like the deal that we have the deal we have is even better and i can do it myself we'll see what happens, we're at a critical stage they've called us today and they've called us yesterday. we're having ongoing discussions and we'll see what happens if the stock market goes up and down, i don't watch the stock market i watch jobs jobs are what i watch. i watch making the proper deal we've been taken advantage of for so many years at numbers if you were doing this you wouldn't have believed it i looked at numbers -- ever since the founding of the china's entrance into the world trade organization, the wto -- >> that is the president with a pretty nice crystallization of how china built their economy on stolen ip.

listening to him say i don't watch the stock market seems fanciful given that he tends to be firmer on his trade rhetoric when the market is close to all-time highs >> when he frames things these way i wait for the moment he stands up in an arena like alabama and says all those treasury bonds the chinese hold, how did they get it? they stole it. that's where he's headed if he's around another four years, that's where it's headed. >> you've raised that point before >> it seems a natural conclusion and it would be totally in character. not paying you back. >> threatening not to pay back >> totally, right? >> treasury. >> remember this conversation because when he says it in front of one of his crowds, they'll cheer. they'll cheer. >> markets won't >> no, they won't. >> brings up the mind-set of president trump where he looks

at the stock market at record highs and says we can afford something like this today because we're doing well >> thanks. congratulations on paper back. michael lewis. good tuesday morning welcome to "squawk alley." i'm carl quintanilla we are in the midst of a sell-off today all the major averages are lower by at least 1% dow is down 1.5% jon's exclusive with andy jassy in just a moment let's start with the markets the dow down 450 stocks down, bonds up. the economic data this week has not been all that great. the ism is underwhelming yesterday. fidelity investment director of global macro and with us barkley's global head of u.s. equity research. good to see you.

>> good morning. >> hi. >> losing 3,100 has people thinking to themselves how much did we really pile on to fundamentals we thought phase one was going to get signed. >> yeah, certainly the roller coaster of tariffs and trades are not phase one deals. the market did have a nice breakout out of a 21-month-long holding pattern. and at this point the top of that holding pattern is around 3,000 and change we're pretty close to that we'll retest that. with a market that over the last ten years has gone up 17% per year and even since the valuation peak in 2018 has gone up, we need to take that in stride and accept that ups and downs are going to happen. in terms of the ism, it was weaker this week

generally speaking once the ism has peaked and you're a year and a half later, the forward returns and the batting average start to really pick up as the market starts to discount a recovery i remain constructive the next 6 to 12 months >> how about you especially given that folks looking for global stabilization particularly in europe did sort of pin that to at least the lack of an escalation in trade rhetoric, right? >> absolutely. so i think one of the reasons that we had this rally is the hopes of the resolution of the trade war. i would point out that if you look under the hood leaving aside the s&p index, at the actual stocks that are more directly impacted.

investors are taking a wait and see approach 60 or 70 names directly impacted by the trade war that has not gone back to the april highs that we saw earlier in the year. investors were taking a wait-and-see approach that has been born out by recent developments >> so, maneesh, to dig into that further then, on a day like today it's risk off. treasury yields falling, gold up, you see utilities and real estate the best performers or the only that are green within the s&p right now, are you saying that those are the types investors should park their money? >> i think we're taking a mixed approach as you said the risk of recession the last few weeks has actually gone down cyclicals have outperformed. it's too early to switch to cyclicals. so we think the recession risks have gone down but we're not out

of the woods we're taking a balanced approach we are long health care. it's good to take a bar bell approach and not completely swing for the cyclicals right now. >> jurrien, the president says he pays more attention to the job market than the stock market and we are going to get a look at jobs later in the week. we know the run rate is down by a quarter from a year ago. what's your outlook on that and into 2020 as well? >> it does come all down to jobs we've been in a global trade recession for over a year, a year and a half. pmis did fall below 50 and some are starting to bounce our ism did not as was expected as you mentioned earlier ultimately the transmission mechanism from a trade or a manufacturing recession to an

