it is 5:00 at cbs. stalling out futures point to another day of losses the fed chair points to a two-day meeting. lawmakers days away from announcing details of a new nafta deal another blow from boeing a former employee says he warned the company about the max months before those two crashes >> to the mall, a new spin on aging retail hot spots another black eye for softbank

abandoning another investment at a loss "worldwide exchange" begins right now. ♪ >> good morning, welcome i'm courtney reagan in this morning for brian sullivan live pictures from the top of the rock currently 56 degrees in new york it will get up to 60 degrees 15 days until christmas. hope those ice skaters are prepared there at 30 rock. let's get you a check on futures. blue chips coming off their first downed day in three sessions pointed down to an open lower by 120 points we have a number of hours before the bell sounds. s&p 500 down about 12 and nasdaq

off about 36 points at this moment looking at the treasury market the 10-year has been around 1.8% right now. that's where we remain food, 1.842% the two-year is at 1.87. in asia, we have a mixed picture, the any kay lower and hang seng down 0.2%. shanghai composite positive and the kospi up about half a percent. among today's top stories, let's take a look at auto sales in china, falling for a 17th straight month in the month of november down 0.6% on the year. more than 5% in september. we'll stick with china consumer inflation ticking up to an eight-year high last month as pork prices continue to

skyrocket. chinese imports of american soybeans increase 18 fold compared to the same time last year trade talks continue to move forward. the purchases have occurred through specific agreements. falling outside normal trade canals th channels up to 8%. officials set to discuss the usmca that could clear the way for a vote before the end of the year, so a new version of nafta. the house speaker said she expects the final agreement to be set today investor attention turns to the fed. they are likely to hold steady after three consecutive cuts earlier this year. joining me now, our cnbc contributor. joining us here on the east coast. any expectations out of the fed

beyond the status quo, holding where we are >> i think you are right this is in stark contrast to where we were a year ago a year ago, the fed was forecasting that they were going to raise rates three times they actually cut rates. this stance by the federal reserve will be interesting to see how powell sets up for 2020. we have the ecb this week. a lot of central bankers continue to push on and there for, we see constructiveness we have seen a lot of red in the markets. i think the red i want to talk about is in santa clause the rally is in tact as long as we have something positive after the december 15 conversation or deadline >> telling us the santa clause rally is like christmas to new

years. those are typically low-volume times. that has been front and center what is behind the scene is the stance you look at the treasuries and all the movement has been by and large due to the fact that rates are staying low. you look at the 10-year note of 180, 181 like it is right now. in comparison to the german boom, that 10-year note is hard to believe it is 2020 almost and here we are with a sub 2% 10-year. >> it is interesting that you say the fed is behind all of this if you think about the timing we have the fed meeting now and this december 15th deadline. if you are chairman powell, what is your calculus to figure out what your message will be to the market when you have this huge uncertainty. >> what he did and i'll give a

kudos, he got in front of it if we don't get this december 15 trade tariff deal, this phase one deal, the market pulls back. the market goes back 100 in the s&p 500. 3% still above the highs from early this year. there is a cushion and pillow. we have seen chairman powell deliberately did that. >> when i think about the december 15 deadline and whether we get these new tariffs or not. how helpful is it? if we don't get them, did it really help anything or keep things from getting worse? is. >> the tariff is the focus but think about what started the problems here. the fact that we wanted these tariffs to be implemented to change the intellectual component. that is not talked about enough. we started with tariffs, i think we have to end with tariffs. what is interesting is the data.

