. it is 5:00 people at cnbc global headquarters. this is your five at 5:00. tensions mounting. new reports iran played a key role on attacks at two of the world's largest oil refineries in saudi arabia. a yellow flag. the dow snapping an eight-day win streak and opening another lower day. pressure on powell the federal reserve is kicking off the two- day policy meeting as president trump continues to call on the central bank to act. not working, wework's parent company looking to postpone its

ipo again. and what is the deal with netflix? picking up a new sitcom to take on an old sitcom. tuesday, september 17. that's what it is today. you are watching "worldwide exchange." it begins right now. >> good morning. welcome to "worldwide exchange." i'm in for brian this morning. indicating the dow will open lower after snapping an eight-day win streak you can see the dow jones is off by 27% the s&p by 2 one bright spot, the energy sector that coming off its best day since january as we saw oil

soar bond market showing some signs of activity. that 10-year note yield dropping 2.2% let's go worldwide in the asian trade. we did see movement here in japan. we are up flat but the hang seng up in the european trade, we are seeing a little bit of that with the dax off. and the cac by about .02% as well following an attack on the two biggest oil facilities reporting that american intelligence says the strikes originated from tehran as president trump says he is in no way ready to jump to a

military response. >> we have a lot of options. we want to find definitively who did this we are dealing with saudi arabia and the crowned prince and some of your neighbors and we are talking together to see what happens. >> tracie potts joins us live from washington, d.c >> reporter: three people familiar with this intelligence say there is compelling evidence, even images supporting the facts that these attacks, these drones that sparked the fires came from iran the president is dropping hints at that. rick perry have out and out said it was iran that was behind it even though yemen rebels took responsibility for that. the u.s. intelligence based on people hearing it who have seen it seem to indicate it was iran directly behind it iran directly denied that.

democrats here on capitol hill aren't disputing it either when will we see or hear any of this intelligence? it could be next week at the united nations when it is declassified that could be interesting. because president trump was hopefully planning to meet with iran's president to try to talk out this issue with the nuclear deal with the sanctions. now, if this intelligence is released and the u.s. accuses iran of being behind the attack, that meeting may not happen. meanwhile here on capitol hill, there are concerns about the language the president is using for potential responses. he said he's not eager to go to war. he also said the u.s. is locked and loaded democrats say the president needs to back off that type of language until we see some type of evidence of whether iran was involved >> thank you, tracie potts live in washington, d.c

thank you. energy majors responding to the attacks. chevron ceo discussed that issue. >> it is too early to discuss the ramifications of this. other than to say, i do think the energy sector has been some what out of favor. part of that is perhaps the market had grown a little bit comfortable with risks that we never become comfortable with. these events demonstrate those risks are real >> let's get to more insight here globe al oil research platform chris, as we talk about what the chevron ceo just stated. can this be built into the

global markets given what we saw in saudi arabia? is. >> absolutely, there is a need now. as we look back to october last year, oil prices went up to $86 a barrel because of concern. this has taken out a lot of that spare capacity potentially 3 million barrels a day which will take time to come back on to the market. more importantly has completely changed the geopolitical environment in the middle east this is a complete change of who we have seen before where we are seen attacking with infrastructure with their intent to show capability and not necessarily to cause harm. this is a shift in the level we have been seeing >> it doesn't seem as though u.s. secretary rick perry has

any real worries about this. he made statements that the world seems perfect et why i well supplied right now. is there a case to be made that, yes, that proves some of the premium but they should push prices lower longer term >> i think there is a danger here clearly the tension as you heard is mounting between the u.s. and iran the locked and loaded comment. albeit the u.s. has stepped back a little and put the responsibility on saudi arabia to take the first step in responding to this the question is how do they respond. the tension between the biggest producers in the world creates the concern. you are right, we shouldn't get carried away there is plenty of supply.

