♪ welcome to "street signs." >> these your headlines. >> a lackluster start to the holiday week the stocks in asia and europe but wall street looks to end the decade with a bang the s&p 500 up almost 190% since 2009 >> china will cut import tariffs on a range of products from january 1st while both president trump and xi jinping say the phase one trade deal will be signed soon. the tensions between the u.s., germany and russia run

high berlin and moscow criticize sanctions against the gas pipeline accusing washington of interfering in internal affairs. credit suisse, confirms it had former executive board member followed after the domestic regulator opens a probe at the lender. ♪ china plans to reduce tariffs on more than 850 goods as it looks to boost imports in the coming year. according to the finance ministry, beijing will lower the rates for goods such as diabetes drugs and frozen pork to help with shortages caused by the swine disease. this as the second largest economy faces slumming growth and trade tensions with the u.s. president donald trump says progress has been made in the

so-called phase one trade deal after a phone call with president xi on friday u.s. leader tweeted he had a good conversation with his counterpart and a formal signing of the agreement is being arranged china's news agency reported during the talk the chinese leader expressed deep concerns about the, quote, negative words of the u.s. on the country's political affairs. president trump struck a positive note about trade talk in an address to young conservatives over the weekend. >> we also took the toughest ever action against china. and as a result, we just achieved a breakthrough on the trade deal and we'll be signing it very shortly. they're already buying billions and billions of dollars of products, agricultural products. >> the pentagon is urging local companies to open up their 5g technology company to compete with huawei. the paper spoke with the head of research and development at the defense department and she would like to make the

technology open source in order to more quickly create an american alternative washington had received well over 100 license requests to sell to the chinese tech giant this year even after huawei was blacklisted over national security concerns. italy's industry minister would like his country to be the latest u.s. ally to defie the huawei back list the ruling five star movement told a local newspaper that the tech giant should be allowed to roll out in 5g or allow to roll in 5g as national security guarantees have already been made his comments came after a parliamentary came in rome let's take a look at the last ten years as karen mentioned in the opening headlines here, we are poised to see the u.s. stocks close out the decade with a bang the s&p 500 in particular this main benchmark is nearly 200%

higher than it was just ten years ago. so nearly tripling when we look at the actual points currently trading around 32.21 this is, of course, on the back of what has been the longest expansion on record, albeit the actual growth rate we have seen fairly muted inflation muted, unemployment very, very low and don't forget it has been an incredible period for share buybacks and dividends returned to shareholders for s&p 500 companies they have returned nearly 13 trillion dollars worth of dividends and buybacks to shareholders over this period. so incredible, incredible run for this index let's take a look at the dow which also had a very strong run. of course, over the last ten years the dow up around 170% over this ten-year block to 28455. now the nasdaq, the tech-heavy index has also been a major beneficiary of the bull market currently trading just under the 9,000 level.

that marks about a 290% rise from ten years ago so massive, massive run for the tech-heavy index as well and the question now, of course, how much longer can this bull run continue it's been incredibly strong close to the year in stark contrast to where we ended 2018. as we were discussing on "squawk box" depends where we look at the gains. two-year period, not quite as strong as we look at the last one-year. we have a guest not as optimistic either, daniel morris just reading through some of your comments. you think there's some scope for further disappointment you're not also all that positive on the gains we have seen on the markets. >> it's nice have a santa claus rally going into the end of the year and in general things have gone better over the last month than people feared around new recession risks and pmi saw recovery and that's quite good

we think of the risks around brexit and u.s./china trade, i don't know that those risks after all this have diminished all that much. still honestly about as much uncertainty about the future relationship between the uk and the eu and won't know what it will be like for at least a year around the u.s./china deal, a lot of scope for disappointment and seen how trump can react if he's disappointed and'sly see tariffs go back up and threats going back up on china if he doesn't think the chinese are fulfilling on the promises they made. >> the market reaction are not responding to the negatives and i think it's been a stunning year the dow, after very strong returns any way, by we got to december, market just kept going. come next year and do have all the disappoints elements, the fed just stimulates. they cut rates again and the stock market goes up. >> well, the first concern is how much further can they cut at this point on average when you had proper fed easing cycles and that