the data out of china is showing we have the stronger hand. we saw a jobs jonumber we saw larry kudlow talk about how great the u.s. economy is. that is in start contrast to the china isi china situation. >> are you looking at things in china like the customs data that show maybe we have an upper hand there. >> auto sales overnight. there is a lot to point to we have to remain focused on the u.s. accounting. everywhere i go, i am seeing strength i'm seeing cranes in the air i think we are in a good spot. the data is starting to support that that is helping markets heel an move forward >> the jobs market stronger than we expected. that pace may not be able to continue if you look at certain sectors like manufacturing

some noise with the gm workers' comping back what about in general? what do you think there? >> i think manufacture piing ine u.s. has changed if we look at one of the sectors we focus on and is still revealing strength, it is technology we talk a lot about technology it has been two years. look at the faang stocks you take apple out and maybe facebook, they are still attracting assets. we have to stick with the themes a lot of people talk about the dog and the dow. not so much. i think you'll see the themes carry over to 2020. >> so winners are going to win maybe like the ohio state buckeyes >> i wish you the best of luck >> you as well

merry christmas. thank you for being here a former manager at boeing is speaking out. he says he warned the company about problems with the 737 max in the months before the two crashes that forced the grounding of that aircraft frank holland as more. >> this former manager said he flagged problems and worried a push to increase production would lead to critical mistakes. he testifies before congress tomorrow in an exclusive interview, he described the conditions at boeings plant. >> what words would you use to describe that factory at that point? >> dangerous unnecessary. taking unnecessarily risk, chaotic, disarray. >> he says he sent an email to the general manager of the max program in june last year four months before the lion air crash

saying he would be hesitate for the first time in his life to put his own family on the plane. he forced boeing to shut down operation of the plant boeing said, quote, although he did not provide specific information or detail about a particular defector issue, boeing took his concerns about the production disruption seriously. before testifying, he was requested about a letter he received from a former employee saying that letter raised good concerns but it is not clear if it was sent from pearson >> thank you for bringing that to us. when we come back, a first on cnbc interview with former trump confidant scarimucci

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sfloo leaders in the world of politics and business descending on abu dhabi for the 2019 salt conference we join dan murphy there live.

>> salt is an invite only conference the leaders i've been speaking to have two things on their mind that is china trade and u.s. politics i asked the president on the counsel of foreign relations what he thought the biggest risk facing the u.s. economy in 2020, no surprise to see trade on the top. >> the biggest threat to the economy is the president's own trade policy the tariffs he's putting on, his attack on the world trade organization this is probably taking half a point or more off of america's gdp and off of global gdp. also what that suggests if he ever wanted, he could pull back and ease up on some of the tariffs. that in and of itself would give a boost to the american and global economy >> the reality is, the new

deadline on those china tariffs is coming on december 15 investors here want more clarity about what the u.s.'s next move is going to be certainly a big question mark for now. i had the opportunity to speak with anthony scaramucci himself and asked him to react to the latest impeachment headlines we are hearing. >> he'll be the third american president impeached. there is a sadness to that, frankly. even though i've broken from my support of president trump i am an american i want to see the president do well i want to be less partisan about that when you hear that, and he will go through that process of impeachment now, i think the market is sort of saying he'll get acquitted in the senate. you have to be very careful. once that water fall starts and the president is in the barrel heading for the cliff, so to speak and there is more

information. that water fall of information cascades, it could be damaging to him and his reelection prospects. i've said this often, he may not be running for reelection come november >> anthony scaramucci also telling me he believes mike bloomberg is currently the best placed democratic candidate. he said anything could still happen at this point >> you spoke to mr. haase and scaramucci i think bob dimon. what did he have to say? that's right i asked him about another key risk event for global investors and that is what is going to happen at the uk election. the brits go to the polls later this week this an election that will determine the outcome of the election

bob dimon believes boris johnson is going to be able to form a commanding majority and get brexit done by the end of january. that could be significant for investors. clearly that has been impacting asset an currency markets. currently a big issue in the uk and around the world >> it has been there has been uncertainty and surprises along the way. we'll be paying attention. dan murphy, thank you very much. still on deck, why a major real estate developer is looking at teens for turn around in our nations biggest malls and how many people are expected to fly come in holiday travel season. if you are one, you are not alone. all of that and more as "worldwide exchange" rolls on. prescription eyewear can be really expensive.

