it is 5:00 here at cnbc. investors cheering the third rate cut of the year tim cook wins again despite a slow down in iphones a twitter surprise ceo shocking the street announcing a ban on political ads will facebook do the same. speaking of facebook, that stock rises and a big congrats to the washington nationals taking home the first world series title in

their franchise history. "worldwide exchange" begins right now. >> good morning, good afternoon, good evening from wherever you may be watching. a little early van halen there for you. halloween in the states. a lot of those goblins running through the streets jacked up on sugar. the nationals beat the astros. washington scoring all of their runs in the final three innings. they made history with something that has never happened in baseball or any other professional sport that is coming up. let's get to your market box

score. dow futures are some what higher we are seeing dow futures up 31. if you are keeping score at home, the s&p 500 hitting the 14th all-time interday high and 15th record close of the year. the dow by the way, still less than 1% away from its all-time high we are getting closer. kind of funny how image works. as stocks have gone up, bond yields overnight in asia, after a one-day pause. japan resumed its rise leaving policy unchanged but updating guidance that rates will remain at lower levels. japan central bank saying, we have your back hong kong up shanghai down.

manufacturing in that country continuing to slow the european markets are mostly higher not a big trend in europe, again, we are seeing a mixed bag there. now we are seeing all the numbers, let's see the news. could you imagine seeing and driving a citron car in the united states. the fiat chrysler and peugeot announce an intention to merge if the deal clears all the hurdles and there are still mon many, it would create the fourth largest automaker by sales with a worth of about $4 billion. breaking late yesterday, big news out of twitter.

ceo jack dorsey shocking everybody saying from now on, twitter will not run political ads. saying, quote, political message reach should be earned, not bought more on this big story >> jack dorsey setting up a clash with facebook ceo that twitter will ban all political advertising. quote, paying to increase political speech that today's infrastructure may not be prepared to handle zuckerberg fired back defending his decision to allow political ads on the basis of free speech. >> we estimate that these ads will be less than 0.5% of our revenue. that's not why we are doing this to put this in perspective, the

fine that these critics wouldn't be enough was more than 10 x bigger than this we believe deeply that political speech is important and that's what is driving us >> lawmakers critical of facebook's position praised twitter's policy which will go into effect november 22. trump's campaign responded blasting twitter saying, this is yet another attempt to silence conservatives. twitter shares did trade lower but ultimately this decision seeming to be less about ad revenues more about the roles tech should play in policing their platform >> i wonder if zuckerberg and others are saying, free speech, need to go back to look at their civic textbooks saying free

speech is not paid speech. paid speech, not free speech to your point, this is not a big part of twitter's business, is it >> no, it is not ultimately and zuckerberg made that point saying it is a very small slice of our revenues. it is more about the stance we are talking. he stood up for the local politician saying it is important for them to be able to use the platform to get out their message. there is a point that these companies get out a message that these companies will pay for and how there was a lot of paid interference we'll have to wait to see how this all pans out. >> i think the question is what defines a political ad we know what an ad looks like,

if i'm a politician and i tweet something out, is that an ad >> twitter's surprise announcement of what facebook had to say contessa brewer is here with this story >> facebook reported solid third quarter results even in the face of broad regulation and criticism. profit rose 19% revenue. it beat forecasts. ad sales jumped above estimates. facebook ended the quarter with 2.45 billion active users. that is up 8%. in line with forecasts 2.8 billion are using at least one service facebook, instagram, whatsapp and/or messenger at least once a month

i'll switch here to go to apple. the company's personinforecast . even as iphone sales fell from the quarter. they say the iphone 11 has been the best selling launch. sales of wearables and home products and wearables like air pods jumped 54%. apple says about 75% of those apple watch purchases were wero people who have never owned bun before apple is up 50%. >> let's stay with apple, if you are thinking about buying a new iphone for the holidays, you may want to hold off the company plans to introduce

more than four new iphones next year even as sells fell, profit dropped for the fourth straight fiscal quarter investored liked it nonetheless because services and wearables rose >> jason, it is great to see you this morning it is a big quarter. this is the first time fiscal profit has dropped four quarters in a row investors don't care. stocks are up this morning up 60% this year why? >> we are seeing excitement around the wearables category we look back on apple years from now. to determine the protection

