worries in europe but right now the debt is pretty good. i travel all across the country and every city i go to it seems they're booming, san francisco, new york, austin that's why we're attracting so

many assets in our stock market is doing so much better, sven. >> let me speak about the stock market i have been tracking broader market has not been participating in fact it's been a market weakening for rally to rally to rally the value line for understanding is not track based on market cap. it's tracking based on equal weight and what we're seeing is the broader markets not participating. all the money is going still into the high cap tech stops for a rally to be convincing, remember in the last year and a half, all new highs have been sold they have not been able to sustain. for a rally to convince that dynamic in the market aspect structure has to change. we need to see the small caps the banks, the transport, everything else moving above their resistance points when they haven't really gone anywhere in the last year and a half. >> i don't disagree.

>> we're going to end it there hey, guys really good segment. i wish we had more time. we'll bring you both back on again. jeff and sven a great discussion. >> that is it for us thanks for watching. we'll see you tomorrow "squawk box" begins right now. >> good morning. cnbc exclusive report says jp morgan is close to landing lead role in the aramco public offering meantime, there's a shakeup in saudi arabia. the kingdom replacing the top emergency minister with the king's son. and a potential turning point for the e cigarette industry states are looking to crack down on vaping as more illnesses and deaths are reported. it's monday, september 9th, 2019, and "squawk box" begins

right now. >> announcer: live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here on cnbc we are lye from the nasdaq market site in times square i'm becky quick along with joe kernen and andrew ross sorkin. we have been watching the u.s. equity futures you'll see we're in the green once again nasdaq up by 24. the dow and the s&p both been up for six out of the last seven sessions and, in fact, you're looking at the dow just about 2% below its all-time high. s&p is off by 1.6% from an all-time high. so we'll see where things head as we get deeper into this week throughout the course of the morning. take a look at what happened overnight in asia. you're going to see that the nikkei ended up by about half a percentage point the hang sang was flat and the shanghai composite was up by .8 percent even though trad