it is 5:00 a.m. at cnbc. we are hitting the brakes. china's economy shifting to low gear souring sentiment, why the ceo of one of the largest investment banks says he's growing increasingly concerned the clock is ticking uk prime minister on a mission to sell his deal to parliament a possible conflict of interest.

president trump making a move likely to spark a fight for the west wing. trade tensions rising again as new tariffs again overnight on the largest trading partners we are not talking china it is friday, october 18 "worldwide exchange" begins right now. good morning happy friday and welcome to the show hear is how your money is opening up the dow off by about two points so relatively stable the

s&p 5001% away and the nasdaq 2.2% away. the bond market now moving ever so slightly on the other side for stocks two-year note yields just below 1.61% let us now go worldwide in european trading we are seeing a little more red than green dax up .1% cac off by .7% and the same for ftse and mib as well in asia, can you see the nikkei up about .2 3ers and the hang seng down. we had breaking news overnight the latest read on the chinese

economic situation it is now slowing to the lowest level in decades eunice, what can you tell us about these numbers. >> they were pretty bad. the consensus is that beijing is going to have to introduce new measures to stimulate the economy. they'll probably start to introduce those soon missing those at about 6%. overseas and at home as they are weighing the september figures also looking relatively okay. they showed a rebound. saying we usually see a recovery when it comes to industrial output many are more concerned about the out look of the demand those uncertainties surround the

u.s./china trade deal and if that should lift as a risk for the economy. even the statistics bureau which is normally quite optimistic said that they saw big downward pressure a complex serious situation and rise in external uncertainties planning now to front load special local government bonds and to take the measures in the fourth quarter steady as well as beyond despite the data, there is growing belief that they'll get tougher and won't make concessions. commerce yesterday was forceful saying they wanted to remind everyone that china wants all of the additional tariffs lifted.

made a point that the ministry wouldn't commit to a $50 million purchase target, which as you know has been touted by the white house. >> that is the macropicture. there are a lot of factors there. reports are out that tim cook, the apple ceo traveled to china with regulators there. a bit of controversy about one of the apps apple put out and what they did with that given the current protests >> exactly that app was being used by protesters to track the movement of the police. once the state media had criticized it, apple removed

that from the store. tim cook is in china and features on state tv where he was seen at a university board meeting with the vice president. he is a board member of the university, which is a very prestigious school here. he met with a market regulator saying the two had discussed expanding investment business in china and consumer rights protection in china. >> a fairly comprehensive situation there. back to our stop story now joining me now from hong kong is julia wang, thank you for joining us

6% is slow what is the reaction there and what does china need to do to prop things up even further. >> so the third quarter growth is up slightly now at 6.0. it has seen a sharp slow down. we started the year at 6.4 a slow down by china in nine months is actually pretty sharp. if you look at what is driving that slow down is all coming from the manufacturing sector. seeing that part of the economy sliding back three months now. producers are negative at the same time, you are seeing an ememic pace

china raw is more consumption driven looking at other parts of growth and retail, they are okay. this is the hit externals are having on the manufacturing sector they have to do something to prevent the spiral from happening. the last time that happened between 2012 and 2015, it turned out to be pretty damaging for the longer term. they want to prevent that from recurring. >> what is the feeling in china on the mainland with regard to how damaging these numbers would be is it enough to motivate there in the government to accelerate their plans with a possible trade deal with the united states >> there have been a lot of

calls on the number and the data we are getting for some time now to accelerate policy easing. i think a lot of people rightly point out we have an external demand shock this is the kind of incident where the rate cut can play a role in terms of mitigating the impact that focus is being pointed out looking for ways to mitigate the impact policymakers have been more balanced they are trying to look at reform the key here in the domestic and broader market is just that the market and policymakers would ease faster. policymakers have been a little slow because they want to have a

broader approach, i think the trade negotiations and twists and turns have negatively impacted i think the corporate sector and the market wants the risk to fade even more we have had some positive news i think it is probably not enough to turn around people's confidence on how the external side is going to pan out >> sure. one of the biggest stories on the friday morning a developing story now between at&t and investor. >> trading higher this morning as it continues talks to make some changes last month, giving it 1% of the at&t stock then sending a letter to the

board criticizing management and arguing changes that at&t could be worth $60 a share by 2021 it is just over $38 a share today. today saying they are pushing for assets and possible selloffs and on october 9, at&t agreed to sell nearly $2 billion worth of assets in the caribbean and considering making changes to the board. they've hired goldman sach to help with talks. continuing talks with elliott. sources say a deal could possibly be reached by the end of october >> when we come back, we'll go live to brussels for the latest on the brexit count down and tesla. finding new ways to nickel and

dime owners possibly without their knowledge. later on, there are 618,000 millennial millionaires in the u.s. we are counting down the top five states with the highest percentages. stay tuned as we make our way to number one as "worldwide exchange" rolls on after this break. is a guarantee. it's for my family, its for my self, its for my future. annuities can provide protected income for life. learn more at retire your risk dot org.