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disclosing a stake in the company. an sec filing did not declare whether the stake will be active or passive the fund has had a banner year up more than 50% and chewy reporting a smaller than expected revenue loss the on line retailer is raising revenue guidance for the year. lore today by about 4.5% but up 8% from the ipo in june. still to come, we are live in washington where the house is expected to unveil at least two articles of impeachment against the president today. taking festive to a whole new level. the house that is setting the record for the most decorated christmas trees. stay tuned, you are watching "worldwide exchange" on cnbc from an everyday solution... to one that can take on a bigger challenge.

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in washington today, democrats are expected to bring articles of impeachment against president trump. tra tracie potts has more from washington >> we'll now know the direction democrats are headed we are told there is going to be one final meeting of lawmakers to review these articles before making them public >> there is no condition --

>> the committee is expected to announce formal impeachment charges against president trump this morning >> we have identified two different patterns of misconduct that need to be a part of any article that is written. >> overnight, five sources told cnbc those charges are expected to be abuse of power and contempt of congress >> it is a disgrace to our country. it is a hoax and should never be allowed to happen again. >> the announcement comes after a contention hearing where both sides laid out their case. >> impeach a president 63 million people voted for over eight lines in a call transcript is ba lony >> this is checking all three boxes. >> coming off finding mistakes but cleared the fbi of political bias for spying on the trump

campaign during the russia investigation. >> we should have been fired if we didn't investigate this >> both sides should be held accountable. >> ordering 40 corrective actions based on that report now, all of that was related to the origins of the russia investigation and how it got started. president trump, by the way, turns out is meeting with the foreign minister of russia at the white house today. >> you mentioned there is one more meeting this morning. what happens after that? how does the time line play out for us >> after these articles clear the committee, the full house still has to vote on them. this is not a final, final step but pretty significant once the full house votes, that's it. the president has been impeached or charged with these crimes that is expected to happen

before the winter break next week >> thank you coming up, this morning's top stories including head lines and mall rats. there could be a bright light. diana is live in phil. are you the mall rat >> i am so not but there is a specific shopper that is going to save brick and mortar retail. and there is a candy connection. i'll explain coming up next.

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stocks losing steam as investors watch trade talks and a fed meeting. softbank scaling back risk after one startup and high profile investment miss steps and the return of the mall the one group that could breath life as they fight for survival. you are watching "worldwide exchange" on cnbc. ♪ >> welcome back, i am courtney reagan in for brian sullivan thank you for joining us let me give you a check on the morning headlines. phillip mena is in new york with the latest >> good morning. fear continues to grow this morning for the fates of tourists including nine americans on white island off

thecoast of new zealand when a explosion happened five people have died, eight are missing. hopes are fading they'll find any signs of life. dozens of people still hospitalized > flu season is off to full swing. the cdc is affecting millions of americans. already seeing about 1.7 million cases with the majority in southern states. so far, there have been 16,000 flu hospitalizations and over 16 deaths including children. expected to hit its peek between now and february and plenty of time to still get vaccinated a german couple has broken a record for the most christmas trees crammed into one home. 350 total each decorated from

top to bottom. they hope to do 500 trees next year this might be the most festive fire hazard on earth >> i wonder what their electric bill looks like and if they have to plug and unplug it each night. >> griswalds here is how futures are looking half way through 5:00 a.m. hour. the dow jones down more than 100 points, s&p 500 off almost 11 and nasdaq down by about 36. we saw stocks fall off yesterday as well. let's look at the bond market. the 10-year around 1.814 two-year at 1.611. the asian markets overnight. we did see a slightly fixed market the kospi did put up the biggest

