don't let a cry for help go by. [music playing] happy friday welcome to "street signs." these are your headlines a relief rally reaches europe. a run of economic data builds hopes of a rate cut. a jump on a report to ramp up demand for the new iphone 11

ceo of bp dudley to retire >> hong kong's leader evokes emergency matters as she battles to contain ongoing unrest. >> this morning, i call a meeting. the chief council decided to evoke the emergency ordnance to the prohibition of face covering this will come into effect tomorrow a warm welcome to "street signs. let's look where things stand on the final day of trade it has been a volatile day of trading. up a third a percent and follows a choppy day yesterday for markets worldwide.

global markets being supported by mounting expectations by another fed rate cut at their meeting later this month to put this move into context. yesterday, the nonmanufacturing ism number initially dropped lower and price in another fed rate cut that is continuing today in europe we are seeing gains widespread ftse 100 higher at 0.4%. the dax reopens today. factoring in the impact of the wto ruling and u.s. tariffs to come into effect lagging the broader market overall green across the board diving into the sector where the majority are in the green in resources of auto, banks and

insurance. 0.9% technology, another strong gainer where tech led the charge higher chip maker are reacting very well we are seeing strong demand for apple iphone 11. the picture for this morning so far is positive. the key this day for investors is going to come later this afternoon from the payroll report the rate cut is running high the fed funds future market is pricing in a chance of a rate cut and a 50% chance of another cut in december following a run of weaker than expected data all eyes are on that report due later today. 145,000 jobs were expected to be added in september unemployment rates and hourly

average earnings growth should have slowed at 0.2% signaling they were open to another rate cut. saying he is, quote, extremely open minded to making an adjustment he is willing to do more, quote. if necessary meanwhile, the vice chairman repeated powell's mantra of acting appropriate if the labor market is very healthy. i'm pleased to bring in the first guest of global head to weigh in on that data we saw yesterday and what we can expect from yesterday's payroll report. we initially saw earlier this week the turn around came as we started to price in another fed

rate cut in that view, it doesn't make sense of how that bad data would cycle in assets. the argument you always get is that feds will cut rates both of those have shelf life. if we are getting towards the cycle, i don't think they would move >> looking at the manufacturing ism and the sub index that was the weakest and incrementally lower rates. does that do anything to change? >> i think what you are seeing is the change to the front line and that is under stress that is starting to spill over to the other parts of the economy. that's got to be a warning sign. >> the president came outright

after that manufacturing ism calling attention and putting blame on the strong dollar and the fed for the down turn we are seeing do you think we are going to see more pressure. we are adding in the presidential years it going to be a big focus are these data points worrying to you in terms of the recession on the horizon. >> i don't think we should be worried about. on the financial market, we've had two years where the u.s. was the out performer. we've got a lot lower to go. could see a yield point a lot

lower. >> you say a lot lower in yields, what kind of low are we talking about here >> this is a fed that said repeatedly you have to cut fast and furiously. if we are talking recession. zero interest rates are possible sometime next year or 2021 >> some say this report could be the last test before the fed meeting. what are you looking at most closely in this report >> we are shifting the return, which tells me payroll itself is very important we think you probably get 170 in payrolls which is better

in the grand scheme of things, it is not going to change the picture. but 170 makes an october cut kind of 50/50. >> more uncertainty. well stay with us. our u.s. colleagues will be speaking to two fed presidents today. boston fed president at 18:20 cet and cleveland fed president at 22:00 cet the hong kong government has evoked emergency powers. the leader carrie lam said a ban on face masks and anyone who violates that ruling could be fined $25,000. chery, this seems like a pretty dramatic escalation.