assumes you're moving towards a recession, they averaged around 600 bases points i don't think they can do that from where they are unless they go deeply, deeply negative we do anticipate a cut likely after the election, but what will be crucial when and if they do is what the justification is. worried about slowing growth, that should be risk off. or they say growth is fine which is it is but don't have inflation where we want it to be, it should be positive for risk assets. the explanation for the cut as them doing that which the market honestly already priced in. >> you mentioned also the relationship between the u.s. and europe earlier this morning we were discussing the latest when it comes to nord stream two and germany on that front. do you see the relations deteriorating in 2020 between europe and the u.s.?

>> well, hopefully we'll be optimistic and hope they'll improve. certainly scope for dee tearuation trump receives this. the u.s. does have a lot of leverage vis-a-vis trading partners so it has outsized leverage. we have seen afterwards the last couple weeks with the deal with mexico and deal with japan, don't forget and with china, trump's conclusion might be that tariffs is a really great tool to achieve my economic or political ends and that suggests at least the possibility that he continues to do that, if and when he thinks there needs to be changes on the european side >> the german stock market and the italian one kept pace with the united states. if we have a year next year of returns more modest in the u.s., where does that leave europe been very few instances europe has outperformed the united states and if anything you need a decent u.s. performance to keep other stock markets afloat. so what happens if we only have

modest returns at best on u.s. stocks >> i think the leverage for european will be valuations because i think the difference is, you're right, they performed more or less in line with u.s. this year however multiples for the s&p are much higher than they are for europe. european valuations by and large are average. even if you have modest growth on both sides and modest gains, i think the fact that you would assume to see some normalization of some evaluations on the u.s. on a relative basis could be a drag compared to what we see out of europe. >> on that point, part of the reason that the u.s. has remained such an attract i have investment region is because of the share buybacks and dividends. the last decade, the s&p 500 have seen companies return nearly 13 trillion dollars worth of to shareholders is that going to continue into 2020 are we going to see that continue to pull in investors, that return to shareholders? >> i think we would expect it to continue i think the question is really how important is it?

if you at least look today at what forecasts are for earnings growth next year in the u.s., it's around 10%. that's eps growth. if you look at net income growth, it's about 8%. you only have a 2% gap due to share buyback. it is a factor and that matters much more when growth is near zero as it has been this year for earnings get anywhere near the high single digits, the buybacks help but i don't think it will be the key driver. >> daniel, thank you very much. we're going to push on and look at one of the other big stories in europe here today german finance minister accused the u.s. of quite serious interference in its domestic affairs, this after president trump imposed sanctions on companies constructing the nord stream 2 pipeline. 9.5 euro pipeline raised concerns in u.s. and europe supply gas directly from russia to germany by the baltic sea, bypassing ukraine. russia insists it will push ahead with the pipeline. however, the contractor says it

has suspended work following the sanctions. we have now had a response from the kremlin to the latest developments the kremlin says we hope that u.s. sanctions on nord stream two gas lines will not hinder its construction they decline to say how it would be finished and decline to provide a timeline for the launch of this project and say it's too early to speak about retaliatory steps against the u.s., but such actions will not remain unanswered. so most certainly leaving the door open for retaliatory measures against the u.s one feature of the u.s.'s decision to move forward with sanctions is that sticks out to me is that u.s. lawmakers in both houses overwhelmingly supported these sanctions, the approval of these sanctions and to have bipartisan support for any issue in the u.s. is a very difficult task to come by, so clearly fairly unified view from the u.s. with regards to how to proceed here. >> so, the clock is now ticking 60 days for the u.s. to identify

