n of "dateline." i'm natalie morales. thanks for watching. [theme music] special of "street signs." >> these are your headlines. >> a stocking stuffer for investors. the dow jumps with wall street posed to ride a santa rally into christmas. boeing ousts ceo mulenberg a week after halting the production of the 737 jet.

>> a lump of coal for the german car dealer as they are under investigation with the u.s. trade commission over u.s. sales reporting. prime minister says the gas pipeline will be done in a couple of months saying there is nothing catastrophic about u.s. sanctions on the project. >> thank you for joining us, i'm going to take you to some live pictures of the japanese prime minister who is holding a trilateral meeting keeping the momentum around the

talks in north korea there has been recent days and weeks. effectively these three countries now will try to deescalate and strengthen their trilateral cooperation to a big corporate story today, boeing has replaced its ceo after he failed to contain the crisis at the plane maker. forced to halt production. the company struggled to make safety standards following two tragic crashes they said a leadership chang was necessary as an appointed board member david calhoun as the new ceo. he will begin on 13th of

january. >> sitting down with mullenberg and asked him about the pressure to step down >> has there ever been a day when you are thinking, i'm nt it working? it is better for the company if i leave? >> i've thought about it to be frank, that's not what in my character i don't see running away from a challenge as resigning being the right solution >> offering the board sup poirt over the failures. >> denis has done everything right from the beginning remember, denis didn't create this problem from the beginning, he knew mcas should and could be done better and led a program to rewrite and

alleviate all of those conditions that ultimately beset two crews and all of those victims. >> creating the max fleet to successfully navigate this period >> he is going to experience one of the most difficult situations any ceo i know has lived through. if he can get us through here to the end point and that being a max flying in service and accepted by the flying public and begins to restore our brand, i might argue he's the best to be running the company >> looking at how the aerospace giant looks to regain the trust of travelers and regulators.

>> next year, boeing 737 max will have three critical moments. expect certificate wags earion n 2020 saying he won't clear the max until he flies it himself. most believe it will be recertificated in the first couple of months next year once that happens, expect airlines to make a big push to convince travelers that the max is safe. southwest, american have parked their max. they know passengers will hesitate or refuse to board representatives will be on those flights to assure customers those planes are good to go. the assembly line will be down at the start of the year but will go to building 42 a month

by midyear what about the planes built but not delivered? they will eventually take off and go to the airlines that ordered them but it will take all of 2020 and beyond for boeing to clear the inventory of all of the max airplanes. >> the main european competitor airbus has wrapped up another sale spirit has planned to buy 100 new airplanes including a mix of different models from the a 320 neofamily with options to get nearly 50 more airbus shares essentially flat on the morning >> we are closely monitoring a speak that prime minister abe is giving in china. he has been holding a meeting with leaders of south korea and

china aimed at further denuke all-starizati -- denuclearization both have been trying to patch up ties after south korea's supreme court ordered japanese firms to compensate some south koreans forced to work from 1910 to 45 colonial rule. they've had tensions and we have been seeing some movement on that front let's listen in. >> translator: precisely there are issues and challenges but continuing the exchanges, we should live up to the expectations that kind of a mature japan/china relationship is what i wish to establish.

tomorrow, i shall visit the royal heritage site. i wish to discuss our issues including further economic relations in changes by taking our time as the new year starts finally after half a century with the o olympics the games in 2018 and then beijing in 2022 by japan and china hosting in a series that the region will attract an unprecedented level from across the world leveraging these opportunities, sending out a powerful message for world peace and stability, i hope the games will be such opportunities there is only a week left until the end of the year.

this year, we had a historic succession of the imperial thrown after 200 years this year has given us hope for our future and has become a milestone as the start of the new era. may i wish that the new year next year, the second year will be a wonderful year for all of you. thank you for your attention >> abe as he looks to restore relations with south korea and china as these three countries try to battle with north korea the u.s. securities and exchange reportedly suspects bmw of miss reporting sales figures. reports that the carmaker has artificially boosted numbers by

registered cars as loaners dealers would sell them off again soon after the practice known as punching bmw is cooperating and has refused to disclose details of the probe. tesla ce o's dreams may have just come true after shares reached an all-time high of $422 the stock closed near $419 bringing the market cap to march than $75 billion the move comes more than a year after musk tweeted he had, quote, funding secured to take the company private at $420 being the price tag sparking a scandal and probe. retailers struggled with closing stores and consumers migrating online