pretty staggering comments coming from the chief exec >> reporter: that's right. really laying out the worrying trend of escalation in the violence used by some anti-government, prodemocracy protesters the chief executive going for measure some called as a last resort the reason why some are really worried about this is potential damage to hong kong's demand and as one of the economic hubs of asia chief lam going through with the idea of invoking emergency organizations. this hasn't been done often and does have the presedence of being evoked back in 1967 when

it comes to hong kong's efforts to quell riots then. really the slogan behind the chief executive and 16 other officials, it says treasure hong kong and violence. it was really putting a foot down in terms of trying to end violence the chief executive said this is something hong kong is doing as a responsible government and saying this is something that has been mulled over for a long time during the president event, that is still ongoing, i believe. there have been a couple of mentions about other countries that had similar designations including the united states, france, germany, spain and canada certainly the hong kong government is not trying to give out this image or idea that hong

kong is in a state of emergency. that is something carrie lam has said a couple of times in that press conference trying to hone in on the idea that the government is doing something out of responsibility but that is something handleable that it is facing at the moment. as you pointed out, it is taking effect as of saturday, which is midnight tonight in hong kong, which is just a few hours away just to give you the latest among sentiment. calling for a lunch time flash mob protest. something of defiance of would say for now. >> thank you for that color. we'll look forward to follow this story as it develops. sticking in the region, the hong kong exchange is putting up a

put up or shut up. they want to boost the bid by 20% and increase the cash component to make it a viable offer. the london stock exchange rejected the current deal referring to the plan to buy refinitv the hong kong exchange has until next wednesday to make a formal a prea approach or drop the deal. coming up, ceo bob dudly signals for retirement what this means for the company, ahead. for your heart...

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quethe latest on the eu the uk is still open but unconvinced. the message from the council donald tusk. saying they fully stand behind ireland where they say the plan misses the mark. >> proposals put forward are

welcome in terms that we now have written proposals but they do fall short in different aspects. i would have to be reflective of the views of the whole of the population of northern ireland and not give anyone party to not give the veto and in detail give the customs going forward. very much the view of the republic of ireland but shouldn't be the check points. >> let's take a look at the currency and see how it is trading. the sterling up a touch above the dollar a lot of the strength in the pound has been driven by the dollar side. retreating 0.1%.

that is on the back foot again the pound being one of those it is still much stronger than it was earlier in the week above that 123 level jim, what do you make of what we are seeing right now how do you see this playing out between the eu and the uk? >> the key message we've given is that the uk is approaching a moment of clarity. we don't think that clarity is going to be a deal by october 31 some of that optimism needs to be faded that general election won't quite be a referendum. you are getting to a point where you need to look more objectively on assets. you may want to fade a little on

the optimism >> given that we are looking at the potential period of uncertainty. how do you make money given that these are in a bit of a holding pattern? the currency has been a vehicle of choice around the uncertainty. it is quite low already. volatility is coming down again. currency has been a clear place to health risks. it feels like it needs to be higher over the next three or four months. >> making the comment where brexit is almost a side show referencing the eu, u.s. trade spat does that make sense to you from a european perspective

>> it doesn't. i think there is too much weight on the weakness in the european industry on the trade war. the truth is european weakness is a lot of things the uk is part of that almost 50% of that is attributed to the uk. it doesn't matter. it is no longer a political side show, it is a drag on the economic union as well >> that is a good point. a good portion is due to brexit or a down turn in the uk as opposed to china what does that make you feel about the out look for europe and more specifically, germany >> we've made clear all year, that the industrial weakness is a lot more clear in terms of the trade war. the more it persists, the more

likely we have the fiscal adjustment next year is going to be all about fiscal stimulus. >> that's the hope but is that realistic to bank on that given the likes of what has come out of germany >> you look at rate of change, three months ago, most of the german political circle said no way. when you listen to what you are hearing today, there is more open mindedness. it is never going to happen at warp speed but things are changing quickly >> turning back to brexit, there is an argument out there that europe has the same, if not more to lose in pockets of the economy than the uk does how do you negotiate that? we heard there around the europeans sticking by in

ireland. when it comes down to it, they would given their chance to what they had at stake here >> both the uk and the eu have a lot at stake the numbers are pretty clear much of the uk goes to the european union the stakes are much higher for the uk than the eu >> all right we'll leave that conversation here but stay with us. getting right into one of the top corporate stories this morning. bp ceo set to retire he'll be succeeded by the current head of upstream business saying dudly's departure comes at a, quote, logical time for the company. he will step down after the earnings report in february next

year joining now by the equities analysts let's get into the timing point. does the timing seem logical to you? >> i think so. bob will turn 65 in 2020 we always expected that 2020 would be the time he would step down i don't think it's a surprise. >> what should we expect to see from his successor >> an interesting question one thing that has really marked bernard's tenure is a focus on digitalization and cost control. digitalization for the industry could be revolutionary as well >> an interesting point about cost control what does that mean in terms of earnings impact. do you think we'll see a change

