>> it is 5:00 a.m. here is your five at 5:00. searching for direction. wall street in a holding pattern as investors look to the first of several key meetings coming up apple delivers tim cook unveiling a host of new hardware products and details on the services suite was it enough to get investors excited? >> and peloton prepares as wework brushes off one of its biggest investors. trade tensions

a new survey shows just how much is the impact of u.s. investment in china it may surprise you. and a moment of silence as the world remembers what happened on this fateful day 18 years ago, wednesday september 11, 2019 "worldwide exchange" begins right now. good morning, a live shot of downtown manhattan as we remember this day 18 years ago it is quiet now. a lot of activity expected later today. the new york stock exchange and nasdaq will hold a moment of silence. stock futures indicating the dow will be just about flat at the

open blue chips are trying for a six-day winning streak the dow jones opened up about two points if these gains hold the s&p down about two points and nasdaq as well breaking news on the u.s./china trade war. china announcing exemptions for 16 u.s. products a sign of possible cooling of tensions the exemptions apply to goods from u.s. cancer drugs and seed. showing u.s. direct investment into china is slowing down at a just growing clip slightly there. watching stocks in asia slightly mixed. more breaking deal news. hong kong exchanges and clearing is proposing a 36.6 billion cash and stock offer for the london

stock exchange it approached the lse with that bid. last month, they agreed to by the financial information provider in a $7 billion deal. those shares up about 9% right now. investors bracing for the first in series of banking decisions due in the next coming days. nor global manager, louise, how much will they play into the central thesis in the next coming days as opposed to other macroevents? >> we've seen some quite muted movements because of this kind of waiting to see what this decision will be on thursday >> louise, with that in mind, is

there a central bank in particular we know the central fed has been driving much of the action will they set the tone given the negative environment we've been speaking about over the past few months >> certainly, because the u.s. market is a little more dependent than the rest of the world. the support we have within europe is going to be more indicative of perhaps whether there is going to be ongoing support and we haven't seen much strength out of europe so far to date >> for many investors certainly in europe and around the world is there a situation right now where you can see germany taking steps on the economy or fiscal

situation that will jump start the economy there? >> yes, certainly. the last numbers we had out of germany were not as negative as people had expected. often people are looking for the delta at the moment. they are looking at those small marginal changes those last numbers beg slightly less negative did give people some reassurance about some underlying strength. certainly with the u.s. market as well, we are seeing strong numbers as far as wage growth and that sentiment still holding up >> with those mixed messages in mind, are there places investors should look for or stay away from given the idea there is this wait and see, we don't know where we are going approach to

the economies around the world >> i think one of the key things is we have seen the defensive sectors doing really well recently they have become more expensive relative to the rest of the market in the last couple of days, we've seen a big reversal into some of those value names and because they had got so stretched versus some of those more sentiment, more growthy names. the big question is, will that be sustained going forward or not. for us, we continue to be quite well positioned within some of the defensive sectors. also looking at where some of those names have become very good from an overall attractiveness perspective >> thank you, we appreciate it apple kicking off the fall launch event with a new pair of

iphones and wearables. new details on the highly anticipated apple tv plus video streaming service. >> we are excited to tell you that the first shows will be available on november 1. [ applause ] thank you. we'll be adding more apple originals every month. apple tv plus will be available in over 100 countries at launch. it is just $4.99 month for your whole family >> joining me now, live from london a huge deal. a lot of people made a lot of fanfare about that $5 a month price point. actually free for a year if you buy an apple product >> the streaming service stol

the headlines. we were expecting hardware it is the key event to release watches and phones that $4.99 price point did surprise many who cover this company. the expectation had been around $9 disney's new streaming service is expected to be around $6.99 a month. certainly, some excitement about that and how apple is bundling this in with that one-year free if you buy mac or a new iphone we know that accounts for apple's sales. we have to look at some other hardware products until that is complete you can see it has had an impact on competitors companies like roku will be down lower even though they will be