first the tariff divide. the schedule continues to evolve, brands and retailers aren't waiting to adapt. some will do so easy your than others target, walmart and best buy use scale and influence to keep prices low insisting the brands they buy take on whatever higher cost. it will hurt smaller, less powerful players >> second, old is new again as the resale market grows. watch for retarls to experiment selling merchandize second hand. focusing on more sustainable merchandise giving it second life new ceos and strategies. many will have new ceos settle

in including bed bath&beyond, underarmor and gap looking to see if they shift strategies in new directions and then decide if they are willing to give them a chance to make change there's been a huge amount of turnover that is very high on properties with the mass market type of marketing. one thing is pop up shops and charity stores talk us through the transition in the uk. >> sure, we've seen thousands of store closings we'll see almost 10,000 in the

u.s. that continues to be huge pressure in the uk, it is a little different. not only are we seeing general store closings but this cva process. the company voluntary arrangement where retailers can say, hey, we want 70% reduction of rent which pressures the mall, the neighbors then say, hey, we want this deal you've got that pressure, the business rerating we've had for taxes for the retailer there is all this pressure coming at them there is just very little to offset it as the customer continues to transition on line. >> how does this trends unfold in 2020? >> more store closing. we are just getting started. in the uk, the store closing started much later in the u.s.

going forward, we see continued closings even if you look in, in germany, that's probably the next market and incredibly over store the where you have different retailers that are just starting to close down. >> karen and i were discussing earlier, the sales that have been coming through. it feels that the sales have been pretty aggressive this year and started earlier than in past years. how has the holiday season unfolded have retailers been under more pressure than anticipated. it is interesting over the past 5 to 10 years, you've seen the americanization come over here it is all about black friday, just like the u.s., that seems to creep earlier and earlier

you can get these amazing bargains 10 days, two weeks before black friday, when is just a terrible decision for retailers but if the neighbors do it, you have to do it definitely the high street is feeling the pressure and that is in direct response to it >> part of boris johnson's plan is to reduce business rates in an effort to revive the uk high street first question, do you think he's going to deliver on these plans and how effective will this change be if he does. >> i would hope so because certainly the high street here the most expensive real estate it went from $10 million to $17. that is crazy. that is a crazy jump if you think about it, the on line players, most warehouses are out of town. they actually received a

reduction in their rates so it is not only that the consumer is transitioning on line the players seem to be getting a tax break while the brick and mortar guys are getting just creamed by these business rates. >> there have been a couple of key out performers on the high street you flagged up the names to us target 94% higher year to date. nike 34% lululemon, 87% montclair, up 84%. what are these companies doing right? >> so target was our top pick. what i saw early on is you went in and looked at their store renovations. it is simply amazing you want to spend hours in a target they walked around and looked at victoria secret, the work out market and said, who is doing the

categories wrong we are going to do it better responding to what the customer wants with more sizing, inclus i havity, pick up in store, delivery they met the customer and have an amazing private label product that is an incredible value for what it is >> you are making me home sick >> the first thing i do when i go home is go to target and walk around and say this is everything i need. they've got cvs, health care, amazing private label kids they've even been doing like a sephora concept. they just understand where the market is going and how the consumer wants to shop and they are delivering it. >> it is stretching into a department store model we'll pick that conversation up in a bit let's take a look at european markets and see where

things stand christmas eve looking at a fairly mixed picture. ftse 100 and the cac are slightly positive. in spain, a slightly more negative picture no massive moves in either direction. low volatility and low volume. >> coming up, santa skis but will the slopes be smooth for investors next year? we discuss reindeer and rallies after the break. thanks to you, st. jude children's research hospital is changing how the world treats, and defeats, childhood cancer. we freely share our research with doctors around the world and no family pays st. jude for anything... because all a family should worry about, is helping their child live. donate now at stjude.org

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positive but cautious sums up the 2020 economic outlook and explained why gradual improvement could be in the works next year. >> it has been a reluctant volume but there is further to go over the weekend, two bits of positive news. the uk election means there is now brexit clarity secondly, the u.s./china trade

agreement will be positive for exporters. there were already positives when you look at the economy, we have been noticing that the index has been moving into positive territory that is usually and indicator of a strong market. secondly, we've had signs and will pick up next year we think it will feed through to approaching 10%. >> and a jump from this year also. >> we can't ignore the fact that we got more manufacturing through weakening even further it has been a key beneficiary there. is it fair to say we are seeing signs of stablization or a turning point when you are getting numbers like this

continue to come through >> yes we think it is fair. we look at the consumer. they've continued to spend retail has been over 5% the last three months we look at the manufacturing side which has been in recession the last two years those signs are about to be rebuilt. we get continued stablization and we are likely to get a cap x pick up. but gradual improvement supported by ongoing ecb monitorization and an increase on fiscal spending >> according to research video game console shipments are expected to drop this year this christmas, there might not be as many video game consoles under the tree.

