it is 5:00 here at cnbc. kicking off december in the red. stocks will tried to bounce back from their worse day in two months the tariff man is back reigniting trade war with one of our closest allies as president trump descends on europe for the 70th anniversary of the nato alliance new warnings from china that could derail any progress on trade and call it the most intriguing opec meeting in

years. "worldwide exchange" begins right now. ♪ >> good morning, good afternoon, good evening and welcome i'm brian sullivan it is tuesday, december 3. call it nato day averages coming off the worst day. the dow dropping more than 200 points on monday we are not regaining what we lost but not in the red either we are seeing dow futures up about 56 points right now. at least right now, we are seeing the markets hold up but there are new trade fears out there. potential tariffs on france. the bond market, the 10-year yield stuck at 1.82%

around the world in asia, the japanese market cooling off, down about half a percent. the sang high comp up and hang seng down but only fractionally. in europe, things are higher viewers probably fixed on the president trump news conference we saw let's saw with europe. france, responding to president trump's latest tariff threat the finance minister saying the u.s. threat on france is, quote, unacceptable and not what one would expect from an ally adding that the european union is ready to respond shares of french companies are responding they are down across the board they are all down 1.5 to nearly 2% the threat of tariffs on goods

on champaign to handbags, cheese and wine follows an investigation into the tax regime claiming the digital tax discriminates against the american companies unfairly. this comes after president trump reignited a separate trade war against argentina and brazil saying he's raising tariffs on the steel in those countries calling it a massive devaluation of those companies wrapping up a meeting with the secretary-general. we have full team coverage on the ground buckingham palace and charlotte reed the president covering a lot of ground in the sit down today

>> that is right he was meeting and talking publicly about some of the issues that have been very core center of nato the challenges for the 70-year old alliance that should be being celebrated here in london what he had to say about president macron, very, very key here a couple of weeks ago, the french leader gave an interview and described nato as essentially brain dead that was a lot about the idea that the u.s. has stepped back from the alliance and is no longer leading from the front. we are seeing these actions around syria that is what the french leader was unhappy about. here is president trump responding to that statement >> it is a tough statement that is a very, very nasty statement to essentially 28, including them, 28 countries you have a really high unemployment rate in france.

france is not doing well economically they are starting to tax other people's products, there for we are going to tax them. that is taking place now on technology and we are doing their wines. that's a tough statement to make when you have difficulty in france you look at what has happened with the yellow vests and what is going on during different parts of the season. they've had a rough year you can't go around making statements like that about nato. it is very disrespectful >> another acknowledgment from the president, he also said he's going to be meeting with boris johnson. the optics from the british government is not one they are keen to promote. they don't like the idea of president trump and boris johnson being in the same room

because politically, president trump is toxic here and is the center of an attack line by the labor party in the past couple of weeks >> all right, willem thank you very much. let's turn to the other side of the story and send it over to charlotte for a look at what we can expect from president trump's face to face with emmanuel macron. it is fair to say this meeting has gotten interesting given some of trump's comments >> that's right. there is a question to figure out what spirit president trump would come in. now we know. a pretty punchy conference here. president trump quite critical about the digital tax in france. this came after the u.s. trade department put out a list of

goods that could be put on tariff about 100%. this is a conclusion of an investigation that started in july when the french parliament put on a 3% tax on those that make over $700 million in revenues in france they came an agreement at the g 20 summit to put the oacd in charge president trump was on board at the time now the u.s. trade deposit published a conclusion of the investigation that started in july with this list of products like champaign and leather goods. we have to wait and see if president trump wants to impose those tariffs. after this press conference, there is little doubt how he

feels about it no doubt this will be on the table. the ambassador's residence here at 3:00 p.m. london time >> actually, charlotte -- >> i don't do very well with twitter on the other side. i'm not necessarily in love with those companies. they are our companies they are american companies. i want to tax those companies. they are not going to be taxed by france. france put a tax on them it was totally out of the blue we are going to tax those companies. if anyone is going to take advantage of the american companies, it is going to be us. >> there you had it, president trump here at the press conference here in london ahead of his one-on-one meeting with president macron this afternoon.