carrying the new apple streaming service. there is this push/pull thing here >> we saw a huge reaction from the likes of disney, netflix, roku you mention the hardware side of things it is still important. is this new handset. the 11 iteration is it going to be enough to get me to upgrade my old iphone 6 model? >> it may. the 10, and now the 11 will sell for $699. that is $50 less than what the 10 r went for last year. also playing into some of the lower price competitors, particularly in china. while you would still have to

pay about $1,000 for the 11 pro or the pro max, you may be able to pay lower for earlier endations. they are banking on the fact that many people need to upgrade their devices. whether they go with some of these new models or they might go with some other modelopat toe holiday season >>hat got you excited about the event. products, the new ipad >> one thing that has been kind of not covered as much is the new watch, the 5 series watch will have this feature called always on. we've been talking about it here about how essentially the phone

display is on all the time you don't have to tap it or raise your wrist apple lowered the price for the 3 series to get more people to come into that you've seen a bright spot whether the watch or air pods. there has been a focus to make that market more accessible. we've seen that and interesting to see how that plays out in holiday sales. >> thank you so much when we come back, game over why shares of game stop may hav the controllers. and all work and no play at gaming centers and more on wework when exchange

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let's get a check now on some of the biggest stocks >> good morning. we are talking video games, arcades and high-end home furnishings. let's take a look at gamestop. they reported a bigger than expected second quarter loss this is also as consumers shift

to downloading games they will also close up to 200 stores dave and buster's second quarter beat forecasts shares down 15%. driven by less walk in customers. citing ongoing challenges. sharz of rh lower taking a look. 3% not as much. second quarter earnings. the company formerly known as restoration hardware says it does not expect trade tariffs to affect them. rh down 3% in pre-market >> thank you for that. still on deck, a cnbc exclusive with ibm executive and oil prices dropping after

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welcome back to the show let's go live to the frankfurt motor show >> john, thank you we've heard from kingpins in the

auto industry. a catch up to tesla and many chinese automakers many are missing the next big threat that is about connectivity inside the car they have found out 48% of those surveyed don't care about brands as long as the service is also cost effective and accessible. the fire back could come from digital connectivity take a listen to this exclusive with ginni rometty, the ceo of ibm. >> the issue is more than just the brand. they are linked together your brand is defined by the experience as i've looked around and you've

walked around the show, two words come to mind electric everything is electric and the experience you think about software, updates, connectivity. in the same survey, the number one thing they have to do is put in an open digital platform to support that kind of experience. >> ginni rometty there, would you believe a small number of operators say they operate on a digital platform, about 18%. so also the problem of a trade war. how are we having open platforms when there is a trade fight still brewing. >> i'm curious, brand wise, the entire auto industry is built on the idea that consumers have loyalty to certain platforms, how do you think some of these

industry effects given the fact that they own high-profile brands >> they've already been disrupted. this is the next phase they need to accept. when you think about the house, it has become an eco system. the car has meant to become the future who is going to own that space is the question. whether the auto qualities find their way or whether it is a bunch of other startups. that is the big question that is hugely disruptive for the auto executives. quickly behind me, you might be interested in the harley davidson electric bike this is connected to the ibm cloud. all connected to that service.

>> a brave new world of tech and auto partnership live in frankfurt, thank you coming up in the show, a train derailment in illinois sparking a chemical fire and multiple evacuations and where mcdonalds has philadelphia sports fans thinking it is st. patrick's day in september your stat of the day, $336 million is how much money has been raised by the cantor fitzgerald relief fund cnbc is broadcasting live throughout the course of the day as the firm works with former president bill clinton, sean penn, cindy crawford and others to raise money for charity if you want to give, go to cantor relief.org.