in forecast given his track record using dig tiesation to his advantage? >> certainly bernard has put a lot of cost control into the stream we are already seeing the earnings benefit to these cost reductions this could cause us to significantly lower earnings estimates. >> earlier this morning, speaking to my colleague who is a real oil and gas guru. he made the point that dudly has been effective in terms of managing the disaster. now the bp or broader industry is determining how effective he can manage that. there is a huge investment if

they don't quicken the pace at which they adapt what do you know about the track record do you know if he'll be effectively able to track this >> first, i'll point out that he has been a tree mend jous leader for a long time. bernard will be stepping into that roll. he is very knowledgeable on that subject. he will be able to continue the process bob has put into place i expect bp will really be able to accelerate their discussion with investors including more of a move into more low carbon businesses >> what do you think investors want to hear from bp to make them comfortable >> i think the big issue now is

that the technology that is scaleable just isn't really there yet. i think it will be a combination of focusing on the existing carbon foot print and positioning in the types of technologies that will be impactful over time and moving into things like power the pace will be some what dependent on the pace of technology >> can you give us insight into what bernard looney's stance will be on shale >> there was a recent acquisition of shale in the united states. looney was involved in that. they've already started to make transition there whether they accelerate that pace or not, hard to say

certainly the equities that control a lot of that shale now have come down a bit in terms of whether they decide to acquire will remain to be seen >> the fact that this shouldn't come as a major surprise, shares are up a bit but the whole market is up it suggests the market wasn't super surprised. if i look down the line, what do you think this means for the share price. >> i think those share prices are under valued right now that will comfort the market bp is going to dictate the growth they'll be able to grow the dividend as well those are the type of things the market is looking for. this well-planned transition will give more comfort that that's going to happen

>> excellent insights there. thank you for joining us coming up on "street signs," we go to parma, italy. to gauge the full impact of tariffs on eu goods. stay with us

>> welcome back to "street signs. the relief rally and tensions in europe after a run of economic data builds hopes of a rate cut later this month >> shares on a report the smartphone maker is ramping up production to meet stronger than expected demand for the iphone 11 >> bp's ceo dudly to retire and hand the reigns over to bernard looney >> carrie lam battles to contain

the unrest >> this morning, i call a meeting. the council decided to evoke the emergency regulations ordnance to enact a prohibation of face covering this regulation will come into effect tomorrow. >> let's get a check on european markets which opened on a strong foot holding the ftse 100 now up about a third a percent. green across the board the dax carrying backerlier gains. the dax opening up suggesting the impact of the tariffs threatened against the eu digesting along all of that yesterday on the data front.

the ftse mib up about a quarter a percent. the dollar index tweeted 0.1%. the euro slightly larger the pound at the 130 mark. a lot comes alongside the fed rate cut expectations. now pricing a near 90% chance of a quarter percent cut which comes on the back of the weaker than expected services announcement let's look at u.s. futures it looks like we'll see a bit of a pull back. those numbers quite contained. that comes ahead of the crucial nonpharm report given the

movement we've seen in the data and reaction as well the stock listing may be on ice but short sellers have found a way to circle wework according to ihs market, over 10% of the debt is on loan as investors look to prot further the company is considering job cuts which could see the group's head count decline by as much as a third. in other ipo related news. french bottle maker verallia said the pricing will give it a valuation just over 3 billion euros. the ceo said the company is well positioned for its ipo >> we got a good reception

we are not exposed to cycles in the industry slow growing and faster now that glass is backes spis the glass product is very healthy. it is sustainable and we can recycle forever and gives you a design that is attractive for consumers. >> we have a voice very knowledgeable about the ipo market joining me now to talk about what we've seen recently circling the ipo market, if you will if you look at some of the stats, reporting that 48% of the ipos were reported below their offer price. of course, the run of events for-week around what was supposed to be their ipo is the market falling apart? >> i think we are having fewer

transactions coming to market. you you are seeing district things in regions and the base is a lot more selective than in previous years >> why is it there are less coming to market we have a relatively late cycle. an investor base concerned about the out look they are looking for new money to put to work in the market that investment which is why the io we ipo went up a bit. >> uber and lyft come to mind. this week both have fallen to record lows. what do you pin that down to is this a concerning signal to