actual jobs recession would be when profit margins continue to erode because you have late cycle pressures on wages, et cetera, and that slowdown in profits juxtaposed by rising wages ends up forcing companies to lay off people. that's how you get a general recession. everyone is looking at the jobless claims those come out on thursday as they do every week and those numbers have been strong that is the latest indicator everyone will be watching. and as soon as it starts to tick up everyone will start to proclaim the recession i don't really expect it i think the consumer side remains strong and the fed's three rate cuts along with pretty rapid expansion of its balance sheet, i think, give the market a justifiable sense that we are past the weakest part of the economic cycle and markets discount, this is why we see the

p/e go up to 18 times earnings though earnings are slowing because this is how markets work and i think this is what the markets are pricing in for next year it may not be a robust recovery but i do expect some recovery and that the jobs picture even though it will slow in terms of growth will remain intact. >> maneesh, i know there's a lot of focus on 2020 given the fact we're into december. i think back to last december it was so volatile. we saw that steep plunge in the major averages on christmas eve. historically december is a pretty solid month we are two days into the month and we're down more than 2%. is there reason to be concerned that volatility is picking up again, that we could see something play out the way we did last december? >> i think the big difference, of course, is the reaction function of the fed.

so back in september or last fall the fed was in a hiking mode and that is what scared the market at this stage now we're seeing the fed is clearly in an easing mode or easing watch and so that risk is certainly not there. now having said that if the trade war was completely to flair up again, then of course that would be a source with the risk we saw last december is not there. it's been interesting even as rates have gone up and down, i'm talking about the ten year, markets have held up quite well. the fed is alive and well meaning that if the data worsens then rates go down and if data is better equity market is again okay with that essentially the rate market is

sort of holding the equity market up. one thing i would note this is fine as it is but as we are seeing in the past when the recession hits it gets knocked out. you still get a significant drop on the equity. that risk is there but that's not our best case for december >> gentlemen, thank you. helpful with all the news in the last 48 hours. let's head back out to las vegas on jon fortt who sat down with jassy earlier >> morgan, as you know amazon is the leader in the cloud and this in vegas aws re-invent is their big cloud event of the year. andy jassy, the ceo of aws, is also the founder in essence of amazon web services which really

kicked off this cloud revolution we talked about a lot over 40 minutes. about amazon's focus on helping big enterprise companies transition into the cloud, increasing cloud performance expect to hear jassy talk more about that in his keynote taking place right now. we talked about chinese equipment in networks and then just security in general because he doesn't see this as just a chinese equipment problem. we also talked about that jedi contract that the dod, the department of defense, awarded to microsoft about five weeks ago and that amazon is now contesting in court. he had some very sharp and specific things to say about that his first comments we'll get to in a bit and then there's the question of structure. is aws ever going to be a completely separate company from amazon take a listen.

now i ask you this every year and you give me the same answer but i have to ask. is amazon going to spin out aws in 2020? >> no. i would be shocked if that was the case what i tell you every year is that i would never say never about anything having been at amazon for almost 23 years and been a part of so many things i would have never predicted. i'll never say never but there just isn't much need or incentive to do so companies spin out units if they don't want them on their financial statements or need the money to fund the growth of the new unit and neither are the case for aws i also think that customers shouldn't want to us spin out aws because what customers really want from us is they want more features, more capabilities, more services, things that allow them to move their customer experiences forward as opposed to if we spun

out doing analyst calls and building a new hr system and things like that >> all sound very lovely >> i think it's more investors, though, who would salivate at the thought of aws being valued on its own and the currency for buying other things is there any value in that >> we're pretty famous for being willing to be misunderstood for long periods of time we're trying to build value for our customers. a business that outlives all of us here. we think about how we build the company and how we evolve the company over many decades over any one quarter or a year. >> pencils down. no need to adjust those models for a spinout, folks when it comes to the cloud itself and hybrid a year ago amazon, aws, announce this had