individuals and companies that are working to supply services to the construction of the nord stream 2 project and once those people and companies are identified there's 30 days to unwind some of those activities. the heat is on from the u.s. side the question i want to raise, clearly a debate whether this is a sovereign issue for germany because it needs to sharpen its energy supply or nato partners and the alliance because it does further strengthen the relationship between germany and russia i wanted to ask you as an american if you think that the u.s. has lost some of its standing on the world stage and perhaps donald trump doesn't have the same fire power because of his leadership style and whether that question is a fair one? is it just split between whether you're republican or democrat at this point >> well, a couple points one, i agree on this and other issues comes to foreign policy, you have seen more bipartisanship and does suggest look post the u.s. election some sense it may not change all that

much a lot of the foreign policy objectives, they are shared. that said, you could see a difference in tactics and arguably more effective tactics. this gets to your point. imagine democratic candidate would align with european or japanese allies to put pressure on china or russia or europe, something that trump at times has difficulty doing what you would see perhaps is not a change in the objectives but more effective mean to change those ends. >> relying on back channels of communication rather than twitter? >> well, certainly may be more traditional means than we have seen under trump but also just the ability not necessarily to upset your allies to the degree that trump seems to be quite good at doing and more willing to try to achieve that the u.s. has if they are aligned between if two parties.

>> this nord stream 2 pipeline hasn't just been controversial when it comes to the u.s. versus europe but within europe there's obviously huge division among the view twashd this and even within germany a number of climate activists getting involved just broaden this out and look at europe in 2020 and the leadership there, how divided or cohesive do you imagine that the eu nations will be in 2020 now that brexit is somewhat behind us but now looking at a period of uncertainty when it comes to those trade negotiations and germany, the historical political leader of europe to a large degree facing a huge amount of internal struggle of its own. >> exactly i wouldn't anticipate things changing all that much because there are certainly different exposures, different strengths and weaknesses depending on the country and particularly with germany the two key issues it faces one on the energy side with the energy that miracle launched to reduce dependence on

nuclear and coal, that's something to be encouraged but the challenge for germany currently is that means that energy prices for corporations in germany are about fwies the level they are in the u.s. and clearly that's going to be a factor in terms of their competitiveness. that's their geopolitical interest behind their agreement with russia. you look at the weakness that you had in european exports over the last year, at least out of the eurozone, primarily out of germany, it's not been because of the trade war it's primarily because of less demand out of the uk and weaker currency germany's exposure to the uk via the trade channel is much different than say for france. those underlying factors aren't going to go away and suggest to be tension between the major players. >> i want to use this conversation to switch to impeachment. we talk about ukraine, which would be bypassed in the baltic sea, under a pipeline going from russia to germany, you have to ask whether that leaves the ukraine, one of the issues central to the impeachment process in the united states so you can see there are some

links there whether an average voters will work out those links is another factor. what do you make of the impeachment process the ability to have some impact in investors in 2020 because it hasn't in 2019 w yeah certainly if you look at how the polls have responded so far, doesn't seem to be a big driver either way in terms of more or less popularity for the president. if we want to anticipate what the implications are for the stock market and in particular for the economy, even though we get quite focussed intensity on the presidential election, it really will be what happens in congress because if you really want to change the direction of this stock market or the economy, you either need to change taxes and/or spending that can only really be done in the congress and we've had a divided congress over the last two years, by the way, that was the situation you had for the last six years of the obama presidency and very little legislation was passed. so if we continue with either a democratic or republican president but a divided congress, that suggests honestly that there isn't going to be that much change in the

trajectory and driven by what the fed does in contrast either the democrats get control of the senate or republicans regain control of the house, then you would see more significant moves. >> daniel, thank you very much for that. we are going to squeeze in a quick break. coming up on the show, protests continue in hong kong as demonstrators vow to carry on sbooechb the holiday. plus, a controversial law sparked mass demonstrations in india. what they're demanding we'll get into that next (vo) the moth without hope, struggles in the spider's web. with every attempt to free itself, it only becomes more entangled. unaware that an exhilarating escape is just within reach.

