. it is 5:00 am here wall street looking for nek fut. one reason may be a gesture of good will. president trump extending a bit of an olive branch china is responding. the race to the bottom is back on for rates turning attention to the ecb and draghi the white house now targeting vaping and the flavored e

cigarette craze. we'll tell you about all of it on this thursday, september 12 as "worldwide exchange" begins right now ♪ >> good morning, good afternoon, good evening thank you for watching the big question is can the dow make it seven in a row not a huge gain but they are up 59 points right now. i guess so much fopution as thef the year for stocks. there are 91 stocks in the s&p 500 that are up more than 10% this month that is seven days of trading. not bad. the bond market has seen yields

come up. yielding 1.72% around the world, we saw gains in japan and main land china both rose overnight. the european markets mirroring asia very slight gains for some of the bigger ones. more on the markets as wells first, breaking corporate news this morning the london stock exchange is set to reject the hong kong exchanges $36.6 billion bid. this comes as they perceive political risk gains fall sharply wiping some $1 billion off the market value in a chance to digest the unsolicited bid. hong kong market falling 3.5%.

from raise yeah, breaking overnight, inbev with plans. the ipo is set to take place before the end of september following what they call book building week, which is next week let's stay with asia and the trade war and perhaps the art of the deal president trump tweeting he is set to delay upcoming tariffs by two weeks in a, quote, good will gesture. china is responding. let's go to eunice yoon. >> reporter: commerce ministry said china welcomes this olive branch from president trump. he tweeted today that decision was made at the request of the vice premier and due to the fact that people's republic of china

will be celebrating their 70th anniversary on october 1 the two-week delay is unlikely to be meaningful to companies involved but will mean a lot to china because they don't want to see a lot of distraction to the day they see as very important, which is the founding of the people's republic of china they've also said chinese companies have started looking at the pricing for u.s. products including pork and soybeans to possibly resume purchasing of these products the move comes after china had exempted tariffs on certain u.s. products the ministry elaborated saying the main reason was because companies here have been complaining that it is difficult to source non-u.s. alternatives.

did you know whey is important ingredient in pig let feed the u.s. is the biggest supplier to china and china is seeing a massive pork shortage. they really want to address the major domestic issues that are unrelated to the trade war but something they want to address it is also important to know that just because we are seeing these positive vibes, it doesn't necessarily translate to the trade deal at the end of the day. most still believe that gap between the two sides is really wide so we are probably going to see a trade truce, which is better than having a trade war at the end of the day >> it may be, i tell you eunice, it is not all good will this morning with china

i want to get your take on a report from the financial times saying the u.s. pentagon is compiling a list of companies that may have ties to the chinese military parentally a stepped up effort from the white house to stop chinese companies getting information. maybe an olive branch out and olive branch back. what's that story? >> reporter: i could imagine the chinese would be raising their eyebrows and not very happy about it one of the things the leadership here doesn't like to be accused of is doing anything nefarious when it comes to the u.s. military or anything else. it is also very difficult to detect who would be associated with the military and who would

not. there are a lot of people in china that have some sort of link sometimes they really don't. the bigger concern is whether or not this leads to a decoupling of the economies that's been a big question mark and seen as very difficult because the u.s. and china so integrated when it comes to the two economies. >> important story on both topics outside of trade, you are being counted down this morning to the european central bank's decision that comes at 7:45 eastern time this morning. mario draghi is expected to cut rates and possibly announce more easing actions one day after president trump urging, poking, prodding our own federal reserve saying, quote,

it is only the once and a lifetime opportunity we are missing because of bone heads. his term joining us now gina. always interesting times on the twitter machine. good to see you. you expect rates, et cetera and you expect to see a form of quantitative easing. >> many market participants are expecting the same we are expecting something in the range of $15 billion to $20 billion. it would be a good clip but wouldn't necessarily make a difference to the economy.