around health care it signifies the importance around the growth engain over the next 5 to 10 years. where the company is growing service and wearables are knocking the ball out of the court. this is not the first time this happened with apple as long as iphone is 50% of the company that is changing investors are rewriting the stock. rightly so as a higher out look service. >> i'm easily confused we had profit fall four fiscal quarters in a grow the stock up 60% why are you and other investors

willing to look past arguably a slowing iphone business? >> i mentioned other factors are important. again, the metric that it slowed down under tim cook is notable there have been so many areas along the way we could have said iphone revenue had slowed when we had a pivot to the iphone 6 and the bigger screen. i remember people wringing their hands people saying growth is dead and iphone is dead and how can you own this company without growth you need to look through these periods. you have to look through these periods of slowing profit growth what excites investors and us personally is that the growing service industry is growing margins. relative to about 38% on the

iphone defies. what we see is growth ahead and a company of about $200 billion in cash. we have a brand that continues to resonate across brands. iphone, air pod, watch, home they are hitting the ball out of the park with the phone and next year, we'll get 5 g, so that will be a big needle mover >> we talked a lot about this in the past, are you a twitter share holder >> no. we are no longer we did okay in it but no longer own it >> does this move banning political ads make you rethink owning the stock >> no. i don't think it is material i think it is interesting and certainly a debate that needs to be happening in this country regarding what constitutes free

speech whether we are talking about ads, marketing and free speech certainly facebook, twitter are interesting and open discourse around this. we'll be watching from the sidelines. >> we'll have that debate in a few minutes on the show. we appreciate it have a great morning there in salt lake. >> happy halloween >> you too thank you. >> when we come back, the future of citgo the future of oil and gas and thousands of jobs. morning joe? wait morning brew set to soar. the political ad debate and what facebook should do and won't do. that's next.

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>> $8.8 billion is how much you are expected to spend on halloween. let's talk cit gorgo owned by venezuela. right now venezuela's leader by the united states has control

over citg o's money but he's in a huge fight with a new york hedge fund over control of the money. it could end up with the company being seized and put up for auction. going to our guest now, this is a bizarre story. citgo is run by venezuela. venezuela is run by guy doe. it is possible that his situation may result in the loss of citgo and the loss of their only revenue >> an important factor that a bond payment due the only bond venezuela was still paying because it was

secured by 51% they missed that bond payment on monday they didn't pay it the only thing now keeping the bond holders in this case ash moore and black rock the only thing keeping them from sit go now is the u.s. order on thursday blocking them from taking it because they want them to negotiate if they took it, the russians who own another 50% would have a right to take that 50% of citgo. >> this is why it is important to understand. they may not care about citgo, they own the company here is the thing.

citg o's money, we want juan as americans to take control as leader of venezuela. yet, these obscure lawsuits in court may result in a, losing control of his only asset and going to new york hedge funds and the russians taking control of half of the company >> even more, another serial twist to this comedy of errors, the guido administration has gone to court to sue the bond holders to keep them from taking citgo. they just launched that suit 24 hours ago. >> what is the next step, if you are a citgo worker at a refinery or if you have a gas station, what is your future? >> i don't think citgo is in any

way in danger. the rating agencies said almost anybody would be better than the venezuelans as an owner of citgo. we were trying to think which companies might cause a rating down turn. we are limited to north korea, maybe. >> i know it won't be shut down. is it possible that citgo in america, is it possible that they are seized by the courts? >> there is an attachment order by this goal mining company. they have an attachment order and are owed a billion dollars there are a number of creditors

including conocophillips and owens illinois there are a number of creditors lining up. this is one of the few assets venezuela has that creditors can go after. >> it is a complicated story one that is unbelievable russ, we appreciate you coming on the program we'll talk to you soon on deck, no profits. no problem the stock getting a nice lift this morning today's big number, 41%. that is how much of the u.s. smartphone market apple holds. acerrom 0% in 2006 when blkbry had 50% of the market remember them? we are back after this thank you. ah, you could say that. so how are things with you guys? great. thank you. thank you, sir.