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♪ welcome back to "street signs. well, markets in europe have now been trading for just over an hour the final monday of the year of the decade for trading we're off to a fairly muted start in europe after a relatively weak handover from asia chinese markets in particular underperforming despite some positive rhetoric on the u.s./china trade front we are looking at some mild

losses, though, for european stocks the ftse 100, dax, cac a touch below the flat line. the ftse mib underperforming after a strong week last week. to put this into context, yes, we're seeing profit take a pull back but last week the stock 600, the main bench for europe benchmark up .8. a little pullback but after a strong rally. a look at the sectors to see what the breakdown looks like. mixed picture i would say and not a clear trend defenses versus cyclicals it's a mixed bag here. we have auto the first performs sector this morning down .8% tell comes basic resources, banks and utilities round out the bottom at the top, retail performing well but no massive moves in either

direction. best performer up a third and worse down .8% a bit of a pause it looks like as we head into the final days of trade in 2019 let's get into a couple stock-specific stories this morning and focus starting with lufthansa has threatened to go on strike after talks broke down on sunday. a union spokesman said industrial action can be expected, quote, any time from now and say there will be no strikes between the 24th and 26th of december the weekend's talks focussed on pay and pensions and luft hanna disputes the legal status and alleges its leadership was not properly elected luft han sha shares are trading down underperforming the broader market now shifting gears to italy, italy's main toll road operator has hit out at the italian government's decision to

provisionally approve new rules that could revoke its motor way concessions. the new law would make it easier for the government to cancel highway operator contracts and thereby cancel concessions tensions between rome and the parent company have run deep since last year's bridge collapse you can see here atlantia shares down 4%. as you saw there in the opening walls looking at the different regions italy underperforming broader europe this morning. the ftse mib underperforming the other regions. shares in the football club are trading sharply higher after it beat rival juventus 3-1 in the italian super cup. the victory in the annual meeting between the italian winners is the second win for rome's lazio

quite a strong reaction. lazio shares up 5.4%. the bank of italy says it's quite ready to account for its action on popolare di bari according to reuters the probe centers around the relationship between the central bank supervisor amid accusations of corrupting a public official in early december the italian government approved a 900 million euro package to bail out the lender suisse confirmed another case of espionage. the swiss bank blamed the chief operating officers saying he had the head of human resources followed in february and then covered it up, but it has cleared its ceo from being involved in a second spying

incident this comes after they launched an independent investigation into multiple allegations of illegal corporate surveillance including the spying of a former boss shares in credit suisse have not reacted significantly. let's talk more broadly about the banking sector and the fortunes for 2019. everybody is so bearish about the growth prospects in europe, the ability of the ecb to do more where does it leave valuations and how you see the bank's performance in 2019? >> if you look at a sector level for multiples, for many of them they're above average. the ones that have high dividends, real estate trading because investors have been looking wherever they can. in contrast, look at multiples for financial sector there, it comes down to what is a low interest rate environment and the expectations that's going to stay the same. on the one hand, perhaps they're

certainly below average in terms of valuations, question is whether they're cheap or does that reflect what's likely to be a more challenging profit outlook. >> what jumps up to me is the stunning waive of restructuring and cost cutting unveiled by some of the major banks in europe this year does that lead to the end game of better performance, at least next year or is it just a stopgap measure that the numbers are not looking great? you have to cut cost doesn't mean there's any growth materializing at any point down the track. >> i think it does reflect a realization that lower rates are here to stay the other factor not only in that we have the ecb restarting qe at one point we were talking about balance sheet runoff and qualitative tightening, that seems like a distant memory. low rates for longer the other things i think that is also coming into ceos calculations about the future outlook is that inflation does continue to be quite weak. it's hard to see that accelerating so nominal yields will also remain low