i think that is the biggest challenge. probably no matter what they announce today, it will not make a difference >> do you expect european equity markets to respond in a positive way. two, if they do, would that hurt our market if investor money decides they have a cheaper place to go? >> i don't know that it will necessarily cause the market to bounce you have to remember the european market is incredibly weak italy is flirting with political crisis the only thing europe has going is the fact that it is cheaper it is a much cheaper market than the united states right now. i think what will naturally happen in the united states is

we'll get to a peak in the market is that is probably going to belong in the tooth at that point, the relative value will favor europe. >> where do you see the most relative value anywhere in the world? >> the unlocked value is sitting in emerging markets. that so depends on what happens with oil and china right now oil looks terrible and the china story looks uncertain. that value may stay there longer there is more to be made there in the long term but you would have to wait out some pain for that i think europe has a little closer story that would unlock quickly. gina sanchez, we appreciate you taking a little time for us here we'll talk to you soon thank you. >> thank you, brian. the international energy

agency, the iea, out with the latest report. keeping this year and next year's oil demand forecast unchanged. it describes saudi arabia's newly appointed energy minister, one of the son's of the king as lynch pen. elsewhere, we are following new reports this morning that trump administration is weighing opening new negotiations with iran, possibly joining a french proposal to extend a $15 billion credit line to the country in exchange to coming back in compliance with the obama era deal the topic of discussion when trump and iranian president both attend the assembly in new york next month we'll talk with helima croft

we'll hear from her on all of this vaping back under fire the white house stepping up efforts to crack down on the industry we'll weigh the risk of tobacco. plus, one dental start ups have a reason to smile this morning. will the smile ipo have bite we'll find out, coming up. 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 my first job is to care for derek. everything i do is for him.

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the jayhawks get you going look at the lightening in chicago. if the jayhawks can't get you going, i can't help you. let's check on other big stories making headlines in the world of corporate america. kate rogers joining us >> kicking off with oracle mark hurd is taking time off for medical issues the company also reported first quarter profit in line with estimates but revenue that missed trump administration announcing plans to ban the sale of flavors of e cigarettes from stores following the deaths and several illnesses. following data that flavored

products are drawing kids into addiction. subject to the fda filing for approval >> smile direct club with a deal valuing the company that sells clear teeth aligners expected to begin trading later under the sim bell sdc >> still on deck, president trump putting the squash on capital gains tax relief for now. one presidential candidate has another idea >> today's big number, 78% is the amount e cigarette use increased a among high school students 2017 to 2018. we'll follow up on that and discuss whether pivang should be outlawed all together when we return

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welcome back we are remembering one of the greats boone pickens died yesterday at the age of 91. >> the corporate take overfrom texas. >> to friends, he was just

boone. but to everyone, he was a master of profession. he was a businessman from the start. >> when i was 12, i got my first newspaper job. i was a paper boy. i always had money after that. it was a good feeling. >> he graduated from oklahoma state with a degree in geology but the corporate life was not for him. before long, he started his own company, mesa petroleum with only $2500 he spent years personally drilling for oil he took mesa public in 1964 and realized what the power of stock can do turning from geology to corporate finance, he became one of the first so-called corporate raiders. he handled take over bids for

gulf, and many others. take a small stake in a company, pressure it to sell itself and become very rich in the process. >> i would be foolish to tell you we lost in a deal where we made $500 million. >> despite his known the stock holder handles the company. >> that formed a new generation of share holder activists. at the age of 68, he started his investment firm, bp capital. a nearly total flop at first set off a run to a billion dollar fortune in july 2008, he self-funded a

campaign to make america energy independent. he has been instrumental in creating a company called power line fuels he donated $500 million to his al ma matter where the football team plays now in the boone pickens stadium. he bought and moved his childhood home on to his ranch and started to drill a new oil well there >> i always say i'll retire in a box the way i'll go out. a lasting memorial to a full life lived >> he died at 91, you can say he probably packed more into those 90 plus years than most of us could do in 200 years.

