>> it is 5:00 a.m. wall street looking to spike new concerns around the trade with china. the global rate race to the bottom likely to cast a very wide shadow. here with a developing story in turkey president trump announcing new sanctions on that country's leader with just days to go, brexit hopes are surging along with the british currency

possible progress in detroit as uaw s uaw calls on its leadership. >> we have news in excess -- i'm sorry. i had to good morning, good afternoon, good evening i'm brian sullivan thank you for joining us we begin by tracking some wild moves. you may not care about currencies but you probably do care about brexit. you can see a wild move here around 1:30 in the morning or because of new developments in brexit talks see that moving up it has come down from its highs. that market reacting to a couple

of headlines we'll get more of that coming up in a second. here is how your macroand global markets are setting up should have a normal day of trading. yesterday, columbus day, no bonds. everybody is back. kids are back in school. the bond market back open. not moving a whole lot we've split the difference over the last couple of weeks going to asia. news coming out of china we had inflation data. it came in a little hot. it was the biggest rise in that number since 2013. think about that inflation coming in nearly the highest

jump in six years, tariffs may take their toll there as well. let's get a quick check on the european market. the ftse 100 is down we are siege other markets wildly higher. equities aside the real story is what we noted. that is the british pound. we saw whip saw. let's get more on exactly what happened willem marx is joining us live from london. >> good morning, brian a couple of weeks ago, the uk came forward with proposals with a deal, a very different one initially, we saw some hesitation last week, johnson met with the minister, that seemed to go well this morning, michelle barnier

is the chief commissioner. sending senior ministers he said, quote, a deal is still possible this week he said it is time to turn good intentions into a legal text, the challenge is the time line they'd like to see the deal agreed over the next few days before they meet the british parliament, they will vote on any potential deal as soon as saturday. they could force him into an extension and could create an uncertainty we continue to see on this story. >> we've got october 31, basically two weeks left when you look at local papers, is there real hope that after

two years of false starts that we with will get some kind of a deal because now they realize their backs are literally and figuratively against the wall? >> those backs against the wall analogy is all about whether boris johnson will pursue that date the british parliament doesn't think they can the two here are the european side and lawmakers in westminster. what boris johnson is seeing today, positive noises saying a deal is, quote, very possible. talks are ongoing. we need to give them space the man that runs baparliament the inside saying that would be absolutely crucial >> willem, thank you

elsewhere in the world, a developing story in turkey as president trump signs an executive order sanctioning turkish officials and hiking tariffs on that country, quote, immediately. joining us live with more on this story >> reporter: exports told us that these new measures from the united states may have more bark than bite because turkey only sends about 5% of its steel to the united states and talks of this trade deal have already stalled. we've seen the turkish lira actually rising today and the turkish equity market rising in regards to the political reaction, we've heard talk not reacting specifically but weighing in on an opinion piece

providing some what of a spirited defense he said operation peace spring would help to restore peace and stability to the region back in the united states to await the decision to withdraw troops. we've heard from the speaker who said president trump has unleashed an escalation of chaos and insecurity falling short of reversing that disaster what we have heard is that president trump sighing he will continue to take action against turkey until this violence ends calling for negotiations and a

crease fire we haven't heard if he is going to retaliate that is one thing that remains to be seen >> give us color on what is happening with the currency the lira >> the lira was the worst performing currency. it has been down around 5% it suggests suggesters are brushing fears of this action to one side that's why the currency is rising at this hour. this could go either way really hitting the economy hard, we could also see the lira

crumbling. they've just come out of that session in crisis. >> a pleasure, dan thank you very much. state side, we've got a possible breakthrough in the now five-week long worker's strike with general motors. >> sources say the uaw has scheduled a meeting on thursday to update leaders on the status of talks with general motors reporting now that the two sides have not necessarily reached a tentative deal but progress has been made. the strike has largely shut down north american production. they have said discussions are set again for today. union workers are seeking higher pay, more job security and bigger share of the company's profit gm revealed to workers the

details. the union made a country offer on friday. shares are down from a month ago. >> thank you very much when we come back, we'll break out your third quarter earnings playbook bill gross is back he'll tell you what you want to own now and later, a bio tech getting big bounce is it? you'll have to stick around to find out sometimes, the pressures of today's world can make it tough