concept called outpost, amazon equipment in data centers or corporate locations updated by amazon a hybrid approach. he talked about the importance of that. listen >> these are companies like volkswagen and lockheed martin we believe a large number will use this to bridge the existing work loads that have to remain on premises and the data center for a while with the rest of what they're doing >> lots of technology talking here as well as just the big shifts happening in economies around the world >> lockheed martin i heard him mention, really speaking to the level of security that aws has in place as well jon, we're looking forward to the rest of the interview coming up later on in the hour. we do have more from aws ceo andy jassy

what he's going to say about the pentagon's jedi. first, though, after the break it's the navy's largest ship building contract in its history. the ceo of huntington ingalls on that deal next and more. stay with us ugh, another electronic signature. you have to print, walk, sign, scan, recycle, walk, email yourself... really? more walking, try again, waiting, recycle, walk, email yourself, then get back to your day. or not. this isn't working. introducing samsung paperless workflow solutions. with the galaxy tab s6, you can sign digital documents on-screen, with a finger or your s pen. samsung business solutions.

welcome back to "squawk alley am" the navy awarding the largest ship building contract in its history, a $22 billion

deal with huntington ingalls to build nine virginia class submarines for the navy over the next decade. ceo and president mike petters joins us now in a cnbc exclusive from corporate headquarters in newport news, virginia i know we're sitting down to talk about the new aircraft carrier getting christened this news of the day, the fact you did just receive with general dynamics this award for more virginia class submarines how will that impact the company? what does that mean? >> first of all, thanks for having me again today, morgan. it's great to be with you all. the contract last night establishes the rhythm for submarine production and helps us balance the virginia class program with a startup of the columbia program and since there's significant overlap in our supply chain between the submarines and aircraft carriers, it goes well

with two aircraft carrier contract we got back at the beginning of this year all of that pushes our backlog up to $50 billion. >> wow and speaking of that aircraft carrier, the kennedy, it's scheduled to be christened late they are week. the first in six years it's a $13 billion ship. let's talk about the significance of this milestone and what this class of aircraft carrier is going to bring to the navy that previous ones haven't. >> as you know this is the second ship of the ford class. the ford class is a redesign of the aircraft carrier ship after 40 years of executing design if you think about all the things in your life that have changed over the last 40 years, we've been able to incorporate most of those into the daily activity of this ship. things like using electricity

for heating spaces instead of steam. all of that leads to reducing the maintenance cost of the ship, the manning on the ship. we've been able to take advantage of technologies to make the ship more lethal in terms of sortie rate and all of that comes to bear with a 40-year gap in design. what's significant about the kennedy is we are now moving from the ford which was the first of the class into production and what that means is the first ship is as the lead ship it's not just a production unit it's a prototype where you're testing out your design, your training plans and labor plans and your supply chains and you're doing all of those things and on the kennedy we've been able to move past the prototype phase and into production which then led the success we've had on kennedy in terms of efficiencies, encouraged the navy to move ahead with another

two ships after the kennedy. we're excited where this puts the program and it puts our business and helps put the navy on good footing for the next decade >> and that is getting a lot of attention earlier in the year as well to dig in more, mike, first in class, the "uss ford" the subject of fierce criticism, delays, ballooning costs, to be the source of the, quote, large cost overruns referenced by president trump in his tweets about the former -- now former navy secretary richard spencer when he was fired last week as well how are you getting your arms around some of those issues and what does that mean in terms of production for these future ships? >> well, in our discussion with the navy, we were pretty clear that the very first ship of the class is, as i said before, a prototype and you're testing out all of the things you think will work but then you have to adjust as you discover going forward

what did work and what didn't work what we did then is based on the things we saw in the first ship production in the building of the first ship we made significant capital investments to reduce the cost of the ship and allow us to put it together more efficiently we're very happy with the returns we're getting on that and then we had a discussion with the navy and secretary spencer led the effort to move how do you build it better his leadership drove the issue to get the two carrier buy done. it's been a step process from prototype to buy it smarter and i think that's why we're where we are today. >> in focus with president trump and other leaders meeting in london right now, increase defense spending from allies has been a growth driver for a