known as a big time texan, his real home was oklahoma he bought back and moved the small house he was raised in on to his texas ranch recently, he moved that house again to a lot on the campus of the oklahoma state university. he's going to be buried next to it boone was a friend and mentor of mine he always treated me and those on our cnbc team with kindness ond respect. boe pickens, going home again, my friend you will be missed

>> welcome back. it is 5:25 futures are up the dow up 3% this month small caps are up big time russell 2000 up 5.5% this month. on deck, trade, vaping, oil and geolicalinopits l focus we are back after this short break. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding

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the big money question will stocks make it seven days in a row futures are higher the vaping epidemic. the white house targeting the flavored craze >> and a new startup has reason to smile this morning. you are watching "worldwide exchange" on cnbc. you thought i was going to say something else, so did i i decided not to welcome back and thank you for

being with us here i'm brian sullivan good thursday morning. stock futures, do you futures up in the green, 56 points. up across all the major indices. small caps, russell 2000 up 5.5% here is an incredible stat, there are 91 stocks in the s&p 500 that have jumped more than 10% this month, five of teem tap industry, coach, the gap, capry holdings, and ipg are up 20 plus percent in just seven trading days we are seeing the benchmark up 7.3% overnight, we saw japan and

china rise hong kong did fall about a quarter of a percent the european central bank is out with its rate decision that decision out just over two hour's time. 7:45 eastern here. it is mario draghi's final meeting as the head of the ecb to the news moving lately. trade. president trump announcing a two-week delay of tariff on chinese goods. they welcome what they call a good will gesture. amon, i wonder if it is less of a good will and more of a reflection that the tariffs were supposed to go into effect

october 1, which is arguably the biggest celebration of the year because of the 70th anniversary and a real by bad day to do that >> this could be a belated case of the white house realizing that or the white house trying to figure that chinese government won't have a whole lot of latitude to negotiate before that big event. there is a lot of pressure on chinese leaders to hold the line maybe afterwards, the political position might be different. here is the tweet where he announced this decision saying, at the request of the chinese vice premier and due to the fact that people's republic of china will be celebrating their 70th an ver anniversary on october 1, we've

agreed to move the tariff start from october 1 to october 15 just two weeks' delay but the president offering something here we have not seen a whole lot of progress from these negotiations we've seen a whole lot of tariffs. for those who want an end to this trade war, maybe this is a glimmer of hope. >> while we have you, we want to change topics to something closer to home and driving so many parents crazy, the trump administration hitting a crackdown. what is the administration doing? >> this was a relatively spontaneous decision yesterday the president i'm told, decided in the meeting he was having with key leaders that he was going to go ahead with this and called the press pool in to

announce it unexpectedly a horde of reporters went running in the idea here, fda says the details are coming the idea is that the u.s. government will take steps to block those nontobacco flavored vaping and e cigarette products that they feel are being targeted to children or are especially appealing to children they want to keep those tobacco flavored products on the market. they feel there is a public health benefit for those who feel they can wean themselves off cigarettes but the stuff targeted to children, they want to remove. here is how the president discussed this yesterday >> we are looking at vaping very strongly it is very dangerous

children have died people have died the acting commissioner is somebody that is a true expert on it as much as you can be an expert on a brand-new subject. we'll have some very strong rules and important information come out shortly >> so juul issued a statement saying they are supportive of the measure. we'll see how it all plays out >> thank you very much important topic there. joining us how to talk about the stock impact side of the story, chris, welcome yesterday, we saw fiphilip morr and stock rise as the fda looks to come down on the industry, it may not be as bad on the outcome of the equities as some thought at

first. >> if you look at those equities, they are close to 52-week lows altria i think has a 35% stake in juul. when you think that 25% of young people are engaged with e cigarettes or have used them if half of those are using flavors cigarettes, that's really only a decrease in say 12% of the people that are in it i think you'll see downward pressure but a lot of this may have already been picked up. >> here is the thing, flavored or unflavored, many of these contain nicotine i know saying last night, when this goes into effect, a lot of

