stuart: it has been a remarkable day. the news of the arrest of a chinese high level technology company. the suggestion that maybe the economy is really slowing down. it is all hurting the market, down 600 as we speak. time's up for me. david asman in for neil. >> business did i say indeed. welcome to coast to coast. i'm david asman in for neil cavuto if huawei is the tip of the iceberg is there a lot more surfacing? >> david, good to see you. when you look deep into this, there is a battle going on here. i think the battle is what's

really happening with the consumer? what is the real state of consumer health, okay? you can look at numbers. housing market slowing down. some sales numbers weren't as great as they should have been. and that battle is versus what wall street expects this consumer to be in six months. and i think with all this headline risk, you know, liz in the last show mentioned, the algorithms and that sort of thing. that is what we're dealing with right now, david, is this battle and theory, algorithmic pushing, what is to make of all this. david real quick here, i think that, the housing data, you know which a lot of people are sort of going back to, that ties into interest rates, i actually have a contrarian view here. i think the housing slowdown we're seeing equal as lot more houses on the market and with oil being down, fuel prices being low, these consumers can now go out, they have a better choice buying a house, better

apt to get a house they want. i don't think they're doing that bad. david: you bring up a very interesting point, whether or not wall street and main street are separated at this point. liz talked about that, all the algorithmic trading, may be a part, if not most of what is going on today in the market. but then you have the economy. there are questions, about whether the economy is as down right now as the market feels down right now? what do you think? >> yeah, i think emotionally wall street has overstepped what reality is, emotionally, okay? and i think from a statistical perspective, the market correction that we're seeing, again i think it will actually continue into the end of the year. i think it is perfectly normal, david. you, me, every other expert just about is talking the past eight months, you know, this market has been really overly bullish, really overly confident, really

overly complacent. we're seeing seeing that all coo fruition, to a head. when the average investor sees this thing, here it comes, i have to sell into it. david: it coincides with certain things happening. talked about the yield curves and all that. don't want to get in the weeds there. oil coming down to levels that some people indicates a worldwide economic slow down. it is not just computer trades going on wall street? >> you can't blame it on, i agree, david. let me be clear on that. you know, i don't think this is just an motional thing but it is a reaction to the data you just talked about. i have a opinion, oil up 70 to0, i think oil is 50, and at 50 i think this is more fair value. i wrote a long thesis on this i think at the end of the day, david, what investors need to do, take a long hard look, once

we look at it, look back at retail data, look at health of consumer and housing market, what will we look like, three, four, five, six months from now? is two dollars gasoline a bad thing or a good thing for us here in america? there will be companies out there that have national, international exposure may be falling but for the company you're looking at, is $2 oil, is better housing prices are those good things for the company to get -- david: at the very least it keeps inflation down and that's good also because the fed was worried about inflation. >> that's right. david: which is why they were talking about pushing up rates. so it kind of stems their move to raise rates which is good for the economy. but finally, i just got to ask, a lot of people coming up to me, maybe now the time is to take my money out of the stock market? i have 1 1/2 year bounce, two year bounce since the election, take money out, put it in short-term bonds, make

guaranteed interest of 2% in two years, why don't i do that? is that a smart strategy right now? >> if you're a trader, more short term, you're active that is something you could do until the first of the year or until after that, but to be honest, dived, i would be allocating a little bit on these really deep dips. i'm talking nibbling, not jumping all in. i think what you mentioned is a smart strategy. if you're more than five years out, that is not the strategy you should be doing, you should be dying more. if you're exiting soon, retirement is coming up soon, that might be the play. everybody saying keep calm here. carry on as they say. we've been through this before. nothing to be completely afraid of yet. david: i think you're right. i think elizabeth macdonald was spot on. great to see you, jared. thank you very much. china demanding the release of huawei's cfo. there is a picture of her.

to deirdre bolton with the very latest on china's response. deirdre? >> the u.s. is clearly upping the ante where canadians arrested meng wanzhou. huawei technologies is at center of this u.s. china rivalry at least this summer. the u.s. barred huawei equipment from u.s. networks, seeing potential backdoor to espionage. the trump administration gone one step further. it is ramping up efforts to get american allies to ditch huawei products. huawei makes nextgen networks, 5g networks, that is where everything is going in device. we put in a call to huawei for a statement. one chinese think tank member is this. the u.s. government's measures are clear to crack down on china's leading enterprises citing ambiguous political

reasons in order to effectively suppress the surge of china's competitiveness. so this really just upped the ante. most experts are saying listen the tensions between the u.s. and china are going higher versus lower. they will get worse before they get better. david, back to you. david: deirdre, thank you for setting that up for us. what does the arrest mean? vision four funds vice president, heather zumarriaga. great to see you. there is a reason i think the market may be overreacting to this news. december 1st, that was the day that president trump sat down with president xi of china argentina, had dinner. that's when this woman was arrested. almost a week ago. but, it isn't until today that the chinese start talking abow it. the days since the arrest of this woman, they have been throwing out olive branches to the u.s., looks like we have a trade deal, et cetera.

they must have known this woman was arrested when it happened. that is how good their intel is. so why throw out all the olive branches if they have an intention of breaking away from trade deals? >> well, two reasons. either they're not being honest, as peter navarro would say, the chinese can't be trusted, they're playing a game of tap dance, of economic dialogue as he liked to put it. or they can be trusted. this has just brought in the public's attention recently today, the market's attention being closed yesterday, off 800 points on the dow, down on tuesday. and retail investors don't like this news because it does escalate trade tensions between china and the u.s. but you're right, you have to remember, that there was some type of a trade truce reached on that, at that dinner of december 1st, at the g20. david: it was at that dinner, or not at that dinner, but at the same time more or less within a 24 hour period when this woman was arrested. so they have had a chance to

complain. they could have complained before it was made public last night. and they didn't. i'm just thinking if they really plan to use this as an issue to break off trade, they would have done it by now? >> i agree with you. they would have done it by now. this is not the first time this happened. president obama arrested five chinese military officials for economic or cyber espionage. david: right. >> so presidents in the past, this has been going on for decades in terms of chinese spying on the world. >> it has, to sort of countermy argument for a second. this is the daughter of the man who founded the company, huawei and huawei is a huge, megacompany. for those who don't know, it sells more cell phones than apple does. so i mean -- >> second largest provider of smartphones in the world, maker of smartphones. david: china, this is not a company that china is just going to throw away for the sake of a good trade deal. they will stick with the

strongest telecom company they had, no question about it. the question when the arrest of this one woman, as important as she is, the daughter of the founder of the company, whether that will kill huawei? i don't think it will. >> yeah, or will that kill any trade progress we've made with china right now and i don't think it will. david: no. >> president trump said there is some sort of trade truce reached. he called himself a tariff man but the fact is algorithms do kick in. we don't like to cite that. think of this as a trade trigger and computer programs such as inverted yield curve sell, or when stocks drop below 200-day moving averages, all the computer programs that hedge funds have, sell stocks. that is why you get another down over 600 points down day on the backs of an 800 point decline. we certainly want chinese trade tensions to be resolved, worked out, and this doesn't help but i

don't think it is responsible for this big of a decline on the market. david: no but on the other hand huawei is the tip of the spear of the chinese question about espionage. there are a lot more details. president trump brought out 140 points at the meeting with president xi. >> 142. david: the claim is the president went over every single one, i don't know how he could do that in couple hours but the bottom line huawei is only part of it. there are a lot of other institutions caught in the web as we look into this issue? >> you're right, zte as you remember was temporarily banned from doing business in the u.s. because they were selling some of u.s. technology to iran and north korea. david: right. >> so similar type of violation that huawei's cfo was arrested for in terms of violating iran sanctions. i don't think that is the real reason. i think the real reason is security and cyber espionage. david: they're giving me a wrap, but i have to ask one more question. do you think it happened the day president trump met with president xi, do you think this was an accident on our part?