number of defense contractors. how are you thinking about the opportunity. >> defense, i understand the international piece. for ship building it's different. countries want to build their own ships. they're happy to talk with our designs and leadership skills, they want to have the place they build ships in country the international piece of our business is very, very small it's not in ship building. it's over in our services piece where we do a little bit of work there internationally. it's not a significant part of who we are as a company. >> we got more comments from president trump regarding china and ip theft in the midst of

this trade deal trying to be worked out right now i know this is a topic we have discussed this idea. it's been what happens most significant significantly documented where defense is concerned how do you think about that? how big of an issue is it and would you expect some sort of trade deal to change that security threat? >> that's a really good question and i think the jury is out. i'm not sure the trade negotiations go hand-in-hand with the cyber issues that we've been dealing with from a security standpoint. we have to work really hard to protect our designs from any sort of intrusions and then where we have to move to is be able to protect our suppliers as well. to our way of thinking that's a

whole separate issue from any sort of trade agreement that we might be making with the chinese. we know we've been under attack from multiple sources for many years. companies have gotten better at this we've gotten better at this. that threat changes every day. and so we continue to step into it and try to stay in front of it >> mike petters, thank you for joining us the ceo of huntington ingalls. congratulations on "the kennedy's" christening floating city, 4,660 personnel, 75 aircraft. it will be absolutely massive. looking forward to it. thank you. >> thanks for having us. we continue to watch the sell-off, the dow down 405 the worst two-day slide since early october and on pace for the worst week in about four nths

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european markets will close in a couple minutes here seema has the reaction overseas. european stocks looking to avoid their first back-to-back drop the steel mining stocks that are highly volatile. trump administration latest salvo towards france is weighing on their biggest luxury and cosmetics companies, lvmh, hermes down 2% and 3%. l'oreal also down. they make up the benchmark index and contributed roughly $18 billion in combined u.s. sales last year. the strong demand in china has lifted shares this year. both headed for their best years since 2011 a sign the luxury market is holding up in the face of ongoing macroeconomic concerns

the onset though, comes at a crucial time in october the u.s. imposed tariffs on $7.5 million of goods including whiskey and cheese this could be just the start lighthizer saying they are exploring taxes in australia, italy and turkey back to you. >> seema, thank you. time now for a news update sue herera has that. indeed i do. thank you, morgan. good morning, everyone here is what's happening this hour the early numbers are in on cyber monday and shoppers spent an estimated $9.4 billion in online sales that's a record high boosted by late night shoppers spending almost $3 billion between 10:00 p.m. and 2:00 a.m. russian president vladimir putin is criticizing nato's continued expansion. he says it is pointless given the absence of a threat from moscow following the collapse of the soviet union in 1991 putin was speaking at a meeting

of russian military leaders while president trump was meeting with nato member states in london. back-to-back snowstorms wreaking havoc on the northeast. the winter weather blamed for at least eight deaths, 240 flight cancellations, and 1,300 delays in the u.s residents are clearing as much as two feet of snow from their cars, their homes and their walkways and tokyo olympic organizers unveiled a replica of a satellite, a tiny satellite that will orbit the earth during the 2020 summer games. it includes miniature animation characters as well that you see right there. pretty cool. that is the news update this hour carl, back down to you when we come back amazon web services ceo andy jassy, a lot more from jon's exclusive with the number two at amazon and of course we're all over the sell-off session low down about 450 we're not too far away from that turn on my tv and boom,

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welcome back to "squawk alley. bob pisani on the floor with the biggest movers amid today's push to the down side bob? >> reporter: tariff threats on two fronts, french goods and maybe not a deal this year so you can see a very predictable reaction these are the big ones here, nvidia they move on trade news.

