>> here is your top five at 5:00 major averages just below record highs. maybe an apple today can help us could a surprise announcement be the spark that kicks the rally to second gear out of the middle east, aramco discussing the possible ipo. what is not working at wework?

and it is breakfast or bust. the latest fast food chain to cave on the i need my bacon in the morning phase. if you want breakfast, you are going to get it at that chain. welcome from wherever in the world you may be watching. i am brian sullivan. it is the event everyone will be watching today this is by invitation only apple set to make a major unveil what exactly does tim cook and company have up their sleeves today. let's see how the rest of your morning markets are shaping up

it is not looking that way now dow futures are off. apple is a big part of that story. the bond market has been ticking higher that continues with 10-year note yield at 1.63 yield. that gap continues to grow around the world, japan's nikkei rose shanghai, their market fell a touch. producer prices in china fell in august by their biggest month over month drop in three years in europe, the macrotrade there is lower they are all down. a lot of red not a big drop in europe let's talk about the macromarkets including one interesting trend you may not have noticed joining us now is dave, managing director and head of products at

direction. you noticed the trend. don't give away too much we are going to do it later on despite the downed numbers, investors made some big shifts internally >> that's right. however a big diverge ans occurred one of the biggest we've seen since 2009 investors will look ahead to see is this just a trend or move towards value. >> what do you think was this just a won-done-day wor >> we saw the big rotation from a money movement perspective it feels more like a short coming we know growth stocks have had a tremendous out performance over

five years, ten years, 20 years. >> everybody loves the faang stocks >> of course what is important is the move in rates. we have an inversion in the yield curve for august if you came back in september, it was like it didn't happen this move is more about a potential normalization of interest rates that didn't really tell you that is back. >> can you define normalization? >> i think i would be smarter than most out there, not saying i am it is important to clarify what is the driver here inflation continues to go down. >> that is what everybody is worried about. we'll get numbers out of the u.s. this week the question really becomes is does inversion stick around for

five days or 30 days that is more of a concern. >> with all due respect to other segments one day, it was inverted it is not if it inverts but how long >> exactly doesn't mean ignore it can it happen again, if it's one or two base points out, does that matter here >> no. that's really what drove people as an issue. it came on the heels of a poor manufacturing number a couple of days later, services with the impact. we are in kind of a mixed environment. there is so much uncertainty out

there. >> the bigger trend in this rotation this huge run and upside you are starting to see your clients make serious bets against gold minors. >> allowing traders to take amplified bets on expose you'res. we are seeing the bull and the bear we have seeing major inflow from bearish funds and out flows from bullish funds. there is a lot of skepticism there. if you are putting your money against gold minors and shorting the other size, you have to have some convincing to do that >> in the last couple of days, some of those bets might turn outright >> exactly >> that's how we see these products used on the flip side

as well. if we continue to see that trend play out, maybe this move in rates is the real thing. >> one day does not a trend make we appreciate you coming on. >> first, we begin this morning with breaking news out of the world energy congress. ceo of saudi aramco getting bum rushed by reporters. dan murphy was in that scrum what did he have to say, dan >> reporter: we have some developing news from the world energy congress here the ceo telling me moments ago that this company is now ready to go public as soon as the chief share holder, the saudi government is ready. weighing in on this appetite he said interest is skyrocketing listen in.

>> do you have a preference for the location at the moment >> as always, as i say, share holder will decide we are ready to list whatever they decide. >> any thoughts on a time frame? >> as highlight his royal highness, i leave it at that >> reporter: so brian, these things are always a bit rough and tumble not so much clarity on where that secondary listing will take place with new york, london, hong kong and tokyo in play. also asked how much money aramco is likely to raise no answers there he stopped short of giving us information on who has been appointed to advise on this ipo. i asked exactly what is happening with governance. this is a huge issue into the world's most profitable company

likely to go public perhaps next year he said governance is no longer an issue since we have seen the former governor removed and replaced with the head of the country's investment fund. essentially one step forward in separating church and state at aramco >> thank you for that. when we come back, trade tensions and more pressure on china to perhaps prop up its economy as a key indicator, sees its biggest drop in years. >> trouble in dearborn, michigan and we'll talk with an early investor in juul an ierntesting hour ahead. we are back right after this no matter what i wore, i worried someone might see

my bladder leak underwear. so, i switched. to always discreet boutique. its shape-hugging threads smooth out the back. so it fits better than depend. and no one notices. always discreet.

hey. you must be steven's phone. now you can know who's on your network and control who shouldn't be, only with xfinity xfi. simple. easy. awesome.