the charges placed against this woman, dealing with iran another company, a subcompany of huawei, that dates back to 2007. they could have arrested her anytime in the past couple years. they chose the day trump was meeting with xi. was that an accident? >> well, it is fun to speculate but look, they're enforcing the law. she was arrested in canada. i don't think it was correlated to the g20 summit and okay straighted by president trump's trade team. maybe we'll never find out. we'll never know. david: reminds me of the dinner where trump had with xi he announced he was bombing syria over a beautiful chocolate cake. >> chocolate cake with syria. david: great to see you. thanks for being here. >> thanks, david. david: we talked about it. what will narrowing of yield curve mean for the economy? i cover the mark set selloff on "bulls & bears" 5:00 p.m. eastern. you want to hear what the gang has to say about all this as well.

take prilosec otc and take control of heartburn. so you don't have to stash antacids here... here... or here. kick your antacid habit with prilosec otc. one pill a day, 24 hours, zero heartburn.

comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?"

"all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. yeah, i've had some prettyeer. prestigious jobs over the years. news producer, executive transport manager, and a beverage distribution supervisor. now i'm a director at a security software firm. wow, you've been at it a long time. thing is, i like working. what if my retirement plan is i don't want to retire? then let's not create a retirement plan. let's create a plan for what's next. i like that. get a plan that's right for you. td ameritrade. ♪ david: treasury yields are sliding today as recent curve inversion on the three and five-year yields has investors looking for more signs of a slowdown. to charlie gasparino now in d.c. i hope we haven't lost audience based on what i said about the yield curve. it is tough to think -- but you

pointed out something a couple days ago before "the wall street journal" had the story, it is way which yields are changing a concern for economist. >> i hate to be a professor of economics, but i took a lot of it at the university of missouri. the way yield curves are like this, right? more yield at the end, those are long bond, get paid for risk and shorter here. so it flattens, so yields goings down, those are interest rates. keep this in mind. interest rate goss down when bond prices go up. when people are buying bond prices on long end? they are worried about a global slowdown and that is why this is a problem. if you're buying treasurys on three, five, 10, 30, going on here, particularly the three and five today. you are worried about, it's a flight to quality. you're worried about stocks. worried about slow down in global economies. putting in a place where you get

money back. fixed income investment. give the government 1,000, 5'10", three years, 30 years, you get 1000 back. that's what we're talking about here, plus interest obviously. that is what the yield measures that interest rate. that is essentially what we're talking here. it wouldn't be so bad, david, i will complicate this more if the yield curve was flattening because the fed is raising rates which it is doing on shortened. what does that mean? the fed is raising rates because the economy is overheating, it is strong. this is more worrisome thing. that is why you see massive, one reason why you see massive selling of stocks. the other reason, there is lots of stuff here. there is a trade policy investors have no idea where president trump goes on trade policy one minute we have a deal, the next minute we don't. they expect the worse and keep getting hammered by tariffs from china. as bad as china are as an actor if they hammer us and we hammer

them there will be economic price to pay. david: charlie, these supply chains all over the world, supply chains for goods are inabouting to break up. >> that is what the markets are saying. david: it is not just the fear of a trade war. it is what is already happening as a result of some of these tariffs. >> that is a great point. we already have tariffs. he, ming president, peter navarro, more hawkish trade crew are threatening more. david: we need a deal. >> still what we have now is not so great. one other thing, david, stimulus people believe is running out. i'm giving all the bad news. for all i know it will be be rosy in three months. a lot of people think the stimulus is running out. put all the factors together. one more factor, hedge fund liquidations. this is not ltcm, they got on wrong side after trade, they are not making money as you put in passive fund.

investors yanking their money out. guess what hedge funds are doing, they have to liquidate. this is what is going on. this is a cluster, you know what. i won't say the word. david: i'm glad. >> i have not presence of mind, david, not to use that very nasty word. and it is really nasty and i'll tell you, the triggering thing i think of all this was, was is trade policy. i don't think the president helped by calling himself tariff man. david: not a couple days ago. >> not if tariff man will wave the wand and buy some stocks. david: sometimes the darkest hour is before the dawn. >> you're right. david: if we get a trade deal things will to up again. >> you're absolutely right. david: i want to cover something else you're covering carefully. the justice department is book in court fighting one of the biggest mergers ever between at&t and time warner. how is that going? >> it is an appeal. very arcane stuff going on in

the courtroom. i will not go through all that. you have to look at this way. judge leon and federal courts says the deal should go through. it was unbelievable. david: he used incredibly -- >> the government's argument this is monopoly raise prices was fool hardy. the government said, we don't care. we know judge leon didn't like us and our arguments from the beginning. we'll roll the dice in the d.c. court of appeals. guess why? because the d.c. court of appeals is packed with obama and clinton judges, not just, not just, no trump guys lately. some gw but its packed, packed with these more liberal judges that are more open to a stance that monopoly, media monopolies are not good. they have two democrats, obama and clinton and one gw appointee. david: sorry to push you, but we're running out of time, i want to get your thoughts.

do you think the government has a case against the merger? >> i think they have a good case, believe it or not. i read everything. there is no doubt comcast is going to use nbcu to squeeze higher prices out of consumers. there is no doubt that at&t is going to use time warner to squeeze higher prices out of rival cable distributors. they're going to do it. it is already happening. it is hard to like measure it. there is no doubt. there is no reason they would do the deal unless to raise prices. so on its face, now whether that is anti-competitive, i don't know. david: do you think judge leon was wrong? he clearly slammed the government's case. >> judge leon basically said the government is, because there is not a lot of evidence on these vertical mergers, exactly how much they raise. it is very hard to quantify how much, comcast, for example, a mirror image of at&t-time warner how much they're costing consumers but they are. all you have to do is talk to any rival cable distributor and they will tell you that prices,

that is very, if you want, if you want nbc uconn tent, you have to pay up for it, more than if you didn't and comcast didn't own nbcu. the question is that antitrust? is that fall afoul of the antitrust laws? is that stifling innovation? you can make a case it is. guess what? rise of internet and cutting the cord essentially happened more when you don't have these big media monopolies. david: i don't know any 25-year-old including my daughter who has cable service right now. they have all cuthe cord. >> i know. david: charlie, great stuff. thank you for being here. appreciate it. oil recovering slightly but still down as opec says it doesn't have the final numbers for an output cut. more on that coming up. money rt into the harbor. i'm gonna regret that. with liberty mutual new car replacement, we'll replace the full value of your car.