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welcome back you notice dow futures are now in the red reports just crossing that apparently china is suggesting it is doubtful it will ever be able to sign a long-term trade deal with the trump administration saying they are moving closer to a phase one deal remember, that is kind of a sliver of the overall package. one headline now saying china is doubtful it can do a long-term trade deal with the trump administration apparently they are concerned

about donald trump's impulsive nature and the risk that he may be backing out those headlines are not enough we'll keep an eye on these headlines as the day, the month and the futures goes on. >> starbucks, shares up 3% now same store sales rising better than expected 5% you have more customers spending more on fancy coffee like their nig nitro cold brew. and lyft, sales up 63% lyft now says they expect to be profitable on an adjustable basis in the fourth quarter of 2021 finally, royal dutch shell saw a profit amid lower oil and gas

prices brent crude prices down nearly 20% since peeking in april wti, which is what we trade here down 15% royal dutch shell down 3.5% right now. coming up, new connections after north korea fires another unidentified projectile. more on that story next. the game doesn't end after that insane buzzer beater.

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headlines crossing that apparently china is making confidence with the trump administration in part due to his impulsive nature and in part that he may back out of any deal they make. down 70, we were up 30 about five minutes ago the trade headlines moving markets. >> this morning's other top headlines. frances rivera joins us from new york >> we start with south korean officials who confirm north korea has launched two unidentified projectiles towards the sea of japan california is under an extreme red flag warning as wildfires rage across the state. the fiercest burning in the los

angeles area called the easy fire and forced about 30,000 people to ee vovacuate their ho. in hours, the full house will vote on a resolution that will map out how open hearings will work in the investigation of president trump the resolution is expected to clear with a ground swell of support, they want to call witnesses and form the whistleblower to question their motives. a big day ahead. those are your headlines >> thank you >> straight ahead, bumps in the road to a trade deal as chile cancel that all-important summit what happens now why are next guest says the ithowhe use has facebook painted

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>> another fed meeting, another raid cut is twitter pulling the plug on trump. banning political ads. you want to drive a peugeot in america? it might happen. it is a massive auto deal. we'll tell you about it as

"worldwide exchange" moves on right now. good to see you and welcome back happy halloween, by the way, which is also apparently the final day in october i'm brian sullivan let's see how your money is looking right now. looking a little more scarey futures were up 20 or 30 points most of the morning. you had headlines crossing that china may be more reluctant to sign a long-term trade deal that sent things down about 60 points but it was a quick flip. on your earnings front, two names to watch this morning. apple reporting better than expected number reporting up beat from wearables like the

phone and the watch. reporting a big holiday quarter and turning those fortunes around stock up nearly 60%. facebook fresh off the pressure from twitter on political ads. facebook up 4.5% nearly 8.5. one of the big factors driving reaction this morning is the federal reserve's decision to cut rates. despite that move, the fed believes external pressures on the american economy appear to be easing. >> we have that phase one potential agreement with china which if signed and put into effect could have the effect of reducing trade tensions. that would bode well for

business confidence and over time it appears that the risk of a no-deal brexit seems to have materially declined. >> joining us now from d.c. where i don't know if the party is still going on. i wonder if the fed is kind of like the nationals and taking a little victory lap today >> maybe basically says, that's all folks. saying the fed is on hold after this cut unless there is a big change in the economy. >> we think the current stance is likely to remain appropriate

inflation moving close to 2% remember, it was 2.2% and headed up above three last year chairman sited trade concerns among weakness for the cut powell suggested the fed already provided a lot of help to the economy. morgan stanley writes they need to see, quote, the outlook describing the strong household sectors. those are the sectors we'll follow closely to the sign morgan doesn't see the fed moving through all of 2020 markets have a 18% probability the chance before another cut rises to 50%

announcements that it would, quote, act as appropriate. the fed now says it will, quote, assess the appropriate path of the funds rate that is the signal for at least being on hold for a while here there is a high bar to a cut what about a high bar to a hike? >> i think we'd need to see significant move in inflation before we would 0 consider raising rates. >> okay. the next critical event is trade talks. if they fall apart again, records could be back to pricing more rate cuts and assess the cause to keep the fed on hold, brian. >> what is next? >> what's next is the china trade agreement. full about concerns about trade. interesting op-ed that says