shipments are expected to total 37.5 million a 13% drop. sony and microsoft fans are putting off purchases because they know new ones are on the way. both companies say their next generation con suls will be available next year. they'll be faster with better graphics inspecti expecting sony to sell more. we can't know for sure until the companies unveil price points and gains. new consoles arrive at an interesting time for the industry mobil gaining continues to grow strongly there has been a resurgence of pc gaming and a rise in services too like google stadium which for $10 a month allows you to stream high-quality games.

no pricey console needed a potential threat for the console industry but one the companies are well aware of. microsoft is launching its own game streaming technology next year but hasn't detailed price or exact launch date reporting from san francisco let's pick up our conversation staying around retail the president of sw retail advisors from disrupting consoles, we are seeing digitals disrupt. we thought nike was a fascinating one this year because they launched s subscription for kid shoes we've thought about what will kill amazon over the next couple of years maybe it is companies like nike changing how it engages with customers. >> you've seen a lot of the

companies wave the white flag and say, we just give up nike has gone the other direction saying, no, we are only going to sell on differ enterated retail buckets and amazon is not one of those you've seen them pull back because they want to control their message and retail pricing. we've seen that over the last couple of years with brands saying you are not a good partner, we are going to go direct and control our pricing when you engain directly with the brand. but where it all comes delivering down where you don't have the amazon experience amazon drivers have the ability to get in the front door and your item is there the next day. other companies are delayed, or

we don't have your information correct, it will be delays how do retailers close that gap with amazon? >> i think target and walmart are doing the same-day pick up book it on line and come get it. more than half of the digital sales a the target are being transacted that way or they are doing same-day through a company like shipt also they are using partners in some cases, even amazon is doing this they are partnering with kohl's so you can bring in your return there. there are different points where you can be effective and reduce costs so you don't have to deliver it to their home >> stacey with us, president of sw advisors. >> coming up, how the russian government is responding after the u.s. imposed sanctions on

one of its pipelines the prime minister's comment after the break.

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welcome back to "street signs. >> these are your headlines. >> a stocking stuffer for investors to another record high with wall street posed to rally into christmas but urp slovenian markets fail to ride >> and boeing let's go of mulenburg with david calhoun set to take the top job in january >> the german carmaker confirms it is under investigation by the security and exchanges commission reportedly over the u.s. sales reporting and russian defiance russian prime minister medvedev vows the gas pipe lynn will be done saying there is nothing catastrophic about u.s. sanctions on the project

let's take a look at where the markets stand as we enter the final days of trade. the euro touches the dollar around 1.1080. sterling, another one worth taking a look at as we close out the year it has a drop further this morning aroundfive basis point around the 1.30 mark we were up around 1.35 after the election results now we have some clarity on at least the next month, traders have taken some profits as we look ahead to the next 12 months and what negotiations will look like between the uk and the eu and the uk and the u.s >> looking at the future as we enter the rally period

according to those implied futures there. the s&p, the dow and nasdaq looking to a positive start today of course in stark contrast where we stood one year ago when the dow lost 350 points on christmas eve 2018. >> after the u.s. house voted to impeach president trump. snapchat man ori senate minority leader are at odds saying they are at an impasse until pelosi sends the papers we have the latest on the stand-off. >> reporter: key leaders dig in today. >> we can't take up a matter we don't have >> republican leader waiting on house speaker to send him those

two articles of impeachment so the senate trial can begin she insists she won't take the next step until she is sure what sort of trial they will conduct. the president responding she is trying to take over the senate and crying chuck is trying to take over the trial. no way but democrats say they just want what is fair pushing not just for witnesses in a trial like acting chief of staff and former national security advisor but documents too about the president's request for investigations in ukraine that could have helped him politically even as military aid to the country was on hold >> we say to president trump, release the e-mails, let your aids testify we say to leader mcconnell, a fair trial with facts. only the facts the queen will make a plea for harmony and reconciliation