>> welcome back. 5:12 here. looking at hong kong, 5:12 p.m. there. as china's macroeconomy slowing down it could be. china's producer price index fell at the sharpest rate in three years. primarily slowing demand abroad and at cope.

china's cpi, consumer price index did rise last month, in part because pork prices soared. that that pork disease going around this could pressure beijing as the trade war with the united states escalates talking all of this with chief economist. welcome. quite a tale of consumers. on one hand, consumers are paying more, manufacturers are paying less. what does that tell you about what china's government might do >> thank you very much it is a very interesting time. number one, as you pointed, current food inflation is the main reason why cpi has been rising in the runnup to national

holidays in the key time where a lot of consumers are demanding pork and other meat substitute, it is an important time we have stablization a key word right now as we've noticed, the key concern at the moment is the lack of the command. whether consumers or corporate and investors with a real sense of lack of command we've already seen the stimulus where we'll likely see more if the data continue to turn downwards. >> do you think this will continue to turn downwards or will forces stabilize it a bit >> we've seen the rate cut this time around is a little

more special not only with the cut but the liberalization of the rate on top of that, we have two more rounds selective cuts for those that are the city commercial banks or targeted towards smaller industries what we've seen is the decisive move we've seen a reluctance to sign off on further stimulus. we've seen an increase on special infrastructure loans i don't think that is likely until at least the start of year next year. before the end of year, if we continue to see external pressures, perhaps we'll see more stimulus from both monetary

and fiscal sides >> if there was a stimulus, how would it look? what kind of stimulus do you think they would utilize >> at the moment, i think what we've seen is the inrtroduction of new policy because the key problem has been even if we do cut benchmark rates or lower interest rates, real rates aren't getting lower because we are seeing the transmission of economy not functioning properly the real reform is something that takes time. what the cuts are doing is for a further certainty at the moment to the market itself, probably

to another round, what we'll also see is a further measure on the fiscal side with local government loans and also signaling further support and if necessary, will they sign off on the necessary council. >> great analysis jinny. thank you. on deck, worries at wework as more calls come for its ipo to be shelved one outspoken tech investor says the ceo of apple needs to go step aside and make way for a new ceo that couldeiigat rnvore growth more coming up on "worldwide watch" continues after this. every new job.

and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry. words that move us all forward. the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals. talk to your advisor or consultant for investment risks and information. talk to your advisor or consultant servicenow put our this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you.

is something going around?ng in. yeah, uh, welcome to cold season. [ sneeze ] you know at cdw we get that sometimes it's smart to work outside the office. that's why we would suggest the powerful, portable lenovo thinkpad t480. to let your people stay productive from anywhere. wow, i feel really great about this. [ sneeze ] it's probably nothing... or something, really bad. you need it orchestration by cdw and lenovo. featuring the intel 8th generation core processor. it's how we care for our patients- like job. his team at ctca treated his cancer and side effects. so job can stay strong for his family. cancer treatment centers of america. appointments available now. cancer treatment centers of america. my mom washes the dishes... ...before she puts them in the dishwasher. so what does the dishwasher do? cascade platinum does the work for you, prewashing and removing stuck-on foods, the first time.

wow, that's clean! cascade platinum. >> welcome for a look at the names you need to know about today. watch out for ford shares. moody's cutting ford rates to junk status. it undertakes a costly restructuring plan ford blasts back saying the underlying business is strong. next, exxon perhaps looking to get out of the gulf of mexico.

sprain's repsol is looking at buying a portion trimming the portfolio no move there. forget the beef, where is the sausage? apparently, at wendy's in the morning. expected to launch breakfast worldwide and hiring up to 20,000 new workers to meet demand investors a little concerned about the investment they are making around the breakfast sandwich the question i have is this, will the eggs be square? >> next coming up, will after fa b -- alphabet be cut in half? >> and you are not invited

amazon and netflix and the film festival more after this. so. what's on your mind? we are edward jones, a 97-year-old firm built for right now. with one financial advisor per office, we're all about knowing what's important to you the one who matters. edward jones. it's time for investing to feel individual. as a principal i can tell you this. when one student gets left behind, we all get left behind. this is a problem that affects each and every one of us. together with ibm, we created a whole new kind of school called p-tech. within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. you know what's going up today? my poster. today, there are more than a hundred thousand p-tech students around the world. it's a game changer.

