it is 5:00 a.m. at cnbc global headquarters. one and done wall street giving back some of yesterday's massive gains. the trade war, back on with china issues a threat to washington over unrest in hong kong new developments overnight in turkey as vice president mike pence travels to that region today. a $600 million mistake could rise to more than $1 million for

money manager ken fisher and forget the stock of the day and why many are set to soar it is wednesday, october 16. "worldwide exchange" starts right now. >> good morning. welcome to the show. stock futures indicating the dow will open modestly lower at the open you can see if these futures open, the dow would open down by about 57 points and the nasdaq around 15 to 16. the blue chips open at 27,000 for the first time since september. the dow and s&p 1% away from record high levels

the 10-year government note a tick lower at 1.733% two-year note, 1.57% in the asian trade, japan now up about 1% hang seng up about half a percent. in south korea, the central bank lowering the key rate a quarter of 1% as expected to a report low 1.25%. more room is still there as well european trading, we are seeing a little negativity there. german dax as well and the german ftse off as well. new developments in the u.s./china trade war issuing a strong warring to d.c. after the house backed the

prodemocracy movement in hong kong china saying expect, quote, strong measures if progress is made as a new poll shows china's gdp is likely to slow to a 30-year low and even cooler 5.9% in the year 2020. to the latest in the ongoing situation with turkey. that country's president is rejecting calls to the u.s. for an immediate cease-fire. live with the latest dan. >> reporter: dom, vice president mike pence is now in bound joined by secretary of state mike pompeo. their mission is to convince the

president erdogan to lay the groundwork for a possibility negotiation with president trump saying sanctions against turkey's economy and government ministers will remain in place until the u.s. demands are achieved listen in. >> we are being very tough on turkey and a lot of others they have to maintain their own properties now they have to maintain peace and safety and we'll see what happens. we are asking for a cease fire we put the strongest sanctions you can imagine. we have a lot in store if they don't have an impact including massive tariffs on steel they ship a lot of steel to the united states. they make a lot of money shipping steel they won't be making so much money. >> reporter: the president also threatening there to level new measures if it fails to meet the

united states demands. we've heard from turkey's president who said he will not be enacting a cease fire clearly, it could be a tough negotiation ahead. back to you. >> thank you for that. it is great to have you here you heard dan murphy's report in syria and turkey we've heard about the election and trading. from a trade perspective, what is the thing investors need to watch the most >> i think they are telling us the most it is really about what is going on below the surface there is a lot of interesting

dynamics with regard to the story where it has been a flight to safety. it has been a case of i want to be vested in things like utilities and something that acts as a proxy. despite the market levels, the nature and sentiment is not particularly there >> interesting, how do you craft a trading strategy around that if things are some what moved towards the safety and risk aversion or sectors that might be the ones you want to focus ongoing ahead? >> the risk right now is crowded. that is the first thing investors need to think about. clearly, this worked for a

substantial period of time and you could argue it could work arguably since 2010. it is becoming incredibly crowded and known with record levels of low yields the risk we have now and what we think of as a team a lot is how we petition for an event that is something we need to be mindful of >> last year, we notice this is the best performing sector some what argue a lot of that has to do with what happened and about how to tackle health care, managed care companies are taking a hit how does the election play out in terms of how players should be strategizing going forward. >> you highlight health care but actually when we think about the

risk from any kind of political narrative, there is risk around tech and financials and energy as well. what is interesting is that health care had almost a miopic focus where they are at least partially discounting the outcome in 2020. it is the other sectors that are probably more interesting in terms of the spotlight on them and potential risk >> is it all just noise? should investors be paying attention to the outcome of longer term plans? >> the issue with markets now is that you could have 12 to 18-month views but with the ability to trade and stands of shocks yes, we could have a 2020 election outcome what investors are trading is

that who will be the democratic nomination >> should the fed be in the conversation now >> there are obviously over factors at play. the biggest issue is do they have the potential si with regard to conventional measures? >> do they >> it is hard to fight the fed if the fed do have a problem among their perception, they are not alone. >> thank you very much appreciate you this morning. let's move on here, this morning, a fall out over a sexually charged speech by billionaire ken fisher after he faces growing pressure what is the latest on the