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>> welcome back. we are watching oil prices this morning. prices are higher as data shows u.s. stock fell more than twice the amount analysts expected crude took a sharp move after president trump announced he fired john bolton. tracie potts joins us now from washington with details. >> reporter: it was a sudden announcement now a discrepancy over whether

he was fired or resigned bolton said he offered his resignation. the president never asked for it he decided to turn that in after offering but president trump tweeting that he asked bolton to resign after strong disagreements over a number of issues including north korea, whether he should have met kim jung-un at the dmz, over iran and recently whether to invite the taliban to camp david for peace talks. bolton was against it. he is now out and there is already a short list of five people to replace him? >> who are some of those five people >> some are people in the administration, former national security advisor deputy national security advisor, representative to iran,

nsa for vice president tom bosart, former homeland security advisor and finally, the ambassador to germany. a few folks in the white house and some who used to work in the white house. >> tracie potts live from washington thank you. still to come, the bare case for apple. one analysts says he's not impressed with tim cook. a bearish take there later on, mixed signals as wework prepares to push ahead with the hotly debated ipo all of tt tethhaafr is so servicenow put your workflows in the cloud, huh?

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♪ applebee's handcrafted burgers now starting at $7.99. now that's eatin' good in the neighborhood new this morning, a survey says u.s. companies are canceling in china apple's big day. tim cook unveiling a new iphone but it is the comments on apple tv plus getting the most attention. and two high-profile startups. peloton sets ipo pricing and wework races to the markets despite big concerns you are watching "worldwide exchange" here on cnbc

♪ >> let's get a check on other top headlines. >> more than a dozen cars and a tanker went off the track causing a huge fire that could be seen for miles. no reports of any injuries more health officials are sounding the alarm about the dangers of vaping. there have now been six deaths the latest is a woman in kansas died a week after vaping for the first time a growing number of people are reporting serious symptoms too a tornado touched down no

north dakota there are reports of nearly 20,000 power outages these images show the heart hospital shatter glass was all over and the parking lot was covered in downed trees a no-travel advisory has been issued the latest storm spawned a series of tornadoes. this one is known to be one that spins anti-clockwise here is how your money looks as we are half way through the 5:00 eastern time. a relatively flat open the dow down by about 2 points and nasdaq down by 11. breaking news, china announcing exemptions for 16 types of u.s.

products we go now to beijing with the latest >> reporter: thank you, those tariffs which the chinese say are counter measures for the u.s. 301 investigation are now going to be suspended as of september 17 for a year. some are refundable. the chinese also said they could be adding more products to that list the products are mainly in agriculture and in feed and in drugs. the two sides are preparing for high-level discussions in october in washington. the foreign ministry said it hoped that the u.s. along with china would create, quote, favorable conditions for negotiations it is unclear whether or not this is a good will gesture aimed at the u.s because the chinese are grappling with serious issues.

their pig population is being wiped out by african swine flu, fall army worm invading their crop similar issues like what trump administration did pushing off the tariffs to avoid having christmas affected by the tariffs. >> we also got a new survey from the american chamber of commerce in shanghai that talks a little about the foreign investment environment. take us through the survey results there. >> yeah, it didn't look as they many u.s. companies were particularly optimistic, particularly when it came to the trade deal there are over 300 companies surveyed 26.5%. more than a quarter said they were restricting investments meant for china, outside of

china. a lot of revenues are being affected by the tariffs. they are feeling pinched at the end of the day, when they look forward they are worried about what they are seeing they said 2019 looks bad but without a deal 2020 could look even worse >> thank you we appreciate it to apple now, tim cook unveiled a host of new products a new iphone line up, updated ipads and watch and new details on the tv plus screaming service with a price that even undercuts what disney is preparing to launch next month. here is noted apple bull saying the phone is the most exciting prospect for apple >> their base is growing at call it 10% a year even though iphones were down 15% in the

past year. there is something bigger around the quality of their products. they are simply the world's greatest consumer tech product that is creating a fabric of tech around consumers that i think is dramatically undervalued by investors >> joining me now, analysts at rosenblat securities you are not quite as optimistic. take us through what you thought were the highlights and lagging headlines yesterday? >> sure. we were a little caution on apple because they are behind the 5g cycle if you remember, in 2012, apple launched the first 4g 5. every smartphone in china is