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>> the clock is ticking for boris johnson to sell his deal to parliament. joining us now from brussels i feel like we have been here before with regard to a uk prime minister trying to sell a brexit plan to parliament right? >> reporter: dom, i think i said dejavu with you yesterday. after many months of back and forth and two frantic months of negotiation, you are right, it will depend on the negotiations. they are discussing this deal. pouring over and debating the details. if they are not happy with the deal if the majority votes

against it, we could see the prime minister being asked to request an extension that could push in theory off where he said he'd rather be dead in the ditch than due right now, he doesn't have that majority even close. we are waiting to hear from 20 or 30 more lawmakers i should warn you, it will be a very, very late night on saturday we'll see that come out late sunday >> yes, it was just yesterday. yogi beara talking about having dejavu all over again. boris johnson is perhaps empathizing on the move with parliament if so, what could boris johnson

learn from the mishaps that theresa may had with parliament to try to push this over the finish line? >> that's a good question. pointing out if it did come down to one or two votes and theresa may decided to stick the knife in that would be a massive irony. what she did in the past was try to cater to their needs. they represent the 10 votes out of the 320 now having to reach across the aisle, very late on as the prime minister to get votes from the labor party in the past voting for the third attempt if he could double or triple, he could

succeed on saturday. >> the drama continues, still on deck talk about a fall from grace possibly the ugliest chart in the once red hot ipo market. no one is smiling here counting down the stop states for millennial millionaires all morning. number five is texas where 5% of the country's millionaire millionaires reside. we'll work our way down to number one, what state will it be

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>> today's stocks to watch include e trade. you can see shares are up 4% right now. intuitive surgical also luke like a winner. the robotics surgical company beating the street and tesla quietly changing the price of the model 3 and changing the return policy. in the past putting down $2500 now, the company will charge $100 nonrefundable order fee >> still to come, president

trump makes a move likely to spark an ethics debate and later on, the count down continues for thestop top state for millennial millionaires. massachusetts is number four we work our way to number one where 44% of millennial millionaires live in this state. 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.

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>> we are at 5:24 a.m. eastern time a love shot at the capitol where things are heating up. president trump is making a move sure to get critics fired up and even spark a conflict of interest investigation tracie potts joins us now from washington >> reporter: good morning. big question here. is it fair or ethical for the g 7 to meet at a resort named trump. that is what is happening. the white house announcing that the trump doral resort has won the bid for the meeting. the white house insists that this is not a conflict because

they are not profiting the president has been promoting it and urging him to do so here is the kicker sales at the trump resort have dropped significantly since he was elected. 69% in three years according to reports. this is not the first trump resort to host this continues to be a controversy. >> still to come, why the ceo of one of the world's largest investment banks is growing increasingly concerned >> and looking at the next red

hot unicorns we are working our way down to number one at number three, florida where 5% of the country's millennial millionaires can be unfod. number one is a few minutes away keep it here on cnbc you should be mad that this is your daily commute. you should be mad at people who forget they're in public. and you should be mad at simple things that are unnecessarily complicated. but you're not mad, because you're trading with e*trade,

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hearing on the current state of the global economy delays again, aramco hitting the pause button ahead of what is expected to be the biggest ipo ever the count down is on for the top state of millennial millionaires which is it? you are watching "worldwide exchange" on cnbc. ♪ welcome back thanks for being with us here is how stock futures are looking. let's call it stable major averages on track for a gain despite some of the modest losses the dow would open by about 6 points if these hold in the

opening bell s&p about flat all of them not that far away from record high levels. we are seeing a slight tick higher the 10-year moving to the upside you'll see there just a hair up from 1.77% let's check on the asian market trade. we did see a little negativity getting the latest read coming in below consensus at 6% that is causing the weakness there. the slowest rate of growth in the chinese economy in 27 years. in the european markets, the dax is up but the cac and others

down a word of caution. that's the message from goldman sach ceo david solomon speaking on "closing bell" yesterday. >> whether it is trade, whether it is brexit, whether it is more uncertain geopolitical environment, no question it is having an impact the overall nature of global growth is still okay, still solid. in the context of that some of these issues if we got a trade deal if we did make progress on the brexit deal here, that could bring the sentiment back quickly. no question, when i talk to ceos, they are a little more concerned. >> concerned on the other hand new york fed president williams is more optimistic telling reporters the economy is in, b

quote/unquote in a pretty good place and that consumers have been, quote, resilient which camp are you in? joining me now, cnbc contributor. david solomon at goldman sach says more cautious which camp are you in? >> i'm probably in the middle. i think all these bears are scratching their head and wondering why the s&p is up. first, we are seeing a nice earnings season. i know the bar has been lowered. secondly, we are see egg the fed policy we are expecting the fed watch