♪ liberty. liberty. liberty. liberty. ♪

david: when we started an hour ago every single dow jones stock was in the red. as you can see now there are two greens there, intel and ibm are both in the green. the market was down over 700 points. it is now down 500. it was in 4 hundreds moments ago. gerri willis at the nyse. looks like they're trying to make a comeback, gerri. >> we had a couple attempts at a comeback today and they failed. there is lot of worry on the floor of the new york stock exchange. people are telling me folks are seeing some panic lear. worries about everything we talked about did, china, trade deal, interest rates, you name it, all the news seems negative. that is what one of the traders told me. the good news now, you have to consider this good news, the dow only down 497 points, the nasdaq

down 51, the s&p 500 down 43. i want to talk a little bit about energy and the energy sector for a minute because it is confounding people today. the energy administration expected to say crude stockpiles fell by over a million barrels? still oil prices are falling today. meanwhile opec meeting saying they will cut production but not by how much. and folks out there, experts in the industry worry they will not cut enough. they want to see cuts of 500,000 barrels a day day to 1.5 million barrels a day. they're worried they're not going to get it. it was 50 earlier today. as a result you're seeing stocks in the sector sell off. exxon, big integrated majors, exxon, schlumberger, all the stocks falling lower. as i send it back to you, quickly, david, one of the things people are starting to talk about, what if we got

stronger than expected jobs report tomorrow? what would that mean for the fed? could that mean more bad news in a way? we'll be watching that as well? david: yeah. they will be looking for that sweet spot between good but not too good jobs news. >> right. david: gerri, great job thank you very much. could the oil deal the opec folks trying to figure out in vienna still fall apart? president and ceo of u.s. chamber of commerce global energy institute, car ren hardiman. we love to have you on because you know more about this than anybody. they rarely come to any solid deal at all particularly recently, certain members have been dropping out. saudis crown prince, remember at that meeting in argentina saudi's crown prince gave a high-five to vladmir putin that worry ad lot of people, they thought, uh-oh there is special deal between russia and saudi arabia but i think

saudi arabia is more interested in its relationship with us than russia. that may cause them to balk getting the price back up, no? >> yeah. this right now this market is a head scratcher, right? no market likes uncertainty. important to remember what is not happening. tensions with iran, middle east, tensions with russia the oil price should be much higher say for production in the united states. so we have some leverage over this relationship with saudi arabia too because we're producing more oil than any other country in the world, more oil than iran, almost as much as iraq. that is really good news for the consumer. david: that is wonderful news, terrific news. of course the president started out his presidency that is one of the strategies to get the economy moving again, at $51 a barrel, i know a lot of people in the fracking business say we can't make that amount of money. i wonder if getting so low of

the price of oil because u.s. production and other things, maybe some u.s. frackers will be put out of business or at least close some wells? >> well the good news about this, oil dipped to $30 several years ago. it got really efficient. they can make money at this price? would they like to see it hire? of course they would. that would open up more investment, more production, more infrastructure, more jobs. we'll not shutting things in, but certainly good for the consumer if oil goes to $60, $70, we will be somewhat protected. david: what is break even point particularly for frackers? >> depends if you're in montana orbach ken or permian it is different. some are 40, 30, offshore it depends where you are on the cycle. it is all over the map. the good news, we're producing more oil, more efficiently at

cheaper cost. it is good for the economy and good for the oil market, right? you should see wild things. we're a steadily, reliable, big producer right now and that is a hedge in the global economy. david: we were talking about trade, that is one of the things that triggered the down market, concerns about china and everything. oil and bass -- gas play a big part in world trade as we get ther to liquify natural gas and sent i had overseas to places like europe and china. how much is that disrupted by ill will in the trade front? >> the president talks a lot about reducing our trade deficit and the largest contributor to reducing that is distributor of natural gas and oil. we're better off, healthier because of reducing those amount of imports around the world, including from people in places that don't like us so much. the other thing about trade, the energy business, how they intersect is the tariffs.

tariffs on aluminum and steel, which is needed for all the pipeline infrastructure we need, to move this stuff around our country and overseas, we need to get rid of those, so we can build more infrastructure, put those people to work building pipelines. david: by the way, two things on the trade front, one, did we talk germany out of a deal with russia on gas? and number two, is there any chance china might help by importing more of our gas? i know they have been keeping some oil out with tariffs but might we get a deal china on gas? >> china needs a lot of natural gas going forward. we're a natural supplier for that market. they don't want to rely as much on russia. we hope to produce and export more to china. the german-russian relationship is very complicated. we believe it is better off germany to diversify. we'll see if they rely heavily on russia rather than our democratic molecules here in the united states. david: karen, great to see you. thanks so much for explaining

all of this to us. >> thank you, david. david: the dow is off the low but still down 475 points right now as uncertainty remains over china trade. so are hopes of a trade deal gone or maybe just in a pause? i'm ray and i quit smoking with chantix. in the movies, a lot of times, i tend to play the tough guy. but i wasn't tough enough to quit on my own. not until i tried chantix. chantix, along with support, helps you quit smoking. it reduced my urge to smoke to the point that i could stop. when you try to quit smoking, with or without chantix, you may have nicotine withdrawal symptoms. some people had changes in behavior or thinking, aggression, hostility, agitation, depressed mood,

or suicidal thoughts or actions with chantix. serious side effects may include seizures, new or worse heart or blood vessel problems, sleepwalking or allergic and skin reactions which can be life-threatening. stop chantix and get help right away if you have any of these. tell your healthcare provider if you've had depression or other mental health problems. decrease alcohol use while taking chantix. use caution when driving or operating machinery. the most common side effect is nausea. my favorite role so far? being a non-smoker. no question about it. talk to your doctor about chantix. pai'm open to that.medicare? no question about it. lower premiums? extra benefits? it's open enrollment. time to open the laptop... ...and compare medicare health plans. why? because plans change, so can your health needs. so, be open-minded. look at everything - like prescription drug plans... oh, and medicare advantage plans from private insurers. use the tools at medicare.gov or call 1-800-medicare. open to something better? start today. open enrollment ends december 7th.