behind the 4g cycle. this year is different we are seeing most of the oems launching 5g aggressive. we believe that those chinese oems will take in market share in the high end and middle end second, this year, the upgrade for the new iphone is a little slower compared to the last couple of years. last year, you have iphone 8 8 plus upgrade to the 10 r this year, we don't have the new increase we think both face a little pressure and with this trade war, apple should face some

pressure that's why we think the market expectation for the 5g cycle it probably too high for next year. we believe apple numbers will come down. >> got you no doubt that some folks think the smartphone cycle is tapped out. the hardware side is a given increasingly, apple wants to call itself a services company apple tv plus coming out the arcade coming out. pretty soon, we'll be cutting a check every month to these guys. >> the service business actually grows pretty nicely year to year we believe tv sales still needs some time. that will not be a meaningful revolution we believe the service revenue heavily relies on their hardware

sales. talking installation base. we look at the iphone user growth is coming from a second hand iphone sales especially in the emerging market. those users don't contribute much to the service revenue. when the 5g smartphone launch by the android camp, especially middle end smartphone, they will take market share which will push the infoerphone installatin base to slow or even decline >> thank you for joining us this morning. >> thank you it has been a strong year for ipos with more than 100 companies going public it may be full speed ahead for wework sources say they are pushing

ahead with plans despite lack luster interest from investors and softbank wants it to shelf the ipo process. meanwhile, peloton is seeking to raise about $1.1 billion in its ipo in an sec filing they plan to sell shares between $26 to $29 a piece their road show could launch as early as today >> let's talk with john who is head of national markets and our own leslie pinker. leslie, we want to hear whether or not this environment for wework will kick off favorably >> i think the environment for wework is more a reflection on what is going on in the private

fundraising market they were able to obtain the valuation relative to what the markets were willing to pay for wework, that now seems a bit high public investors have even been turning up their nose to one-third of the level i think you are going to actually continue to see even more of this divergence as more of these of these unicorns on te market in terms of all of the cash that has been circumstanlating >> a reckoning a strong word there.

the idea that the ipo market has not been as strong as it was in the last couple of months as it was with levi and beyond meat. is the ipo environment from the underwriter area still healthy >> the demand is there we are seeing a continuation of filings. this window we are about to enter from post labor day, we've seen peloton going into a two-week road show you are seeing a lot of activity now until the end of theyear

so those type of companies are coming peloton, wework, two names in the news right now is there a sense whether or not one has a better shot at a good debut? we know the hurdles wework is facing right now >> sure. peloton is just starting its road show today. they operate in hardware, software, media, logistics they are all over the place. it will be interesting to see what investors are willing to pay at the range they set last night. that said, they have not had some of the major headline risks

wework had that caused investors to bulk. stemming from the large losses, business model as well as some of the corporate governance that concerns them about wework not to mention the fact that every day, we are seeing headlines about potential delays it is on it is off. they've bailed them out with private investment all of those things tend to spook investors. putting capital up in an ipo any ipo is a major risk investment >> today is september 11 an important day for all of us it holds an important day in the heart of drexel because you are a veteran oriented firm. >> we'll be memorializing those

on this day that lost their lives and those who went forward to fight to defend our freedom so we wouldn't have a repeat day like that. september 11 is significant day for us and our veterans. >> captain john martinko, retired. leslie pinker, we appreciate your in sights coming up, ever wish you could own a magical piece of olympic history. why the 1992 olympic dream team is trending decades later. and later on, how worried is jamie dimon about the risk of 0 interest rates we'll find out after this.