tools. third and final is the fact that we have u.s. trade conversation or deal. seeing that come to fruition with all-time high in july >> jeff, there has been a concern that the leadership position has been technology and communication services companies. those are the ones not quite leading the way. more of these defensive names. is that more cost for concern that we don't have the traditional leadership in the market >> we are seeing utilities and the 10-year note proxy you are seeing a lot of people that don't go up in the market technology continues to be number one

it has been number one for two years. as we see that surpassing, we are sticking with these themes when you see that global growth specifically coming out, that is reason for concern the thing i go back to is price. the s&p price nearing 3,000 is interesting to see the market is being supported by the fed. there is a lot of momentum right now, short term, i'm constructive >> we are showing a chart now for technology and the s&p 500 we've been in what we call a consolation-type phase where we haven't broken down to the bottom or top. what does it take to break out of this range and get towards

record highs or fall off towards those levels >> you bring up a great point. one thing we've talked a lot about is the u.s. dollar we are seeing that back down at october 2018 levels. that weakening dollar is supportive of u.s. equities. when you see that on purpose moving lower, that will be a wind sail. it is interesting to see when we saw that u.s. dollar, people really had a little caution in their lungs. now sure enough, the u.s. dollar has dropped. here we are 1% away from the highs. the u.s. dollar is rocking the boat >> shares of smiledirect club

hovering near lows after a lawsuit filed claiming they attempted to intimidate staff and customers during a series of raids. another headache for this company, one of the worse performing of 2019 just one of a series of disappointing public offerings this year. jeening je joining me now, an early investor in companies like lyft, pintrest and post mates. does it worry you? some of these other ones that have been so hyped up and now have fallen by the way side? >> thanks for having me. not really we had a thesis going into these. these are transformational

stories. that is the future trend that trend going on in terms of on demand services renting over buying. there is a strategy behind it. we are fine with this. we want this lock up expiration and those factors to clear out lyft and the investors reported two quarters out of the gate they need to report good quarters they will come back. it is a long-term story that will play out. >> how much is the given macroenvironment saying this is one of the most brutal environments right now >> you could say this is in a corrections phase. it has to be more holistic it is not about growth at any

cost it needs to factor in compliance and governance structures. in the past, you have that line that drove the whole valuation you can see, the later rounds will factor in those valuations. >> dramatically speaking, we've talked about upcoming 5g, what do you think will be the next big theme or push? >> air bnb will be a big one they've said they'll go earlier 2020 a lot of fintech companies still to come. you'll see a lot of companies,

these are small companies you don't see but they are part of bigger companies the acquisition for those companies. you'll see a lot of activity in health care, health tech that is a huge beneficiary >> how big will 5g be? we've yet to see any real break out? will that be the break out industry now >> we think it will be around 2021 that's the time 4g took to come on it will take some time to come on still not rolled out you'll see around 2021, 22 it will be a big thing. that is big in the telecom area. that is good with a robust

pipeline realizing there are other factors that need to be factored in >> thank you visiting us from the middle east joining us on set coming up next the next big thing for musk and spacex it is almost time for that big reveal the state where the most millennial millionaires reside number two, new york number one is coming up when we tu aerhibrk. this is the age of expression. but shouldn't somebody be listening?

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whether your beauty routine is 3or 57,... make nature's bounty hair skin and nails step one. it's the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. nature's bounty, because you're better off healthy. >> welcome back to the show. saudi aramco is delaying its ipo. the move stems from the oil giant wanting to update

investors on latest earnings following the attack on its facilities joining me here from the middle east live and in person. >> in living color >> great to have you here in studio take me through this when i saw the headlines, i thought, no surprise but there are reasons. >> no doubt about it every petro journalist thought they'd be heading to the east coast of saudi to hear more about this 3% how they were going to list 3% instead of 5% which was the original plan. the reality is these attacks were significant

it seems as if, management decided that it is better to wait and give clarity about how damaging this was to the company. >> do you think it was that key concern there? they deal with a very different kind of company. we talk about this idea that the overall environment for the market, the possible slow down is not con deucive >> that is the big question. this is something we've talked about with the broader context in that vision, they said they need $20 to $30 a barrel the environment domestically are they ready for this? i got to tell you, internally,

there are a lot of questions whether they'll meet that valuation. one of the reasons you are not hearing more is that nobody wants to tell the big guy he's not going to get his $2 trillion >> we know what is happening between turkey and syria can you take us to your thoughts on the ground there. >> it is fascinating, isn't it this is why we love the story and we are so vested in every area we are not just talking about syria and turkey but also about that iranian tanker. speaking to people at the very highest levels saying, listen, there weren't missiles we are more worried about the impact we are talking about our tourism industry that could be impacted