transportation on the weakside as well. fedex and ryder, caterpillar, all down this is all very predictable on negative news on the trade front. big move in ten-year yields here 10, 11 basis points. all the banks are down here including the big regional banks. they have all had a great year so far a little bit of rockiness today. european luxury stocks lvmh, richemont, hermes on the weakside a little bit of a bounce off the lows but an issue. a lot of new lows. oil is up 20%. apache, whiting, some of the smaller energy names all hitting

52 week lows today so remember what's moving the market the fed is not tightening. that's a big mover the trade war, we don't know how to characterize this, is it an uneasy truce will the markets be satisfied with no new tariffs on december 15th, keeping the existing tariffs, and no deal going into the new year the market is struggling with the concept now. if tariffs, additional tariffs are on december 15th, that is not priced into the market that would be an additional negative the global economy, a great note out this morning a faint pulse. that's what you mean when you say, okay, we're bottoming but are we really rebounding it's possible you could get an l-shaped recovery and not a u-shaped recovery. two things we're grappling with. finally on the steel stocks, a big deal announced cleveland cliffs buying ak steel. it makes sense different parts of the steel business but can you see the steel stocks have essentially become small cap stocks.

it's just like many of the retailers, slowly but surely declined into small cap territory. cleveland cliffs is a $2 billion company. ak steel is below a billion dollars. allegheny $2 billion u.s. steel, $2 billion u.s. steel, the only stock in the s&p 500 that's a steel stock is nucor and it has a substantial market cap that's like at the low end of a big cap stock. yes, we keep talking about these companies. many of the retailers have devolume fd and don't have a big impact on those indexes that we follow very carefully. back to you. let's get back out to vegas and check in with jon fortt who sat down with andy jassy earlier at the 2019 re-invent conference hi, jon. >> hey, carl we've been talking about the cloud a lot on "squawk alley" and a big part of what's going on now is big game hunting

these companies going after logos. not only to get them into the cloud but more deeply engaged in the cloud. no bigger than the department of defense, that jedi cloud contract that people thought was amazon's to lose and they lost it they lost it to microsoft. they are taking it to court and i asked andy jassy about that to see how specific he would get about what he thinks is wrong with the process he got pretty specific, listen >> we don't believe it was adjudicated fairly anybody who does a detailed apples to apples comparison of the platforms don't come out in the same spot that procurement did and most of our tus mers tell us we're a couple years ahead.

there was significant political interference when you have a president, it makes it difficult for government agencies to make objective decisions without fear of reprisal. that's dangerous and risky for our country. >> so is your position that it's impossible that microsoft won this fair and square or there are real questions given the president's comments and arguably interference? >> i think if you look at the details of it which i obviously know the details of it a little bit differently than other people, but it's just hard to -- very difficult to look at the comparison objectively and come out the way the dod did. >> what kind of details are you talking about? >> i'm pretty aware of the respective components and features and capabilities and what the requirements were

and so i think it's quite difficult to end up making that decision that they did in a fair and objective way. >> now tell me and tell the viewers, i think this is important, big picture why this matters when it comes to a country like the united states, a process like military contracts, why is this fundamentally important? >> i think that the security of the united states, the national security of the united states, is quite important not just to the u.s. but to the world as a whole when you have to make -- when you have to do work to modernize your technology capabilities as the dod does you need the best possible technology platform to build what you need to build on top of i think not just for the national security of the country but also if you think about the thousands of decisions that we

have to make across our government that are important for our country, those decisions have to be made on objective criteria and be free of political interference we're not going to make the right decisions for the country. >> did you know as soon as this decision came down that you were going to take this to court? >> not the second we heard the decision you have to look at the details and you have to understand what the rationale was, and there was a lot of data that in any one of these procurements you get after the decision was made. after we looked at the data carefully there was little question i think we have to shine a light on what happens here >> how much is he a part of the project because he was a central part of the issue, it seems, as far as the president was concerned in talking about amazon and the possibility that really did influence this