that should be a very interesting one. we'll keep an eye on it. >> charlotte, really interesting comments there you got a big day ahead. thank you very much. not to be outdone by europe, do not forget this little u.s./china trade war thing there looks to be another ramp up chinese state media says the government is preparing a black list of what it calls unreliable entities that could lead to sanctions. the reaction is in response to a bill passed. beijing has been threatening to release the list since may we are just getting started. is yesterday's market drop a sign of things to come maybe not says our next guest unless one thing happens

if a trade war was not enough to spin your head, trump out with any criticisms of fed chairman jay powell and one of the most influential energy voices. why this year's opec summit may be the most intriguing in years. we are back after this

welcome back

it is 5:12 i told you futures were higher coming off yesterday's market down turn. i stand corrected. over the commercial break, futures went negative. why? new headlines from the president. saying, quote, i have no deadline on the china deal and may not be until after the 2020 election the president saying, hey, maybe it is better to wait until after the next election. those headlines crossing moments ago and that pushed futures from being up about 0 points to down about 40 points. a 70-point swing that is why trade matters. our next guest says trade matters as well. chief market strategist who joins us now matt, listen, these on again, off again headlines out of

china. i don't want to say the market is used to them but they've been going back and forth now a better part of a year and a half you believe the markets can hold up here in the face of that unless trump follows through with these big european tariffs. >> yes that is something that markets really aren't pricing in now we worry about the december 15 tariffs with china and whether he might put it off until after the election or does he decide well enough progress has been made there is no question that the situation with europe is something we have to be concerned about. we also saw a situation with their interest rates ahead of the negative interest rate policy which has been killing their banks is not something they are as high on

under draghi that has stayed low because of negative interest rates in europe and around the world. if those go up, that means our interest rates will go up a little bit anyway. it won't be because of a better economy. that is not necessarily a good combination. >> if we get a combination of the december 15 china tariffs and these new proposed tariffs on french goods, what happens to stocks >> they get clobbered. >> define clobbered. >> i mean, at least 10% from the highs. at least it won't open that way when it happens overnight. i believe that is going to be something that a lot of people are focused on first of all, it is priced in that this is not going to happen number one and number two, a lot of assumptions that we will get

a phase one deal if we don't get that, that leaves the uncertainty out there and a lot of the capital down. it won't be just a short term situation. it will belonger term situation. last year when powell came out and made negative comments about interest rates and how they could go up for some time. it is weird it would happen the same date as this year as well >> we get all those things and the 10% market down turn that was on a more hawkish fed the problem is and correct me if i'm wrong. i'm not making a statement, i'm asking a question. priced to perfection or at least the markets had a good run valuations cannot support any

kind of a big trade war with europe is that really the issue >> yes we don't have the valuations we saw in the year 2000 they are still very, very high they are not higher here than other places in the world. europe has been lagging badly. their valuations are kind of near where ours are. they don't want further tariffs to hurt their economy further. exactly. what you said is right we are priced for perfection and tariffs not coming on and the economy doing better next year if we get a double whammy, that will be very, very hard too. >> i appreciate that to be honest, i'm not sure what i said you laid it out. we get both tariffs. december 15 on china

the market gets clobbered. scenario two, we get december 15 tariffs and we don't get europe. then what? >> the december 15 tariffs are a big problem. again, we have a different situation with the fed we don't get the deep 20%. we get that deep correction from last year. near that 10% movement it will be closer to that 10%. the assumptions will be at least a phase one deal definitely no further tariffs. people are hoping for the roll back of tariffs. on top of that, add tariffs. that will be a problem >> scenario three would be trump is bluffing. maybe they push it back a few months and we don't get tariffs

on europe. the situation we've got right now. does the market keep going higher in that scenario? as you say, the market is already priced for perfection. we could have a little dip but it will bounce back. the scenario where people say it could melt up from here. if you are way ahead of the market, you stay ahead if you are behind, you have to play catch up. other than that, i think we've seen an unbelievably strong move here it is up just 8% the markets over the bottom and valuations have stretched a little bit maybe a little higher if some of these threats again are just head fakes we close somewhere at the end of the year where we are right now. >> i love it you laid out the three

scenarios. i know these comments are breaking is there one safe place to hide. you want to stay fully invested in the market. do bioteches look like a fairly safe haven right now >> they do they are overbought. they got hit harder than the rest of the market yesterday they could pull back a little bit. we have a situation where i think it was fairly obvious with what happened with senator warren she came out too hard on the health care for all and health care in general. we saw how she's fallen pretty significantly in the polls the last few weeks and how she's reacted to it. she's pulled back seeing this is not a winning issue. that head win facing the group is behind it it can move higher as we move into the election year and

beyond >> matt, you are like tom brady. you through the audible. the markets are turning down you roll with it have a great day >> you do. thank you. >> still on deck is your kid on tiktok, a user claims her data is being sent to china. >> 1.2 trillion. the number opec claims to have in reserves. we'll have a preview of the big opec meeting and reasons why it is one of the biggest in years futures down 85. we have a lot to do after this