backlash >> fidelity investments said it is reviewing its relationship with fisher after his comments the same time philadelphia's board of pensions said it is terminating business with the firm and taking its $54 billion worth of assets after the retirement fund pulled assets from fisher's company. iowa, mississippi and florida have all said. he compared the process with gaining a client's trust like trying to get into a girl's pants. >> coming back after the break, the latest fallout we go live to the region next. and why shares of united are set

to soar ahead of the opening bell later on, your money, your vote front and center elizabeth warren learned the hard way what front runner life is like. a very busy hourheft aad aer this commercial break. t's an su! your family is duckin' and rollin'... while we stowin' and goin' but that's cool, i know for a fact your suv does not suck. and why is that? it aint got that vacuum in the back, whoo! sucking stuff up! what else are we gonna find? we got to go. vacuum in the back, hallelujah! get 0% financing for 60 months plus $2,250 total bonus cash on the 2019 chrysler pacifica. ♪ ♪ i've been a caregiver for 20 years. no two patients are the same. predicting the next step for them can be challenging.

today we're using the ibm cloud to run new analytics tools that help us better predict and plan a patient's recovery. ♪ ♪ ultimately, it's helping thousands of patients return home. and who doesn't love going home.

>> 5:30 a.m. eastern

that's a live shot from our nation's capital things heating up last night welcome back to "worldwide exchange." china is threatening to take counter measure steps against the u.s. after house lawmakers passed a bill to hong kong whether that region require the u.s. to change its special trading status joining us now, in that hong kong study group take us through the latest, is there an issue now given the latest political developments here >> i think the more immediate challenges are local rather than the congress in the u.s. i don't particularly think it will be seen as helpful.

i think support for protests here when the peaceful protests that so distinguished the protests in the early months of the summer have been replaced now by willful violence which is very hard to justify in any context. for any members of congress to have seen support of that is helpful. in the peaceful recover are likely to be helpful to mix them up when there is so much terrible and unacceptable violence occurring here is pretty tough >> david, we are showing viewers shots of what is happening around hong kong massive bottlenecks there. we know the transit system is

not helping. the subway system is shutting down cutting off the ability to move all of that having an impact as well how does this particular path move ahead are we going to see a slow down because of all of this that is happening? >> the difficult part of that answer is that the region as a whole is facing difficulties wherever you look, data is depressing hong kong is suffering more keenly than others moreover whether there is likely to be honk-term harm or whether it is likely to be short term. for that, we can only go back to the crisis in 2003 where hong

kong was pretty much shut out while the crisis continued that only lasted nearly three months in the short term did great harm to the economy exactly those parts that are hurting now. retail, hotels, restaurants, tourism and so on. the problems are now continued for five months, if anything, the violence getting more severe and disruptive i think there will be people saying if this continues for too long, a couple three months more, there may be some long-term harm being done to hong kong's role in the region and china interacting with the economy. >> we know the protests are

having a toll there. you mention the u.s./china trade issues now that we are taking steps forward in talks others are expressing some scepticism with that if they do take a market step forward, does the situation with hong kong get better >> i think the whole region's economy would improve. the global economy would improve. there are significant stressors impacted by this i don't see any words of optimism coming. the problems that exist frankly because of access to their markets. those problems are going to take some time to resolve

arguments about tariffs are emotional and maybe attract consumer attention they are not at the heart of the problems thatexist a resolution of tariffs is not going to help the biggest systemic problems. >> live in hong kong thank you for those thoughts we appreciate it >> still ahead, fresh from a trip from one of the largest energy conferences in the world. what is her take on the state of oil. first, today's big number. 158 million. that is how many passengers flew on united airlines in 2018 of yo. but nature's bounty has innovative ways to help you maintain balance and help keep you active and well-rested.

because hey, tomorrow's coming up fast. nature's bounty. because you're better off healthy.

high protein. low sugar. tastes great! high protein. low sugar. so good! high protein. low sugar. mmmm, birthday cake! pure protein. the best combination for every fitness routine. >> stocks to watch include broad com. reports of antitrust measures today. you can see shares off shares of drug disstrib tors all rising this morning. the companies are in talks with state and local governments to settle opioid litigation for

around $18 billion johnson&johnson in talks as well other stocks moving now including mallinkrodt and others united airlines raising the forecast results helped by higher fares and lower fuel costs don't miss united ceo liveon "squawk box" at 8:00 a.m. eastern time a must watch interview there why one of the smallest things in the world could have the biggest impact brian sullivan looks closer at rare earth minerals coming up next why lady gaga has the twitterverse reeling over her comments about fortnite. it's trending as we return after

this ♪ you should be mad they gave this guy a promotion. 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 technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis.