david: trade uncertainty is certainly one of the things weighing o marts tod. to former mississippi republican governor haley barbour, who i got to tell you i was huge admirer what you had to say about george herbert walker bush yesterday and the day before. terrific testament to his greatness you enunciated more clearly. one of the things he was very interested in was trade. even though he wasn't the absolute brainchild of nafta, that really came from reagan himself, still, george bush. herbert walker bush had so much

background with the oil business with zapata oil and his friends in mexico, he really boosted the idea of trade in the western hemisphere. do you think george h walker bush realized over time it needed to be changed somewhat from its origins? >> i would think so. coming out of the reagan white house where i'm a political director. i'm a free trader. president reagan was promoting nafta when i was there. president bush promoted nafta, pretty well got the deal put together. then president clinton actually introduced it to congress. i will never forget, i was chairman of the republican national committee, the opposition party, i came out in favor of nafta. people said, why are you doing that, democrat president? look, i supported it when ronald reagan was for it. i supported it when george bush was for it. i'm for it. i think most people realized it has been a good thing for the united states but there are no

treaties or agreements that are this complicateed that don't need to be looked at every few years. that was 25 years ago. david: longer ago than people realize. things have changed worldwide too. we had a much more of an optimistic feeling about trade. we thought that free trade with china would turn it into a democracy. instead we had more trade with china. it has become more authoritarian. so things don't always turn out way you think they will. >> in the case in china particularly, they start off in one direction. then something happens that turns it, turns it back. you know in china, deng xiaoping moved towards economic freedom but political freedom. this president of china is very much for the communist party ruling and making the decisions and we've all seen since they became part of wto the chinese cheat.

i mean that's the real issue here. david: absolutely. they cheat and steal our intellectual property and as we saw with huawei we're not going to take it anymore. in the arrest of this woman who was daughter of a founder ever the company, heir apparent to the company, looks like we are really playing hardball. what do you think, looking at our side of things, what do you think of the way this administration is playing hardball with china on trade? >> look it would have been a lot easier, from the beginning, right after they became part of the wto, if we had called their hand then on taking intellectual property and unlevel playing field and every sort of way but we didn't for two administrations, 16 years. so the trump administration is kind of having to start this when the experts are telling us in 2025, just 7 years from now, china's economy will be as big

as ours. i think he had the right kind of political courage to realize we have to do something about it. if we're going to do something about it, we can't continue to wait but certainly harder after they have become accustomed to being allowed to cheat and not go about it same rules as anybody else. this will be hard. there is risk. there is no doubt about that. but, if not now, when? david: you have got a good gut what happens politically speaking. do you think eventually we knock out a deal with them? >> yes. because eventually it is in both countries best interests. both countries are better off politically, economically, in security, if we have good economic relationships. the only way you can have good economic relationship with anybody, including the chinese, is they got to keep their word. david: i got to ask about 2020 because the best political, the

best instincts you have are on things political. there is a billionaire running for president in 2020. i'm not talking about donald trump. it looks like michael bloomberg is about to throw his hat in the ring. what do you think of a bloomberg run for the presidency? >> well, first of all does he run as a independent or run as a democrat? had he run as an independent in 2016, he would have probably gotten a whole lot of votes because there were a lot of voters, very loud about it who didn't want trump or clinton. and, i think if you remember, david, in the exit polling, about 20% of people who actually had gone and voted said they really didn't like either one of them. trump won those by very large margin. would those people have voted for michael bloomberg? i don't know, but i think 2020 is going to be quite different. it will be, instead of the republicans having this huge field, is it will be the democrats having this huge

field. and instead of republicans trying to be moderately conservative like in '16, these democrats will be hard, hard left. democratic party has had a huge lurch to the left and that will be very evidentrod: appears thel going in that direction, mike bloomberg, notwithstanding. former rnc chairman for the united states, knows well about all these matters political. always a pleasure to see you, haley barbour, thank you very much, governor. >> thank you, david. david: ceo's are at the white house to talk about tech. what can we expect to come out of a dynamic meeting as it is being described? more after this. from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. which i used to offer health insurance to my employees. what's in your wallet?

♪ ♪ this holiday season, families near you need your help. visit redcross.org now to donate. as one of the nation's largest investors in infrastructure, we don't just help power the american dream, we're part of it. this is our era. this is america's energy era. nextera energy.

let's talk about thisd thwhen we meet next week.era. edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours. i am a techie dad.n. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome.

david: tech company leaders meeting with officials at white house. blake burman with the latest what is going on there. blake. reporter: who's who with the tech world, this meeting has 45 minutes or so to go here. the leaders, executives for example, google, oracle, microsoft, ibm, qualcomm, they're here at the white house right now. university presidents of carnegie mellon and mit along with henry kissinger. sitting down with top members of the trump administration, ivanka

trump, jared kushner, larry kudlow to talk about high-tech issues. a.i., art firm intelligence, quantum computing, advance manufacturing. president trump may drop in on the meeting, maybe not so. this will be one of a series of meetings these tech leaders will engage in with the white house down the line. interesting enough on the list, involved with the meeting is robert lighthizer, president's top trade representative. senior officials telling us one of the reasons why lighthizer is here at the meeting, talking about top tech leaders, one of the big worries they have is the theft of intellectual property. that as we know is at the very top of the list for the trump administration dealing with china right now as it relates to the ongoing trade negotiations. the meeting started at noon. set to go to 1:30. david: i have to say, henry

kissinger is 95 years old. the guy doesn't stop. 95 and he is at the meeting. >> he is at the white house, not frequently, but here often, still keeping himself very involved. david: good for him. blake, thank you very much. new signs huawei cfo's arrest is adding pressure to u.s.-china ties the country's media called the arrest despicable hooliganism, as chinese officials demand her release. we have the coming collapse of china author, gordon chang. i've been saying this all hour. this woman was arrested december 1st. the chinese knew about the arrest a week ago. they used until now to use harsh language. meanwhile they're throwing olive branches at us for optimism about a trade deal. is that all for show, the talk about hooliganism? >> i think what is going on the

xi xinping really need as deal. why he was conciliatory on saturday. when he sat down with president trump and the american team in buenos aires. what we're seeing right now, xi xinping is reacting to obviously a lot of anger in chinese society about this. he has unpopular decision. the trade war needs to end in and they are boxed in because of huawei. david: they want a deal, but they don't like their citizens being arrested because of the united states. >> the chinese believe they're above the law. this is just an insult to chinese dignity we allowed this mentality to continue. we didn't enforce standards. why should we be allowed to detain a senior chinese

executive who by the way is chinese royalty. david: this is the not just as you say, she is royalty. this is not just any company, this company sells more smart phones than apple does they need this company, they will not throw away huawei for the sake of a trade deal, right? >> huawei is the made in 2025 said 10 sectors china to dominate. in january of this year they added a 11th sector. that is 5g. 5g is huawei. this is absolutely at the core of china's plans to dominate the world. this is essential. they will not let huawei go. david: will they let miss meng go, go through the court process in the united states, however it turns out, whether she is guilty or not guilty or demand her return to china? >> they will demand the return. they will work on the canadians. they will work on us. david: now they are part of the trade deal, no trade deal unless we get this woman back?