trade is the reason why the trump economy has underperformed i am personally not certain if you just sign an agreement, you get rid of all the negatives there is stimulus that will help the u.s. economy but the aspects that will hurt u.s. spending that it will suffer through. seeing and hearing scarey numbers about the fourth quarter growth that seem down towards the 1% area. >> maybe the headline crossing and maybe it will flip and flop. >> i wrote my tag, the last part of the story before i knew that trade story was out there. it didn't take a whole lot of genius this trade thing is key for the fed and fed policy the question becomes, brian,

does powell think he has enough stimulus out there to offset the deal falling apart again i don't know we'll see what kind of reaction he gets in markets and in the real economy. >> i'm not going to lie, i stayed up to watch the game? >> i did i'm only going to be 56 years old one time during the world series i can't do it again. >> my grandfather was a friend of walter johnson, worked in maryland they hung out. i had to watch it. >> you go for it >> i'll be there in company at madison square garden. we work hard and play hard why not? i've lost too much sleep, brian. i'm going to find it >> thank you turning to twitter ceo saying twitter will ban all

political ads going forward saying, quote, political reach should be earned, not bought came out minutes before facebook's earnings call began and quickly became a hot topic for one mr. mark zuckerberg. >> we estimate that these ads will be less than 0.5% of our revenue next year so that's not why we are doing this. to put this in perspective, the ftc fine said these same critics wouldn't be enough as more than 10 x bigger than this. the reality is that we believe deeply that political speech is important and that's what is driving us >> joining us to talk more about this i think it is a really important story. my first question to you is, how do we define a political ad?

if you are elizabeth warren or bernie sanders or president trump and you tweet out, join me in cleveland for a big rally, is that considered a political ad >> that's a complication certainly politicians will continue to be able to get their message out. i know the smart money among tech journalists that facebook will follow suit and eventually also ban all political ads, i do not think that will happen i don't think it is because of money. the heat would be too bad from republicans. >> listen, political ads are tiny part of twitter and i think on facebook. mark zuckerberg didn't graduate

but he did go to harvard, you think he would know the difference between free speech and paid speech. >> listen, that is really important. look at the reaction from the trump campaign to twitter announcement he said they wer surpresidenting conservative speech if zuckerberg would follow suit and ban all those ads and facebook is core to the trump campaign, i just don't think they have the wherewithal to do that we already know republicans are anti-the social media platforms because they are bias. >> do you think it is? conservatives are saying this is

a direct attack and that this is targeted to stiffle free speech. it is believed twitter targets the conservative users of twitter have already self-identified as younger more liberal users. >> they are taking a different position, we are just not going to deal with it by banning all these ads. if facebook would try to do the same thing they are trying to send facebook a message, do not follow suit. you are too important to our campaign this is more about the hassles and not suppression. >> on twitter, i ran a poll.

do you think banning ads will be a good or bad thing for twitter's financial future 64% thought it would be good because it might make twitter a better less mean place 36% said no, it is bad because of loss of revenue what do you think? >> if you are going to make twitter a less mean place, ban twitter and ban us >> we are nice >> you are a sweet guy, you are a lovely person. not everybody is maybe at the margins that might help >> you know at the out cry, you know what an ad is somebody produces an ad and they send it out. i can tell you, the controversy is going to light. i read your stuff every week

best magazine out there. this is an ad, we are pulling it down when in reality it is just a tweet from a candidate >> the thing facebook is talking about is you have this game ification of this whole process. which is why they are notgoing to do it there are plenty of tech jour l journalists saying by thanksgiving, facebook will follow suit. >> i don't believe that as well. hard to believe. a big story. we appreciate you coming on. many thought the nationals were a dead team walking celebrating the first ever world series win and also doing something that has never, ever

been done before in any sport. your morning rbi we are back after this 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. it is already working in cities like tokyo. my dream is to help millions more people like me.