investors? >> there is another example. that is priced a week or so ago. what you are seeing is a more volatile market and investors are making decisions quickly and revisiting the stories after they've come through >> at this point, in terms of the uber and lyft stories, your take is not that companies have given up and aren't going to work, it is just to see how they are going to perform in the cycle? >> i think they are relative valuations and it is a prove me stories. i think they can deliver those when it comes to the secondary

market how is that improving those that come to the market in the first place? >> i think primarily driven by the market forcing money and a lot is going into the funds that you mention. most ipos are not really relevant the pool of investors we are looking to to engage in the price is perhaps a little bit smaller than it was a couple of years ago. >> is that part of why you would expect in the days and weeks that you are now facing a more limited pool of investors when it comes to pricing the ipo? >> i think more on the relatively level of the market we have these very big spikes. what investors are forced to do

is take money out of perhaps the most recent acquisitions made. those are the big deal stocks and where they pull back the hardest. >> verallea just priced. we are seeing fewer companies come to market does the timing come to thought for you? >> this is prethe thanksgiving cut off phase. it is always a busy cut off time the deals we are pricing are generally larger investors have distinguished the quality and the stories but also liquidity. often they are a large or billion dollar plus type of transaction. >> thank you very much pushing on to trade, the eu will not immediately retaliate on

plans against the u.s. on tariffs. the commission says it will continue to include a negotiation solution despite regret arguing the eu has taken advantage of the u.s getting back to our guest. we are at a bit of a stand still waiting to see how europe will respond to this. clearly the out look would be a negotiated strategy. how does the u.s. threaten these tariffs when they know around the corner in 2020, we are going to get a ruling on boeing. does that make sense to you? >> i think it has been a strategy all along the two trends that continue is one tariffs keep going up and two, the global industrial cycle

keeps getting weaker people keep getting excited that the eu will not retaliate. i think they are under real stress >> do you see the eu is ramping up the pressure. not this casebut looking at potential tariffs on the auto sector and we spoke to analysts who are at key risk of investors. we are seeing major escalation >> our view is that tariffs on auto are a bit of a no go. there seems to be some pressure put on china that will be a lot of push back if the administration tries to raise tariffs. it is a big risk >> that support to china is bipartisan and makes it easier

for president trump to continue putting pressure on that point, we heard president trump continuing on the timing just after the ism came out he's trying to dig up the potential for some sort of progress when negotiations resume president trump is highly cognizant of stock markets he tends to ramp up a bit of a market to china. he tends to pull back in terms of pressure on china >> i think markets take these positive headlines far too much. tariffs keep going up. what we are talking about between u.s. and china is probably a truce, a delay and maybe a little buying. unless you get full roll back, the impact on industry is

already there. supply chains are already changing i don't get as positive around these like others do >> global head of desk strategy natwest markets. meanwhile, italian cheese makers say they will be unfairly hit. they say it will lead to raising prices which will hurt willem joins us live from parma. what a backdrop. how are these going to affect parma and italy more broadly >> you've got to look at this in the round, i'm not just looking at the round cheese. this region famous for this

particular type of cheese which will potentially face tariffs. it is not just parma, also gorganzola, ricotta and the sheep cheese made in the roma area 50,000 people make this stuff and a huge portion of that goes to the u.s. market the second largest market for italy behind france. other things on the market, this is a local one here. of course one thing that won't be facing tariffs is prossco another another huge market. wine for hungary not going to be facing tariffs

there are questions about that clearly the economy around here very dependent on this product and other cheeses. even last night when i arrived here, you could see dozens of milk trucks moving all over this network. thousands of dairy suppliers all of this incredible parma behind me also exempt but some pork sausages and pork shoulder will be hit as well. just to give you a taste of the impact on consumers in america and producers here in italy that will end up seeing their sales volumes dip significantly. >> willem, thank you for that taste of what's to come. that is the report from parma. just to recap where we stand,

tariffs against europe, $7.5 billion in tariffs to come into effect october 18 these pale compared to those placed on china. for more on why scottish whiskey makers will undoubtedly damage sales on our website apple suppliers look chipper looking to ramp up production on the newest iphone model. my gums are irritated. i don't have to worry about that, do i? harmful bacteria lurk just below the gum line.