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>> good morning. welcome back 5:13 this morning. a live look at chicago where it is either very early or very late bill gross is it back with a new out look and maybe a warning the one-time bond king back with his out look he says will trillions of dollars around the world any further upside is limited. if you are going to own stocks, be smart adding, quote, bull markets are born by lower real rates

the historic run has been j jepardized going to our guest, erin good to see you. what do you make of that stocks have done probably better than they should have. >> looking at value for large taps what we know is that since we've been in this low rate. we are talking utilitiesand

health care those will keep you going. looking at your power company, you are going into the utilities stock, dad, if you are watching and i know he does >> what you are paying for is the consistency of earnings. this is just a safer bed in general on the rates when we have this overhead of trade

wars very high or too high? we are getting close to 18 times the earnings in an area where there really aren't other world economies to ve invest in is getting high. >> your thesis is that you'll get a lot more earnings growth for your investment dollar yes. you are going to get essentially twice the rate of earnings growth but you are getting double your earnings growth, this inversion being cheaper has happened once in probably 30

years. >> really. why do you think this happens? d all of the above >> i think it is more a fact that we've been pushing the large company positions up you've seen everybody focused on your facebooks and amazons they've really been forgotten in your view, we should be buying stocks? >> yes for me coming out of 2020 that

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>> welcome back. some new details in wework word they are considering a $5 billion package from jp morgan chase. the alternative option would be selling a controlling stake to softbank that would force the investment giant to shell out serious cash soft bank selling higher in japan now. the deal would allow wework to keep control other bad news for the company, reports say wework is expected to layoff as many as 2,000 people this week that is about 3% of the entire

work force smile direct club. the stop mildly higher right now. smile direct fell 13% after the gormt governor signed a bill companies that offer direct to custom customer orthodonic services >> southwest pilots do not expect the 737 max to return until february at earliest southwest has 34 boeing 737 max jets in its fleet. check out shares of reata fapha.

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>> welcome back and good morning. let's step aside and get a check on what else is happening out there. good morning, to you >> emergency crews are continuing to search in japan working to locate people who went missing during the typhoon. their report is that 66 people have been killed some areas received 40% of their

annual rainfall. causing 200 rivers to overflow thousands of homes were damaged. the search and rescue mission continues to work to free a worker inside a hotel that collapsed. they have expanded the zone around the site. two people died and more than 20 were hurt. >> a fire rescue team rescue a kitty that is okay and up for a dorg adoption >> i don't know the gender of that kitty but i have a great name piston >> great name.

>> when we come back, earnings season kicking off in a big way. we'll break out the possible winners and losers in banking. if you own bank stocks, this is yourweek the story that keeps on giving what lebron james is saying about the nba/china controvers it is trending and coming up when i lost my sight, my biggest fear was losing my independence. mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind.

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>> today's big market story. you got big banks. black rock, jp morgan chase, bank of america ready to roll out their numbers. today, don't forget about trade. we'll head to beijing for a live report of what may be next if anything in u.s./china trade talks. an historic shortage of homes on the market we'll tell you why on this tuesday, october 15 as you are watching "worldwide exchange" here on cnbc >> good morning. welcome back see how your money and investments look stock futures are in the green

yesterday, an odd day. the bond market closed you don't have the bond guys still responding to what happened in trade on friday. dow futures in the green the best stock in the s&p 500, midcap is kemet. ticker is kem. this month, up 17% in october. a florida company. they make electrical components. kemet is 100 years old this year so far this month, you are taking names

upgrading lows and raising the neutrals fundamentals look posed. next year, they seem overly modest and they believe the housing and home remodel back drop will strengthen by the way, that 130 target is 15% more up in the lows. up 40% more in the stock lows getting upgraded. inflation in china consumer price index with the biggest jump a six-year high in inflation in china. their markets down a little off half a percent we have a little fed speak this

morning. is st. louis fed president bullard is in london and warns the economy may slow more sharply than expected. he said, quote, insurance rate cuts may help resenter inflation and inflation p expectations he is a voting member on the momc this year heading back to beijing and get our daily trade war update where do we stand today? >> reporter: we stand with the chinese economy that doesn't appear to be doing very well producers fell at the fastest pace in three years because of increase in global demand and

energy and raw materials they expect authorities will have to priorities and possibly stimulate the economy. talking a lot about consumer prices those spiked by their quickest clip a lot of that has to do with pork pig population is down 41% because of african swine fever that is pushing up process of all proteins here saying that china would accelerate those talking more about how they want to continue to import more food.