policy rates will remain low the one change that could perhaps would have a big impact on the sector is if we see other central banks moving towards zero as opposed to negative rates as you have seen in sweden that could change the outlook. it is more of an experiment to see how the country will react from the move negative to zero that's a stimlative policy as opposed to restrictive one we'll have to see how the economy reacts. >> looking back at the last decade, a pair of statistics that stood out to me, the dax and ftse mib ftse mib up just 3%. massive divergence there what do you think, is there an opportunity to play between germany and italy here >> we don't currently have an allocation between the two i guess where we have had one is actually between germany and france and partly because, again, the german outperformance had been because of the export sector and

france more protective that did work quite well last year we think about the outlook for italy, it does come back to long running concerns that you've had about the country and i think there may be unfortunately a bit of deja vu in 2020 versus 2019 brexit certainly hasn't gone away as a theme, trade has not gone away as a theme and italian political risk is not likely to have gone away as a theme if we do have els. it suggests whatever might have been a drag on italy in the past may well continue to be a factor next year. well, we are going to take a short break, but coming up on "street signs," tensions between north korea and the u.s. loom as china, japan and south korea hold a trilateral meeting. one of the products i helped develop at 3m was a more secure diaper closure. there were babies involved... and they weren't saying much.

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♪ welcome back to "street signs" i'm julianna tatelbaum. >> i'm karen cho these are your headlines >> a lackluster start at the

holiday week for stocks in asia and europe, but wall street looks set to end the decade with a bang the s&p 500 up almost 190% since 2009 >> china will cut import tariffs on a range of products from the first of january while both president trump and xi jinping say the phase one trade deal will be signed soon. but tensions run high between the u.s., germany and russia they accused washington of washington of interfering in internal affairs credit suisse has a fresh spying scandal the swiss bank confirms it had former executive board member followed after the domestic market regulator opens a probe into corporate surveillance at the lender well, european markets now

showing a bit more of a mixed picture. we were in the red across the board just a few moments ago, but now the ftse 100 and the cac crossed just a touch above the flat line, so no major moves, but certainly something to keep an eye on as the minutes unfold. clearly looks like the downward momentum that started at the beginning of the session has reversed it a little bit the dax essentially flat on the day. the ftse mib over in italy, the first performing major index in europe this morning down about half a percent and as you saw before the break, atlantia shares down 4% at the open looking at fx markets and what we are dealing with here the pound strengthening a little bit versus the dollar but still just a touch above the 130 level. a major tep down from the immediate rally we saw in the wake of the general election results hitting 135 in that immediate reaction to the news of the conservative majority, but now as we head into the final days of the year,

investors taking a little bit more of a cautious view when it comes to the pound the euro flat versus the dollar 110.80 let's look at u.s. futures last week a very strong week for wall street. we saw all three major indexes close in positive territory on friday, hitting fresh record closes the s&p 500 saw every sector gain led by energy now this morning, it looks as if we're in for another positive day on wall street according to the s&p, dow and nasdaq futures. albeit the magnitude of the gains fairly contained in the final trading week of the year karen? >> thanks, julianna. unrest in hong kong is set to continue over christmas after another weekend of violent protests which ended in chaotic clashes between demonstrators and police officers. demonstrations are planned throughout this week, including protests in five popular malls tomorrow.

and we also got some tro tests we're keeping an eye on in india. narendra modi is saying the act will benefit the marginalized. it has triggered two weeks of protests by those believe it discriminates against islam. a reporter from cnbc tv 18 and joins us now from new delhi with more >> well, this has become a major headache for the that rein dra modi government here in india. it was passed by the indian parliament, we have seeing protests across the country. there were protests in the northeast which would be impacted by this bill and also in different universities. today, political parties are asking protesters to come out on the streets and protest against the policies of the narendra government they feel this is being done to

provoke people on religious lines and done with elections in mind there are crucial elections that would happen in the year 2020 in different states and opposition is seeing that the government wants, the rules party wants to take advantage by bringing in a legislation. in the largest state in terms of population and land mass, we have seen at least 14 to 16 deaths in protests that have taken place over the last four to five days some are bullet injuries, some people have died in stam peeds as well. today the main opposition party in the country, the congress, has asked people to come out in streets. we have seen protests. the prime minister is trying to dispel misconceptions about this bill saying there is nothing religious about it, only being done to fight illegal migrants and terrorism. there's a larger worry among civil society and opposition leaders that there would be an attempt to carry out this