process. >> like everything at amazon jeff is aware of what's going on and has a say in what's going on and is supportive of the decision we make >> andy jassy there not tiptoeing around it. president trump's interference, he says, is the central issue why they have a problem with how the jedi contract was awarded. those four videos they submitted certainly part of the evidence they've put together on this jeff bezos did weigh in and agree with the rest of the team's decision to take this to court. he's saying it's not just a matter of national security but a matter of global security based on the united states' important position we also talked about a lot more including the chinese technology in networks. amazon deals with a lot of different companies all over the world, so i asked him about that

specifically he said it's not just a matter of china, it's vetting systems to make sure they are secured. listen >> companies have to be very thoughtful about what software they use and what equipment they use everywhere and, by the way, it's not just china. there are lots of places you have to be thoughtful about it we don't use chinese equipment or software. >> why is that >> over time almost all the software that we use we've built ourselves. even in the network we work with some players like cisco, but we have also built a number of our own routers. over time for scale and cost reasons we've had to develop a lot of our own equipment we design our own hardware, our own chips and build our own chips. but i would also say that, as i

mentioned earlier, anything we bring into facilities regardless of which country it comes from we have a very rigorous and detailed and careful process to inspect and you have to do all kinds of testing to make sure that what you're getting is what you think you're getting >> so much of this conversation around chinese equipment and chinese technology, i think, and i think you alluded to this, you need to protect against everything and everyone and shouldn't there be a way, an objective way of testing technology and testing equipment to make sure it's safe otherwise if we're just looking at one particular country deciding they're the problem, there are a couple countries over there that maybe could slip something bad into the network when you're not looking. >> it's like software testing. any quality testing there are loots of standard ways you can test

there are lots to guard against. it's not one set of ten tests you can run and say you're good. you have to have a very full and row best set you're running all the time on your software and hardware i think there are certain countries where you see more of this espionage type of behavior and you have to be thoughtful if you're going to consume products or parts from those countries. if you have the right set of tests and are diligent >> you feel confident you are doing that >> on the amazon side, yes >> we also talked about lessons learned from hq2, the search in new york and the d.c. area for new facilities of course new york backed out of that amazon backed away from new york

after encountering trouble with the local community. we talked about his outlook on the global economy given the fact he's investing in sales and marketing, talked about that on the earnings call and whether that is a call on how the global economy will look in a year or two you can see the entire interview on line. andy jassy clearly has a lot to say, guys. >> great stuff, jon. certainly making a lot of news today especially for those of us that have been following all of this jedi contracting controversy for months on end now. appreciate it. jon fortt out in las vegas stocks losing ground in today's session with the dow near session lows. down over 400 points a few moments ago. more on today's sell-off straight ahead

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i'm scott wapner top of the hour today december off to a rocky start president trump signaling he may not do a trade deal with china before next year's election. so is that a game changer for your money we'll debate that plus what is the future of the fang trade stocks too low and too high and just right one of the biggest battleground stocks in this market, tesla someone says it's a must own why isn't anyone on the

investment committee own it? that and more at noon. morgan, we're ten away see you in a few >> looking forward to it, scott, thanks over to rick santelli and "the santelli exchange." >> reporter: thank you i look up at the board and see 169. we're down 13 basis points the notes starting october 1st we've been talking how heavy it looks and how we failed at the 190 level. this is the november 1st start that looks heavy it's about the tweets and not signing phase one. i get it and there's no doubt the machines just love it. we call this day trading and markets were volatile then, too. traders like that. certainly we've gone to risk on and off and part is because of trade, the president and tweets.

we couldn't get rates up a lot why? we had a chart last week, all the flows, took etfs and mutual funds since the end of october you'd find an exodus of a trillion dollars plus. 100 billion. what does that mean? the markets will act like they're acting with the baton from risk on to off i personally think that much of that was actually data driven think ism. might not be the biggest number but the market thinks it's an important number and globally it's an important number once that handoff occurred it shouldn't be shocking the markets can be pushed easier a lot less neglect testify rates ahead anyway you know, this morning the ecb

representative for italy was out there talking about how horrible negative rates are pimco has always been on it like i have, like many have negative rates they put it quite succinctly squeeze profitability. they depress market returns and they create hardships for the likes of those who need to accumulate and match long-term assets to liabilities like pension funds and insurers we're in a place where they'll be buying securities i don't know where europe will find them all. germany, you realize that in 2018 germany had debt to gdp their economy is slowing anybody who doesn't think they're going to be running bigger deficits and adding stimulus that's where a lot of bonds will be coming from. carl, back to you.