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president trump has called on china about joe biden and his family this comes despite the impeachment proceedings into the probe of the phone call. >> facing an impeachment

inquiry, today president trump unprompted, publicly urged another foreign power to do the same when asked what the ukraine president would do asked about the phone call >> i thought they would start a major investigation into the bidens it is a simple answer. they should investigate. by the way, likewise, china should start an investigation. what happened to china is just about as bad as what happened with ukraine i would say president zelensky, if it were me, i would start an investigation into the bidens. nobody has any doubt that they weren't crooked. >> those words coming after a week of trade talks with the chinese. >> i have a lot of options with

china. if they don't do what they want, we have tremendous power >> has he asked the chinese to investigate joe biden? >> i haven't >> president trump referring to hunter biden who formed a private equity fund while his father was vice president. hunter biden met privately with the chinese banker the biden family calls president trump's allegations. >> i'll put my integritiy and whole career up against his long record of lying, cheating and stealing any day of the week >> a top house democrat blasting president trump's new call to china to investigate >> it endangers our elections and national security. it ought to be condemned by every member of this body. >> lawmakers today hearing from the former u.s. envoy to the

ukraine. behind closed doors, he said he warned the president's personal lawyer rudy giuliani that giuliani was receiving untrustworthy information from ukraine political figures about the bidens, according to two people familiar with his testimony. >> that is peter alexander reporting there. in the last half hour, ukraine's prosecutor general said there are around 15 investigations potentially related to joe biden's son hunter his office has not been contacted by president trump's lawyer rudy giuliani apple's suppliers put out a report that they've been asked to boost production. that sounds like encouraging signals for apple and its

suppliers. >> if does, doesn't it yes. the report that apple suppliers have been asked to increase the iphone 11 up by 10% or 11 million units. they are now aiming for a total of 80 million units. the new budget conscious phone marking the first time they have reduced the price for the upgrade. the recent surge in orders have compensated for the iphone 11 and the 11 pro model appears to go with the strategy to budget models for the high-end model

the pro max which starts at $1,090 has gone down the iphone 11 is still produced in china and washington has temporarily postponed a planned tariff on chinese imports. that hike will help demand in thanksgiving and christmas shopping seasons memories are still fresh when asked others to cancel additional production weeks after the xr hit the shelves suppliers remain cautious and say when the higher levels will mark on. back to you. >> thank you for that detail live from the nikkei facebook has launched a new messaging app called threads allows instagram users to share

stories similar to snap chat pairing back some losses later in the day facebook ceo zuckerberg has defended plans to encrypt messages on its platform the u.s. attorney general sent an open letter to zuckerberg saying the encryption efforts put public safety at risk. >> this whole issue has been ongoing for facebook give us the latest for what this means. >> it doesn't look like it is going away either. we are hearing this debate facebook came out with this whole privacy focused vision for the company in which it was going to do end-to-end encryption, so the only people who could see the messages are those sending and receiving. not the company or those

accessing them leaders in the uk and australia cosigned asking them to stop this facebook responded saying they oppose the attempts and undermines the privacy and security of people everywhere. the bigger backstory to this is that there was a u.s./uk agreement that enables more data sharing between those. that allows countries like the uk to go directly to facebook to request access on criminal investigations this all comes as law enforcement is trying to figure out how they can get access to data on these platforms. facebook is trying to project a message it is focused on privacy and security

>> i know you were discussing this he made the point that he doesn't think facebook gets enough credit for all of the effort put forward what does the analyst community think about facebook here? >> they are focused much more on the innovation coming out than the security they turn the other way on regulation they think facebook will be able to pay fines and overcome some of these and they still have those billions of users. that is keeping the stock going for now. >> let's take a quick look at u.s. futures the none farm payroll coming out and we are looking at muted trade on wall street i'm julianna tatelbaum "worldwide exchange" is up next.

it is 5:00 a.m. at cnbc global headquarters. here is your five at 5:00. break out. the playbook for wall street a wild week for stocks could today be more of the same? because there are some recession warning signs out there. a string of weak data has investors on edge with the latest report due within hours of now breaking news in hong kong as the government looks to crack down o