albeit, the supply will get tight. the movement of prices yesterday into the high 60s was a measured response i think as the market staurts to ingest some of the information from saudi arabia and starts to understand how prolonged this impact might be on supply, maybe as i say, 3 million barrels a day, we might start to see prices move more perhaps into the 70s on the short term. there is spare capacity. there is storage available in saudi arabia and outside of saudi arabia the iea has stocks in the reserve as the u.s. is willing to make clear should prices start to escalate. >> let's look at the demand side saudi arabia is pretty dependent

on asian markets is there a scenario in which demand from places like china and emerging markets like asia start to put pressure downward as well. >> indeed, asia supplies three quarters goes to asia. the concern initially is around supply if we do start to see prices go up, they will see the demand if we are to reach around $80 a barrel, which is not that far away, that would reduce demand growth in the world from around a million barrels a day to around half a million barrels a day. you start to have the demand response this is why we are not necessarily calling for triple

digit, which some are talking about. the real danger, the worthy that the u.s. administration should be looking at is if we do move to these higher prices, we begin to push the gleobal economy int recession. previously, this has been led by oil prices or energy prices. we are in that dangerous condition where there is significant winds the global economy is facing and high oil prices would there for push it further. a move to $80 would probably push gdp growth to about 3%. >> chris, live in london for us. new headaches for early investors in wework. we have the latest >> good morning, the parent company still says it intends to complete the ipo by the end of

the year the company had planned to launch a road show as early as yesterday. but reports say wework has struggled to generate interest from investors on concerns over the increasing losses and the amount of control by company owner howard neumann it also dropped a provision that would have allowed his wife to lead the search for his successor should he die or become incapacitied. they may seek a valuation that would be valued less than the $12 billion since 2010 softbank has been pushing for the ipo to be delayed.

they'll hold a company-wide news cast for employees much more on the saudi oil strikes and the impact on the u.s. energy. president trump dialing up the pressure on fed chairman jay powell what investors are saying. that's next. you've heard of fake twitter accounts, what about fake streaming accounts why one media giant could be in hot water this morning a busy hour when we return after this y creating the future. so, every day, we put our latest technology and unrivaled network to work. the united states postal service makes more e-commerce deliveries to homes than anyone else in the country. doprevagen is the number oneild mempharmacist-recommendeding? memory support brand.

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. welcome back to the show futures pointing to the every so slight drop. down about 17 points if these losses hold into equity cash trading. we are about one day away from a big trading. the policy meeting likely culminating in another 25-basis point rate cut the president's pressure to cut raids adding to the global economy. joining me, chief over at avalon

investment advisory. >> yes, i think markets already have that well priced in we can also be assured president trump won't be happy with only a quarter but that's probably all he's going to get. >> is there a situation we see oil prices possibly rising, maybe shorter medium term, inflation coming up a little bit. or is this a situation where the markets really need rate cuts to keep the markets going towards record highs >> i think the feds calling any rate pickup, they'll focus, if they even talk about it at all about the danger of the global economy. the interesting thing is at least for the u.s. -- this is interesting because it is different than it used to be, you actually probably see fourth

quarter a little better thanks to these higher prices and probably see a further production the problem comes more globally because of the pressure on europe and emerging markets like india that doesn't adapt as well most countries would have a hard time changing over even though you see prices going up, you see demand going higher. the rally in energy stock has been dramatic. very, admittedly depressed levels is this something that can continue if oil doesn't have a move that much higher than where we are right now >> it is a tough one we've been talking about it at avalon, we have decent expose your in the energy space which

until recently has been a bit painful. they can, in a sense, that you've got some sort of risk premium now probably rightly so built in to some of the companies. i would say we are not in a place where we necessarily chase them at this point we are happy with the ones that we own >> if you were in a situation where you needed to put new money to work with markets just away from record highs, are you value hunting or looking for companies that have been discounted the alphabets of the world, facebooks of the world >> right i still think the value side is the side there is enough worries about say the global economy, u.s. economy, not to the extreme we had. you still think about

industrials, consumer discretionary. some of the worries that that would crack. people should keep in mind that it is different thishe past, we unequivocal. now we benefit up to a point >> the benefit of higher oil prices bill stone, we appreciate you. >> thank you still coming, trouble at corning. first, your stat of the day. 1.5 billion. that's how many iphones apple has sold through 2018 according to data. apple stopped releasing unit sales last year. the new swath of phones will hit store shelves this friday. we are back right after this so servicenow put your workflows in the cloud, huh?

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pre-market shares of shopify after announcing the e commerce. off by about 5%. sea world says, ceo is leaving the company after just seven months on the job. sea world has been dealing with a series of leadership changes as it works to move fast the fall out with the documentary o black fish >> still to come, why last weekend's calls in china could call for new emtis to end the trade war. and still to come, netflix's and the price tag you have to see to believe when "worldwide exchange" returns after this break.