>> welcome back to worldwide exchange a dramatic day-long rescue operation to save four trapped crewmembers is now over. the sailors were the last of 24 to be saved from a massive ship that capsized.

three of the men were stuck together and the fourth was in a control room hurricane dorian is finally out to sea controversy still swirling at the d.c. ross threatened to fire officers at noaa after they contradicted president trump's tweet. california took a big step towards helping college athletes get paid that would make it possible for college athletes to get paid by the use of their name nba star lebron james supports the law and calls it a game changer. the senate could take a final vote as soon as today and it could go to the governor's desk in california. brian, back to you >> good to hear the good news

about those sailors. still on deck, one early investor in juul has to say about the growing calls for new regulation around vaping should it be outlawed? we'll be back right after this

♪ ♪ applebee's handcrafted burgers now starting at $7.99. now that's eatin' good in the neighborhood

at cdw, we get that trying to simplify data storage can get very complicated. but cdw will assist your needs and implement a dell emc unity xt all-flash unified storage platform. it delivers speed and efficiency, while providing simplicity and flexibility. for unified storage platforms, you need dell technologies, and it orchestration by cdw. . >> a big day for apple your new iphone 10 may already be old news.

today could bring about another new phone. calling it off, wework what is expected to be a nearly $50 billion ipo. now it may not happen as well. >> and movies from a amazon and netflix are no longer welcome in toronto. you are watching "worldwide exchange" here on cnbc arguably probably the best new song of 2019 by foals. check it out futures are down a bit off 62 points right now. seeing nasdaq and s&p futures off the same all the major averages hovering

below the all-time highs it looked like the markets did not move much yesterday. not true coming up, we'll tell you why monday was trulactually one of most interesting days of the year looking at the stock that can move the market like no other. apple. putting on the ritz today expecting iphone 11. perhaps a new watch and an update on tv strategy. what is likely to get the most attention from wall street with stock that is already up for the year tim lesko, thank you for joining us what are you most looking forward to today >> the street is wondering if we'll see a 5g phone we don't think so. you have to look into the phone

to find out what they've been up to a lot is made about the possibility of three cameras on the back of the phone. that would be not to just take better selfies but a window into plans for vr and ar. we'll look at what we'll be talking about six months, eight months and maybe 12 months down the road >> number one, the technology is cool for our investors watching now, they care if these things they announce are going to actually move the stock will an iphone 11, a new mac, three cameras, a new watch, will it move apple's shares >> their shares aren't patently expensive. as long as stay in and show people what they can do, it can

move the stock it is not necessarily a super cycle at this point. the promise for 5g is all over the media. you have competitors putting out those phones people unlikely to move to competitor phones for that reason they are in the roach motel of the u.s. >> someone say the roach motel is a five-car roche motel here >> i want to get your comments on this. yesterday, the half time report were out in san francisco. one of those is a tech pundent and investor he made some pretty bold statements >> you got to fire tim cook. it is a disaster

they haven't done anything innovative since this thing. the i pods are amazing they are resting on the laurels of a legacy. they need to fire tim cook, get elon musk in there >> if you look at their own tenure, was that sort of the hot take do you think he has any kind of a point? >> i don't think he has any point at all i think saying things like that gets you press tim cook is a fantastic operator he has wonderful teams of people pushing the ball forward the watch is the best seller of

watches, they are the leader in wearables. that is not to say apple continues to have the best product. i do find that some what laughable. >> all right, tim, i want to shift gears and get your take on a different story. 50 u.s. attorneys general finally unveiling the investigation into google, alphabet more on this story from london >> this latest investigation is an antitrust investigation into google 48 states, columbia and puerto rico california and alabama are the two states not involved. ken paxton is leading the investigation saying the states are initially focusing on google's dominance in on line

advertising. >> it is an investigation to determine the facts. right now, we are looking at advertising that the facts will lead where the facts will lead >> we are looking at businesses, small businesses that may be locked out as a result of what may be mondopolistic power. >> the questions that google has used its power to violate privacy. looking into similar concerns with facebook. adding momentum on the skrut piling up on tech giants the company has confirmed it is cooperating with the broader view of house tech ongoing probes around the world including here in europe