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. welcome back if you are just joining us, we had a fairly dramatic turn in just the last few minutes or so. futures began to show they are higher now they are down 85 points. moments ago in the uk, president trump said this about china trade. >> i have no deadline, no. in some ways, i think it is better to wait until after the election if you want to know the truth.

i think it is better to wait until after the election with china. >> the audio no perfect there. what he said was, maybe it is b better to wait until after the 2020 election for a deal with china. the deal may have to wait until next year even after the ee election health insurance, software and biotech deal united health expects earnings in 2020 to come in largely below current estimates but right now above estimates. kind of like shares of the news balancing out stocks shares of coupa off 3% your big mover of the day. shares of audentes are doubling.

astellas to buy for $60 a share or $3 billion cash the drug being veefldeveloped to treat a rare neuromuscular disorder straight ahead, what ceos are doing again that may tick off some share holders is jet gate back futures are off 88 do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

breaking news, there may be no trade deal deadline president trump saying the deal may not happen until after nchlt year's election. stocks dropping within minutes of those comments. could opec safe the oil and gas industry would they want to the executive director of the iae will be with us in moments and hanging it up. keeping corporate jets off the radar sparking a big jet backlash "worldwide exchange" rolls on right now. ♪ welcome back and good morning. thanks for being with us on this tuesday, december 3, 2019. the morning got a lot more

interesting. stock futures did about 100-point round trip after the president said he has no deadline on a china trade deal listen to this >> i have no deadline, no. in some ways, i think it is better to wait until after the election, if you want to know the truth. i think it is better to wait until after the election with china. >> joining us now, the cnbc contributor with us. these comments moments ago we are running on the fly here it is a busy morning futures are down 107 are the markets overreacting a bit because we've never had a trade deadline yes, we have december 15 but that had been moved back i think these are some of the first comments about pushing any kind of a deal back until after the election.

>> listen, pretty much every bullish forecast i have heard for next year involves at least a trade war pause if not a trade deal the last 24 hours have not felt very pause like or very deal like it does not shock me that president has said this might not be until after the election. in the end, i don't think any phase one deal with china will go over very well. washington, d.c. won't be particularly strong especially given all of the security concerns it doesn't shock me and markets are surprised. >> i tell you what, to your point, in the last 24 hours. we just got those comments that maybe wait until after 2020. that is new. in the last 24 hours, we have real threats of tariffs on

european goods and tariffs on imported steel and aluminum from brazil and argentina not only did we get a roll back, we got a ramp up we should be asking why the markets aren't down more >> let's say we have a phase one trade deal given what we just saw with brazil and argentina, there is no such thing as a done deal the president can always return to say i don't like something else you are doing let's go back to tariffs it is like a forever trade war again, the last 24 hours suggests that is really a meaningless hope >> i don't mean this to be insulting. it is like a parent/child relationship where the parent keeps threatening one thing. at some point, does the child

stop listening i'm not calling them children but do they say, you've cried wolf too many times or do they really have to listen to these threats and take them seriously? >> i think given that the president has actually put tariffs on countries, he hasn't just threatened it really, that is the core of the trump economic agenda. i would take that very seriously. if there is something we've learned is that getting trade deals is very difficult but the president starting trade conflicts is easier than what people thought it was. it remains a poet ant and easily grasped tool >> the president also today making comments about taxation for our viewers that maybe are not familiar what the president is mad about is this digital tax in europe.

he says, listen, you are not going to tax our companies we are going to tax our companies. here is exact will i what he said i want you to listen and respond. >> i'm not going to let people take advantage of american companies. if anyone is going to take advantage of the american companies, it is going to be us. it is not going to be france >> what do you think >> that is amazing these are supposed to be our national champion companies. if anyone is going to screw with them, it will be us. to use your family analogy you are not going to pick on my little brother i'll pick on my little brother >> you've now got arguably a three-pronged trade war, you are getting into it with a kid at recess and two other kids on the sidelines, you start insulting

them and now you have three kids ganging up on you. is the u.s. strong enough to handle this. there are certain companies that have been affected is the u.s. strong enough to deal, to take on three kids on the playground >> i'll take it off the playground it is like the guy in the bar saying i'll take on all on comers there has been an impact on the trade war and the economy. going back to the investment numbers. that was supposed to be heart of the trump tax cut. i think it has had an impact 10 days ago, goldman sach came out with a bullish report for 2020 the key to that report really was kind of a trade war pause. instead of the pause, with err getting more flair ups around the world. >> markets are down around 97 mounts maybe it is interesting we are not down even more than we are