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>> a live shot of new york city on this september 11, 2019 let's find out what else you'll be talking about today we return back now what am i going to be drinking in philly? >> only in philly. bringing back the sham rock shake for a limited time and

only in philadelphia with the stomp, shake campaign supporting the eagles and taco bell launching the vegetarian menu. releasing a statement saying other fast food restaurants are just dipping their toes in the space, they have long been in the space with the bean burritos being the second top spelling item >> what is their top selling item i do like taco bell. this meatless thing. if there was a place you were going to put meatless in terms of alternative meats, it is mexican food because taco meat is not discertainable.

that's the way to go. >> as a vegetarian i'm here for all of this >> you are and a philly person >> i am loving this block. power ball windfall in the northeast. they won like $100,000 magic johnson's game-worn jersey from 1992 goes up for auction today. a starting bid at $25,000 but the bidding is expected to surpass $150,000 >> that wouldn't surprise me if it goes for even more. the amount of money people spend especially for a big piece are

always huge. >> a bigger golden doodle. >> in california, could spell trouble for uber and lyft. and skeptical about any recession risks when "worldwide exchange" returns.

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>> out of chicago, where our next guest hails from. the headlines you need in 60 seconds. proposing a $36.6 billion cash

and stock offer for the london stock exchange buying refin tiff in a deal worth $27 billion. a bill that passed in the california state legislature in the senate that could spell trouble for companies like lyft and uber who rely on thousands of so-called gig workers, the bill would require more protections for more employees jamie dimon isn't expecting u.s. interest rates to hit zero, the bank will be preparing for it. the recent fallen rates had taken him by surprise after he predicted rates would rise last year markets now pointing to a stable open now our guests, jeff, we'll

start with you first markets are now 2% away from record highs again, interest rates seemingly back on the rise is that an all clear for the markets now? >> i don't think it is an all clear but short terms we are seeing it is interesting, you bring up the treasury curve the two-day biggest gain has moved up to lower prices we haven't seen a move since 2011 we saw more printed. that is a sigh of relief >> so mark, interest rates, have they bottomed out? have the move infinances moved

>> for the long end of the curve, b i would expect to go up the most interesting thing i have seen is this heavy rotation whether consumer staples which were rich. this year's worse performers were up big. you look at macy's and nordstroms high pe stocks underperforming what that means is that the market is reassessing whether a recession is actually right around the corner. the market seems to believe it is not >> what prompted it?

usually, there is something. there has to be a reason why there is a quote, unquote rotation even starting or one that has legs. was it interest rates that really prompted this whole get me out of the service stocks is. >> when you talk about repositioning going into the ecb meeting. yesterday was a great illustration what does that mean they are booking profits up nearly 2.5% getting ready for the end of q 3 and q 4. if we do see that trade execution. so this is a different set up than it was last year. we were kind of steadily grind being towards these record highs only to see a sell off is that something that happens

again? >> be mindful of the vix now above 16 optimistic as long as the trade tariff conversation remains optimistic >> mark, what goes on your shopping list with rates going the way you are talking about and ahead of rotation. companies include what >> the strongest part of thecour that's only 70% of our gdp consumer confidence is high, wages are growing. the consumer is strong but their buying preferences have changed. they are now more price conscious. you look at tj maxx and dollar general. tj maxx is really the best off priced retailer out there.

when all of that apparel doesn't get sold at nordstroms or other places, it goes to tj maxx and dollar general, most of their stuff are consumables. >> that does it for "worldwide exchange." "squawk box" picks things up now. >> ahead on the trade front, china puts out a list of items exempt and ipos with peloton. the company's valuation could hit $8 billion details are straight ahead california's senate just approved a bill that could be a direct threat to the business models of companies like uber and lyft it is wednesday, september 11.

18 years 2019 and "squawk box" begins right now. >> live from new york where business never sleeps, this is "squawk box. >> good morning. welcome to "squawk box" on cnbc. i'm becky quick. andrew is off today. we've been watching the u.s. equity futures you'll see the dow futures are indicated up again the dow has been up all week the nasdaq was down after a third session in a row nasdaqdown s&p indicated down as you mentioned, a lot of technology stocks have been rotating >> for two