in her christmas speech as the uk looks to hear political divisions. the uk is posed to leave the eu but that appears to have reawakened the movement for scottish independence. the queen's husband prince fi philip was seen leaving the hospital hopes of an end to the brexit saga have risen with the general election markets are still pricing in some uncertainty including us into the head winds we cannot overlook >> one of the risks we can't overlook is prices in the uk already academics are on strike because of pensions. one of the issues is interest rates are so low, people's pensions will be much, much

lower. at the moment, people will receive about a dwaurter of their earnings in their pensions around 40% of the population of the uk is above the age of 50. so this is an issue. many of them voted for the conservative party and said there will be high expectations soming would be done this is the challenge for the bank of england to keep rates low, you create pension problems but you help investors so which do you optimize for >> nothing catastrophic is how the russian government has called the newest sanctions. prime minister medvedev said the gas pipeline will be finished in a couple of months samuel greene is the director of the institute. let me ask you about the sanctions. are they a little late to the party on the restrictions on the

build outof t buildout of the pipeline >> well they are, i really think when it comes to this case, russia's heart really isn't it it it looks more like it is aimed at getting more american on the market than it is to trying to disrupt any of the russian influence. >> you've highlighted a difficult position in terms of maintaining relations with russia and key allies including the united states. >> that is true. it has painted itself into a corner it does not want to make the relationship with the u.s. any further. at the same time, it really sees the importance of having a long-term positive relationship with russia. that means keeping channels and

pipelines open so it sees some interest in having this pipeline built in maintaining this relationship. in order to be able to achieve other things down the road whether that is a broader security economic relationship with europe or resolving issues with ukraine >> you say this is really more about increasing leverage from berlin and brussels than about punishing moscow we've heard now that they are not going to stand by and just watch the sanctions unfold without taking actions what are the chances of unintended consequences for russia >> russia has put itself in a position to continue to pursue the project and has a strong physical position and has the

wherewithal to go ahead with the key projects they will be able to continue with this. the question really is what price is germany willing to pay? the danger in washington is driving a greater wedge between itself and european allies one thing that makes things work is the investment around the world runs through the dollar one way or another that creates the probabilities for the german government and thus undermining the american power in the long run. >> one alliance has gotten a lot

of focus how does this stack up. is it fair to say the russia or key relationship far out weighs any partnership we see between russia and china >> it does china obviously matters. >> you would want to be trading robustly china doesn't want to be interdependent the geology and geography matter oil and gas, particularly the gas that goes from russia to europe cannot be moved around and sent to china.

the idea that this is something of a trade off ask a bit of a falsehood. >> this pipeline project was set for completion by the end of 2020, which puts us right in the middle of a u.s. election cycle. we've seen the trade deal that is positive for trump at the moment perhaps this is just part of that rhetoric at this point >> it is entirely possible anyone who is trying to figure out how trump will run his campaign is a fool he works on being unpredictable. in general we look at how the administration has treated these companies in the past few years. they have spent much more time being angry at china and europe

in general than being angry at russia i would probably expect that to continue >> appreciate the time on christmas eve today. thank you for joining us samuel greene, reader of russian politics at the king's politics london >> the question is what do emerging markets have in 2020. breaking down what investors are getting wrong. >> active management is having a come back. global investors still treat emerging markets that block has changed substantially. 70% now, so brazil, you don't notice it. it is quite small. it was very good partly from having the credit cycle. it is the consumer supported by weak currency it has done very well. we did have a short position on

brazil in previous years we took that off because the recovery was breaking through. making sure you've got the position taking active positions. especially from that situation >> the trade war dominated much of 2019 and set to continue in 2020 an expert weighs in on what you should expect.

welcome back to "street signs. we've been discussing various asset classes and their performance. let's turn our attention to bond markets. the u.s. in particular we are currently trading just under the 2% mark as 1.92% down from 3.24% january 2010 a major step lower of course for 2019, bringing it close tore home. a huge driver for markets was

the pivot back in january turning from the end of 2018 cutting three times over the course of the year that has driven the yield lower turning to that 1.92% mark looking at commodity pushing on to brent. it has been a volatile period for crude. the major step down that came in 2014 this year, we've seen brent lose about 20%. just about 18% to be expect. now trading around $66 a barrel. looking at gold. we've seen a little mixed picture for gold we have seen gold benefit from some of that safe haven command come through particularly for the tensions between u.s. and china gold proved to be a beneficiary for that putting it all together, the

