it is 5:00 a.m. at cnbc global headquarters. here is your five at 5:00. the pressure is on with jay powell in the limelight. $1.8 trillion and beyond the world's largest ipo surging past expectations on the first day of trading we have a live report from saudi arabia coming up >> delay to a deal investors hopeful. the u.s. will kick the canon the tariff hike in december on

china. >> facebook falling. a new report says the social media giant is no longer one of the best places to work. >> and a strike again. yankees inking the largest contract again for a major league pitcher all of this as "worldwide exchange" begins right now ♪ good morning and welcome to the show i'm dominic chu in for brian sullivan trying to snap a two-day losing streak all remain negative so far the dow would open up just about four points, the s&p about one point and the nasdaq about seven points pointing to the big fed decision later today. we are seeing some signs here, movement there to the down side

1.86%. 10-year note deals, two-year note deals ahead there you can see the major board says hang seng up, shanghai compositity up and the kospi about flat for japan in european trade, german dax up 0.10%. the cac off about a quarter a percent as ftse 100 around flat as well. >> so the faa is reportedly creating a new safety branch to address gaps in their oversight. the faa has come scrutiny for approval process for its

aircraft saying he's going to be testifying before congress today. before we head to capitol hill, he'll be on "squawk box" around 8:00 a.m. eastern. goldman sach believes the economy is picking up speed again. in an interview an cnbc, goldman president and coo said let's do this policy with the fed he argues those factors are helping to offset bigger business spending. general motors is making a big bet on suv's the new lie redesigned tahoe and suburban both are longer as they move toward electric vehicles gm controls about 70% of the large suv market in north america. they don't even look real.

they are huge. >> are you an suv driver >> i'm not the largest vehicle i would drive is a nissan murano >> i drive a 4 runner. i'm thinking i might want to upgrade. >> you want to drive one of those. >> as fuel prices come down, i might be an even bigger buyer. >> back on wall street investor attention turning now to jay powell, will he deliver the final decision today he will in about under nine hours. avalon investment. always a pleasure to have you here let's talk about that fed meeting. the expectation is that nothing happens. they are clear there on hold what is it that will happen today that could be upside or down side catalyst or is this steady as she goes

>> even before the payroll report, they were on hold. there is no chance of a move whatsoever i think people are going to be watching, to be honest if that excites you, sure, watch it but the fact is that you can probably pay a little less attention to this one than normal they don't really know where they are exactly going next, again, until further notice, i think hold is what you should assume >> you mention that dot plot, the fed's forecast all the members sit around and give their forecast and think what are rates going to be in the future do you think anything can be said or gleaned that would indicate any change for the fed in 2020 with regard to their rate plans >> you know, while you may see a few showing some sort of wishes, i'll say of a hike in 2020

what they've learned is what they think pretty far in advance and what could happen would be extremely different. you'll see reaction and some people talking about what you show as far as the plots showing hikes or a hike, even. maybe it gets some press in terms of talking about it. at the end of the day, i don't think the market will react much we've learned not to read too much into it they don't really know what the path will be a lot of it will be, you were talking about it earlier, the economy seems to be firming up some what. they will hike but we have to see that first >> let's talk about what the markets will react to. trade is one of them we've seen moves over the past couple of weeks and months what exactly needs to happen what is priced into the market right now. what could happen that could

possibly derail the near record highs the market continues to sit at during this stage >> i don't think it is fully priced in that they get some sort of a detant the good percentage is priced in if you get an escalation and really a look like you'll continue to see tariffs get ratcheted up over time, i don't think that will happen you saw even yesterday, we had conflicting headlines. i expect we'll have for a while here before we get the final decision the market didn't go anywhere, part of what will help us stay stable is that the economy has gotten a bit better. we are no longer seemingly teetering on the edge of recession. that was part of the worry some part of the trade war. the economy was slowing down and pushing to the trade war we've come away from the edge,

so while it is on net good to get done with the trade war and will hopefully pick up with the u.s. global economy, that is probably not the thing that will tip us down if we don't get a deal right now >> if that is the base case now, if the economy grows, where is the best place to be where is the outperformance come 2020 >> one is to stay on the cyclical side of the equation. industrials and things we've been talking about most of the year, that continues to be more attractive versus the staples. things you thought you'd be in versus slowing down. those things were really small cap stocks in the u.s. they've lagged year to date but as they've started to pick up steam here you've seen the economy picking

up when the yield curve steepens, if you agree with us, the economy is picking up a bit of mojo here >> thank you for joining us. when we come back, we go live to saudi arabia for the latest on what is officially the world's largest ipo in history, ever plus, what to expect from the fed later on today and of course beyond former dallas fed richard fisher joining us later on in the show, if you've got $53,000 and it is burning a hole in your pocket, apple has a compute to computer to sell you a busy "worldwide exchange" after this devices you have? your tablet... seriously? smartwatch,