by this. the syria, turkey story is interesting. at the end of the day, one thing overlooked was the fact that vladimir putin was in the region they are also looking eastward in a few days, when we talk about this turkey erdogan story and whether the president and erdogan will continue with this relationship a few days from now president putin sits down with president erdogan. it looks like the russians have the upper handwrite now. >> thank you for being here. coming up, let's find out what else you'll be talking about today. frank holland joins us what should we be talking about? >> talking about social media

news mark zuckerberg is fighting back against claims that facebook needs to monitor and censor speech arguing that the company was founded to both give people a voice and connect those with different perspectives also citing the lack of presence in china and also touching on ti tictoc >> there at georgetown, students were asked not to ask questions. >> i guess not there some space news. spacex has launched construction of three next generation rockets. drone videos show bands ready for assembly

ready to launch cargo and people to the moon and mars they are designed to be reusable and operate more like a plane. building three at the same time. one in texas and two more in florida. >> elon musk can certainly capture our imaginations >> one of the latest reports says the target is to build a sustainable city on mars >> possible. i see it in the movie. >> speaking of millennials making more than $1 million. an even money bet on where you live 44% live in the same state finally, the top state is california a new report showing between 23 and 37 making more than a

million. more than half reside in the golden state, then new york, florida, massachusetts and texas. the top city is in traverse c y city, michigan >> i talked to some friends about it recently. it is right off lake michigan. kind of a luxury area a little under the radar. >> all right appreciate it. on deck. morgan stanley chief economist joins us to talk about the fed, growth and the markets later on today don't miss brian's interview

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>> time for the recap. shares taking a hit this morning. the news came out yesterday after european markets had closed aircraft made in the region will be hit with a tariff while others will face 25% the trump administration announced the move speaking of the trump administration, it has announced rick perry is leaving.

the former texas governor who is one of the last remaining members of the original cabinet will leave his job by the end of the jeer more on his resignation when he joined conversation on squawk on the street more now about whether the fed should keep cutting rates. >> i continue to think there will be consequences i hope in the u.s., there is never a consideration. it is interesting to see where we are in the economic cycle, from a job perspective and balance the policy we have today. personally, i'm not a fed governor i'm surprised by the amount of the monetary policy and low rate environment we still have in the

cycle. >> big comments now joining me i've got to tell you, we've seen some pretty bad down turns has there ever been one that led to a negative interest rate policy could it happen in the u.s. and would it be a good thing >> let me answer like i would in a courtroom. yes, there could be negative rates in the u.s.? am i relieved they could shut the rates? absolutely they have the example of how it has worked or did not work in other countries. they've studied that leading them to the conclusion that down turn is not another option we want to take >> is the fed positioned well.

is u.s. monetary policy appropriate given where we are right now and is it something we should be concerned about? >> we have been talking about the shape of down turns a lot. the fed said now in a large balance sheet will be a common tool we've focused on that they are not going to have 400, 500 basis points to drop down. do they need that much space inflation is lower you can get real interest rates down a lot with the cuts that is something to keep in mind they are shortening up their balance sheet and buying t bills. using that to buy short term and long term. i don't want to count them out i do think it raises a touchy

topic that fiscal policy needs to be there. we are sitting on record high-d defecit. >> is that appropriate now is that the right thing do? >> a lot of people have counted down the possibility aside from what kicks in. i think you'll find that democrats and republicans will have no problem adding to the deficit in the next down turn. what does that do about debt sustainability at some point, we'll have to make very tough decisions. you talk to policymakers and say that is not a problem now,

that's for a later time. >> we've talked about the idea that a recession is eminent. the question is when when does a recession appear likely >> we've been on a more pessimistic side the modelling we've done shows that insurance cuts are working. what they are doing is boosting those sectors but they are not affecting business investment. so that's fine it is a business uncertainty problem. what you can do is help offset that with other parts of the country. what is going to happen is we think they'll cut rates. we have them moving back on

hold there is evidence. maybe we've done enough. there is evidence maybe we've struck this longer >> always a pleasure that does it for "worldwide exchange." "squawk box" picks up that morning coverage have a great weekend >> china's economy shifting to low gear as the wage war lowers over 6%. tim cook in china after the company pulled an app it says was used to ambush police in hong kong. facebook ceo mark zuckerberg depending policy on political ads calling it a free speech

issue. the real lead there. it is friday ♪ >> announcer: live from new york where business never sleeps, this is "squawk box. >> good morning. welcome to "squawk box" here on sn i'm andrew ross sorkin. becky is off today our guest host, chief economist. he made it he's here. he did something -- i don't know if you celebrate you honor. >> breast cancer awareness day you are wearing a pink shirt we are wearing the pins. >> i'v