teens will be jonesing any risk that 16-year-olds start smoking actual cigarettes? >> i think what they are talking about doing is banning the flavor flavored e cigarettes. you'll still have the tobacco products on the market that they can use. but what the fda will tell you, smoking is bad for you while e cigarettes are not quite as bad, it still will hurt your body the administration is trying to say, we do not want kids to start using these. they don't want that to happen again. they are trying to take action early on you'll see that as a long term

result of equity in the space. >> thank you very much >> thank you now to the race for the white house. next year, president trump removing all doubt for now that any capital gains tax relief will be off the table. candidates are getting ared for tonight are bringing the issue back into the spotlight. more on this topic keen to the cnbc audience to say the least. >> reporter: absolutely. one thing almost every single candidate on the stage will agree on and something investors need to pay attention to that is raising the tax on capital gains. right now, investment income tax is at 20% and democrats want to change that. sanders and warren want to simply tax wealth. castro wants to make investors pay taxes on their gains every

year even if those gains are not yet been realized. joe biden wants to double the rate on capital gains to nearly 40% for millionaires and railed on the possibility that president trump could lower the rate on income without approval from congress >> he is talking about lowering the rate he has no power to do this this is not a dictatorship he can't do that it would be the dumbest thing in the world we could possibly do >> unveiling a new plan to overhaul the way way we think about capital gains. that will be a blueprint for the candidates ahead over to you. >> i want to bring this up many viewers will say this is the dumbest thing he's said.

this is odd they've got this debate on at the same time of an nfl game i know they are completely different things putting it up against the most watched sport seemed a bit odd >> i have to admit i am not a football fan. i have plenty of time now to watch the debate >> i wonder about that you are in who dat nation. >> i was a mathlete, not an athlete. >> i was neither coming up, crude realities helima croft has been there all

week sitting down with the new leader and the possible iran deal that is coming up next from abu dhabi next 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.

>> next thursday get ready. get excited. good morning, new york

the dow trying to make it seven days of gain in a row. everybody is waiting for the decision of mario draghi his final meeting as the leader of the ecb the first in a series of central bank decisions we have our own federal reserve bank meeting next week i want to focus on the global part of your title, steven what do you expect from mario. is he going to go out with a monetary bank? >> the markets are hoping so >> are they needing so >> there has been a little doubt built in over the past week. we've moved from rates in some cases as low as 120 basis points >> and by the way, not in a depression >> those are depressionry rate

levels >> right we didn't even see that happen in rate history. >> they've gotten really dramatic they will have a hard time delivering today there is a great deal of disagreement over what the package would be it expects sovereigns and whether it is a tiered rate. just inadequate inflation. very, very poor but positive growth overall this is just being considered as just not good enough there is additional easing this has had good effects across its world. this will have bond yields fall to a lower rate. they had been 160. you can see that slight back up from those levels. we have seen only slight lower

lows we are really focused on the rate cut likely to be about 25 basis points. bearish expectations the fear of lower rates alone. right? >> i heard people say that you just want to shake your head and say come on. if you are running a norwegian pension fund and you need guaranteed income. a 1.6% return is a lot better than zero. >> or below zero global bond yields outside the

united states 0.5% the good news, all of us worry we've seen credit markets hold up well draghi may have a meeting in october what about our federal reserve here >> we'll see the 25 basis point cut. we have deterioration of manufacturing. we had one as recently as 2016 it did not end in a u.s.

recession the european economy is holding up better than trade. this is due to rate cuts they are going to just outlast the trade shock. consumer fundamentals are really strong we have examples as recently as 2016 but in the 1990s wherewith he can outlast a trade shock >> if our fed does that. let's say we get some kind of surprise trade deal. happens. does that mean the fed raises rates? >> doubtful but it would change their projectrtrajectory it could be a big change in trajectory even if it doesn't mean hikes >> because we are cutting in

trade wars >> part of this is the follow through. how much negative follow through is in the economy and how do they get down in terms of easing you could call rate hikes back on that would take quite a bit of time having them on hold could be meaningful. >> we appreciate it, as always thank you. we'll see you soon on deck, bottoms up. ab inbev looking at a hong kong listing. and investors in the new startup may be smiling do you futures trying to make it seven in a row of gains in a row. more after this. ah, you could say that.