>> some of the largest names may have the biggest importance. so-called rare earth minerals are the topic. brian takes a look at this industry >> rare earth, 17 minerals you

may remember funny sounding names they look like little more than sand but they are perhaps the most strategic minerals now. a cell phone, tv or rechargeable battery and production of magnets necessary for building renewable energy united states used to be a leader china figured out how important it would be and boosted supply soon no longer profitable to operate mines in the united states we now rely on china for more than 90% of rare earth production or processing creating a big problem not just for consumer technology but national security. critical in fact that trump

administration put out a report saying, quote, the assured supply of these critical minerals and resilience of supply chains are critical to the u.s. economy china will end up controlling so much of it, it will be able to dictate price around the world >> tomorrow, we'll give you an exclusive inside look to getting america back in the rare earth game and take you to a newly reopened mine in the california desert when we come back, one of the largest casino operators in the world with the largest move over the balance sheet. we discuss it with the ceo of the american gaming association when we return after this. so sr workflows in the cloud, huh?

mm-hm. your employees must love you. thank you. ah, you could say that. so how are things with you guys? great. thank you. thank you, sir. lunch next week? terrific. say hi to the team. will do. call my office, i will. -sounds good. alrighty. servicenow. works for you. that's what happens in golf nothiand in life.ily. i'm very fortunate i can lean on people, and that for me is what teamwork is all about. you can't do everything yourself. you need someone to guide you and help you make those tough decisions, that's morgan stanley. they're industry leaders, but the most important thing is they want to do it the right way. i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley.

takin' it off road station ted! goiwagon, eh?ip, huh? you know it's an suv! your family is duckin' and rollin'... while we stowin' and goin' but that's cool, i know for a fact your suv does not suck. and why is that? it aint got that vacuum in the back, whoo! sucking stuff up! what else are we gonna find? we got to go. vacuum in the back, hallelujah! get 0% financing for 60 months plus $2,250 total bonus cash on the 2019 chrysler pacifica. >> your money, your vote democrats square off bank of america ready to post quarterly numbers ahead of the morning bell what do you see? first, there was the dress the bunny and the bird

will smith has another opt call illusion quickly going viral you are watching "worldwide exchange" here on cnbc thank you for being here with us this morning here is how your mand investments are looking right now. looking to modest losses, the dow would open if futures hold to regular trading this morning. s&p down by seven points and s&p down around 16 to 18 points. we are seeing a slight tick lower in yields. 10-year at 1.722%.

two-year around 1.577% checking the asian markets in japan, you can see a bit of green there. hang seng up a bit on the european side of things the cac is down. ftse 100 is off. slight peek in the green now for the german dax democratic hopefuls debated. elizabeth warren took the brunt of attacks on topics important to investors >> sometimes i think senator warren is more focused on being punitive or pitting one part of the country against the other instead of lifting others up >> i'm shocked at the notion that anyone thinks i'm punitive. i don't have a beef with billionaires you make it to the top, the

top .1 of 1% so pitch in two cents so every other kid in america has a chance to make it. my question is why do bernie and i support a wedge tax. my question is why doesn't everyone else on this stage feel it is important. >> i want to give a reality check. no one wants to protect billionaires not even the billionaire we just have different approaches >> joining us now, john, this was probably one of those very, very interesting debates where the top leaders there are separating themselves out. what stood out to you about elizabeth warren she was the front runner and the dead heat, handicap for us how

vice president biden did versus how senator warren did in this debate we've had a race for months that has been stat tiic joe biden starting the lead and everything resolved around him elizabeth warren in practice on the ground is now the front runner and that's why you saw all that front running especially from younger moderates in the race include buttigieg and klobuchar. saying, okay, you've been talking big for the progressive base on wealth taxes and corporate taxes. we are going to put to the test how realistic those plans are.