they've talked about barely mentioning that trade talk it also pointed out they could be fully achieved as long as those two sides could point out the purchases. still a prime bargaining chip even though clearly they need the food >> truly incredible story there. >> ultimately, it all comes back to bacon thank you very much. >> according to bank stocks, this is a big week all reporting the third quarte

results. the sector is expected to have held up well earnings rates would arrive. getting more insight as i did that jim bullard story, you were doing this he is the uber dove. you disagree >> we should stop targeting the funds. they get fix ated they lost control. the value is more in control >> isn't that the way it should be though? the people actually in the

market control the market. >> the bopd market is by the way. i think they have to focus on the cash market. >> it falls into the low rating story. nobody cares more about these? >> my expects is that those will deliver the earnings growth because they are the best performers in the group. they do the best job but earnings will be light not just because of rates up, rates down but what they make on their loans.

that is at the end of the day what determines how much money they make. >> look at that chart. around 20% is that deserved? >> i own the value >> you owned bank? >> i own the bank of america reserve and the coupon, which i love >> i own them for income very little alpha here you have to get down to the smaller banks to find real growth >> what about wells fargo. i thinks it up like 5% underperforming the group. they got a new ceo >> that's right. they've been parked. they have more liquidity than even jp morgan now they are not deploying it.

they are in the penalty box until the fed let's them out >> when will that be >> couple of years >> it is politics. the chairman of the fed told elizabeth warren, we are not going to let them out until we know everything is right this used to be a perfect stock. this was a teflon stock. you never heard about it now they are the most visible in terms of problems with regulators they have to fix that. morgan on the other hand >> stanley >> jp. it is wealth management. very, very sensitive to getting growth from fees and other sources. u.s. bank, which is my favorite

is a pure bank they lend money and take care of people's money no swaps >> you own the stocks and prefers. >> thank you so much coming up, why isn't anybody moving an historic shortage of homes for sale >> whether your beauty routine is 3 steps... in we'll look at who and what for silky hair, glowing skin and healthy nails. nature's bounty, because you're better off healthy.

that's where i feel normal. having an annuity tells me my retirement is protected. learn more at retire your risk dot org. but in my mind i'm still 25. that's why i take osteo bi-flex, to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex - now in triple strength plus magnesium. >> i need to issue an on air correction paul from tampa bay, florida you got the name right one viewer, paul in tampa bay, florida company maybe knows it

well did guess kemet right thanks for watching. we are heading to what has been a traditionally slow season for the housing market the result could be the worst housing shortage in history. explaining why apparently nobody is moving or putting their home up for sale. >> all about mortgage rates. demand fell off because of a big jump in rates last summer. even spring prices didn't build in then this happened, the average rate on the 30-year fixed started falling and is a full percentage rate lower. suddenly, demand is back the supply of homes prices

around $200,000 down 10% homes 200 to $650,000 is flat. that supplies 60% of the market is expected to go negative the only tier seeing gains, the high end they are just not building the starter homes. >> it is not just the overall supply but the supply of starter homes. the affordability challenge of the starter home that has been a challenge. five years ago, that share was one in five. ten years ago, it was 40% of new home sales were priced under $200,000 >> the perfect ugly storm for builders keeps them answering the demand for entry price homes. >> you probably heard piper

upgrading lows saying the rebuild, remodel market will be stronger i know that is an industry you've been diving into, what do you make of that up great? >> we've seen a sentiment. houzz put out a survey in september, we saw when people buy houses, they fix them up they are not doing the big remodels, they are doing the smaller because of the higher cost of materials. they are going to retailers now fixing up a home there you go add a room and never move. >> time for top trending

stories. the nba controversy will not go away >> beginning to poach employees. tic toc has hired more than two dozen employees. the competitive salaries don't hurt either. facebook has been around a long time >> it is the big boy in the social media space a lot of these developers want to work for the hot new space. whether you care or not, tiktok is owned by chinese government >> i didn't even know tiktok was