>> perhaps part of it but the other part they may start detaining americans and canadians in china. david: oh, boy. >> they take hostages all the time. david: that would clearly end, at least for long term suspend negotiations on trade, right? >> three american hostages already in china. two children and a mother and they're being detained because the husband in the family is accused of fraud. this is completely unacceptable. we're allowing it to continue. we complain about it. we don't do anything effective about americans being tape. david: we're getting news now that john bolton, the security arm of the white house, if you will, knew about the arrest before it happened. i suspect that the chinese knew about it as well. and i asked other people about this. do you think the timing was coincidental? this was more times committed 10 years ago, when when huawei had a holding company that dealt

with iran. they could have arrested her anytime. why did they choose the day trump met with xi. they knew it was day to grab her because she was in vancouver subject to canadian authority. this is related to zte, the other manufacturer. it violated settlement agreement with the u.s. for a second time. basically, i'm guessing, no one talks to me, i'm guessing that people in washington are saying enough is enough. we have to do something. the justice department had the investigation of huawei, goes back beginning of year, reported back in the "wall street journal" in late april. they could have done this a year ago but they had to. david: specifically on huawei, the woman who was arrested the daughter of the founder, he was in the military. he was a military -- >> a colonel. david: a colonel in the military he claims the company is private. do you believe it's a private company or run by the chinese government? >> both. it is private but -- david: how can you be both?

>> it is state dominated. in other words the party and then clearly all of the tech people in the ministries, they determine what goes on in huawei. so, it is state dominated but it is privately-owned. that is true for zte as well. david: gordon, great to see you. gordon chang, thank you very much. it is huawei. the reason market was down but not down as much as it was earlier, down 399 points. still a big loss but not as bad as 750 it was before. it was the arrest of this woman, huawei's cfo that caused market to go down. what the arrest could mean for trade talks. more on that coming next.

i'm ..

at fidelity, our online u.s. equity trades are just $4.95.

so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. david: welcome back to "cavuto: coast-to-coast" yet another massive selloff as the dow and s&p array solitaire 2018 gains. although the dow was trying to come back a bit. payroll growth slowing in november ahead of tomorrow's big jobs report and trade tensions continuing to weigh on investors uncertainty as tariffs continue to drag on. market watchers ben phillips, dennis gartman and wispy beard today is the perfect storm storm day, isn't it? >> out of this blow we have the rest of the huawei executive which is very peculiar. i can imagine are not going to learn a lot more about the story because the markets have been ricin following amid g20 trade

deal. this clearly scotches all the good talk we've been hearing from china and also from our administration about the agreement that seem to have been put together at the summit. i can't help but wonder someone is trying to sabotage the trade deal in time this arrest for that because this has gone on a long time. david: we now know john bolton knew about the rest before it happened in the chinese have information could not sedate me when she was arrested back on saturday. that didn't sell us -- since then they've been saying how great things were between the u.s. and china appeared to be my very strange story. more will be found out. david: beyond this particular story. we have the effect of maybe not a trade or full-blown but at least a pretty bad skirmish in the effects are supply chains around the world are beginning to slow down. it doesn't take much to break up

supply chains but once they are broken up across a lot of money and reestablish. the president talks about 7 billion in taxes per in the terrorist but it costs much more than now for companies and corporations to reestablish the surprise chains. >> , go, don't expect seven to $10 million in turf revenues. it's absolutely patently absurd. the damage upon the american economy is serious. we are just beginning to see the prospects of it. it's going to get worse and if the warrant for the fact that his base is so supportive of these terror circumstances, the fact sheet called himself mr. tariffs over the weekend is very sad. i voted for the gentleman but i find myself embarrassed. my wife is a strong trump supporter and we have arguments every night over the trade amounts to come out. i think it is embarrassing. david: this administration

doesn't speak with just one voice. you have a lot of people the administration. free traders with fair traders. some combination of the two and still with all this trouble at huawei and everything else, the possibility of the resolution. >> i think worth a long way away. a wide divide between china and u.s. position. they want to give uncertain experts and things like that, and the u.s. wants a fundamental change in how china approaches the global economy. you're breaking the rules and you're cheating americans in the global economy. so it's a very wide divide right now. we saw coming out of the g20 there was in a joint communication or joint press release. that was all signs they didn't get anything done here and there still -- >> what's worrying me about what happened with china's cordless talking about is there maybe a

divide in china to somebody trying to sabotage the trade talks. nobody likes it when one of their citizens is arrested in another country so there is some genuine frustration and anger on the part of chinese that president xi has to react to so that might stop him from doing the trade deal he wants to do. >> i actually think he does want to make progress on this and for the past year, actually two years beginning with this coming-out party at the world economic forum and office in january 2017, he's been carefully constructing a dialog or presentation as a great champion of free trade and globalism. he set himself up on any number of public speeches in the last 18 months saying i really want to open up china appeared so i feel like he's actually set the ground for making serious confessions and get they won't be -- she's never going to come out and say we've been dealing

intellectual property that they can say we do not any longer. we do not require that you hand over your technology via that route. i think there is actually and i think we've seen that in the last 24 hours a lot of very positive signals in terms of things that they said. but don't forget, too, in october of a lower tariffs on 1500 items. they allowed american express and for the first time ever an american company doing credit card business in china appeared a series of steps that he was very construct two. david: suspended for 90 days. there is a possibility. you may not like the presidents tweet stands, but he did have one i liked which says their tariffs, the chinese car tariffs were coming down. we haven't seen the specifics of that. there are 40% now if they came

down and cut in half that would save car companies billions. >> let us hope they do in fact do exactly that. they're expected to happen the next 60 weeks? the next 90 days? there's no question xi has gone out of his way to take an amenable position to say he's looking for win-win circumstances. we need to understand. we seem to always pull her hand away. david: defense to steal what we have and that has to be addressed. it's been avoided by administration after administration, country after country. in fact, the world is looking to the united states to set a standard here, don't you? >> i think that's right. china's given think they were already going to give up so they haven't given us new material things in our view. what were watching us things on the fringe.

the ip protection is a huge issue for tech companies. a core part of how they want they'll protect supply chain in china is by stealing american i.t. david: by the way, no coincidence you have the biggest tech leaders in america in the white house today visiting with the advisors and my tie is there is at the meeting. not only henry kissinger, that the fact the u.s. trade rep will be in the meeting indicates part of a trade deal. >> that's what it will have to come down to. moving up the value chain and technology is now sort of the golden apple. that is why all of a sudden america's gotten serious about protect and peered if they learn how to make a truck. it's another thing if they begin to make progress on 5g for example talking earlier about huawei. that is serious in terms of our

future, our technology companies, which never has been in doubt before now maybe it is. david: speaking of her immediate future tumor we get the jobs report. what do you expect and how do you think the crazy market is going to react? >> we will see fewer jobs created in tomorrow's report than last month. probably under 150 if i'm not mistaken. which is not that bad but normal circumstances. the market has been prepared for 200 i don't think we'll get there. stock prices have to be sold into. >> don't you think the higher in the past couple months has been borrowing for now. one of the stories we've talked about is the pre-hiring for the holiday season for example. companies like target hiring way ahead of their normal schedule. it seems to me expect to them that little bit, 180,000 jobs doesn't seem a shocking to me.