gains, higher by about half a percent. nikkei down marginally and the hang seng down about 0.8%. european markets are down across the board. germany down more than 1% at this hour. we are continuing to watch the developments in what may or may not happen with brexit going forward this week. among today's top stories. apple is asking the federal report to continue monitoring two former employees accused of stealing trade secrets from the tech giant arguing the chinese-born workers were potential flight risks after being arrested while heading to the airport on their way to china they say there on their way to visit family alphabet is adding an

acclaimed biology, the third woman on the company's 11-person board. saying arnold brings incredible academic and expertise soft bank selling its stake in wag back to the company and giving up two seats on its board. the move by the vision fund comes amid scrutiny among unprofitable startups like wework and uber. those were a bit more high-profile than wag. if you think brick and mortar are dead, think again joining us from downtown philadelphia this is a great story, diana >> reporter: i knew you'd like it if millennials killed the mall, teenagers are going to revive

them that's the message just opening this $400 million fashion district in downtown phil saying 81% of teens prefer shopping in stores again z spending increased and influences $460 billion. >> they are huge fans of click and collect. they click on line and pick it up in the stores they can get the tangible and social experience and the key is that they are buying more. >> so teen foot traffic is the new rent one of the new nations candy topia. bowli bowling alley, and teen apparel stores we are seeing upticks of our

traffic, so yes. that's not to suggest every mall is a winner. that would be foolish to say right now. people have said if 40% of the malls of this country are obsolete and i've sold off 50% of the malls i don't want to own. >> selling off and other investors are investing more another benefit is that mass trasity comes right up into the mall it is all about that foot traffic. >> interesting i feel with each generation, we talk about new hope for them shopping in the malls. now it is gen z. does this happen with age and time you get busier and don't have time to go to the malls.

each generation is holding on o hope >> researchers say it is all about this the phone. millennials didn't grow up entirely with their phones so they found it so thrilling gen z is not obsessed the way millennials were i do see teens on their phone, especially mine but they do want that social interer action >> i see the board behind you there for philadelphia station computer traffic does guarantee some foot traffic but doesn't guarantee that they buy, that that conversion happens. that has been an issue with the world trade center 300,000 commuters sounds good but if they are not walking out with bags, it becomes a thoroughfare >> we were in the mall yesterday. there were definitely a lot of people walking through with

bags attracting them with wellness, health, you saw all the attractions there. they are going into the stores and buying research is showing that those sales are actually increasing in the mall but it is specific malls you can go out to the suburbs in strip malls. they are empty these specific ones with a lot of foot traffic in major urban areas and other things in the mall, they seem to be doing better >> interesting story thank you for bringing that to us for more on the state of restale real estate, i'm joined by our guest. thank you for being with us. i understand you probably sat there and listened to what diana had to say what do you think about gen z and a mall being located in the right place with the right attractions, could this be something that could revive the mall experience. >> don't count the mall out,

bricks and mortar is still part of the omni channel experience the majority of sales still happen in store over 80% this year's behavior of seeing the younger teens and pre-teens go to the mall is not a big surprise there was an increase on line of over 55. the teens and millennials did go to the mall this year. when you consider the experience, the decor and opportunity to sit in santa's lap, it is not something that will go away >> what brings someone to a mall, maybe as a teen or someone slightly older if you have the experience of ordering at home, if the weather is crummy what do the malls need to understand >> great question. the good ones are doing it well. they are creating those touch points emotionally with the

reason to be there we know it is inconvenient to find a parking space once you get there, you are animated with the excitement of the decor, the music, the feeling of being at a place that maybe they grew up in and thought it was special to be at during the holidays. noting the younger buyer behavior is to order on line and pick up in store that has been very good for the industry but also speaks to the relevants of omni channel. good retailers need to have an amazing on line and in store presence >> when we think of the teen market, we associate fickleness in general with any generation if you are a mall retailer and you want to maintain relevance, you need to have the right stores at the right time does that mean you you are looking at shorter lease times or options to have the most