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>> markets are stable this morning. if everything holds true, the dow jones would be down. nasdaq down by about 5 points. a live report from saudi arabia as the country's energy minister is set for an update a cnbc exclusive of one of the

top producers. ceo of cheniere energy when we return right after this. do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

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to kick off as the central bank looks at risk to growth. and youth vaping crackdown as they look to turn the pressure up on the entire industry it is september 17, 2019 you are watching "worldwide exchange" here on cnbc welcome back to the show let's get a check on other top headlines francis rivera with more >> we start with donald trump who is heading into hostile territory. he has started a tour of california ahead of several sold out fundraisers in san francisco

and los angeles. looking to win over light blue states like new mexico and nevada voters in israel are going to the polls for a do over presidential election. netanyahu is trying to become the country's longest serving prime minister it would be his fifth term in office in netanyahu, he failed to take a win. a new election was called. today's vote could be just as close. his challenger is former military chief the two are neck and neck in the polls. watch this athlete who performed 59 thumb mock-upushupe a minute the new champ said he was happy

but he hoped to do 100 thumb ups. not bad for being all thumbs >> that might inspire me to get back to the gym. >> just doing a basic pushup >> one pushup is okay with me. thank you for that here is how your money looks now as we are half way through the 5:00 a.m. hour in new york stock futures looking fairly in5:0 kif coming off the first down day in about eight. the dow would open by about 11 points we continue to watch energy. that sector coming off its best day since january as we saw oil prices soar following those attacks in saudi arabia. more coming up on that the bond side of this, the fed kicks off a two-day policy meeting, the 10-year note about 1.8% the nikkei in japan relatively

flat with he did see down side moves in shanghai and hang seng. in europe, seeing a little stability in key forces there. the german dax as well new fall out to the saudi arabia attacks, the energy minister is set to hold conferences today where they have cut supply by about 50% as the iran supreme leader says there will be no talks with the u.s. at any level. this follows a new nbc report that sources indicate the attacks originated from iran the u.s. says they are not ready for a military response just yet. >> we have a lot of options but

i'm not looking at options right now. we want to find definitively who did this we are dealing with saudi arabia and the crowned prince and your neighbors. we are talking and we'll see what happens >> we'll see what happens. going now to saudi arabia. what is the kingdom doing now? are they looking towards the possibility that iran is responsible for this >> reporter: dom, there is so many moving parts. the king's ministers have been meeting for days now we'll head out there a few hours for the press conference you mentioned. this is something called this morning that the energy minister and certain officials will be on sight to answ site to answer questions

the mine mill they are calling this press conference. they actually chartered a flight to get all of us out there it will be interesting to see what answers we get there. will we talk about the time line forgetting output back on line and how much damage was done here another question is what is happening in the geopolitical sphere look at the president's statement. he's sending his secretary of state to riyadh to walk through exactly what happened here and what u.s. intelligence is suggesting has happened. the president hasn't held back or mike pompeo it is interesting the response we finally got from the saudi foreign ministry saying, yes, the weapons used they confirm

are from iran but they stop short of blaming tehran directly there is some wiggle room in terms of getting everybody on board there. in the last few hours, we've heard from the uae saying the international community has a role here referring to the misbehavers of iran. >> talking about at least taking the company public at aramco this is a big blow to them are there talks there about whether or not the aramco ipo will be significantly impacted because of this particular terror attack? >> reporter: no doubt those conversations are happening. at the end of the day, saudi aramco, this country, the separation of church and state

is it possible making sure that 5% of the aramco deal would be free of government intervention and operate like a proper company. that has been the conversation since it was announced this is all part of his vision 2030 the fact that they are so vulnerable to terror attacks is a problem for the saudis, no doubt. one will be which they are continually discussed at these meetings >> thank you for that. saudi arabia and a disruption in the world's energy supply not the only risk factors. we are also bracing for the next federal reserve policy decision. the trade war and impact on global growth. all of those things in play. joining me now, chief investment strategist john, we've noticed at least a little bit of perhaps stability in the marketplace we are 1% away from record

highs. yet all of these risks still remain is this just the classic cliche? >> i think so. all things remarkable, if you consider a 5% hit essentially on global oil over the weekend. that gold is just a little over $1,500 an ounce, off a recent high of $1,550 you've got bitcoin around $200 the s&p 500 nearrecord highs and technology up 30%, real estate up almost 25%, communication services around 23 and industrials around 22.7. so the markets are telling us, this is another pot hole in the road so to speak a little more than a speed bump.