given this ramp up we've seen. i think we have set the record for metaphors and analogies. >> they are coming as fast as the trade wars. >> it is 5:35 in the morning great insight. we appreciate it >> coming up, what you need to know about the big opec meeting. futures are down 106 points. we are back right after this at cdw we get you're always looking to modernize. yeah. i'm just not sure office drones were the way to do it. [ laughing ] drone voice: l-o-l. our market share looks good, but... drone voice: where are the bagels? well, cdw can help you modernize your company the right way, with a scalable infrastructure from hpe, making you more efficient and secure.

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well cob back. dow futures down 98 points now every opec meeting has intrigue. much of what is interesting and important about it is far different than at many other meetings here is why with >> opec meets on thursday in austria. this meeting may be one of the most important in years for three big reasons. replacing the former saudi energy minister with a member of the royal family shows how important the choices have become the long awaited ipo of saudi aramco that launches on thursday, the day the opec meeting begins.

that should add another layer of drama and finally, can opec move prices higher. oil hasn't budged. it has been stuck in the mid-50s. that is bad news for u.s. producers. they struggle to remain profitable at current prices the biggest oil related etf is down 25% with other stocks down more there are very real concerns about a flood of oil related bankruptci bankruptcies next year many companies can't make money at those prices. >> the next meeting is thursday followed by the opec plus meeting. we'll be live both days from opec thursday and friday what can we. what should we expect from that? what other kind of energy besides fossil should we be

paying attention to? our guest joins us live on the line fatih, you made some comments that you hoped opec would do what is right for the world. what in your view is the right move for opec to make? >> i think opec missed this. those are affiliated with the opec now will be meeting in vienna at a time when the global economic growth is ready we should all take this into consideration that global economy is moving slowly we may even have worse news in the next months to come. that will get to major economies around the world we don't see very bright news in these emerging countries

having said that as you rightly mentioned, the opec decisions are important what they are going to decide. also market fundamentals in general are also clearly playing a role when we look at this year. this year has seen two important things one, the opec cuts and also there are many geopolitical decisions. the production is halved iran, a major oil exporter is out of sanction went almost to noeg today from 2.8 million since the beginning of the year. iraq unrest, libya unrest. despite all of the geopolitical tensions and opec cuts, prices

remain around $60. this is very important disparity that we see. we look at the past. >> fatih, let me jump in here. why is oil at $55 here, $65 or whatever in europe when you've got what you just talked about iran, protests, hundreds dead. opec cuts of 1.2 million barrels a day likely to be extended. why isn't oil higher >> why is it still at that is very simple. there is a lot of oil in the market mainly driven by the u.s u.s. shale but also coming from brazil, norway, vienna the decision to be taken is

important. it is not the only factor that determines the prices but the other factor which is the level of production growth that comes at the level of the countries that are expected to be strong this year and next year. >> for 40 years, opec was the bad guy in america literally the boogie man now, is it possible that opec because it is that group that tries to set output and prices the only organization in the world that might be able to save hundreds of u.s. oil and gas companies that are being buried in debt and can't afford to exist with oil at $55? >> the opec countries and their alliance will take the decision in vienna. it will have a major effect on

the prices what we see even at these levels, we expect that next year -- u.s. oil production will still grow by more than 1 million barrels a day. we look at the futures we see the share of opec plus russia in the global oil production will decline significantly and as such, their ability to have influence on the global market will slowly but surely deteriorate >> this will be one heck of a meeting. let's not forget the saudi energy minister. this is one of the first meetings there is a lot of intrigue wish we had time to get to more off sure wish we had time to get to

something other than fossil fuels. >> my pleasure >> we'll be at that opec meeting coming up. stock futures down 105 points. when we came in, they were up 30 the market doing 130-point you tu tu - download, edit, - u-turn on trump's commentstpu, - save, send, upload... still uploading... and maybe eventually post. this isn't working. introducing samsung business video solutions. with the galaxy note10, you can shoot, edit and post thumb-stopping videos, all from one device. samsung business solutions.