>> what's the difference to be quite honest between 150 and 180? >> 30. >> very good. i have to go back and recheck my mouse. in the great scheme of things come at the difference is inconsequential in the randomness of the number have only been out this 40 years am relatively new to it so the randomness of the monthly numbers is astonishing. david: what happens at the other side we get over 200,000 jobs, is that a shock because the possibility the fed will raise rates? >> people look at that in discounted the longest period between thanksgiving and and christmas pickle on this holiday season we've had to accommodate for that. consumer confidence is a lot better couple months ago when they started making hiring decisions. read a point where the mip say we got a little off sides. i'd be skeptical of the market rallied. david: i don't want to bury the lead, but this is apparently the

best holiday season we've ever had in united states history in terms of retail sales. that's not for nothing. >> isn't for nothing. consumer sentiment been better several months ago is actually less good. we are still looking at elevated consumer sentiment. the economy is all the bankers by the way were seen as the global financial services foreign yesterday is in great shape. i almost worry we are looking at a self-fulfilling prophecy now for the markets leading sentiment, leading business activity by tanking on various indicators which frankly are not that dire. >> doesn't it take the best news and turnover long before the news becomes worse? >> what we're looking as indicators for example of flattening of the yield curve went briefly inverted. it generally doesn't -- a peaking of s&p earnings growth generally means a couple years

before every session. remember what that was out there i don't know what there was program trading but everyone saying this is such a dire signal. >> i think i feel a little better. dennis has a good sign to tell him the story as well. thank you. signals coming out of the opec amid reports that there is a tentative deal to cut production but they haven't decided by how much. they are seeking over wall street today but can the bulls battled back? it looked like they were going to a moment ago. we debate at 5:00 p.m. eastern. we're going to have a great panel. "bulls & bears" at 5:00 p.m. eastern right here. we'll be right back. ♪ there's no place like home ♪

argh! i'm trying... ♪ yippiekiyay. ♪ mom. ♪

david: outcome of steel stocks lower again today. it are tariffs helping or hurting u.s. steel makers. "after the bell" cohost connell mcshane is talking to steel makers in pennsylvania. keeping it real with steel. >> keeping it real with steel, very good, david. interesting day in the markets to be here and talk about this industry, which is being helped by the president's trade policies had more profitable companies like u.s. steel.

revenue is up hiring in the future. there were questions about the future, though. this thing has been around since the days of andrew carnegie. he's been showing us around all day long. what are we looking at around us. this is cool for people who don't know steel. >> welcome to the steel shot. i consist of taking our iron from our furnace says to remove impurities and now we are skimming off those impurities so we have a pure charge into her steer a vessel. david: what a something like this and that being? >> good question. a lot of our customers washers, drivers, stove tops comerford. this steals will be transformed in our vessel.

what's really exciting about the process, the men and women here in the operations have made over 2 million tons this year without a single osha recordable injuries. people are staying safe every day. that's her cold value. >> thanks a lot. we do appreciate it. i just want to point out a couple things. the market conditions you were talking about coming in. if you look at u.s. steel, they're making more money. profit is up, revenue up 15% in the third order. the stock price has not gone up as much as the prophets. even since the tariffs went into effect in march, the stock prices actually gone down. one of the concerns from investors who put -- what if the president cut the deal is tariffs go away. in a company like u.s. steel is backward started. they talk a bit administration officials and their confidence the current policy will be the policy. trying to get bulls and bears

lead in which is always our goal. david: if we come in with good ratings will do well. rising tide raises all. by the way, and i love factories. something about the smell and the people and the sounds of factories i've always loved. i envy your position today. thank you very much. david: continuing amid reports the deal was made to cut production. founder and editor, stephen shore. it's really all about the saudi's. right now, they want desperately to please the united states with all the stuff on the khashoggi death. they are looking up recess more than anybody else. am i wrong? >> i don't think you're necessarily wrong, but taxpayers said north dakota at this point. some of these are being very vague at this point.

we've seen this movie before. four years ago, 2014 oil prices back then had dropped $25 a barrel from 100 to $75 a barrel. everyone wondered what the saudis are going to do. they punted at the december december 2014 -- november 2014 meeting to $25 to $50 a barrel and eventually we had the economic malaise in dropped $25 a barrel. kind of the same scenario we just have to ratchet down the numbers. we started a $75.2 months ago that everybody, best and brightest is telling us oil would go to $100 a barrel. the market did move $25 for wall street got it wrong. so here we are $50. opec is being very vague in saying what they think it is going to be. they are sending a message to the rainy and into the united

states producer that they want otherwise it would appear that saudi's are daring the market to move lower at this point. it's a very dangerous game because we have to keep in mind with u.s. producers we have a lot of production hedged at around $70 a barrel. that we can withstand slower oil prices. we are at a make or break your point. demand is picking up very strong. the strongest we've ever seen this time of year. so if we are going to see a better occur here. >> what is the sweet spot. fifty dollars in the minds of a lot of people in the oil business is too low. but when the fed was talking about to high inflation, a lot of that was coming at $83 a barrel. what is the sweet spot between my spread? >> that's an excellent point. the fed was over talking $83

certainly not too expensive. the sweet spot is more in the 65 to $75 range. what it means to the consumer and producer and so forth everyone is happy with oil, gasoline and $65 to $75 range. david: my happiness as a consumer always grows when gasoline prices come down. if it's $75 a barrel, what does that translate eventually down to in terms of how much you pay at the pump? >> of the two practice something before you answer that, david. let's be careful about pushing for lower oil prices are gasoline prices. that's a symptom of something bigger and broader. when held oil prices and so forth, that is a bad sign for the economy as a whole. let's not wish oil or gasoline

prices. david: i understand exactly what you're saying about the demand side of that. ask any consumer in the united states if they're happy with gas prices and there's no bottom to what will make them happy. >> up to you by. we were at rock bottom when oil prices were 25, $30 a barrel for years ago. as a consumer want to go back to where the economy was three years ago. so i appreciate that. it sounds great. 65, $75 will get you in the peak driving season $3.30 more then able that the consumer can handle. >> the consumer like something under three bucks. good to see you, my friend. thank you very much. lieutenant colonel allen west on how the saudis and russians play into all of this. colonel, great to see you first of all. happy holidays to you.

there was a high five last week in argentina between vladimir putin and the saudi crown prince high-fiving when they met each other. it bothered a lot of people and made a lot of people wonder whether they had some secret deal on the price of oil. am i overblowing that or what? >> good to be with you and merry christmas. go army, beat navy. >> that's a dangerous thing. >> this is geopolitical stress. one of the points you brought up was a bit of the angst against the saudi prince bin salman in reference to khashoggi and maybe vladimir putin is speaking to his relation and we know he's looking to strengthen his hand in the middle east anyways. for vladimir putin and natural gas is key to economic sustainability, but also key for his militaristic expansionism.