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prevagen. healthier brain. better life. >> etsy shares down about 7% because of cutting their margin guidance samsung being pressured by the down turn in the memory chip department western digital, shares are down about 10%. the company's profit outlook was above estimates. down 9.7%. in sports, congratulations to

the washington nationals who last night became world series champs for the first time in franchise history. looking pretty grim. you had a single home run and two-run shot that put the nats up 3-2 before adam eaton sealed the deal and the nationals beat the nationals 6-2. bringing us to rbi a big congrats to washington and the nationals with a come back on the year. they started with a losing record and their manager being fired. this is one for the record books. the road team winning every game in a best of seven series, which has happened here has never happened not just in baseball

but in any sport with a best of seven series, basketball or hockey think about that no team in any sport has done what the washington nationals did by winning every game on the road every team won every game on the road it capped off a wild and weird series on deck, the u.s. and china looking to press ahead with trade talks as we look towards the out look more on facebook and why your next guest says it is just the beginning for a stock's big run. stick around you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

>> i'm not your charity case. >> i am not your excuse to buy a new dress for the annual fundraiser. >> i am not the poster child for your big donation. >> i am out of debts and in my own home. >> i am off opioids. >> i'm graduating on time and on my way to a great job. >> i am. >> we are. >> what it means to live united. thbecause with nband after thleague pass on xfinityr. you can watch the out of market games you want- all season long. and with the all-new xfinity sports zone, you get everything nba all in one place- even notifications about your favorite teams. watch the dropped dimes, monster blocks, and showstopping dunks. plus get instant access to your teams with the power of your voice. that's simple, easy, awesome.

say nba league pass into your voice remote to upgrade for a great low price - or go online today. welcome back another look at futures turning even more negative following reports that china may

be casting doubt on the foe ten shal for a long-term trade deal siting an impulsive nature headlines broke and we saw dow futures turn down. shares of facebook getting a big boost this morning a strong third quarter on top and bottom line but it was the debate that dominated the conversation thanks to a late afternoon tweet by twitter ceo jack dorsey before we dive into the numbers. do you think facebook will follow suit and ban political ads? zuckerberg said they wouldn't but things could change. >> i would be surprised if they were to reverse course here.

mark made it clear on the call as facebook as a platform for free speech. in order for them to come back on that view, it seems like it would require a pretty meaningful reversal. i would be surprised hear the way we saw twitter did last night. tell us about the size of political ads if they are not going to twitter maybe facebook picks up a little twitter ad space would that be material >> we saw last night that that was less than $3 million in 2016 for twitter. for facebook, we heard it was less than 0.5% the financial impact for both is demin muss speaking to the overall philosophy for politics, these are tricky

things to handle more philosophy than it is financials >> what is the best and worse part of the quarter. >> for facebook. i would say the results were strong i'd point to revenue growth at 30%. we saw the stronger u.s. user growth in almost two years which will litigate lagging engagements. margins are well above as well you are really going three for three. unlike in previous third quarters, we always get the op ex guide you'll see it grow slower than a lot thought. we expect estimates to move higher today >> is it clear that despite some people out there and twitter saying delete facebook and

people threatening to cancel nobody is. facebook's growth seems to be growing uninhibited. >> that's right. despite what headlines lead you to believe, it is as strong as ever i think investors can take a lot of comfort in that >> if you had to look at your biggest concern. i know the quarter is good, what is one thing you are watching most closely >> what investors are looking for is a view into the next leg of growth. you probably need the increment al disclosure. we didn't get that strong results speak to that we like it as much as we always have >> you got a hold on twitter

with a $42 price target. does twitter's move make you change your thinking it is getting a lot of positive attention. does it do anything for the equity >> it is three points. number one, the financial impact very small here. that's really not the issue. what it does i think as a degree of unintended consequences. it does give clear favor to the reach. president trump with 10s of millions of followers. with their ability to get their message out there. since others might not be. second, it does speak to a challenge of deciding what exactly is political >> let's say a group wants to put a message out there combatting climate change.

now they want to put themselves in a position they need to facebook is taking a stance that we are not going to be a platform twitter has introduced new challenges >> that does it here for "worldwide exchange. "squawk box" begins right now. >> good morning, the s&p closed as record high but futures moving lower after a report that chinese officials have doubts about reaching a long-term trade deal with president trump. >> faang stocks move higher. >> and twitter's big surprise banning political ads from the platform we are getting reaction from users and facebook

it is thursday, october 31, 2019 "squawk box" begins right now. >> good morning, everybody we are live from the nasdaq marketsite in times square i'm becky quick. check out the futures this morning. they are moving sharply lower. that report says officials are concerned about president trump's impulsive nature and the risk he may back out even of a limited deal dow is down about 90 points after it was up. so a swing of about