we'll see how she responded or how voters think she responded based on polls we have a new structure of this race at this moment. >> that is interesting because in the course of the next few days and arguably the next couple of weeks, there could be an interesting shift with senator bernie sanders we know there are a group of freshman congress people now known as the squad, we have reports that represent alexandria ocasio-cortez will support bernie sanders and representative omar will support bernie sanders reports that ilhan talib will support bernie sanders >> what we've got now is bernie sanders had a heart attack a

couple of weeks ago. his first challenge was to show he's back in the race vigorous, feeling okay he certainly did that. he looked good on the stage and as if he felt good those health questions remain. i've got to say he has caught a bit of a break by having aoc and the squad line up with bernie sanders. that will help her look a little bit less out there on the edge of the democratic party. that is something as she tries to consolidate her front runner status and move on being in between sanders and joe biden is not a terrible place to be we thought the race would be transformed but i y impeachment

hunter biden, that really wasn't the case >> john, what is the strategy for each -- let's take vice president joe biden, senator warren and senator sanders in maybe one or two sentences a piece, what is the strategy each of those folks have given last night's debate and the endorsement picture we see shaping up from the progressive left >> you've got a fight between biden and warren biden strategists say all we need to do is get in the one on one and a lot of those moderate electorates will come behind

him. elizabeth warren has to show her campaign is built for the long haul she's done well so far she'll have to say, yes, i can get my plans passed. and yes, they will work. she got challenged yesterday for andrew yang has made the point that wealth tax is a nice idea but it may not work in practice. elizabeth warren has to show that it could. >> thank you for that. oil markets have increased in volatility as the rise of tensions put things at risk. after the oil tanker attack and after saudi arabia bounces back. joining me now, cnbc contributor. you are coming from the kuwait

oil and gas conference >> that was the geopolitical back drop. a lot of questions about what happens next and the role of the u.s. which was a theme as well. is the u.s. retreating not only because of the lack of response and looking at what is happening in syria now and with the u.s. withdrawing and what is happening can the kurds. a lot of questions about if we get in trouble in this region, what happens to us it was really interesting, you had all these questions going forward that putin was making a

celebrated trip. treat it like the czar russia saying we can be your partner. >> we did get news over the past week and a half that the pentagon will deploy many more troops in saudi arabia we are going to put a couple more missile defense systems there. so the u.s. is not retreating fully. >> you are right we are sending an extra 3,000 troops to syria. and there is question those troops will move over to kuwait. the question if we have issues with shipping lane traffic, the u.s. may not play the role it had where tankers kept the shipping lanes open. questions about how will we use those forces there

in terms of the types of attacks, questions about will those systems work, will those even have worked against those drones there is even a concern that the drone technology in particular, we do not have adequate defenses >> we don't know what these capabilities can be detoured yet the oil market keeps slipping >> absolutely. prices now down 16 to 18%. >> have retraced we said five years ago, oil can be a leading indicator of unrest in the middle east now oil is a lagging indicator the middle east can be a much more volatile situation reflected in oil prices. oil catches up only when you

have something truly dramatic like september 14. it doesn't mean in any way the situation, it means the market's attention is focused on other issues and data. if you look at the chinese oil data for september, it was very strong we are not seeing now a real pull back in chinese oil exports but focused on the broader story of the slow down >> thank you for joining us. coming up, place your bets deals in vegas and those details coming up. and fortnite lady gaga lighting up the internet a bad romance. we'll bring it to you this morning in trending topics coming up next when "worldwide exchange" returns after this

your brain is an amazing thing. but as you get older, it naturally begins to change,

causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

>> welcome back. mgm resorts is selling the bellagio and circus circus in las vegas. bill, thank you for being here this is a real estate deal take us to why it is important >> thank you for having us on the show i'm coming to you live from las vegas. we have our globe al gaming conference this week mgm has begun this process something that's happened a number of years under the chairman and ceo realignment of the company and looking for growth

i had some opportunity to spend time in japan. they are all in on the osaka first strategy which requires a lot of capital this is a component of that. we are also seeing that in other places like the rest of corporate america see opportunities for efficiencies and highest and best use of capital. >> is it no longer for these operators in owning the real estate where they want to focus on these and the sale, lease back this is something they've been seeing the last couple of years with the idea of really separating the entities and operating in management as well as real estate it is something we've seen in order to really effect the best

possible growth for both real estate management. >> you've got a lot of things happening with regard to the state of the overall gambling business what p is it they are focusing on what is front ant center for you now? >> we are excited about a lot of things the games industry has never been more popular with the american public. we are in 43 states now and in communities with community partners we create good jobs and opportunities for public service and small business we are seeing that reflected in how we are as an industry, not

any longer defined by stereo types in movies and television it is about growth we a we are seeing growth in sports betting. >> a lot to talk about in the gaming industry as well. bill miller, ceo of american gaming association thank you. time for this morning's top trending stories kate rogers is back. esports, kind of a thing in vegas too. >> it is with all of the craze surrounding esports, you would think most have heard of one of the most popular lady gaga sent twitter into a frenzy posting the question.