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welcome back saudi aramco is now the world's largest ipo, surging past expectations this morning. you can see some shots from the bell ringing hadley joins us live from saudi arabia the last i heard, it was limit up 10% on those shares >> an incredible morning for this ipo, certainly within this historical contest what we've seen over the last four years.

since he did announce he would be taking aramco to market remember, he was expecting 5% of the company to list. talking about a valuation northward. it has been a local listing. we are talking about trading up 35.2 reals per share, value upwards of $1.8 trillion telling me over the next two days, we could see it reach that $2 trillion the crowned prince so wanted. bringing in a lower price for oil. something we've been talking about particularly with the saudi arabia energy minister i said how much does this play in not just to the budget but in terms of the listing he said the day aramco lists will be the greatest day of my life it is also interesting to note

that difference between retail and institutional investors. 5 million saudis decided to back this that is 5% of the country. certainly support for the crowned prince and the company >> speaking of support, you mentioned the investor base in saudi itself, there a sense because of the low float nature because of the $1.7, $1.8 trillion, they didn't put a lot of shares out for sale probably less than 2%. there is an incentive for them to keep those shares is there sense the reason this stock could go higher and incentives for locals to hold the shares long term >> no doubt. at the end of the day, this is a process that has been rigged by the government to make sure -- we talk about aramco so often is too big to fail.

in terms of this listing, this historical moment for this country and the crowned prince, they were going to make sure this went off well it isn't unusual for saudis to step into the market if they feel it is falling unnecessarily. there isn't an upside or down side to any stock that trades. something we saw around the murder of jamal and the investment base and a lot of enthusiasm around this stock >> that could translate to a lot around day two of the gains. still on deck, turnover at the top. new numbers on the record breaking year for c suite shake ups and why our mystery chart of

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. welcome back to the show take a look at other big stocks. chevron to take charge reducing assets. more than half of the write down is due to gas drilling in april

latcha those shares off one quarter of one percent pre-market chevron ceo here this morning coming a must-see interview ollie's bargain outlet is soaring. also promoting swygert to permanent ceo. those shares up 11.5%. gamestop, reporting a surprise loss as same store sales are cut. cutting the forecast as it struggles to the shift of digital downloads. those shares off 15% pre-market. straight ahead why we are live in washington the articles of impeachment are making the rounds as president trump continues to defend his

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welcome back let's get a check on the headlines in business with phillip mena >> good morning, a neighborhood

was turned into a battleground shots range out. two suspects, three civilians and a veteran police detective were dead. there is growing concern a jewish deli may have been targeted but they say it is too early to consider. >> the u.s. navy grounds aviation students from saudi arabia the groundings were part of what an official called a safety stand down and operational pause. tis the season for upsets in college basketball for the third time of the season, the top team in the country was knocked off. this time louisville fell to texas tech the red raiders would run away with it. they won 70-57 back to you. >> two kentucky teams falling in

the first part of this year. phillip mena, thank you. president trump is calling articles against him calling them flimsy, and ridiculous. to tracie potts on what we can expect next. >> expect debate tonight and a couple of votes coming up in the house. the president giving his defense at a rally calling this impeachment light realizing the democrats are in control of the house where impeachment happens. president trump rallying overnight in pennsylvania, unleashing on democrats. >> what happened all of these horrible things, remember, bribery, this and that where are they this is impeachment light because they want to win an election >> republicans believe impeachment is dead in the water in the senate. >> i would be totally surprised

if 57 republicans vote to impeach the president. >> this reflects there is a crime spree in progress. that moves us to act >> democrats a deuce cuesing the president of abuse of power and obstruction of congress. >> accusing him of searching about joe biden. jo nobody, including the president is above the law >> the miss conduct is overwhelming and uncontested >> senate republicans want to move quickly >> i have no desire to make it a long trial i'm looking for 51 people to join me to say we've heard enough, we are ready to vote >> the president wants time to call witnesses to make his case. >> that trial is already being

planned for january. >> tracie potts live in washington, d.c. thank you for those details. when we come back, why our next guest ses don't look to the u.s. mca as a blueprint for any trade deal with china and a warning of retail armageddon if those december tariffs go into effect. l of that and more coming up memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