exercise throughout the country through a national register of citizens the prime minister today has said that there has been no talk or discussion but the fact that this has been the party's manifesto over the past five years has been a cause for concern. in the days to come, we would see the prime minister and his cabinet trying to address concerns of people across society even today we're seeing newspaper advertisements with faqs about this bill trying to dispel misconceptions. a lot of fire fighting the government would have to do. back to you. >> thank you. other news, france's emmanuel macron offered to give up his special presidential pension to protesters rallying against his reforms. they will also apply to macron, adding that the president was being, quote, consistent providing an example macron wants to replace the pension schemes with a points-based system while

raising the retirement age from 62 to 64. the uk is on course to leave the european yun on. they passed a parliamentary vote on friday by majority of 124 johnson's focus will now shift to reaching a trade agreement with the eu by the end of 2020 when the uk's transition period expires. the prime minister's bill also stops mps from extending the transition period regardless of whether the two sides strike a deal or not. fresh off of his election victory, boris johnson received an invitation to visit the white house in 2020. that's according to the sunday times. johnson and president trump have discussed the prospect of signing a bilateral trade agreement since the uk vote. potential global ipo activity fell by 20% this year due to trade tensions and political uncertainty in major financial markets, that's according to a report from a law firm baker mckenzie. the company added that to 19 diz see some of the biggest listings

ever despite concerns over a downturn partner at baker mckenzie joins us now quite fun pulling together some of these ta stisices because if you looked at the i people's exhibit no. o market, it was a mix of everything. some smaller companies, stunning performance, stunning underperformance, some going short of big capital markets what jumps out about 2019 on this ipo market? >> you're right. it's not a nuance -- it is a nuance story, not a clear story one way or the other it certainly wasn't a vintage year, as you said, ipos globally about 20% down, down to about 1250 during the year i think what jumped out was some of the negative sentiment that came out of the big consumer ipos that were pulled like wework or the host market trading performance was disappointing, thinking of uber, lyft, peleton. on the global basis, you can

pick out as you said each major market, so the u.s. remains busy and if you're an ipo investor in a number of companies like beyond meat you would have done very well. asia, china had 180 domestic ipos, incredible for one country. europe, the uk little slow, probably a bit better than was expected this time last year the middle east, fairly busy and of course dominated by the aramco ipo at the end of the year. >> there are a few variables to talk about for 2020 because typically we talk about whether the window is open or shut after the wework discussion, where we saw that pulled and evaluation became a fairly huge issue. geopolitical issues, you don't want to be wrapped up in a trade dispute, supporting one government over another, what does it mean for next year whether some of these companies

decide to go for the window or not? >> well, i think again you have to look at each of the major markets separately i think in the u.s., it will stay busy. i think a little of the froth of the valuation is coming down, too much focussed on growth at the expense of profitability in the european space, there has always been more of that focus on profitability we are seeing, forecasting reasonable growth in the second half of next year. it will be a muted start to the year i think and anecdotalty banks in the city are started modestly hire in anticipation to return to growth in the second half of next year. >> let's dive into more deal what we have seen in the uk market 27 urk based companies went ahead with their ipo plans in 2019 quite a step down from the year previous, about 56% in value terms and over 60% in volume terms. so what did companies do

instead? have they totally changed their plans if they had been planning to come to market and aborted those entirely have they delayed? have they gone other routes down the m&a path or pe path? i'm trying to get a picture of what we might expect from 2020 and beyond from these uk companies that perhaps didn't come to market because of all this brexit uncertainty in 2019. >> yeah. so all the things you mentioned are all true certainly we saw a number of companies you mentioned brexit, the obvious factor and certainly that did create a bit of a bottleneck and we will see -- we are expecting to see a number of companies delayed their ipos to come back to the market in 2020. the pipeline two or three months ago bankers were excited about the strength of the pipeline it softened a little bit but still a reasonable pipeline. at the same time, you have that very long term trend of deequitization and there is still a lot of money out there