it has risks fr it highlights the geopolitical risk and the vulnerability of the infa stra. so far, so good. it is well digested. >> can we talk about the rally again. there is a view that this particular move higher may not be as popular because it is not the growth or the cyclical, economically sensitive stocks that drive the reaction, the faang stocks, all of those in this sector, is this a quality move higher if it is value sectors and stocks driving those upside right now >> i'd say it is more of a broadening of interest of investors to diversify after a very strong performance of the technology the faang issues and the growth

issues among the s&p 500 we'd have to consider it really a positive move. we don't think it is a major change in leadership technology serves both consumers as well as businesses. as a result of that, we are all in a constant upgrade cycle. we look at it as a very natural move it offers opportunity for some traders to take profits and move into more value oriented areas and give a list to the small caps, for example. >> which sectors and markets have you seen. housing sector continues to move and trend higher are there parts that are still values in this marketplace >> we'd have to think so particularly, we'd see value in industrials and financials

financials have been hated for years now with expectations here that we've got a chance for some kind of a deal for china if not, in just the next few weeks, likely before the end of the year or at least before february we really have to think that where we are today makes a lot of sense the way the market is moving it is good to see as we have seen a bid for industrials and financials industrials are the new technology loaded with all kind of sensors that make industrial equipment more efficient >> does the u.s. economy need an aggressive campaign of interest rate cuts to expand the suspension >> we do not believe so. a 25 basis cut tomorrow would make all the sense in the world can conditions the way they are

around the globe, the tensions that exist and the trade war we think it doles out the cuts as needed. all that will likely change with any kind of an agreement with china. >> john, thank you we appreciate it >> thanks, dominic >> we track the fall outfrom the attacks on saudi over the weekend. we caught up with the ceo of cheniere energy. >> i want to ask you, in the follow-up to the attacks in saudi arabia, we saw huge growth does this highlight the security of u.s. oil and gas assets >> absolutely. first, it is a very unfortunate

event. it highlights the fact that there are a lot of external forces that drive the prices in the world. the u.s. is a very safe and secure area. a producer of both oil and gas it gives us all a time to pause and reflect and make sure we feel our security and our facilities are up to speed. >> do you hope in some ways, as unfortunate as that was, it does reinvigorate investors as the u.s. has really abandoned the industry over the last few years? >> i think so. i feel like i should have been a doctor this has been extremely difficult. it is very cyclical. this too shall pass. i do hope that it focuses on the total value creation for a long-term investor in this space. >> okay. the news you had after the

market closed on monday. big news a deal with eog. what does that mean for the company and the balance sheet? >> first, i'm extremely pleased and happen w and happy with my team these are very complicated it takes our gas procurement folks, shipping and marketing to work together to find solutions. in this case, it is eog resources. a very large u.s. oil and gas producer >> the last time we met was on your campus in corpus christi. i'm not sure anybody thought we'd still be here at this point, does the trade war affect the company's ability to communicate or negotiate with asian customers? >> the good news is, our chinese

customers continue to use a large amount of natural gas. their growth rate has been phenomenal it was close to 30 million tons. equal to a whole cheniere growth last month 70% of all the gas growth in the world will happen in asia. that's why we've positioned ourself with offices there we intend to by active in that market the trade war has definitely slowed progress. we are in it for the long haul we have about 70 tankers in china. we'll be there when they need it and when it opens back up. >> big interview there, thank you for bringing us those comments coming up, did at&t create fake

accounts that is coming up. taylor swift just added a new title to her resume. more on orwi ehae""wlddexcng when we return after this.