so we have to be very careful and we need to let the saudi smell that we are your best ally and we are very strong energy resource producing and exporting nation. one of the things we need to seek to do is undermine russia with exporting our resources as we talked about so they don't have to be dependent. that is why president trump brought up the issue of the pipeline between germany and russia. david: by the way, russia is always tries to stir up trouble. food never since he was a kgb agent, that comes from the kgb manual. do whatever you can to stir up trouble within the united states. it might simply have been now. >> without a doubt he thrives on chaos and creating not because here we are still talking about high-fiving with mohammed bin salman. one of the most important things we can do is i live in dallas

texas now. the sweet spot is $65 to $75 a barrel. how do we keep the consumer costs for energy low and how do we export back to those countries dependent upon this is very key. >> the china issue led to the market going down so much today. let's talk about them militarily. they have a huge army. they equipped the army with technologically sophisticated weapons, a lot of which technology has been stolen from us in the rest of the world, but they've applied that directly to the military in ways that even we haven't. how big of a threat is china and that is the biggest threat even more so than russia right now? >> without a doubt china is her greatest military adversary right now. when you look at their newest fighter aircraft is very much

still resembles the a 35. china right now is the testing their first domestically built aircraft carrier and may have begun construction on the second domestically built aircraft carrier and has incredible technological advances and i guess you know where those came from. when you look at the china strategy, the chinese pakistan quarter, all of these facilities china is building, they are building those also for an expanded navy and they will have to say the meantime which a nation expand his powers not very powerful army, through navy. >> your navy after all. i knew it. both the army and the navy and the marines working together is what we want. colonel west, great to see you. thank you for joining us. the market is improved a little bit but wall street fear gauge has hit its highest level since

october. that is called the cix at 18.5%. sometimes at the forward indicator so even though the market is better than it was down over 700 points, that is at a very disturbing mumble. we are keeping a close eye on that in the market stay with us will be right back. to support the heavier me. crash! and your cut-rate insurance might not pay for this. so get allstate, you could save money and be better protected from mayhem like me. mayhem is everywhere. so get an allstate agent. are you in good hands?

...that's why i've got the power of 1-2-3 medicines with trelegy. the only fda-approved 3-in-1 copd treatment. ♪ trelegy. the power of 1-2-3 ♪ trelegy 1-2-3 trelegy with trelegy and the power of 1-2-3, i'm breathing better. trelegy works 3 ways to... ...open airways,... ...keep them open... ...and reduce inflammation... ...for 24 hours of better breathing. trelegy won't replace a rescue inhaler for sudden breathing problems. trelegy is not for asthma. tell your doctor if you have a heart condition or high blood pressure before taking it. do not take trelegy more than prescribed. trelegy may increase your risk of thrush, pneumonia, and osteoporosis. call your doctor if worsened breathing, chest pain, mouth or tongue swelling,.. ...problems urinating, vision changes, or eye pain occur. think your copd medicine is doing enough? maybe you should think again. ask your doctor about once-daily trelegy and the power of 1-2-3. ♪ trelegy 1-2-3

save at trelegy.com.

drain to the arrest of huawei cfo really rattling market today. the company overtook apple this year to become the second largest smartphone seller everywhere. to market watch tech editor jeremy. first of all, do you think huawei is guilty of all the united states says it is? >> everything the united they think they've done. they definitely have shady business practices. we see in the u.s. corporate cte, major rival.

a lot of the things that come out of china say they know they were skirting laws and trying to get around some of these things. the question is, is that just a product of china, being a chinese businessman or is huawei especially crooked. that's what we're going to see now. that is kind of what the u.s. wants to bring out in the open by making this arrest. >> jan doing things crooked and the arrest concerns business that we allege they were doing with iran and that she was directly involved to not some way. we've sold our allies beware. this is a company that is somehow encrypted software in ways that they can actually spy on us if we buy their phones. do you think that charge by us is exaggerated just because they're such a big threat to our businesses? >> it's hard to prove but we've seen our allies deny traina

line -- huawei. more of the concern than smartphones as the telecommunications equipment that huawei cells. that kind of network traffic and visibility is really scary for what could be done with it. that is the bigger concern. the smartphones which you can even buy in the u.s. through carriers or anything else are not really available here. smartphones are more for the asian and european markets. david: i remember before the 5g stuff was talked about became visible, we had concerns from the security chief said the united states. i think they were about a dozen of them, homeland security, headed the cia, all of them were there. every single one was asked by the congressman if they would buy a huawei phone and they all said absolutely not because it's a security threat. was that exaggerated or do you think they're onto something?

you wouldn't touch a piece of huawei equipment. david: they were just talking about themselves. >> right, yeah. the smartphones aren't available. so it's kind of a moot question at this point. i don't think anyone doing anything sensitive would want to touch one of those phones. even though you can maybe get the phones now in the u.s., data partnership with ibm not long ago. i think in this arrest in her attitude towards huawei would prevent any partnership like that existing in the future. >> you never know. ptu still has some ties as well. this is definitely a big signal to all of u.s. tax. you need to stop working with this company, which has been a very weird thing to see when trump blocked broadband from qualcomm.

it was a big thing brought up in a decision and that should have been a clue right there at the companies need to stop working with huawei because they are really looking hard you train to do you think it has to support in do think it's a private company for something totally controlled by the government of china? >> you're looking at something right there in the middle. the founder is a former army engineer. he is very close to the powers that be in china. that is worrisome. you see all the tech leaders meeting with president trump right now including the qualcomm ceo beaten by a then asian company. you can't take all of that, but there are definitely ties they are that are worrisome. i don't think it's completely controlled by the chinese government, but where that line is is very hard to see like everything in china. david: china again is a huge

company. we talked about it selling more smartphones than apple does. china is not going to dispense with this company in order to get a trade deal or anything else at the united states. the company will survive. the question is can separate the bad stuff it does from the good stuff it does just making phones? >> i talked to ford exec classmate who spent two years in china and i broke the news to her and the response is huawei is china. we are going after the major, major company in china. this is the equivalent of ge to the u.s. 50 years ago. this is a company really seen as synonymous with that country. i don't think we can take it down. but we can certainly hurt the global nature of huawei business. to grow, to be bigger they have to get to europe and africa and other continents as well.

so if we can impede that, but will hurt huawei but will deftly not put it out of business. david: incredible story. jerry owens, thank you for being here. appreciate it. the gmc geo -- gmc el mary barra is back on capitol hill were talks with lawmakers stand. coming up right after this. pain and stiffness redut and helps stop the progression of joint damage. for people with moderate to severe psoriasis, 90% saw significant improvement. taltz even gives you a chance at completely clear skin.

don't use if you're allergic to taltz. before starting, you should be checked for tuberculosis. taltz may increase risk of infections and lower your ability to fight them. tell your doctor if you have an infection, symptoms, or received a vaccine or plan to. inflammatory bowel disease can happen with taltz, including worsening of symptoms. serious allergic reactions can occur. for all the things that move you. ask your doctor about taltz.

david: gm ceo is expected on the hill in a couple minutes from now. edward moran to lucidly spoke with mary barra. he has the very latest on where things stand. she's going to meet with the michigan delegation. they want to know why she wants to make these restructuring

taxpayer. why they need to cut 15,000 jobs and close for plants in the united states. the answer has been people just frankly stop buying cars made out of those plans. also pointed to the rest of the company workers as well as the people who are retired on pensions from gm. expanding a plan in mexico so why aren't those jobs being brought here. again, mary barra defending her company. >> definitely opportunity for many to work in our factories around the country that are growing and that is our focus right now. it's a very difficult time in difficult announcement to make and so are focused on making sure they understand the situation. they know the option is open to them and that's where focus is right now. david: of the 15,000 workers, the hourly workers can move to other plants within in order to

keep a job with them. this is not over for gm. they asked a thousand managers to take a buyout last year. not all of the managers did take the buyout and we understand that the end of january they will make other layoffs at the director and vice president level. we just don't know how many. it is their plan to shrink the executive force by 25%. it's not over for gm. back to you, david. david: christmas time. of all the times of the righteous don't know why she couldn't wait another month. edward, thank you very much. apple site is continuing. shares falling to buy 5% after, and i'm quoting here, the weakest purchase and 10 for the iphone in five years. meanwhile, three of the dow 30 component are now in the green. the market is trying to pull back. stay with us. we will be right back. place, the xfinity xfi gateway.