for private m&a, private money using debt rather than equity. has a lot of structural advances in terms of tax and some of the regulation so a number of those companies, certainly the ones owned by private equity went the m&a route rather than po. >> another feature that sticks out to me when you look through the stats of 2019 and the ipo market is the fact that hong kong despite all the unrest and the months of protests maintained its leading position as the number one destination for cross border ipos. that's even excluding the alibaba listing that came through in november. i mean, how long can that persist? how long can hong kong maintain that position if things continue the way they have? >> well, the hong kong exchange has made a very deliberate effort to win work a little bit from london but primarily from new york and the regulatory reforms they have to attracting tech listings have had a big

impact so i think they are still well positioned going into the next year at the same time, the shanghai exchange and the new star market is becoming a real competitor for nasdaq, asia tech companies. so i think with the political background in hong kong at the moment it presents its challenges but there still are dealing comes and will be deals next year. >> talk about the nasdaq and with the hong kong exchange, why do you think europe continues to lose out on the ipo market >> well, the effective brexit was interesting in the sense that in many ways from an ipo perspective, it shouldn't have the impact it did have. >> was it just brexit or the environment or the slow growth that the lack of movement toward positive territory on interest rates? >> that as well. i think the changing business sentiment in germany had an underrated impact.

angela merkel has been chancellor since 2005 and her stint is coming to an end quite soon against the backdrop of a slowing german economy, that has depressed some of the animal spirits in western europe. having said that, italy remains pretty busy during the year. so again it gets broken down by individual markets. >> does it come down to a lack of confidence that the performance will be here in european markets we were just talking about how surprised we have been the european markets managed to keep pace with the u.s. counterparts which is typically not the case. if you're a company coming to market, it's smart to get the pop on the performance is that what it's been about many investors just simply don't think that europe is going to stack up for those wanting -- >> i'm not sure they see it that way when they're choosing where to list. certainly there are a number of european companies looked across the atlantic because they have been tending to get better multiples in terms of their

valuations, but i would think generally looking to come to a market, you're looking to come for the long term and the shorter term movements in the markets aren't going to be the primary driver for your decision making. >> nick, i want to circle back to where karen initially went around tech and the megaipos we have seen come through this year in the wake of the poor performance we have seen in uber and lyft and other mega-tech companies, it certainly cast a lot of attention on the unprofitable nature of these unicorns come to market. there seems to be a sense of a cloud now hanging over the tech industry what that has done to investor sentiment and the exit routes that companies are debating when it comes to what their next move is has this really cast a shadow on the market >> i think that's been overstated to be honest. certainly there is more of a focus on profitability, but

particularly u.s. investors aren't that scared about that it will take a longer time to get there. they remember facebook, amazon the share price went down and look where they are now. a lot of big companies still in the pipeline, something like 400 unicorns supposedly out there. and so i'm not sure it's had that big of an impact. there will be a lot of eyes watching airbnb next year which will be in a sense the uber of 2020. >> one of the top three health companies and beyond meat still up over 200% if you're watching out for the best ipos of 2019. nick, thank you very much for joining us nick o'donnell with his report on ipos. we have interesting comments crossing the wires for those following the developments around the jamal khashoggi who was killed these comments coming through on the saudis saudi arabia's public prosecutor

said that five people have been sentenced to death and three more to jail terms totally 24 years in the case of the killing of the saudi journalist jamal khashoggi in istanbul back in october last year. also, the former high profile royal adviser has been investigated and not charged, former deputy chief also has been released. fairly significant update those following the case of freedom of speech and what has transpired over this affair. coming up on the show, impeachment is at an impasse what's next for president trump and the u.s. presidency. here, it all starts with a simple...