gains we have seen in gold, modest compared to what we have seen in stocks gold is up around 35% over the 10-year period that compares to equities in the u.s. which are up nearly 200%. gold, an underperformer compared to stocks. >> few stories have carried on about the u.s./china trade war a full resolution is far off here is what to expect for the trade war in 2020. >> the trump administration rocked the trade boat in 2019 with unpredictable tariffs and short-lived truces in 2020, trade will move back to the status quo fire works will fade as u.s. and china sign off on a deal in

january. if china engages on and enforces this first deal, expect tariffs to be rolled back slowly farm finances will be in focus american farmers will size up the pain of a two-year trade war and new business with china, mexico and japan the agriculture secretary says more financial aid will be warranted if the ag economy doesn't rebound quickly. third, europe will be back in the crosshairs he'll hone in on the new target, the eu the president's speeches will be testing ground for new materials on auto tariffs. he'll pocket those fights until after november a phase one trade deal may be on the horizon. hour believing the long-term effect for superpower's competition could loom over

markets for a time to come >> our concern is that what we are looking at here is long-term contest for primacy in the world of economy and geopolitics down the road as a result of that contest, you have to assume that the trouble will resume after. >> i don't wish to minimize the question but you clearly raise it as question quest for superpowers in the world who will end up winning that >> i'm not sure who is going to win it and i'm not sure winning is something that can be achieved they are both major countries. in the absence of some war or conquest, they will both continue to be massive economies for let's say 10 years for practical purposes, no one is going to win.

there will just be this competition. >> does that mean we will see a splintering. we know the u.s. is very concerned about china's push into 5 g and the national security through the u.s. imposes. do you think we'll continue to see this when it comes to technology and the separation between china and the u.s. >> i wouldn't be at all surprised. yes, we think the world is going to deinvolvolve to something mo like regional blocks of course that does contain the possibility you mention which is a splinter net a clever phrase.

it will be found sub opt mall. >> joining us now on the phone thank you very much. looking through your latest commentary the key for you seems to be worker productivity and in terms of u.s. productivity compared to the rest of the world. what do you think 2020 has in store? is this going to enable continued success of the u.s. markets. >> hey, guys it is great to be with you and happy holidays to you. i think productivity growth is a big driver but as part of the trade deal with china the real question is will we see

improvements beyond? it is safe to say we are discounting a phase one deal at the moment will we see aim provement on that phase one deal trying to impact the larger political question it is difficult to look at the incentive involved the question on the u.s. side is, is president trump positive that this will get him the result he needs to win reelection the think the answer is far from clear. >> i would say we are more optimistic probably than most that we'll get a benefit to what we have seen already >> what does this mean for 2020? where should investors be looking to put their money

>> generally speaking, i think the market calls -- it is tough to make short-term calls there is so much randomness that we can't predict it is good to look on both sides of the argument. on both hands, stock looks expensive. coming into 2019, we have experienced a big downward adjustment the s&p coming into this year was something that got to sub 16, if i remember. it makes for an easier investment environment if we look at the results, earnings have been flattish. just under 30% has been driven by multiple expansion. a lot of people say we need earnings growth to continue, for the market to continue to do well i don't know if i necessarily believe that

i understand that argument in extremely low interest rates looking at 11 or 12 trillion and negative yield assets and what is the right multiple for stocks a lot of people that are more bearish are looking at it and say we will revert back to the 16, 17 times multiple of the s&p. i don't know if that's right >> let's switch focus to wealth. you've been looking at the performance this year. 29% higher we have seen a change at the helm huge stock options too how do you way the chances of alphabet being a winner?

>> we are very bullish on alphabet i would say this it is not enough to just look at alphabet and say, it is a digital ad power house all of those are true. i don't think it is the extent of analysis required looking at how the sausage is made, so to speak. for google, it is the ability to generate extremely highly focused ads that rely on ad dollars spent. >> thank you, jeff ceo and founder. that is all from "street signs" today. merry christmas and happy new year to you. cascade platinum. it's specially-designed with the soaking, scrubbing and rinsing built right in. cascade platinum's unique actionpacs dissolve quickly...

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it is 5:00 at cnbc global headquarters your five at 5:00. investors hoping for another santa rally as stocks push further into record territory. fall out over at boeing. reacting to a change at the top of the defense giant under investigation, one of europe's top automakers under new scrutiny sacrificing safety for speed. a new investigat