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those obstacles that limit a company's growth. i try to find companies that turn these challenges into opportunities. but by going out in the field, and meeting management, suppliers, competitors. in the end, it's these unique companies with creative business models that will generate value for our investors. that's why i go beyond the numbers. it is 5:48 here. wow, things really took a turn we had a bad day yesterday futures were higher when we started. then we got comments from the president saying maybe we'll just wait until after the 2020 presidential election to make any kind of a trade deal with china. markets did not like that. there is also a threat of new

tariffs on european goods. if that wasn't enough, yesterday, we got new tariffs on steel and aluminum out of brazil and argentina. now we are talking about pushing off that deal and opening up two new fronts did you follow all of that i'm not sure i did but dow futures are down 112, so somebody is paying attention what else are you going to be talking about this morning rescue us rahel. >> let's lighten it up it has been a news heavy morning. >> more and more chief executives are using corporate jets >> how is that helping >> keeping investors in the dark the average cost of flying climbs from $96,000 to $107,000.

that increase comes higher taxes because of the change the irs made on the amount companies can claim on use expenses from pilot salary to aircraft depression but not when used for personal trips. even more because the sec does not require companies to disclose loss productions? >> don't you hate that >> the closest thing you can get to time travel i have met with hedge fund managers they look for companies whose ceos fly commercial. they are so obsessed with cost control. once you do that, i think that is probably an addition. once you go private, not sure can you go back to newark,

terminal c >> and maybe you are not eating chicken sandwiches mcdonalds is making a latentry to the battle. announcing, it is launching two new chicken sandwiches at two locations in knoxville and houston. this comes after owners requested that the company release a premium chicken sandwich that would position them to better compete against pop popeys and chick-fil-a >> i guess they are reform lating it? >> how can you reform late the chicken sandwich >> roger fedder is making

history again. they have created a 20 frank silver coin. the first living person to receive the honor. swiss mint will make 55,000 units. it will last until the coin has sold out the coin is scheduled to be released in may 2020 >> one could say the fed has printed money. >> i'm so amazed how quick you are on your feet when you've gotten like four hours of sleep. >> good stuff. you saw those headlines. stock future are down about 100 points why you need to stay invested? some data that might make your head spin.

i have no deadline, no in some ways, i think it is better to wait until after the ee election. if you want to know the truth. i think in some ways, it is better to wait until after the election with china. >> what the president is referring to is a trade deal with china he's saying, hey, maybe we don't need a deal now or maybe early next year. maybe it is bet tore wait until after the 2020 election to do any kind of a trade deal he's talking about a trade deal with china markets did not like it. futures are up 30 points pretty big u-turn. kristin with us this morning >> you came in this morning even

with a snowstorm. >> potentials in europe. >> latin america >> and now maybe we'll wait a deal to get this done. >> how do you navigate and advise your clients throughthi every day. >> it is like a big gray cloud over the past couple of weeks or months, that positive rhetoric has been driving markets the reason for it is, it matters. if we had global tariffs it could take growth down it could erase the money for families received in the tax reform we are advising our clients to stay the course and avoid market timing we saw this morning, markets sell off stay invested.

we did an analysis of the past decade if you missed the top 10 best performing days, it would have taken your return from 8.5% down to 1.3%. in a decade. the top 20 trading days, you are in negative territory. so stay the course >> you wiped out a decade of gains. that said, there are three scenarios out there. tell me if i'm wrong we get the new tariffs on december 15 and new european tariffs. number two, no deal there and we do get the deal with china number three, no deal there or with europe. >> on this point, it is hard to make any portfolio decision.

the last scenario is kind of status quo that is where we are right now the past couple of months -- >> the last year, it feels like. >> the market has the reaction if it seems like we are going up, if it seems we are falling apart, there will be a pull back in terms of tariffs, we'll see a pull back. >> what about the full whammy? europe, brazil, china? >> when you look at volatility over the past several weeks, it has been really muted. for clients that are nervous about staying invested we remembering buying protection buy protection and use the dividend yield to buy protection and get you through the next

couple of months or next year. >> that is good stuff. if you missed 20 days in 10 years, you wipe out all the gains. great real-world advise. thank you. >> i'll see you live from vienna, austriaon thursday and friday good morning and breaking news out of china causing stocks to swing from gains to losses. president trump saying there is no deadline and it might be better to wait until after the election the u.s. considering 100 tariffs on french goods in retaliation on digital tax >> we'll take you live to the comments from president trump. we are doing it live, "squawk box" begins right now.

>> good morning. welcome to "squawk box" on cnbc. we are live from the marketsite on times square. we are live from the nasdaq in times square andrew is out today. we have tom farley in today. former president of the nyse and he is a cnbc contributor already you are seeing some pressure coming to this. dow pressure is down on the news of president trump saying he doesn't care if this gets done now or he doesn't care if it it waits until after the election dow is down. s&p of