relevant players >> great point i think landlords are needing to have different lease structures and accommodate popups you are seeing malls continue to expand a store within a store. we see changes happening in half that time. i think to be relevant, a retailer and/or landlord have to work together to make sure that engaging experience is still able to happen >> we've seen a lot of these big names, i'm thinking about a forever 21 that pops to the top of my mind you saw simon get involved with aeropostale. are those partnerships you think will become more likely because the mall is so dependent on making sure some of these retailers still fill spaces that

are productive >> that's a clever way of attacking what is happening. some retailers may have good concepts and fall into liquidity issues private equity had really gone head long into retail and that has subsided some now. recap tallization is something we'll still see. >> we have talked before how things are experiencing and leaning towards experience food is quite important and i would imagine important for teens ads we see the biggest percentage of spending is going for food what is important for the mall retailers to understand when it comes to a dining experience >> coffee, hot chocolate, seasonal cider, great food offerings, new food offerings, new trials

food is central as is music and decor this season. food has taken a front and center position in the experience >> that makes me hungry. i like the idea of seasonal cider. thank you for joining us >> thank you when an early morning analyst calls to tell you about netflix and that the company will lose 4 million u.s. subscribers in the premium price tier thinking netflix needs to add another lower priced service to better compete with disney plus, apple, hulu and peacock. a more attractive buy around 260 a share. compared to 294. shares down about 3% in the pre-market >> coming up, google looks to stream line your in box to help make emailing more efficient the holiday travel headaches

look ready to return new numbers about how many people will take to the skies. pack your paentice we have more when "worldwide exchange" comes right back

♪ sno let's get a check on stocks on the move this morning enjoying that beautiful tree financial times reports the trump administration is pressuring japan to develop a replacement for the f2 fighter jets the deal could be worth tens of billions considering three options, working with lock he'd, collaborating with bae or making its own plane domestically shares of lockheed are unchanged and bae is down. nor opportunity life lock and the wall street journal says one

option would be to merge with mcafee consumer business other bids reportedly made for shares of norton life lock and mongodb, the cloud data base company is projecting currenter results. shares there are nicely higher by about 9%. we'll find out what else we'll be talking about four top trending stories here >> we'll be talking about this around the water cooler. this holiday season, skies will be packed. projecting 47 million passengers will fly globally. an average of about 2.6 million people in the skies over a span of 18 days starting roughly a week before christmas and a week after new years. the busiest travel days are the weekends before and after christmas, christmas day and new

year's eve i hate traveling this time of year. >> it is so hard it is a necessary evil prices are higher. supply and demand would suggest i have a lot of competition for those seats. >> the volume goes up even though the hassle goes up. more people don't want to drive. >> they are not doing it this year we just keep doing it. we love our families so much >> we also love email. google is launching a new feature likely to make your in box more efficient sending e-mails as attachments before forwarding or downloading first. google says in some situations, attaching e-mails would make more sense than forwarding them. making finals easier to access

and save you from the burden of shifting from multiple forwards and addresses and yeses and thanks and maybe just read the important e-mails. not necessary but maybe good >> maybe, i can see why. if you don't want to attach th whole thread but a portion but it is one more thing i have to open >> not necessarily >> and tell me the file won't preview right. >> a lot of people reply with a thanks and we have to sift through. >> not sure i really need it >> kanye west recently debuted the opera. covered in silver from head to toe. one of 100 performers dressed in silver the video shows the group in a

floating barge singing several hits and holiday fafryes his second opera, believe it or not. >> forgive me. what is it about do you know. >> i'm a huge kanye west fan some of the things he does and say, i block out his music i love this is another take on his music. this is brilliant. who wouldn't want to hear one of his hits "jesus walks" in a gospel version >> i don't understand the silver i couldn't understand what is it about. >> i think you'd have to ask him. >> i have ideas. i'm going to look into that. stick around for this, in sports, the new york giants facing the philadelphia eagles in a monday night battle >> america's team, by the way.