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♪ president trump heads into the holidays in a state of limbo over his trial impeachment proceedings are effectively at a stalemate as a newly released government email revealed the u.s. leaders sought to halt aid to ukraine just 91 minutes after

the zelensky call. house democrats refused to hand over articles of impeachment after republicans denied the are democrat's request to call witnesses. decades gains for u.s. stocks, the s&p 500 is up nearly 190% so outperforming international markets. the s&p 500 companies have returned nearly 13 trillion dollars to shareholders. so a very strong compelli inling component as to why investors put their none s&p 500 stocks. the dow posted strong gains over the decade up about 170%, so not quite matching the s&p 500 but still a very strong period for the dow. let's take a look at the tech heavy nasdaq interesting conversation before the break there with baker mckenzie on the ipo market on

2019 those tech giants, unicorns coming to market having a roller coaster debut but for the tech heavy nasdaq overall it's been a strong run over the last decade, in particular over the last year it has been a very strong, strong year. but for the ten-year period, the nasdaq up more than 290% let's bring in our next guest jason senior portfolio manager at the roosevelt investment group joining us now on the phone jason, if i could get your take. looking at the last decade, it's been a very strong run for u.s. equities what are you thinking for the next year as we head toward the next decade for u.s. stocks? >> well, it is sobering to think about how far we've come over the last ten years it's been a very long bull market we started from a very low point where stocks were very cheap and valuations have moved higher along with economic growth and earnings growth. it's been a boon for investors we actually think that can continue into 2020

so we see right now, three pillars that are driving the recent market strength the first is the u.s. consumer the consumer continues to spend and that is helping support the economy. the second is accommodative monetary policy and we heard from fed chair powell that his remarks lead us to think that will continue into 2020. then thirdly, the easing of trade tensions, the u.s. and china are inching closer to a full on written agreement supporting their phase 1 deal and we think that type of news together with things like ratifying the u.s. can also create the environment for stock prices to continue to advance. >> jason what do we look out for? do we just track those major indexes again or look for some rotation it's been suggested there's not much of a catchup trade by some of the small cap stocks that lagged what do you look for in 2020 >> it comes down to what kind of environment are you expecting. so from an economic growth

perspective it's been slow and steady through most of this recovery and we do expect that to continue. housing perhaps could support the economy further in 2020 given that mortgage rates have come down and home builder confidence are strong. we're hopeful there, but even just a little pickup in economic growth, inflation is still low and so we still think that the kind of companies you want to own are quality companies that have secular growth tail wind. i wouldn't necessarily look for the catch up trade to necessarily work next year. >> jason, any interest in trade to your mind around the election coming up in 2020? >> so, one thing that we definitely expect in 2020 is that the u.s. election will create volatility in u.s. markets. so, there is a point typically in any election year where investors believe that one candidate is ahead and then the other one sort of takes the lead that happened sort of no matter

any kind of close election like the one we're expecting next year as we enter the year, it feels so us like really, you know, the markets have been strong and sort of the policies that have enabled that on the trump administration has put out, things like cutting taxes and deregulation, the idea that nose might go away or change in some way doesn't seem to be priced into markets yet so if that were to happen, great volatilit volatility that's one thing we're looking out for as the year progresses. >> thank you for joining us today jason benowitz that's all for today's show. julianna and i will be back tomorrow for the last show before christmas >> very exciting >> should we be festive tomorrow, do you think >> yes un gd me. >> see you then. "worldwide exchange" coming your way next

♪ it is 5:00 a.m. at cnbc global headquarters and here is your five at 5 decking the halls. investors preparing for the annual santa claus rally as stocks look to set and make new all-time highs close to a deal. president trump signaling a breakthrough in u.s./china trade talks as that country looks to boost imports even further could the force be waning? numbers from disney's latest star wars opening weekend coming in a little cooler than some had hoped. discount danger. lawmakers calling for an investigation into a major retail