and it's strengthened by xfi pods, which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods.

simple. easy. awesome. click or visit a retail store today.

david: i'm going to watch out for a second. yield curve sparking fears. market watcher mike murphy. i hate using that term. people's eyes glass over when you do. try to guess reno explained it pretty well earlier in the hour.

a sickly he said, you know, you get yields on a long-term bond, 30 year bond in u.k. yields on to your bond, the shorter term bond. when the yields go up, that's okay. but when the yield curve comes down from the top to the bottom, that's a problem because there's less confidence in the future. is he right? >> i would respectfully disagree with that. we were all talking as recently as two months ago about the yield on the tenure getting too high. of over 3% at 3.1. that's going to stop the market rally. now we are back to two-point made another something else people are focusing on is a negative for the market. i don't think it has a major impact. i don't think it's worth 1200 dow points for certain. if the move was negative, why is the move back also negative. i don't think because the yield curve is slightly inverted should have any impact on people at home whether or not they're

going to be investing. >> you think eventually the markets going to snap out of it, that this is a temporary swoon? >> the bigger focus is china. what is happening right now is this is still in my opinion a reaction to the fed. to the side. and to the fed. if one priced and it would be three or four rate hikes in 2019 and i were walking that back a lot. they may do one, they may do none dependent. december rate hike baked and as a now some people telling 60% likelihood we get that. david: let's talk about china then. it'd are dependent tasty situation. it seemed like -- i know the president cemeteries man of him but then he changed his tune when the chinese came in and said it looks like we've got a deal. and then we get news via arrest of this woman happened on saturday almost a week ago so it's been churning in the background. are you concerned this could be

a monkey wrench in the deal? >> i am not really. the trade war in general if it explodes or falls off the track for some reason, that's a negative for the u.s. market. i don't see that coming. this arrest is one part that a lot of algorithmic or program trading is focusing on and that is causing these pics tell us a hundred point drops that earlier today. when all said and done there will be a deal between the u.s. and china. david: and off you if you heard gordon chang. he says one of the problems right now for a deal is the chinese people are demanding that xi pay a tougher. they don't like it. he's getting pressure -- i know he said that, but he still has to worry about his back, right? >> yes. china's economy is having massive pullback over the course of the last 12 months or so. what the people want various

prosperity. people would like to see a trade deal and potential trade war off the table because that is better for their bottom line, for their pocketbook. >> a lot of us were posed in the bailout or the way it was handled they still $11 billion, but bottom line, do you think the u.s. is going to get back in the business of trying to manage a car company the way it did with the obama administration? >> i hope not. free market should be what really drive prices. 2008 was a different scenario so what happened back then as one injured were not in the financial crisis right now so they should be able to run their business the way they want to. >> mike murphy, great to see you. the media painting facebook is a ruthless corporate giant. since when is that a bad thing?

more details coming up. to sign up for new insurance instead? for drivers with accident forgiveness, liberty mutual won't raise their rates because of their first accident. ♪ liberty. liberty. liberty. liberty. ♪ our new, hot, fresh breakfast will get you the readiest. holiday inn express. book now for at least 20% off during our annual sale.

. .

>> we are told, that has not been announced for family. bill barr will be his nominee to be the attorney general of the united states. meanwhile lyft, taking a major step to go public next year, filing confidential paperwork for its initial public offering. lyft and uber both innovative in the ride-sharing industry. looks like lyft may be staying ahead of the rival. expected to top previous estimates of $15 billion. mark zuckerberg and facebook under pressure again. british lawmakers releasing documents showing that the company discussed user data to select companies. to "dow jones newswires" chief editor glen hall. good to see you. let me bring up a headline i saw from a competitor,

"new york times," although they're not really a a competitr you guys, facebook's real mission, quoting the headline, facebook's real mission, making money, crushing competition. what is illegal about that? isn't that what a company, good capitalist company supposed to do? >> i think implication they were doing it with the expense of their customer, with expense of releasing revealing data in ways they may not have allowed or wanted. david: but at the same time, there does seem to be this kind of anti--- i'm not defending facebook or what it's done, seems to be particularly coming from the europeans and the brits, this notion if you're doing things by capitalist rules, there must be something illegal bit. that is, they want to make aspects of free-market capitalism illegal. >> interesting to hear mark zuckerberg and facebook defending themselves, of course we were discussing how to be a profitable company. we discussed a lot of options. we ultimately decided to go with

the model everybody says it is okay now. this is a lot of backward-looking discussion what they were thinking back and forth, a lot of emails, you can read them a lot of different ways. but at the end of the day you see them really struggling how do we profitably engage our business without harming our reputation? david: you know you don't have to read too far in the rule book european union and regulations they have been coming out with, to realize they see illegal competition in places we don't necessarily. it may spill over here. we may adopt some of their rules, that now govern social media companies in particular and other companies, not only social media, but i think that is kind of a trend towards too much government. i don't know what you think about that? >> there's a question about that when we acknowledge and release our data to apps for the purpose of using them, benefit we get from that. they use that data, we've allowed them to, where does the line cross?

different countries make different rules, makes life complicated for technology businesses but in this business emails reveal facebook how to stifle other competitors to prevent them from using their apps or customer data. there is questions whether they crossed some specific line. even the ftc looked whether they crossed those lines. david: sure. i'm wondering if the stricter standard of europeans are governed by will spill over here, what do you think? >> it can spill over in behavior whether it become as law or not, because if facebook and other companies have to spend a lot of money to comply with european regulations they may apply that generally and have to talk to the customers how they defend their data rights. david: gets to me, they're making billions of dollars in the fines they have been administering to u.s. companies so we'll see how it al pans out glenn hall, great to see you. sorry we had to quote "the new york times." i will be at 5:00 p.m. eastern

with "bulls & bears." hope you tune in, 5:00 p.m. earp time monday through friday. speaking of somebody who used to be in the slot near there, now here to follow me, my good buddy charles payne to take you through the next hour. looks like markets are improving a little bit. charles: sometimes the cp effect kicks in early. david: i love it. charles: we have a lot to cover, folks. this is exciting day, believe it or not. i'm charles payne this is "making money." here is what we've got coming up. stocks are lower but the machines are running amok. we'll break down for you how the strong economy may offset all of this, where you the investor might think about investing right now. plus, general motors ceo mary barra back at it for two day on capitol hill. the political challenges she is facing how she might curb it by curbing the plant closings. herman