>> giants get on the board in the second two touch downs and philly ties the game in the fourth quarter forcing it into overtime eagles score the game winning touch down to beat the giants 23-17. >> you meant to say the eagles valently fought back because they are american's team the giants, listen it is not a royal situation. just because your last name is manning doesn't just mean you get to play. my team won, that's all that matters. it is not ohio state but pretty good >> oh. on deck, lulu lemon with an executive who heads to the board. and nintendo with the popular switch system and struggles in

china. >> announcer: today's big number, 25%. that's how much sales of luxury preowned watches make up the overall watch market aorngccdi to the financial services market

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there were babies involved... and they weren't saying much. i envisioned what it's like for babies to have diapers around them. that's what we do at 3m, we listen to people, even those who don't have a voice. at the end of the day, we are people helping people. time for the executive recap. the headlines you need sanofi is ending research in certain diseases and will instead focus on cancer and other specialty diseases as part of a broader overhaul by the new ceo. hudson will join "squawk box" at

8:15 a.m. eastern time the switch system is on sale in china. shares grew 2.5% expected to face challenges with chinese consumers. shares up about 3% >> lulu lemon ceo is leaving to join away. the latest major hire by the startup as it doubled the workforce to 600 employees so far this year. >> as investors await a potential deal ahead of the december 15 trade deadline we are joined by chief investment officer erin gibbs. a big week for the markets we have the fed. we think we know what they are going to say we have no idea what is going to happen on december 15.

we have potentially have brexit developments what is your advise this week? >> one thing we've seen as we've moved particularly into the fourth quarter is less appetite for risk and tolerance for companies that don't make money. those companies that promise two or three down the year and we'll take over the market and make money. we've seen these ipos moving big numbers. we'll see the decline of companies go to the market if they have more concrete plans, for example wework this sends the sense that investors are willing to take on high-risk assets we've seen valuations coming down particularly in this week, we have so many unknowns. the tariffs and going into 2020

looking at lower growth, investors should be focused more on quality and they are able to have quality earning and stable earnings also look at a level more value and be more careful about what price you are bringing into these companies. >> are you looking at consumer stable names like walmart rather than something like an amazon? >> actually, both of those companies are still -- amazon had gotten beaten up this year walmart, target are doing well good companies making profits with higher profits, higher growth picking and choosing i'm not saying certain sectors i do like the health care. they are exactly that. some of the health care stocks really do have that stable earnings and industrials that have gotten beaten up over that

situation. today, one of the ideas is that there is a nice quality etf that has been really outperforming the u.s. market over the past year particularly in the fourth quarter. that is the type of investing i like to see going forward in 2020 >> that will be a big year going forward with the election. it doesn't appear the market is too concerned about the development with the impeachment. that could change things in 2020 >> right investors are more concerned about what might happen in the elections r elections versus the impeachment process. it seems that washington has discounted that impeachment passing through the senate investors are looking at could we get one of these more extremist candidates to make

more drastic changes and how would we play that health care being one of those industries that could be a big impact definitely something we are keeping an eye on. it still looks like we'll have another four years of republican presidency wall street is slow and stable for the next 12 months >> that's it for "worldwide exchange." "squawk box" begins right now. good morning, trade watch. reportedly hours away from announcing details of a new nafta deal another blow for boeing. a former employee says he warned the company months before the two deadly crashes soft bank cutting its losses details ahead. it is tuesday, december 10, 2019 "squawk box" begins right now.

>> good morning and welcome to "squawk box" here on cnbc live from the marketsite in time square becky is off today take a look at u.s. equity futures. s&p looking like it would open sof about 10 points. nasdaq also down about 36. and the dow set to open down about 110 points the 10-year note now at 1.812. as i was thinking about paul yesterday, i was thinking what would he think of all of this right now and where treasury yields actually sit. >> at a moment in time