what's fortnite. one user responded the length of my longest relationship. other said, another word the longest we should have to wait for ga ga's release. >> i saw, that's how long it takes to play wimbledon. do we think she was talking about the video game >> i think she was not sure if she knows she misspelled it. my younger cousins have some interest i know the dance moves >> there is dancing in this game >> maybe at the cnbc christmas party, i'll show them off. we all remember the opt call

illusion went crazy. these shoes. do you see green or gray or pink and white. those shoes are actually pink and white. i see bluish green that's what i see. viewers, tell me what you see. i see gray the control room is telling me pink they are not they are not pink. >> you heard it here first >> yes thanks very much in sports, an historic achievement. the washington nationals heading to the world series for the first time in their history. handing the cardinals a beating in game four boasting a 7-0

lead cardinals managed to get some points on the board giving them a much needed double it was not enough in the end nationals taking this team 7-4 the castros leading that series 2-1. on deck, financials in focus again. that stock getting a boost from warren buffett news. more coming up next. later on this morning, don't miss legendary investor leo cooperman at 8:00 a.m. eastern time we'll be right back. here, it all starts with a simple...

hello! -hi! how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ] wifi up there? -ahhh. sure, why not? how'd he get out?! a camera might figure it out. that was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your xfinity store today.

>> the headlines you need in 60 seconds. firefighters with a fire at an oil refinery in northern california is now under control. first able to control two burning tanks with foam but the flames reig nated a short time later. softbank reportedly in talks with jp morgan on a wework bail out. cnbc has learned one option involves he can withity from softbank and debt from jp morgan >> the final day to hold talks ahead of the brexit summit for talks to be approved it must be reached by today. if an agreement is not approved by saturday, boris johnson must

ask the eu for an extension for the current october 31 day >> bank of america is the name to watch as it reports quarterly reports. wilford ross is here to tell us what can we expect from b of a given all of what we know from the other guys >> the important thing is that they opened lower. results themselves opened mixed. quite a big move from the yield curve. if we hadn't had that important move, we'd seen the rally. bank of america was the second best yesterday of the big six

banks. how much of that warren bauffett headline was key in the threshold? >> i think it is a factor but very hard for him to do that we have to get more meat on the bones. that was related and hoping they would emulate jp morgan and other banks. that net interest margin did decline across the board because of the moves we've seen of late. loan growth didn't decline as sharply. you got a sense of that even if we get a couple more yield curves, we haven't seen it move to this yield again.

>> the yield curve has rallied back tremendously. it is still absolutely low we are talking four basis points, is it important that the bank thesis is going forward >> it is important that is important compared to many years ago not something that leads you to think will be huge in the years ahead. really standing out as highlighting in the tough environment. they grew 8% revenue goldman had a declining revenue. highlighting the fact to get a top line on the move, you are focusing on shared buy backs >> what is the one thing you are

looking for? >> do they emulate jp morgan or citi >> you'll be all over it >> 6:45 a.m. >> don't miss the live interview tomorrow 3:00 p.m. eastern time. "squawk box" picks things up right now. >> good morning, a brewing crisis in hong kong. china has harsh words for washington after the house passes pro hong kong measures. democratic face off. what candidates said about the biggest issues to breaking up big tech earnings this hour, nice gains we'll hear from bank of america in about 45 minutes. the numbers and instant analysis straight ahead

tuesday, october 16. the day after yesterday, which was the 15th "squawk box" starts now. >> announcer: live from new york where business never sleeps, this is "squawk box. >> good morning, everybody welcome to "squawk box" here on cnbc we are live from the marketsite in time square let's look at u.s. equity futures now. we have improved from being down about 100 points right now, the dow future is down around 43 points. a lot ofdown components out yesterday. a lot of better than anticipated earnings >> yesterday, we were trying to pair triple digit losses at this point and it was up 30