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all the headlines you need in 60 seconds. the london stock exchange -- there we go. london stock exchange set to reject $36 billion offer from the hong kong exchange comes amid doubt of structure and risk ab inbev with plans of a hong kong ipo a few months ago, the company scrapped those plans that ipo to take place before the end of the month and/or call's ceo mark hurd to take a medical leave finally smile direct club

pricing inside $23 a share above the expected range valued the company at about $9 billion. shares will trade on today changing gears opec and allies are meeting on the sidelines in abu dhabi opec combined with russia have risen this week. bringing in helima croft from that meeting cnbc contributor i'm just going to say the smart, amazing, talented helima croft how does that sound? >> fantastic we didn't get signs of deeper cuts they essentially punted that they've all pledged greater confirmity with the agreement.

iraq has pledged to significant reduce their production. nigerians said they'll basically make adjustments as well russia has said they'll come into confirmity. saudis said they will monitor and do more as needed. they say they will get their act together in terms of confirmity. >> can you believe iraq has been on their own strategy. they are trying to rebuild their country after a decade of war. do you believe iraq, nigeria, russia >> wup of the problems with iraq is that production gains have come from places like kurdistan that will work to get iraq into full confirmity. that is a challenge.

what is interesting, the new saudi energy minister basically said he's going to be taking that delegation to iraq to monitor how they are doing i think it is a soft-powered approach i think he's going to try to work to get these countries to honor their commitments. the uae has pledged to go deeper next month it is a soft-powered approach to push these countries to do what they say they are going to do. >> you can't see this but we are showing video of your panel. you had really, the first interview, at the panel with the new saudi energy minister. he is won of the son's of the king of saudi arabia

a massive shake up there what was your take away from the panel? your read, what is he going to do and how will he be different? >> he spoke about breathing fire down the neck of producers to ensure they comply he came out and said, we are going to ensure a more inclusive approach, listen to opinions and work together. i think he'll be more of a diplomat just because, i think there is an iron fist i think he's going to follow up with these countries and ensure they reach their target. standing behind him is his half brother, the crowned prince that had just called the iraqi prime

minister obsticles are going to be more diplomatic but i think they'll be more rigorous in enforcement. >> i think there have been only seven or eight energy ministers. they don't make changes easily he was always good enough to us at cnbc and give us interviews he was a nice guy. was the more more about him and expense accounts or mbs trying to consolidate his power by putting one of his brothers in office >> i mean, this is somebody who spentdecades in the energy sector he is not appointed because he's a royal and loyalist he has given his heart to this

industry that said, there were real question marks about the commitment to the saudi aramco ipo. this was about getting this team in place to really push forward. >> there is news saying now that john bolton is gone, he hopes some of the sanctions against venezuela are removed. their production is about 7,000 barrels a day. it was 3.7 million years ago >> the key thing to watch is what happened in olkt. the decision about whether u.s. companies would have to exit

venezuela. chevron, halliburton and others. now there is a chance there could be another waiver to allow u.s. companies to remain in the country. >> helima croft, thank you join cnbc next tuesday, we'll go back to texas for the gas tech conference we'll be there speaking with the ce o's and maybe surprise guests first time in america in 20 years. that's it for "worldwide exchange" this morning "squawk box" begins right now. >> good morning, a good will gesture in the trade war president trump delaying tariffs on chinese goods the trump administration preparing a crackdown on flavored e cigarette products

and what it could mean ecb minister expected to announce a stimulus package that is likely to make president trump green with envy, better than orange. big announcements today. it is thursday, september 12, 2019 "squawk box" begins right now. ♪ >> announcer: live from new york where business never sleeps. this is "squawk box. >> good morning. we are live from nasdaq markets at time square i'm becky quick. mike santoli is in today you'll see green once again. do you futures up by about 60 points after a rally that w