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investors are hopeful following reports that the u.s. and china have striked a tariffs truce. we are watching the fed awaiting the latest policy decision former dallas fed chairman will join us live the yankees smashing record for starting pitcher we are just getting warmed up here on "worldwide exchange. it rolls on right now. welcome back to cnbc i'm dominic chu, being looing at stock futures. pretty much a holding pattern if these futures hold to the opening bell, you can expect to see the dow rise about nine points, the s&p by about two points and the nasdaq by about 10

so a big holding pattern today treasury yields moving so slightly 10-year yield 1.816 pefrs. two-year, 1.613% the near 25-year-old nafta trade pact when it comes to dealing with china, house speaker pelosi signaling that vote could be up in the house that is anything but a blueprint for those negotiations joining us, former assistant trade representative of china affairs. currently president of china moon company thank you for being here how important is usmca is to the economy of the united states, canada and mexico and what it

means with negotiations with china going forward. >> fundamentally when you look at the two agreements, they are different in scope and nature. the usmca has been in place 25 years. it is an agreement of allies in the case of the u.s./china negotiation, things are quite different. the u.s. and china are talking about fundamentally restructuring their trading relationship as it had evolved over the decade. they are not allies and china is not a market economy the fact that china promised to become an economy is the fundamental reason why we are in this trade dispute to begin with the key issues and things like subsidies, forced technology transfer and other disadvantaged foreign companies, those factors

are not at play. that's why i think usmca are passed we'll be hearing a lot about that during the campaign season. we'll get a phase one agreement in the coming weeks or even sooner but we won't get a phase two deal because the issues are so tough >> given the relationship they have not just on trade but many other fronts as well, is there an expectation that these two countries can actually come to some kind of a mutually beneficial, large arching trade agreement that sets us up for the next say 10, 20, 30 years? >> the past months tell us based on narrow issues, in this case agriculture and reducing tariffs, we can reach agreement. china has resisted any restructuring of the

arrangement. we've been talking about these issues during the trade war, china has been doubling down and creating new investment funds to subsidies things like semiconductors i'm not that optimistic that we can reach that kind of long-term overarching agreement in the near term. >> you mention the president and the narrative that can be told to the voting and to the public in 2020. what exactly can the trade deals that are in progress and can be done what stories need to be emphasized and what does the administration need to work on with regard to getting some kind of a bigger deal done? >> with regard to the mca, the president will talk about benefits to workers. greater auto content in the united states. various advantages that were

included in the transpacific partnership which president trump pulled us out from intellectual property was part of that. that is part of the narrative. i think in terms of the china negotiations, we are going to reach a phase one agreement. that's what we'll be hearing about. the president will be going to farm states and talking about the sales that will be forth coming beyond that the deeper structural issues will not get addressed i think the president is going to find a way to avoid discussing those issues with regard to those issues, i don't think he'll be able to resolve anytime soon >> jeff moon, thank you for those thoughts thank you. >> sticking with that trade and deadline, we turn to retail and potential impact new levees on $165 billion of income and goods

joining me, president and ceo of american apparel and foot wear association. you are a trade association representing apparel and shoemakers, how important is the u.s./china trade negotiation for that industry? >> it is everything. i love your count down clock we are 90 hours away from hitting an iceberg and it is not a pretty iceberg we as a group are particularly concerned. we don't have profit margins to sustain a 15% tariff it is not just the december 15 dar i haves we are concerned, it is the september 1 we were hit with 92% of all apparel was hit on september 1. 53% of all footwear coming from china was hit on september 1 in terms of retail, retail this holiday season has been great. you have to ask yourself, are we

going to make any money? if we are lucky, we make 5%. you are going to take 15% out of our operating account. that is not going to bode very well we are really worried. we are not 100% convinced that the count down clock is going to work in our favor. >> rick, let me ask you this there have been folks that economists and analysts that say the u.s. consumer is healthy and would be able to absorb possible price hikes if it were to lead to a better trade situation to china down the line. how does it fair on that front do you think with can pass on price hikes to our consumers and will they be strong enough to pick up the slack? >> i give the american consumer credit

58% went shopping. 190 million people hit the stores 200 million people are in the workforce. they are shopping and spending money. it is competitive. to be honest, we front loaded a lot of goods before the holiday season to get through the tariffs. we'll survive holiday but the big question is not about holiday and not about this christmas? it is next spring, next fall will we have the margins to sustain and pass it down f. if we pass it on, there is an old adage, as sales go up, prices go down we are worried and we are really supportive of trying to improve the trading relationship with china but can we do it can it be done we are looking at a clock right now. who needs this