a thing. >> i'm 106 years old >> anyway, a new player in the streaming wars amc theaters launching its own video on demand service to let users buy or rent. with contracts with disney, pair mont and others. when the theater runs end, they'll charge for rent. just on kdemand viewing >> it is more like the rent the movie. >> to the story that woenlt n'to

away lebron james asked about the ongoing dispute. he said he believes morey was either miss informed or maybe uneducated on the situation. i do not believe there was any consideration for the con kwenss my team and this league has gone through a difficult week people need to understand what a tweet will do to others. could have waited a week to send it he is not referring to protesters or what is at the heart, he is referring to the tweet. even that is enough to get people talking >> the season begins next week, we need to get back in the games. >> you and i need to talk this

tiktok >> it is a microphone and video into your home >> thank you to rahel who is actually 51 years old. >> don't spread these lies looking at football. scroll up. i'm going to say this. i watched the game i know my schedule is stupid i took a nap i like the packers the lions got robbed the videos clearly showed they were not illegal detroit, i'm with you. you got robbed it ended weirdly because green bay got the score with a minute left they were going to let green bay score. the backer's running back fell

down with the open path. there you go on deck, new numbers showing a surge in chinese pork prices plus we could learn a lot from shipping lanes we'll talk oil tankers and ships sappearing in the night. stick around you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you.

>> welcome back and good morning. sun not quite up dow futures are up now time for your executive recap. all the headlines you need in about 60 seconds deutsche bank reportedly paid to play in china. reportedly hiring unqualified people who had good connections

to high level members of the country's elite. the bank tells the times, it has thoroughly made investigations surging 69% from one year ago. all comes amid a shortage following an out break of the african swine fever. walmart is looking to take on amazon reportedly will offer limited time sales from third party vendors. they will get the full original price listed or walmart will eat the difference time for your morning rbi. how color tv's came be with the discovery of a rare

mineral used in coloring glass about 40 years ago, nearly every single ounce that went into every color tv screen came from just one mine far out in the california desert near the nevada border. it went bust a few years ago because china flooded the market guess what, forget tvs this is one of the most sought after elements the mine has reopened. we'll give you an exclusive look at it. we are headed west rare earths ran done but important. we'll give you the story all day on thursday. one of the greatest tanker

rallies ever what impact would this have in general. joining us to talk about it with chief shipping analyst thanks for joining us. i had a ship broker tell me he fixed a ship at $385,000 per day from the arabian gulf. normal rate would be $28,000 a day. what is going on >> it is amazing and mind bogling what a bit of u.s. sanctions can do to an oil market which was otherwise pretty flat. all of a sudden, we have drone attacks on saudi installations only two weeks later, we had the

alleged elicit traiting by one of the biggest oil companies in the world provoking u.s. sanctions. that has literally spooked every refinery and the market spore super tankers. >> put it in perspective, cosco, how many ships does that take off line is that like one fifth of the global fleet >> no. it is less than that but talk to a ship broker and he may give you a new quote reaching some $360,000 a day is amazing. we are talking about significant amount of ships being

untouchables just last week, we had those sanctions in relations to those ships calling on the ports from the chinese to the american oil major that brought the pool up we are talking approximately a percentage of the oil fleet. we are in fourth quarter where refiners had planned for massively high crude runs. they are grasping for all of the oil they can get >> you've heard of that charter. $25,000 a week ago or a month ago. >> crude oil tankers have been making more than two years now with the exception of the debt

cap bounce rally at the same point in time last year. from a fundamental perspective when we balance supply and demand where we are likely to see, we wouldn't have anything like this but sanctions have really set the market on fire. >> we appreciate it. incredible story $468,000 from $28,000. have a great day >> good morning, earnings season kicking off. we'll hear from jp morgan, johnson and johnson and more $7 trillion in assets, what is black rock we'll talk to larry fink after

his company is made famous on jeopardy and the nba's biggest star and what he said that is sparking some backlash on twitter tuesday, october 15. "squawk box" begins right now. >> announcer: live from new york where business never sleeps, this is "squawk box. >> good morning. welcome to "squawk box" here on cnbc we are live from the nasdaq marketsite on times square you'll see things are indicated up open today. we saw slides on the concerns of additional negotiations ahead of the deal coming through with china. dow futures up