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>> welcome back, we have an ipo alert. unlike wework, ab is set to release in hong kong after postponing in july the company says it plans to raise up to $4.8 billion and will offer $1.3 billion in shares valuing the unit around $45.5 billion to $50.50 billion including an up size option which means it could sell up to 40% more shares. raising around $6.6 billion.

the company will start taking orders tomorrow. time for the top trending stories. we'll start on the media side of things >> let's do that a mixed bag today. a lawsuit is alleging that at&t forced employees to create fake streaming accounts >> this is kind of a curious story. >> yeah. >> the idea that a company of that size would b want to allegedly inflate numbers. >> i'll tell what you is attractive, this next story. larry david fans seinfeld is heading to netflix they will offer all 180 episodes starting in 2021 netflix did not report exactly

how much it paid but writes that other popular series were bought for upwards of $5 million. >> we are nostalgic by nature so we will continue to watch "the office" and "friends" and "big bang". >> for now, we will rejoice. >> "the voice" announces that taylor swift will join the cast. she will help mentor and refine their performances this will be her second time appearing. she had a similar role during the seventh season >> this is not a shameless post for our friends at nbc

is there an expectation that she will bring people flocking to the voice. >> are we placing her above beyonce? >> i hear now beyonce has a beef with other people about the emmys and things >> she has a documentary on abc. that is what is trending >> thank you now to sports and monday night football between the browns and jets featuring the return of wide receiver odell beckham jr. to his former home. he did not disappoint providing the play of the day for the browns he catches this pass over the middle and is off to the races 89 yards for the score the longest touch down of his career and he was a brown when he did it. clocked at 21 miles an hour.

cleveland wins 23-3 to even their record the jets fall to 0-2 we are not even showing you, folks, its one-handed catch from odell earlier in the game. did santa just come to town early. the nation's retailer getting an early gift later on, don't miss blackstone chairman he'll be live on "squawk binox" the 8:00 a.m. hour stay tuned for more on "worldwide exchange. 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.

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>> welcome back. time for the executive recap a new report predicts it could

be a jolly retail season topping $1.4 trillion topping last year's holiday shopping season >> china officials will be in washington this week amid of high-level talks set for later no month california governor calling for stronger enforcement against counterfeit e cigarettes just short of a whole ban but calling for prosecution on those that give minors the products. the fed is counting down to the big 2:00 p.m. decision on interest rates joining us now, from charles

schaub >> this is not part of an extended series of rate cuts but some of the weakening in other areas. i'm not sure the market will get the all clear from the fed they are looking for. instead, looking to the european bank ahead of that news and through that news. the last time we saw a big move like this, they continue to rally and could have more to go. >> if the european banks are a good signal, are there other parts of the system that could val date that feel >>s >> it is interesting to see. they'll not have that negative drag in the qe they are implementing is a boost to their balance

sheet. boosting their balance sheet from qe is not happening in the u.s. >> there is a justification in global markets that the market deserves to be at highs and trending higher because the economy here is doing better than so many other places around the world. is that the case and can we expect that economic strength relativity to continue >> u.s. economic strength is better than elsewhere in the world but that is not key to what drives corporate earnings the stocks that make up the s&p 500 get the earnings from around the world they have the same distribution to those companies in asia or and the world. the big picture tells me that things are slowing broadly the u.s. is more focused on technology if this rotation we are starting to see away from growth sectors

holds and in the past we've seen those around yield curve inversions that may suggest a rotation away from u.s. dollars. >> i'm an oil consumer i fill up my tank in my car. every day, i drive to work does that mean low gas prices are better or is the job growth from the higher cap expanding enough to out weigh that >> we just don't know yet. in the u.s., the energy sector has become more important in terms of jobs and s&p earnings relative to the overall economy and relative to the consumer i think the consumer, being in the position they are right now. good income growth going into the fourth quarter with oil prices up. now breaking out to new highs.

i think we'll be okay here from a consumer perspective the higher oil prices won't be the catalyst that throws us into the next set >> that does it for "worldwide exchange" this morning futures indicating a flat start to the day "squawk box" picks up coverage right now. >> good morning, the fed preparing to kick off a two-day policy meeting as the dow snaps an eight-day winning streak. netflix with rights to seinfeld after losing friends and the office the wework ceo postponing the ipo but remains committed to the public offering by the end of this year. tuesday, september 17, 2019. "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 let's look at u.s. equity few y turs nasdaq down by about 14 points this comes after a down day yesterday. muted losses with what is happening with the oil patch and concerns in the middle east. it did end an eight-day win streak for the dow red arrows across the board but pretty modest losses oil prices were up sharply wti and brent both up about 14%.