90 hours before we get hit with more tariffs this will not be good. we need the tariffs-t to go awa. it is good for the economy if these tariffs go away. >> let's say there is no clock you know where there is no clock, other nations outside of china. there is talk of things moving to taiwan, cambodia. how much does your industry look at making those long-term decisions to the supply chain because of the relationship of u.s. and china >> our industry has been highly reliant on china we've been trying to move away for the last 10 years. china seems to be a good partner especially for our new customer, the millennial who is very concerned about product and

safety the logical option is to go to vietnam. they have 14% market share already running double shifts. where else do we go? bangladesh, india? china is the primary place 51% of foot wear comes from china. we don't have a lot of choices where to go. okay, if the president really wants us out of china, three to five years to get out. even then, we can't guarantee what the process would be. >> thank you coming up, a number of high-profile companies including alphabet and united seeing turnover at the top. new numbers on the record breaking c suite shake ups former dallas chair fed will join us.

that big fedeeng mti later on this afternoon as "worldwide exchange" moves on servicenow put our workflows in the cloud.

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look at that gorgeous a live shot of 30 rock in new york city. add in a little bit of snow. the first time we'll see snow mixed in there at 30 rock. 2019 may go down as the year of the c suite shake up. the number of ceos heading for the exit rahel with the numbers on that story. a lot of them just deciding they don't want to be ceo anymore >> it appears so new numbers out show record ceo turn overthrough november of this year. looking back, pg&e, mcdonalds

and more there have been 1,480 departures about 12 higher than last year and highest since they began keeping record in 2002 the firm tracks changes in companies that have been in business at least two years with a minimum of 10 employees. the biggest turnover were technology and finance the factors include new roles within a different company and we are seeing examples of ceos step down but still remain within the company or on the board. larry page at alphabet and still the executive chairman of underarmor's board.

from united air leans, oscar is stepping down by staying on the board. >> i think there is an environment now where chief executives are feeling a lot more heat from investors >> a shorter leash >> yes they are giving them a little less latitude before saying you need to move things around we are not even bringing into account some of the activist investors. >> and they are paid a lot of money, so a shorter leash is not necessarily a bad thing. >> the idea of income and equality could by a driver of what is happening not just in the c suite. >> we'll talk about that story and other stories. trending so glass door has put together the top 10 places to work in tech facebook took the top ton honor

drops to 23. google fell short of extending their streak coming in at 11 apple came in at 84. amazon didn't even rank. this year's top honor came hub spot chipotle giving out free burr itos to savvy instagram users. the first to text 888222 will be gifted a free enter ray. act fast like the magic of the season, it will be gone before you know it. speaking of apple, the new macpro desk top computer is creating a lot of buzz the price is just under $6,000 to over $52,000. coming with increased memory, larger storage and processor also the same price of some

cars hub spot, a cloud computing company. unlimited vaca and paid time off. one person wrote, it is an absolutely incredible company. i'm never leaving. >> unlimited vacation time >> you can't take like five months off and expect to have a job. >> maybe not i guess if you have that latitude, you feel so much better about working long days >> remember netflix was talking about not having managers scrutinize you as long as your work was done. those were all perks, the labor force is tight you need these perks to get people to go >> hub spot. apparently, amazon, which is not that surprising. not even on the list >> facebook, even with the pr.

in sports, $324 million deal the new york yankees are betting big on garrett cole. reports suggest he agreed to a nine-year contract with the yankees that breaks down to roughly $36 million a year that deal would make the 29-year-old the highest paid pitcher of all time. the fourth player in history to sign a deal worth more than than $300 million all of this comes on the heels of that massive deal that steven stras berg got to stay with the washington nationals coming up next, netflix reveals figures for the irishman jay powell and the fed are set to release the final decision of 2019 former dallas fed chair to

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welcome back the headlines you need in 60 seconds. shares of saudi aramco surging past expectations. the stom jumped from the ipo price to 9.39 giving the company a valuation of $1.88 trillion. the world's largest ipo ever

netflix is out with figures on how many viewers viewed the film, the irishman more than 26 million accounts watched at least 70% of the film estimating more than 46 million accounts will watch the movie in the first month. >> google has poached the chief medical officer of the medical wearable startup to help the health initiative. helping for tools to help doctors search through medical records. here is how you and your money is shaping up here as the day shapes up at 5:51 eastern time futures with a stable opening bell dow would be down about eight points the s&p university by about one point and nasdaq up about six points as well bond market also a key focus