little impact on google's alphabet share price still up about 15% so far this year >> thank you tim is still with us your take. why do you think investors seem to be pretty much all but ignoring these seemingly big headlines. >> investors paid attention when this stuff started earlier this year the state attorneys general have a point in their dominance of advertising. whether they can prove whether consumer harm or business harm is a pretty high bar the federal government seems to be going after antitrust the continued secular move may be in the middle innings

if you are in the business and looking to advertise, you may be in the middle. google/alphabet may be one of them i don't think you'll see anything change towards that massive move and the advertising that will support it >> great stuff on apple and google thank you. we'll see you soon >> new details on wework, the company's largest outside investor is urging them to shelf the ipo plans. leslie picker has been on the story from the start is it looking like this ipo that was supposed to be one of the most anticipated of the year may not happen >> that is the key question.

to break it down this early in the morning, you've got soft basoftbank on one hand. their main reason of wanting to do that is to raise the secondary fund it doesn't look good to have one of these companies go public so much lower at the round they would pay for it speaking with people close to wework and everybody saying, they are still in the office wework still wants to do this ipo. their reason for doing so is that they need the money they could raise billions in this ipo based on the valuation they want to achieve they have this $6 billion credit

facility that is dependent on the completion of this deal. you are looking at potentially $10 billion to fund your business and growth, even if softbank does come in, they may not be willing to put forth $10 billion. >> employees want to get paid, investors want to get paid so what happens to wework if they don't do the ipo? >> that is a question we need to consider wework is a company dependent on growth and capital if it doesn't raise capital, it isn't able to achieve its growth plans or grow to any kind of valuation that looks like the one achieved in the private market in the past

looking at the counter party risk, which is to take on these longer term leases and let them out at shorter term durations. how does that dynamic change if their coughers are looking a little drier in terms of not having that access cash. >> thank you we look foertd rward to oouyour coverage coming up, e cigarettes and vaping and the government is cracking down. next are you proud of your al alma mater college rankings are up next (danny) let me get this straight.

after a long day of hard work... ...you have to do more work? (vo) automatically sort your expenses and save over 40 hours a month. (danny) every day you're nearly fried to a crisp, professionally! (vo) you earned it, we're here to make sure you get it. quickbooks. backing you. so servicenow put your workflows imm-hm.cloud, huh? your employees must love you. thank you. ah, you could say that. so how are things with you guys? great. thank you. thank you, sir. lunch next week? terrific. say hi to the team. will do. call my office, i will. -sounds good. alrighty. servicenow. works for you.

i can. the two words whispered at the start of every race. every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry. words that move us all forward. the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals. talk to your advisor or consultant for investment risks and information.

>> that is coming up next week that is a biggie good morning 5:43 new legal action over e-cigarettes and vaping. fda issuing a warning letter to juul as the company claims it is a safe alternative to smoking

cigarettes reviewing the letter and the new york governor is calling for a legislation to ban flavored e cigarettes in his state to ban what he calls, quote, thickening agents damaging the siting and other factors. remember, altria owns a 35% stake in juul. navigating these risks, what should they do joining us now from san francisco, manager focused on early stage cannabis companies and also in juul it is very early there an important story we appreciate you joining us what do you make about new york effectively calling for in some ways, the outlawing of vaping?

>> it is very concerning when you look at the decision to ban versus regulate and enforce. i do understand that we have to understand what is going into these products if we are talking about thickening agents or this potential vitamin e accetate that is causing illness. we need to be more knowledgeable for the betterment of consumers. definitely thinking banning is not a positive approach. the whole war on drugs, we are trying to get behind this and just trying to push it to the elicit market, if anything, that makes it worse because you have less control of what is happening. we'd rather see regulate and

enforce rather than banning and pushing to the elicit market >> if you go to any gas station and check out, you'll see hundreds of products, names you don't recognize. cbc seems to be in everything these days how much of this market is sort of black market. not expressly illegal but largely unregulated with a lot of fly by night operators? >> yes that is a great point. it has moved so fast the fda is still catching up on how they want to approach the market i was in new york a couple of weeks ago. going into these stores and seeing a whole display of products and wondering what is on display we are fortunate here in

california being a legal adult use of cannabis. it does become more nuanced but when we look into these vape products, one of the things we'd like to see, when you talk about vaping and nicotine. it falls under federal purview cannabis is currently at the state level. there could be a broader overlay with a self regulatory organization where if you had some industry leaders such as pax, maybe select, try to set some industry standards that could go across markets while we are waiting to progress on the cannabis side of things.