>> rick santelli a market flash here on semis dom chu has that >> semiconductors one of the worst within the s&p 500 so far today. it's the last couple weeks we see a move to the down side. the etf that tracks the big stocks is a record high lef. back in november, so to keep that in mind that's the context here some of the names moving the markets to the down side, take a look at the ones we all know micron off 3.5%. nvidia, applied materials all up -- or down about 2% to 3% a real move down lower on those trade headlines. i would point this out, carl, if you're looking for one of the underperforming industries today, check out the peripheral

makers like apple, western digital, sea gate, hewlett-packard. a lot taking it on the chin off between 1% and 3%. big moves in computer, software and chip stocks. back to you. >> apple sill up 63% the dow down 407 back in three minutes. hi, my name is sam davis and i'm going to tell you about exciting plans available to anyone with medicare. many plans provide broad coverage and still may save you money on monthly premiums and prescription drugs. with original medicare, you're covered for hospital stays and doctor office visits, but you have to meet a deductible for each and then you're still

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the president directly addressing the sell-off today while in london this morning take a listen. >> let me tell you, we took it up about 16,000 or 15,000 and now it's almost to 30,000. it's going to be at 30,000 no, i have to tell you if it's not going to be a good deal, i'm not signing a deal it's peanuts compared to what we have picked up record numbers in our stock markets, so that's okay that's the way i feel. i have to make the right deal. >> he's now on his way to tea with the prince of wales and the duchess of cornwall. we are joined ahead of that meeting. steve, i've seen some figures that say he spoke to the press for a total of like 123 minutes today alone.

>> reporter: yes, the president has talked about a whole host of issues not just nato as well his host is amidst a general election campaign. we have a very key election for the country and for brexit next thursday one thing the president has been very clear about is not getting involved in a whole conversation about who he believes should be number 10 downing street off that as well and of course the national health service and where the u.s. pharmaceutical companies will get involved trying to purchase he has avoided that in the 123 minutes. he have talked about nato. there are a whole host of rivalries from president erdogan and mr. macron and the row the president has had about the organization being brain dead. so far the president being incredibly diplomatic though he has been taking credit for the big increase in spending we've

seen in nato countries since he took over as president he was talking about $130 billion so far $400 million more to come. back to you. >> kayla, the s&p is down 1% and it is trade, trade, trade. that's dominating. it's not just the china trade headlines, it's things like potential punitive duties on france for those digital services tax, too, right >> right it's safe to say president trump resets the agenda at multilateral summits like these instead of security stuff as we were expecting and as we were briefed on the headlines that came out of most of these bilateral, the usmca, the digital services tax and, of course, comments about the stock market where he said that's okay that it's down and he doesn't want to make a bad deal with china. of course we have the tariffs on $160 billion in chinese goods coming in a couple weeks' time the clock is ticking on that

one, carl. our thanks to steve sedgwick as well. after the bell we will switch to corporate news as we look for work day and sales force, get an update on what's happening with the cloud coming off dream force last week. a lot to watch and the judge will handle some important questions, too let's get to "the half." appreciate it, carl. i'm scott wapner did the president's trade turn just kill a year-end rally for stocks it is noon and this is "the halftime report. stocks tanking again with the markets up more than 20% this year, should you take the money and run? five questions about f.a.n.g., what they reveal about valuat n valuations, growth, and one stock to own in the group. a new call on tesla naming it a must own stock we'll debate this battleground stock in our call of the day the investment committee is ready to go. "the halftime report" starts right now.