10-year yield 1.816% there the two-year government yield currently 1.636% on all fed days, a key focus will be on those rates and how bank stocks will report overall. going worldwide, we did see a generally positive session there. japan did open or close around flat the kospi up hang sigh composite up around a quarter of a percent in the european trade, a little stability. german dax up. cac up a quarter a percent and ftse 100 off about a quarter of a percent as well. looking at the macronumbers. wti crude off about one half of

1% ice brent crude off about one half of 1% as well gold, given what is happening with rates, let's look at those prices currently indicating what is happening now with a just about move there a check on other big stock moves as well. chevron will take a charge in fourth quarter and reduce the value of its assets. due to gas drilling operations it will reduce spending on some progress and sell some assets. in a big interview, chevron ceo will be on in an exclusive interview that will take place at 8:30 a.m. eastern time talking about the entire dynamic given the recent opec meetings >> shares soaring today.

better than expected earnings and sales, ollie's promoting swygert to permanent ceo those ollie shares up about 11.5%. gamestop game sells fell below 3% the forecast as they struggle to deal with the shift of digital downloads. those shares off about 15% the faa reportedly creating a new safety branch. this comes in the wake of the deadly crashes of the boeing 737 max yet. coming under scrutiny of the approval process faa administrator dixon will be testifying before congress later on today before he heads to capitol hill,

he will be on "squawk box. a lot to talk about there with regard to boeing and the safety standards of those planes. goldman sach picking up economy again. in an interview on cnbc, president and chief operating officer said that is due to easier monetary policy from the federal reserve and resilience of the american consumer >> we are pretty constructive on the overall economy, certainly in the united states, the economy feels like it might be accelerating from a sort of patchy 2019. i do think the fed's easing bias has made a big impact. our index is operating at a relatively historic low level. we are seeing the easing coming through with policy and has become more of a stim lant but corporations as well

>> positive comments there general motors is making a big bet on big suvs. the automaker unveiling the newly redesigned chevy tahoe and suburban both models longer than previous they are moving towards electric vehicles profits from large suvs will pay for this gm olds 70% of the large suv >> president trump bashing the articles of impeachment. here is tracie potts >> president trump rallying overnight in pennsylvania unleashing on democrats. >> what happened all of these horrible things remember, bribery and this and that where are they

this is impeachment light. because they want to win an election >> republicans believe impeachment is dead in the water in the senate. >> i would be totally surprised if there were 67 senators who remove the president >> impeachment moves forward in debate and committee vote tomorrow >> this is a crime spree in progress that moves us to act with urgency. >> democrats accusing the president of abuse of power and obstruction of congress for pushing ukraine to invest gate biden, freezing the country's aid and refusing to let white house staff testify. >> no one including the president is above the law >> the evidence is overwhelming and uncontested. >> anticipating the president will be impeached next week, republicans want to move quickly. >> i have no desire to make it a long trial i'm looking for 51 people to

join me to say we've heard enough, we are ready to vote >> the president wants time to call witnesses to make his case. >> thanks to tracie potts for the update one final check on the markets as we approach the top of the hour futures indicating a very stable market ahead of the fed rate decision coming up this afternoon. the dow jones down about three whole points if these futures hold to the opening bell the s&p would open by one point and the nasdaq by about eight. a holding pattern for many traders out there ahead of the fed decision the bond market holding as well with just eight hours until that decision we have seen the 10-year note drift slightly lower to 1.81 is 7%

two-year at 1.636% another place we'll watch is reaction to those fed banks. all of that coverage continues on "squawk box." it happens right now good morning, the count down to december 15 and the latest on the possibility of a tariff delay. >> chevron is writing down the value of its assets by more than $10 billion. we'll bring you an exclusive interview with ceo michael worth. >> and shares of aramco rising above the limit. we are going to break down the numbers and what it all means straight ahead it is wednesday, december 11, 2019 "squawk box" begins right now.

>> good morning. welcome to "squawk box" on cnbc. we are live from marketsite on time square. i'm becky quick. looking at u.s. equity futures you'll see red arrows. this is happening as we await that fed meeting the minutes we'll get later and the press conference that comes with chairman jay powell last couple of days, we have seen a decline from the market all of these levels near the record low looking at the treasury yield, you'll see the 10-year is yielding 1.816%. >> aramco shares have begun trading after the long-awaited trading, it is now the world's