>> a lot of people who vape, vape all day long. it is always in their pocket, kind of like a lit cigarette in their hand all day do we need more of a campaign to say, it is not smoking a gret b cigarette but you need to be cautious about how and where you use it it may be safer than cigarettes but that doesn't mean it is okay to use enmass. >> right the great thing about technology is that it helps to inform you juul has a technology where you can measure and control who is usingnd you can measure how much you are consuming. other vape products that are tracking consumption

there could be some framing around that. if you are reaching a certain point if it is the same user it is like the fitbit, you need to get up and walk around. you are right, when is it ever good to consume in excess. >> it is an important story. we appreciate you joining us live aside from that story, let's find out what else you'll be talking about. time for your top trending stories. kate rogers is here. >> u.s. news and world report is out with the list of top colleges top spot to spriprinceton, then harvard at number two. films from amazon and netflix

have been barred from the film festival >> spirit airlines updating their seats. get this, the passenger in the middle will get an inch more space. raj released from prison over the summer and sent to home confinement. released early for good behavior he's 62 and has health issues and qualified for the first step act which is part of the criminal justice reform signed into law after kardashian pushed for him. >> so he can thank kim kardashian for his early release. >> the world of finance and big

entertainment has come together. >> i want to go back to the spirit airline story what do you think? >> an excellent poll would an extra inch mean more. >> it is not the height it is the width. >> either way, you want a little more room. >> that's a great twitter poll would that extra inch encourage you to take that middle seat >> aren't you flying out >> not tonight later this week. >> the shift in stocks nobody noticed yesterday. something happened you got to hear about 2019 has been all over the map, literally. what should you be watching as we head into the fourth quarter. what are the most important

issues in the world. you can't miss it. that's coming up next. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

>> all of your headlines in about 60 seconds elliott management reportedly started looking at at&t last year when shares suffered after the company bought time warner a report that they did not know about elliott's plan stocks moved big yesterday england's prime minister boris johnson pushing for brechl ilt parliament now suspended

and aramco preparing to go public quote, very soon the company plans to also list internationally. still no word on what exactly location or what exchange. time now to get random but interesting. this about a huge move in the stock market that probably nobody even noticed. there was actually a shift still yesterday, the middle 400 pretty much stayed put the worst 50 performing stocks soaredyesterday. prizing another 3% the smart money either went bottom picking or short or both.

those names like l brand, those surged we'll see if that trend continues. today, another example as why we only tell part of the story. >> it has been a wild ride what can you expect in the fourth quarter joining us now, chief u.s. economist. he joins us now. welcome. good morning do you think the u.s. economy in the next six to 12 months is going to go any recession? >> the short answer is no. we've seen pockets of weakness here and there, manufacturing, business investment. but we have to remember that 70%

of the u.s. economy is driven by consumer spending. that has been holding up well. why do you believe that bold call could fall to that percent. >> it is a bold call forcing trends throughout the year especially abroad and not just in the u.s. is going to drive a lot of attractiveness to u.s. fixed income assets investors will be looking for the fed to continue to ease. that data will continue to dede deteriorate. >> you also believe that will fall 0.9%.

>> that's right. we think the data will get worse and will trough with a 0 instead of a 1 handle. it is not going go into a negative territory in our base-case scenario >> does that mean more rate cuts are coming >> yes we think the fed is going to enter what we are calling an extended ratio >> 1.25% >> one and a quarter percent, that will take us back to zero >> close >> close >> if it increases faster than we are thinking, it will get to

zero right now, we are calling for 125 basis points bringing us down do 1 to 1.25% these are some bold calls. we appreciate you bringing them to us. >> that does it for us here this morning, we'll see you tomorrow. >> good morning, wework's show down with softbank they want to shelf its ipo new data out of china overnight. we'll take you live for the latest numbers it is a big day for apple. the company set to reveal a new line of products and what investors should expect. we begin right now

♪ >> live from new york where business never sleeps, this is "squawk box. >> good morning, welcome to "squawk box" here on cnbc we are live i'm becky quick here u.s. equity futures are currently a little lower nasdaq down by 26. this comes after a mixed day yesterday. we did see some strong movement in the mornings. green ar owes to the upside. you saw the s&p was down by just under a point and nasdaq down around 15 points a lot of people watching trade talks and what has been happening in the treasury ma